Safety Report February 2020 Incidents Reported Date Injury - - PowerPoint PPT Presentation
Safety Report February 2020 Incidents Reported Date Injury Description: Causes: Prevention: Employee slipped on ice and fell hitting 1/21/20 Slip Slick walking surface Caution and Awareness, Ice cleats, Salt their head and face
Date Injury Description: Causes: Prevention: 1/21/20 Slip Employee slipped on ice and fell hitting their head and face Slick walking surface Caution and Awareness, Ice cleats, Salt 1/30/20 Cut Employee cut their hand with a razor knife while stripping 4 gage wire Line of fire Wear cut resistant gloves, use right tool for the job
2020 January YTD Total Incidents Reported 2 2 Recordable Case(s) Restricted Duty Case(s) Lost Workday Case(s)
Date Vehicle Driver’s Account: Prevention
1-28-20 476 Rock Chip NA 1-27-20 378 Backing up to turn around sun was in the mirror and hit a rock with the rear bumper Awareness of surroundings, do not move the vehicle if your vision is
Date Location Description
1-7-20 WD Wind Sock was found laying on the ground, post had snapped during windy conditions 1-7-20 Royal City Failed to notify Safety department as required to review contractor site specific safety plan and crane lift plan prior to mobilization of contractor 1-13-20 Wanapum Indian Village Lighting fixture was damaged by the wind and found hanging by a single wire and was removed ASAP. 1-14-20 EHQ Two foremen had a hot line on the same breaker with different work locations, dispatch office was loud and distracting, when first foreman was releasing his hot line the dispatcher read off the prewritten switch order to turn on reclosing forgetting about the second hotline holder. The foreman switching replied back there was still a hot line tag for the other foreman so the order was revised to remove only his hotline tag and leave the breaker on non reclose for the remaining hotline still in effect. 1-13-20 PRD GE employee was distracted and partially threaded a picking eye that was then used to lift a thrust block, the picking eye did not hold and the block fell 4 inches while trying to lift it. 1-15-20 Highway 243 While driving an oncoming service truck had a tire come off and nearly hit truck 355 1-18-20 Nelson Rd Substation Accidentally left substation man gate unlocked, returned and found that security had found the unlocked gate and locked it.
Date Location Description
1-17-20 USBR Employee slipped on stairs due to wet shoes from snow, no injuries 1-21-20 HOB Light fixture was smoking, electrician was called to fix 1-21-20 Mattawa While removing the piece of tie wire with a shot gun, tie wire came in contact with the base of the glass less then six inches away from conductor, the pole went to ground causing breaker to lock out causing a power outage and damage to the wire. Clearance was taken, repairs were made and power was restored. 1-21-20 WD Welding cart with 3 wheels is unstable, request to modify cart and add fourth wheel. Cart is out of service. 1-2-20 Quincy and Ephrata Two employees of the districts fiber contractor slid on ice while driving, one slid off the road with no injuries or damage to the vehicle and one slid into another vehicle causing small fender bender. 1-23-20 EHQ Employee using cross walk was almost hit by a car, cross walk lights not working 1-23-20 MLSC A vault was found opened along Nelson Rd and was reported by an ex-employee, serviceman was sent out to close and secure the doors, non local crews were working in the area so it is unknown who opened it or when. 1-21-20 ESC Had to avoid an oncoming vehicle sliding in icy conditions 1-21-20 EHQ Slipped and nearly fell while crossing the crosswalk
Date Location Description
1-28-20 EHQ Leg broke off rolling chair while employee was in it, did not fall and was not hurt 1-29-20 WD Rope Lighting was not working, GFI was reset, ballast began smoking and arcing in wet environment. GFI Breaker tripped again. Circuit de-energized, Work Order was created and Chief Clearance was placed on the feeder breaker in the Lighting Cabinet. 1-30-20 Heritage Center Power outage caused system failure alarms, we informed dispatch, called facilities electricians to correct issues caused by the outage and check for damage/failures. Restarted systems, had main exhibit issues, in the resource center we had no access to certain rooms to look for damage or potential fire hazards caused by the power surges. Resource center has no redundant power source like the rest of the building. which make it more susceptible to damage from this type of
Advanced preparation is key to a smooth and efficient compliance inspection. Upon arrival please do the following: Be courteous! Request that the compliance officer wait until management is contacted and the primary site contact arrives. Then immediately contact:
(You can also call 4110 – Safety Hotline)
Level O - Other – Close Call Level 1 – Serious Close Call Level 2 – First Aid Case(s) Level 3 – Recordable Injury Case(s) Level 4 –Restricted Duty Case(s) Level 5 – Lost Work Day Case(s) Level 6 – Fatality or Hospitalization
19 2
Employee Safety
2020 incidents Year to Date Summary
2019
67 7 11 8 5 7
Recordable Cases TTL.
20
Recordable Cases TTL.
Level O - Other – Close Call Level 1 – Serious Close Call Level 2 – First Aid Case(s) Level 3 – Recordable Injury Case(s) Level 4 –Restricted Duty Case(s) Level 5 – Lost Work Day Case(s) Level 6 – Fatality or Hospitalization
19 2
12 Month Rolling – Recordable Injury Rate 2019 vs. 2020
Powering our way of life.
Powering our way of life.
