Quarterly Business Report Grant PUD Commission Meeting September 8, - - PowerPoint PPT Presentation

Powering our way of life.

Operate Responsibly by Attaining Environmental, Cultural Resource and Regulatory Compliance

Fish and Wildlife Quarterly Business Report

Grant PUD Commission Meeting September 8, 2020

Purpose & Goal

The Fish and Wildlife Business Unit uses technology, innovation, strategic thinking, good stakeholder relations and skilled negotiations to ensure we are achieving compliance with our Natural Resources regulatory requirements in a safe, cost efficient and biologically sound manner while helping to maintain the long-term financial health of the District.

2020 Safety Cultural

❖ No Recordable Incidents; ❖ Job Site Reviews (N=28; Currently at 18.6%)

❑ Goals = 15%; Stretch Goal = 25%

❖ Overall Safety Meeting Attendance = 99.0%; ❖ Priest Rapids Hatchery Safety Fixes;

❑ Priest Rapids Hatchery

❖ Covid-19 Site Specific Work Plans

❑ Priest Rapids Hatchery ❑ Off Ladder Adult Fish Trap ❑ Video Fish Counting ❑ Vegetation Mgmt. ❑ Fish Predator Control/USDA Angling ❑ Juvenile Sturgeon tagging & Release ❑ Sturgeon Spawning Assessment ❑ Sampling/Collections at Off-Ladder Adult Fish Trap ❑ Juvenile Sturgeon Assessment ❑ Fall Chinook Collection in Hanford Reach ❑ Priest Rapids Hatchery Spawning/Monitoring & Evaluation

Covid-19 - Essential Business

❖ Hatchery Production

✓ Priest Rapids Hatchery (GPUD) ✓ Carlton & Nason Acclimation Facilities (GPUD) ✓ Eastbank Hatchery (CPUD) ✓ Wells & Methow Hatchery (DPUD) ✓ Penticton (ONA) ✓ Chief Joseph (CCT) ✓ St Mary’s Acclimation (CCT) ✓ Marian Drain (YN)

❖ Anadromous & Resident Fish Passage ❖ Video Fish Counting ❖ Hanford Reach Operations ❖ Juvenile Salmonid Passage (Fish Mode/Bypass Ops) ❖ Wildlife Management Plan/Vegetation Mgmt. ❖ Compliance Reporting & Consultation ❖ White Sturgeon Program

2020 Compliance Review

• File 22 annual reports and plans with various agencies;
• Progress & Implementation Report (8 Combined)
• Aquatic Invasive Species Control & Prevention
• Bull Trout Report and 10-Year Review
• White Sturgeon Annual Report
• Pacific Lamprey Annual Report
• Northern Wormwood Conservation Plan
• Gas Abatement Plan
• Transmission Line Collision Protection
• Bald Eagle Perching/Roosting Protection Plan
• Wildlife Habitat Monitoring, Info & Education
• Native Resident Fish
• Fish Spill and Total Dissolved Gas Report
• USFWS Annual Recovery Report
• USFWS Annual – Special Use Permit
• Mitigation Sites (12 Annual Reports)
• Wanapum Gate Seal (Article 406)
• Boundary Adjustment for Nason Creek Acclimation Facility (on Hold)

Priest Rapids Project License Article 406. As part of the Wanapum Dam Interim Spill Regime Evaluation Plan required under section 6.2(1) of the water quality certification and article 11 of National Marine Fisheries Service’s and U.S Fish and Wildlife Service’s section 18 prescriptions, the licensee shall investigate the Wanapum dam spillway gate seals as a potential source for juvenile salmonid mortality during spillway passage.

Wanapum Gate Seal Investigation

NOTES:

• Coulter Counter Purchased.
• Wells Hatchery & Tumwater -
• n track.
• Saint Mary’s Acclimation

Building billing issues & Covid.

• Chief Joseph Hatchery Chiller

Project cancelled (CCT found internal funding).

2020 Tier 1 Carlton Acclimation Facility Intake Structure

Issue: Methow River migrating away from water intake. ✓ Alternative Selected ➢ Install 2 wells

• Domestic well (400 gpm with VFD - 10” well) – Estimated $670K
• Production well (3200 gpm) – Estimated $900K
• Upgrade existing backup generator

✓ Plan Forward ➢ 2 separate contracts (2020 & 2021) ➢ Domestic Well Construction Contract in development ▪ Anticipating Contract Award – 3rd week in Sept. ▪ Target Completion date – Project Close out November 25, 2020. ➢ Production Well ▪ Completion – October 1, 2021.

