MINUTES OF THE JOHNSON CITY ENERGY AUTHORITY D/B/A BRIGHTRIDGE. December 18, 2018
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1 MINUTES OF THE JOHNSON CITY ENERGY AUTHORITY D/B/A BRIGHTRIDGE December 18, 2018 PRESENT: Scott Bowman Dan Brant Jenny Brock Bob Cantler Joe Grandy B. J. King Hal Knight Robert Thomas Guy Wilson Jeffrey R. Dykes, Chief Executive Officer Brian Bolling, CPA, Chief Financial Officer and Chief Customer Officer Connie Crouch, Human Resources Manager Mark Eades, Chief Engineering and Technology Officer Brian Ellis, Service Department Manager Stacy Evans, Chief Broadband Officer Donnie Hall, Safety/Environmental Manager Tiphanie Watson, Customer Support Manager Tim Whaley, Director of Public and Governmental Affairs Stephen M. Darden, Attorney ABSENT: Eric Egan, Chief Data Officer Rodney Metcalf, Chief Operations Officer Angela Shrewsbury, Energy Services/Marketing Manager David Spinnato, Physical Plant/Warehouse Manager Chairman B. J. King called the meeting to order, and welcomed Tony Woods, Service Department Administrator for BrightRidge, who was attending today's meeting. Mr. Woods began his tenure at BrightRidge in 2000 as a Construction Lineman before being promoted to Lead Lineman, Service Lineman, and in 2010 becoming Service Department Administrator. Mr. Woods' duties include supervising the work order process and routine maintenance in his department, and working with local electricians for service change-outs. Chairman King announced that the presentation of Chris Quillen, TVA Customer Service Manager, regarding the TVA financial report was deferred until the January Board meeting due to a scheduling conflict.
2 Financial reports were unavailable and will likewise be presented at the January Board meeting. Upon motion of Mr. Cantler, seconded by Dr. Knight, the following items were approved on the Electric Division Consent Agenda: (a) The minutes of the November 27, 2018 Board meeting; (b) The low bid of Irby in the amount of $2, for 30 RMA 2100W HPS lighting fixtures; (c) The low bid of Irby in the amount of $55, for 25,000 feet of 1/0AL 15KV compressed primary cable; and (d) The low bid of Irby in the amount of $3, for 60 Dead End Straight LN clamps. The motion carried unanimously. Upon motion of Mr. Cantler, seconded by Mr. Grandy, the Board approved the following items on the Broadband Division Consent Agenda: (a) The evaluated bid of EPB in the estimated amount of $536, for support and provisioning services for a term of three years, with the possibility of two one-year extensions; (b) Pre-authorization for up to $20.00 per IP address for a possible maximum cost of $163, for 8,190 additional IPv4 addresses. An IFB will be posted to obtain competitive pricing and a purchase order will be executed immediately upon the bid selection to lock in the best rate for the addresses. (c) The bid of Ford of Murfreesboro in the amount of $27,141 for one Ford F150 super cab truck, to be utilized by a Field Service Technician. The motion carried unanimously. Mr. Grandy delivered the report of the Finance, Audit, Rate and Budget Committee, which met immediately prior to today's Board meeting to consider the following items: (a) Upon motion of Mr. Grandy, on behalf of the Committee, the Board approved a revised Private Area Lighting Rate Schedule, to become effective January 1, 2019, as shown below. The motion carried unanimously.
3 Recommendation #1 Offer the following LED light types at the rates listed for private area lighting effective January 1, Discontinue offering conventional high pressure sodium (HPS) lighting for new installations. The recommended light types and rates below reflect the energy charge and the facilities charge for each light. TVA s fuel cost adjustment will be applied in addition to the amounts below. Summer Size Average Usage Monthly Rate LED 57 Watt 21 kwh $6.45 per month LED 143 Watt 52 kwh $10.06 per month LED 194 Watt 71 kwh $12.73 per month Winter LED 57 Watt 21 kwh $6.38 per month LED 143 Watt 52 kwh $9.88 per month LED 194 Watt 71 kwh $12.50 per month Transition LED 57 Watt 21 kwh $6.33 per month LED 143 Watt 52 kwh $9.78 per month LED 194 Watt 71 kwh $12.35 per month The new LED lights have a 10-year warranty. BrightRidge requires a 5-year contract on all new lighting installations in order to cover costs. Recommendation #2 Continue repair and replacement of existing conventional HPS lighting for the next 60 months effective January 1, Beyond 60 months, all existing conventional HPS lighting will be replaced by an LED when maintenance or repairs are required. Recommendation #3 All mercury vapor lighting will be replaced with LED lighting when maintenance or repairs are required. Currently, all mercury vapor lighting is being replaced with HPS lighting. We have over 10,697 private area lights in the field. The existing lights and rates remain unchanged within LS rate schedule as shown below. Recommendation #1 discontinues use offering these lights for new installations purposes. TVA s fuel cost adjustment will be applied in addition to the rates.
