monthly report to board of directorsboard of directors june 2020. valley electric association, inc....

Valley Electric Association, Inc.

800 E Highway 372 • PO Box 237 • Pahrump, NV 89041-0237

Phone: (775) 727-5312 or (800) 742-3330 (In Nevada) • Fax: (775) 727-6320 • www.vea.coop

MONTHLY REPORT TOBOARD OF DIRECTORS

June 2020

Valley Electric Association, Inc.

800 E Highway 372 • PO Box 237 • Pahrump, NV 89041-0237 Phone: (775) 727-5312 or (800) 742-3330 (In Nevada) • Fax: (775) 727-6320 • www.vea.coop

June 17, 2020 The regular board of directors meeting has been set for Wednesday, June 24, 2020 beginning at 8:30a.m. The meeting will be conducted via telecommunication and in person. Proposed Agenda:

1. Call to Order

2. Attendance

3. Pledge of Allegiance, Moment of Silence

4. Approval of the Agenda

5. Member Comment Period

6. Director Comment Period

7. Approval of the minutes of the May 27, 2020 regular meeting

8. Presentation of Financial & Statistical Reports

9. Unfinished Business

10. New Business

a. Estate Capital Credit Retirements

b. Board Committee Reports 1. Charitable Foundation Committee 2. Finance Committee 3. Member Liaison Committee 4. Policy Committee

11. Staff Reports

a. Chief Executive Officer Report b. Departmental Reports

12. Executive Session 13. Adjournment

Tab 1

Approval of Minutes

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VALLEY ELECTRIC ASSOCIATION, INC.

REGULAR MEETING OF THE

BOARD OF DIRECTORS A Regular meeting of the Board of Directors of Valley Electric Association, Inc. (“VEA”) was held on Wednesday May 27, 2020, beginning at approximately 8:30 A.M., at VEA’s headquarters in Pahrump, Nevada. The meeting was held via Zoom, pursuant to Governor Sisolak’s Emergency Directives, COVID-19, and in light of social distancing concerns.

Ms. Keyes presiding as President, appointed Mr. Sweetin as Parliamentarian. Ms. Keyes called the roll of Directors present: Kathleen Keyes, President; Michelle Caird, Vice-President (“VP”); Terrie D’Antonio, Secretary; Rob Shirley, Treasurer; Bonnie Groenert; and Robin Barber.

Also present via Zoom were: Mark Stallons, Chief Executive Officer (“CEO”); Steve Morrison, Chief Financial Officer (“CFO”); Bart Thurgood, Chief People Strategist; James Andresen, Director of Engineering & Operations; Nate Johnson, Executive Vice President, Broadband; Doug Maughan, Manager of Power Resources; Amy Carlson, Executive Assistant; Bill Perna, Manager of Customer Service; Joe Fieldsted, Manager of Safety; Jack Venezio, Manager of Network Operations; Cassy Potter, IT Help Desk Technician; Amber Crotty, Administrative Assistant; and Bob Sweetin, Davison Van Cleve, General Counsel; Members: Surely Karganilla.

Ms. Keyes called the meeting to order 8:30 a.m., Pledge of Allegiance, followed by a moment of silence. 1. Approval of the Agenda. Ms. Groenert moved to approve the agenda. Ms. Caird seconded

the motion. No comments. The motion was approved unanimously. 2. Member Comments. No Comments.

3. Director Comments. Ms. Caird thanked Robin Barber for her service to the members of her

district; Ms. Groenert also thanked Ms. Barber; Mr. Shirley thanks Ms. Barber; Ms. Keyes thanked Ms. Barber, also mentioned that she took an NRECA training this month via webinar, also reported on distribution of food for community members; Ms. D’Antonio thanked Ms. Barber for her service and thanked her for continuing to serve on the members liaison and charitable foundation, also spoke to food distribution, expressed hope to be back to in person Board meetings for June meeting; Ms. Barber thanked the Board and staff, and “everyone” expressed appreciation for all the work and leadership from VEA. And passed along her confidence in the success of VEA.

4. Approval of Minutes from April 29, 2020 Regular Board meeting. Ms. Barber moved to

approve minutes as amended. Ms. Caird seconded the motion. No further discussion. The motion was approved unanimously.

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5. Presentation of Financial and Statistical Report. Presented by Mr. Morrison, consistent with

provided back-up materials.

Ms. D’Antonio moved to approve and accept the presentation. Ms. Barber seconded the motion. No further comment. The motion was approved unanimously.

6. Unfinished Business. None.

7. New Business.

a. Capital Credit Retirements. Total $25,380.26 from five estates. Net Present Value $15,195.14. Total $10,185.12. Ms. Caird moved to approve. Ms. D’Antonio seconded the motion. No further comment. The motion was approved unanimously.

b. Board Resolution 2020-04, certifying the Director elections. Ms. D’Antonio elected to District 5, Mr. Healy to District 6. Ms. Barber made a motion to approve. Ms. Caird seconded the motion. No further comment. The motion was approved unanimously.

8. Board Committee Reports.

a. Charitable Committee Report (Provided by Ms. D’Antonio). Reported on charitable giving and distributions of food. Stated that committee would like to meet in June.

b. Finance Committee Report (Provided by Ms. Caird) met on Tuesday, May 26, 2020.

Reported that the committee spoke about COVID-19 and the impact COVID has had on cooperative finances. Further discussion on review of accounts that are overdue and how those will be handled as we return to normal.

c. Member Liaison Committee (Provided by Ms. Caird) stated that hoped to hold a

meeting in June.

d. Policy Committee Report (Provided by Ms. Caird) met on May 8, 2020. Reported on how policies are being reviewed and moving forward. Expressed hope that by June 12, 2020 committee would meet to review policies and that after review, all relevant parties would have time to review by end of year.

9. Nye County Community Center. Presentation from Tim Sutton, County Manager,

consistent with presentation in Board packet. Discussion on community review prior to ultimate approval from VEA. Discussion between Board Members about who has been involved from the Community and how their involvement has formed the presentation Board is currently receiving. Phase I, “shovel ready” is hopefully by Aug 1; Phase 2 is hopefully a few months after Phase I. Discussion from Contractor about building process. Discussion from Board on timeframe and moving forward. Mr. Stallons stated that another group does have interest in the community center process and will be discussed in executive

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session. Mr. Stallons recommended taking the presentation we’ve heard today, look at it in context of the other group’s presentation in Executive Session without taking action today. Discussion on community center budget, provided in Board information packet. Further discussion on access to Community Center. Mr. Sutton expressed that he would prefer not to move forward until there is approval from VEA. Ms. Keyes responded that she would prefer the County approve operating fund allocations before VEA approves anything. Mr. Stallons thanked Mr. Sutton for the presentation and that sentiment was echoed by the Board.

10. CEO and Staff Reports.

a. CEO Report. Presented by Mr. Stallons, consistent with submitted report. No

questions from the Board.

b. Safety Report. Presented by Mr. Fieldsted, consistent with previously submitted report. No questions from the Board.

c. Human Resources Report. Stacy Pung presented the report consistent with previously submitted information.

d. Accounting, Customer Service and Fleet Report. Presentation consistent with

written report.

e. Power Resource Report. Presented by Mr. Maughan consistent with written report. Board took a break at 10:25 A.M., reconvened at 10:40 A.M.

f. Engineering, Operations and Projects Reports. Presented by Mr. Andresen,

consistent with pre-submitted written report. Outages have been due to bird’s nesting (ravens). Reviewing productivity numbers pre and post COVID. Discussion from Board about communicating outages to members and reason for outages.

g. VCA/Broadband Report. Presented by Mr. Johnson, consistent with pre-submitted

report. Noted significant increase in broadband applications. Reported on efforts to provide broadband and technology to all schools within VEA’s territory.

Ms. Caird moved to approve; Ms. Groenert seconded. No further discussion. All department reports approved unanimously.

The Directors recessed at 11:20 AM from Regular Session and Executive Session reconvened at 12:20 p.m.

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There being no further matters to discuss, Ms. Caird moved to adjourn the meeting. Mr. Shirley seconded the motion. The motion was approved unanimously. The Executive Session and May 2020 Regular Board Meeting were adjourned at 4:59 P.M.

DATED this 24 th day of June, 2020.

Kathleen Keyes, President Terrie D’Antonio, Secretary

Tab 2

Financials

Monthly Reports and Financial ResultsAs of May 31, 2020

VALLEY ELECTRIC ASSOCATION CONSOLIDATED YEAR OVER YEAR MONTHLY RESULTS MAY 2020 STATEMENT - UNAUDITED

2020 2019 VARIANCE BUDGET VARIANCE

VEA 4,901,142$ 4,507,449$ 8.7% 4,645,898$ 5.5%VETA 565,965$ 664,542$ -14.8% 670,190$ -15.6%Comms 745,230$ 622,937$ 19.6% 748,227$ -0.4%Operating Income 6,212,338$ 5,794,928$ 7.2% 6,064,315$ 2.4%Total Cost of Power 2,591,538 2,676,087 3.2% 2,563,420 -1.1% GROSS OPERATING MARGIN 3,620,800 3,118,841 16.1% 3,500,895 3.4%

Distribution Expense - Operation 847,631 789,734 -7.3% 777,731 -9.0%Distribution Expense - Maintenance 260,183 287,505 9.5% 322,069 19.2%Consumer Accounts Expense 185,079 203,685 9.1% 215,748 14.2%Customer Service & Informational Expense 52,714 68,421 23.0% 62,305 15.4%Sales Expense 44,191 75,831 41.7% 49,968 11.6%Administrative and General Expense 618,995 958,941 35.5% 704,783 12.2% TOTAL OPERATING EXPENSES 2,008,793 2,384,118 15.7% 2,132,603 5.8%

Fixed Costs (Depr. & Taxes) 1,110,252 1,072,312 -3.5% 1,111,548 0.1%Interest Expense (LTD) 738,285 754,444 2.1% 761,358 3.0%Interest Charged to Construction 1,593 1,096 -45.4% 1,220 0.0%Interest Expense - Other 33,697 167,672 79.9% 32,160 -4.8%Other Deductions 9,781 11,506 15.0% 6,763 -44.6% TOTAL EXPENSES FOR VEA 3,902,400 4,391,147 11.1% 4,045,652 3.5%