2020 Tier 1 Hatchery Monitoring and Evaluation Comprehensive Analysis

❖ Development and implementation of monitoring and evaluation programs is a primary element required throughout Grant PUD’s license requirements, Biological Opinions, 401 Certification, Hanford Reach Fall Chinook Protection Program and the Priest Rapids Salmon and Steelhead Settlement Agreement. ❖ Hatchery Program Reviews are conducted every 10 years for each species. ❖ Informs hatchery “recalculation” and adaptive management. ❖ Determines if programs are meeting objectives.

2020 Tier 1 Hanford Reach

❖Operational Plan for Implementation of the Hanford Reach Fall Chinook Protection Agreement

Issue: Formal operating protocols need to be developed to replace procedures that had been implemented through Mid-C Hourly Coordination with the Utility Parties. ✓ In Progress

➢ Working to development a joint operating plan.

2020 Tier 1 Temperature TMDL

❖ The US Environmental Protection Agency (EPA) issued for public review and comment a Total Maximum Daily Load (TMDL) for temperature in the Columbia and Lower Snake Rivers. The TMDL addresses portions of the Columbia and lower Snake Rivers that have been identified by the states of WA & OR as impaired due to temperatures that exceed those states' water quality standards. ❖ Section 303(d) of the Clean Water Act (CWA) authorizes the EPA to assist states, territories and authorized tribes in listing impaired waters and developing TMDLs for these waterbodies. ❖ Key Takeaways from EPA’s Temperature TMDL:

✓ EPA does not believe the state’s water quality standards can be attained even if all allocations in the TMDL are implemented and the temperature reductions envisioned are fully realized. ✓ Sources outside the allocation structure of the TMDL contribute to warm water that alone exceed the state’s

• standards. These sources include water entering the U.S. from Canada that exceed Washington State’s

standards and warming air temperature in the Columbia Basin, which is the primary driver of water temperature. ✓ While EPA acknowledges these challenges, it does not make any accommodations in the TMDL for these external factors, posing significant compliance challenges.

2020 Tier 1 Temperature Total Maximum Daily Load (TMDL)

❖ Why is it Important to GPUD? GPUD’s Water Quality Certification (WQC) was issued prior to a Columbia River TMDL but the WQC anticipated one would be forthcoming. With EPA finalizing a TMDL, WDOE will be compelled to develop a state-wide implementation plan that will likely include Project specific provisions for GPUD consistent with the temperature allocations in TMDL. ❖ What Are We Doing? ✓ Outreach to the upper echelon’s within WADOE ✓ Submitted a joint 3-PUD comment letter to EPA ✓ Submitted (to EPA) a Priest Rapids Project specific comment letter ✓ Work collaboratively with WADOE to develop compliance schedule/process

2020 Tier 1 Wildlife Management Plan

Wildlife Management Plan (WHMP) – 5-Year Updates ❖ Updated plan due to FERC Dec 2020 Primary components

• Wildlife habitat improvements implementing using Best

Management Practices

• Development of a fire suppression program ($40k/yr.)
• Habitat restoration of other areas (e.g. Sunland)
• Adaptive Management
• Agency consultation and reporting schedule

2020 Tier 1 - Tumwater Fish Weir

➢ Tumwater Dam Fish Weir (Owned by Chelan PUD) ➢ Interlocal Cooperative Agreement (ICA) in place that allows GPUD to utilize the Tumwater weir to collect adult broodstock for GPUD hatchery programs in the Wenatchee River Basin (summer Chinook and Nason Creek spring Chinook). ➢ The ICA specifically defines the specific cost allocations to each PUD depending on the type of activity and/or reactive repair (GPUD’s share is = 36%). ➢ Chelan PUD staff identified erosion and undercutting on the lowermost section of the fishway adjacent to Tumwater dam. ➢ Chelan PUD has indicated that the preliminary estimated is ~$400,000. Of which GPUD would be responsible for $162,000 (36%). ➢ Expected Project Completion Date = March 30, 2021

2020 Tier 1 – NNI & Habitat Contracting Process

Goal: Efficiency improvements, error reduction, repeatable consistent process, transparency, potentially reduce multiple document storage locations and reduction in email traffic.

❖ Migration of NNI & Habitat Contracting Process into Contract 365.

In Progress: Currently working with procurement to ensure that the workflow process that will integrate seamlessly with Contract 365. Expecting that next NNI or Habitat request from the committee(s) will be piloted through this new process.

❖ White River Spring Chinook Program ❖ Vegetation Management ❖ Survival Evaluations scheduled for 2025, 2026 & 2027 ❖ Avian Predation in the Columbia River Plateau ❖ Northern Wormwood Conservation Plan ❖ Predator Removal Program

2020 Tier 2 - Business Activities

2020 Tier 1 Priest Rapids Hatchery Operations Completed

Decision was made to continue contracting with Washington Department of Fish and Wildlife for the Operation and Maintenance of the Priest Rapids Hatchery.

