Orcas Power & Light Cooperative - OPALCO - BOARD OF ......2013/03/12 · Orcas Power & Light Cooperative Board of Directors Regular Board Meeting Lopez Fire Hall, Fisherman Bay Road,

BOARD OF DIRECTORS REGULAR BOARD MEETING 8:15 – 11:30 a.m.

Followed by BOARD WORK SESSION 12:30 – 3:00 p.m.

Lopez Fire Hall Fisherman Bay Road, Lopez Island

Thursday, March 28, 2013

TRAVEL

Via Island Air

378-2376 / 378-8129 (cell) To: Leave FH 7:45 a.m. Arrive Lopez 8:00 a.m.

From:

Leave Lopez 3:30 p.m. Arrive FH 3:45 p.m.

Via Ferry: To: Leave Orcas 6:45 a.m.

Leave Shaw 7:00 a.m. Arrive Lopez 7:30 a.m. Leave FH 6:10 / 8:30 a.m. Arrive Lopez 6:50 a.m. / 9:50 a.m.

From: Leave Lopez 3:50 p.m. Arrive Shaw 4:10 p.m. Arrive Orcas 4:30 p.m. Arrive FH 5:10 p.m.

Orcas Power & Light Cooperative Board of Directors

Regular Board Meeting Lopez Fire Hall, Fisherman Bay Road, Lopez Island 376-3500

March 28, 2013 8:15 a.m.

PAGES

WELCOME GUESTS/MEMBERS

CONSENT AGENDA

o Approval of February Minutes

o Admission of New Members

ACTION ITEMS o 2012 Annual Meeting Minutes o Capital Credits o Policy 19 Family Medical Leave Act o Tariffs Revisions o NWPPA Voting Delegate Designation

DISCUSSION ITEMS o EE Committee—John Bogert

REPORTS o RUS Form 7 o Cash Recap o Total Fund Balances Chart o Outages o Safety o General Manager

INFORMATION ITEMS

o New Services

o Historical MORE Revenue

o Member Billing Revenue History

o BPA Consumption Summary

o Graphs: Peak Load, Total Meter Points, Equity as a % of Total Capitalization, kWh Sold

ADJOURNMENT

MINUTES OF THE BOARD OF DIRECTORS MEETING ORCAS POWER & LIGHT COOPERATIVE

Thursday, February 21, 2013 Vice-President Jim Lett called the meeting to order at 8:35 a.m. at the Eastsound OPALCO office. Directors Winnie Adams, John Bogert, Vince Dauciunas, Jim Lett, George Mulligan and Bob Myhr were present. Chris Thomerson was absent. Also present were Assistant General Manager Foster Hildreth; Manager of Engineering & Operations Russell Guerry; Assistant Manager of Finance and Member Services Nancy Loomis and Executive Assistant Bev Madan, serving as recording secretary. Members/Guests Orcas members Jay Kimball, Joy Hughes and John Fleischer were in attendance. John Fleischer, retired CenturyLink employee, had questions and comments about the Broadband Initiative. Kimball, Hughes and Fleischer left the meeting. Consent Agenda Bogert moved to accept the Consent Agenda, which included the January 17, 2013 Board meeting minutes as corrected and new members listed below. The motion was seconded and carried by voice vote. The minutes were corrected on page 2 to reflect that Myhr made the motion to accept the licensed spectrum.