NET OPERATING MARGIN (281,600) (1,272,306) 77.9% (544,757) 48.3%

Interest Income (Non-Operating) 2,673 17,439 -84.7% 8,080 -66.9%Non-Operating Margins - Other 1,046 (32,352) 103.2% (9,775) 110.7%Other - Capital Credits & Patronage Dividends - - - - 0.0%

NET NON-OPERATING MARGIN 3,719 (14,913) 124.9% (1,695) 319.4%

TOTAL MARGINS (277,881)$ (1,287,219)$ 78.4% (546,452)$ 49.1% EBITDA 1,602,226$ 723,217$ 121.5% 1,361,529$ 17.7%

YTD(MAY) YTD(MAY) YTD(MAY) MAY

2019 2020 BUD 2020 Dollars % Dollars %

Operating Revenue and Patronage Capital 33,332,178 34,005,990 33,998,217 6,212,338 673,812 2.0% 7,773 0.0%

Power Production Expense - -

Cost of Purchased Power 16,107,202 14,655,653 14,899,776 2,591,538 1,451,550 9.0% 244,123 1.6%

Distribution Expense - Operation 3,597,753 3,976,190 3,910,475 847,631 (378,437) -10.5% (65,715) -1.7%

Distribution Expense - Maintenance 1,566,315 1,413,679 1,609,798 260,183 152,636 9.7% 196,120 12.2%

Consumer Accounts Expense 1,023,629 1,014,909 1,081,134 185,079 8,720 0.9% 66,225 6.1%

Customer Service and Informational Expense 245,750 307,108 311,387 52,714 (61,359) -25.0% 4,278 1.4%

Sales Expense 380,237 200,727 249,595 44,191 179,510 47.2% 48,868 19.6%

Administrative and General Expense 5,699,425 3,618,194 3,517,870 618,995 2,081,231 36.5% (100,324) -2.9%

Total Operation & Maintenance Expense 28,620,312 25,186,461 25,580,035 4,600,331 3,433,851 12.0% 393,574 1.5%

Depreciation & Amortization Expense 5,319,520 5,458,266 5,451,302 1,093,730 (138,746) -2.6% (6,964) -0.1%

Tax Expense - Property & Gross Receipts 0 - 0 -

Tax Expense - Other 96,764 83,719 82,500 16,522 13,045 13.5% (1,219) -1.5%

Interest on Long-Term Debt 3,771,728 3,742,027 3,813,471 738,285 29,702 0.8% 71,445 1.9%

Interest Charged to Construction (Credit) 5,070 5,611 6,100 1,593 (541) -10.7% 489 8.0%

Interest Expense - Other 842,359 184,868 176,871 33,697 657,490 78.1% (7,997) -4.5%

Other Deductions 57,584 50,692 33,817 9,781 6,892 12.0% (16,875) -49.9%

Total Cost of Electric Service 38,713,338 34,711,643 35,144,096 6,493,938 4,001,695 10.3% 432,453 1.2%

Patronage Capital & Operating Margins (5,381,160) (705,653) (1,145,879) (281,600) 4,675,507 86.9% 440,226 38.4%

Non Operating Margins - Interest 98,525 36,909 40,320 2,673 (61,616) -62.5% (3,411) -8.5%

Allowance for Funds Used During Construction 0 0 0 0 0 - 0 -

Income (Loss) from Equity Investments 0 - 0 -

Non Operating Margins - Other 156,351 (31,637) (48,875) 1,046 (187,989) -120.2% 17,238 35.3%

Generation & Transmission Capital Credits 0 - 0 -

Other Capital Credits & Patronage Dividends 427,964 495,607 500,000 0 67,643 15.8% (4,393) -0.9%

Extraordinary Items 0 - 0 -

Patronage Capital or Margins (4,698,321) (204,774) (654,434) (277,881) 4,493,546 95.6% 449,659 68.7%

EBITDA 4,654,282 8,768,838 8,384,366 1,602,226 4,114,556 88.4% 384,472 4.6%

2020 VS 2019 2020 VS BUD

PERIOD ENDED MAY 31, 2020

VALLEY ELECTRIC ASSOCIATIONCONSOLIDATED INCOME STATEMENT - UNAUDITED

ASSETS AND OTHER DEBITS LIABILITIES AND OTHER CREDITS

1. Total Utility Plant in Service $339,552,556 30. Memberships $194,860

2. Construction Work in Progress 4,065,085 31. Patronage Capital 130,927,937

3. Total Utility Plant (1+2) 343,617,642 32. Operating Margins - Prior Years (63,694,146)

4. Accum. Provision for Depreciation and Amort 98,963,514 33. Operating Margins - Current Year (705,653)

5. Net Utility Plant (3-4) 244,654,128 34. Non-Operating Margins 500,879

6. Nonutility Property - Net 0 35. Other Margins & Equities 10,663,406

7. Investment in Subsidiary Companies 0 36. Total Margins & Equities (30 thru 35) 77,887,283

8. Invest. in Assoc. Org. - Patronage Capital 5,623,419 37. Long-Term Debt RUS (Net) 0

9. Invest. in Assoc. Org. - Other - General Funds 0 (Payments-Unapplied ($___________)

10. Invest in Assoc. Org. - Other - Nongeneral Funds 1,846,304 38. Long-Term Debt - FFB - RUS Guaranteed (Net) 0

11. Investments in Economic Development Projects (Payments-Unapplied ($___________)

12. Other Investments 1,065,373 39. Long-Term Debt - Other - RUS Guaranteed 0

13. Special Funds 0 40. Long-Term Debt - Other(Net) 226,899,263

14. Total Other Property & Investments (6 thru 13) 8,535,097 41. Long-Term Debt - RUS Economic Development (Net) 0

15. Cash-General Funds 3,744,688 42. Payments - Unapplied16. Cash-Construction Funds-Trustee 0 43. Total Long-Term Debt (37 thru 41 - 42) 226,899,263

17. Special Deposits 4,392,396 44. Obligations Under Capital Leases 1,792,359

18. Temporary Investments 0 45. Accumulated Operating Provisions - Asset Retirement Obligations 2,410,416

19. Notes Receivable - Net 0 46. Total Other Noncurrent Liabilities (44+45) 4,202,775

20. Accounts Receivable - Net Sales of Energy 5,691,352 47. Notes Payable 0

21. Accounts Receivable - Net Other 1,432,633 48. Accounts Payable 5,922,718

22. Renewable Energy Credits 0 49. Consumers Deposits 815,635

23. Materials & Supplies - Electric and Other 4,478,950 50. Current Maturities Long-Term Debt 8,017,022

24. Prepayments 1,736,047 51. Current Maturities Long-Term Debt-Economic Dev.

25. Other Current & Accrued Assets 4,029 52. Current Maturities Capital Leases 3,484,425

26. Total Current & Accrued Assets (15 thru 25) 21,480,095 53. Other Current & Accrued Liabilities 5,203,292

27. Regulatory Assets 0 54. Total Current & Accrued Liabilities (47 thru 53) 23,443,092

28. Deferred Debits 60,305,437 55. Regulatory Liabilities 0

29. Total Assets & Other Debits (5+14+26+thru 28) $334,974,756 56. Deferred Credits 2,542,343

57. Total Liabilities & Other Credits (36+43+46+54 thru 56) $334,974,756

VALLEY ELECTRIC ASSOCIATIONAS OF MAY 31, 2020

CONSOLIDATED BALANCE SHEET - UNAUDITED

VALLEY ELECTRIC ASSOCIATIONADDITIONAL SUPPORTING REPORTS

AS OF MAY 31, 2020

MAY 2020 Current Month Year to Date2020 2019 Change Var. 2020 2019 Change Var.

Member Sales 37,176,129 35,991,819 1,184,309 3.3% 216,825,498 223,554,441 (6,728,942) -3.0%SCE Interchange 1,599,240 1,779,480 (180,240) -10.1% 5,597,760 6,897,600 (1,299,840) -18.8%VEA Internal Use 181,265 161,377 19,888 12.3% 993,014 966,783 26,231 2.7%Total Sales 38,956,634 37,932,676 1,023,957 2.7% 223,416,272 231,418,824 (8,002,551) -3.5%

Purchases 42,450,331 37,309,157 5,141,174 13.8% 225,917,693 228,778,603 (2,860,910) -1.3%SCE Interchange 4,452,840 3,615,840 837,000 23.1% 9,285,120 8,805,240 479,880 5.4%Total Purchases 46,903,171 40,924,997 5,978,174 14.6% 235,202,813 237,583,843 (2,381,030) -1.0%

System Losses 16.94% 7.31% 9.63% 5.01% 2.59%

System Demand 120,739 77,355 43,384 56.1% 126,145 130,634 (4,489) -3.4% Month Demand Occurred MAY'20 MAY'19 FEB'20 JAN'19

ENERGY REVENUEResidential $2,572,591 $2,174,407 $398,184 18.3% $16,607,394 $15,594,976 $1,012,418 6.5%Irrigation $461,140 $433,013 $28,127 6.5% $742,720 $699,167 $43,552 6.2%Commercial - <50 KW $414,490 $422,369 ($7,878) -1.9% $2,280,161 $2,211,417 $68,744 3.1%Commercial - 50-249 KW $427,371 $477,092 ($49,720) -10.4% $2,401,176 $2,361,486 $39,690 1.7%Commercial - 250 KW & Up $484,238 $490,593 ($6,355) -1.3% $2,369,207 $2,458,234 ($89,027) -3.6%Contract Sales $218,403 $312,509 ($94,106) -30.1% $1,733,374 $2,133,430 ($400,057) -18.8%Street Lighting $3,760 $3,756 $5 0.1% $18,095 $17,871 $224 1.3%Total Revenue $4,581,994 $4,313,738 $268,256 6.2% $26,152,127 $25,476,582 $675,545 2.7%