Commission Workshop 02/25/2020
GRANT PUD
SCOTT TOMLINSON, CCM VANIR Construction Management
STANLEY CONSULTANTS
1. Electric GIS 2. Fiber GIS 3. Electric Work Order Design 4. Fiber Work Order Design 5. Data Migration 6. Staff Augmentation 7. Various Interfaces 8. Field Audit
SCOTT TOMLINSON, CCM VANIR Construction Management
STANLEY CONSULTANTS Roles and Responsibilities Document
Steering Committee Selection Committee POWER Engineers Grant PUD Schneider Avineon Field Audit Executive Sponsor Project Director
SCOTT TOMLINSON, CCM VANIR Construction Management
STANLEY CONSULTANTS Roles and Responsibilities Document
Steering Committee Selection Committee POWER Engineers Grant PUD Schneider Avineon Field Audit Executive Sponsor Project Director
SCOTT TOMLINSON, CCM VANIR Construction Management
STANLEY CONSULTANTS Roles and Responsibilities Document
Steering Committee Selection Committee POWER Engineers Grant PUD Schneider Avineon Field Audit Executive Sponsor Project Director
SCOTT TOMLINSON, CCM VANIR Construction Management
STANLEY CONSULTANTS Roles and Responsibilities Document
Steering Committee Selection Committee POWER Engineers Grant PUD Schneider Avineon Field Audit Executive Sponsor Project Director
SCOTT TOMLINSON, CCM VANIR Construction Management
STANLEY CONSULTANTS Roles and Responsibilities Document
Steering Committee Selection Committee POWER Engineers Grant PUD Schneider Avineon Field Audit Executive Sponsor Project Director
SCOTT TOMLINSON, CCM VANIR Construction Management
STANLEY CONSULTANTS
Steering Committee Selection Committee POWER Engineers Grant PUD Schneider Avineon Field Audit Executive Sponsor Project Director
Roles and Responsibilities Document
SCOTT TOMLINSON, CCM VANIR Construction Management
STANLEY CONSULTANTS Roles and Responsibilities Document
Plus other stakeholders as needed
Steering Committee Selection Committee POWER Engineers Grant PUD Schneider Avineon Field Audit Executive Sponsor Project Director
*Core Team Members
SCOTT TOMLINSON, CCM VANIR Construction Management
STANLEY CONSULTANTS Roles and Responsibilities Document
Steering Committee Selection Committee POWER Engineers Grant PUD Schneider Avineon Field Audit Executive Sponsor Project Director
SCOTT TOMLINSON, CCM VANIR Construction Management
STANLEY CONSULTANTS Roles and Responsibilities Document
Steering Committee Selection Committee POWER Engineers Grant PUD Schneider Avineon Field Audit Executive Sponsor Project Director
SCOTT TOMLINSON, CCM VANIR Construction Management
STANLEY CONSULTANTS Roles and Responsibilities Document
Steering Committee Selection Committee POWER Engineers Grant PUD Schneider Avineon Field Audit Executive Sponsor Project Director
M J J A S O N D J F M A M J J A S O N D J F M A M J
High Level Project Plan
Critical Path Schneider Electric – S Grant PUD – G POWER Engineers – P Avineon – A Field Audit - F
Initiation (S/G/P/A) Analysis and Design (S/G/P/A) Build/Develop (S/G/P) SAT Planning (S/G/P) Install Test (S/G/P) Data Migration (A/G/P) System Testing (S/G/P) User Training (S/G/P) Go-Live (S/G/P/A) Field Audit Planning (G/F) Field Audit (G/F)
Tasks 2020 2021 2022
M J J A S O N D J F M A M J J A S O N D J F M A M J
High Level Project Plan - Electric
Schneider Electric – S Grant PUD – G POWER Engineers – P Avineon – A Field Audit - F
Initiation (S/G/P/A) Analysis and Design (S/G/P/A) Build/Develop (S/G/P) SAT Planning (S/G/P) Install Test (S/G/P) Data Migration (A/G/P) System Testing (S/G/P) User Training (S/G/P) Go-Live (S/G/P/A) Field Audit Planning (G/F) Field Audit (G/F)
Tasks 2020 2021 2022
M J J A S O N D J F M A M J J A S O N D J F M A M J
High Level Project Plan - Fiber
Schneider Electric – S Grant PUD – G POWER Engineers – P Avineon – A Field Audit - F
Initiation (S/G/P/A) Analysis and Design (S/G/P/A) Build/Develop (S/G/P) SAT Planning (S/G/P) Install Test (S/G/P) Data Migration (A/G/P) System Testing (S/G/P) User Training (S/G/P) Go-Live (S/G/P/A) Field Audit Planning (G/F) Field Audit (G/F)
Tasks 2020 2021 2022
SCOTT TOMLINSON, CCM VANIR Construction Management
STANLEY CONSULTANTS Appendix Packet Link – Project Cash Flow Summary
Appendix Packet Link - Project Economic Analysis Support
Appendix Packet Link - Project Economic Analysis Support
Appendix Packet Link - Project Economic Analysis Support
SCOTT TOMLINSON, CCM VANIR Construction Management
STANLEY CONSULTANTS
Vendor Service Cost Uncertainty Schneider Electric Software and Implementation $ 1,404,148 +/- 10% POWER Engineers Staff Augmentation 830,000 +/- 10% Avineon Data Migration 479,000 +/- 40% Vendor TBD Field Audit 1,000,000 +90% / -10% Grant PUD Internal Labor 1,576,000 +/- 35% Total $ 5,289,148 $4.4M - $7.2M
SCOTT TOMLINSON, CCM VANIR Construction Management
STANLEY CONSULTANTS
SCOTT TOMLINSON, CCM VANIR Construction Management
STANLEY CONSULTANTS
Schneider Electric
+/-10%
POWER Engineers
+/-10%
Avineon
+/-40%
Field Audit TBD
+90% /-10%
Internal Labor
+/-35%
Capital Cost Uncertainty Analysis
SCOTT TOMLINSON, CCM VANIR Construction Management
STANLEY CONSULTANTS
SCOTT TOMLINSON, CCM VANIR Construction Management
STANLEY CONSULTANTS
PAD
SCOTT TOMLINSON, CCM VANIR Construction Management
STANLEY CONSULTANTS
Powering our way of life.
