agenda benton county public utility district no. 1 ... · 7/14/2020 · benton county public...

AGENDA

BENTON COUNTY PUBLIC UTILITY DISTRICT NO. 1 COMMISSION MEETING

Tuesday July 14, 2020 9:00 a.m. 2721 West 10th Ave., Kennewick

The meeting is open to public attendance via telephonic means. The conference call line is: 1-469-998-5874 ID: 170 702 675#

1. Pledge of Allegiance 2. Public Comment 3. 2020 Bond Issue Discussion Info. Only/Jon Meyer/Dick Shober, Piper Sandler & Co./Christine Pihl, RBC Capital Markets 4. Treasurer’s Report 5. APPROVAL OF CONSENT AGENDA (All matters listed within the Consent Agenda have been distributed to each member of the Commission for reading and study, are considered to be routine, and will be enacted by one motion of the Commission with no separate discussion. If separate discussion is desired by any member of the Commission, that item will be removed from the Consent Agenda and placed on the Regular Agenda by request.) a) Minutes of regular commission meeting of June 23, 2020. b) Vouchers dated July 14, 2020. c) Resolution No. 2548, Retired Equipment Surplus. 6. Report from Management 7. BUSINESS AGENDA a) Motion Extending Temporary Changes to the District’s Customer Service Rates and Policies Action Item/Jon Meyer b) Broadband Business Update Info. Only/Chris Folta/Rich Nall, NoaNet c) Benton PUD 2020 Integrated Resource Plan Update Info. Only/Kevin White d) Motion Approving Wind Power and Clean Energy Policy Perspectives Report Action Item/Rick Dunn 7. Other Business 8. Future Planning 9. Meeting Reports 10. Executive Session (To request an accommodation to attend a commission meeting due to a disability, contact [email protected] or call (509) 582-1270, and the District will make every effort to reasonably accommodate identified needs.)

1

Business Agenda

Second Reading

Consent Agenda

Info Only/Possible Action

✓ Info Only

COMMISSION MEETING AGENDA ITEM

Subject: 2020 Bond Issue Discussion

Agenda Item No:

Meeting Date: July 14, 2020

Presented by: Jon Meyer Staff Presenting Item

Approved by (dept): Jon Meyer Director/Manager

Approved for Commission review:

Rick Dunn General Manager/Asst GM

Motion for Commission Consideration

None. Background

Staff will be joined by the District’s Financial Advisor, Dick Shober of Piper Sandler & Co., and the District’s Underwriter, Christine Pihl of RBC Capital Markets to discuss details related to a 2020 Bond Issue. This includes the District’s debt profile, debt service reserve fund requirements, opportunities to refinance, and details related to issuing bonds. Summary

Details related to a 2020 Bond Issue will be discussed. Fiscal Impact

Issuing bonds will help spread the costs of core infrastructure over time to better align the costs with the benefits resulting in ratepayer equity. Issuing bonds removes the need for a near-term rate increase during a time of economic downturn while maintaining the Strategic Capital Plan and financial metrics.

3

2

July 14, 2020

Bond Issue Discussion

3

Introductions

▪ Financial Advisor

▪ Dick Schober, Piper Sandler & Co.

▪ Underwriter

▪ Christine Pihl, RBC Capital Markets

4

Agenda

▪ Review of Debt Service Schedules (Jon)

▪ Debt Service Reserve Fund Fundamentals (Jon)

▪ Market Overview (Christine)

▪ Current bonds & bondholders (Christine)

▪ What a $20M bond issue looks like (Christine)▪ Concepts of par amount v. what gets cleared

▪ What happens at closing

▪ Refinancing Opportunities (Christine)▪ Specific Mechanics of Refinancing 2011 and 2016 Bonds

▪ Abilities to Optimally Structure Refinancing

▪ Reduction of Debt Service Reserve Fund Requirement

▪ Mitigate annual debt service amounts in the next couple of years

5

Current Debt Service Schedule

$-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

Millions

2010 2011 2016 Avg Annual

6

Debt Service Schedule with a 25 year $20M Bond Issue Presented June 9, 2020 (Interest only until 2030)

$-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

Mill

ion

s

2010 2011 2016 2020 Avg Annual

As the 2020 Bond Issue develops with our

Underwriter and Financial Advisor the 2020 debt

service amounts could change slightly (will discuss

later)

7

Debt Service Reserve Fund (DSRF) Defined

▪ DSRF is a reserve fund that bondholders have first right to in case of default

▪ DSRF was defined in past Benton PUD bond issues as the following

▪ 125% of average annual debt service (AADS) (Least of available options)

▪ Bond insurance can be used to satisfy this requirement

▪ Total requirement in 2021 is $3.7M (without factoring in 2020 bonds)

▪ Currently funded with $1.1M cash and surety from 2001

▪ The surety from 2001 (refinanced in 2011) expires in 2021

▪ Benton PUD has $2.6M designated to fund the DSRF to replace it in 2021

8

Debt Service Reserve Fund (DSRF) History

▪ Historically, bond issuers included a DSRF in their bond covenants

▪ Issuers with good credit ratings started not including DSRF requirements in the past 5+ years

▪ DSRF related to Benton PUD’s outstanding bonds

▪ 2010 – DSRF included in covenants

▪ 2011 – DSRF included in covenants

▪ 2016 – DSRF NOT included in covenants

▪ 2020 Bond Issue – DSRF will NOT be included in covenants

9

Debt Service Reserve Fund (DSRF) “Consent”

▪ If an outstanding bond issue has DSRF requirement, then DSRF amount must include all new bond issues, unless 2/3 of all bondholders consent to not fund▪ 2016 Bond Covenants were written so that those bondholders “consented”

▪ 2020 Bond Covenants will be written to that these bondholders will “consent”

▪ Even with 2020 Bond Issue, 2/3 requirement to achieve consent would still not be achieved▪ Currently, this means a 2020 bond issue may result in additional $1.2M funding of DSRF

which either:▪ reduces proceeds of bond issue; or

▪ Requires the bond issue to be “sized up” to fund this requirement

▪ Consent = 2/3 of outstanding bonds have covenants that don’t require DSRF▪ Practically speaking, this is accomplished by refinancing a small amount of outstanding

bonds without consent with new bonds that do not have a DSRF requirement

10

Debt Service Reserve Fund (DSRF) Options

▪ Consent can be achieved by refinancing remaining 2011 bond issue▪ Refinance final principal payments in 2020 and 2021 of $9.8M total

▪ NPV cost of ~$80k (today’s market)

▪ Achieves “Consent” for new bond issues

▪ However… still leaves existing bonds (2016) subject to the DSRF requirement

▪ Refinancing some of the 2016 bonds reduces DSRF requirement▪ Choose the most economical maturities to refinance to lower the DSRF requirement

▪ NPV cost of ~$230k (today’s market)

▪ These two items together result in:▪ No additional DSRF for 2020 bonds (eliminates $1.2M of required funding)

▪ Lowers requirement from $3.7M next year to $2.4M (frees up $1.3M)

▪ In total, these two steps eliminate the need to set aside $2.5M in cash

11

Debt Service Reserve Fund (DSRF) Options

▪ Refinancing 2011 and pieces of 2016 also provide opportunity to level annual debt service over the next two years

▪ May result in pushing some principal (~$1M) out in future years from what otherwise would have occurred

▪ Christine will cover in more detail

12

Transition to Christine Pihl’s Presentation

13

STRICTLY PRIVATE AND CONFIDENTIAL

Benton PUD

Financing Overview

July 14, 2020

14

Market Update

15

RBC Capital Markets2

0.70%

1.70%

2.70%

3.70%

4.70%

5.70%

Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20

10 Yr 20 Yr 30 Yr

Current Municipal Market Conditions: “AAA” MMDTax-exempt rates are at their lowest levels of the decade

“AAA” MMD January 1, 2009 to Present Shift in “AAA” MMD Since July 2019

Source: TM3, Thomson Reuters10, 20, and 30 year “AAA” MMD shown to represent different average lives of municipal transactionsRates as of July 2, 2020

0.70%

1.00%

1.30%

1.60%

1.90%

2.20%

2.50%

2.80%

3.10%

3.40%

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

July 1, 2019 to Present10 Year 20 Year 30 Year

Maximum 2.79% 3.18% 3.37%Minimum 0.78% 1.19% 1.38%Average 1.32% 1.80% 1.99%

January 1, 2009 to Present

MaximumMinimumCurrentShift in 30-year "AAA" MMD

2013 2014 2015 2016 2017 2018 20191.33% -1.34% -0.01% 0.27% -0.51% 0.47% -0.93%

30 Year5.08%1.38%1.63%

10 Year3.53%0.78%0.90%

20 Year4.89%1.19%1.43%

Series 2010Series 2011 Series 2016

16


0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29

Current MMD Series 2010 (BABs) Series 2011 Series 2016 Indicative Scale

Historical View: Tax-Exempt Yield TrendsInterest rates are low with a flat yield curve

• Source: Thomson Reuters’ TM3, RBCCM as of July 6, 2020

Interest Rate (%)

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 300.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Current 2015 Low2-Yr Range 20-Yr Range 2020 Low

“AAA” GO MMD Yield Curve

MMD Yields are at All-Time Lows

Indicative Benton PUD scale

Rate Comparison:2020 Bonds* 2016 Bonds:

Arbitrage yield: 2.05% 2.50%All-in TIC: 2.83% 3.26%Average Life: 18.9 years 16.85 years

Final maturity of 2020 BondsAverage life of 2020 Bonds

* Preliminary; subject to change

17


Federal Infrastructure/Stimulus LegislationU.S. House of Representatives Passes INVEST in America Act (H.R.2)

Provisions include: 1) restoration of direct pay bonds (Qualified Infrastructure Bonds or QIBs), 2) restoration of tax-exempt advance refundings, 3) increase of the annual issuance limit for bank qualified bonds from $10 million to $30 million, 4) raise the per state annual private activity bond volume cap, and 5) authorize a new category of School Infrastructure Bonds (SIBs) with 100% interest subsidy.

Two Focused Companion Senate Bills introduced

• Restoration of Direct Pay Bonds (American Infrastructure Bonds)• Reinstatement of tax-exempt advance refunding bonds.

Senate leadership against a broad infrastructure bill; possibility of a more modest phase 4 COVID-19 stimulus package In September

1

Key Areas of Market Focus Going Forward

Markets Focused on Recent COVID-19 Resurgence in Several StatesEquity prices pushed steadily higher last week as positive economic reports and some encouraging news on the coronavirus vaccine front offset concerns over increasing infection rates across 36 states.

3

Road to RecoveryThe June jobs report propelled markets forward, as the unemployment rate fell from 13.3% to 11.1%; below consensus estimates of 12.5%. Hiring in June was heightened by partial business re-openings and continued government aid.

2

18

Bond Portfolio

19


Outstanding Debt and Current BondholdersCurrent Ratings:Aa3 / A+ / AA-

State Farm continues to be the largest bondholder

0

1

2

3

4

5

6

7

2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040

$ millions

Series 2010 (BABs)

Series 2011

Series 2016

Total Debt Service (w/Subsidy)

Current Bondholders Outstanding Debt By Series

FirmHoldings

($000)1 State Farm $12,6352 BlackRock 5,7353 Fidelity 2,7904 Mercury Insurance 1,5605 First Trust Advisors 1,2356 Country Trust Bank 1,0007 Opus Investment Management 1,0008 New England Asset Management 8209 Invesco 750

10 AQS Asset Management 65011 GBU Financial Life 57512 Federated Mutual Insurance 50013 BMO Asset Management 29514 Associated Loggers Exchange 25015 Croatian Fraternal Union of America 24516 Workmen's Benefit Fund of the USA 10017 Breckinridge Capital Advisors 25

Source: As of July 1, 2020. Reflects publicly disclosed holders

Annual Debt Service

Issue Par Outstanding Callable Par Final Maturity Call Date Call ProvisionSeries 2010 (BABs) $17,345,000 $17,345,000 11/01/2030 Currently Make-WholeSeries 2011 $9,770,000 $1,695,000 11/01/2022 11/01/2021 100%Series 2016 $22,470,000 $18,870,000 11/01/2041 11/01/2026 100%Totals $49,585,000 $37,910,000

20


Summary StatisticsSeries 2020A Par Amount $18,110,000Series 2020A Premium $3,313,080Total Sources $21,423,080DSRF Deposit $1,239,737Deposit to Project Fund $20,000,000All-in TIC 2.83%Arbitrage Yield 2.05%Average Coupon 4.03%Average Life (years) 18.90 years

Summary StatisticsSeries 2020A Par Amount $17,055,000Series 2020A Premium $3,120,291Total Sources $20,175,291DSRF Deposit $0Deposit to Project Fund $20,000,000All-in TIC 2.83%Arbitrage Yield 2.04%Average Coupon 4.03%Average Life (years) 18.90 years

Proposed New Money Bonds: $20 million Project Deposit

Project Fund: $20 million

Final maturity: 2045 (25 years)

Assumptions:

First principal amortization: 2031 First principal amortization: 2031

Case 1 with DSRF Case 2 without DSRF

Estimated Total Annual Debt Service Comparison

4% and 5% coupon structure

DSRF: with and without

Note: Preliminary analysis / subject to change – Rates as of June 23, 2020

012345678

2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044

$ millions

Series 2010 (BABs) Series 2011 Series 2016 Case 1 Case 2 - Total Gross Debt Service

21


Pricing ScheduleKey dates are shown below

Date Item

July 14 TuesdayCommission Meeting: Review bond structure

July/Aug Bond documents prepared/reviewed

July 28-29 Tues/Wed FOMC meeing

August 11 Tuesday Commission Meeting: Bond Resolution considered by Commission

August 13-14 Thurs/Friday Rating agency discussions

September 8 Tuesday Prelminary Official Statement posted/available to investors

September 16 Wednesday Price the Bonds/determine interest rates

September 29 Tuesday Bond issue closed; receive funds

Proposed Series 2020 BondsTimeline Overview

22


Outstanding Bonds

SeriesOutstading

Par Consented%

ConsentedRefunding Consents

Revised % Consented

2010 (BABs) 17,345,000 2011 9,770,000 9,770,000 2016* 22,470,000 22,470,000 2020* New 17,500,000 17,500,000

Total 67,085,000 39,970,000 60% 9,770,000 74%* Consented

Refunding Components: Eliminating the DSRF New Bond Issues

Highly rated, essential service utilities, like the District, are no longer funding DSRFs

‒ Does not negatively impact credit ratings

‒ Investors do not require them

Refunding the Series 2011 Bonds allows this provision to take place

Requires consent of +66 2/3rds of current bondholders

Small cost associated with refunding: $79,000

Only the remaining bonds are subject to the DSRF (Series 2010 and Series 2016)

Avoids funding of the DSRF for the Series 2020 Bonds


1

Refunding the Series 2011 Bonds enables the District to eliminate the DSRF for new bonds

Refunding Mechanics:

• Issue refunding bonds to purchase escrow securities

• Escrow securities are placed with an agent and irrevocably pledged to pay prior bonds

• This allows for prior bonds to be defeased

• Once defeased, the bonds are no longer considered outstanding to the District

• The refunding bonds have replaced the old bonds

23


Refunding Component: Reducing the DSRF Deposit


The remaining bonds continue to require a DSRF (Series 2010 and 2016)

Refunding a portion of these bonds reduces the required DSRF deposit

Current market conditions allow for efficient refunding of certain maturities to reduce the deposit

RBC analyzed all outstanding, individual maturities to determine most efficient candidates

Certain maturities of the Series 2016 Bonds can be refunded for little cost (< $235,000 to $310,000)

In total, the combined refunding candidates reduce the DSRF and avoid $1.3 million of additional DSRF deposit

2

Refunding a portion of the Series 2016 Bonds reduces the deposit to the DSRF

DSRF Reduction: $1,343,068

Current RequirementCash 1,107,865 On depositAdd'l Deposit 2,612,152 In 2021Total 3,720,017

Revised: Refund Series 2011 and partial Series 2016Cash 1,107,865 On depositAdd'l Deposit 1,269,084 In 2021Total 2,376,949

Refunding Mechanics:

• Issue refunding bonds to purchase escrow securities

• Escrow securities are placed with an agent and irrevocably pledged to pay prior bonds

• This allows for prior bonds to be defeased

• Once defeased, the bonds are no longer considered outstanding to the District

• The refunding bonds have replaced the old bonds

24


Refunding Component: Levelizing Annual Debt Service


The current debt service profile has a significant step-down in 2022 and 2023

The Series 2011 Bonds have a short final maturity (2022)

‒ The refunding of these bonds, at little to no cost, allows for modest restructuring from 2020 to 2022

The result is levelized near-term debt service payment for smoother budgeting

Cost associated with this component is approximately $70,000 to $186,000

Unique opportunity to smooth upcoming payments

0

1

2

3

4

5

6

7

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041

$ millions Series 2010 (BABs) Series 2011 Series 2016

3

Existing Annual Debt Service

25


0

2

4

6

8

2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044

$ millionsUnrefunded Debt Service Case 2: Refunding Debt Service New Money Debt Service Original DS

Results: Annual Debt Service Options


Case 2: With Smoothing of Debt Service

Base Case

0

2

4

6

8

2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044

$ millions

Unrefunded Debt Service Refunding Debt Service New Money Debt Service Original DS

26


Disclaimer (USA Municipal Finance)

RBC Capital Markets, LLC (“RBCCM”), seeks to serve as an underwriter on a future transaction and not as a financial advisor or municipal advisor. The information provided is for discussion purposes only in anticipation of being engaged to serve as an underwriter. The primary role of an underwriter is to purchase securities with a view to distribution in an arm’s-length commercial transaction with the issuer. The underwriter has financial and other interests that differ from those of the Issuer. RBCCM is not recommending an action to you as the municipal entity or obligated person. RBCCM is not acting as an advisor to you and does not owe a fiduciary duty pursuant to Section 15B of the Exchange Act to you with respect to the information and material contained in this communication. RBCCM is acting for its own interests. You should discuss any information and material contained in this communication with any and all internal or external advisors and experts that you deem appropriate before acting on this information or material.Disclaimer:This presentation was prepared exclusively for the benefit of and internal use by the recipient for the purpose of considering the transaction or transactions contemplated herein. This presentation is confidential and proprietary to RBC Capital Markets, LLC (“RBCCM”) and may not be disclosed, reproduced, distributed or used for any other purpose by the recipient without RBCCM’s express written consent. By acceptance of these materials, and notwithstanding any other express or implied agreement, arrangement, or understanding to the contrary, RBCCM, its affiliates and the recipient agree that the recipient (and its employees, representatives, and other agents) may disclose to any and all persons, without limitation of any kind from the commencement of discussions, the tax treatment, structure or strategy of the transaction and any fact that may be relevant to understanding such treatment, structure or strategy, and all materials of any kind (including opinions or other tax analyses) that are provided to the recipient relating to such tax treatment, structure, or strategy.The information and any analyses contained in this presentation are taken from, or based upon, information obtained from the recipient or from publicly available sources, the completeness and accuracy of which has not been independently verified, and cannot be assured by RBCCM. The information and any analyses in these materials reflect prevailing conditions and RBCCM’s views as of this date, all of which are subject to change. To the extent projections and financial analyses are set forth herein, they may be based on estimated financial performance prepared by or in consultation with the recipient and are intended only to suggest reasonable ranges of results. The printed presentation is incomplete without reference to the oral presentation or other written materials that supplement it.IRS Circular 230 Disclosure: RBCCM and its affiliates do not provide tax advice and nothing contained herein should be construed as tax advice. Any discussion of U.S. tax matters contained herein (including any attachments) (i) was not intended or written to be used, and cannot be used, by you for the purpose of avoiding tax penalties; and (ii) was written in connection with the promotion or marketing of the matters addressed herein. Accordingly, you should seek advice based upon your particular circumstances from an independent tax advisor.

27

PUBLIC UTILITY DISTRICT NO. 1 OF BENTON CO., WA.TREASURER'S REPORT TO COMMISSION FOR JUNE 2020

Jul 6, 2020

Final

`

REVENUE FUND: RECEIPTS DISBURSEMENTS BALANCE

06/01/20 Cash Balance 2,152,909.37$ Collections 11,738,769.80$

Investments Matured 6,012,326.36

Miscellaneous - BAB's Subsidy - Transfer from Debt Service Fund -

EFT Taxes 717,431.39$

Checks Paid 659,358.77 Debt Service to Unrestricted - Debt Service to Restricted 512,326.36 Investments Purchased 5,510,774.16

Deferred Compensation 122,168.91

Department of Retirement Systems 235,199.21

Purchase Inv - Special Fund-Construction Funds - Purchased Power 7,004,322.17

Direct Deposit - Payroll & AP 2,257,080.55

Credit Card Fees 29,154.77 Miscellaneous - BPA Broadband Pmt. and DOR License Renewal 569.80

Sub-total 17,751,096.16$ 17,048,386.09$ 06/30/20 Cash Balance 2,855,619.44$

Balance Balance

Investment 06/01/20 Purchased Matured LGIP Interest 06/30/20

Activity $34,712,719.85 6,012,326.36 6,012,326.36 $10,774.16 $34,723,494.01

Balance Balance

Check 06/01/20 Issued Redeemed Cancelled* 06/30/20

Activity $32,087.03 $654,812.74 $659,358.77 $325.00 $27,216.00

Unrestricted Reserves: 06/01/20 06/30/20 Change

Minimum Operating Reserves (90 DCOH) Incl. RSA 35,683,380.00$ 35,509,410.00$ (173,970.00)$ Designated Reserves (Bond Insurance Replacement) 2,612,152.17 2,612,152.17 - Designated Reserves (Customer Deposits Account) 1,900,000.00 1,900,000.00 -

Designated Reserves (Power Market Volatility Account) 1,229,168.70 1,229,168.70 -

Designated Reserves (Special Capital Account) - - -

Undesignated Reserves (DCOH -20 days) (8,138,171.15) (7,763,043.28) 375,127.87 Unrestricted Reserves Total 33,286,529.72 33,487,687.59 201,157.87

DCOH - Beginning and Ending of Month 84 85DCOH - Year-end Projection ($38.3M) 96 97

Restricted Reserves:Bond Reserve Account 1,107,865.13$ 1,107,865.13$ -

Bond Redemption Accounts 2,471,234.37 2,983,560.74 512,326.36

Restricted Reserves Total 3,579,099.50 4,091,425.87 512,326.36

TOTAL RESERVES 36,865,629.22$ 37,579,113.46$ 713,484.23$

(1) RSA (Rate Stabilization Account): $7,500,000.00

(2) Undesignated Reserves are periodically reviewed to reallocate to the Designated Reserve accounts

(3) Year-end DCOH projection includes actuals through June and no impacts related to weather or COVID-19 past June.