(0) 0 0ENERGY SALES

Residential 17,972,916 14,754,849 3,218,067 21.8% 121,184,204 121,321,272 (137,068) -0.1%Irrigation 4,636,864 4,577,023 59,841 1.3% 7,138,600 7,147,843 (9,243) -0.1%Commercial - <50 KW 2,839,765 2,903,930 (64,165) -2.2% 16,003,520 16,431,091 (427,571) -2.6%Commercial - 50-249 KW 3,963,417 4,409,185 (445,768) -10.1% 24,606,148 22,617,273 1,988,875 8.8%Commercial - 250 KW & Up 4,610,839 4,711,256 (100,417) -2.1% 22,563,946 24,259,544 (1,695,598) -7.0%Contract Sales 3,142,038 4,625,833 (1,483,796) -32.1% 25,278,887 31,728,703 (6,449,815) -20.3%Street Lighting 10,290 9,743 547 5.6% 50,193 48,715 1,478 3.0%Total Sales (kwh) 37,176,129 35,991,819 1,184,309 3.3% 216,825,498 223,554,441 (6,728,942) -3.0%

AVG KWH SALESResidential 870 735 135 18.4% 1,173 1,209 (36) -3.0%Irrigation 21,077 20,433 644 3.2% 6,490 6,382 108 1.7%Commercial - <50 KW 1,331 1,358 (27) -2.0% 1,500 1,536 (36) -2.3%Commercial - 50-249 KW 17,934 19,684 (1,750) -8.9% 22,268 20,194 2,074 10.3%Commercial - 250 KW & Up 118,227 134,607 (16,380) -12.2% 115,713 138,626 (22,913) -16.5%Contract Sales 3,142,038 4,625,833 (1,483,795) -32.1% 5,055,777 6,345,741 (1,289,964) -20.3%Street Lighting 1,715 3,248 (1,533) -47.2% 1,673 3,248 (1,575) -48.5%Total 1,597 1,586 11 0.7% 1,863 1,970 (107) -5.4%

CONSUMERS MAY'20 MAY'19 Change MAY'20 MAY'19 ChangeResidential 46 33 13 20,657 20,070 587 2.9%Irrigation (3) 4 (7) 220 224 (4) -1.8%Commercial - <50 KW (6) 7 (13) 2,134 2,139 (5) -0.2%Commercial - 50-249 KW 0 1 (1) 221 224 (3) -1.3%Commercial - 250 KW & Up 0 0 0 39 35 4 11.4%Contract Sales 0 0 0 1 1 0 0.0%Street Lighting 1 0 1 6 3 3 100.0%Total Consumers 38 45 (7) 23,278 22,696 582 2.6%

REVENUE PER KWHResidential 0.1431 0.1474 (0.0042) -2.9% 0.1370 0.1285 0.0085 6.6%Irrigation 0.0995 0.0946 0.0048 5.1% 0.1040 0.0978 0.0062 6.4%Commercial - <50 KW 0.1460 0.1454 0.0005 0.4% 0.1425 0.1346 0.0079 5.9%Commercial - 50-249 KW 0.1078 0.1082 (0.0004) -0.3% 0.0976 0.1044 (0.0068) -6.5%Commercial - 250 KW & Up 0.1050 0.1041 0.0009 0.9% 0.1050 0.1013 0.0037 3.6%Contract Sales 0.0695 0.0676 0.0020 2.9% 0.0686 0.0672 0.0013 2.0%Street Lighting 0.3654 0.3855 (0.0200) -5.2% 0.3605 0.3668 (0.0063) -1.7%Total 0.1233 0.1199 0.0034 2.8% 0.1206 0.1140 0.0067 5.8%

VALLEY ELECTRIC ASSOCIATION, INC.13 Month Cash Flow

Sources of Cash May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20

Energy & Broadband Billing 5,829,173 4,817,736 6,275,117 7,181,800 6,955,970 7,001,334 5,110,451 5,754,027 7,143,788 6,734,401 6,494,935 5,563,991 5,416,626Line of CreditCapital Credits/Interest Income 10,966 12,156 11,263 4,600 343,439 18,625 4,764 10,360 5,417 2,881 3,474 21,745 277Aid to Construction 93,301 60,581 143,628 284,580 71,720 260,138 136,193 173,484 185,264 253,626 195,662 82,575 128,568Accounts Receivable 1,196,193 409,920 429,654 1,174,804 1,556,632 1,362,504 548,247 2,549,480 410,265 560,630 1,091,801 1,232,974 237,437CAISO/AEPCO 54,489 50,651 338,487 144,742 205,926 203,897 36 46,306 84 225,297 296,051 212,508Total Sources of Cash 7,184,122 5,351,045 6,859,661 8,984,272 9,072,502 8,848,527 6,003,552 8,487,387 7,791,040 7,551,622 8,011,169 7,197,336 5,995,416

VALLEY ELECTRIC ASSOCIATION, INC.13 Month Cash Flow

Uses of Cash May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20

PlantPlant Materials VEA 119,841 130,646 144,466 78,038 194,049 52,184 152,369 252,005 17,668 61,266 87,430 94,255 23,352 VETA 31,544 2,624 VCA 90,581 17,509 213,027 68,676 115,797 5,829 139,316 42,454 160,176 119,732 6,873 145,429 92,076Construction Work in Progress VEA 138,336 48,104 140,509 104,280 79,478 20,681 1,387 99,093 7,500 13,976 9,500 93,219 VETA 28,354 136,235 575,731 110,751 747,469 138,121 28,244 91,147 11,852 13,683 1,274 21,475 VCA 40,000 59,640 87,261 69,500 8,740 32,988 47,619 197,372 23,655 22,083 16,943General Plant 56,411 7,681 27,972 28,050 38,927 32,700 10,265 44,073 5,462 10,585 25,687Total Plant 448,655 392,133 641,676 903,906 536,787 889,825 517,739 454,496 286,756 448,271 146,603 366,845 179,533

InvestmentsTotal Investments 0 0 0 0 0 0 0 0 0 0 0 0 0

Debt ServiceLong Term Debt - Principal 100,464 1,439,848 100,959 630,943 1,454,667 101,703 98,863 1,472,735 99,382 99,639 1,758,567 100,170 103,473Long Term Debt - Interest 197,674 2,034,450 196,141 316,114 1,993,543 190,350 164,908 1,846,301 172,536 161,758 1,536,119 153,180 144,177Line of CreditTotal Debt Service 298,139 3,474,298 297,100 947,058 3,448,210 292,053 263,771 3,319,036 271,919 261,397 3,294,686 253,350 247,650

OperationsPurchased Power/Margin Calls 2,101,322 2,361,796 2,544,922 3,226,335 2,899,754 2,518,846 2,293,678 2,863,009 3,636,297 2,928,518 2,919,144 2,103,868 2,144,780Gross Payroll 1,141,056 1,163,806 1,218,773 1,585,984 1,073,076 1,131,490 1,191,902 1,112,963 1,934,746 1,106,840 1,093,053 1,132,633 1,113,900NRECA Benefits 990,101 1,036,334 1,006,630 1,041,203 391,383 477,565 412,256 383,305 1,196,665 1,259,698 995,366 1,116,825 700,139Capital Credits 1,376 44,851 14,263 37,830 28,527 102,511 34 35,405 9,853 17,170 4,373 27,989 10,645Transmission SaleOperating Material & Services 1,276,666 1,047,430 980,820 1,505,253 933,058 1,536,656 947,872 1,375,556 1,251,810 886,736 1,122,453 1,104,782 1,138,534Total Operations 5,510,522 5,654,217 5,765,407 7,396,605 5,325,798 5,767,068 4,845,742 5,770,238 8,029,371 6,198,962 6,134,389 5,486,097 5,107,998

Total Uses of Cash 6,257,316 9,520,647 6,704,183 9,247,569 9,310,795 6,948,945 5,627,252 9,543,770 8,588,046 6,908,629 9,575,678 6,106,292 5,535,181

Net Cash Increase/(Decrease) 926,806 (4,169,602) 155,478 (263,297) (238,293) 1,899,582 376,300 (1,056,383) (797,006) 642,993 (1,564,509) 1,091,044 460,235

VALLEY COMMUNICATIONS

MONTHLY REPORTS &FINANCIAL RESULTS

AS OF MAY 31, 2020

ASSOCIATION

YTD(MAY) YTD(MAY) YTD(MAY) MAY

2019 2020 BUD 2020 Dollars % Dollars %Revenue - Internet 2,871,740 3,600,508 3,480,150 731,739 728,768 25.4% 120,358 3.5%Cost of Sales - Internet 1,266,974 1,496,877 1,548,936 342,192 (229,903) -18.1% 52,059 3.4%Gross Margins - Internet 1,604,766 2,103,631 1,931,215 389,547 498,866 31.1% 172,417 8.9%Revenue - VOIP 64,245 103,586 114,359 17,258 39,341 61.2% (10,773) -9.4%Cost of Sales - VOIP 78,780 73,482 81,923 15,726 5,298 6.7% 8,441 10.3%Gross Margins - VOIP (14,536) 30,104 32,436 1,532 44,640 307.1% (2,332) -7.2%VEEK Revenue 10,905 9,559 11,916 1,219 (1,346) -12.3% (2,357) -19.8%Smart Home Revenue - - - - 0 0.0% 0 0.0%TOTAL REVENUE 2,946,278 3,713,652 3,606,425 750,215 767,374 26.0% 107,227 3.0%Total Cost of Sales 1,457,444 1,570,733 1,630,996 358,292 (113,288) -7.8% 60,264 3.7%Gross Margins 1,488,834 2,142,920 1,975,429 391,923 654,086 43.9% 167,491 8.5%Maintenance Expense 34,966 47,855 28,980 5,003 (12,889) -36.9% (18,875) -65.1%Consumer Accounts Expense 137,146 142,967 214,292 31,451 (5,821) -4.2% 71,325 33.3%Customer Service (VEEK) Expense - - - - 0 0.0% 0 0.0%Sales Expense 98,531 32,208 62,034 4,552 66,323 67.3% 29,826 48.1%Admin and General Expense 358,303 385,604 391,135 62,131 (27,301) -7.6% 5,531 1.4%Total Controllable Costs 628,947 608,635 696,441 103,136 20,312 3.2% 87,807 12.6%Total Operating Expenses 2,086,391 2,179,367 2,327,438 461,428 (92,976) -4.5% 148,071 6.4%Depreciation & Amortization Expense 2,089,444 2,222,613 2,214,130 446,902 (133,169) -6.4% (8,483) -0.4%Tax Expense-Other 57,551 82,611 82,500 16,522 (25,060) -43.5% (111) -0.1%Interest Expense 269,752 176,912 176,871 32,181 92,840 34.4% (41) 0.0%Int Charged to Const 0 0.0% 0 0.0%Other Deductions (283) - - - (283) -100.0% 0 0.0%Total Expenses 4,502,855 4,661,503 4,800,939 957,033 (158,648) -3.5% 139,436 2.9%Net Margins (1,556,577) (947,851) (1,194,514) (206,818) 608,727 39.1% 246,663 20.6%EBITDA 860,170 1,534,285 1,278,987 288,787 674,115 78.4% 255,298 20.0%