Powering our way of life.
Process Co-Leads: Clark Kaml and Louis Szablya Presented by: Louis Szablya and Baxter Gillette, Large Power Solutions February 25, 2020
2
El Rate Class to recommend if it is appropriate for a customer's industry to move into, or out of the El Rate Class
(now called Large Power Solutions), Customer Solutions, Engineering, Rates, and Finance/Accounting
3
Name Role Dave Churchman Executive Sponsor Louis Szablya*/Clark Kaml Co-Lead Large Power Solutions/Rates Baxter Gillette Update Manager** Terry McKenzie Customer Service Mike Facey Accounting Jesus Lopez Engineering Bonnie Overfield Finance Paul Dietz Risk Management
*Prime ** Subject Matter Expert
4
information, if necessary
Industry or Use Assessment
6
Industry Class
has meets the criteria established by resolution 8891
request queue compared to total Grant PUD load
Porter’s Five Forces
feedback from investment banks
7
Industry queue going from 402.0 MW to 89.5 MW while the traditional queue went from 112.5 MW to 477.5 MW
Concentration Threshold Calculation 2017 2019 % Change Load aMW 537.0 589.5 9.8% Queue MW 514.5 567.0 10.3% Sum 1,051.5 1,156.5 10.0% 5% 52.6 57.8 9.9%
8
8.7 22.5 402 89.5 410.7 112 57.8 57.8 50 100 150 200 250 300 350 400 450 2017 2019
Cryptocurrency Mining / Cryptomining
Actual aMW Queue MW Total 5% Threshold
activities and / or industries within Grant PUD’s service territory were assessed
that exceeds the threshold of 57.8
Industry or Use Assessment
10
development of various versions of the entire system
systems
demand, social, and institutional uncertainties are resolved.
1
From Invention to Commercial Viability
RIVALRY AMONG EXISTING COMPETITORS
11
THREAT OF SUBSTITUTE PRODUCTS
available
substitute
differentiation
BARGAINING POWER OF SUPPLIERS
product
substitute
BARGAINING POWER OF BUYERS
THREAT OF NEW ENTRANTS
12
RIVALRY AMONG EXISTING COMPETITORS
currencies
Although cryptocurrencies are expanding and resilient, they continue to be a volatile, evolving industry.
BARGAINING POWER OF BUYERS
and ICE
86% of BTC
up 20%
THREAT OF SUBSTITUTE PRODUCTS
and ASIC resistance
companies
BARGAINING POWER OF SUPPLIERS
and difficulty)
THREAT OF NEW ENTRANTS
hacks, Ponzi schemes
13
in the Evolving Industry Class
Pricing Model Review
Rate Schedule 17 Billing Determinant Rates
15
separation of components to model better detail
Description Inputs Recommendation/Notes 1) Basic Energy 2017 COSA Unchanged 2) Transmission Acceleration Capital Costs Load-Duration Study Peak Load Study Coincidental Peak* Strike, Market Volatility Unchanged Adopt Load-Duration Study Adopt Peak Load Study Use Coincidental Peak Studied* Use Calculated EI and Embedded Unchanged based on NEPOOL Data 3) Distribution System Engineering Estimate Unchanged 4) Lost Retail Revenue Recovery Retail Rate Calculation Wholesale Prices Retail Load Probability of Departure* Use State-level Competitive Analysis* Update Price Data* Use Updated Actual Loads Adopt Enhanced and Updated Spread Analysis 5) Additional Assessment % Commission Unchanged
16
*Enhancement
17
pro-forma basis
associated with any specific planned construction project
18
2023 Peak = 75.9 MW 2023 Peak = 1,408.2 MW 75.9 + 1,408.2 = 1,484.1
19
20
2022 - 0.99% 2023 – 12.74%
21
pro-forma use - enhancement
RS 17 Transmission Acceleration ($/kWh) 17a Proposed $ 0.001921 Original $ 0.019200 Change $ (0.017279) Percent Change (90.0%)
22
updated)
23
longer history
Rate Schedule 17 Departure Due to Competition Recovery ($/kWh) Revenue Recovery 17a 17b Proposed $ 0.016836 $ 0.003963 Original $ 0.022200 $ 0.011000 Change $ (0.005364) $ (0.007037) Percent Change (24.2%) (64.0%)
24
Rate Schedule 17 Proposed 2019 Update ($/kWh) Rate Schedule 17b Rate Schedule 17ar & 17ac 31.00% Assigned Additional Assessment 31.00% Assigned Additional Assessment $0.028068 Rate 14 Cost to Serve $0.063100 Blended (RS 1 &2) Cost to Serve $0.001921 Transmission Acceleration $0.001921 Transmission Acceleration $0.003365 Distribution Adder $0.003365 Distribution Adder $0.003963 Departure Liquidation Cost $0.016836 Departure Liquidation Cost $0.011568 Additional Assessment $0.026419 Additional Assessment $ 0.048885 Target for RS17b $ 0.111641 Target for RS17a $0.060610 11/25/2019 Workshop $ 0.106500 11/25/2019 Workshop $0.080800 Original 2021 Target $0.138200 Original 2021 Target
25