4 Summer Size Average Usage Monthly Rate HPS 100 Watt 42 kwh $7.45 per month HPS 250 Watt 105 kwh $11.70 per month HPS 400 Watt 165 kwh $15.94 per month Mercury Vapor 175 Watt 70 kwh $7.60 per month Mercury Vapor 400 Watt 155 kwh $13.66 per month Winter HPS 100 Watt 42 kwh $7.31 per month HPS 250 Watt 105 kwh $11.35 per month HPS 400 Watt 165 kwh $15.39 per month Mercury Vapor 175 Watt 70 kwh $7.36 per month Mercury Vapor 400 Watt 155 kwh $13.15 per month Transition HPS 100 Watt 42 kwh $7.22 per month HPS 250 Watt 105 kwh $11.13 per month HPS 400 Watt 165 kwh $15.05 per month Mercury Vapor 175 Watt 70 kwh $7.22 per month Mercury Vapor 400 Watt 155 kwh $12.83 per month Recommendation #4 Update the lighting installation charges to the amounts listed below effective January 1, Lighting Installation Charge Current Recommended_ Impact Connection of an Existing Light $60.00 $60.00 No Change Installation of a New Light $60.00 $ $40.00 Each Additional Light Installed on the Same Trip $60.00 $75.00 $15.00 Change Out of an Existing Light to Another Light Type $60.00 $ $40.00 Light Relocation on the Same Pole $70.00 $75.00 $5.00 Light Relocation to Another Pole $70.00 $ $30.00 Note that a customer is not charged anything if their existing lighting is changed to an LED due to normal maintenance or repair. (b) Pricing levels for Broadband Fixed Wireless Internet Services. Upon motion of Mr. Grandy, on behalf of the Committee, the Board approved the Proposed BrightRidge Broadband Products and Pricing Schedule attached as Exhibit "A" to these minutes. The motion carried unanimously. (c) Upon motion of Mr. Grandy, on behalf of the Committee, the Board approved allowing Broadband Sales Representative Mark Fields to begin work regarding in the sale and marketing of broadband services to businesses for specialized pricing based upon individual need. The motion carried unanimously.
5 Brian Bolling, Chief Financial Officer and Chief Customer Officer delivered a short presentation on the topics of load factor and degree days, and how both affect kilowatt hour usage. Load factor is based primarily upon weather and is a measurement of utilization rate and efficiency of energy usage - the relationship of kilowatt hour per unit of peak demand. July through October are usually months with good load factor, as temperatures are more consistent with less peaking. November through June comprise months with the worst load factor. Degree days are a measurement of temperature. The highest temperature minus the lowest temperature equals the daily average temperature. The daily average temperature is then compared to 65 degrees. Sixty-five degrees is considered the temperature when neither heating nor cooling services are required. An average temperature of greater than 65 degrees results in a cooling degree day and an average temperature of less than 65 degrees results in a heating degree day. Stacy Evans, Chief Broadband Officer, delivered an update to the Board relative to the broadband project. The broadband business plan anticipates 2,500 fixed wireless customers through eight phases. Mr. Evans advised that there are currently 16 possible tower sites and that 10,000 customers could be supported with the current LTE technologies. Four tower sites are to be utilized in Phase I of the project: (1) Jonesborough/Persimmon Ridge - passes 4,256 customers; (2) BrightRidge Tower #127 on Nofattie Road near Gray - passes 995 customers; (3) BrightRidge Tower #129 in Fall Branch - passes 557 customers, and (4) Johnson City/Buffalo Ridge - passes 3,575 customers. Mr. Evans also updated the Board regarding the fiberoptic builds in Jonesborough and downtown Johnson City. In Jonesborough, 105 residential and 50 business customers are within 500 feet of the primary fiber distribution line, with additional accelerated growth anticipated in the coming years. Make-ready adjustment requests have been submitted to Century Link regarding the 10% of the poles Century Link owns in the downtown Johnson City area. Mr. Evans stated that BrightRidge could proceed forward itself with the make-ready as of January 28, 2019 if no response is received from Century Link by that time. CEO Jeff Dykes updated the Board on the Silicon Ranch solar farm project. All sections are anticipated to be fully operational by December 21st, at which time TVA testing will begin. The official ribbon-cutting ceremony will take place during January. Mr. Dykes thanked Board members for their service at the employee Christmas luncheon today. Board member Joe Grandy gave a brief tribute to former Board member and Board Chair Tobie Bledsoe, who had recently passed away. Board member Jenny Brock also delivered remarks about her work with Ms. Bledsoe on the utility's treetrimming policy.
6 Mr. Grandy commended BrightRidge employees and staff for the stellar service which was provided to customers during the recent snowstorm. There being no further business, the meeting was adjourned.
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