Emerging Issue: Developing a mechanism so the US Army Corps of Engineers can contract directly with Grant PUD by June 1, 2021.

2020 Tier 1 Priest Rapids Hatchery Well Rehabilitation Completed

Three of the eight wells were inoperable during most of the timeframe when the Priest Rapids Reservoir was operated at lower elevations for Priest Rapids Spillway work/evaluation.

Powering our way of life.

Powering our way of life.

September 8, 2020

Strategic Plan Metrics

2020 Q2

Objective 1 – Safety Performance

Zero Recordable Incident Rate 2020 Target 2020 Q2 2.6

• 7 Recordables Total 2020 to date
• 2 Lost Time
• 1 Restricted Duty
• 4 Recordable Injury

Changing the Culture

• 95% average Safety Meeting

attendance in Q2

• 115 jobsite reviews conducted in Q2

Objective 2 – Design and Sustain an Engaging and Fulfilling Grant PUD Culture

Organizational Health Index 2020 Target Current Status ≥ 75 42 Employee Engagement Assessment 2020 Target Current Status To Be Determined Launch this Fall

• Scored in 2019
• Scored every two years, next cycle in 2021
• Target is top quartile based on McKinsey’s Organizational Health Index
• Slated for launch in fall timeframe
• Will use the Gallup Q12 Employee Engagement Instrument

Objective 2 – Design and Sustain an Engaging and Fulfilling Grant PUD Culture

Educational Reimbursement Target 2020 Target Current Status To Be Determined To Be Determined Training Effectiveness Assessment 2020 Target Current Status 4 out of 5 stars 4.21 stars

• In development phase, undergoing Executive Team review
• Requires Commission action on revised educational reimbursement program
• Target of 4 on a 5 star scale
• Survey results from Pcard training, CIP training, and the live training sets of Working@Grant and Leading@Grant

Objective 3 – Maintain a Strong Financial Position

Electric System Liquidity 2020 Target 2020 Year End Projection ≥ $105 MM $141 MM

• Liquidity reduced after financial
• ptimization
• Year-end projection represents value of

393 days cash on hand

Objective 3 – Maintain a Strong Financial Position

Consolidated Return

• n Net Assets

2020 Target 2020 Year End Projection ≥ 4.0% 2.2%

• This year, target increases to ≥ 4.0%

from ≥ 3.8%

• Interest and other income down
• Increased operating expenses

Objective 3 – Maintain a Strong Financial Position

Consolidated Debt to Plant Ratio 2020 Target 2020 Year End Projection ≤ 60% 52%

• Target declined from ≤ 62% to ≤ 60%
• Ratio declined after financial
• ptimization in January and additional

debt refunding in March

• Based on book value; Ratio based on

estimated fair market value is 34%

Objective 3 – Maintain a Strong Financial Position

Adjusted Consolidated Debt Service Coverage 2020 Target 2020 Year End Projection ≥ 1.8 x 2.0 x

• Slight decrease in net income

expectations

Objective 4 – Provide Long Term Low Rates

Retail Operating Ratio - Adjusted 2020 Target 2020 Year End Projection ≤ 112% 110%

• Target fell to ≤ 112% from ≤ 113%
• Calculated as total retail expenditures

divided by total retail revenue

• Retail expenditures up slightly at PRP

Objective 4 – Provide Long Term Low Rates

Peer Group of Excellence Retail Rate Index 2020 Target Current Status ≤ 100 98.6

• Index is based on a comparison of GCPUD

rate growth to the rate growth of a selected peer group

• Looks at growth over a five-year period
• Uses publicly available retail sale and

revenue information as well as a normalization

• Some 2019 data not yet available; updates to

follow next quarter

• A value over 100 indicates rates growing at a

faster pace than the average for the peer group

Objective 4 – Provide Long Term Low Rates

District Credit Rating 2020 Target 2020 Year End Projection ≥ Aa3 Aa3 System Moody’s S&P Fitch Electric Aa3 AA+ AA

Outlook Stable Stable Stable Effective Date 11/21/17 06/27/19 11/06/17

PRP Aa3 AA AA

Outlook Stable Stable Stable Effective Date 09/16/15 06/28/19 11/06/17

Items to our Favor: Ownership of competitive hydro generation, low rates, water and power price risks reduced by exchange contract, and favorable debt service coverage

Objective 5 – Outstanding Service to Customers

Average System Availability Index (ASAI) 2020 Target 2020 through Q2 ≥ 99.985% 99.983%

• Delta from target is -0.002%
• Month by month values
• Apr 99.992%
• May 99.978%
• Jun 99.984%
• Target same as 2019 target

Objective 5 – Outstanding Service to Customers

Customer Average Interruption Index (CAIDI) 2020 Target 2020 through Q2 < 110 min 115 min