Rate Schedule 17 Proposed 2019 Update ($/kWh) Rate Schedule 17a Rate Schedule 17b Proposed November Original Component Proposed November Original Component 31.00% 31.00% 31.00% Assigned Additional Assessment 31.00% 31.00% 31.00% Assigned Additional Assessment $0.063100 $0.063100 $0.060700 Blended (RS 1 &2) Cost to Serve $0.028068 $0.028068 $0.028100 Rate 14 Cost to Serve $0.001921 $0.000749 $0.019200 Transmission Acceleration $0.001921 $0.000749 $0.019200 Transmission Acceleration* $0.003365 $0.003365 $0.003400 Distribution Adder $0.003365 $0.003365 $0.003400 Distribution Adder $0.016836 $0.014086 $0.022200 Departure Liquidation Cost $0.003963 $0.014086 $0.011000 Departure Liquidation Cost** $0.026419 $0.025203 $0.032705 Additional Assessment $0.011568 $0.014343 $0.019116 Additional Assessment $ 0.111641 $ 0.106503 $ 0.138205 Target for RS17a $ 0.048885 $ 0.060611 $ 0.080781 Target for RS17b Dimmed text shows unchanged components
26
Current RS 17 Current RS17a RS17b 2019 2020 2021 2019 2020 2021 Base $5.00 $7.50 $10.00 $500.00 $750.00 $1,000.00 Energy $0.054480 $0.081650 $0.122090 $0.022190 $0.024650 $0.035180 Demand $8.00 $19.00 $30.00 Proforma Customer RS17a RS17b 2019 2020 2021 2019 2020 2021 Base $152.08 $228.13 $304.17 $500.00 $750.00 $1,000.00 Energy $1,103.63 $1,654.02 $2,473.24 $30,081.56 $33,416.43 $47,691.27 Demand $0.00 $0.00 $0.00 $16,000.00 $38,000.00 $60,000.00 Bill Total $1,255.71 $1,882.15 $2,777.40 $46,581.56 $72,166.43 $108,691.27 All-in Rate $0.061988 $0.092911 $0.137105 $0.034361 $0.053234 $0.080177 Target $0.138200 $0.080800
27
Current RS 17 Current RS17a RS17b 2019 2020 2021 2019 2020 2021 Base $5.00 $7.50 $10.00 $500.00 $750.00 $1,000.00 Energy $0.054480 $0.081650 $0.122090 $0.022190 $0.024650 $0.035180 Demand $8.00 $19.00 $30.00 Proforma Customer RS17a RS17b 2019 2020 2021 2019 2020 2021 Base $152.08 $228.13 $304.17 $500.00 $750.00 $1,000.00 Energy $1,103.63 $1,654.02 $2,473.24 $30,081.56 $33,416.43 $47,691.27 Demand $0.00 $0.00 $0.00 $16,000.00 $38,000.00 $60,000.00 Bill Total $1,255.71 $1,882.15 $2,777.40 $46,581.56 $72,166.43 $108,691.27 All-in Rate $0.061988 $0.092911 $0.137105 $0.034361 $0.053234 $0.080177 Target $0.138200 $0.080800 Recommended RS 17 Recommended RS17a RS17b 2019 2020 2021 2019 2020 2021 Base $5.00 $7.50 $10.00 $500.00 $750.00 $1,000.00 Energy $0.054480 $0.075588 $0.096626 $0.022190 $0.013039 $0.003888 Demand
$19.00 $30.00 Proforma Customer RS17a RS17b 2019 2020 2021 2019 2020 2021 Base $152.08 $228.13 $304.17 $500.00 $750.00 $1,000.00 Energy $1,103.63 $1,531.23 $1,957.40 $30,081.56 $17,676.14 $5,270.71 Demand $0.00 $0.00 $0.00 $16,000.00 $38,000.00 $60,000.00 Bill Total $1,255.71 $1,759.36 $2,261.57 $46,581.56 $56,426.14 $66,270.71 All-in Rate $0.061988 $0.086850 $0.111641 $0.034361 $0.041623 $0.048885 Target $0.111641 $0.048885
28
Evolving Industry Class
threshold
transmission given the current loads and queues is less than 12 months
competitive states as evidenced by some cryptomining companies
29
Schedule 17 Update Team
the inclusion or removal of certain energy load activity and / or industry from the Evolving Industry Class
Powering our way of life.
1
The RPIC administers the District 401(a) and 457(b) deferred
compensation plans
Members of the committee are appointed by the Manager (some
District positions require committee membership).
Current Members:
*Required committee members
2
Supplemental retirement and/or post employment income Part of overall compensation package of a competitive
employer
Tax advantages Many employees do not work at Grant for a full career
A 401(a) plan is a Governmental Profit-Sharing retirement plan that is set up by
an employer. The plan allows for contributions by the employer, the employee
and the sponsoring employer establishes eligibility and the vesting schedule. Withdrawals incur a 10% federal penalty unless the employee is 59 1/2, dies, retires, is disabled or rolls over the funds into a qualified IRA or retirement plan.
A 457(b) plan is a deferred compensation plan established by state and local
governments and tax-exempt governments and tax-exempt employers. Eligible employees are allowed to make salary deferral contributions to the 457 plan. Earnings grow on a tax-deferred basis and contributions are not taxed until the assets are distributed from the plan.
4
401(a): Eligible participants choose a contribution percentage within
60 days of fulltime regular employment status. Beginning 4/1/2020 an employee can choose a contribution percentage from 1% to 20% (of gross pay). The current limits are from 4% to 20% of gross pay. This is an irrevocable election that cannot be changed or inactivated. Beginning 12/27/2019 all employees began to receive a 3% contribution from the District that is not dependent on an employee contribution.