Prepared by:__________________________________ Certified by:____________________________________

Keith Mercer, Treasurer Jon Meyer, Auditor

(2)

(1)

(3)

28

CASH & INVESTMENTS SUMMARY Average Weighted Yield 0.371%

as of June 30, 2020

Maturity Investment Financial Call Investment

Date Instrument Institution Provisions Yield Date Amount

TOTAL SECURITIES -

Daily LGIP** N/A 0.371% Varied 34,723,494

TOTAL INVESTMENTS 34,723,494

CASH 2,855,616

* Held in custody at Wells Fargo Bank TOTAL CASH & INVESTMENTS $ 37,579,111** Local Government Investment Pool

Average Days to Maturity 0

Investment Portfolio

LGIP FHLB FNMA FHLMC FFCB Cash

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

Historical LGIP Rate

0.0

1.0

2.0

3.0

1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr

Pe

rce

nta

ge

Daily Treasury Yield Curve 6/30/2020 6/30/2019 6/30/2018

Source: http://www.ustreas.gov/offices/domestic-finance/debt-management/interest-rate/yield.shtml

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

- -

2020 20222021

29

Unrestricted Reserves and Days Cash on Hand (DCOH)

$35.7

$2.6 $1.9 $1.2 $- $-

90 DCOH

7 DCOH 5 DCOH 3 DCOH

0 DCOH 0 DCOH

$-

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

MinimumOperatingReserves

Bond InsuranceReplacement

CustomerDeposits

Power MarketVolatility

Special Capital UndesignatedReserves

$ M

illio

ns

Unrestricted Reserves as of January 1, 2020 Treasurer's Report*

$35.5

$2.6 $1.9 $1.2 $-

$(7.8)

90 DCOH

7 DCOH 5 DCOH 3 DCOH 0 DCOH

(20) DCOH

$(10.0)

$(5.0)

$-

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

MinimumOperatingReserves

Bond InsuranceReplacement

Customer Deposits Power MarketVolatility

Special Capital UndesignatedReserves

$ M

illio

ns

Unrestricted Reservesas of June 30, 2020

Total Reserves: $41.4M Estimated 2020 $ per 1 DCOH: $397k

Total DCOH: 105

*On January 14, 2020, the Commission approved redistributing the Undesignated Reserves to Designated Reserve accounts

forecast

#1

#2

$37.7 $38.5 $37.1 $37.1 $38.1 $38.3

95

DC

OH

98

DC

OH

93

DC

OH

93

DC

OH

96

DC

OH

97

DC

OH

0

20

40

60

80

100

120

140

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

$45.0

Day

s C

ash

on

Han

d (

DC

OH

)

Un

rest

rict

ed

Re

serv

es

$ M

illio

ns

2020 Forecasted Year-End Unrestricted Reserve Balance and DCOH by Month

#3

7/6/2020

DCOH calculation from current 2020

Total DCOH: 85Estimated 2020 $ per 1 DCOH: $395k Total Reserves: $33.5M

30

Note: Starting in 2019, the Privilege Tax due date changed to February. Prior to 2019, the Privilege Tax due date and payment was in May. Privilege

Tax payments were moved to February for 2018 - 2016 for comparison purposes. Also, in 2016 the $15M received from issuing bonds in October was

removed for comparison purposes.

$(15.0)

$(13.0)

$(11.0)

$(9.0)

$(7.0)

$(5.0)

$(3.0)

$(1.0)

$1.0

$3.0

$5.0

Start ofYear


Mill

ion

sCumulative Unrestricted Reserves by End of Month by Year

2016 2017 2018 2019 2020

23

4

1

31

as of Jun 30,2020

CounterPartyUnsecured

CreditGuaranty Collateral Total Credit

Credit

Available

%

AvailableBilled Unbilled

MTM

Exposure

Total

Exposure

American Electric Power Service Corporation 825,000 0 0 825,000 825,000 50% 0 0 0 0

WSPP 0 0 0 825,000 825,000 100% 0 0 0 0

AAA 825,000 0 0 825,000 0 0% 0 0 0 0

Arizona Public Service Company 2,250,000 0 0 2,250,000 2,250,000 50% 0 0 0 0

WSPP 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

AAA 2,250,000 0 0 2,250,000 0 0% 0 0 0 0

Avista Corporation 225,000 0 0 225,000 225,000 50% 0 0 0 0

WSPP 0 0 0 225,000 225,000 100% 0 0 0 0

AAA 225,000 0 0 225,000 0 0% 0 0 0 0

BP Energy Company 0 2,900,000 0 2,900,000 5,872,183 67% 0 22,022 (58,114) (36,091)

ISDA 0 0 0 2,900,000 2,936,091 101% 0 22,022 (58,114) (36,091)

WSPP 0 0 0 2,900,000 2,936,091 101% 0 0 0 0

AAA 0 2,900,000 0 2,900,000 0 0% 0 0 0 0

Citigroup Energy Inc. 0 2,250,000 0 2,250,000 3,197,444 47% 0 169,358 481,919 651,278

ISDA w/ Pwr Anx 0 0 0 2,250,000 1,598,722 71% 0 169,358 481,919 651,278

WSPP 0 0 0 2,250,000 1,598,722 71% 0 0 0 0

AAA 0 2,250,000 0 2,250,000 0 0% 0 0 0 0

City of Seattle, by and through its City Light Dept 2,250,000 0 0 2,250,000 2,250,000 50% 0 0 0 0

WSPP 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

AAA 2,250,000 0 0 2,250,000 0 0% 0 0 0 0

Clatskanie People's Utility District 1,640,625 0 0 1,640,625 1,640,625 50% 0 0 0 0

WSPP 0 0 0 1,640,625 1,640,625 100% 0 0 0 0

AAA 1,640,625 0 0 1,640,625 0 0% 0 0 0 0

CP Energy Marketing (US) Inc. 0 2,000,000 0 2,000,000 2,000,000 50% 0 0 0 0

WSPP 0 0 0 2,000,000 2,000,000 100% 0 0 0 0

AAA 0 2,000,000 0 2,000,000 0 0% 0 0 0 0

EDF Trading North America, LLC 0 2,250,000 0 2,250,000 2,337,591 104% 0 (175,890) 88,299 (87,591)

ISDA w/ Pwr Anx 0 2,250,000 0 2,250,000 2,337,591 104% 0 (175,890) 88,299 (87,591)

AAA 0 0 0 0 0 0% 0 0 0 0

Emerald People's Utility District 2,250,000 0 0 2,250,000 2,250,000 50% 0 0 0 0

Transmission 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

AAA 2,250,000 0 0 2,250,000 0 0% 0 0 0 0

Eugene Water & Electric Board 2,250,000 0 0 2,250,000 2,250,000 50% 0 0 0 0

WSPP 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

AAA 2,250,000 0 0 2,250,000 0 0% 0 0 0 0

Exelon Generation Company, LLC 2,250,000 0 0 2,250,000 4,500,000 67% 0 0 0 0

ISDA 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

WSPP 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

AAA 2,250,000 0 0 2,250,000 0 0% 0 0 0 0

FortisBC Energy Inc. 225,000 0 0 225,000 225,000 50% 0 0 0 0

Gas EDI 0 0 0 225,000 225,000 100% 0 0 0 0

Credit Exposure Report: Public Utility District No. 1 of Benton County, Washington

Page 1 of 432

as of Jun 30,2020



Credit

Available

%


MTM

Exposure

Total

Exposure


AAA 225,000 0 0 225,000 0 0% 0 0 0 0

Grant County Public Utility District No. 2 2,250,000 0 0 2,250,000 2,250,000 50% 0 0 0 0

WSPP 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

AAA 2,250,000 0 0 2,250,000 0 0% 0 0 0 0

Idaho Falls Power 1,265,625 0 0 1,265,625 1,265,625 50% 0 0 0 0

WSPP 0 0 0 1,265,625 1,265,625 100% 0 0 0 0

AAA 1,265,625 0 0 1,265,625 0 0% 0 0 0 0

Idaho Power Company 2,250,000 0 0 2,250,000 2,250,000 50% 0 0 0 0

WSPP 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

AAA 2,250,000 0 0 2,250,000 0 0% 0 0 0 0

IGI Resources, Inc. 0 100,000 0 100,000 100,000 50% 0 0 0 0

Gas 0 0 0 100,000 100,000 100% 0 0 0 0

AAA 0 100,000 0 100,000 0 0% 0 0 0 0

J. Aron & Company LLC 0 2,250,000 0 2,250,000 2,250,000 50% 0 0 0 0

WSPP 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

AAA 0 2,250,000 0 2,250,000 0 0% 0 0 0 0

Macquarie Energy, LLC 0 2,150,000 0 2,150,000 1,568,139 73% 0 (44,908) 626,769 581,861

ISDA w/ Pwr Anx 0 2,150,000 0 2,150,000 1,568,139 73% 0 (44,908) 626,769 581,861

AAA 0 0 0 0 0 0% 0 0 0 0

Morgan Stanley Capital Group Inc. 0 2,250,000 0 2,250,000 3,682,430 55% 0 (28,022) 436,807 408,785

ISDA 0 0 0 2,250,000 1,841,215 82% 0 (28,022) 436,807 408,785

WSPP 0 0 0 2,250,000 1,841,215 82% 0 0 0 0

AAA 0 2,250,000 0 2,250,000 0 0% 0 0 0 0

NorthWestern Corporation d/b/a NorthWestern Energy1,800,000 0 0 1,800,000 1,800,000 50% 0 0 0 0

WSPP 0 0 0 1,800,000 1,800,000 100% 0 0 0 0

AAA 1,800,000 0 0 1,800,000 0 0% 0 0 0 0

PacifiCorp 2,250,000 0 0 2,250,000 4,500,000 67% 0 0 0 0

Transmission 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

WSPP 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

AAA 2,250,000 0 0 2,250,000 0 0% 0 0 0 0

Portland General Electric Company 2,250,000 0 0 2,250,000 2,250,000 50% 0 0 0 0

WSPP 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

AAA 2,250,000 0 0 2,250,000 0 0% 0 0 0 0

Powerex Corp. 0 1,950,000 0 1,950,000 5,850,000 75% 0 0 0 0

ISDA 0 0 0 1,950,000 1,950,000 100% 0 0 0 0

NAESB 0 0 0 1,950,000 1,950,000 100% 0 0 0 0

WSPP 0 0 0 1,950,000 1,950,000 100% 0 0 0 0

AAA 0 1,950,000 0 1,950,000 0 0% 0 0 0 0

Public Service Company of Colorado 1,258,125 0 0 1,258,125 1,258,125 50% 0 0 0 0

WSPP 0 0 0 1,258,125 1,258,125 100% 0 0 0 0

AAA 1,258,125 0 0 1,258,125 0 0% 0 0 0 0

Page 2 of 433

as of Jun 30,2020



Credit

Available

%


MTM

Exposure

Total

Exposure


Public Utility District No. 1 of Chelan County, Washington2,250,000 0 0 2,250,000 2,250,000 50% 0 0 0 0

WSPP 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

AAA 2,250,000 0 0 2,250,000 0 0% 0 0 0 0

Public Utility District No. 1 of Clark County, Washington 2,250,000 0 0 2,250,000 2,250,000 50% 0 0 0 0

WSPP 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

AAA 2,250,000 0 0 2,250,000 0 0% 0 0 0 0

Public Utility District No. 1 of Cowlitz County, Washington2,250,000 0 0 2,250,000 2,250,000 50% 0 0 0 0

WSPP 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

AAA 2,250,000 0 0 2,250,000 0 0% 0 0 0 0

Public Utility District No. 1 of Franklin County, Washington2,250,000 0 0 2,250,000 4,500,000 67% 0 0 0 0

Transmission 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

WSPP 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

AAA 2,250,000 0 0 2,250,000 0 0% 0 0 0 0

Public Utility District No. 1 of Grays Harbor County, Washington2,250,000 0 0 2,250,000 4,500,000 67% 0 0 0 0

Transmission 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

WSPP 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

AAA 2,250,000 0 0 2,250,000 0 0% 0 0 0 0

Public Utility District No. 1 of Klickitat County, Washington2,203,125 0 0 2,203,125 6,609,375 75% 0 0 0 0

Power 0 0 0 2,203,125 2,203,125 100% 0 0 0 0

Transmission 0 0 0 2,203,125 2,203,125 100% 0 0 0 0

WSPP 0 0 0 2,203,125 2,203,125 100% 0 0 0 0

AAA 2,203,125 0 0 2,203,125 0 0% 0 0 0 0

Public Utility District No. 1 of Snohomish County 2,250,000 0 0 2,250,000 2,250,000 50% 0 0 0 0

WSPP 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

AAA 2,250,000 0 0 2,250,000 0 0% 0 0 0 0

Public Utility District No. 3 of Mason County 1,453,125 0 0 1,453,125 1,452,616 50% 0 505 4 509

WSPP 0 0 0 1,453,125 1,452,616 100% 0 505 4 509

AAA 1,453,125 0 0 1,453,125 0 0% 0 0 0 0

Puget Sound Energy Inc. 2,100,000 0 0 2,100,000 4,200,000 67% 0 0 0 0

NAESB 0 0 0 2,100,000 2,100,000 100% 0 0 0 0

WSPP 0 0 0 2,100,000 2,100,000 100% 0 0 0 0

AAA 2,100,000 0 0 2,100,000 0 0% 0 0 0 0

Sacramento Municipal Utility District 2,250,000 0 0 2,250,000 2,250,000 50% 0 0 0 0

WSPP 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

AAA 2,250,000 0 0 2,250,000 0 0% 0 0 0 0

Shell Energy North America (Canada), Inc. 100,000 0 0 100,000 100,000 50% 0 0 0 0

NAESB 0 0 0 100,000 100,000 100% 0 0 0 0

AAA 100,000 0 0 100,000 0 0% 0 0 0 0

Shell Energy North America (US), L.P. 1,283,750 0 0 1,283,750 2,567,500 67% 0 0 0 0

ISDA 0 0 0 1,283,750 1,283,750 100% 0 0 0 0

WSPP 0 0 0 1,283,750 1,283,750 100% 0 0 0 0

Page 3 of 434

as of Jun 30,2020



Credit

Available

%


MTM

Exposure

Total

Exposure


AAA 1,283,750 0 0 1,283,750 0 0% 0 0 0 0

Tacoma Power 2,250,000 0 0 2,250,000 4,500,000 67% 0 0 0 0

Transmission 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

WSPP 0 0 0 2,250,000 2,250,000 100% 0 0 0 0

AAA 2,250,000 0 0 2,250,000 0 0% 0 0 0 0

Tenaska Marketing Ventures 0 1,875,000 0 1,875,000 1,875,000 50% 0 0 0 0

NAESB 0 0 0 1,875,000 1,875,000 100% 0 0 0 0

AAA 0 1,875,000 0 1,875,000 0 0% 0 0 0 0

Tenaska Power Services Company 0 1,875,000 0 1,875,000 3,750,000 67% 0 0 0 0

Transmission 0 0 0 1,875,000 1,875,000 100% 0 0 0 0

WSPP 0 0 0 1,875,000 1,875,000 100% 0 0 0 0

AAA 0 1,875,000 0 1,875,000 0 0% 0 0 0 0

The Energy Authority, Inc. 4,000,000 0 0 4,000,000 12,033,731 75% 0 (11,912) 669 (11,244)

Acct RMA 0 0 0 4,000,000 4,011,244 100% 0 (91,959) 200 (91,759)

Transmission 0 0 0 4,000,000 4,011,244 100% 0 0 0 0

WSPP 0 0 0 4,000,000 4,011,244 100% 0 80,047 469 80,516

AAA 4,000,000 0 0 4,000,000 0 0% 0 0 0 0

Page 4 of 435

95%

0% 0% 4% 0%0%

Benton PUD Credit Exposure by Sector as of June 30, 2020Bank $1,726,431 Integrated Oil & Gas Companies $0 IOU $13,665

IOU Affiliate $125 Marketer/Merchant $82,052 Muni/Coop $2,170

RTO $0

Benton's total exposure (principal and agent) is $1,824,443

36

78%

0%

1%

18%

1%0%

Benton PUD Credit Exposure by Sector as of May 31, 2020Bank $1,665,115 Integrated Oil & Gas Companies $0 IOU $41,634

IOU Affiliate $16,108 Marketer/Merchant $389,808 Muni/Coop $11,069

RTO $7,557

Benton's total exposure (principal and agent) is $2,131,290

37

PUBLIC UTILITY DISTRICT NO. 1 OF

BENTON COUNTY

Date: June 23, 2020 Time: 9:00 a.m. Place: Via MS Teams, per Proclamation No. 20-28 Attendees: Commissioners Hall, Bush and Sanders General Counsel Hultgrenn General Manager Dunn Assistant General Manager Hunter Director of Finance and Customer Services Meyer Director of Executive Administration Conover Director of IT and Broadband Services Folta Director of Power Management White Manager of Communications and Governmental Relations Henderson Manager of Risk Management and Treasury Operations Mercer Manager of Accounting Zirker Manager of Contracts & Purchasing Ochweri Manager of Customer Service McAloon Manager of Conservation & Renewable Energy Programs Johnson Manager of System Engineering Edwards Supervisor of Executive Administration/Clerk of the Board Manager Marshall Senior Engineer Scherer Commissioner Jeff Hall announced that Commissioner Lori Sanders would be a few minutes late in joining today’s commission meeting. The Pledge of Allegiance was given. Consent Agenda Motion by Barry Bush, seconded by Jeff Hall to approve the Consent Agenda as follows: a) Approving Commission Meeting Minutes of June 9, 2020. b) Approving Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims certified as required by RCW 42.24.090, have been recorded on a listing made available to the Commission. As of this date, the Commission does approve the following for payment: Accounts Payable: Automated Clearing House (DD) payments 80483-80499 80653-80672 in the total amount of $569,615.09, Checks & Customer Refund payments (CHK) 79205-79252 in the total amount of $142,100.05, Electronic Fund Transfer (WIRE) payments 5379-5393 in the total amount of $749,920.09; Residential

38

Conservation Rebates, Credits on Customer Accounts in the total amount of $260.00; Payroll, Direct Deposit 06/11/20 80500-80652 in the total amount of $394,882.24 for a grand total of $1,856,777.47. c) Approving work order 590993 to re-build the existing distribution line to a new 336.4 AAC overhead feeder along Sagebrush Road. d) Awarding Contract #20-21-18 for Southridge Substation Civil Construction to Palouse Power, LLC of Quincy, WA for the total amount of $687,543.72 plus Washington State sales tax in accordance with RCW 54.04.080. MOTION PASSED UNANIMOUSLY. State Auditor’s Office – Exit Conference for 2019 Accountability & Legal Compliance Audit Manager of Accounting introduced Markus Nelson, with the Washington State Auditor’s Office. Mr. Nelson reviewed the results of the 2019 accountability audit and stated the District was compliant with all areas of the audit. Mr. Nelson stated the District received a clean audit with no findings or management letter items. Mr. Nelson thanked District staff for their help throughout the audit process, while also working remotely. Commissioner Lori Sanders joined the commission meeting at 9:10 a.m. Report from Management General Manager: 1. General Manager reminded the Commissioners to review the commission message that will be included in the CAFR and provide any updates to Manager of Communications & Governmental Relations. A discussion was held regarding the letter the District drafted to send to the Governor as a follow up to the letter the Washington PUD Association (WPUDA) sent on behalf of its members. 2. An update was provided on a recent email the commissioners received from a customer regarding his concerns with a city of Kennewick contractor’s construction staging operation being conducted on a property adjacent to his home and to the District’s Highlands substation property. General Manager has communicated with City of Kennewick Officials and Benton PUD Operations staff have gone out to the property as well. Currently there is no concern from Benton PUD and City Officials are addressing other concerns related to this property with the customer. District staff will follow up with this customer. Director of Power Management: 1. Director provided an update on BPA’s integrated program review meeting that was held last week. BPA is currently proposing holding program costs flat for BP-22, which account for roughly half of BPA’s revenue requirement. 2. An update was provided on the District’s summer load position. A brief discussion was held on market power prices and summer temperatures.

39

Director of Finance and Customer Services: 1. Director reviewed the District’s May 2020 financial statements that are also posted on the District’s website. Director also reviewed graphs that were included in the commission packet which provided information on residential and general services, large general service, accounts receivables and customer service statistics. An update was given on District’s accounts receivables due to businesses not having staff in office to process payments as quickly as well as an update on State and Federal COVID-19 pledges that are being received on customer accounts. 2. Director reported on upcoming meetings District staff are having with other utilities and will return to a future commission meeting with updates on what other utilities are doing for customers during this pandemic. Director informed the Commission on letters that are being sent out to past due customers with assistance options that may be available to them. General Manager provided a staffing update. Commissioner Lori Sanders expressed her interest in joining the Sunrise Rotary and plans to join after the pandemic is over and in-person meetings are occurring. Business Agenda Wind Power and Clean Energy Policy Perspectives White Paper General Manager reviewed the Wind Power and Clean Energy Policy Perspectives White Paper that was also included in the commission packet. A discussion was held on the one-page Executive Summary and sections of the White Paper. Commissioner Lori Sanders suggested a possible rearrangement of the Executive Summary. All Commissioners agreed the Executive Summary should include talking points and that the District’s position could be more specific and clearer. A discussion was held regarding how the White Paper could be distributed and used once it is approved. General Manager will return to a future commission meeting after incorporating the ideas discussed during today’s meeting. At 10:43 a.m., Commission President Jeff Hall announced that the commission meeting would recess for 7 minutes. At 10:50 a.m., General Manager announced Commission President Jeff Hall was experiencing technical difficulties and the commission meeting would continue in recess for 5 minutes. At 10:55 a.m., Commission President Jeff Hall reconvened the commission meeting into regular open public session.