LOPEZ 1. DEUBNER, ALAN 2. LOPEZ SOLID WASTE DISPOSAL

DISTRICT 3. MENG, HEATHER 4. RAMIREZ-CERVANTES, VERONICA G 5. SMITH, HEATHER 6. TAYLOR BLANKENSHIP, SAMANTHA

ORCAS

7. AMOS, CARMEN 8. ANDREEV, DAVID 9. ARNOTT, DEBORAH 10. COURTS, MICHELLE 11. EDWARDS, KYLEIGH 12. HOGSTONE PIZZA LLC 13. HOLBERT, CHRIS 14. HOME STREET BANK 15. HUNT, KURT 16. KAUSHIK, SANDEEP & GOODWIN,

ELIZABETH 17. PENNELL, DILLONGRAN, MELISSA 18. RORABAUGH, JUSTIN & PETERSEN,

SAMANTHA 19. SCALES, KEITH A 20. SHARP, PENNY 21. SWINDELLS, SUSAN 22. WOODING, SEADRICK

SAN JUAN

23. ALLEN, DAVID E 24. BEALL, ALAN C 25. BERUBE, JESSE

26. BLAZING TREE EQUESTRIAN CENTER LLC27. BROWN, TERRY & MCLAIN, RAYMOND 28. CALOHAN, MELISSA A 29. CHARLES TOMAS 1994 TRUST30. DE YOUNG, JOHN & DENNIS 31. ELLIOTT, HAILEY 32. FATE, DARREN33. FINNEY, RUTH34. HENDERSON, MICHAEL 35. HINKLE, ELVERA 36. KILEFNER, DAVID & JONI 37. LUXEL 200738. MARKS, GRACE C 39. MCDONALD, VIRGINIA K 40. MITCHELL BAY PROPERTIES LLC41. MR FRIDAY HARBOR PROPERTIES LLC42. NORMAN, RUSS & SMITH, HEATHER 43. ORTON, LAURIE 44. PLOCHER, ESTHER 45. POWELL, YVONNE 46. RICE, JAMIE47. SALISH SEA SPECIALTIES 48. SCOTT, CHUCK 49. SIERMAN, FERNANDO 50. SMITH, NORMAN J & KATHLEEN M 51. VEACH, LESLEY & IAN 52. WEBB PROPERTY, LLC 53. WHITMILL, DALE 54. ZECHMAN, RICHARD F & SANDY K

SHAW

55. WISEN, DIANA

Capital Credits Mulligan moved to approve a total capital credits payment of $23,628.03 to the estates of the following deceased members; motion was seconded and carried by voice vote. Annette P. Bee ............................................... $1,730.51 Ernest D. Handy ................................................ $969.97 Robert H. Holcomb ........................................ $1,134.52 Henry S. Hopkins .............................................. $292.97 Louis S Myers. .................................................. $842.06 Bonnie Peakes ............................................... $1,549.24 Jeanne M. Petersen .......................................... $517.04 Robert B. Rice ................................................... $296.06

Margaret Ann Scott ........................................... $369.36 Michael Sky ....................................................... $591.58 James W. Smith ............................................. $9,261.12 Joseph and Phyllis Strohsahl ............................ $348.15 Charles Tomas ............................................... $5,085.06 Thomas Westhoven .......................................... $471.46