457(b): Eligible participants may elect any amount (flat amount or
percentage) and may change their contribution any time throughout the year. The current Federal annual limit is $19,500 (age 50 and
5
Currently - total plan fees are 10.5 basis points (0.105%)
Beginning 4/1/2020 – total plan fees will be $88 per account
per year
These fees are for the operation of the plan and do not include the management fees charged by the funds in the plan
6
457(b) 401(a) Eligible Employees 648 648 As of 12/12/19 Participating Employees 446 563* As of 12/31/19 Percent Participation 69% 87% Approximate due to dates shown above Total Participants including those not 698 784 As of 12/31/19 currently employed by the District Number of Investment Options 30 30 As of 12/31/19 Plan Balance on 12/31/19 $70,835,40 $60,331,928 *401 participation does not include the added accounts on 12/27/19 where all employees receive a contribution. These accounts had zero balance on 12/27/19. Participation in the 401 is now 100%
7
Su Summary of
some
the is issues addre ddressed by by th the I IPS
Purpose Statement
Role of the Deferred Compensation Committee
Role of Investment Adviser
8
Su Summary of
some
the is issues addre ddressed by by th the I IPS
Design of investment menu
Fund management personnel Performance Adherence to stated investment style Risk adjusted return Fees and expenses Criteria for monitoring, adding and removing funds
9
The District uses ICMA-RC for record keeping, educational, and
The ICMA-RC contract is re-evaluated on a regular basis and the
committee can choose to change the record keeper upon conclusion
Tasks performed by the record keeper include Individual account recordkeeping Contribution and distribution administration Fund transfers Loans Fee collection General communication Education and outreach One on one participant consultations including financial planning
10
The committee utilizes a consultant to ensure the District is
following best practices for deferred compensation plans.
Cammack Larhette Advisors, LLC is our advisor. Cammack’s
advise includes but is not limited to:
Regulations Monitoring the investment performance Investment menu including changes to funds in the plan Fees Communication with participants Following the IPS New legislation and issues that need to be addressed
11
District and individual committee members have fiduciary
responsibility.
The Commission has fiduciary responsibility based on global
The District provides insurance to cover fiduciary responsibly of
the District and the individual employees who are fiduciaries.
The District has an indemnification resolution #3311. Advisor also carries insurance and acts as a co-fiduciary.
12
Participants may keep their accounts in the District program during
retirement
Total fees within the District program will typically be much lower
than fees in a managed account.
Fund fees will typically be lower in the District program compared to
a discount broker since the District program has access to institutional shares, which have lower fees for the exact same fund compared to shares available to individual investors
The District is able to negotiate lower institutional share fees with
higher balances, and thus all the participants benefit when retirees keep their funds in the District program.
13
14
Quarterly Commission Update 2/25/2020
Powering our way of life.
Enterprise Technology
Project Management Office
Power Production
Power Delivery
Project Management Office = Strategy Execution Office Purpose
successful project delivery, ultimately creating greater business value to Grant PUD.
involved in managing and implementing projects within Grant PUD. Goal
The success of the PMO is derived exclusively from achieving greater business value to the utility.
Senior Manager PMO Julie Pyper Manager Power Production Projects Aaron Kuntz Administrative Assistant Project Managers Outage Coordinator Project Services Supervisor Dustin Bennett Project Coordinators Construction Inspectors Lead Project Manager Randy Weisheit Manager IT Projects Chris Roseburg Project Manager Project Coordinators Senior Training Coordinator Manager Power Delivery Russ Seiler Project Managers Project Coordinators Business Analysts Administrative Assistant
Attendance Goal = 100% Annual Average = 96%
behavior/conditions, suggestions for areas of improvement
CAPITAL O&M TOTAL DIRECTS BUDGET $34,928,995 $148,805 $35,077,800 ACTUAL $36,270,110 $182,779 $36,452,889 % SPENT 104% 123% 104% LABOR BUDGET $2,256,934 $911,914 $3,168,848 ACTUAL $1,941,466 $1,257,831 $3,199,297 % SPENT 86% 138% 101% TOTAL BUDGET $37,185,929 $1,060,720 $38,246,649 ACTUAL $38,211,576 $1,440,610 $39,652,186 % SPENT 103% 136% 104%
* Preliminary December Actuals
roadmap of projects, including development of the organizational change management capability for the PMO.
delivered the capability to electronically assign work to field crews.
project went live for core HR and Payroll.
migrate from an in-house to a cloud solution.
work order design solution.
line technology and application stack to the Office365 cloud platform.
standardized project framework.
projects.
and integrate it with the PMO project framework.
efficiency.
implementation scheduled to commence in Q1 2020.
to complete in early Q3 2020.
and remaining in-house infrastructure to the Office 365 cloud. Projected to complete in late Q3 2020.
Sheila Wald Greg Cardwell Jeremy Conner David Klinkenberg Vangie Crago
Committee
Management
Builds
Procurement, Permitting for 2020 Builds
2020 Builds in April
“Guaranteed Maximum Price”
Early Summer
Planning
Planning
needed basis. Current services include construction inspection, coordination of turnover deliverables, and management of third party inspection service contract.
management capabilities
Manager Brent Gregory to help PMO implement the first steps of the PMO Moving Forward project
dashboard
managed by the PMO
within the PMO
Powering our way of life.
deal with the increasing rate of change)
Connects the change to business results
Why are we changing? What we are changing? Who will be changing?
Decrease
Productivity loss Employee dissatisfaction Passive resistance
Increase
Speed of Adoption Ultimate Utilization Proficiency
Project Success
Change Impact Expectations Productivity Resistance Communication
The feelings you experienced in the simple exercise we did are compounded in our organization. These are the areas change management targets.
2019
2020
within the utility
The good news...
MEMORANDUM
February 20,2020 TO: Jeffrey Bishop, Chief Financial Officer FROM: John Mertlich, Sr. Mgr Financial Planning & Analysis Jeremy Nolan, Lead Financial Analyst
SUBJECT:
4*^ Quarter 2019 FinancialForecast Update
Purpose: Provide Highlights of the Q4 Financial Forecast
Metrics:
through 2024 (Exhibit C).