40

City of Kennewick Franchise Agreements for the Electrical City Ordinance 5872 (Contract #20-21-21) and Broadband Systems City Ordinance 5871 (Contract #20-46-09) General Manager and Director of IT and Broadband Services reviewed the proposed franchise agreements that were also included in the commission packet. These Ordinances allow the District to construct, maintain and operate the electrical and fiber optic systems within the City’s right of way and easements. Motion by Lori Sanders, seconded by Barry Bush authorizing the General Manager on behalf of the District to sign in substantially the form presented City Ordinance 5872 (Contract #20-21-21) and City Ordinance 5871 (Contract #20-46-09) with the City of Kennewick, to construct, maintain and operate the electrical and fiber optic systems; effective July 1, 2020 for five (5) years with the option to automatically renew for one (1) successive period for five (5) years. MOTION PASSED UNANIMOUSLY. Motion to Implement Long Term Payment Arrangements and Changes to Pay as You Go Director of Finance and Customer Services reviewed staff’s recommended motion to implement long-term payment arrangements and changes to Pay as You Go, as well as District communications to customers that would occur. Implementing long-term payment arrangements and changes to Pay as You Go provide an option to customers with past due amounts to maintain continuous service while paying past due amounts over a period of time. Discussions were held on circumstances that could occur for customers and options for customers who enroll in Pay as You Go. Director reviewed principles for long-term payment arrangements and Pay as you Go changes, informed the Commission of details that need to be further refined. Motion by Lori Sanders, seconded by Barry Bush directing staff to implement a long-term payment arrangement program for customers and changes to Pay as You Go in accordance with the principles in Attachment 1. MOTION PASSED UNANIMOUSLY. Authorizing General Manager to proceed with developing plans to issue $20 million in bonds in 2020 Director of Finance and Customer Services reviewed staff’s recommendation to issue bonds that would accomplish the following objectives; maintain the strategic capital program to develop a 21st century power grid, maintain adequate financial metrics and credit rating, be well positioned for anticipated continued power market volatility as the region struggles with replacing capacity from closure of coal plants, and remove the need for near-term rate increase during a time of economic downturn. Director informed the Commission that approval of this motion authorizes the General Manger to direct staff to develop plans to issue $20 million in bonds in 2020 as well as evaluate the potential for refinancing existing bonds. This motion is not an approval to issue bonds. Staff

41

will return to a future commission meeting with a recommended Resolution for adoption that would allow for the District to issue bonds. Motion by Lori Sanders, seconded by Barry Bush directing the General Manager, on behalf of the District to develop plans to issue $20 million in bonds in 2020, and review other refinancing opportunities of existing bonds. The actual bond issue will require subsequent Board approval. MOTION PASSED UNANIMOUSLY. Resolution No. 2547, Providing for the Reimbursement of Certain Expenditures Out of the Issuance and Sale of Reimbursement Bonds Director of Finance and Customer Services reviewed the recommended Resolution that would allow capital expenditures incurred 60 days prior to the date of this resolution to be reimbursed by the proceeds of any new money revenue bonds per IRS regulations. This resolution provides the District flexibility if bonds are issued but does not give approval to issue bonds nor does it obligate the District to issue bonds. Motion by Lori Sanders, seconded by Barry Bush adopting Resolution No. 2547, providing for the reimbursement of certain expenditures out of the issuance and sale of reimbursement bonds. MOTION PASSED UNANIMOUSLY. Future Planning Commissioner Lori Sanders informed the Commission that she would not be able to attend in-person commission meetings in July. Meeting Reports Commissioners Jeff Hall and Barry Bush virtually attended the WPUDA Board of Directors meeting. Commissioner Lori Sanders reported on her recent virtual attendance of a Benton County Council of Governments board meeting. Hearing no objection, Commission President Jeff Hall adjourned the Commission Meeting at 11:29 a.m. ______________________________ Jeffrey D. Hall, President ATTEST: ______________________________ Barry A. Bush, Secretary

42

Type of Payment Starting # Ending # Page # Amount

Accounts Payable:

Automated Clearing House (DD) Payments 80673 - 80714 1 - 4

80865 - 80905 5 - 8

Checks & Customer Refund Payments (CHK) 79253 - 79376 9 - 16

650,823.31$

Electronic Fund Transfer (WIRE) Payments 5394 - 5416 17

7,573,303.59$

Residential Conservation Rebates:

Credits on Customer Accounts

18 1,530.00$

Purchase Card Detail:

Payroll:

Direct Deposit - 06/25/20 80715 - 80864 351,631.28$

TOTAL 9,809,750.76$

Void DD

Void Checks 9 325.00$

Void Wires

______________________________________________

Jon L. Meyer, Auditor Date

Reviewed by: Approved by:

____________________________________ ______________________________________________

Rick Dunn, General Manager

______________________________________________

______________________________________________

PAYMENT APPROVAL

July 14, 2020

The vouchers presented on this Payment Approval Report for approval by the Board of Commissioners have been audited and certified by

the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims by officers and employees have been certified

as required by RCW 42.24.090.

June 2020

1,232,462.58$

Jeffrey D. Hall, President

Lori Kays-Sanders, Vice-President

Barry A. Bush, Secretary

I, the undersigned Auditor of Public Utility District No. 1 of Benton County, do hereby certify under penalty of perjury that the materials have

been furnished, the services rendered, or the labor performed as described, or that any advance payment is due and payable pursuant to a

contract or is available as an option for full or partial fulfillment of a contractual obligation, and that the claims identified in this report are

just, due and unpaid obligations against the District and that I am authorized to authenticate and certify to said claims.

43

/06/2020 8:21:43 AMRevision: 96739

Accounts PayableCheck Register

BENTON COUNTY PUD NO. 1

06/15/2020 To 07/05/2020Bank Account: 1 - Benton PUD ACH/Wire

Check /Tran Date

PmtType AmountVendor NameVendor Reference

DD80673 06/17/2020 10659 ABBA TECHNOLOGIES, INC. Sotware maintenance/renewel 4,068.73

DD80674 06/17/2020 475 ABM JANITORIAL SERVICES Janitorial Svc 3,879.39Janitorial Svc 4,704.27Janitorial Svc 1,424.36

Total for Check/Tran - 80674: 10,008.02

DD80675 06/17/2020 963 ANIXTER INC. Elbows 14,769.60switch 9,749.02


DD80676 06/17/2020 811 AUS WEST LOCKBOX Weekly Svc 44.24Weekly Svc 40.61Weekly Svc 30.52Weekly Svc 36.95weekly svc 44.24weekly svc 40.61weekly svc 30.52weekly svc 36.95

Total for Check/Tran - 80676: 304.64

DD80677 06/17/2020 3347 CANON BUSINESS SOLUTIONS, INC. Monthly Billings 73.73Monthly Billing 28.08Monthly Billing 6.50


DD80678 06/17/2020 2680 CO-ENERGY Fuel Svc 780.61

DD80679 06/17/2020 2972 COMPUNET, INC. Software Support/License 5,547.02

DD80680 06/17/2020 57 CONSOLIDATED ELECTRICAL DISTRIB Coupling 576.67conduit 8,294.25


DD80681 06/17/2020 1897 CONTROL SOLUTIONS NORTHWEST IN troubleshooting server issues 135.76Chiller Start Up 1,350.66

/pro/rpttemplate/acct/2.47.1/ap/AP_CHK_REGISTER.xml.rpt51204 44

/06/2020 8:21:43 AMRevision: 96739




Check /Tran Date



DD80682 06/17/2020 3167 COOPERATIVE RESPONSE CENTER, INC Multispeak OMS/CRCLink Single User 9,899.83

DD80683 06/17/2020 339 DELL MARKETING CORP Computers 5,895.48

DD80684 06/17/2020 10134 END 2 END TECHNOLOGIES, LLC radios 12,679.05radios -1,004.05


DD80685 06/17/2020 3130 GDS ASSOCIATES, INC. PSA 342.50

DD80686 06/17/2020 79 GENERAL PACIFIC, INC. tape 1,355.33

DD80687 06/17/2020 3969 GPS INSIGHT, LLC Device Monitoring 2,036.59

DD80688 06/17/2020 724 HERITAGE PROFESSIONAL LANDSCAPI Landscaping Svc 1,597.51Landscaping Svc 270.40Landscaping Svc 290.08Landscaping Svc 377.10Landscaping Svc 979.02Landscaping Svc 320.12Landscaping Svc 928.26Landscaping Svc 415.47


DD80689 06/17/2020 10662 HIGH VOLTAGE INC. Hipot meter/safaety switch -717.76Hipot meter/safaety switch 9,063.76


DD80690 06/17/2020 990 INSIGHT PUBLIC SECTOR INC. Software License 531.39

DD80691 06/17/2020 1632 INTERCONTINENTAL EXCHANGE, INC. EConfirm Charges 5/20 114.00

DD80692 06/17/2020 3154 IVOXY CONSULTING, LLC Horizon Architecture Planning Svc 6,600.00

DD80693 06/17/2020 214 JACOBS & RHODES REEP 1,100.00

DD80694 06/17/2020 296 JOB'S NURSERY plants/shrubs 186.40


/06/2020 8:21:43 AMRevision: 96739




Check /Tran Date


DD80695 06/17/2020 103 KENNEWICK, CITY OF Occupation Tax 05/20 342,039.12

DD80696 06/17/2020 103 KENNEWICK, CITY OF Monthly billing 203.01Monthly Billing 302.84Monthly Billilng 369.36Monthly Billing 194.89Monthly billing 395.09


DD80697 06/17/2020 2027 KUFFEL, HULTGRENN, KLASHKE AND Professional Svc 3,335.16

DD80698 06/17/2020 3644 LOOMIS Safepoint Svc 626.94Safepoint Svc 321.58


DD80699 06/17/2020 3430 JESSICA MARSHALL IIMC Training 50.00

DD80700 06/17/2020 10563 MESSAGE TECHNOLOGIES, INC. IVR Svc 4,370.33

DD80701 06/17/2020 3821 NISC Software Lic-IVUE Mapwise 7,760.12Software Lic-IVUE Mapwise 2,299.29Software Lic-IVUE Mapwise 3,448.94Software Lic-IVUE Mapwise 15,232.81envelopes/mail svc/postage/data svc 30,429.31Postage/Online Payments 393.09Postage/Online Payments 385.54


DD80702 06/17/2020 919 NOANET 1,460.002,131.00

15,376.8361,507.32

114,739.001,500.001,000.00

51204 /pro/rpttemplate/acct/2.47.1/ap/AP_CHK_REGISTER.xml.rpt

Bombing Range Rd Reconstruction EngBerrian Metering Tap EngLOC Draw #2Broadband BillingBroadband BillingFranklin POPKenn Verizon

46

/06/2020 8:21:43 AMRevision: 96739




Check /Tran Date


Paterson Metering Tap eng 1,500.00repairs - richland 1,732.29repairs - Richland 4,943.41


DD80703 06/17/2020 3407 NRC ENVIRONMENTAL SERVICES INC. 2,838.37

DD80704 06/17/2020 3162 ONLINE INFORMATION SERVICES, INC. Online Utility Exchange -109.59Online Utility Exchange 1,383.89


DD80705 06/17/2020 10035 PACIFIC POLE INSPECTION LLC 27,570.20

DD80706 06/17/2020 585 PARADISE BOTTLED WATER CO. Monthly Billing 187.66

DD80707 06/17/2020 1241 PARAMOUNT COMMUNICATIONS, INC. Momentum Telecom 162.90Momentum Telecom 245.44Momentum Telecom 22,742.14


DD80708 06/17/2020 146 S&C ELECTRIC COMPANY Anchor bolt kit 249.78

DD80709 06/17/2020 2154 SENSUS USA, INC. SAAS Monthly Fee 7,645.84

DD80710 06/17/2020 1369 UNITED SALES ASSOCIATES, INC. batteries 7,133.63

DD80711 06/17/2020 10154 US PAYMENTS, LLC Kiosk Processing/Transaction 1,624.60Kiosk Processing/Transaction 1,440.00


DD80712 06/17/2020 272 UTILITIES UNDERGROUND LOCATION Excavations Svc 984.27

DD80713 06/17/2020 205 WASHINGTON STATE AUDITOR'S OFFI Auditing Svc 3,924.57Energy Independence Attestation Audit 5,281.77


DD80714 06/17/2020 182 WESCO DISTRIBUTION Wire 3,464.34wire 2,489.63

Total for Check/Tran - 80714: 5,953.97/pro/rpttemplate/acct/2.47.1/ap/AP_CHK_REGISTER.xml.rpt51204

Fire Guard Paint Application

47

/06/2020 8:21:43 AMRevision: 96739




Check /Tran Date


DD80865 06/24/2020 2872 A W REHN & ASSOC COBRA 25.00

DD80866 06/24/2020 1736 A W REHN & ASSOCIATES,INC. Flex Spending Dependent Care 384.62Flex Spending Health Care 1,902.48


DD80867 06/24/2020 963 ANIXTER INC. material 3,773.85

DD80868 06/24/2020 811 AUS WEST LOCKBOX weekly svc 44.24weekly svc 40.61weekly svc 30.52weekly svc 36.95


DD80869 06/24/2020 3347 CANON BUSINESS SOLUTIONS, INC. Monthly Billing 1.84

DD80870 06/24/2020 2972 COMPUNET, INC. Software/Support 3,698.52

DD80871 06/24/2020 75 FRANKLIN PUD CWPU 2,186.91

DD80872 06/24/2020 2675 G & W ELECTRIC COMPANY Sectionalizer Diamond Back 50,042.88Sectionalizer Diamond Back -3,962.88


DD80873 06/24/2020 79 GENERAL PACIFIC, INC. Material 473.26fiber 5,098.93


DD80874 06/24/2020 10142 GROWING FORWARD SERVICES Leadership Training 4,480.00

DD80875 06/24/2020 10420 HEALTH INVEST HRA TRUST Employer Monthly Fees 5/1/20-5/31/20 28.40

DD80876 06/24/2020 103 KENNEWICK, CITY OF Monthly billing 480.54

DD80877 06/24/2020 10055 LOGMEIN USA, INC. web Conferencing Svc 524.27

DD80878 06/24/2020 3343 MOSS ADAMS, LLP Auditing Svc 14,500.00

DD80879 06/24/2020 10474 DAWN STRINGER Facebook Ad - Power is Water 200.00


/06/2020 8:21:43 AMRevision: 96739




Check /Tran Date


DD80880 06/24/2020 10028 SYMETRA LIFE INSURANCE COMPANY Non-Barg Basic AD&D 171.36Non-Barg Basic Dep Life 102.06Non-Barg Basic Life 1,085.28Self Insured STD 369.75Basic AD&D 386.28Basic LIfe 1,249.01Supplemental AD&D - Child 5.64Supplemental AD&D - EE 359.40Supplemental AD&D - Spouse 197.40Supplemental Life - Child 64.35Supplemental Life - EE 2,926.30Supplemental Life - Spouse 633.95LTD - Buy-Up 880.00LTD - Core No Buy-Up 3,533.79LTD 88 12.28


DD80881 06/24/2020 1048 UNITED WAY OF BENTON & FRANKLIN EE United Way Contribution 391.97

DD80882 06/24/2020 205 WASHINGTON STATE AUDITOR'S OFFI Endrgy Independence Attestation 836.94Endrgy Independence Attestation 147.03Accountability Audit 12,441.00


DD80883 06/24/2020 10667 WBE TECHNOLOGIES LLC Rack Mount Fiber Panels 11,475.22

DD80884 06/24/2020 2791 WESTERN ELECTRICITY COORDINATIN Retired Recs 31.45

DD80885 07/01/2020 2872 A W REHN & ASSOC FSA Medical/Dep Cared Admin Fee 157.50

DD80886 07/01/2020 963 ANIXTER INC. material 6,340.85

DD80887 07/01/2020 811 AUS WEST LOCKBOX Weekly Svc 44.24weekly Svc 40.61Weekly Svc 30.52


/06/2020 8:21:43 AMRevision: 96739




Check /Tran Date


Weekly Svc 36.95Total for Check/Tran - 80887: 152.32

DD80888 07/01/2020 613 CAMPBELL & COMPANY REEP 500.00

DD80889 07/01/2020 10033 COMPSYCH CORPORATION Guidance Resources 584.37

DD80890 07/01/2020 2972 COMPUNET, INC. Software License/Material 44.80Software License/Material 13,568.99Software License/Material 7,294.61


DD80891 07/01/2020 10642 DAIKIN APPLIED AMERICAS, INC. Chiller repair 4,816.42

DD80892 07/01/2020 79 GENERAL PACIFIC, INC. material 3,567.90marker ball fiber 52.58tangent 15,188.80


DD80893 07/01/2020 10499 INDUSTRIAL CONSTRUCTORS, INC. Chillier/boiler/Stucco bldg 4,075.00Construction of 9,775.00Chillier/Boiler Bldg 673.15Chillier/Boiler Bldg 2,143.33


DD80894 07/01/2020 10660 IRBY ELECTRICAL UTILITIES DE AUTO 1/2 IN SHORT BAIL 201.67

DD80895 07/01/2020 214 JACOBS & RHODES REEP 500.00REEP 500.00


DD80896 07/01/2020 3430 JESSICA MARSHALL IIMC Training 50.00

DD80897 07/01/2020 10651 MEINBERG USA, INC. SyncBox -198.66SyncBox 2,508.66


DD80898 07/01/2020 111 MONARCH MACHINE & TOOL CO., INC. Aluminum plates 485.81


/06/2020 8:21:43 AMRevision: 96739




Check /Tran Date


DD80899 07/01/2020 1241 PARAMOUNT COMMUNICATIONS, INC. Tri City Orthodontics 162.90Tri City Orthodontics 6,401.56


DD80900 07/01/2020 2632 PASCOR ATLANTIC CORPORATION Insulators 9,051.81Insulators -716.81


DD80901 07/01/2020 3696 SUMMIT LAW GROUP, PLLC Professional Svc 330.00

DD80902 07/01/2020 155 THERMAL SUPPLY, INC. mateiral 7,902.11

DD80903 07/01/2020 1163 TYNDALE ENTERPRISES, INC. Clothing-Kile 287.95Clothing - Hartzell 109.20


DD80904 07/01/2020 575 WELLS FARGO BANK EE Vision 122.33ER Vision 2,951.07EE Health 10,587.81ER Health 166,072.50EE Dental 677.58ER Dental 16,425.19


DD80905 07/01/2020 182 WESCO DISTRIBUTION Splice 775.40auto splice 674.60Hardware Fitting 112.40


Total Payments for Bank Account - 1 : (83) 1,232,462.58Total Voids for Bank Account - 1 : (0) 0.00

Total for Bank Account - 1 : (83) 1,232,462.58


/06/2020 8:21:43 AMRevision: 96739



06/15/2020 To 07/05/2020Bank Account: 2 - BPUD Accounts Payable Warrants

Check /Tran Date


CHK79230 06/03/2020 99999 DAVE A SITTMAN VOIDCredit Balance Refund 325.00

CHK79253 06/17/2020 3598 ALDEN SYSTEMS, INC. NotifyPro Subscription -344.00NotifyPro Subscription 4,344.00


CHK79254 06/17/2020 215 ALLAN ELECTRIC AMI 564.72

CHK79255 06/17/2020 1372 ASSOCIATION OF WASHINGTON CITIES Membership Dues 500.00

CHK79256 06/17/2020 2425 AT&T MOBILITY Monthly billing 63.84

CHK79257 06/17/2020 436 BANK OF AMERICA LOC 10,111.11

CHK79258 06/17/2020 259 BENTON FRANKLIN COMMUNITY ACTI Helping Hands 1,367.05

CHK79259 06/17/2020 35 BENTON PUD - CUSTOMER ACCOUNT D Monthly Billing 719.69

CHK79260 06/17/2020 3172 BIG D'S CONSTRUCTION Gibbons Rd - Pole holes 1,148.45

CHK79261 06/17/2020 54 BNSF RAILWAY COMPANY Permit 275.00Permit 400.00Permit 100.00


CHK79262 06/17/2020 3344 BOYD'S TREE SERVICE, LLC Tree Trimming Svc 7,940.48Tree Trimming svc 8,701.62Tree Trimming Svc 3,970.24


CHK79263 06/17/2020 138 CCR - TRI-CITIES ,LLC Advertising 960.00Advertising 900.00Advertising 960.00


CHK79264 06/17/2020 32 CITY OF BENTON CITY Occupation Tax 05/20 8,567.42

CHK79265 06/17/2020 2450 D HITTLE & ASSCOCIATES, INC. Southridge Substation 10,667.50Joint Use 1,600.00


/06/2020 8:21:43 AMRevision: 96739




Check /Tran Date



CHK79266 06/17/2020 642 EVERGREEN FINANCIAL SERVICES, IN Debgt Collection Svc 31.79

CHK79267 06/17/2020 10169 FALCON SOFTWARE COMPANY, INC. Maintenance/Support 1,500.00

CHK79268 06/17/2020 10345 H&S STORAGE, LLC C0mmercial Energy Efficiency Prg 1,140.00

CHK79269 06/17/2020 310 MOON SECURITY SERVICES, INC. Monitoring Svc 288.87Monitoring Svc 109.69Monitoring Svc 79.28Monitoring Svc 79.28Monitoring Svc 79.28Monitoring Svc 131.95


CHK79270 06/17/2020 2176 PACIFIC OFFICE AUTOMATION, INC. Monthly billing 25.10Monthly billing 9.32Monthly Billing 279.10


CHK79271 06/17/2020 1661 PORTLAND BOLT Anchor Bolts 2,923.41

CHK79272 06/17/2020 135 PROSSER, CITY OF Occupation Tax 05/20 29,533.15

CHK79273 06/17/2020 1592 REESE CONCRETE PRODUCTS MFG. INC vault base/lid 19,005.00

CHK79274 06/17/2020 141 RICHLAND, CITY OF Occupation Tax 05/20 2,318.82

CHK79275 06/17/2020 10230 SMG-TRI CITIES, LLC Advertising 1,680.00Advertising 2,100.00Advertising 1,200.00


CHK79276 06/17/2020 139 TOWNSQUARE MEDIA TRI CITIES Advertising 1,260.00Advertising 1,200.00Advertising 660.00



/06/2020 8:21:43 AMRevision: 96739




Check /Tran Date


CHK79277 06/17/2020 10669 TOYOTA OF TRI CITIES Commercial Energy Efficliency Prg 8,665.00

CHK79278 06/17/2020 3006 TRI-CITY GLASS, INC. REEP 1,412.36

CHK79279 06/17/2020 992 VERIZON NORTHWEST Monthly Billing 547.97

CHK79280 06/17/2020 100 WASTE MANAGEMENT OF WASHINGT Monthly billing 889.27Monthly billing 272.73Monthly Billing 510.98


CHK79281 06/17/2020 99999 ADA B ADAMS Credit Balance Refund 246.58

CHK79282 06/17/2020 99999 ADA B ADAMS Credit Balance Refund 46.38

CHK79283 06/17/2020 99999 LUIS BELTRAN Credit Balance Refund 194.96

CHK79284 06/17/2020 99999 BRYCE BRAGG Credit Balance Refund 164.86

CHK79285 06/17/2020 99999 HELEN W BUESCHER Credit Balance Refund 38.17

CHK79286 06/17/2020 99999 ROXY DELORME Credit Balance Refund 34.28

CHK79287 06/17/2020 99999 STEVEN R EINAN Credit Balance Refund 400.00

CHK79288 06/17/2020 99999 DONA M ELWOOD Credit Balance Refund 250.00

CHK79289 06/17/2020 99999 JOHN L FRISCH Credit Balance Refund 142.30

CHK79290 06/17/2020 99999 HELEENE F GARZON Credit Balance Refund 109.01

CHK79291 06/17/2020 99999 TYLER S GOETSCH Credit Balance Refund 142.00

CHK79292 06/17/2020 99999 CONNIE L HEEP Credit Balance Refund 250.00

CHK79293 06/17/2020 99999 DEWAYNE L HETRICK Credit Balance Refund 300.00

CHK79294 06/17/2020 99999 VICTORIA HUEY Credit Balance Refund 47.70

CHK79295 06/17/2020 99999 BRADFORD K HUGGINS Credit Balance Refund 58.85

CHK79296 06/17/2020 99999 KEVIN R HULBERT Credit Balance Refund 306.24

CHK79297 06/17/2020 99999 NICOLE JACKSON-MILLER Credit Balance Refund 130.46


/06/2020 8:21:43 AMRevision: 96739




Check /Tran Date


CHK79298 06/17/2020 99999 ALMA JASHARI Credit Balance Refund 131.11

CHK79299 06/17/2020 99999 ANTONETTE JEWELL Credit Balance Refund 200.00

CHK79300 06/17/2020 99999 LOUIE J LOPEZ Credit Balance Refund 15.61

CHK79301 06/17/2020 99999 SHIRLEY F MARTIN Credit Balance Refund 300.00

CHK79302 06/17/2020 99999 ARAJETSY MARTINEZ Credit Balance Refund 29.45

CHK79303 06/17/2020 99999 CARMEN Z MATUS Credit Balance Refund 52.94

CHK79304 06/17/2020 99999 DAVID MCCARROLL Credit Balance Refund 82.61

CHK79305 06/17/2020 99999 NORMA JEAN MORELAND Credit Balance Refund 45.53

CHK79306 06/17/2020 99999 HOPE F MORRIS Credit Balance Refund 326.32

CHK79307 06/17/2020 99999 ASHLEY PENINGTON Credit Balance Refund 74.36

CHK79308 06/17/2020 99999 JACK L PIERCE SR Credit Balance Refund 116.22

CHK79309 06/17/2020 99999 PRATT FAMILY INVESTMENTS LLC Credit Balance Refund 325.77