• Delta from target is 5 minutes
• Month by month values
• Apr 115 min
• May 79 min
• Jun 145 min
• Target same as 2019 target;

2018 target was 150 minutes

• Top 3 known outage causes by

duration

• Equipment damage 974k min
• Equipment worn out 180k min
• Lightning 110k min

Objective 5 – Outstanding Service to Customers

PRP Availability 2020 Target 2020 through Q2 Meet 12 of 12 Monthly Targets 5 of 6

Objective 6 – Operate Responsibly

2020 Target 2020 through Q2 Financial Statement Audit Performance Unmodified Audit Opinion 2019 Audit Unmodified Opinion 2020 Audit TBD April 2021 WA State Audit Office Compliance Audit No Audit Findings TBD Sep – Nov Timeframe FERC / NERC / WECC Compliance Performance No Findings No Findings FERC and Regulatory Filings No Late Filings No Late Filings Environmental and Cultural No Issues No Issues

Objective 7 – Develop a Sustainable Broadband Network

Achieve Planned Capital Build 2020 Target 2020 Year End Projection 100% 100% Average System Take Rate 2019 Target 2020 through Q2 ≥ 60.0% 60.2%

• At $7.5M, expansion capital year to date spend is 56% of budget
• At $2.9M, routine capital year to date spend is 63% of budget

Participation by Community Coulee City 38% Grand Coulee 62% Quincy 53% Desert Aire 83% Mardon 56% Royal City 69% Electric City 61% Mattawa 76% Soap Lake 58% Ephrata 76% Moses Lake 58% George-Burke 57%

• Up from take rate of 57.5% at end of 2019 and 58.9% at end of Q1
• Added 2,123 new subscribers this year, for a total of 21,135

2020 Strategic Plan Metrics – Q1 Status

Strategic Plan Metrics 2020 Target 2020 through Q2 Zero Recordables Incident Rate 2.6 Organizational Health Index ≥ 75 42 Employee Engagement Assessment TBD TBD Educational Reimbursement Target TBD TBD Training Effectiveness Assessment 4 4.2 Electric System Liquidity ≥ $105 MM $160 MM Consolidated Return on Net Assets ≥ 4.0% 3.0% Consolidated Debt to Plant Ratio ≤ 60% 52% Adjusted Debt Service Coverage ≥ 1.8 x 2.2 x Retail Operating Ratio ≤ 112% 108% Peer Group Retail Rate Index ≤ 100 98.6 District Credit Rating ≥ Aa3 Aa3 Average System Availability Index ≥ 99.985% 99.983% Customer Average Interruption Index < 110 min 115 min PRP Availability 12 of 12 Monthly Targets 5 of 6 Monthly Targets Operate Responsibly No Findings / No Late Filings No Findings / No Late Filings Achieve Planned Capital Build 100% 100% Average System Take Rate ≥ 60.0% 60.16%

Questions

Quarter 3 Commission Update 9/9/20

Powering our way of life.

Power Production:

Cultural Resources

Cultural Resources Safety Status

Quarter 2 was completed without any safety incidents and with

• ne close call.

Three safety monitors were added in order to respond to the right bank construction project. Safety meeting attendance was lower than normal at 91% in Q2. Awareness of the low attendance was addressed at the July Safety meeting and we’ll continue to seek 100% participation.

2020 Q2 Budget Data

Category Budget Actuals ($) for Month Ended 04/30/2020 Year-End Projection ($) Year-End Projection (%) CAP $9,999 $247 $250 3% O&M $1,287,126 $242,943 $1,253,256 97% Labor $2,698,677 $714,887 $2,321,690 86% Total $3,995,802 $958,077 $3,575,196 89%

2020 Q3/Q4 Forecast

• Continuation of effects mitigation plan in consultation with our

Tribal, Federal and State stakeholders.

• Mitigation discussions will begin in Q3
• Continuation of Priest Rapids Right Embankment work
• Focus is on meeting the MOA details
• Completion of a Social Impact Assessment is resulting in our

working directly with the Wanapum to address issues that may

• arise. Anticipated issues are related to dust abatement, sound

etc.

2020 Q3/Q4 Forecast

• Continuation of our second year of archaeological site monitoring

is underway.

• We have identified no new archaeological sites as a result of our

efforts.

• Similarly, no new project-related effects have been identified as a

result of our 2021 season efforts.

2020 Q2/3 Forecast

• Use of Allocated Resources
• Staffing – No staffing changes anticipated

2020 Forecast

• Potential Management Challenges
• Continued discussions with Tribal groups, state and federal agencies regarding

mitigation of project-related adverse effects to project-wide cultural resources.

• We are in the information gathering stage for our mitigation activities

and will have a better understanding of potential mitigation later in Q3.

9

Questions ??