Ronald W. Workman ........................................ $168.93

OPALCO Board of Directors Page 2 of 3 February 2013 Minutes

Member Service Policy 16 Information Requests The draft of this policy was presented at the January Board meeting after review and editing by the attorney. Adams moved to approve MS Policy 16 as presented; the motion was seconded and carried by voice vote. RUS Form 219s Adams moved to approve the submittal of RUS Form 219s for June and December 2012 for $165,317.93. Motion was seconded and carried by voice vote. Island Network Moratorium After discussion, Mulligan moved to place the existing Island Network (IN) policies and tariffs in abeyance with the understanding that these policies and tariffs will be used as a guideline for existing customers and to place a moratorium on new Island Network internet services under the interim rates and urban expansion until a decision has been finalized on the Broadband Initiative. The motion was seconded and carried by voice vote with Bogert the only dissenting vote. Resolution 1-2013 Amendment of the Retirement Security Plan An e-vote was held on February 12 to approve Resolution 1-2013 which allows an amendment to OPALCO’s Retirement Security Plan for a special early retirement of a staff member. Six votes were received via email, allowing passage of the Resolution. The Board also approved conversion of the employee’s sick leave to cash. Policy 19 Family Medical Leave Act Draft changes were made to the current policy to bring the policy current with Washington State laws and to revise the approved leave period from a calendar year to a “rolling twelve-month period”. OPALCO’s attorney provided the updates. The final form will be presented for approval at the March Board meeting. Tariff Rate Increases Draft copies of Residential Service, Commercial Service, Unmetered Service, Pump Service, Line Retention, Private Outdoor Lighting and Time of Use tariffs were presented showing the 3% increase as approved in the 2013 Budget. The tariffs will be presented at the March Board meeting for final approval of the increase. EE Committee Report Bogert provided a handout outlining a plan developed by the EE Committee to create a 501(c)(3) organization to manage the implementation of a multi-year, multi-million dollar program to fulfill the goals of the “50/20 by 20 Initiative” (attached). The Initiative was discussed at a Board work session in January. The Committee is requesting $10,000 from OPALCO to help fund its creation. Dauciunas moved that the Board supports the formation of a 501(c)(3) organization that will promote energy efficiency and work within an existing organization. The motion was seconded and carried by voice vote. After discussion the consensus of the Board was to fund the $10,000 out of the $50,000 discretionary fund facilitated by the General Manager. 11:00 am The Board adjourned to Executive Session 12:40 pm Regular Meeting reconvened. March Meeting Change The March meeting will be held March 28 at the Galley Restaurant on Lopez Island. It was postponed one week to allow all directors to attend. Broadband Initiative Citizens for Safe Technology, Lopez Island Chapter presented a petition to the Board of Directors to amend OPALCO Bylaw Article VIII, Section 4 at the May 4 Annual Meeting. Attorney Brad Cattle presented his legal opinion that their proposed amendment would be in conflict of the Articles of Incorporation, making the amendment void and unenforceable. Communication Specialist Suzanne Olson will create a letter in response to the petition. 2012 Year-End Financials Hildreth presented and reviewed the 2012 Year-End Financial report. The year ended with a TIER (Times Interest Earned Ratio) of 2.07 and an equity percentage of total capitalization of 72.1%. 1:40 p.m. The Board adjourned to Executive Session

OPALCO Board of Directors Page 3 of 3 February 2013 Minutes

2:30 p.m. Regular meeting reconvened. Adjournment The meeting adjourned at 2:30 p.m. ___________________________________ ______________________________ Jim Lett, Vice-President John Bogert, Secretary-Treasurer

NEW MEMBERS FEBRUARY 2013 LOPEZ

1. BLEIFUSS, COLLEEN L 2. BRAUN, DANUTA 3. BRAUN, LISA & SULLIVAN, KEVIN 4. COCHRAN, TODD 5. CRAWFORD, CRYSTAL J 6. KUHLMAN, JOHN 7. TATE, JACQUES B & MEGHAN S

ORCAS

8. BANNERMAN, LINDA J 9. CAPUTO, JAMES 10. COFFIN, NICOLAS & DUCKWORTH, RACHAEL 11. DONATUTO, JAMIE & JOHNS, JOSHUA 12. ELASIGUE, EVA 13. MIJITAS, LLC. 14. PAERELS, ERIC & ST AUBIN, LAURIE 15. REMINGTON, ROBERTA A 16. SANTOS, GUSTAVO 17. SHMUELI, AVINOAM & REBACK, ANDREA 18. TRULIN, KRISTINE 19. WILSON, BRIAN & KIMBERLY 20. WORLDMARK AT DEERHARBOR

SAN JUAN

21. ATKINS, ROBIN 22. BRYNER, SUZANNE 23. CAMPISANO, NANCY L 24. CROSSEN, MILES 25. DOLL, LINDSEY M 26. FARRER, JESSICA & MARY JO 27. FOSTER, CHARLES 28. HOLBROOK, JON & THERESA K 29. KEVIN L HECKMAN TRUSTEE & JEFFREY A HECKMAN TRUSTEE 30. MAYNARD, GREGORY B & MCMAHON, DAPHNE 31. MC KEE, TYLER 32. ROSS, CHRISTOPHER 33. RUSSELL THORP FAMILY TRUST 34. TAYLOR, MEGAN 35. VON HOFFMANN, GERARD & MARY