CHK79310 06/17/2020 99999 CARLA REA Credit Balance Refund 31.29

CHK79311 06/17/2020 99999 RUBY A ROHDE Credit Balance Refund 148.67

CHK79312 06/17/2020 99999 ELIDA N SALDANA Credit Balance Refund 116.45

CHK79313 06/17/2020 99999 BRENDA SERVOSS Credit Balance Refund 116.60

CHK79314 06/17/2020 99999 EVELYN E SITTMAN Credit Balance Refund 325.00

CHK79315 06/17/2020 99999 LISA M STEELE Credit Balance Refund 536.30

CHK79316 06/17/2020 99999 DEANNA URIBE Credit Balance Refund 169.43

CHK79317 06/17/2020 99999 KELSEY VASQUEZ Credit Balance Refund 59.80

CHK79318 06/24/2020 54 BNSF RAILWAY COMPANY Permit - AS Cable Sewer Pipeline 250.00Permit-Anchor & Longitud Electric Line 100.00Permit- Electic Line Permit 650.00



/06/2020 8:21:43 AMRevision: 96739




Check /Tran Date


CHK79319 06/24/2020 3344 BOYD'S TREE SERVICE, LLC Tree Trimming Svc 7,421.36Tree Trimming Svc 6,333.56Tree Trimming Svc 1,389.58


CHK79320 06/24/2020 10166 BYRNES OIL COMPANY, INC. Fuel Svc 3,210.71Fuel Svc 3,814.26


CHK79321 06/24/2020 3520 CI INFORMATION MANAGEMENT Destruction Svc 567.00Storage Svc 68.98


CHK79322 06/24/2020 3439 DJ'S ELECTRICAL, INC. Cable Replacement 23,379.93Cable Replacement 7,252.00Cable Replacement 211,366.62Joint Use-NESC Comploance 1,378.36Joint Use-NESC Comploance 574.31Joint Use-NESC Comploance 71,025.07


CHK79323 06/24/2020 99 KIE SUPPLY CORP swab pipe 690.12BEND 90 PVC 2,678.08


CHK79324 06/24/2020 10162 LINGUISTICA INTERNATIONAL, INC. Interpreting Svc 10.73

CHK79325 06/24/2020 2176 PACIFIC OFFICE AUTOMATION, INC. monthly billing 109.96

CHK79326 06/24/2020 379 PURMS JOINT SELF INSURANCE FUND AEGIS Public Officials Policy 18,144.84

CHK79327 06/24/2020 10212 QCL, INC. Drug Screening Svc 69.99

CHK79328 06/24/2020 3507 STORAGE BATTERY SYSTEMS LLC battery 1,521.05

CHK79329 06/24/2020 99999 MARIA A ALMONTE Credit Balance Refund 73.63

CHK79330 06/24/2020 99999 YADIRA ALVAREZ Credit Balance Refund 115.35


/06/2020 8:21:43 AMRevision: 96739




Check /Tran Date


CHK79331 06/24/2020 99999 JESSICA L ARCOS Credit Balance Refund 144.42

CHK79332 06/24/2020 99999 ANTJE BAHR Credit Balance Refund 65.48

CHK79333 06/24/2020 99999 RON BARNES Credit Balance Refund 30.27

CHK79334 06/24/2020 99999 NATALIE BELLOSO Credit Balance Refund 81.25

CHK79335 06/24/2020 99999 WILLETTA BETHEA Credit Balance Refund 124.22

CHK79336 06/24/2020 99999 JACOB M BREAUX Credit Balance Refund 138.61

CHK79337 06/24/2020 99999 BLAKE BUSHORE Credit Balance Refund 43.85

CHK79338 06/24/2020 99999 MARITZA CAMACHO Credit Balance Refund 32.89

CHK79339 06/24/2020 99999 ANDREA CARREON MALDONADO Credit Balance Refund 156.56

CHK79340 06/24/2020 99999 CHELSEA CHRISTENSEN Credit Balance Refund 126.94

CHK79341 06/24/2020 99999 SARAI DELATORRE Credit Balance Refund 124.32

CHK79342 06/24/2020 99999 CODY HARRINGTON Credit Balance Refund 148.72

CHK79343 06/24/2020 99999 DOMINIQUE A HERNANDEZ Credit Balance Refund 118.80

CHK79344 06/24/2020 99999 SARAH M JACKSON Credit Balance Refund 13.86

CHK79345 06/24/2020 99999 TREANNA JUDD Credit Balance Refund 57.95

CHK79346 06/24/2020 99999 PHILIP LIESSMANN Credit Balance Refund 51.06

CHK79347 06/24/2020 99999 GRACIELA MADRIGAL MERAZ Credit Balance Refund 35.46

CHK79348 06/24/2020 99999 HUU THACH NGUYEN Credit Balance Refund 17.95

CHK79349 06/24/2020 99999 CHEYENNE PARKS Credit Balance Refund 167.16

CHK79350 06/24/2020 99999 G C PAULSELL Credit Balance Refund 200.00

CHK79351 06/24/2020 99999 ANDREW G POMIAK Credit Balance Refund 152.96

CHK79352 06/24/2020 99999 ROBERT ELLIS POST 4 KENNEWICK Credit Balance Refund 129.99

CHK79353 06/24/2020 99999 MARIA I RODRIGUEZ-RUIZ Credit Balance Refund 22.78


/06/2020 8:21:43 AMRevision: 96739




Check /Tran Date


CHK79354 06/24/2020 99999 DEREK STRINGER Credit Balance Refund 41.33

CHK79355 06/24/2020 99999 TRUNG TRAN Credit Balance Refund 36.60

CHK79356 06/24/2020 99999 HALIE D ULREY Credit Balance Refund 148.35

CHK79357 06/24/2020 99999 CORRIE M VARGAS Credit Balance Refund 424.05

CHK79358 06/24/2020 99999 OSCAR VILLA Credit Balance Refund 134.07

CHK79359 06/24/2020 99999 JASON A ZOOK Credit Balance Refund 32.58

CHK79360 07/01/2020 2425 AT&T MOBILITY Monthly Billing 10.88

CHK79361 07/01/2020 35 BENTON PUD - CUSTOMER ACCOUNT D Monthly Billing 491.10

CHK79362 07/01/2020 3344 BOYD'S TREE SERVICE, LLC Tree Trimming Svc 7,940.48Tree Trimming Svc 5,373.86


CHK79363 07/01/2020 166 CENTURYLINK Monthly Billing 452.12

CHK79364 07/01/2020 3029 DELTA HEATING & COOLING, INC. REEP 1,100.00

CHK79365 07/01/2020 3439 DJ'S ELECTRICAL, INC. Orchard View Underground Conduit 85,113.33

CHK79366 07/01/2020 10640 EXPRESS 24 HR PLUMBING & DRAIN, L Repair - admin mop sink 352.95

CHK79367 07/01/2020 10518 NORTHWEST RIVER PARTNERS Power is water Campaign 2020 27,956.00

CHK79368 07/01/2020 2176 PACIFIC OFFICE AUTOMATION, INC. Monthly Billing 9.35

CHK79369 07/01/2020 611 PAVEMENT SURFACE CONTROL Commercial Energy Efficiency Prg 3,524.00

CHK79370 07/01/2020 3054 PROFESSIONAL CREDIT SERVICE (PCS) Debt Collection Svc 59.80

CHK79371 07/01/2020 3506 SMART ENERGY CONSUMER COLLABO Membership Dues 2020-2021 2,500.00

CHK79372 07/01/2020 2699 TOTAL ENERGY MANAGEMENT & HVA REEP 1,100.00

CHK79373 07/01/2020 2699 TOTAL ENERGY MANAGEMENT & HVA REEP 1,100.00

CHK79374 07/01/2020 1397 UMATILLA ELECTRIC COOPERATIVE POle Contact 2020 21.90

CHK79375 07/01/2020 1304 US CELLULAR Monthly Billing 148.50/pro/rpttemplate/acct/2.47.1/ap/AP_CHK_REGISTER.xml.rpt51204 58

/06/2020 8:21:43 AMRevision: 96739




Check /Tran Date


CHK79376 07/01/2020 992 VERIZON NORTHWEST Monthly Billing 194.61Monthly Billing 147.00Monthly Billing 177.00Monthly Billing 181.97Monthly Billing 97.20Monthly Billing 58.57


Total Payments for Bank Account - 2 : (124) 650,823.31Total Voids for Bank Account - 2 : (1) 325.00

Total for Bank Account - 2 : (125) 651,148.31

Grand Total for Payments : (207) 1,883,285.89Grand Total for Voids : (1) 325.00

Grand Total : 1,883,610.89(208)


07/06/2020 11:55:24 AMRevision: 96739



ALLBank Account: 1 - Benton PUD ACH/Wire

Check /Tran Date


WIRE5394 06/15/2020 436 BANK OF AMERICA 1,549.57Banking Service FeesWIRE5396 06/15/2020 2570 THE ENERGY AUTHORITY, INC. 137,367.45Purchased PowerWIRE5397 06/19/2020 169 ENERGY NORTHWEST 162,684.38Purchased Power 7/20WIRE5398 06/19/2020 2902 WHITE CREEK WIND I, LLC 78,064.00Purchased Power 5/20WIRE5400 06/23/2020 1821 FREDERICKSON POWER L.P. 672,851.53Purchased Gas 5/20WIRE5401 06/23/2020 246 BONNEVILLE POWER ADMIN 4,720,089.00Purchased Power 5/20WIRE5402 06/01/2020 1680 MORGAN STANLEY 360.00Purchased Gas 4/20WIRE5404 06/25/2020 2205 UNITED STATES TREASURY 138,827.95Federal Income TaxWIRE5405 06/25/2020 1567 ICMA RETIREMENT CORP 60,174.93Deferred Comp - ERWIRE5406 06/25/2020 171 WASH STATE DEPT RETIREMENT SYS 112,306.76PERS - ERWIRE5407 06/25/2020 437 WASH STATE DEPT SUPPORT REGIST 925.24Garnishment - Child SupportWIRE5408 06/25/2020 246 BONNEVILLE POWER ADMIN 964,344.00Transmission Bill 5/20WIRE5409 06/25/2020 933 POWEREX CORPORATION 13,950.26Purchased GasWIRE5410 06/26/2020 424 WASH STATE DEPT REVENUE-EXCISE T 411,576.76Excise Tax 5/20WIRE5411 06/29/2020 246 BONNEVILLE POWER ADMIN 385.00Fiber LeaseWIRE5413 06/30/2020 10052 JACK HENRY & ASSOCIATES, INC. 563.10Merchant SvcWIRE5414 07/01/2020 2800 LL&P WIND ENERGY, INC. 60,079.12Purchased Power 5/20WIRE5415 07/03/2020 169 ENERGY NORTHWEST 33,146.08Purchased Power 5/20WIRE5416 07/03/2020 925 KLICKITAT COUNTY PUD 4,058.46TX White Crk/Rock Crk 5/20

Total Payments for Bank Account - 1 : (19) 7,573,303.59Total Voids for Bank Account - 1 : (0) 0.00

Total for Bank Account - 1 : (19) 7,573,303.59

Grand Total for Payments : (19) 7,573,303.59Grand Total for Voids : (0) 0.00

Grand Total : 7,573,303.59(19)

/pro/rpttemplate/acct/2.47.1/ap/AP_CHK_REGISTER.xml.rpt51204

Page 17

60

Date Customer Rebate Amount

06/19/2020 MARION GOODRICH 100.00$

06/19/2020 RUBEN NAVARRETE 100.00$

06/19/2020 XOIMARA COREA 100.00$

06/19/2020 ROGER J QUESNELL 100.00$

06/19/2020 JEFFREY LATENDRESSE 30.00$

07/01/2020 CHRISTINA SOMERO 500.00$

07/01/2020 LANAJ LEWIS 100.00$

07/01/2020 CHARLES DORENDORF 500.00$

1,530.00$

BENTON PUD - RESIDENTIAL CONSERVATION REBATE DETAIL

Rebate - Heat Pump Water Heater

Rebate - Smart Thermostat

Rebate - Heat Pump Water HeaterRebate - Energy Star Clothes Washer





Rebate Description

Page 18

61

Business Agenda

Second Reading

X Consent Agenda


Info Only


Subject: Retired Equipment Surplus

Agenda Item No:


Presented by: Michelle Ochweri Staff Presenting Item




Motion for Commission Consideration Motion to adopt Resolution No. 2548 declaring certain transformers surplus to District needs according to the laws of the State of Washington, Title 54, RCW 54.16.180, and authorizing the General Manager on behalf of the District to dispose of same. Background It is recommended that the attached list of District equipment to be declared surplus and no longer suitable for District use. These transformers have gone through the maintenance process, reviewed and been deemed no longer suitable for District use. Summary Unusable equipment is sent off site for disposal to a recycling facility that meets federal and state regulations. Fiscal Impact There is no cost to the District for this disposal activity.

5c

62

RESOLUTION NO. 2548 July 14, 2020 A RESOLUTION DECLARING CERTAIN EQUIPMENT SURPLUS TO DISTRICT NEEDS

WHEREAS, Public Utility District No. 1 of Benton County is desirous of disposing of certain surplus equipment that is unserviceable, obsolete, worn out, unfit, inadequate and/or no longer necessary, material to, and useful in its operations, and

WHEREAS, the laws of the State of Washington, Title 54, Revised Code of Washington, Chapter 54 Section 16.180, provided the necessary authority for the District to dispose of said equipment, Now, Therefore,

BE IT HEREBY RESOLVED, that the Commission of Public Utility District No. 1 of Benton County declare the equipment listed below surplus because it is unserviceable, obsolete, worn out, unfit, inadequate and/or no longer necessary, material to, and useful in the District's operations, and

BE IT FURTHER RESOLVED, that the General Manager is authorized to dispose of this equipment per District policies.

(TRANSFORMERS, CURRENT TRANSFORMERS, RECLOSER CORE, CAPACITORS, REGULATORS, SWITCH CABINETS, BREAKER, SECTIONALIZER – AS SHOWN ON ATTACHED LIST)

_________________________________ Jeffrey D. Hall, President

Attest: _________________________________ Barry A. Bush, Secretary

63

Transformers for Surplus/Disposal

Item D/N Type Ph Secondary ID Pri High Pri Low Sec High Sec Low Kva PPM

1 11628 UG 3 S780199N 12470 7200 208 120 300 LT1

2 13327 UG 1 801127185 12470 7200 240 120 25 LT1

3 13473 OH 1 81VC068132 7200 12470 120 240 25 LT1

4 13980 UG 1 83M96779 12470 7200 240 120 25 LT1

5 14871 OH 1 P430307YRC 7200 12470 120 240 10 LT1

6 15652 OH 1 90NN084013 7200 12470 120 240 10 LT1

7 15946 OH 1 35U2850547 7200 12470 120 240 15 LT1

8 16005 OH 1 2209684091 7200 12470 120 240 10 LT1

9 16494 UG 1 40V3225030 12470 7200 240 120 25 LT1

10 18904 OH 1 1466960799 7200 12470 120 240 15 LT1

11 18919 OH 1 1466880799 7200 12470 120 240 15 LT1

12 19085 UG 1 1525050899 12470 7200 240 120 50 LT1

13 19418 UG 1 2429081700 12470 7200 240 120 25 LT1

14 20206 UG 1 1790421302 12470 7200 240 120 37.5 LT1

15 20475 UG 1 1723281303 12470 7200 240 120 25 LT1

16 21054 UG 1 405053149 12470 7200 240 120 37.5 LT1

17 21069 UG 1 405053164 12470 7200 240 120 37.5 LT1

18 21865 UG 1 6215795106 12470 7200 240 120 25 LT1

19 21909 UG 1 6022004906 12470 7200 240 120 37.5 LT1

20 22329 UG 1 1547720908 12470 7200 240 120 25 LT1

21 22382 UG 1 3776404108 12470 7200 240 120 25 LT1

22 22799 UG 1 314654510 12470 7200 240 120 25 LT1

23 23015 UG 1 1410441111 12470 7200 240 120 25 LT1

24 24032 UG 1 21409793712 12470 7200 240 120 37.5 LT1

25 24226 UG 1 1813561814 12470 7200 240 120 25 LT1

26 25588 OH 1 1116930318 7200 12470 120 240 10 LT1

27 26947 UG 1 1170080420 12470 7200 240 120 25 LT1

28 2766 OH 1 95620 7200 12470 120 240 50 LT1

29 5581 OH 1 FV312516 7200 12470 120 240 25 LT1

30 5909 OH 1 PED2762 7200 12470 240 480 50 LT1

31 6313 OH 1 682002159 7200 12470 120 240 37.5 LT1

64

X Business Agenda

Second Reading

Consent Agenda


Info Only


Subject: Motion Extending Temporary Changes to the District’s Customer Service Rates and Policies

Agenda Item No:


Presented by: Jon Meyer Staff Presenting Item



Rick Dunn

General Manager/Asst GM

Motion for Commission Consideration: Motion extending the following temporary changes that became effective March 16, 2020 to the District’s Customer Service Rates and Policies, Resolution No. 2516:

1) Discontinuance of the assessment of the 1% late fee on past due balances. 2) Suspension of the mailing of Urgent Notices to customers with delinquent account

balances. 3) Suspension of disconnects for non-pay.

These temporary changes do not pertain to the following:

1) Schedule 34 Large Industrial 2) Schedule 51 Street Lighting 3) Schedules 72 through 76, Large Irrigation 4) Schedule 85 Flats – Unmetered Electric Service 5) Customers that meet the definition of an Electricity Intensive Load (EIL)

And authorizing the temporary changes to continue in place through the end of the day on August 1, 2020. Recommendation/Background On March 24, 2020 the Commission ratified changes to the Customer Service Rates and Policies that were made in response to efforts established by the State of Washington to prevent the spread of COVID 19. The Commission recognized these efforts had caused significant disruption to the local economy and created financial hardships for customers who had already lost their jobs or had their work hours reduced. The changes to the Customer Service Rates and Policies were intended to give customers some certainty and relief and included discontinuance of the assessment of late fees, suspending disconnects for non-pay, and suspending Urgent Notices.

7a

65

The initial Commission action on March 24, 2020 was to allow the temporary changes to continue until the close of business April 30, 2020. At the same time the Commission was taking action, the Governor was issuing proclamations that ultimately required suspension of disconnects for non-payment and late fees specifically for residential customers. The Commission took additional action over the next several Commission meetings to extend these changes for all rate classes. The latest extension occurred at the June 9, 2020 Commission meeting which suspended disconnects for non-pay, late fees, and urgent notices through July 28, 2020 for residential and general service customers. It excluded customer classes that were more industry specific and where such industries had not been required to close or reduce business as a result of the Governor’s Stay Home Stay Healthy orders. At the time, this suspension was in alignment with the latest Governor’s Proclamation (20-23.5) requiring the suspension for residential customers through July 28, 2020, and went a step further by continuing the suspension to general service rate classes. The Governor issued Proclamation 20-23.6 on July 2, 2020, that extends the suspension of disconnect for non-pay and late fees for residential customers through August 1, 2020. The motion included in this agenda item aligns the District’s suspension through the same date and maintains the suspension for general service customers. Staff will continue to monitor any future proclamations made by the Governor and discuss such items with the Commission at future Commission meetings. Proclamation 20-23.5 also required utilities to implement a COVID-19 Customer Support Program by July 10 consistent with guidance published by the Governor’s office. This guidance was pulled by the Governor’s office after consultation with stakeholder groups, including WPUDA shortly after it was issued. After input from the various stakeholder groups, new guidance for a COVID-19 Customer Support Program was included with Proclamation 20-23.6. Proclamation 20-23.6 requires utilities to have a COVID-19 Customer Support Program consistent with the Guidance document to have been reviewed and prominently included on the utility’s website by August 1, 2020. Both Proclamation 20-23.6 and the Guidance document are included in this agenda item for reference. The District has already taken action on establishing a long-term payment arrangement plan at the June 23, 2020 Commission meeting creating a 12-month long-term payment arrangement program and changes to Pay as You Go, once the suspension of disconnects expires. Staff will continue reviewing the Guidance document and bring any future recommendations back to the Commission. Staff believes current established District actions and processes meet many of the suggested items in the document. Staff will continue to work with customers who are past due to obtain payments based on the customer’s ability to pay, and to make payment arrangements. Summary Temporarily waiving late fees, suspending Urgent Notices and suspending disconnects will give customers who are already highly anxious and economically impacted by the COVID 19 situation some assurance that they are not at risk of being disconnected for non-payment, and that they are not being penalized if their account becomes past due.

66

Fiscal Impact Suspending Urgent Notices and Disconnects may result in a delay in the collection of accounts receivable and potentially, could result in an increase in write-offs. The suspension of late fees will cause the District to forego revenue. Average monthly late fees assessed during the months of March through July is approximately $11,000.