2020, 2022, and 2023, v^/hile missing the target in 2021 and 2024.
meets the long-term target in 2020, and then 2022 and beyond.
Exhibit I.
Notes of Interest:
Statement.
Forecast to cover the incremental cost differential of power supply beyond existing capabilities.
forecast for 2020 and beyond, including additional new capital fundings to utilize cash.
year for both Net Income and the Metrics: Wholesale prices through 2022 are up from a year ago when the 2019 Budget was constructed, although down for 2023 and beyond. The prices are also down from the 2019 Q3 Financial Forecast update, as shown in the table below.
2
Impact of Updates from prior quarterly report (Exhibit E):
and affects of SENA contract
beyond point of market position and no post-shell contract in place
debt for refunding existing debt in PRP and Electric System completed in January 2020, compared to the forecast Cash Optimization and Debt Structuring in the Q3 Financial Forecast
$11.1M
vs Q3 estimate of $83.3M
reduction
reduction
$34.8M reduction
investment accounts Scenarios:
3
higher wholesale energy prices.
Low Water scenario create the two largest negative impact to DSC, indicating that growing profitable loads and reducting Water risk are key controllable business drivers.
cut expenses and/or borrow more to avoid consuming working capital and reserves.
year, so there will show some cash accumulation at the end of every year, but much lower than previously shown.
wholesale energy prices.
Conclusions and Path Forward:
Recommendation:
4
EXHIBIT A – Summary of Budget Items (in thousands of dollars)
5
EXHIBIT B – Consolidated Operational Performance (in thousands of dollars)
6
EXHIBIT C - District Annual Financial Metric Targets
7
EXHIBIT D - Comparison between 2019 Budget and Q4 2019 Financial Forecast
8
EXHIBIT D - Comparison between 2019 Budget and Q4 2019 Financial Forecast (con’t)
9
EXHIBIT E - Comparison between 2019 Q3 Financial Forecast and Q4 2019 Financial Forecast
10
EXHIBIT E - Comparison between 2019 Q3 Financial Forecast and Q4 2019 Financial Forecast (con’t)
11
EXHIBIT F- Scenarios: Debt Service Coverage Ratios
12
EXHIBIT G - Scenarios: Excess Liquidity
13
EXHIBIT H - Scenarios: Debt to Net Plant
14
EXHIBIT I - Debt to Net Plant Ratio Illustrative Example – Historic Cost vs Fair Market Value
Powering our way of life.
February 2020
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portfolio $566.2M (market based)
service payment of $59.2M plus defeasance transaction
cash due to debt defeasance
Cash & Investments -Quarter Review
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in 2019, the current range is 1.50-1.75 (no change at Jan meeting)
diversification, market averaging, and duration targets
requirements
Cash & Investments -Quarter Review
1 Mo 2 Mo 3 Mo 6 Mo 1 Yr 2 Yr 3 Yr 5 Yr 7 Yr 10 Yr 20 Yr 30 Yr 1/31/2019 2.42 2.43 2.41 2.46 2.55 2.45 2.43 2.43 2.51 2.63 2.83 2.99 3/29/2019 2.43 2.44 2.4 2.44 2.4 2.27 2.21 2.23 2.31 2.41 2.63 2.81 6/30/2019 2.18 2.15 2.12 2.09 1.92 1.75 1.71 1.76 1.87 2 2.31 2.52 8/7/2019 2.02 2.04 2.02 1.95 1.75 1.59 1.51 1.52 1.6 1.71 2.01 2.22 10/31/2019 1.59 1.59 1.54 1.57 1.53 1.52 1.52 1.51 1.6 1.69 2 2.17 12/31/2019 1.48 1.51 1.55 1.6 1.59 1.58 1.62 1.69 1.83 1.92 2.25 2.39 1 1.5 2 2.5 3 3.5
US Treasury Yield Curve-2019 Significant Dates
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Cash & Investments -Quarter Review
Portfolio Holdings Data as of 12/31/19
2.066
3.351
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larger portion in the Washington State LGIP, resulted in increased earnings over prior strategy and ability to manage to liquidity call for bond defeasance
1.77%
1.88%
to tighter cash balances
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fund principal benefits): 3.6% (pre-transaction as of 12/31 was 3.95%
Total Consolidated Outstanding Debt $1,269,395,000
repaid to Electric) = $327 million (not included in external amount in graph)
1. ES 2017-M: Senior Lien- Fixed – 9/20 maturity, 2% fixed coupon 2. ES 2017-N: Subordinate Lien- Variable/Libor – 12/20 maturity, 47.5 + Libor 3. ES 2019-P: Subordinate Lien- Variable/Libor – 7/21 maturity, 37+ Libor
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PRP 2020Z Pricing Results:
$25.2M in nominal gross reduced debt service savings
ES 2020Q Pricing Results:
Overall Refunding Outcome:
coupons)
$33.3M
par amount of refunding bonds of $202.1M
refunding policy of > 3% NPV savings
into pricing, timing, and market environment lead to a significant reduction in overall debt service
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Defeasance Outcome:
payments
escrow call date (net of interest due and earned)
effective 1/29/20
$16.3M
$6.3M
$10.4M
$14.1M to increase debt reduction
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10
fixed rate date and monthly on variable rate debt
to the District following the Jan/July interest payments
2019 rebate = $10.55M
estimated 2020 rebate = $10.53M
debt service coverage as a financial metric
for individual liens/notes
to the maturity dates
market conditions, January 2020 update resulted in ~$2.11M reduction: decreased by $178k in years ‘20-26, $91k in years ’27-31, and $51k in years ’32-39.
repayment
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credit ratings from Fitch, Moody’s and S&P for the 2020 issuances.
ratings
rating than PRP at this high investment grade level
Powering our way of life.
