Board Members present: Patrick Lanning, Dorothy Anderson, and Henry Masterson. Vice President Ron Farmer and Commissioner Sandra Bishop were excused.

Others present: Randy Berggren, Chuck Dalton, Terry Bequette, Tom Buckhouse, Deborrah Brewer, Kathy Grey, Mark Freeman, Dick Helgeson, Dawne Howard, Jim Origliosso, Dick Varner, and Krista Hince of the EWEB staff; Joe Sams, City of Eugene Minutes Recorder; and member of the public.

President Lanning called the Special Board meeting to order at 7:30 p.m.

AGENDA CHECK

It was noted that Agenda Item No. 8 (Electric Capital Funding) had been addressed during the Work Session previous to the meeting.

APPROVAL OF CONSENT CALENDAR

Minutes:

1. April 15, 2002 Work Session

Resolutions

2. 2003A Electric Revenue Bonds - Financial Division - Authorize execution of up to $64 million of Series 2003A Electric Revenue Bonds

3. A Resolution Amending the Resolution Adopted April 15, 2003 Regarding the Request of the City of Eugene to Authorize the Issuance and Sale of Electric System Revenue Bonds - Finance Division

Intergovernmental Agreement (IGA)

4. Lane County Health and Human Services - Customer Relations - Customer Services Division - REACH Program, $140,000; Universal Service Program, $100,000

Business Service Agreements

5. Performance Management Group - Process Review - Electric Operations Work Flow - Electric Operations - Electric Division - $32,316

6. Quantec - Customer Relations - Customer Services Division - $109,905

Commissioner Anderson, seconded by Commissioner Masterson, moved to approve the items on the consent calendar. The motion passed unanimously.

ITEMS FROM BOARD MEMBERS

Commissioner Anderson commented that she had attended a McKenzie Watershed Council at Leaburg where relicensing issues had been discussed. She said more residents from the area had shown up than council members. She said residents were concerned over tree removal issues in the area.

President Lanning said he attended another meeting regarding the undergrounding on Franklin Boulevard for Lane Transit District and the Bus Rapid Transit Project. He questioned whether the utility would find any funds to help complete that project.

General Manager Randy Berggren said there were a couple of reliability projects that could be deferred to a later date to allow for some funding to be allocated to undergrounding work. He noted that this would place some risk on the utility's reliability. He added that he had delayed putting an option in front of the Board until the City of Eugene could put up a like amount.

President Lanning said he had attended Bond Rating meetings in San Francisco. He said he was very impressed with the presentations of Dick Varner, Fiscal Services Supervisor, and Mr. Berggren. He said they represented the utility in a very positive way. He said it was a great experience.

Mr. Berggren said the utility's ratings had been confirmed as A+, A1 with a stable outlook, and AA- with a negative outlook. He said the ratings were very good news from his perspective.

CORRESPONDENCE

Mr. Berggren noted that informational memos had been sent out regarding public hearings on the McKenzie, progress on the Public Utilities Commission system compliance, public access hour changes, home energy loans, transmission tariff analysis, and a notification of a lawsuit filed against EWEB by Anne Hope.

PUBLIC INPUT

Gary Rayor spoke as a concerned citizen about the cost of services. He raised concern over the role of the energy management division and opined that the department was too big. He questioned whether that department was saving the utility any money. He said, as times got worse, EWEB needed to focus on its core services. He said he would follow up on his comments with a letter to the Board.

Commissioner Anderson commented that the Board looked on conservation as a resource. She said it took a lot of work with the community to develop that resource. She urged him to think of the issue from that perspective when writing his letter to the Board.

NET METERING RATE

John Yanov, Senior Rates/Financial Analyst, outlined a rate proposal on an increase in the net metering rate which would reimburse customers who generated more power than they used during a month's time. He said the state legislature had encouraged customers to develop small generation projects that were less than 25 kilowatts. He said it was an incentive rate to encourage customers to install small generation projects with the hope of reducing EWEB's generation load.

Mr. Yanov said staff were simplifying the rate so it would be the same for residential and commercial properties. He added that the reimbursement rate would coincide with residential rate changes in the future.

He recommended adoption of the staff proposal.

Commissioner Anderson, seconded by Commissioner Masterson, moved approval of the staff recommendation on net metering rates. The motion passed unanimously.

GENERAL SERVICE DEPOSIT POLICY

Mark Freeman, Connect/Disconnect & Cash Accounting Supervisor, and Dawne Howard, Customer Services Supervisor, provided an update on the General Service Deposit Policy. He said staff had received direction to change the wording of the policy to make its intent clear and to change the time from five years to three years. He said all of the directed changes had been implemented. He noted that Vice President Farmer had offered some suggested changes to the staff recommendation.

Commissioner Anderson, seconded by Commissioner Masterson, moved to approve the staff recommendation with the suggested changes.

ELECTRIC CAPITAL FUNDING

The item was addressed during the Work Session held previous to the meeting.

ITEMS PULLED FROM CONSENT CALENDAR

There were no items pulled from the consent calendar.

The meeting adjourned at 7:59 p.m.

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Assistant Secretary President