Board Members present: Susie Smith, Jeff Osanka, Sandra Bishop, and Dorothy Anderson. Commissioner Dyer was excused.
Others present: Randy Berggren, Tom Buckhouse, Marty Douglass, Roseanna McArthur, Garilyn Crowley, Cathy Bloom, Jim Origliosso, Scott Spettel, Everett Jordan, Mat Northway, Dave Koski, Garry Kunkel, Gale Banry, Debra Wright, Ken Beeson, Dick Varner, Dick Helgeson, and Krista Hince of the EWEB staff; Peter Bartel, member of the public; and Kim Kunkel, Minutes Recorder.
President Smith called the meeting to order.
1999 BUDGET AND WORK PLAN
Referring to a series of overhead displays, copies of which were distributed to the Board, Jim Origliosso, Treasurer, briefly reviewed the accounting view of the 1999 Electric Utility operating and capital budgets.
Referring to a memorandum that was included in the meeting agenda packet, Electric Division Director Garry Kunkel highlighted the Electric Division project priorities, reviewed the status of staffing in the Electric Division, reviewed the budget comparison under each Electric Division program area, and updated the Board with regard to the current status of the Electric Division capital budget.
Referring to the Electric Division 1999 Budget Summary, Electric Division staff members highlighted differences between the 1998 and 1999 budgets of each of the following Electric Division program areas:
With regard to the Electric Wholesale Marketing program area, President Smith expressed concern that although the Board's emphasis has been on resource planning, staff's focus appears to be on trading. In addition, President Smith reiterated her request that staff report back to the Board its findings related to available resources. She stated that contradictory to the notion of resource planning, the Wholesale Marketing program seems weighted to the near- and mid-term rather than the long-term. Mr. Kunkel said President Smith's point, with regard to the need for a staff report on available resources, was well taken. He explained that from staff's perspective, the Board' direction that will resul from the Integrated Electric Resource Plan is crucial in terms of not only the resources EWEB decides to acquire, but the longer-term level of staffing that will be required.
President Smith stated, and Vice President Osanka agreed, that staff should consider placing back into the Resource Acquisition Plan project the FTE that was eliminated. She said she would like a .5 FTE added back to ensure that the resource planning effort is adequately maintained in 1999. She said a balance must be achieved between near-term trading and purchasing and long-term resource planning. Mr. Berggren stated that adding back the FTE would merely be symbolic. He said adequate resources have been budgeted. Mr. Kunkel said staff would return to the Board with information regarding how the resource planning effort can be achieved at current staffing levels for the 1999 budget period.
Mr. Banry, Energy Resources Project Manager, presented a brief overview of the Electric Division's Five Year Capital Plan, noting that it is a "work in progress." He said that although the 1999 capital budget reflects approximately $13 million in revenues, and $13.3 million in expenses, the 1999 short fall would be provided by capital resources and can be viewed as balanced.
The level of expenditure over the next five years is within established guidelines, but relicensing, Y2K, and some substation work are showing increased demand for capital funds beyond normal levels. To make up for projected $5 million short fall over the next five years, expenditures must be reduced or revenue levels increased. This is an issue that will continue to be evaluated and modified by staff as it prepares and develops the 2000 Electric Capital Budget.
The meeting adjourned at 7:28 p.m.