PERIOD ENDED MAY 31, 2020

VALLEY COMMUNICATION ASSOCIATIONCONSOLIDATED INCOME STATEMENT - UNAUDITED

2020 VS 2019 2020 VS BUD

ASSETS AND OTHER DEBITS LIABILITIES AND OTHER CREDITS 1. Total Plant in Service $45,809,974 30. Memberships $0 2. Construction Work in Progress 1,298,896 31. Patronage Capital 0 3. Total Plant (1+2) 47,108,871 32. Operating Margins - Prior Years (21,550,556) 4. Accum. Prov for Deprec and Amort 15,772,627 33. Operating Margins - Current Year (1,629,901) 5. Net Plant (3-4) 31,336,243 34. Non-Operating Margins 0 14. Total Other Property & Investments 0 35. Other Margins & Equities 45,000,000 15. Cash-General Funds 15,330 36. Total Margins & Equities (30 thru 35) 21,819,542 16. Cash-Construction Funds-Trustee 0 40. Long-Term Debt - Other(Net) 0 17. Special Deposits 0 43. Total Long-Term Debt 0 18. Temporary Investments 0 44. Obligations Under Capital Leases 1,792,359 19. Notes Receivable - Net 0 46. Total Other Noncurrent Liabilities 1,792,359 20. Accounts Receivable Trade 544,125 47. Notes Payable 0 21. Accounts Receivable - Net Other 0 48. Accounts Payable 9,789,074 23. Materials & Supplies 1,468,459 49. InterCompany payable 0 24. Prepayments 36,356 50. Current Maturities Long-Term Debt 0 25. Other Current & Accrued Assets 0 52. Current Maturities Capital Leases 3,484,425 26. Total Current & Accrued Assets 2,064,270 53. Other Current & Accrued Liabilities 0 28. Deferred Debits 3,484,887 54. Total Current & Accrued Liabilities 13,273,499

56. Deferred Credits 0 29. Total Assets & Other Debits $36,885,400 57. Total Liabilities & Other Credits $36,885,400

VALLEY COMMUNICATION ASSOCIATIONAS OF MAY 31, 2020

BALANCE SHEET - UNAUDITED

Tab 2A

Unfinished Business

Tab 3

New Business

Early Capital Credit Retirement Requests

June 24, 2020

Estimated Estimated MemberName CC Amount NPV Difference District Number Years

1 Estate of $6,017.04 $3,676.19 $2,340.85 1 1999-2014

2 Estate of $3,336.81 $2,341.33 $995.48 1 1991-2011

3 Estate of $1,086.68 $541.67 $545.01 6 2010-2017

4 Estate of $5,982.65 $3,562.44 $2,420.21 5 1997-2017

5 Estate of $2,494.26 $1,315.39 $1,178.87 1 2003-2017

6 Estate of $1,460.68 $696.93 $763.75 1 2010-2017

7 Estate of $27.72 $12.09 $15.63 1 2017

8 Estate of $84.16 $36.72 $47.44 6 2017

9 Estate of $4,474.42 $2,299.44 $2,174.98 1 2006-2017

10 Estate of $9,045.98 $5,782.33 $3,263.65 1 1991-2017 Totals $34,010.40 $20,264.53 $13,745.87

APPROVED at the June 24, 2020 Board of Directors Meeting

Steve Morrison, Chief Financial Officer

Tab 4A

Chief Executive Officer

Report

June 24, 2020

CEO BOARD REPORT

Business Meetings Several meetings with consultant developing Solar

Feasibility Study. Ongoing COVID-19 weekly team meetings Several Strategy team meetings Meeting with County about solar project Power Supply strategy & risk management meetings DER Strategy Team meeting Broadband strategy meeting Weekly meetings with department heads Several Lobby review meetings concerning our

reopening plan

Business Meetings Attended Valley Annual Meeting Townsite meeting with CAISO Meet with Cost of Service consultant Meet with Calix to review business proposal Meet with consultants to discuss avoided costs Met with Nye County to discuss Solar Energy Zones Reviewed power supply invoices

COVID-19 Update Work is ongoing to reopen lobby in

accordance with Nevada Roadmap to Recovery, CDC & OSHA guidelines.

Lobby set to reopen for members on Monday June 29th.

DER Team Update Working with rate consultant to

investigate equitable options Investigating Community Solar

marketing plan Partnering with consultant to develop

rooftop solar business plan Meeting with potential solar business

partners

Financial & Budget Review Continuing to develop budget details in BudgetPro Developing management cost report to break costs

into three business streams: Power Supply & Delivery Electric Distribution Communications

Updating Financial Forecast with CFC & CoBank Working with CFC & CoBank to move lines of credit

to long term loan Identifying benchmark opportunities

Strategic Plan Update Management Team met June 18th with the following

strategy teams presenting their final report:

Financial Member & Customer Satisfaction

and GO-To Energy Advisor Culture of Excellence Safety & Reliability

All the teams are prepared to present their action plans to the board in June.

Tab 4B

Safety Report

556,401 Hours without Lost time or Recordable Injury

3 Near Misses Reported

0 Incidents Reported

KPI Threshold Target Stretch YTD

Incident Rate 0.00 0.00

Severity Rate 0.00 0.00

EMOD 1.01 1.00 0.95 1.01

Safety ReportJune 2020

Operations Meeting Subject: Bucket Truck Rescue

General Session: Departmental

Crew Visits: 7

Job Briefings Reviewed: 109. 95/106 employees have signed

up to use the Safe App for field reporting.

Next Safety Goal: 2 years without a Recordable Injury or Lost

Time (July 3,2020)

Tab 4B

Human Resources Report

HUMAN RESOURCES

June 2020

Projects & InitiativesStrategic Initiatives• Culture of Excellence - Objectives

• Create Positive Culture • Safety Improvement Plan• Leadership Development (competencies)• Employee Training and Engagement

• Teams are prepared to present

• Development of a new Performance Management Plan and Training• Cross Training• Succession Planning• Decision Making Training

Projects & Initiatives

COVID-19• Tracking the Cross Training of Critical Functions • Tracking and Providing Regular Updates of the Progress

of the Virus; World, U.S., Nevada, Nye County, and VEA Districts (where information is available)

• Assisted with Developing a Master Roadmap to Recovery for Employees and Reopening our Business

• Progress on the updating of company policies

Tab 4B

Accounting

Report

Valley Electric Board of Directors Expenses 2020

Board Expenses by District - Detail of ExpensesMeeting Food/ iPad Wifi/ Other

Board Meetings Special Meeting Committees Other meeting Mileage Supplies Phone Region 9 Conf Director School Other Conf Board Expenses Total

District 1 - Caird 6,250.00 500.00 1,800.00 600.00 53.65 301.89 271.41 - - - - 9,776.95

District 2 - Groenert 6,250.00 500.00 200.00 900.00 212.65 301.89 271.41 - - - 37.80 8,673.75

District 3 - Shirley 5,000.00 500.00 1,200.00 700.00 603.75 301.89 271.41 - - - 37.80 8,614.85

District 4 - Keyes 6,750.00 600.00 - 1,000.00 1,006.25 301.89 271.41 - 959.00 - - 10,888.55

District 5 - D'Antonio 6,250.00 500.00 1,100.00 650.00 275.33 301.89 271.41 - - - - 9,348.63

District 6 - Barber 6,250.00 500.00 - 900.00 - 301.89 271.41 - - - 37.80 8,261.10

Totals 36,750.00 3,100.00 4,300.00 4,750.00 2,151.63 1,811.33 1,628.48 - 959.00 - 113.40 55,563.84

Board Expenses by Month 2020

Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sept 2020 Oct 2020 Nov 2020 Dec 2020 TotalDistrict 1 2,435.04 2,365.44 1,281.22 1,954.13 1,741.13 - - - - - - - 9,776.95 District 2 1,907.79 2,389.49 1,481.22 1,554.13 1,341.13 - - - - - - - 8,673.75 District 3 2,309.14 2,779.24 31.22 1,754.13 1,741.13 - - - - - - - 8,614.85 District 4 2,415.09 3,037.99 1,581.22 1,454.13 2,400.13 - - - - - - - 10,888.55 District 5 2,320.59 2,301.57 1,281.22 2,104.13 1,341.13 - - - - - - - 9,348.63 District 6 1,850.39 2,234.24 1,281.22 1,354.13 1,541.13 - - - - - - - 8,261.10

Total 13,238.02 15,107.94 6,937.34 10,174.75 10,105.79 - - - - - - - 55,563.84

Tab 4B

Power Resource

Report

JUNE 2020

POWER RESOURCES BOARD REPORT

May 2020 Energy & Load

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

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 31

kW

Daily Peak

Demand Loading

Mar-20 Apr-20 May-20

May 2020 Energy & Load

Our total energy purchases for May 2020 were 42,450,331 kWhs andpeaked with a demand of 120,739 kW’s on May 28. CAISO peaked at37,983 MW on May 27.