SHAW

36. HOPKINS, CHRISTINE

MINUTES OF THE ANNUAL MEETING OF

ORCAS POWER & LIGHT COOPERATIVE

The 75th Annual Meeting of the members of Orcas Power and Light Cooperative was called to order by President Chris Thomerson at 9:50 a.m. May 5, 2012 aboard the M/V Elwha. A quorum was announced, with 334 members in attendance. There were a total of 505 attendees, believed to be a record. Thomerson welcomed members and guests, and introduced the current Board of Directors: District 1 Vince Dauciunas and George Mulligan; District 2 Winnie Adams and Thomerson; District 3 Bob Myhr and James Lett; District 4 John Bogert. Guests welcomed were Melanie Jackson, Transmission Account Executive from Bonneville Power Administration (BPA); Frank and Jan Loudin, artist who created the 75th anniversary image; Cat Buhayar and Hannah Ferber of Synotac, web design firm; and past directors Ed Marble, George Koch, and Frank Bret. Members 75 years and older were acknowledged. Thomerson acknowledged the passing of George Goff, Line Superintendent for the San Juan District and OPALCO employee for 34 years; Roger Crosby, Board of Directors representing District 2, 22 years of service; and Jim Cahail, Assistant General Manager, San Juan Island, 30 years of service. Thomerson introduced Chris Knapp, from the law firm of Anderson Hunter, serving as Parliamentarian, and Jerry Noesen as Tally Committee Chair. A motion was made and seconded to waive the reading of the Official Notice of the Meeting; motion carried. A motion was then made and seconded to waive the reading of the Minutes of the 2011 Annual Meeting; motion carried. Thomerson introduced the Board candidates from District 2 (Orcas, Armitage, Big Double, Blakely, Fawn, Little Double and Obstruction Islands): Winnie Adams (incumbent); Lance Evans and Chris Thomerson (incumbent). After giving members time to mark their ballots, Thomerson declared balloting closed. Thomerson then spoke of the founding individuals in the community who envisioned bringing electricity to the area. For 75 years, OPALCO has met the prime directive for which it was created—to provide the electrical services that are now essential to our lives. For the past year OPALCO has continued strong and stable, continuing to work on making the system more reliable, reducing the energy lost in the system, supporting local renewable energy generation, and encouraging energy efficiency measures that save the members money. Thomerson stated that internet and other data communication services, collectively called Broadband, are rapidly becoming just as essential as electricity. As OPALCO expands its data network covering over 90% of the county to meet our smart grid initiatives, it is a natural fit for us to consider options to provide these needed services to members countywide. The Broadband project echoes the community spirit that first created this Cooperative 75 years ago. A show of hands revealed that many members had received a Home Snapshot Energy Assessment during the past year. Those who hadn’t yet were encouraged to call OPALCO and schedule an assessment to learn how to conserve energy. In closing, Thomerson stated that: electricity is the clean, low cost, energy of choice; using it or switching to it makes good sense; using it efficiently and not wasting it makes super good sense.

General Manager Randy Cornelius thanked everyone for attending. He reported that the financial statements fairly represent the financial position OPALCO as of December 31, 2011, according to the auditor’s unqualified audit. The year began with a $19 million budget and total expenditures were $18.3 million. Operating and non-operating margins totaled $3.1 million and were assigned back to the membership in the form of capital credits.

Cornelius reviewed the 3% rate increase that occurred in March 2012. The increase was made to offset a 9% wholesale power rate increase from BPA. The new BPA Power Sales Agreement had

OPALCO 2012 Annual Meeting Minutes Page 2 of 2

new billing determinants and the majority of the power bill is based on a fixed cost of operating the federal system. Our demand charges are expected to increase exponentially over the next decade.