67

PROCLAMATION BY THE GOVERNOR

AMENDING AND EXTENDING EMERGENCY

PROCLAMATIONS 20-05 and 20-23, et seq.,

20-23.6

Ratepayer Assistance and Preservation of Essential Services

WHEREAS, on February 29, 2020, I issued Proclamation 20-05, proclaiming a State of

Emergency for all counties throughout Washington State of as a result of the coronavirus disease

2019 (COVID-19) outbreak in the United States and confirmed person-to-person spread of

COVID-19 in Washington State; and

WHEREAS, as a result of the continued worldwide spread of COVID-19, its significant

progression in Washington State, and the high risk it poses to our most vulnerable populations, I

have subsequently issued amendatory Proclamations 20-06 through 20-53 and 20-55 through

20-61 exercising my emergency powers under RCW 43.06.220 by prohibiting certain activities

and waiving and suspending specified laws and regulations; and

WHEREAS, the COVID-19 disease, caused by a virus that spreads easily from person to person

which may result in serious illness or death and has been classified by the World Health

Organization as a worldwide pandemic, has broadly spread throughout Washington State,

significantly increasing the threat of serious associated health risks statewide; and

WHEREAS, the COVID-19 pandemic has caused a global economic slowdown and an

economic downturn in Washington State, resulting in layoffs and reduced work hours for a

significant percentage of our workforce and significant reductions in business activity impacting

our commercial sectors that support our state’s economic vitality, including severe impacts to the

large number of small businesses that make Washington State’s economy thrive; and

WHEREAS, the available financial resources of many of our people and businesses are

becoming limited with many of them suffering considerable economic hardship as a result of the

economic impacts of the COVID-19 pandemic on our economy, resulting in a significant threat

of utility services being disconnected and late payment fees being imposed; and

WHEREAS, maintaining provision of utility services during this crisis is an essential tool in

sustaining and protecting the health and welfare of our people and businesses as a critical part of

the overall response to the COVID-19 pandemic; and

68

WHEREAS, the Washington State Utilities and Transportation Commission regulates the rates

and services of investor-owned utilities in Washington State and is coordinating with utilities

throughout the State to protect the availability and affordability of essential utility services for

those economically impacted by the COVID-19 pandemic through a variety of measures,

including: suspending disconnection of utilities for nonpayment, waiving late fees, working with

affected utility customers to establish payment arrangements, and improving access to energy

assistance for affected customers; and

WHEREAS, on March 18, 2020, I issued Proclamation 20-23, waiving and suspending statutes

and prohibiting certain activities relating to utility services; and

WHEREAS, on March 24, 2020, I issued Proclamation 20-23.1, amending and continuing the

waivers and suspension of statutes and the prohibitions of certain activities relating to utility

services; and

WHEREAS, on April 15, 2020, under the provisions of RCW 43.06.220(4), the statutory

waivers and suspensions in Proclamations 20-23 et seq., were extended by the leadership of the

Washington State Senate and House of Representatives until the termination of the COVID-19

State of Emergency or May 4, 2020, whichever occurs first, and which I acknowledged and

similarly extended the prohibitions therein to until the termination of the COVID-19 State of

Emergency or May 4, 2020, in Proclamation 20-23.2; and

WHEREAS, on May 4, 2020, under the provisions of RCW 43.06.220(4), the statutory waivers

and suspensions of Proclamation 20-23 et seq., were again extended by the leadership of the


State of Emergency or May 31, 2020, whichever occurs first, and which I acknowledged and


Emergency or May 31, 2020, in Proclamation 20-23.3; and

WHEREAS, on May 29, 2020, under the provisions of RCW 43.06.220(4), the statutory waivers



State of Emergency or June 17, 2020, whichever occurs first, and which I acknowledged and


Emergency or June 17, 2020, in Proclamation 20-23.4; and

WHEREAS, on June 17, 2020, under the provisions of RCW 43.06.220(4), the statutory waivers



State of Emergency or July 1, 2020, whichever occurs first, and which I acknowledged and


Emergency or July 1, 2020, in Proclamation 20-23.5; and

69

WHEREAS, on July 1, 2020, under the provisions of RCW 43.06.220(4), the statutory waivers



State of Emergency or August 1, 2020, whichever occurs first; and

WHEREAS, to fully extend Proclamations 20-23, et seq., it is also necessary for me to extend

the prohibitions therein; and

WHEREAS, the worldwide COVID-19 pandemic and its progression throughout Washington

State continues to threaten the life and health of our people as well as the economy of

Washington State, and remains a public disaster affecting life, health, property or the public

peace; and

WHEREAS, the Washington State Department of Health continues to maintain a Public Health

Incident Management Team in coordination with the State Emergency Operations Center and

other supporting state agencies to manage the public health aspects of the incident; and

WHEREAS, the Washington State Military Department Emergency Management Division,

through the State Emergency Operations Center, continues coordinating resources across state

government to support the Washington State Department of Health and local health officials in

alleviating the impacts to people, property, and infrastructure, and continues coordinating with

the Department of Health in assessing the impacts and long-term effects of the incident on

Washington State and its people.

NOW, THEREFORE, I, Jay Inslee, Governor of the state of Washington, as a result of the

above-noted situation, and under Chapters 38.08, 38.52 and 43.06 RCW, do hereby proclaim that

a State of Emergency continues to exist in all counties of Washington State, that Proclamation

20-05 and all amendments thereto remain in effect, and that Proclamations 20-05, 20-23, et seq.,

are amended to (1) recognize the extension of statutory waivers and suspensions therein by the

leadership of the Washington State Senate and House of Representatives until the termination of

the COVID-19 State of Emergency or 11:59 p.m. on August 1, 2020, whichever occurs first, and

(2) similarly extend the prohibitions therein until termination of the COVID-19 State of

Emergency or 11:59 p.m. on August 1, 2020.

I again direct that the plans and procedures of the Washington State Comprehensive Emergency

Management Plan be implemented throughout state government. State agencies and departments

are directed to continue utilizing state resources and doing everything reasonably possible to

support implementation of the Washington State Comprehensive Emergency Management Plan

and to assist affected political subdivisions in an effort to respond to and recover from the

COVID-19 pandemic.

I continue to order into active state service the organized militia of Washington State to include

the National Guard and the State Guard, or such part thereof as may be necessary in the opinion

of The Adjutant General to address the circumstances described above, to perform such duties as

directed by competent authority of the Washington State Military Department in addressing the

outbreak. Additionally, I continue to direct the Washington State Department of Health, the

70

Washington State Military Department Emergency Management Division, and other agencies to

identify and provide appropriate personnel for conducting necessary and ongoing incident related

assessments.

FURTHERMORE, as a condition of the prohibitions under this proclamation, as amended, I

require all utilities providing energy, telecommunications, and water services in Washington

State to develop COVID-19 Customer Support Programs, consistent with the attached guidance

document. The programs must be reviewed and posted prominently on a public website by

August 1, 2020.

ADDITIONALLY, the prohibitions on disconnecting, refusing to reconnect, and charging late

fees in this proclamation, as amended, are extended until termination of the COVID-19 State of

Emergency or 11:59 p.m. on August 1, 2020.

Violators of this order may be subject to criminal penalties pursuant to RCW 43.06.220(5).

Signed and sealed with the official seal of the state of Washington on this 2nd day of July, A.D.,

Two Thousand and Twenty at Olympia, Washington.

By:

/s/

Jay Inslee, Governor

BY THE GOVERNOR:

/s/

Secretary of State

71

https://www.governor.wa.gov/sites/default/files/COVID19%20Utility%20Customer%20Support%20Guidance.pdf

COVID-19 Utility Customer Support

Program Guidance All utilities have a general obligation to provide safe, reliable, and affordable essential services to their customers. On April 20th, Governor Inslee announced Washington’s Recovery Plan, which includes ensuring access to essential services during the state’s recovery from the COVID-19 pandemic. On May 1, Governor Inslee announced the “Safe Start” approach for Washington state to begin reopening some businesses safely and continue essential businesses. On July 2nd, Governor Inslee issued Proclamation 20-23.6, extending, and amending Proclamation 20-23, pertaining to Utility Ratepayer Assistance and Preservation of Essential Services through August 1st, 2020. Proclamation 20-23.6 extended prohibitions on utilities disconnecting service, refusing to reconnect service, and charging late fees.

This document provides a framework for ensuring that customers experiencing economic hardship as a direct result of the COVID-19 pandemic maintain access to essential services after Proclamation 20-23.6 expires; by adopting consumer protections, customer support programs, and notification protocols, and participating in public information requests. This guidance applies to residential energy, water, and landline telephone services.

This guidance does not relieve customers from the obligation to pay for utility services.

General Guidance for all Utilities

Beginning immediately, utilities covered by the guidance should review existing policies concerning disconnection of service, reconnection of service, payment arrangements, and suspension of other fees or charges, and update those policies as appropriate and necessary to assist vulnerable individuals and households to maintain essential services during the economic recovery.

The public should have access to reliable and accurate information about assistance that may be available from their utilities and their local community to help them recover from the economic impacts of COVID-19. Utilities are trusted sources of information and assistance; their communications with customers are essential to this effort. Customers who are having trouble paying their bill should first contact their utility. Utilities should proactively reach out to customers with accounts in arears to encourage customers to enter into payment arrangements.

COVID-19 Consumer Protections:

Many utilities have existing consumer protection policies in place, and have adopted additional protections to keep customers connected to essential services during the COVID-19 pandemic. In order to assist vulnerable individuals and households with maintaining access to essential services during the economic recovery, energy utilities should consider, at a minimum, the following consumer protections:

1. Prohibit disconnections for low-income and vulnerable households through a date certain;

72

https://www.governor.wa.gov/sites/default/files/Washington%27s%20Recovery%20Plan%20.pdf

https://www.governor.wa.gov/sites/default/files/SafeStartWA_4May20_1pm.pdf

2. Waive fees associated with late payments, disconnection, and reconnection of service; and

3. Establish protections for customers under any pre-paid meter plans to ensure continued provision of essential services.

COVID-19 Customer Support Program Principles:

Each utility providing residential energy, water, or telecommunications services will offer COVID-19 Customer Support programs. These programs may include existing services provided to customers experiencing economic hardship and/or additional programs created for the purpose of supporting those directly affected by COVID-19.

The COVID-19 customer support programs should follow these principles:

1. All programs must be reviewed subject to a public process, or approval by the governing body of the utility, consistent with the utility’s standard practice, and prominently posted on a public website, if available. Utilities should also notify customers of their COVID-19 Customer Support Programs in a bill insert, mailing, or other appropriate method of communication.

2. Utility programs should encourage customers with arrearages to contact the utility to help coordinate assistance programs and make efforts to contact these customers directly by phone, email, door tags or premise visits, if necessary. Contact information should be provided on all customer bills and notifications.

3. Utility programs should be designed to ensure that customers maintain access to essential services during the economic recovery from the COVID-19 pandemic.

4. Utilities should take active steps to review current customer assistance programs, and modify them, as appropriate, to address the needs of all customers.

5. Utilities should offer long-term payment arrangements for those directly affected by COVID-19 to allow customers to recover successfully from the unexpected economic impacts of the pandemic. Six to eighteen months, or longer may be appropriate, considering each customer’s unique circumstances.

6. Utilities should work with state and local agencies to help identify customers experiencing economic hardship as a direct result of the COVID-19 pandemic, and help those customers gain access to bill assistance.

Additional customer support efforts and outreach are encouraged and are not limited based on these set of recommendations. The UTC, for utilities under its jurisdiction, and local governing boards of consumer owned utilities are encouraged to adopt policies and procedures focused on the unique needs of their consumers.

73

Guidance for Energy Utilities

The following guidance applies to energy utilities providing electric or natural gas service, including municipal utilities and public utility districts authorized under Title 35 RCW and Title 54 RCW; cooperatives formed under Chapter 23.86 RCW; and electrical and natural gas, companies regulated by the Utilities and Transportation Commission under Title 80 RCW.

Energy Utility COVID-19 Customer Notification and Public Information Guidance:

The following guidance is meant to ensure that the information provided to utility customers and the public is timely and accurate:

1. Utilities should develop outreach and communications plans to provide information to customers about options for bill payment assistance and payment plans. This may include communications via website, bill inserts, and direct telephone and email communications initiated by the utility and/or customer. Where needed, information should be provided in languages other than English.

2. The Utilities and Transportation Commission will serve as the single point of contact within state government for customers seeking energy bill assistance information: Utilities and Transportation Commission Consumer Hotline: 1-888-333-WUTC (9882) or [email protected]. The Utilities and Transportation Commission will develop and implement a communications plan, and provide materials to all utilities for use in their own communications materials.

3. All COVID-19 Energy Utility Customer Support Programs should be posted on the Department of Commerce’s Electric and Natural Gas Rate Payer Assistance Resource. If a utility does not have a website, a copy of the customer support programs or the information to direct customers shall be provided.

Energy Utility Information Requests:

Each energy utility should respond to the Department of Commerce’s Utility Economic Impact and Infrastructure Needs Survey, and any subsequent updates. Subsequent updates may include information on customer assistance programs, as requested by the Department of Commerce.

Each utility should provide requested information to the Department of Commerce for consumer-owned utilities, and the Utilities and Transportation Commission for electric and natural gas companies to help the state assess the impacts of the COVID-19 pandemic on utilities and their customers. This information can be provided in response to the Department of Commerce’s Electric and Natural Gas Sector Economic Impact Survey, or regular reporting updates, as determined by the Department and the Commission. Information requests may include:

• Retail load, by customer class

• Number of arrearages, by customer class, over each specified time-period: 30 day, 60 day, 90+ day arrears

74

mailto:[email protected]

https://www.commerce.wa.gov/growing-the-economy/energy/electric-and-natural-gas-rate-payer-assistance-resources/

• Total amount of past due receivable, by customer class, over each specified time-period: 30 day, 60 day, 90+ day arrears

• Number of customers eligible for disconnection

• Number of disconnections, by customer class

• Number of reconnections after disconnection, by customer class

• Average duration of disconnection, by customer class

• Number and duration of completed deferred payment plans,

• Number of premises enrolled in a bill assistance program

• Number of customers in the 30, 60, and 90 day who have received bill payment assistance in the last 12 months, and last 24 months

• Expenditures for the following programs:

o COVID related-emergency assistance funds

o Low-income bill assistance

o Low-income or other rate discount programs

Guidance for Water Utilities

The following guidance applies to community water systems, including municipal utilities, public utility districts, and water and sewer districts authorized under Title 35 RCW, Title 54 RCW, and Title 57 RCW; water companies regulated by the Utilities and Transportation Commission under Title 80 RCW; and mutual corporations or associations formed under Chapter 24.06 RCW.

Water Utility COVID-19 Customer Support Programs:

Community water systems have a multitude of customer assistance programs already established, many smaller systems may have more informal programs that help their neighbors. And others may still need to create or update their program. Currently the most readily available option for water utilities is to offer payment plans that allow the utility and the customer to reach an agreement on a reduced payment amount.

Because of the severity of the COVID-19 pandemic and economic crisis, community water systems with more than 1,000 customers should establish at a minimum Customer Assistance programs that ensure customers impacted by experiencing hardship due to the COVID-19 pandemic maintain access to essential services after Proclamation 20-23 expires. Options to consider for a customer assistance plan include, but are not limited to:

1. Bill arrearage forgiveness; or

2. Payment plan where shut offs do not occur if the customer consistently pays an agreed to amount of their arrearages accrued monthly; or

3. Provide a combination of the above.

75

Water Utility COVID-19 Customer Notification Guidance:

The public should have access to reliable and accurate information about assistance that may be available from their utilities and their local community to help them recover from the economic impacts of COVID-19. Utilities are trusted sources of information and assistance; their communications with customers are essential to this effort.

1. Water systems should inform customers about their customer assistance programs and how to receive assistance. Customers with accounts in arrears should be contacted directly. All customers should be notified of available assistance programs by one of the following methods:

• Notify all customers that a customer assistance program is available and provide a direct URL for the customer assistance program web page (if one exists) either by mail or email.

• Direct email providing a copy of customer assistance options.

• Electronic or hard copy customer bills and notifications.

• Hard copy special announcement delivered through the U.S. Mail.

4. The Department of Health will serve as the single point of contact within state government for information sharing, guidance, and technical assistance for community water systems and their customers. The Department will:

a. review sample policies, and customer assistance programs, and develop templates, and best practices;

b. Create and post guidance and frequently asked questions documents for water utility customers; and

c. Continue to provide email updates to community water systems during the COVID crisis.

To contact the Department of Health for technical assistance or concerns on customer assistance programs:

Phone: (360) 236-3100

Water Utility Information Requests:

Each community water system should respond to the Department of Health’s Utility Economic Impact and Infrastructure Needs Survey, and any subsequent updates. Subsequent updates may include information on customer assistance programs, as requested by the Department of Health.

Guidance for Telecommunications Companies

The following guidance applies to telecommunications companies and services regulated by the Utilities and Transportation Commission under Title 80 RCW.

76

Telecommunications Company COVID-19 Customer Notification and Public Information Guidance:

The public should have access to reliable and accurate information about assistance that may be available from their utilities and their local community to help them recover from the economic impacts of COVID-19. Utilities are trusted sources of information and assistance; their communications with customers are essential to this effort. For all telecommunications companies with more than 1,000 customers:

1. Telecommunications companies should develop outreach and communications plans to provide information to customers about options for bill payment assistance and payment plans. This may include communications via website, bill inserts, and direct telephone and email communications initiated by the utility and/or customer. Where needed, information should be provided in languages other than English.

2. The Utilities and Transportation Commission will serve as the single point of contact within state government for customers seeking energy bill assistance information: Utilities and Transportation Commission Consumer Hotline: 1-888-333-WUTC (9882) or [email protected].

3. All COVID-19 Utility Customer Support Programs should be posted on a publically accessible website.

Telecommunications Company Information Requests:

The Utilities and Transportation Commission has authority to request information from telecommunications companies pertinent to implementation of this guidance.

Questions?

General questions about how to comply with the guidance can be submitted to the state’s Business Response Center at: https://coronavirus.wa.gov/how-you-can-help/covid-19-business-and-worker-inquiries

All other violations related to Proclamation 20-25 can be submitted at https://bit.ly/covid-compliance

77

mailto:[email protected]

https://coronavirus.wa.gov/how-you-can-help/covid-19-business-and-worker-inquiries

https://coronavirus.wa.gov/how-you-can-help/covid-19-business-and-worker-inquiries

https://bit.ly/covid-compliance

https://bit.ly/covid-compliance

X Business Agenda

Second Reading

Consent Agenda


X Info Only


Subject: Broadband Business Update

Agenda Item No:


Presented by: Rich Nall (NoaNet) Staff Presenting Item

Approved by (dept): Chris Folta Director/Manager



Motion for Commission Consideration: None. Recommendation/Background Recommend that a presentation be shared with the Commission to review the Broadband Business year-to-date financial and Line Extension Credit performance along with a status on the recently approved advanced wireless/small cell project. Summary None. Fiscal Impact None.

7b

78

BROADBAND BUSINESS UPDATE

COMMISSION PRESENTATION

JULY 14, 2020

79

AGENDA

❖ Broadband Business Performance 2020

❖Resolution 2432

❖Current State 2020

❖Quotes and Service Orders

❖Financials

❖Proforma

❖Line Extension Credit (LEC) Performance

❖ USC CRAN – Small Cell Project

❖NoaNet Update

80

RESOLUTION 2432: BROADBAND STRATEGY

• Continue to account for broadband financial activities

within the Electric System Fund; comply with Washington

State Auditor

• Wholesale rates to retail service providers will be based on

competitive pricing principles; financial planning to

maintain net positive cash flows over rolling five-year

period, both looking back and forward

• NoaNet will continue to provide management of

broadband business through Network Coordinated Services

• District will remain an active owner/member of NoaNet

and to provide periodic updates to the Commission

81

CURRENT STATE 2020

• COVID 19

– Impact has been minimal so far for existing customers

– Best 1st and 2nd quarters to date

• Partnerships & Strategic Agreements

– Working with Ziply on teaming agreement for FTTH

– New MSA internet customers

– CoLo opportunity for DOE

– Small Cell opportunities with other carriers

• New Rates

– Still evaluating small business Access Internet rates and LEC

– Increase in bandwidth for Access Internet customers

82

QUOTES AND SERVICE ORDERS COMPARISON

• 2018 Quotes: 257

• 2018 SO Access Internet: 68

• 2018 SO Other: 19

• 2019 Quotes Total: 191

• 2019 SO Access Internet: 72

• 2019 SO Other: 22

• 2020* Quotes Total: 106

• 2020* SO Access Internet: 44

• 2020* SO Other: 17

*Year through July 6, 2020th

94

87

61

83

BROADBAND BUSINESS PROFORMA

BENTON PUD PRO FORMA

LINE ITEM DESCRIPTION YTD (May) 2020 2021 2022 2023

Revenues

Transport, Wireless, Dark Fiber Revenues $1,005,111 $2,338,253 $2,373,327 $2,610,993 $2,650,158

Access Internet Revenue $134,731 $300,000 $349,000 $409,000 $419,000

USC CRAN $199,080

Total Revenues$1,139,842 $2,638,253 $2,921,407 $3,019,993 $3,069,158

Operating Expenses

NoaNet NCS$(702,831) $(778,263) $(804,526) $(817,624)

Fiber Leases, Maintenance, District Labor$(368,462) $(375,832) $(383,348) $(391,015)

O&M Direct Costs$(460,692) $(1,071,293) $(1,154,094) $(1,187,874) $(1,208,639)

Capital Expenditures

Aid to Construction$59,769 $73,500

Capital (LEC's, Laterals, Electronics)$(370,041) $(1,562,500) $(1,092,649) $(1,072,468) $(1,050,468)

USC CRAN$(410,000) $(410,000)

Total Capital$(310,272) $(1,899,000) $(1,502,649) $(1,072,468) $(1,050,468)

Total O&M and Capital$(770,964) $(2,970,293) $(2,656,743) $(2,260,342) $(2,259,107)

Net Cash To/From Broadband$368,878 $(258,540) $264,663 $759,651 $810,051

84

LINE EXTENSION CREDIT PERFORMANCE: 2020

LEC 1 2020 YTD

Fiber Customers Average Fiber Build Costs Net Capital Average Fiber Revenue Monthly Revenue

27 $4,625 $124,865 $305 $8,230

LEC 2 2020 YTD


21 $5,802 $121,848 $104 $2,190

On-Net 2020 YTD

Fiber Customers Average Fiber Build Costs Capital Average Fiber Revenue Monthly Revenue

13 $0 $0 $117 $1,515

Combined New Builds & On-Net 2020 YTD


61 $4,044 $246,713 $196 $11,935

2020 YTD LEC Totals

LEC 1 LEC 2 Lateral AtoC Net Construction Capital

$210,196 $159,948 $16,009 $123,431 $262,722

85

USC CRAN UPDATE

• Permitting

– Small Cell Franchises submitted

– Joint Use Agreements under review

– Site drawings for CRANs in process

• Hub Entrance Fiber

– Construction of entrance fiber for all 7 Hub locations in

progress

• Capital

– Projecting only 50% of capital for 2020 to be spent ~$410K

– All new revenues to be recognized in 2021

86

NOANET UPDATE

• Core Network Upgrade

– Member Loan provided capital financing

• Banking Relationship

• Pension Funding

• State Wi-Fi Support & Leadership

87

Questions?