13
14 Last Updated On: 8/06/2019
15 *notes:
“custody” agent for Washington Trust for investments
Investment Pool is authorized by the state of Washington to manage government funds (not needing separate authorization) Last Updated On: 10/21/2019
16 Last Updated On: 10/18/2019
MEMORANDUM
February 19, 2020 TO: Kevin Nordt, General Manager VIA: Jeff Bishop, Chief Financial Officer FROM: Michael Facey, Senior Manager Accountin Bryndon Ecklund, Financial Reporting Analyst SUBJECT: Unaudited 2019 Financial Statements and Year End Close Update
Purpose
Circulate preliminary fiscal year 2019 unaudited consolidated financial statements and provide update
Year End Close Timeline Update
in Net Position Available - Complete - 2/19/2020
Meeting 4/28/2020
Financial Highlights
All comparisons unless otherwise stated are year to date {January through December) of 2019 versus
$222M were $19.3M (9.5%) higher than the same period in the prior year. Resulting in a decrease in net
Statement of Revenues. Expenses and changes in net position Operating Revenues
Operating revenues were $9.4M (3%)higher than the same period in the prior year driven by a $5.0M
(3.9%) increase in commercial and industrial revenues, which is consistent with growth in our load
forecast for those customer classes. Additionally, residential revenues increased by $3.7M (8.5%)due to a much colder than average first quarter 2019 and a slightly colder than average fourth quarter of 2019. Wholesale revenues, net increased by $2.2M (3.3%) off-set by a $2.2M (7%) decrease in Sales to power purchasers at cost. Fiber optic network sales (Wholesale Fiber) increased by $1.2M (14.2%) driven by an
increase in take rate and continued expansion of the network.
Operating Expenses
Total operating expenses of $222M were $19.3M (9.5%) higher than the same period in the prior year driven by Depreciation expense {$3.4M or 4.6%increase), Generation expense ($12.6Mor 40.8% increase). Distributionexpense ($13.8I\/I or 102%increase), and License compliance costs ($10.1M or
50.5% decrease). Other Revenues and Expenses
Total other revenues and expenses of $23.3M in net expenses were $7.9M (25.4%) less than the same period in the prior year driven primarilyby a $10.7I\/I (94,2%) increase in Interest and other income due to the increase in the unrealized gain on our investment holdings. This increase is in line with market
interest rates decreased in 2019 having the opposite impact on the fair value of long-term investments.
Thischange in rate environments resulted in an unrealized gain on our investments of $5.2M versus the $2.9M lossthat was recognized at the same point in the prior year (difference of $8.1M). Additionally,
total interest income of $13.8M was $1.5M (12%) higher than the same period in the prior year driven by a $34M increase in our investment holdings during 2019. These increases were partially off-set by an increase in interest expense of $2.6M (4.6%) because no interest was capitalized in 2019 in accordance with new accounting guidance (GASB 89).
Change in Net Position
Total change in net position of $83.9M is $6M (6.7%) lower than the same period in the prior year. This decrease is largely due to the total operating expenses increase of $19.3M (9.5%)described above, and a decrease of $3.9M (31.2%)decrease in CIAC revenue.
Statement of net position Current and Noncurrent Assets
Total cash and investments of $565M were $23,4M (4.3%)more than the same period in the prior year. Net Utilityplant increased $116.2M or 5.5%,which is consistent with the continued investment driven by growth in the Electric System and major turbine and generator upgrades for the Priest Rapids Project and the change to our FERC licensing obligation estimate discussed below.
Current and Noncurrent Liabilities
Total current liabilities of $150.6M were $11.8M (8.5%) more than the same period in the prior year. This change was driven primarily by Trade Accounts Payable ($11.4M or 50.2% increase), and Customer Deposits ($7.3M or 53% decrease). The $11.4M increase in Trades Payable was primarily driven by a $3M increase in A/P associated with delivery of inventory in December and $9.1M of accruals. Total noncurrent liabilitiesof $1.43B were $31.2M (2.2%) more than the same period in the prior year. This is driven by the $66M (135%) increase in our FERC licensing obligation. The licensing obligation increased due to a change in our methodology for estimating the liability. Grant continues to anticipate payments of approximately $2M per year adjusted for inflation through the license term of 2052, but no
longer discount this payment stream at approximately 4% to better align our estimate methodology
with authoritative accounting guidance. Total unearned revenue went up $10M (139%), due to
contributions for expansion from large industrial customers received in the second half of 2019. These increases were off-set by a $33.7M (2.5%) decrease in outstanding bonds and a $7.9M (24%) decrease in total pension liability. Recommendation; For your information only.