Cornelius informed the members that 4 miles of overhead lines were converted to underground during 2011; over 5.4 miles of old URD cables were replaced and about a mile of conduit and cables were installed to take advantage of local opportunities to share trenches with our members and other utilities. In addition, 127 new connections were added during 2011.

Through OPALCO’s Energy Efficiency/Conservation Program, 6.2 million kWhs were saved and $965,252 paid out in rebates to our members. That equals taking 516 average-use homes off the grid! Members were again encouraged to have a Home Snapshot Energy Assessment and to develop their own energy savings plan.

Cornelius spoke of the Member Owned Renewable Energy (MORE) and the Project PAL programs, both member-funded. MORE funds support locally owned renewable resources by paying incentives to the owners and Project PAL funds support members having difficulty paying their electric bill. Currently 3,000 members participate in the Project PAL program with “round-up” contributions totaling $20,000 annually.

Thomerson announced the six members whose absentee ballots were drawn to win a $75 credit on their utility bill: Ivaloe Meyer; Diane Steed; Ronald Woodard; Miles Erickson; Thomas Reynolds; Russell Smith.

Tally Committee Chairman Jerry Noesen announced the following voting results for District 2 candidates:

Winnie Adams 1455Lance Evans 733Chris Thomerson 1559

Elected to represent District 2 for the next three years are Winnie Adams and Chris Thomerson. A total of 1,913 ballots were cast. Cornelius entertained questions from the floor. There being no further business to be brought before the meeting, Thomerson declared the meeting adjourned at 10:45 a.m. Door prizes were then given out.

_____________________________________ _________________________________ Chris Thomerson, President John Bogert, Secretary-Treasurer

Capital Credits March 2013

Application has been received for payment of capital credits to the estates of the following deceased members:

Helen S. Bittner ................................................. $1,999.10

Chris and Loretta Froling ...................................... $616.75

Betty F. Landberg .............................................. $6,440.67

Total ................................................................. $9,056.52

MEMORANDUM February 12, 2013 TO: Board of Directors FROM: Randy J. Cornelius RE: Policy 19 Family Medical Leave Act This is the first reading of draft changes to Policy 19. These changes are made in order to bring the policy current with Washington State laws and to revise the approved period from a calendar year to a “rolling twelve-month period”. Megan Masonholder, attorney at Anderson Hunter has provided necessary updates to our current policy. Because there were so many revisions, the old policy was not marked up but is provided for comparison. No action is necessary at this time.

ORCAS POWER AND LIGHT COOPERATIVE POLICY 19

FAMILY and MEDICAL LEAVE OF ABSENCE (FMLA) PURPOSE: The purpose of this policy is to establish guidelines for authorizing leave in compliance with the Family and Medical Leave Act and Washington Family Leave Act. 19.1 ELIGIBILITY An employee is eligible to take leave under this policy if, at the time requested:

19.1.1 The employee has been employed with OPALCO for a minimum of twelve (12) months, and

19.1.2 The employee has a minimum of 1,250 hours during the twelve (12)-month period immediately preceding the commencement of the leave, and

19.1.3 The employee works at an OPALCO work site which has fifty (50) or more employees or is within seventy-five (75) miles of work sites that together have a total of fifty (50) or more employees.

19.2 ENTITLEMENTS:

19.2.1 Eligible employees are entitled to take leave for up to 12 weeks in a 12-month period for any of the following reasons:

19.2.1.1 For a serious health condition that makes the employee unable to perform one or more of the essential functions of his or her job. A “serious health condition” includes an illness, injury, impairment, or physical or mental condition that either involves an overnight stay in a medical care facility, or continuing treatment by a health care provider for a condition that either prevents the employee from performing the functions of the employee’s job, or prevents the qualified family member from participating in school or other daily activities. Whether a condition qualifies as a “serious health condition” must be determined on a case-by-case basis.