Our total energy purchases for April 2020 were 36,699,076 kWhs andpeaked with a demand of 85,656 kW’s on April 30. CAISO peaked at30,658 MW on April 28.

Our total energy purchases for March 2020 were 42,653,488 kWhs andpeaked with a demand of 89,200 kW’s on March 19. CAISO peaked at29,279 MW on March 5.

Real-time Market prices for May

• Mead ON-Peak for May averaged $17.07/MWh with average dailyprices ranging anywhere from $9.00/MWh to $28.00/MWh.

• SP15 ON-Peak for May averaged about $18.64/MWh with averagedaily prices ranging anywhere from $10.00/MWh to $30.25/MWh.

Energy Purchases (kWh)

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

January February March April May June July August September October November December

2018 2019 2020

Peak Load(kW)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

January February March April May June July August September October November December

2018 2019 2020

51%

23%

6%

20%

May 2020 Energy Resource Mix

Baseload Hydro Community Solar Market

$35.75$20.04

$60.89

$21.50

May 2020 Energy Cost

Baseload Hydro Community Solar Market

YTD COP $64.87

Power Cost vs Budget

May 2020 YTD Budget YTD 20202020 Price YTD Price YTD Price vsMay MWh May MWh May MWh Budget

Total Load (KWh) 42,450,331 225,911,829 226,794,000 (882,171) Cost of Purchased Power 1,810,858 42.66$ 9,846,182 43.58$ 10,032,313 44.24$ (186,131)

Transmission Expense 692,786 16.32$ 4,093,037 18.12$ 3,967,095 17.49$ 125,941 Regional Market Expense 87,894 2.07$ 716,435 3.17$ 900,367 3.97$ (183,933)

Total Cost of Power 2,591,538 61.05$ 14,655,653 64.87$ 14,899,776 65.70$ (244,123)

Our YTD all-in Cost of Power was $64.87 MWh through May 2020. OurPPA calculation for Avoided Cost of power for the 12 months ended May2020 is $0.0419 per KWh. The Weighted Average of Locational MarginalPricing (LMP) during solar energy production calculation for AvoidedCost of Power is $0.0228

Congestion Revenue Rights (CRR)

The Monthly Auction Price for Mead to VEA has remainedrelatively flat since the negative congestion pattern emerged atthe beginning of this year. The price for On Peak went from$0.04 in May to $0.02 and the Off Peak went from $0.01 to$0.00. DA congestion has remained moderate compared to theprice volatility seen from January through April, going from -$1.20 in May down to -$2.38 so far this June for On Peak. VEAcleared 112.254 MW of 113.254 offered in the June MonthlyAuction for a total of $27,054.43

Resource Adequacy

As a member of CAISO, VEA is subject to Resource Adequacy (RA)requirements. Resource Adequacy is a planning and procurement processdesigned to ensure adequate resources to serve all CAISO customers inreal-time. All Load Serving Entities (LSEs) must meet a PlanningReserve Margin for their load obligations of 15% of the peak load eachmonth.

There are three types of RA including System, Flexible (Flex), and LocalRA. VEA has obligations for System and Flex RA, but not Local RA atthis time. Our 2020 RA obligations are identified as follows:

VEA is able to use our energy imports from Firm Liquidated Damages (LD)Contracts such as BP and Skylar as well as our Hydro resources to counttowards our system RA obligation. This meets most of our system RArequirements leaving about 66 MW of System and 326 MW of Flexobligations to be purchased to meet the 2020 obligations. Currently, VEAhas the following remaining RA needs for the remainder of 2020.

Recently, we were able to acquire our August & September needsthrough market purchases and are currently soliciting bids for October.

California Carbon Compliance

As a member of CAISO, VEA is subject to the California Air Resource Board(CARB) rules. Because VEA imports and exports unspecified electricity into and outof California, we are required to submit an annual report of our electricitytransactions to determine our CARB obligations. These obligations are calculatedbased on our energy imports into CAISO less our exports. We recently completedour greenhouse gas (GHG) reporting workbook calculating our 2019 carboncompliance obligation at 9,000 metric tons which is an increase of 1,458 tons. VEA isrequired to have our GHG Emission report reviewed by an accredited verifier. Wehave engaged LOCUS Technologies to perform our verification services. Normallythis includes a mandatory site visit, but due to the COVID-19 restrictions, CARB hasapproved this site visit to be a virtual site visit. Our virtual site visit is scheduled forMonday June 22.

VEA has purchased the necessary 9,000 California Carbon Allowances (CCA’s) fromVitol Inc. for $16.55 per CCA (total $148,950) which was an improvement from theprior year purchase price of $18.15 per CCA. VEA expects to receive a positiveconfirmation of our 2019 CARB reporting.

CAISO MIC ALLOCATION PROCESS

CAISO has proposed its plans for future Maximum Import Capacity (MIC)stabilization. This impacts VEA’s ability to import resource adequacy fromoutside of the CAISO balancing area. We have been allocated 150 MW ofMIC for a 10-year period under our original CAISO transition agreement,which was executed on January 3, 2013. After two rounds of StrawProposals, a Draft Final Proposal is expected to be issued on July 13, 2020.VEA expects that our new allocation will decrease to about 22 MW based onthe load ratio share (LRS) calculation. This means that VEA will have topurchase additional import capacity for RA being imported from outside theCAISO area, or purchase RA inside of CAISO. We have been workingclosely with Capital Dynamics, with whom we have a PPA for our base loadpower supply and RA needs starting in 2022 for the next 20 years. As theirproject is outside of CAISO, we will be exploring all options to mitigate theexpected MIC allocation decrease for VEA.

VEA Corporate Policy #113 outlines the hedging policy that guides our forwardpower supply portfolio strategy to manage energy costs and risks. The followingtable illustrates the minimum percentages of energy hedges required.

Energy Hedging

VEA’s current Energy Hedging status for the remainder of 2020 is shown asfollows:

We are meeting the hedging requirements and will continue to manage ourpower supply in accordance with this policy

Lake Mead Water Level

WATER LEVEL1,089.38Feet MSL

June 15, 202010:00 AM

Level is 139.62 feetbelow full pool of

1,229.00

Tab 4B

Customer Service& Fleet Reports

Monthly Customer Service Report

June 2020

May 2020

Memberships - There was an increase of 62 memberships for the month of May 2020, bringing it to a total

of 19,318 active memberships.

Distributive Generation Growth – In the month of May 2020, there were a total of 21 net meters installed.

This brings the total number of net meters to 910. There was a total of 28 new applications received and

processed for new installations.

500530

566625

662694 713

742770

824864 889 910

0

100

200

300

400

500

600

700

800

900

1000

Distributed Generation Growth

Consumer Accounts by Classification – For the month of May 2020, there were a total of 20,522 traditional

billing accounts, this was an increase of 127 traditional billing accounts. The budget billing accounts

decreased by 12 accounts bringing the total to 1061. There were 2145 active prepaid accounts, which is a

decrease of 51 prepaid accounts from the month of March 2020.

19779 19865 19978 20052 20089 20087 20139 20226 20265 20275 20309 20356 20395

1158 1148 1141 1130 1118 1112 1101 1083 1075 1083 1083 1076 1073

2178 2170 2192 2180 2182 2184 2190 2179 2172 2179 2212 2199 2196

17000

18000

19000

20000

21000

22000

23000

24000

Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20

Consumer Accounts by Classification

Traditional Billing Budget Billing Prepaid Billing

Monthly Broadband & Churn – VCA disconnected 109 broadband accounts during the month of May 2020. This accounted for 1.02% of our total subscribers. VCA connected 395 Broadband accounts; this generated a net increase of 286 broadband accounts.

(205) (177) (175) (205) (164) (139) (126) (125) (181)(87)

(269)(204)

(109)

214

411 272 302 250 284

173 275

377

195 273

155

395

9 234 97 97 86 145 47 150 196 108 4

-49

286

9000

9200

9400

9600

9800

10000

10200

10400

10600

10800

-300

-200

-100

0

100

200

300

400

500

600

May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 20-Feb 20-Mar 20-Apr 20-May

May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20Total Disconnected Accounts -205 -177 -175 -205 -164 -139 -126 -125 -181 -87 -269 -204 -109Total Connected Accounts 214 411 272 302 250 284 173 275 377 195 273 155 395Net Increase 9 234 97 97 86 145 47 150 196 108 4 -49 286Subscribers 9575 9691 9664 9834 9880 9992 10092 10154 10350 10458 10462 10413 10699

Broadband Monthly Subscribe

-3.00%

-2.50%

-2.00%

-1.50%

-1.00%

-0.50%

0.00%

Broadband Churn

Phones – VEA cut over to a new phone system on May 18th, 2020, we now have greater visibility into the

COOP’s voice traffic. The follow graphs show overall call volume and a look at calls by Agent (CSR/TSR).

Charting Overview from May 18th, 2020 to May 301st, 2020

CALLS By Agent

CRC Calls: Calls transferred to CRC up due to phone system transition. VEA identified issues that caused overflow. Issues with the electric outage queue.

Payments Processed in Office: Payments in office during COVID-19 are limited to mail and drop box

activity. With no walk in traffic credit card and cash payments transitioned to E-Payments through phone

traffic.

24131942

3172

1041 935536 527 570 477 621

351 129

1401

0500

100015002000250030003500

Total CRC Calls

2247

20332108

2266 2200

2560

22052343 2304

2075

1807

1397 13591426 13911521

1664

14191536

14061561

1666

1467

755

55 48

13111222

1406 14641313

1501

1226

14121577

1455

812

0 0120 100 162 155 112 159 110 179 165 169

800 016 13 17 14 13 20 12 18 22 20 10 0 012 3 7 9 3 8 5 13 9 13 8 0 07 5 9 7 3 3 7 31 9 11 19 30 290

500

1000

1500

2000

2500

3000

May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20

Total-In Office Transactions by Type

Check Cash Visa Mastercard American Express Discover Money Order

In Office Payment Types and Ammounts

SmartHub Mobile Payments– For the month of May 2020, 5,700 payments were made through our mobile

device SmartHub application totaling $520.302.02. 3,208 of those were prepaid accounts.