PUBLIC UTILITY DISTRICT NO. 2 OF GRANT COUNTY UNAUDITED STATEMENT OF NET POSITION
December 31,2019 AND 2018
2/18/2020 2019 2018 Difference CURRENT ASSETS Cash
104,567 2,822,490.69 (2,717,923)
Investments
103,498,886 131,675,640.68 (28,176,754)
Restricted funds
1,018,719 920,831 97,888
Investments
142,728,947 125,860,553 16,868,394 Customer accounts receivable, net 24,981,883 29,849,023 (4,867,141)
Materials and supplies Due from power purchasers 17,428,988
17,955,612 1,194,120
(526,624) (1,194,120)
Other current assets
1,785,764 1,584,123 201,641
Total current assets
291,547,755 311,862,394 (20,314,639) NONCURRENT ASSETS
Investments
13,087,590 21,538,600 (8,451,010)
Restricted f\mds Cash 534,674
144,180 390,495
Investments
304,505,209 259,091,904 45,413,304
Conservation loans 397,172 364,947 32,225
Demand-sidemanagement
211,389 413,148 (201,758)
Preliminary expenses
4,083,016 6,004,787 (1,921,771)
Total other noncurrent assets 322,819,050
287,557,566 35,261,485
Utility plant, net
2,213,414,770 2,097,260,603 116,154,168
Total noncurrent assets 2,536,233,820 2,384,818,168
151,415,652 DEFERRED OUTFLOWS
Net pension, change in proportion
6,409,454 5,753,562 655,892
Other post employment benefits Unamortizedrelimding loss
2,276,122 3,499,464 4,374,163 2,276,122 (874,699) Total deferred outflows 12,185,040 10,127,724 2,057,315 TOTAL ASSETS AND DEFERRED OUTLFOWS OF RESOURCES 2,839,966,615 2,706,808,287 133,158,328
PUBLIC UTILITY DISTRICT NO. 2 OF GRANT COUNTY UNAUDITED STATEMENT OF NET POSITION December 31,2019 AND 2018 2019 2018 Difference CURRENT LIABILITIES
Accounts payable
Trade
34,169,678 22,746,821 11,422,857
W^es payable
13,486,365 12,742,207 744,159
Due to Power Purchasers 2,194,448
Accrued taxes
7,513,500 7,431,122 82,378
Customer deposits 6,552,522 13,831,566 (7,279,044)
Accrued bond interest
28,744,818 29,469,613
(724,795)
Unearned revenue
9,501,660 4,981,722 4,519,937
Habitat liability
15,508,571 15,984,784 (476,213)
Other current liabilities 39,768
39,768
2,283,494 2,283,494
30,580,000 29,240,000 1,340,000
Total current liabilities
150,574,825 138,751,097 11,823,728
NONCURRENT LIABILITIES
Accrued other postemployment benefits
9,690,007 6,977,140 2,712,867 Long-term unearned revenue 7,591,377 2,157,258 5,434,119
Licensingobligations,less current portion
112,683,015 46,747,953 65,935,062
Pension obligations
24,837,391 32,686,126 (7,848,735)
Revenuebonds, less current portion
1,238,815,000 1,269,395,000 (30,580,000)
Unamortized (discount) premium, net
32,253,748 36,667,892 (4.414,144)
Total noncurrent liabilities
1,425,870,538 1,394,631,369 31,239,169
DEFERRED INFLOWS
Net pension, deferred inflow
15,219,865 13,692,570 1,527,296
Total deferred inflows
15,219,865 13,692,570 1,527,296 Total liabilities and deferred inflows ofresources 1,591,665,228 1,547,075,035 44,590,193 NET POSITION
Invested in capital assets, net ofrelated debt
869,516,411 749,689,492 119,826,918
Restricted
333,375,395 303,885,512 29,489,883
Unrestricted
45,409,581 106,158,248 (60,748,666) Total net position 1,248,301,387 1,159,733,252 88,568,135 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NHI'
POSITION 2,839,966,615
2,706,808,287 133,158,328
PUBLIC UTILITY DISTRICT NO. 2 OF GRANT COUNTY
UNAUDITED
STATEMENT OF REVENUES AND EXPENSES AND CHANGES IN NET POSITION
For the twelve months ending December 31, 2019 and 2018
2019 2018 Difference
Sales to power purchasers at cost
29,443,007 31,610,564 (2,167,557)
Retail energy sales
Residential
46,844,433 43,160,405 3,684,028 Irrigation 24,926,524 25,785,050 (858,526)
Commercial and industrial 135,432,153 130,389,948
5,042,205
Governmental and others
2,692,909 2,056,037 636,872
Sales to other utilities
69,380,764 67,185,683 2,195,081
Fiberoptic network sales
9,431,404 8,260,172 1,171,232 Other 2,532,435 2,822,922 (290,487)
Total operating revenues
320,683,629 311,270,782 9,412,847 OPERATING EXPENSES
Generation
43,759,708 31,072,379 12,687,329
Transmission
6,475,707 6,679,185 (203,478)
Distribution
27,381,897 13,561,222 13,820,675
Customer and infomiation services
4,302,698 5,766,110 (1,463,413)
Fiber optic network operations
2,721,332 2,265,193 456,138
Administrative and general
33,038,493 33,382,985
(344,493) License compliance and related agreements 9,882,518
19,945,366
(10,062,848) Depreciation and amortization
76,588,266 73,234,133 3,354,134
Taxes
17,885,973 16,801,299 1,084,674
Total operatingexpenses
222,036,591 202,707,872 19,328,718 NET OPERATING INCOME 98,647,038 108,562,910 (9,915,872)
OTHER REVENUES (EXPENSES)
Interest and other income
22,121,614 11,392,090 10,729,525
Intereston revenue bonds and other, net ofcapitalizedinterest
(59,343,983) (56,746,956) (2,597,027)
Federal rebates on revenue bonds
10,545,371 10,551,974 (6,603) Amortization ofdebt discount/premium 3,539,445 3,641,316 (101,871)
Cost of debt issuance (141,109) (33,050) (108,059)
Total other revenue (expenses)
(23,278,662) (31,194.626) 7,915,964 CONTRIBUTIONS IN AID OF CONSTRUCTION 8,511,292 12,484,616 (3,973,324) CHANGE IN NET POSITION 83,879,668 89,852,900 (5,973,232) NET POSITION
Beginning ofyear
1,159,733,942 1,069,880,352
89,853,590 End ofyear 1,243,613,610 1,159,733,252 83,880,358