88

Business Agenda

Second Reading

Consent Agenda


X Info Only


Subject: Benton PUD 2020 Integrated Resource Plan Update

Agenda Item No:


Presented by: Kevin White /s/ Kevin White Staff Presenting Item

Approved by (dept): Kevin White /s/ Kevin White Director/Manager



Motion for Commission Consideration

None Background

Chapter 19.280 RCW requires utilities to develop an Integrated Resource Plan (IRP) every four years beginning September 1, 2008. Progress reports reflecting changing conditions must be submitted at a minimum interval of two years. The Clean Energy Transformation Act (CETA) legislation passed in 2019 includes additional IRP requirements. Staff from the District and The Energy Authority (TEA) are working to develop the updated IRP for the 2021 - 2030 time period. A copy of the IRP must be submitted to the Department of Commerce by September 1, 2020. Summary

Staff will provide an update on the 2020 IRP. A resolution to adopt the final 2020 IRP will be brought to Commission in August 2020. Fiscal Impact

The 2020 IRP cost estimate of $73,000 is included in the $175,000 2020 budget for Activity 2 TEA Consulting Task Order.

7c

89

2020 Integrated Resource Plan Update1

Commission Presentation – July 14, 2020

Your Trusted Energy Partner90

2020 Integrated Resource Plan Update – July 14, 2020

2020 IRP Schedule2

Janu

ary

Febru

ary

Marc

h

Ap

ril

May

June

July

Aug

ust

Septe

mber

TEA Analysis: Capacity Expansion Model, Aurora Pricing Model, Stochastic Cost Model, and Resource Portfolio Analysis

Commission UpdateJune 9

Commission Updates

July 14 & 28

Public Hearing & Commission

AdoptionAugust 11

IRP Filing Due September 1

Draft IRP prepared and reviewed by TEA /

District Staff

Final IRP prepared and reviewed with

Commission

91


Sun 7 65 44 -2 -16 -34 35 48 -2 107 76 53 116 91 47 64 34 65 65 55 32 -4 -49 16 -32 27 -47 -108 -38 -48 -92 -88 -38 -42 21 -39 -18 -32 -23 16 7 25 -26 8 57 -30 47 -39 31 20 83 68

Mon -18 72 4 -13 -25 -49 39 -23 -19 94 63 28 57 43 3 13 40 45 3 9 6 -58 -60 23 -85 -43 -98 -133 -71 -131 -157 -123 -98 -68 -36 -88 -41 -44 -10 -50 -28 -21 -6 38 44 -76 24 -43 34 27 101 37

Tue -4 51 7 -6 -61 -12 48 -8 48 53 32 33 58 43 16 26 9 43 -16 -25 -14 -35 -50 40 -74 -84 -124 -134 -63 -126 -126 -123 -89 -74 -73 -94 -39 -35 -19 -60 -18 -3 15 65 -34 -68 51 -49 45 27 99 -11

Wed -19 25 21 -1 2 -99 15 47 -22 80 32 26 43 78 47 26 34 -14 38 -42 -36 -14 -49 -68 -15 -43 -59 -125 -139 -66 -122 -103 -69 -59 -96 -21 -40 -22 -17 -20 -40 -15 11 24 34 -25 -57 42 -21 52 40 98 -27

Thu -2 35 13 -22 6 -123 44 19 -12 76 45 38 39 63 28 56 65 -13 39 -59 -62 -8 -46 -32 -45 1 5 -102 -120 -29 -110 -106 -13 -30 -64 -34 -45 -55 -13 -22 -52 30 16 22 43 -40 -19 87 2 67 31 86

Fri 47 63 9 11 8 -95 37 30 6 94 98 13 42 59 36 47 58 -14 69 -27 -9 -24 -38 15 -17 7 -6 -106 -96 -54 -141 -75 -1 -59 -43 -95 -56 -65 -43 -8 -47 1 27 -1 39 -18 -15 97 5 66 69 42

Sat 21 61 -8 11 -36 -53 49 55 -28 85 87 7 106 59 55 18 60 34 80 25 16 -46 -38 0 -17 45 -48 -110 -73 -38 -68 -69 -14 -19 28 -20 -45 -54 0 -5 -28 5 -6 47 50 -47 24 -2 60 46 71 76

Sun 31 91 118 67 72 119 108 91 68 72 61 95 110 29 36 -29 -31 -5 -61 47 -35 -91 -155 -139 -112 -191 -117 -84 -126 -25 -103 -36 -23 9 43 20 -55 -30 29 17 -6 11 15 53 47 17 -22 -37 42 66 0 2

Mon 117 58 100 72 52 104 85 29 46 34 75 60 44 42 -29 -37 -29 -49 -53 -22 -43 -58 -174 -127 -136 -176 -121 -94 -112 -42 -94 -73 -53 -38 -17 15 -6 -52 -17 -13 -37 -9 4 25 29 -23 -10 -46 3 41 8 33

Tue 82 54 72 57 60 122 49 41 50 66 72 65 62 37 -12 -32 -57 -48 -24 -45 -56 -46 -172 -144 -146 -166 -157 -95 -98 -74 -98 -105 -71 -48 -41 -43 26 -26 -13 -35 -43 -6 -5 13 9 56 6 -25 78 27 55 30

Wed 45 61 55 59 77 96 53 55 12 69 61 57 78 25 -30 6 -39 13 7 -46 -75 -87 -174 -143 -117 -148 -154 -98 -74 -89 -70 -129 -80 -71 -9 -58 8 -16 -9 4 -13 -25 -18 -5 28 17 14 0 82 40 30 21

Thu 32 48 76 66 81 84 107 78 86 37 41 52 63 77 25 -28 6 -53 -40 85 -71 -123 -83 -154 -127 -174 -156 -173 -88 -65 -105 -71 -123 -48 -77 -38 -60 -10 9 -25 -16 -16 -27 14 14 21 30 -7 -6 74 11 8 -35

Fri 28 73 81 68 65 93 97 79 103 46 51 72 80 33 32 -22 13 -28 -55 42 -41 -127 -112 -121 -117 -177 -143 -127 -134 -70 -109 -98 -21 -19 -7 11 -47 -32 -41 -46 -16 3 -19 3 8 68 -30 -24 38 66 32 11

Sat 28 81 77 68 113 129 113 116 70 93 74 76 107 57 -3 -7 -21 11 -53 36 -35 -101 -142 -97 -129 -170 -128 -54 -108 -9 -127 -77 -37 -28 15 -2 -69 -41 -13 -8 -67 -17 -9 25 52 46 -8 -71 38 75 22 -38

Sun -11 25 42 8 69 22 68 73 88 101 96 108 64 59 25 52 63 37 45 87 46 -24 -115 -31 11 -63 -32 35 -41 -64 -57 -38 -91 -63 -33 -25 -32 -6 12 -27 0 57 50 64 74 78 51 64 51 -9 -52 17

Mon -18 14 48 26 30 3 124 23 63 93 19 82 39 63 32 10 61 -18 34 59 10 -56 -152 -7 -72 -120 -19 -4 -33 -103 -99 -52 -112 -68 -67 -69 -38 -10 -38 -16 37 1 47 -5 66 75 24 55 -3 -4 -46 36

Tue 5 13 40 50 13 2 105 27 54 64 57 55 14 41 47 7 11 -46 15 -23 -41 -93 -149 14 -63 -135 -38 -42 -23 -106 -56 -40 -109 -73 -36 7 -16 -9 -40 4 16 48 15 66 54 64 6 8 -8 -30 53 47

Wed 8 -29 42 80 9 18 52 49 56 85 42 60 -2 40 57 -8 28 -25 -17 -41 -36 -38 -59 -7 -84 -140 -43 -63 -54 -117 -89 -62 -123 -89 -50 -30 -3 13 -38 -6 -2 23 -5 43 50 56 45 45 -9 -53 24 55

Thu 42 22 58 71 36 52 93 36 58 99 57 80 30 33 64 17 20 33 -42 -8 12 -18 -30 0 -36 -123 -33 -72 -96 -126 -100 -83 -125 -80 -53 -44 -4 9 -48 -38 14 41 49 41 65 37 75 56 -36 -29 -4 13

Fri -32 41 46 32 71 34 59 94 51 57 71 22 64 69 17 60 43 55 21 -44 21 -5 -73 1 -6 -13 -49 0 -60 -49 -134 -114 -89 -71 -85 -26 -28 -15 3 5 6 64 35 31 48 79 19 77 33 -2 -37 11 43

Sat -66 27 46 12 37 -2 84 107 100 93 102 68 78 56 25 56 60 38 -5 48 42 -11 -82 0 -5 -28 -39 17 -43 -42 -82 -72 -88 -71 -71 -14 -57 -15 16 8 -8 0 42 36 53 72 56 61 70 1 -82 29 28

Sun 24 -16 -34 30 17 -2 7 61 61 70 108 74 102 113 69 83 91 69 86 86 -12 -48 29 26 -13 -70 -43 -56 -43 -98 -109 -88 -32 -16 -57 -49 10 1 30 -8 47 -9 23 7 -3 42 20 45 38 38 39 -21 -6

Mon -41 1 -52 3 -13 7 -51 56 40 31 78 41 72 61 60 87 76 72 47 48 -64 -69 -29 31 -76 -108 -60 -71 -59 -92 -99 -116 -42 -75 -105 -67 -43 3 -3 13 -3 -21 6 -2 3 7 43 -23 7 14 66 -49

Tue -20 -20 -59 20 13 -34 -45 49 35 45 76 56 66 40 25 85 69 62 32 64 -90 -95 -76 38 -85 -60 -45 -64 -89 -102 -138 -112 -45 -96 -103 -81 -54 -16 12 20 -8 -30 16 -44 -72 36 32 37 -11 19 26 23

Wed -54 -21 -10 9 -75 -31 -23 37 43 39 91 49 65 77 67 65 64 31 12 63 -9 -31 -73 15 -52 -49 -107 -81 -76 -114 -120 -114 -65 -80 -83 -33 -15 32 3 20 17 4 12 15 15 48 26 48 4 11 42 6

Thu -103 -82 29 9 -45 -26 10 -11 54 51 68 55 62 85 63 56 55 -11 56 42 2 19 48 22 -73 -65 -112 -68 -25 -89 -132 -123 -67 -53 -76 -17 -2 41 11 11 9 -9 27 -1 31 32 67 34 12 23 7 27

Fri -90 -102 16 17 -35 31 35 19 63 87 51 81 54 82 64 58 46 93 63 6 -30 -30 45 34 -50 -86 -128 -96 -69 -118 -134 -111 -81 -47 -68 -31 -1 32 16 -6 15 28 19 -18 30 48 60 55 27 34 4 23

Sat -97 -44 30 37 -6 55 68 22 82 93 111 110 106 88 64 94 80 103 93 15 -45 -39 47 19 -40 -53 -86 -70 -87 -80 -98 -91 -36 -52 -84 -12 -14 11 -3 -17 13 -4 -29 -7 45 51 7 16 -20 7 21 -2

Sun 47 67 109 105 126 62 68 78 50 80 69 88 43 68 108 78 66 85 50 3 9 -1 52 2 -65 -16 -40 -79 -69 -111 -115 -46 -20 53 -35 -35 1 25 10 -30 22 -3 24 43 2 4 15 33 -38 6 -8 36

Mon 10 35 61 77 84 58 39 29 29 27 28 56 45 37 68 70 32 39 11 -40 -54 -46 -6 -15 -14 -43 -4 -89 -129 -102 -107 -105 -70 -24 35 -1 -31 -7 16 -8 -30 8 12 -7 47 -38 -25 -6 0 -14 58 -2 -11

Tue 17 56 60 64 95 72 4 -19 22 -1 60 23 46 -8 61 51 26 52 5 -36 -81 -35 -18 -17 -56 -34 -22 -36 -120 -105 -106 -110 -59 -46 -9 -45 -15 2 -11 -25 28 -17 28 -10 64 -8 -26 31 11 0 58 33

Wed 32 52 73 109 68 88 41 -9 65 7 68 46 48 37 44 36 23 30 76 17 -74 -23 -32 -5 -86 -42 -11 -85 -109 -110 -154 -106 -60 -42 -33 -34 -17 -8 -3 -15 8 -5 21 14 37 1 -36 36 0 61 58 15

Thu 19 66 82 77 66 70 36 -17 59 41 45 46 43 63 53 56 25 20 80 1 -59 18 -6 -37 -66 -37 -99 -106 -71 -115 -92 -126 -100 -39 -28 -68 -29 -6 -29 -26 -22 -22 10 56 8 -9 15 12 -26 58 53 -8

Fri 39 60 75 72 88 85 61 -29 52 54 40 37 79 62 67 63 7 30 101 17 -25 54 -11 -73 -48 -54 -73 -112 -61 -83 -79 -103 -47 -7 -12 -60 -3 -9 -28 -31 24 1 41 58 -9 37 40 27 -6 35 49 -19

Sat 29 101 101 126 112 77 104 73 5 55 69 89 58 94 58 56 45 58 89 4 8 7 51 8 -23 -58 -25 -136 -61 -105 -81 -106 -62 13 -57 -68 7 -20 -30 -12 9 -17 21 79 17 23 32 45 -7 60 38 -9

Sun 107 24 25 49 -11 -48 -11 -17 -111 -29 42 35 45 45 62 98 60 37 -15 90 31 -19 -15 -114 17 -79 -4 -17 -44 -33 -88 24 -16 -43 -64 6.9 -18 1.9 21 25 14 -9 3.1 -8 51 42 37 -9 18 -9 66 17

Mon 49 7 54 40 -52 -94 -53 -23 -107 -69 -9 31 81 25 49 73 55 -1 -1 43 23 -57 -87 -125 -53 -67 -39 -56 -88 -94 -135 -41 -83 -51 -53 -4 40 20 17 -47 3.1 25 -50 -19 27 25 35 -17 4.1 -6 13 4.2

Tue 22 23 18 43 14 -32 -25 -105 -61 -107 -12 -14 55 70 45 50 57 54 -13 36 82 -20 -38 -111 -88 -73 9.7 -80 -15 -87 -83 -145 -81 -88 -51 -76 -17 -1 -26 -7 8.7 1.1 12 -22 -32 1 23 -9 -5 -8 -14 12 10

Wed 5 25 32 51 13 -119 0 -47 -40 -34 -3 19 61 44 57 26 57 66 -15 58 62 -17 -44 -131 -49 -54 -28 -76 -20 -44 -73 -136 -72 -40 -68 -53 -26 18 -16 -7 -15 -16 -27 -69 -16 1 33 17 12 0 -27 16

Thu 54 41 32 28 21 -112 -8 -47 -31 -16 -29 19 27 79 83 20 59 52 4.2 104 33 -29 32 -118 -42 5.1 -38 -55 -13 -65 -110 -118 -58 -30 -62 -46 -45 -11 -17 -40 -34 10 -6 -23 -9 15 -20 0.5 13 11 -11 34

Fri 57 59 54 14 6 -40 1 -50 -60 -26 -22 90 61 69 41 27 49 37 -19 65 63 -62 7.6 -90 -24 -18 -72 -79 -29 -78 -87 -58 -34 -25 -57 -64 -71 -5 -0 -2 -34 38 8.9 -24 -19 35 -24 -9 13 36 32 -2

Sat 71 49 36 35 21 -46 -1 -20 -33 -11 -15 51 42 53 79 42 8 22 -34 101 50 -33 -6 -101 -31 -50 -10 -61 -37 -88 -80 -26 -16 -12 -44 -58 -50 15 2.3 53 -2 -11 -13 -26 26 20 -21 -29 38 17 45 38


2019

2014

2015

2016

2017

2018

Focus on Capacity NeedsLong on Energy, Short on Capacity

3

Significant and frequent summer peak hour

deficits and some winter peak hour deficits

200 MW

Deficit

200 MW

Surplus

0

50

100

150

200

250

300

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

aM

W

Critical Water

BPA Block BPA Critical Slice

BPA Above Critical Slice Future BPA Contract

Other Renewables Frederickson

Capacity Contracts Market Purchases

Load w/ Tx Losses

0

50

100

150

200

250

300

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

aM

W

Average Water

Annual Average Energy

Long Under Average Water

92


Modeling Process / Social Cost of Carbon (SCC)4

Capacity Expansion Model Portfolio AnalysisForward Power Price Curve

Development

CETA requirement to include the SCC in the IRP process

Influences the projected resources to be built over the planning horizon

Influences the cost associated with carbon emitting resources

93

Capacity Expansion Model5

94


Market Simulation6

95


Regional Load Forecast

Northwest Power and Conservation Council mid-term assessment load assumptions

utilized in capacity expansion modeling

Forecasted average annual growth rate ≈0.4%

7

96


Social Cost of Carbon (SCC)

Adds ≈$32 per MWh to Natural Gas Resources for

capacity expansion modeling and portfolio analysis

8

97


New Resource / Power Purchase Agreements Costs

Resource Type

Capital Cost

($/KW)

Fixed O&M

($/kW - Year)

Variable

O&M

($/MWh)

Full Load

Heat Rate

(BTU/kWh)

Capacity

Factor Fuel Type

Combustion Turbine - Aeroderivative 1,212$ 16.30$ 4.70$ 9.12 10% Natural Gas

Combined Cycle 1,135$ 14.10$ 2.55$ 6.43 28% Natural Gas

Reciprocating Internal Combustion Engine 1,207$ 35.16$ 5.69$ 8.30 11% Natural Gas

Geothermal 2,734$ 128.54$ 1.16$ N/A 73% Geothermal

Small Modular Reactor - EIA Cost 6,191$ 95.00$ 3.00$ 10.45 90% Uranium

Pumped Storage 2,390$ 24.80$ 0.37$ N/A 37% Various

District Owned Resources

Resource Type PPA Cost

Capacity

Factor Fuel Type

Eastern Montana Wind 27.00$ 37% Wind

Columbia Gorge Wind 35.00$ 32% Wind

Single Axis Tracking Solar Photovoltaic‡ 37.00$ 20% Solar

Solar + Storage 65.00$ Solar

Resources Modeled Per Unit

27%

9

98


Levelized Cost of Energy (LCOE)

CF - 32%

CF - 27%

CF - 27%

CF - 27%

CF - 90%

CF - 37%

CF - 28%

CF - 14%

CF - 83%

CF - 10%

CF - 11%

$- $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 $275

Onshore Wind - Montana

Market Power

BPA Contract

Onshore Wind - Columbia Gorge

Solar

11.6 aMW of Benton Conservation

Solar + Storage

Small Modular Reactor - EIA

Pumped Storage

Combined Cycle 2x1

Battery Storage

Biomass

Combustion Turbine - Aeroderivative

Reciprocating Internal Combustion Engine (RICE)

Subsidized Generator LCOE Tax Credit LCOE Social Cost of Carbon

Incentives reduce the LCOE of certain renewable and non-emitting resources

SCC increases the LCOE for fossil fuel resources; lower capacity

factors due to more renewables built

High capacity factor resource; however, LCOE does not include additional cost of displacing hydro during peak runoff times

CF = Capacity Factor

10

99


Northwest Power Pool Capacity Expansion

Natural Gas resources are added in the NWPP capacity expansion; however, those resources are not

built in WA due to the SCC

11

100


California / Mexico Capacity Expansion

Renewable Portfolio Standards and Energy Storage requirements drive resources in the CA / Mexico capacity expansion; however, some Natural Gas resources are needed

12

101

Stochastic Model13

102


Market Simulation14

103


Natural Gas Price and Slice Generation Forecast

Low natural gas prices are forecasted to continue through the 10-year study period

Significant variability in hydro generation impact the range of power market prices

15

104


Historic Prices

Minimal price volatility between 2011 and 2017; 2014 was the original polar vortex event

More recent volatility due to natural gas constraints and extreme weather

16

105


Mid-C Power Market Price Forecast

On average, forecasted HLH prices remain in the low to mid $30’s

On average, forecasted LLH prices remain in the mid to upper $20’s

17

106


Mid-C HLH/LLH Forecasted Price Spread

Starting to forecast very low to negative price spreads in May due to abundance

of solar, wind, and hydro supply

18

107


Winter/Summer Hourly Mid-C Price Forecast

AugustDecember

Evening ramp as CA / NW solar generation fades

Prices follow the natural winter demand curve

19

108

Next Steps20

109


2020 IRP Schedule21

Janu

ary

Febru

ary

Marc

h

Ap

ril

May

June

July

Aug

ust

Septe

mber

TEA Analysis: Capacity Expansion Model, Aurora Pricing Model, Stochastic Cost Model, and Resource Portfolio Analysis

Commission UpdateJune 9

Commission Updates

July 14 & 28

Public Hearing & Commission

AdoptionAugust 11

IRP Filing Due September 1

Draft IRP prepared and reviewed by TEA /

District Staff

Final IRP prepared and reviewed with

Commission

Capacity and portfolio analysis Proposed IRP adoption

110

X Business Agenda

Second Reading

Consent Agenda


Info Only


Subject: Wind Power and Clean Energy Policy Perspectives Report

Agenda Item No:


Presented by: Rick Dunn Staff Presenting Item

Approved by (dept): N/A Director/Manager



Motion for Commission Consideration:

Motion approving attached report entitled “Wind Power and Clean Energy Policy Perspectives” in substantially the form presented as an authoritative representation of the District’s current position. Recommendation/Background

On November 12, 2019 the District adopted Resolution 2523 in support of actions to ensure electric sector resource adequacy in the Pacific Northwest. This resolution provides a sound argument for why northwest utilities have serious concerns regarding the reliability of the northwest power grid and why Benton PUD questions the wisdom of continued development of wind energy in our region when we are facing potentially serious consequences associated with possible power grid blackouts. Among other things, Resolution 2523 resolved that the Commission and Staff will undertake an effort to heighten the awareness of customers and policy makers as to resource adequacy concerns and environmental and land use impacts associated with high wind and solar project development scenarios. Staff developed the “Wind Power and Clean Energy Policy Perspectives Report” in response to Resolution 2523 and recommends the Commission adopt the report as an authoritative representation of the District’s current position. Summary

Approving the recommended motion will establish a report that can be used by the District in our education and outreach efforts aimed at helping readers understand a complex topic from our perspective and at helping shape energy policies with better outcomes for our customers. Fiscal Impact

N/A

7d

111

Rick Dunn, General Manager

Commissioners: Barry Bush

Jeff Hall Lori Sanders

July 14, 2020

Wind Power and Clean Energy Policy Perspectives

112


Benton PUD - June 2020 Page 1 of 15

Executive Summary

Clean energy technology and public-policy development continue to be in the news and at the forefront of much political debate and discussion. While wind power has emerged as a popular choice for helping meet greenhouse gas emission reduction goals, reasonable questions continue to be raised regarding its ability to cost-effectively contribute to the powering of modern civilization and how the lifecycle environmental and ecological impacts compare to other types of technologies.

With Washington State’s passage of the Clean Energy Transformation Act (CETA) in 2019 and the current schedule for expiration of renewable energy federal tax credits, there is a resurgence in proposed wind power development activity in the Pacific Northwest (PNW), including projects proposed for eastern Washington and Benton County specifically.