M…J…

J…A…

S…O…

N…D…

J…F…

M…A…

M…

$0.00

$200,000.00

$400,000.00

$600,000.00

$800,000.00

$1,000,000.00

$1,200,000.00

In-Office Payment Dollars


5091

6054

6842 6942

59525572

6355

72107474

6659

5942

52925700


SmartHub Mobile Payments per Month

Smarthub Ebill Payments - For the month of May 2020, 4,779 payments were made through our SmartHub

web interface totaling $783,872.55

4026

3921

4292

4441

4023

4085

4285

4433

4594

4474

4734

5003

4778

0 1000 2000 3000 4000 5000 6000

May-19

Jun-19

Jul-19

Aug-19

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20Smarthub Ebill Payments per Month

Pahrump Kiosk Payments – For the month of May 2020, 1,487 payments were made at our Pahrump Kiosks totaling $190,782.09.

12761096

1458

644

1046861

1185 12321442

1109 1135897 915

329 587

552

1077

595

411

494618

486

437 398

289 249

4690

85

151

50

117

58

10984

13651

317 323

0

500

1000

1500

2000

2500Pahrump Kiosk Payments

VEA Lobby

Smiths

Vea Drive-up

Outer District Kiosk Payments – For the month of May 2020, 129 payments were made at our Outer District

Kiosks totaling $23,747.68

Integrated Voice Response System Payments (IVR) - During the month of May 2020, 1,992 payments were made through the IVR system totaling $280,286.40 Of these payments, 20% were for prepaid accounts.

137120

153136

107 111 114130 134 136

10171 65

46

36

5353

62 4463

74 78 70

48

4428

42

38

52

47

2723

31

3745

41

52

35

29

7

6

16

10

611

8

1015

14

14

6

7

0

50

100

150

200

250

300

Outer District Kiosk Payments

Sandy Valley

Beatty

Amargosa

Fish Lake

1496 1566

18972023

1804 17341877

2249 22022031

2176 21061992

0

500

1000

1500

2000

2500

IVR System Payments

Service Orders VEA

Service Orders VCA

Monthly Fleet Report June 2020

May 2020

Fleet Snapshot – For the month of May 2020, fleet statistics were as follows:

Location Vehicles (Excluding Off-road Equipment &

Trailers) Sandy Valley 9

Pahrump 77

Amargosa Valley 4

Beatty 3 (Shares Vehicles with Amargosa and Fish Lake

Valley) Fish Lake Valley 6

Vehicle Uptime – In May, uptime was 14,594 hours of a total of 15,840 hours available or 92.13%. Year to date uptime is 92.45%.

02,0004,0006,0008,000

10,00012,00014,00016,00018,00020,000

Vehicle Availability

Available Hours Down Hours Uptime Hours

Vehicle Usage - For the month of May 2020, fleet logged 56,345 miles, a decrease of 4,102

miles from April.

Monthly Maintenance Costs – VEA spent $73,946 on direct maintenance costs in May, an

increase of $15,724 from April. Our 2020 actual expenditures year-to-date is $1,006,231 or

30.45% of our total budget goal. Direct costs include fuel, maintenance parts and vehicle

labor charged direct to the individual equipment. Indirect costs include depreciation,

administrative labor, miscellaneous labor and shop items that are spread across the fleet.

- 5,000

10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000

Miles Driven by Area

Sandy Valley Pahrump Amargosa Beatty Fish Lake Valley

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20

Direct & Indirect Cost Comparison

Direct Costs Indirect Costs Total

Monthly Cost-Per-Mile/Hour– Included below; a summary by vehicle class. Cost per

mile/hour is a direct expense comparison based on the amount of miles or hours used vs

expenditures, to that specific class of equipment.

Class 3 Cars, Vans & SUV's Month Operating Expense Miles Driven Cost Per Mile

January-20 $12,787.00 8,777 $1.46 February-20 $11,559.00 9,595 $1.20

March-20 $16,203.00 8,076 $2.01 April-20 $11,490.00 7,869 $1.46 May-20 $13,395.00 7,646 $1.75 June-20 July-20

August-20 September-20

October-20 November-20 December-20

Total $65,434.00 41,963 $1.56 Number of units - 14

Class 4 & 5 Pickup's Month Operating Expense Miles Driven Cost Per Mile






Class 6 & 7 Medium Utility Trucks Month Operating Expense Miles Driven Cost Per Mile






Class 7A & 9A Aerial Units Month Operating Expense Hours Used Cost Per Hr

January-20 $14,250.00 177.00 $80.51 February-20 $16,774.00 260.00 $64.52

March-20 $21,325.00 161.00 $132.45 April-20 $15,003.00 304.00 $49.35 May-20 $25,696.00 257.00 $99.98 June-20 July-20



Total $93,048.00 1,159.00 $80.28 Number of units - 37

Class 9 Heavy Utility Trucks Month Operating Expense Miles Driven Cost Per Mile






Tab 4B

Engineering

Report

Engineering Report June 2020

Engineering

Engineering has been continuously working on new service requests, service alteration requests, and

Distributed Generation requests over the past month. For Subdivisions, Engineering continues to complete

new service requests for residential lots. Some primary work is still being completed as well. Engineering

started the design of a conductor upgrade project in Fish Lake Valley at the beginning of this year. A final

cost estimate is still being completed by Engineering at this time. Once completed, it will be presented to

management for further direction. This work is VEA’s initial step towards addressing voltage concerns on

Fish Lake Valley South Sub Circuit #4. VEA Engineering recently had a voltage study completed that

included member input on issues with their start-up voltages. While the study did find that the distribution

system was operating within service voltage levels, system improvement projects were determined to help

improve voltage levels for the members connected to the circuit. Engineering is currently designing the

reconductoring 2 miles of existing overhead conductor to 336 ACSR. By doing so, VEA will be reducing

the conductor’s resistance by increasing its diameter, which will have a direct impact to voltage loss on the

system. The study also determined that members should be operating soft start motors to render a maximum

300% start-up current.

Engineering currently has a couple of projects in design this month. We are continuing our analysis on

design requirements for building existing infrastructure with 556 ACSR conductor. We are nearing a 30%

design this month and will be coordinating an updated cost estimate to the project owner based off of the

30% design. This coordination will allow the project owner to determine the validity of their project.

At the Transmission level, Engineering was contacted by a subdivision developer in the Las Vegas area to

discuss the need to redesign 3-4 H-Frame 138kV structures to accommodate the construction with VEA’s

ROW. This redesign will require VEA to rebuild, and possibly relocate, these poles from the H-Frame style

to single monopole type structures. Engineering is nearing a Issue for Review package in the coming weeks.

This will allow Engineering to determine if long lead time material items will be needed for construction

or not. Engineering typically works with developers before executing construction agreements to get long

lead time material items on order sooner to help with project schedules. Engineering will move forward

with construction once the developer has agreed to the Construction Aid requirements. A Engineering

Design agreement has been executed with the Developer at this time and a Facility Relocation Agreement

will need to be executed before construction.

VEA has been contacted by another developer in the Las Vegas area with a facility relocation request similar

to the one mentioned above. Engineering will be working with the developer this month on executing an

Engineering Design agreement to get the project started.

Lands & GIS

BLM ROW Grant Renewals

BLM Right-of-Way (R.O.W.) grant NVN-004108 near Dyer, NV is up for renewal. The 30-year renewal

application will be submitted to the BLM within the month.

USFS ROW Grants

We are currently in the process of cleaning up several ROW Grants that are controlled by The United States

Forest Service. The grants, originally under the jurisdiction of the BLM transferred to the USFS. The USFS

has requested an amendment to the grants that accurately reflect our lines. The process should be completed

before the end of the year. (UPDATE) This application has been submitted to the USFS. We are awaiting

their reply.

Broadband GIS “Workforce” Projects

GIS is working with VCA to streamline work assignments and work assignment tracking in an effort to

reduce inefficient processes and provide a better understanding of current work projects enterprise wide.

Line Totals Report: Transmission Line = 215.37 Miles (VEA Total) 55 kV = 24.71 Miles 138 kV = 190.66 Miles 230 kV = 164.24 Miles (GridLiance) Primary OH Line = 1,452.65 miles Primary UG Line = 134.85 miles Secondary OH Line = 100.22 miles Secondary UG Line = 531.09 miles

Compliance: North American Electric Reliability Corporation (NERC)-Western Electricity Coordinating Council (WECC) Compliance The Critical Infrastructure Protection (CIP) Team is preparing several of its annual tasks to be completed

by the end of June, including a system vulnerability assessment and account & privilege reviews.

Compliance has delivered the required annual CIP training to most of the authorized individuals in VEA’s

CIP program and re-scheduling with those that missed the training. The Compliance Team is also working

with Engineering & Operations on several projects. The Compliance team drafted and submitted a

mitigation plan for the potential non-compliance of FAC-008 identified during the January 2019 WECC

audit. As part of this mitigation plan, the Compliance Team has been gathering and organizing evidence to

support the equipment ratings used in determining the 138 kV & 230 kV Facility Ratings. This includes

collaboration with neighboring entities for ratings on tie-lines. Compliance & Operations are also working

on the event recording project, which will automatically collect event data from field relays and store it for

further analysis and sharing with other reliability entities, as necessary. The software for data collection

has been purchased, and a server has been scoped and priced. The SCADA technicians will then configure

the relays, RTACs, and software to automatically retrieve the event records. The configuration should be

completed later this summer.

Tab 4B

Operations

Report

Operations Report

June 2020

In May, twenty-five (25) work orders consisting of new consumer sign-ups, retirements for idle

services, and system maintenance work were created. This is an decrease of fifty-seven (57) work

orders when compared with May 2019. Line crews also completed twenty-nine (29) work orders,

a decrease of six (6) work orders completed when compared to May 2019. Bar charts showing

work order activities are provided below.