As developers and many elected officials tout the economic and environmental benefits of wind farms, Benton PUD believes it is important for our customers and the general public to hear utility perspectives. Unlike the narrower focus of some wind power interests, utilities must balance environmental benefits and concerns with costs and power grid reliability; and we will be held accountable if we fail on any of these dimensions.

While Benton PUD acknowledges wind power development in the PNW will likely continue as Washington State utilities respond to the 2025 CETA deadline for eliminating coal-fired energy and in response to nearby state and corporate clean energy mandates and goals, we do not support further development of wind power in the PNW for the following primary reasons:

1) Benton PUD’s current power supply is hydro and nuclear based and is over 93% “non-

emitting” by Washington State standards. While we are ahead of the clean energy curve,

we do experience supply deficits during hot summer months and deeply cold winter

periods. To cover these deficits, we make power market purchases from generation

resources that can be counted on to run on the days and hours needed (dispatchable).

Since wind power relies on natural weather conditions decoupled from electricity demand,

it is not dispatchable generation and therefore will not help us resolve our seasonal energy

deficit problems.

2) The PNW’s hydroelectric generation resources are the foundation of a reliable and clean

energy supply that has historically resulted in Washington State contributing no more than 0.5% to the nation’s annual total greenhouse gas (GHG) emissions from electricity production; even with soon to be retired coal-fired power plants in the mix. Further development of wind power in the PNW will not result in consequential reductions in national or global GHG emissions attributable to Washington State utilities and will do very little to mitigate the increasing risk of northwest power grid blackouts; which could grow to a 26% probability by 2026 if utilities are unable to replace the reliable generating capacity of shuttered coal plants.

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3) The low availability of wind power requires utilities to continue paying for dispatchable generation capacity that may run infrequently but is still sized to meet most of the peak energy demand on the grid. This “double paying” is why electricity rates in countries and states with high wind penetrations are rising despite the declining costs of this popular renewable energy source. Benton PUD believes further wind power development will unnecessarily contribute to increases in northwest utility retail electricity rates which could erode the economic development advantage low rates has given our region for many years.

4) Energy production from wind farms in the PNW is often high during periods of maximum

hydro generation contributing to energy gluts that can drive short-term market prices to

zero or even to negative values due to federal tax credits received by wind power. To

minimize the net cost of hydro generation the region needs for year-round flexible and

reliable electricity, the value of surplus hydro energy sales needs to be maximized. Building

more wind farms in the PNW will contribute to untimely energy supply gluts and low short-

term market prices which reduces surplus hydro energy sales revenues, increases net hydro

power costs and puts upward pressure on retail rates Benton PUD and other utilities charge

our customers.

5) Benton PUD believes the best long-term, sustainable and environmentally responsible

strategy toward meeting the CETA goal of 100% clean electricity in Washington State by

2045 could be to transition coal power to natural gas and then natural gas to nuclear. It is

estimated wind power requires 30 to 45 times as much land and about 10 times as much

concrete and steel to produce the equivalent power of nuclear. In addition, a recent study

estimates that assuming hydro and nuclear power in the PNW stay in place, meeting a

theoretical 100% clean electricity goal in our region using wind (and solar) power would

require a land area 20 to 100 times the area of Seattle and Portland combined.

6) Benton PUD supports Energy Northwest (EN) in their efforts to develop small modular

reactor (SMR) technology. However, we are concerned continued large-scale investments

in PNW wind power projects will contribute to increases in the normally surplus annual

energy supplies in the region thereby eroding the hourly energy supply opportunities

needed by SMRs to achieve economic feasibility. Maintaining the existing Columbia

Generating Station operations while expanding SMR technology development and possible

manufacturing in the Tri-Cities represent opportunities for economic stability and growth in

an area with a long history of grid-scale energy production and world class scientific

research capabilities.

As some legislators and certain advocacy groups continue to call for more wind power while

simultaneously calling for removal of hydro-electric dams, Benton PUD believes it is important

114



for our customers and citizens of Washington State to hear the utility side of the energy story.

To this end, we are committed to facilitating education and outreach efforts based on the

premise that all energy choices represent economic and environmental tradeoffs and that

consideration of utility business models and the physics of the power grid matter when taking a

position to promote one form of power generation technology over another.

Existing wind farm development in Washington State and along the northern Oregon border

has already resulted in the industrialization of previously scenic hillsides, canyons and desert

vistas in the region in and around Benton County. Before Benton PUD customers and citizens

throughout our region accept further sacrifice of the natural beauty and open spaces that are

part of our way of life, we want them to know there are other options we should be asking our

legislators and utility industry leaders to urgently and seriously consider. This is the reason for

this report and for our formal declaration that Benton PUD does not support further

development of wind power in the PNW.

115



Existing Power Resources and Loads

Despite clean energy policies and trends favoring wind and solar power, continued

development of wind farms in the northwest is not expected to be necessary or beneficial to

serving the interests of Benton PUD customers for at least the next decade or more. This is

primarily due to our hydro and nuclear rich wholesale power supply contract with the

Bonneville Power Administration (BPA) which entitles Benton PUD to annual energy amounts

that are normally greater than what is consumed by our customers. In addition, our BPA

contract in combination with other energy purchases and contracts results in a power supply

that is already over 93% “non-emitting” and clean by Washington State standards.

With this said, it is important to recognize Benton PUD does face significant power supply

challenges under the terms and conditions of our current BPA contract. These challenges are

rooted in the timing of BPA energy delivery which does not always align with our customer

demand for electricity. Benton PUD is a “summer peaking” utility with our highest customer

demand being driven by irrigated-agriculture pumping operations combined with high

residential and business air conditioning; see FIGURE 1.

FIGURE 1

As a “Slice” customer of BPA, Benton PUD has rights to a fixed percentage of the electricity

generated by BPA resources for any given hour of the year which can be highly variable. As BPA

resources are predominantly hydro-electric, the variability is driven by the timing and quantity

116



of runoff from snowpack as well as short term precipitation events which must be managed to

serve interests that compete with power generation; including fish and wildlife, flood control,

river navigation and recreation.

To gain further perspective, it is instructive to know that Benton PUD’s annual allocation of BPA

wholesale energy in typical water years delivers about 225 average megawatts (aMW) which is

more than our total annual customer retail energy consumption forecast beyond the year 2030.

On average, our BPA supply is currently 11 aMW more than our customers consume on an

annual basis. However, while Benton PUD currently has a “long” annual energy supply position,

we do experience regular seasonal energy supply deficits in the summer and on occasion can

come up short during deep cold periods in the winter. These seasonal energy supply shortfalls,

referred to as capacity deficits, are a function of Benton PUD’s dependence on the availability

of “fuel” (river flows) for BPA’s hydro resources which can vary significantly from year-to-year

and month-to-month; see FIGURE 2.

FIGURE 2

Under Benton PUD’s Slice contract with BPA, they are required to guarantee delivery of firm

monthly energy represented by the combined total of a “Block” and “Critical Slice” amount.

The “Above Critical Slice” is the amount of energy BPA is forecasting will be available to Benton

PUD but not guaranteed. Slice customers can re-sell surplus energy received from BPA when

supply exceeds what is required to serve customer loads but in return must accept and

independently manage the risk that loads may be higher than the available BPA supply.

117



Any forecasted capacity deficits require Benton PUD to make purchases from wholesale

electricity markets in order to augment our long-term power supply contracts. Consequently,

we have people, processes and contracts in place to be sure our customer electricity demand is

completely supplied on an hourly and around the clock basis. Benton PUD’s wholesale

electricity purchases are typically made in short-term monthly, weekly, day-ahead and hourly

markets from generation resources that can be counted on to run on the days and hours

needed (dispatchable). These dispatchable generation resources provide needed capacity to

cover energy supply deficits that occur on the hottest and coldest days of the year.

Since wind power relies on natural weather conditions decoupled from electricity demand, it is

not a dispatchable generation resource and therefore development of more wind power will

not help Benton PUD resolve our seasonal capacity deficit problems; particularly our most

acute deficits which occur in summer months with very low levels of wind. We are also

concerned that preferences for wind power risk under investment in dependable and

dispatchable natural-gas generation plants most utilities believe will be essential for replacing

the capacity of coal-fired plants being rapidly retired and shut down in the Pacific Northwest

and throughout the western United States.

While wind energy developed on a large scale can be a substitute for much of the annual

energy produced by fossil-fueled power plants, it cannot provide the equivalent capacity

required for balancing electricity supply and demand on an around the clock basis, and under a

wide variety of weather conditions. Because the northwest is so dependent on the availability

of water for hydro-electric generation, the coldest and hottest days of a year in which water

resources are at a critically low level are of particular concern for electric utilities and is why

other reliable and dispatchable generation must be standing by and ready to run on demand.

When power grid supply does not meet demand on a moment-by-moment basis, blackouts can

occur. Benton PUD is concerned that a deepening dependence on wind power as a

replacement for energy produced by coal plants in the northwest could have serious

consequences in the not-too-distant future if grid operators are faced with the simultaneous

occurrence of drought conditions (low hydro power production), extreme temperatures, low

wind and not enough dispatchable electricity generators to meet peak customer demands.

To gain further perspective, it is also instructive to consider Benton PUD’s 11 aMW “long” BPA

annual energy position in the context of customer growth which is currently forecasted to

result in an increase of about 0.4 aMW of energy consumption per year. This relatively low

growth rate is driven by our continued investments in effective conservation measures as well

as improvements in the energy efficiency of new homes and businesses. In the simplest

analysis, Benton PUD’s expected annual supply of BPA power represents over 27 years of

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customer growth which means we are not currently looking to add substantial amounts of

“baseload” annual energy to our power supply portfolio from wind power or other resources.

With this said, new large loads associated with electricity intensive businesses or industry

locating in Benton PUD’s service territory are a wild card that could require acquisition of new

generation resources. Another resource acquisition driver could be preferences for wind and

solar power which are often used to brand businesses as sustainable. In either case, given the

requirements of Washington State’s Clean Energy Transformation Act (CETA) and other clean

energy policies and preferences in adjacent states and regions, wind and solar power may be

the only significant energy resources available to meet a future Benton PUD need. While not

ideal, we would choose solar power over wind given that solar energy production curves are

better aligned with our summer peaking load profile and would contribute to reducing our

regular summer capacity deficits on most days.

Existing Wind Power Resources Currently, Benton PUD’s power supply portfolio includes wind energy through direct contracts

from the Nine Canyon (9 MW) and White Creek (9.1 MW) projects delivering about 5.7 aMW of

total energy on an annual basis. These contracts were initiated by Benton PUD in response to

the qualifying renewable energy requirements of Washington State’s Energy Independence Act

(EIA) which initially did not include energy from existing hydro generation.

In addition to direct wind power purchases, Benton PUD’s contract with BPA includes an

allocation of about 1.4 aMW of their wind portfolio’s annual energy production. All the wind

resources in Benton PUD’s portfolio along with BPA’s hydro generation resulting from

incremental improvements to turbine-generator efficiency (incremental hydro) are considered

EIA qualifying renewable energy. This means energy from these resources provide a renewable

energy credit (REC) for every megawatt-hour of electricity generated.

REC allocations and purchases are how Benton PUD meets the renewable portfolio standard

(RPS) currently required by EIA mandates. In 2020 Benton PUD will need a total of about 30

aMW of REC allocations and purchases each year to meet the current 15% RPS requirement.

We plan to meet our compliance requirement with 7.1 aMW of total wind power RECs from

Nine Canyon, White Creek and BPA; 2.6 aMW of BPA incremental hydro REC allocations; and

20.4 aMW of REC purchases from other entities, including wind farms.

It is important to emphasize that a REC is a certificate corresponding to the environmental

attributes of energy produced from qualifying renewable resources and does not necessarily

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represent purchases of physical electricity. While Benton PUD has contractual rights to the

electricity produced by the Nine Canyon and White Creek projects, it is usually surplus to our

annual customer energy requirements except under a worst-case low hydro generation

scenario.

With that said, Benton PUD’s share of Nine Canyon’s physical electricity is always scheduled to

supply our load with the net effect during low customer load periods of increasing our BPA

hydro surplus which we sell in regional wholesale electricity markets. Due to power scheduling

complexities, Benton PUD’s share of the White Creek project’s physical electricity is bundled

with other utility shares and sold to another counterparty at a price currently well below the

relevant market power index. This below index pricing is an indicator of the reduced value of

wind energy compared to other more dependable generation resources.

Revenues from the sales of physical electricity attributed to Nine Canyon and White Creek are

considered as offsets to the total annual cost of Benton PUD’s EIA renewable-energy

compliance which is budgeted to be $3.8 million in 2020. We expect to continue to rely on REC

purchases as the primary means for meeting EIA mandates with some relief possible in 2030,

depending on CETA rules which are currently under development.

Benton PUD considers the incremental cost and dependence we have on continued operation

and development of wind and solar power for REC purchases as a perverse outcome of EIA

mandates given our extraordinarily clean power supply and surplus annual hydro and nuclear-

based energy position.

Surplus Energy and Market Sales

With respect to Benton PUD’s net annual surplus of energy, it is important to understand the

timing of when most surplus hydro generation occurs. For Benton PUD, the best combination

of market price and volume of surpluses occurs in January through March with the highest

volume and lowest prices occurring in April and May. When our hydro supply exceeds customer

demand, our BPA contract allows us to sell the surplus energy into wholesale electricity

markets. The revenues generated by our sales have the effect of buying down our annual

wholesale power costs.

Energy production from wind farms in the northwest can also be high during periods of

maximum hydro generation contributing to energy gluts that can drive market prices to zero or

even to negative values due to federal tax credits received by wind power. The wholesale

electricity market distortions created by wind power tax credits combined with the availability

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of abundant and low-priced natural gas has driven market prices to very low levels in recent

years. Consequently, the value of Benton PUD surplus hydro energy sales has been significantly

reduced from over $50 million in 2008 to under $20 million today.

While there are efforts underway centered on possible expansion of the Western Energy

Imbalance Market (EIM) to an extended day ahead market (EDAM) that could increase the

economic value of BPA hydro flexibility and capacity, Benton PUD believes further development

of wind power in existing “energy only” wholesale markets will continue to contribute to the

devaluation of hydro. To be clear, Benton PUD believes abundant and low-cost natural gas has

been the major driver of wholesale electricity price reductions but building more wind farms

will contribute to downward pressure on prices.

Overall, the erosion of the market value of hydro energy has resulted in upward pressure on

the prices BPA charges Benton PUD and consequently on the retail rates we charge our

customers. Since 2007, BPA’s revenues derived from market sales have dropped from over

$400 million to under $200 million in some years which leaves them looking to their ratepayers

to make up the difference. Benton PUD’s net power supply costs are budgeted to be $84

million in 2020 which is up 40% since 2010 when actual costs were $60 million.

Oversupply and Curtailments

Additional concerns regarding the development of more wind power are oversupply and

curtailments which are well described in a report developed by Harvard University for the

Bonneville Power Administration in May 2018.1

…As more intermittent renewable energy is added to the grid it creates oversupply,

particularly during low demand hours, when generation exceeds load. Oversupply causes

low or negative prices for wholesale energy during periods of overgeneration. When

scheduled generation exceeds scheduled demand in the hour-ahead market, the price of

energy falls below zero in an attempt to balance supply and demand. After accounting

for changes in generation and load between the hour-ahead and real-time markets, if

generation still exceeds load and there are no more generators willing to receive

payments to reduce their output, then balancing authorities must order generators to

curtail output to maintain system frequency. Negative bids often represent the lost

opportunities for the generator to take advantage of tax credits for renewable energy

production.

1 Patricia Florescu and Jack Pead, “Realizing the Value of Bonneville Power Administration’s Flexible Hydroelectric Assets”, 12, 13, 14, Mossavar-Rahmani Center for Business & Government, Harvard University, May 2018.

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…Due to the Pacific Northwest’s reliance on hydroelectricity, oversupply becomes more

problematic in the springtime when both river flows and wind generation are high.

Under those circumstances, extra water can be spilled from the dams so that it does not

contribute to oversupply, but too much spill exceeds water quality standards and can

harm fish and other aquatic species. If water cannot be spilled, it must be passed

through the hydropower turbines, thus generating electricity.

For conditions like these, BPA implemented the Oversupply Management Protocol, under

which non-hydrogeneration is displaced to protect aquatic life and maintain system

reliability. Displacement decisions are made according to a least-cost displacement cost

curve that lists generation in order of cost, from the least cost facility to the highest-cost

facility, until the required displacement quantity is achieved.53 After a federal court case

concluded in 2011, BPA enacted a new protocol that compensated wind generators for

lost revenues from curtailment and assigned the costs of curtailing generation during

oversupply events to BPA transmission customers.54

While Oversupply Management Protocol costs have not been extremely high2 relative to other

costs incurred by Benton PUD through our BPA transmission contract, we are concerned more

wind power on the grid will contribute to increases in BPA costs and will add more complexity

to the already difficult balancing act of managing river flows to meet the competing interests of

power generation, environmental stewardship, barging operations, flood control and

recreation.

Pacific Northwest Resource Adequacy Challenges

The Pacific Northwest’s clean hydroelectric generation resources are unmatched anywhere in

the United States and are the primary reason Washington State contributed on average no

more than 0.5% to the nation’s annual total greenhouse gas emissions from electricity

production each year between 1980 and 20173; even with coal plants in the mix.

While our already clean electricity sector is the envy of the nation, policy makers in Washington

State have set the course for 100% clean by 2045 through passage of the Clean Energy

Transformation Act (CETA). While a long-term goal like this is clearly aspirational at this point,

2 BPA’s displacement costs of OMP were around $4.87 million in 2018 and $2.2 million in 2017 https://www.bpa.gov/Projects/Initiatives/Oversupply/Pages/Annual-Oversupply-Review.aspx. 3U.S. Energy Information Administration, “State Carbon Dioxide Emissions Data” https://www.eia.gov/environment/emissions/state/.

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the near-term consequences of CETA’s underlying requirements are significant and very

concerning when it comes to maintaining power grid reliability. The most consequential

requirements are the explicit removal of coal power from utility portfolios by 2025 and the

“social cost of carbon” which must be used as a cost adder when utilities evaluate investments

in new generation resources. As intended by legislators, this cost adder will have a chilling

effect on investments to construct new natural-gas power plants which utilities would normally

consider to be the logical replacement for dispatchable capacity associated with retiring coal

plants.

Unfortunately, CETA along with other anti-fossil-fuel sentiment in Oregon and California energy

policies has put northwest utilities in a position where it appears only wind and solar power

along with batteries, pumped hydro and customer load curtailments (demand response) will be

allowed to try and solve utility capacity deficits. The problem is that science, economics and

project development cycle times indicate the politically preferred technologies are not ready to

provide solutions at the scale needed to mitigate the already unacceptable increase in the risk

of blackouts projected for the Pacific Northwest beginning in 20214. In their most recent

assessment, the Northwest Power and Conservation Council (NWPCC) estimates that

accelerated coal-plant retirements could increase the likelihood that generating capacity will

not be adequate for meeting demand to a level of 26% by 2026. This is well above the 5%

threshold established as the limit for an adequate regional power supply.

Benton PUD is a relatively small player in the northwest grid, but our seasonal capacity deficits

are significant. This is why we joined forces with other members of the Public Generating Pool

(PGP) and several investor owned utilities to co-fund a study by E3 Consulting5 of what will be

required to maintain power grid reliability in the Pacific Northwest while further de-carbonizing

the electricity sector. This study found that deep de-carbonization is possible but that natural

gas fired generation will be needed to maintain power grid reliability; it would just run

infrequently.

While development of wind farms may be politically fashionable and appeal to many in the

general public as a harmonization of nature with electricity production, the science and

economics indicate powering modern civilization with intermittent generation resources like

wind and solar power comes at a high financial and environmental cost. E3’s study concludes

that increasing the Pacific Northwest’s inventory of wind power from the 2018 level of 7

4 Northwest Power and Conservation Council, “Pacific Northwest Power Supply Adequacy Assessment for 2024”: October 2019. 5 Energy+Environmental Economics, “Resource Adequacy in the Pacific Northwest”: Public Generating Pool, March 2019.

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gigawatts to a level of 38 gigawatts by 20506 would only result in an effective capacity

contribution from wind of 19%. In other words, a more than fivefold investment in wind power

which E3 estimates would cover an area as much as 37 times the combined areas of Seattle and

Portland, would only allow regional utilities to count on 19% of the capital investment to

produce electricity when it is most critically needed. The E3 study also estimates the area

required to achieve a theoretical 100% clean electricity sector in the northwest using only wind

and solar power (assuming existing hydro and nuclear stay in place) would require a land area

as much 100 times the combined areas of Seattle and Portland.

On November 12, 2019 Benton PUD Commissioners adopted Resolution 2523 in support of

actions to ensure electric sector resource adequacy in the Pacific Northwest. This resolution

provides a sound argument for why northwest utilities have serious concerns regarding the

reliability of the northwest power grid and why Benton PUD questions the wisdom of continued

development of large numbers of wind farms in our region when we are facing potentially

serious consequences associated with power grid blackouts.

Other Considerations

The “fuel” for wind power is dilute and intermittent requiring additional investments in backup

generation technologies to meet the always-on requirements of power grids. While developers

and advocates often tout continued reductions in the cost of wind energy, the low availability

of wind power requires utilities to continue paying for dispatchable generation capacity that

may run infrequently but is sized to meet most of the peak energy demand on the grid. This

“double paying” is why electricity rates in countries and states with high wind penetrations

have risen significantly amid claims of low-cost renewable energy.

CETA together with the Energy Independence Act (EIA) appears to have established an

undefined increase in Washington State’s renewable portfolio standard (RPS) which will

undoubtedly lead to some level of double paying in Washington State. Establishing preferences

for wind and solar energy with no accompanying targets for greenhouse gas (GHG) emission

reductions in the electricity sector has been shown through comprehensive study to result in

unnecessary increases in the cost of electricity while not reducing GHG emissions in the most

cost-effective manner possible7.

6 38 gigawatts of nameplate wind power capacity is what E3 determined would be required in an optimal scenario to reduce greenhouse gas emissions from electricity production by 80% below 1990 levels; an often-quoted goal from the Intergovernmental Panel on Climate Change (IPCC). 7 Energy+Environmental Economics, “Pacific Northwest Low Carbon Scenario Analysis - Achieving Least-Cost Carbon Emissions Reductions in the Electricity Sector”: Public Generating Pool, December 2017.

124



Additionally, the land area required for wind turbine construction and transmission lines

needed for grid interconnections can be immense and the negative ecological and

environmental impacts of this “energy sprawl” may outweigh the perceived or real benefits.

Benton PUD believes lifecycle economic and environmental impacts expected to result from

further development of wind power need to be scrutinized to a much higher degree with

greater recognition of issues like the global impacts of raw materials mining and the disposal of

wind turbine blades which are currently destined for landfills.