WORK ORDERS

0 5 10 15 20 25 30

S PAHRUMP (1)

N PAHRUMP (6)

AMARGOSA (2)

BEATTY (3)

FISH LAKE VALLEY (4)

SANDY VALLEY (5)

Work Order ReportMay 2020

New Sign-ups Completed

0 20 40 60 80 100

S PAHRUMP (1)

N PAHRUMP (6)

AMARGOSA (2)

BEATTY (3)

FISH LAKE VALLEY (4)

SANDY VALLEY (5)

Work Order ReportMay 2019

New Sign-ups Completed

Chart below shows the Processed Distributed Generation applications per month

VEA DISTRIBUTION OUTAGES

During the month of May 2020 there were 66 reportable outages affecting 3806 meters with an

average duration of approximately 1 hour 45 minutes each. An additional 25 events are classified

as member equipment, construction and maintenance. There were also 9-recorded momentary

outages coded as an Unknown (4), Bird (1), Other/Foreign Object (1) and Power Supply (2)

included on the VEA system for a total of 100 interruptions. The count by cause:

2020 – SAIFI (System Average Interruption Frequency Index) .170 (May) .309 (YTD)

2020 – SAIDI (System Average Interruption Duration Index) 18.233 (May) 29.422 (YTD)

2020 – CAIDI (Customer Average Interruption Index) 107.246 (May) 95.348 (YTD)

2020 – ASIA (Average Service Availability Index) 99.9592 (May) 99.9866 (YTD)

• Power Supply (3)/2 Momentary

• Planned (16)

• Animals (33)/1 Momentary

• Equipment or Installation/Design (8)

• Public (11)/2 Reportable (Motor Vehicles)

• Unknown (28)/5 Momentary

• Other/Foreign Object (1)/Momentary

44

18

4838

21

0 0 1 1 3 212

33

20

58

45 45

JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC

Mon

thly

Tot

als

Solar Applications processedper Month

2020 2019

311

3328

816

1

0 5 10 15 20 25 30 35

POWER SUPPLY

PUBLIC

ANIMALS

UNKNOWN

EQUIPMENT OR INSTALLATION

PLANNED

OTHER/FOREIGN OBJECT

Outage by CauseMay 2020

Amargosa – Valley Substation - 2 Outages (2 Reportable)

• Animals (1) • Unknown (1)

Beatty – Beatty Substation - 1 Outage (1 Momentary)

• Unknown (1) / Momentary Fish Lake – Fish Lake Valley Substations – 7 Outages (3 Reportable, 2 Non-Reportable, 2 Momentary)

• Power Supply (3) / 2 Momentary • Equipment or Installation/Design (1) • Planned (2) • Unknown (1)

Pahrump – Vista, Charleston Park, Thousandaire and Pahrump Substations - 83 Outages (55 Reportable, 23 Non-Reportable, 5 Momentary)

• Planned (14) • Equipment or Installation/Design (7) • Animal (27) / 1 Momentary • Public (11) / 2 Reportable (Motor Vehicles) • Other/Foreign Object (1) / Momentary • Unknown (23) / 3 Momentary

Sandy Valley – Sandy Substation – 7 Outage (6 Reportable, 1 Momentary)

• Animals (5) • Unknown (2) / 1 Momentary

TRANSMISSION – OUTAGES

02/14/2020 (Continued Line Outage)

At 7:08am the Sloan Canyon Switchyard – Mead Substation (WAPA) 230kV line was de-energized and an Inter-

Company Clearance was issued to Summit Line Builders. The line was de-energized to allow Summit to do

complete rebuild. The line outage expected to last throughout 2020 with a schedule return to device date of

12/31/2020.

05/04/2020

At 4:45am Southern California Edison (SCE) and NV Energy (NVE) initiated switching to remove the 55kV “C”

line from service. The “C” Line is planned to be off for Maintenance until 06/12/2020.

05/26/2020

At 4:43am SCE and NVE experienced a switching error on the Bishop Control (SCE) to Silver Peak (NVE) 55kV

Line. This caused a 7 minute interruption of service to all accounts in Fish Lake Valley. The problem was

corrected and service was restored to all accounts at 4:50am.

05/30/2020

At 7:29am the Bishop Control (SCE) – Silverpeak (NVE) 55kV line tripped off. This affected all accounts in Fish

Lake for 2 minutes. SCE tested and closed at 7:31am and reported no cause to VEA System Operations.

05/31/2020

At 9:07am the Bishop Control (SCE) – Silverpeak (NVE) 55kV line tripped off. This affected all accounts in Fish

Lake for 30 seconds. SCE tested and closed at 9:07:30am and reported no cause to VEA System Operations.

DISTRIBUTION CONSTRUCTION AND MAINTENANCE ACTIVITIES

Amargosa

The crew replaced leaking transformers on irrigation services, and an irrigation service was upgraded at T&T

Ranch. They also assisted the Beatty crew with pole replacements on HWY 95. Crews also worked with the

telecomm crew with some tower work. Work was also completed in Valley Substation, the substation was re-

energized and the mobile substation was de-energized. Routine maintenance and service work was also

completed.

Beatty

Work for the month that was completed was maintenance on circuit 1 and circuit 5, changing broken cross arms

and cross arm braces. They assisted in Fish Lake Valley on building a new three phase underground pump service

for RA Owens. Poles were replaced along HWY 95 due to condition and age. Crew continues to work on bird

guarding transformers around town.

Fish Lake Valley

This month three (3) work orders were completed which consisted of; (2) overhead bank upgrades and (1)

overhead to a 300 kVA pad mount. We are currently working on an underground line extension for White

Mountain Ranch for a new pump. Routine maintenance, customer assists, and nest removals have been conducted

throughout the area.

Sandy Valley

Crews have been upgrading to new bird guard from old style and adding cutouts. Completed hot spot tree

trimming cycle and assist the shop with truck repairs.

Pahrump

Crews in Pahrump during the month of May have been keeping up with the daily work of new home services and

maintenance of the distribution system and the continued buildout of subdivisions. During the month of May we

have seen a large increase in bird related outages as the young ravens start to take flight. The trouble crew

continues to install bird guard products throughout the Pahrump valley, this is a continuous and time consuming

process.

There were several Vehicle vs. Pole incidents that caused large circuit wide outages, the Pahrump crews were

able to do some circuit switching and minimize the number of consumers affected for the duration of the outage.

This month we also had a VEA steel 138kva transmission steel structure maliciously attacked with a cutting torch.

The day this was discovered the VEA mechanics and certified welder sprang into action to repair and patch the

damage.

Damage to 138kV Steel structure. Completed repair and patch.

This was an early morning Car vs. Pole accident, the car drove up the guy wires and broke the top of the pole.

The pole on the left had wires attached to the pole on the right, when a truck caught the guy wire it pulled so

hard it broke the right pole completely and fractured the left pole near the ground

Metering

In May, metering personnel completed:

• Five (5) high bill complaints/meter tests.

• Thirty-six (36) distributed generation (solar) inspections and net meter sets.

• Seven (7) solar breaker de-rates.

• Fourteen (14) misc. service orders.

• One (1) new single-phase Current Transformer rated service installs (EDP Renewables in Amargosa).

• Two (2) three phase Current Transformer meter installation ( White Mtn., RA Owens in Fish Lake

Valley )

• Eighty-five (85) single-phase meters examined, diagnosed and tested.

• Twelve (12) DSI (disconnect switch Interbase) were examined, diagnosed and tested.

• One (1) single-phase net meter, examine, diagnose and test.

• Four (4) three-phase meters, examined, diagnose and test.

• One (1) New 1ph ct-rated in shop meter test.

Items not tracked in chart

• One (1) L & G bolt-on meter, examine, diagnose, test.

• Three (3) current transformers, examine.

• One (1) Durham test switch, examine.

• Four (4) solar related email correspondence.

• Nine (9) Misc. Email correspondence.

• Two (2) check for solar visit/reverse flow alarm.

• Three (3) solar activation lock-outs

Line crew in Fish Lake Valley assisted metering personnel for a three phase current transformer rated meter

installations for White Mtn Ranch and RA Owens. Amargosa Line crew assisted metering personnel at the single

phase meter installation for EDP Renewables. Due to the Covid 19 crisis, there was an unforeseen delay and

extended lead time in the shipment of Net meters. This was caused by the factory extending their shutdown

following Easter break. This resulted in a temporary interruption in DG inspections and Net Meter installations.

SUBSTATION CONSTRUCTION AND MAINTENANCE

Substation Technicians continued working on the Valley Substation project. Substation Technicians along with

SCADA personnel, completed the cut-over from old Remote Terminal Unit (RTU) to new digital RTU. Valley

Substation transformer #2 was re-energized and put back into service. Substation Technicians also began

performing annual infrared thermography of substation equipment. This allows us to identify any heat related

issues prior to failure. Routine monthly substation inspections on Gridliance and VEA stations were also

completed.

2020 Metering Department

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

High Bill Complaints 45 24 18 1 5 93Examine, Diagnose, Test Single Phase, Net meter 57 63 148 67 87 422

Net Meter Inspection, Installation and De-Rates 58 100 47 69 42 316

Volt Recorders 2 0 1 0 0 3

Service Orders 18 25 54 34 14 145

3 phase meter tests/Installs 3 0 10 26 6 45

Single Phase CT Test 3 0 3 2 2 10 DSI (disconnect switch inter-base 10 22 23 12 12 79

Total 196 234 304 211 168 0 0 0 0 0 0 0 917

20

40

60

80

100

120

140

160

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

High Bill Co

Examine, D Phase, Net Net Meter Installation Volt Record

Service Ord

3 phase me

Single Phas

DSI (discon base

Thermal Imaging of Substation Equipment.

SCADA/A&T

A&T personnel were called to help with an underground transformer that was damaged and leaking oil near the

Winery. Work was being done on a residential piece of property when a backhoe dug into the secondary conductor

and the tension broke the secondary connections on the transformer causing an oil leak. The transformer was

replaced, oil spill cleaned up and repairs were made by the line crew personnel.

Due to warmer temperatures, we are still experiencing battery failures in some of our distribution protective

controls. As such, batteries were replaced in recloser control R1078. This control is located in Pahrump and after

performing the maintenance, the control was put back into normal operation.