Benton PUD acknowledges every source of energy production takes a toll on the environment

but believes wind power is often given a pass due to its popularity with policy makers and many

in the general public. One source estimates wind power requires about 30 to 45 times as much

land to produce a comparable amount of power as nuclear and that concrete and steel

requirements for wind are about 10 times greater8. We believe these are important and

relevant considerations as investments are made in power generation projects that will have

long lasting environmental and financial impacts.

Benton PUD supports provisions of CETA that count hydro and nuclear energy toward the 100%

clean by 2045 objective. However, we believe a more cost-effective and potentially less risky

trajectory toward this goal would have been to allow for the transition from coal to natural gas

and to promote an increase in the development of nuclear energy as the best long-term and

sustainable strategy. We believe it is reasonable to suggest the most balanced and

environmentally responsible actions you can take to “clean up” the electricity sector is to

produce as much low or non-emitting electricity as possible in the smallest area possible. This

seems to be best accomplished with energy dense fuels like natural gas and uranium.

Benton PUD supports EN in their efforts to develop small modular reactor (SMR) technology.

However, we are concerned continued large-scale investments in wind power will substantially

increase the normally surplus annual energy supplies in the Pacific Northwest (PNW) thereby

eroding the hourly energy supply opportunities needed by SMRs to achieve economic

feasibility. According to the Bonneville Power Administration (BPA)9 the generating potential

from federal and non-federal hydro projects in the PNW can vary by almost 7,000 aMW

annually and by almost 14,000 aMW in some months, depending on project operations and the

availability of water. But even in the worst water years, the PNW region is projected to have

annual firm energy surpluses for the next ten years, assuming the region’s 4,000 MW of

uncommitted independent power producer (IPP) generation capacity is available to serve

regional loads. Adding to this “long” regional energy position with continued development of

8 Robert Bryce, “Power Hungry – The Myths of “Green” Energy and the Real Fuels of the Future”: Pages 84, 91. 9 Bonneville Power Administration, “2018 Pacific Northwest Loads and Resources Study”: April 2019, Section 3.

125



large-scale wind farms does not bode well for the development of SMR based generating

projects given their relatively high capital costs and the need for lots of run time in order to

reduce energy production costs to levels that will make them competitive with other

technologies.

Conclusions

It appears additional wind farm development in the Pacific Northwest (PNW) is gaining

momentum and is a foregone conclusion in the minds of many legislators, members of the

general public and even some utilities. Benton PUD believes it is reasonable to question

whether continuing to favor investments in intermittent wind power and putting up roadblocks

to the development of dispatchable natural-gas power plants is more about environmental

virtue signaling than it is about serving the best interests of the citizens of Washington State.

There is no denying the fact that thanks to abundant PNW hydro energy, Washington State has

historically been one of the lowest contributors to electricity sector greenhouse gas (GHG)

emissions in the United States and that electricity sector contributions to total statewide GHG

emissions have been only 16 to 19%10, even with coal plants in the mix. Put another way, what

urgent “dirty energy” problem are we attempting to solve through the aggressive timelines and

technology restrictions of the Clean Energy Transformation Act (CETA) that is worth sacrificing

vast amounts of our natural landscapes and risking blackouts that jeopardize the health, safety

and wellbeing of northwest electricity customers?

While language exists within CETA requiring future reporting to the governor’s office to address

concerns with power grid reliability, it appears legislators do not believe the risk of blackouts is

real. If they did, they would accept the results of already existing utility studies and

immediately begin to work on modifications to CETA to remove disincentivizes for the

development of dispatchable natural gas plants needed for replacing retiring coal-plant

capacity. So, at this point, investor owned utilities are announcing plans for new wind power

projects to meet CETA deadlines, and along with all northwest utilities, are hoping the efforts of

the Northwest Power Pool (NWPP) to develop power-generation resource adequacy standards

can be completed and implemented in time to avoid blackouts11.

Benton PUD strongly supports the efforts of the NWPP, but we do not support further

development of wind power in the PNW. We believe continued investments in large-scale wind

farm development in the PNW will: (1) contribute very little to keeping the regional power grid

10 Department of Ecology State of Washington, “Washington State Greenhouse Gas Emissions Inventory: 1990-2015 Report to the Legislature,”: December 2018, Publication 18-02-043, Pg. 6, Table 2. 11Northwest Power Pool Resource Adequacy: https://www.nwpp.org/about/workgroups/12

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reliable and will not help Benton PUD solve our seasonal energy deficit problems; (2) contribute

to the devaluation of hydro-generation assets and put upward pressure on retail rates Benton

PUD and other utilities charge our customers; (3) risk underinvestment in needed dispatchable

capacity today and future investments in visionary advancements in nuclear energy technology;

(4) further sacrifice scenic hillsides, canyons and desert vistas in our region for little if any net

environmental benefit.

127

2018 2019 2020

Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun

$0M

$2M

$4M

$6M

$8M

$10M

$12M

$ Amount

($3M)

($2M)

($1M)

$0M

$1M

$2M

Cumulative Variance (Line) / Monthly Variance (Bar)

$11.08M$10.44M

$11.99M

$9.38M $9.35M $9.15M

$10.23M

$11.15M $11.00M

$12.42M

$9.22M$9.82M

$10.48M $10.35M

$11.83M

$9.98M$9.49M

$9.98M

($0.63M)

($0.23M)($0.08M)

$0.05M

$0.50M$0.29M

($1.03M)

($0.27M)

($0.63M)

$0.92M

$1.97M

$0.06M

($1.13M)

($0.56M)($0.71M) ($0.78M)

$0.20M$0.37M

Cumulative Retail Revenue Budget vs Actuals: AllLegendActual

Budget

Month Over / (Under)

Cumulative Variance

128

2018 2019 2020


$0M

$1M

$2M

$3M

$4M

$5M

$6M

$7M

$8M

$ Amount

($2M)

($1M)

$0M

$1M

$2M


$7.31M

$5.81M

$5.32M

$4.53M

$3.73M$4.10M

$6.60M

$7.44M $7.27M

$4.68M

$3.62M

$4.17M

$6.77M$6.31M

$5.19M$4.86M

$3.81M$4.19M

($0.09M)

($0.69M)

($0.08M)

$0.38M $0.37M

$0.04M

($1.00M)

($0.29M) ($0.27M)

$0.77M

$2.17M

$0.37M

($1.13M)

($0.62M)

($0.12M) ($0.16M)($0.31M)

$0.39M

Cumulative Retail Revenue Budget vs Actuals: Residential SalesLegendActual

Budget


Cumulative Variance

129

2018 2019 2020


$0M

$ Amount

$0M


$0.88M

$0.78M

$0.70M $0.69M $0.70M

$0.77M

$0.83M

$0.91M

$0.85M

$0.70M $0.68M

$0.76M

$0.84M$0.81M

$0.69M

$0.64M

$0.58M

$0.65M

($0.02M)

$0.02M $0.03M $0.02M $0.01M $0.00M

($0.04M) ($0.04M) ($0.03M)

$0.09M

$0.16M

$0.02M

($0.06M)($0.03M)

($0.01M)

($0.06M)

($0.14M) ($0.14M)

Cumulative Retail Revenue Budget vs Actuals: Small General Service SalesLegendActual

Budget


Cumulative Variance

130

2018 2019 2020


$0M

$1M

$ Amount

$0M


$1.17M

$1.07M

$0.99M$0.96M $0.96M

$1.02M

$1.13M$1.17M

$1.12M

$0.99M$0.93M

$1.03M

$1.15M$1.09M

$0.97M$0.91M

$0.87M

$0.94M

($0.06M)

$0.00M

$0.01M

$0.06M $0.06M$0.03M

($0.04M)($0.01M)

$0.04M

$0.13M$0.09M

$0.01M

($0.01M)($0.03M)

($0.09M)

($0.15M)($0.18M)

$0.00M

Cumulative Retail Revenue Budget vs Actuals: Medium General Service SalesLegendActual

Budget


Cumulative Variance

131

2018 2019 2020


$0M

$1M

$ Amount

$0M


$1.24M $1.22M

$1.14M $1.11M$1.16M $1.17M

$1.21M$1.17M $1.15M

$1.10M $1.08M

$1.17M$1.23M $1.23M

$1.16M$1.11M

$1.04M$1.10M

$0.11M $0.11M $0.09M$0.14M

$0.16M

$0.10M$0.07M

$0.05M$0.10M

$0.12M

$0.04M $0.06M

($0.04M)

($0.15M)($0.17M)

$0.07M $0.08M $0.08M

Cumulative Retail Revenue Budget vs Actuals: Large General Service SalesLegendActual

Budget


Cumulative Variance

132

2018 2019 2020


$0M

$1M

$2M

$3M

$4M

$5M

$ Amount

($1M)

$0M


$0.11M $0.16M

$0.83M

$1.46M

$3.45M

$4.40M

$0.12M $0.11M$0.24M

$1.36M

$3.05M

$4.79M

$0.12M $0.19M

$1.10M

$2.38M

$3.20M

$4.43M

($0.77M)

($0.13M)$0.00M

$0.02M $0.01M$0.06M

($0.02M)

($0.56M)

($0.80M)

($0.30M)

$0.00M

$0.34M

($0.10M)

$0.00M$0.06M

$0.28M$0.20M

$0.05M

Cumulative Retail Revenue Budget vs Actuals: Large Irrigation SalesLegendActual

Budget


Cumulative Variance

133

Date

Jun Jul

2 4 6 8 10 12 14 16 18 20 22 24 26 2830 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

0K

20K

40K

60K

80K

100K

120K

140K

160K

180K

Running Sum of MWH

2018

2019

2018

2020

Billed Revenue ClassInOut

Revenue ClassAll

AMI data updated through:

Friday, July 3, 2020

Revenue Class Cumulative EnergyBy Year for Revenue Class: All in Month: June & July

Year ofDate MWH

MWHDifference

%Difference

2017

2018

2019

2020 -2.97%-5,380175,482

-1.59%-2,922180,862

2.50%4,481183,784

179,303

Select filters:Year Over Year Summary:(hover to highlight year)

Year of DateAll

Month of DateMultiple values

Month-DayMultiple values

Note:Totals do not includenon-AMI meter readings.

Abc

134

Date

Jun Jul

2 4 6 8 10 12 14 16 18 20 22 24 26 2830 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

0K

5K

10K

15K

20K

25K

30K

35K

40K

45K

50K

55KRunning Sum of MWH

2020

20202018

2019


Revenue ClassResidentialSmall GeneralMedium GeneralLarge GeneralLarge IndustrialLarge IrrigationSmall Irrigation



Revenue Class Cumulative EnergyBy Year for Revenue Class: Residential in Month: June & July

Year ofDate MWH

MWHDifference

%Difference

2017

2018

2019

2020 -1.26%-67853,052

5.17%2,64353,729

-3.96%-2,10551,086

53,191


Year of DateAll




Abc

135

Date

Jun Jul

2 4 6 8 10 12 14 16 18 20 22 24 26 2830 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

0K

1K

2K

3K

4K

5K

6K

7K

8K

9K

10K

11K

Running Sum of MWH

2020

2019

2017

2020

2019





Revenue Class Cumulative EnergyBy Year for Revenue Class: Small General in Month: June & July

Year ofDate MWH

MWHDifference

%Difference

2017

2018

2019

2020 -12.77%-1,4469,882

2.24%24811,328

0.55%6111,080

11,019


Year of DateAll




No AMI readings for the NineCanyon Wind Project load. Abc

136

Date

Jun Jul

2 4 6 8 10 12 14 16 18 20 22 24 26 2830 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

0K

2K

4K

6K

8K

10K

12K

14K

16K

18KRunning Sum of MWH

2019

2020

20172018

2020

2019





Revenue Class Cumulative EnergyBy Year for Revenue Class: Medium General in Month: June & July

Year ofDate MWH

MWHDifference

%Difference

2017

2018

2019

2020 -14.17%-2,42814,707

3.74%61917,136

-0.99%-16416,517

16,682


Year of DateAll




Abc

137

Date

Jun Jul

2 4 6 8 10 12 14 16 18 20 22 24 26 2830 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

0K

2K

4K

6K

8K

10K

12K

14K

16K

18K

20K

22K

Running Sum of MWH

2018

2020

2020

2017

20192018





Revenue Class Cumulative EnergyBy Year for Revenue Class: Large General in Month: June & July

Year ofDate MWH

MWHDifference

%Difference

2017

2018

2019

2020 -16.80%-3,68018,221

-0.06%-1421,901

5.70%1,18221,915

20,733


Year of DateAll




Abc

138

Date

Jun Jul

2 4 6 8 10 12 14 16 18 20 22 24 26 2830 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

0K

10K

20K

30K

40K

50K

60K

70K

Running Sum of MWH

2018 2019

2020

2018





Revenue Class Cumulative EnergyBy Year for Revenue Class: Large Irrigation in Month: June & July

Year ofDate MWH

MWHDifference

%Difference

2017

2018

2019

2020 4.16%2,87671,930

-7.42%-5,53269,055

7.20%5,01174,586

69,575


Year of DateAll




No AMI readings for thepump decks at Spaw,Paterson #1 & #2 and Prior#1 Bay 1 & 2.

Abc

139

Past Due AR in Dollars for Selected Revenue Classes:

Month End Daily

03/31/19

06/30/19

09/30/19

12/31/19

03/21/20

03/24/20

03/27/20

03/30/20

04/02/20

04/05/20

04/08/20

04/11/20

04/14/20

04/17/20

04/20/20

04/23/20

04/26/20

04/29/20

05/02/20

05/05/20

05/08/20

05/11/20

05/14/20

05/17/20

05/20/20

05/23/20

05/26/20

05/29/20

06/01/20

06/04/20

06/07/20

06/10/20

06/13/20

06/16/20

06/19/20

06/22/20

06/25/20

06/28/20

07/01/20

07/04/20

07/07/20

$0K

$250K

$500K

$750K

$1,000K

$1,250K

Total AR ($)

AllBalance Aging: 30 Days | 60 Days | 90+ Days

AR data as of 7/8/20. Data source is CIS via the AR Balance History SQL report.

$333,119

$210,818

$412,917

$956,854

30 Days

60 Days

90+ Days

Past Due 4,548

1,628

824

2,096Accounts Dollars

49,4.. $9,120,24049,440Total AR

Revenue Class Selection:All

Consumer Class Selection:Regular

140


Month End Daily

03/31/19

06/30/19

09/30/19

12/31/19

03/21/20

03/24/20

03/27/20

03/30/20

04/02/20

04/05/20

04/08/20

04/11/20

04/14/20

04/17/20

04/20/20

04/23/20

04/26/20

04/29/20

05/02/20

05/05/20

05/08/20

05/11/20

05/14/20

05/17/20

05/20/20

05/23/20

05/26/20

05/29/20

06/01/20

06/04/20

06/07/20

06/10/20

06/13/20

06/16/20

06/19/20

06/22/20

06/25/20

06/28/20

07/01/20

07/04/20

07/07/20

$0K

$250K

$500K

$750K

$1,000K

Total AR ($)

ResidentialBalance Aging: 30 Days | 60 Days | 90+ Days


$301,909

$188,931

$295,975

$786,815

30 Days

60 Days

90+ Days

Past Due 4,011

1,483

762

1,766Accounts Dollars

40,9.. $2,284,38140,914Total AR

Revenue Class Selection:Residential


141


Month End Daily

03/31/19

06/30/19

09/30/19

12/31/19

03/21/20

03/24/20

03/27/20

03/30/20

04/02/20

04/05/20

04/08/20

04/11/20

04/14/20

04/17/20

04/20/20

04/23/20

04/26/20

04/29/20

05/02/20

05/05/20

05/08/20

05/11/20

05/14/20

05/17/20

05/20/20

05/23/20

05/26/20

05/29/20

06/01/20

06/04/20

06/07/20

06/10/20

06/13/20

06/16/20

06/19/20

06/22/20

06/25/20

06/28/20

07/01/20

07/04/20

07/07/20

$0K

Total AR ($)

Small General ServiceBalance Aging: 30 Days | 60 Days | 90+ Days


$20,966

$11,124

$58,614

$90,703

30 Days

60 Days

90+ Days

Past Due 296

75

33

188Accounts Dollars

4,924 $417,3274,924Total AR

Revenue Class Selection:Small General Service


142


Month End Daily

03/31/19

06/30/19

09/30/19

12/31/19

03/21/20

03/24/20

03/27/20

03/30/20

04/02/20

04/05/20

04/08/20

04/11/20

04/14/20

04/17/20

04/20/20

04/23/20

04/26/20

04/29/20

05/02/20

05/05/20

05/08/20

05/11/20

05/14/20

05/17/20

05/20/20

05/23/20

05/26/20

05/29/20

06/01/20

06/04/20

06/07/20

06/10/20

06/13/20

06/16/20

06/19/20

06/22/20

06/25/20

06/28/20

07/01/20

07/04/20

07/07/20

$0K

Total AR ($)

Medium General ServiceBalance Aging: 30 Days | 60 Days | 90+ Days


$7,633

$8,440

$41,159

$57,232

30 Days

60 Days

90+ Days

Past Due 29

7

6

16Accounts Dollars

787 $632,032787Total AR

Revenue Class Selection:Medium General Service


143


Month End Daily

03/31/19

06/30/19

09/30/19

12/31/19

03/21/20

03/24/20

03/27/20

03/30/20

04/02/20

04/05/20

04/08/20

04/11/20

04/14/20

04/17/20

04/20/20

04/23/20

04/26/20

04/29/20

05/02/20

05/05/20

05/08/20

05/11/20

05/14/20

05/17/20

05/20/20

05/23/20

05/26/20

05/29/20

06/01/20

06/04/20

06/07/20

06/10/20

06/13/20

06/16/20

06/19/20

06/22/20

06/25/20

06/28/20

07/01/20

07/04/20

07/07/20

$0K

Total AR ($)

Large General ServiceBalance Aging: 30 Days | 60 Days | 90+ Days


$0

$0

$180

$180

30 Days

60 Days

90+ Days

Past Due 1

1Accounts Dollars

166 $852,319166Total AR

Revenue Class Selection:Large General Service


144


Month End Daily

03/31/19

06/30/19

09/30/19

12/31/19

03/21/20

03/24/20

03/27/20

03/30/20

04/02/20

04/05/20

04/08/20

04/11/20

04/14/20

04/17/20

04/20/20

04/23/20

04/26/20

04/29/20

05/02/20

05/05/20

05/08/20

05/11/20

05/14/20

05/17/20

05/20/20

05/23/20

05/26/20

05/29/20

06/01/20

06/04/20

06/07/20

06/10/20

06/13/20

06/16/20

06/19/20

06/22/20

06/25/20

06/28/20

07/01/20

07/04/20

07/07/20

$0K

$250K

Total AR ($)

IrrigationBalance Aging: 30 Days | 60 Days | 90+ Days


$0

$0

$8,927

$8,927

30 Days

60 Days

90+ Days

Past Due 61

61Accounts Dollars

228 $4,442,771228Total AR

Revenue Class Selection:Irrigation


145

1. AR Data as of 7/8/20.2. References to Total represent the total in the report and may differ slightly from the sum of the categories due to rounding.3. Examples of Information & Government businesses include government agencies and telecommunications.4. Examples of Services - General businesses include automotive shops, consultants, cleaners, and real estate.5. Examples of Services - Personal include gyms and salons.

Agriculture,Construction &Manufacturing

Food Services Health Care Hospitality Information &Government

Retail Trade Services -General

Services -Personal

$0K

$10K

$20K

$30K

$40K

$50K

$60K

Past Due AR ($)

Past Due AR in Dollars for Business CategoriesSmall, Medium, and Large General Service

Past Due Balance Aging: 30 Days | 60 Days | 90+ Days

Category # of Accounts# of Accounts(% of Total)

Total AR Total AR(% of Total)

Past Due AR 30 Day AR 60 Day AR 90+ Day AR

Agriculture, Construction& Manufacturing

Food Services

Health Care

Hospitality

Information &Government

Retail Trade

Services - General

Services - Personal

Total $28,599

$6,212

$3,820

$6,989

$163

$186

$0

$9,078

$2,152

$19,564

$5,041

$2,799

$3,303

$226

$525

$0

$6,843

$826

$99,952

$4,558

$16,802

$4,547

$58,811

$1,510

$433

$11,349

$1,944

$148,115

$15,811

$23,421

$14,840

$59,200

$2,220

$433

$27,269

$4,922

100%

8%

13%

8%

50%

2%

0%

16%

3%

$252,447

$19,996

$33,212

$19,705

$126,825

$3,842

$787

$40,739

$7,341

100%

13%

17%

12%

39%

2%

1%

13%

3%

326

43

55

39

128

6

4

41

10

146

Past Due Accounts by Dollar Amount Range (as of 7/8/2020)# of Accounts | $ Amount

Accounts are sorted into past due amount ranges listed across the bottom.Each range is lableled by the maximum value; the minimum value begins where the previous range leaves off.

<$100 <$200 <$300 <$400 <$500 <$600 <$700 <$800 <$900 <$1,000 <$1,500 <$2,500

0

200

400

600

800

1000

1200

1400

1600

$91,795

$151,704

$114,826$116,864

$97,518

$59,925

$49,236

$33,161$30,533

$15,238

$23,784

$2,232

Consumer Class Selection:PrepaidRegular

Revenue Class Selection:IrrigationLarge General ServiceMedium General ServiceResidentialSecurity LightingSmall General ServiceSmall Irrigation

Customers Accounts Past Due

Residential

Total $786,815

$786,815

4,011

4,011

3,852

3,852# of Accounts

147


Accounts are sorted into past due amount ranges listed across the bottom.Each range is lableled by the maximum value; the minimum value begins where the previous range leaves off.

<$100 <$200 <$300 <$400 <$500

0

2

4

6

8

10

12

14

16

18

$727

$2,479

$1,467

$1,649

$444

Consumer Class Selection:PrepaidRegular

Revenue Class Selection:Residential


Residential

Total $6,766

$6,766

42

42

41

41# of Accounts

148


Accounts are sorted into past due amount ranges listed across the bottom.Each range is lableled by the maximum value; the minimum value begins where the previous range leaves off.<$100

<$200

<$300

<$400

<$500

<$600

<$700

<$800

<$900

<$1,000

<$1,500

<$2,000

<$2,500

<$4,500

>=$4500

0

10

20

30

40

50

60

70

80

90

100

110

$4,973

$8,127

$12,042

$8,795

$7,479

$5,421 $5,137

$6,666

$5,880

$4,798

$20,904

$11,067

$6,332

$19,827

$20,668


Revenue Class Selection:IrrigationLarge General ServiceMedium General ServiceResidentialSecurity LightingSmall General ServiceSmall Irrigation


Small General Service

Medium General Service

Large General Service

Total $148,115

$180

$57,232

$90,703

326

1

29

296

175

1

23

156# of Accounts

149

July 14, 2020 Page 1

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aMW

aM

W

151


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agenda benton county public utility district no. 1 ... · 7/14/2020 · benton county public...

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