A&T techs along with SCADA technicians completed test site billing for the month of May, as well as for the

Sunshine Solar Facility and installed monthly security patches on the SCADA system for critical infrastructure

protection (CIP) compliance. This group has also been working closely with Engineering to help resolve UFE

charges (settlements) involving CAISO. This is an ongoing task assisting in resolving these charges. SCADA

technicians also worked in unison with substation personnel testing and commissioning on Valley Substation.

Tab 4B

Projects

Report

Engineering & Operations Project Report

June 2020

Gamebird 138/230 kV Expansion Project

In January 2020, CAISO approved the Gamebird 230/138 kV station expansion (Gamebird)

project. GLW will partner with VEA on the Gamebird project. GLW will design and own the 230

kV equipment and assets on this project, and VEA will design and own the 230/138 kV transformer

and the 138 kV equipment and assets on this project. A kickoff meeting was held this month for

this project with GLW, VEA and HDR to discuss the proposed design and timing of the project.

The project will require looping the existing Sloan Canyon to Pahrump 230 kV transmission line

in and out of the Gamebird 230 kV expansion. GLW will acquire new easements for the new 230

kV transmission line needed for this project. Due to the expansion of the Spring Mountain

Raceway near the project site, transmission routing options are limited. Transmission structures

will be single pole steel structures. In addition to the GLW 230 kV expansion, VEA will be

expanding the 138 kV transmission system to support the new VEA owned 230/138 kV

transformer.

The targeted in service date for this project is May 1, 2021 subject to obtaining the necessary land,

equipment, permits and rights of way to construct the project.

During this last month HDR (the engineering firm hired by GLW and VEA to do the substation

design for GLW’s 230 kV additions and VEA’s 138 kV additions), GLW, and VEA held meetings

to discuss the project, the associated roles and responsibility, the site plan, and overall substation

layout, the race track’s requirements, and other design items. GLW and VEA provided HDR

comments on the 10% engineering drawings to GLW and VEA. GLW is working on the needed

land acquisition, transmission rights of way and permits and plans that will be submitted to the

County. A meeting with the County is planned for June 18th to discuss this project.

GridLiance’s (“GLW”) Sloan Canyon Testing and Commissioning

VEA continues to working with the CAISO on VEA’s default load aggregation point (“DLAP”)

metering and unaccounted for energy (“UFE”) associated with Sloan Canyon Switching Station

(“SCSS”) and the Sunshine Valley projects.

The Mead to Sloan Canyon 230 kV line coupling capacitor voltage transformer (“CCVT”) in Sloan

Canyon have been shipped back to the factory, so ABB can investigate them further. These

CCVTs were removed since the Mead to Sloan Canyon 230 kV line is out of service. New CCVT

are expected to be shipped later this summer and will be installed as outages can be schedule and

workloads permit.

CCVT Inspection in Sloan Canyon

Southern California Edison (“SCE”) installed its meter in their Eldorado Substation on the Sloan

Canyon to Eldorado 230 kV line on February 19th and 20th. SCE is waiting for the CAISO to

certify this metering. This new metering will be used to determine VEA’s DLAP and UFE in the

future.

GridLiance’s Sloan Canyon to Mead 230 kV Line Rebuild

GLW has been actively working on removal of the existing 230 kV line, completing the line and

substation design, obtaining needed permits and rights of way, with their construction contractor

for rebuilding the approximately fifteen (15) miles of Sloan Canyon to Mead 230 kV line. They

continue to be aware of and working within the requirements of the COV-19 issues.

The Mead to Sloan Canyon 230 kV line was taken out service on February 14, 2020 and is planned

to be out of service until December 31, 2020. During this outage, GLW will be rebuilding the

Mead to Sloan Canyon 230 kV line. GLW is planning to be completed with its rebuild work by

the end of October 2020, and to place the line and it associated equipment in service by the end of

2020.

The removal and rebuild will involve crossing under and over approximately seventeen (17)

different lines ranging from 500 kV DC to 69 kV AC from Sloan Canyon to Mead Substation.

GLW has been working with Western Area Power Administration (“Western”) for the needed

changes to and within Western’s Mead Substation. VEA’s System Control is coordinating with

GLW, HDR, GLW’s construction contract - Summit Line Constructors (“Summit”), other

balancing area authority and other entities for the needed outages/hot line clearances.

VEA will be involved with the Mead to Sloan Canyon 230 kV line commissioning, the

fiber/communication commissioning, and installing and commissioning updated relays and

metering equipment at Sloan Canyon and Mead for this project. This work is scheduled to begin

in the middle of October 2020.

Sunshine Valley Solar Project

First Solar has completed the sale of the Sunshine Valley plant to EDP Renewables North America

LLC (“EDPR”). Firs Solar will continue to operate and maintain the Sunshine Valley Project for

EDPR. VEA has completed the construction of the 138 kV portion of the Valley Substation for

Sunshine Valley. VEA is close to finishing its work on the 24.9 kV portion of Valley Substation

including moving equipment and controls into the new control building which was required as part

of this project which it will be invoicing First Solar for. VEA is expecting to have this work

completed by the end of second quarter of 2020.

The Amendment to the Large Generator Interconnection Agreement (“LGIA”) for the Sunshine

Valley Project between California Independent System Operator (“CAISO”), GLW, First Solar

and VEA has been executed by all parties and approved by the Federal Energy Regulatory

Commission (“FERC”) on May 29, 2020 as filed.

Tab 3B

Broadband Services

Report

Broadband ServicesReport

June 24, 2020

VCA Broadband• Outside Plant (OSP)

• Fiber Placed in neighborhoods• 84 new drops were placed in the Villa Serena subdivision in northern Mountain

Falls.• 13 additional drops were pulled into various housing developments and

subdivisions including Cottage Grove, Winery Beatty and two local businesses.

• New business fiber services were turned up for customers on alocal communications tower and at a medical facility.

• A new 10Gb circuit path between Las Vegas and Reno runningon an alternate route through Los Angeles was completed thismonth, providing VCA with a diverse path between Las Vegasand Reno. In the event the LV-Reno fiber is severed, or the long-haul network suffers a failure, the broadband customer's trafficcan reroute along this new path keeping the services functioning.

1012141618202224

Backhaul UtilizationMaximum Capacity 40 Gb

May• Broadband backhaul peak-time utilization had been on a downward trend and began to flatten out during the last week of May/first week of June, holding steady around 18.5Gbps.

• Traffic seemed to begin to spike again mid-June, however we will continue to chart each day to determine if the spike was just an anomaly, or if bandwidth usage is again on the rise.

Repair and Installation

• Trouble Tickets• April ticket numbers were flat from 837 to 841• 59% (499) resolved over the phone or cancelled• 17% (145) VCA system related• 23% (197) subscriber network issue or work request

• Broadband technicians working additional shifts to keep up with the increased quantity of applications at the end of May, likely due to the recent cellular tower vandalism.

Broadband related COVID-19 Items • Working with the HR Department an operating procedure has been developed, based on CDC and

Health Department guidance, that outlines the steps to once again have technicians go into residences. These steps include:

• Prior to scheduling confirm the subscriber is comfortable with the technician entering the location• Asking the subscriber if they or anyone in the residence has been ill• Confirming upon arrival at the residence, before entering, that persons are not or have not been ill• Guidance for PPE (Personal Protective Equipment) to ensure the safety of the subscriber and the technician• Guidance to ensure the subscriber remains at a recommended safe distance• Cleaning and disposal procedures of PPE and other materials

• As the schedule allows, technicians are returning to those subscribers that were temporarily installed over the last couple months to complete the installation

• Working with the installation contractor for additional techs to speed this process

Broadband related COVID-19 Items • Usage of the broadband network service

provider connections has been on a downward trend through the last month as people move back to work, and home schooling has ceased for the summer months. Peak utilization of available bandwidth is currently at 46% of capacity.

• In mid-April we experienced a DDOS (Distributed Denial Of Service) attack attempt which pushed the peak usage temporarily to almost 26Gbps, however the upstream provider immediately noticed the attempt and blocked it before any harm was done.

Information Technology and Telecommunications • Work From Home Program

• Personnel continue to work from home and the IT staff continue to support their needs remotely• Zoom and Teams platforms continue to be extremely useful in keeping the staff engaged• IT staff has begun preparing for staff to return to the office in the coming weeks

• Security• Telecommunications has completed upgrading the firmware on the door controller servers and the installation of new door

controllers at the GLW (Gridliance West) substations• Increased foot and vehicle traffic at the Rob's Peak communication facility, west of the VEA offices on the California border,

prompted the installation of additional surveillance cameras for 360-degree visibility• As part of an overall surveillance strategy, the Telecom staff has been evaluating a new video surveillance platform that will

provide much improved visibility, alerting, and evidence gathering capabilities

• Phone System implementation• The broadband and IT staff have worked closely to design and deploy the new VEA hosted phone system• Call trees and call queues have been set up based on collaboration with member facing departments• Go live date was Monday, May 18• New system has improved efficiencies and data gathering, providing much needed information such as caller on-hold

time, number of calls forwarded to CRC (Cooperative Response Center), call duration, and member representative on-duty duration

• Continuing to work on the implementation of the Milsoft IVR (Interactive Voice Response) system for electric outage calls to automate the outage ticket generation and member call back process

Phone System Reporting Samples

5 3 118

27

8

4964

29 26

66

1028

913 186

18 15 21

85

27 22 1935 29 22 24

0 3 010 8 5

62

32

10 11

32

012

0

-50

0

50

100

1-May 2-May 3-May 4-May 5-May 6-May 7-May 8-May 9-May 10-May 11-May 12-May 13-May 14-May

Corporate Firewall Attack Report5/14/2020

Critical High Medium Poly. (Critical) Poly. (High)

• Attempted cyber attacks on our corporate networks remains relatively steady with the occasional peaks and valleys, however not out of the ordinary.

• May data indicated a downward trend, however increased cyber threat activity in June has shown the trend to be moving upward again.

• All attacks have been blocked by internal security systems and the network remains secure.

Major Outage Report• No major outages to report this month

Tab 5

Executive Session

monthly report to board of directorsboard of directors june 2020. valley electric association, inc....

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