19.2.1.2 The birth of a child and to care for the employee’s newborn child and for the placement with the employee of a child for adoption or foster care provided the entitlement to such leave expires at the end of the 12-month period beginning on the date of such birth or placement.

19.2.1.3 To care for the employee’s parent, spouse, or child (under age 18 or over the age of 18 and incapable of self-care due to disability), with a serious health condition

19.2.1.4 Because of any “qualifying exigency” arising out of the fact that the

employee’s spouse, son, daughter, or parent is on active duty or has been notified of an impending call or order to active duty in the

OPALCO Policy 19 - Family Medical Leave Act Page 2 of 7

Armed Forces in support of a military contingency operation. A “qualifying exigency” may include attending certain military events, arranging for alternative childcare, addressing certain financial and legal arrangements, attending certain counseling sessions and attending post-deployment reintegration briefings.

19.2.2 Military Family Leave Entitlement (Military Care Giver Leave)

An eligible employee who is the spouse, son, daughter, parent or next of kin of a “covered service member” is entitled to take up to 26 weeks of leave during a single 12-month period to care for the service member with a “serious injury or illness”.

A “covered service member” is a member of the Armed forces or the National guard or Reserves who is undergoing medical treatment, recuperation, or therapy, is otherwise in outpatient status, or is on the temporary disability retired list, for a serious injury or illness incurred in the line of duty while on active duty in the Armed Forces. Former members of the Armed Forces or National Guard or Reserves who are on a permanent disability retired list are not “covered service members”.

19.2.3 Pregnancy/Childbirth Disability Leave For sickness or temporary disability due to pregnancy or childbirth, each

employee is entitled to leave under Washington law for the period of actual sickness or disability. In addition, up to twelve (12) weeks of FMLA/WFLA leave may be available after the birth of the child.

19.2.4 Intermittent Leave and Reduced Leave Schedules Employees may be entitled to take FMLA leave intermittently or on a

reduced leave schedule when medically necessary (excludes voluntary procedures or treatment) due to a serious health condition of the employee or covered family member or the serious injury or illness of a covered service member.

19.2.5 Protection of Group Health Insurance Benefits During FMLA leave, eligible employees are entitled to receive group health

plan coverage on the same terms and conditions as if they had continued to work.

19.2.6 Restoration of Employment and Benefits At the end of FMLA leave employees generally have a right to return to the

same or equivalent positions with equivalent pay, benefits and other employment terms. One exception includes a situation where job restoration of a “key employee” will cause OPALCO substantial and grievous economic injury. A key employee will be notified of his/her status and potential for reinstatement. In addition, use of FMLA leave will not result in the loss of any employment benefit that accrued prior to the start of an employee’s FMLA leave. An employee has no greater right to benefits or conditions of employment than if the employee had not taken leave.


19.2.7 Notice of Eligibility; Notice of Rights and Responsibility; Designation of FMLA Leave

When an employee requests leave or OPALCO becomes aware that an employee’s leave may be for an FMLA qualifying reason, the employee will be provided within five (5) business days, absent extenuating circumstances, an eligibility notice and rights and responsibilities notice. This notice informs the employee of his/her eligibility for FMLA leave.

When OPALCO has enough information to determine whether the leave is

being taken for FMLA-qualifying reason, OPALCO will, within five (5) business days, absent extenuating circumstances, provide employees with a written designation notice that describes: (1) the employee’s rights and responsibilities in connection with such leave; (2) whether the leave is FMLA-qualifying or non-qualifying and if not FMLA-qualifying, the reasons why; and (3) the amount of leave, when known, that will be counted against the employee’s leave entitlement.

OPALCO may retroactively designate leave as FMLA leave either by mutual

agreement with the employee or if it does not cause harm or injury to the employee.

19.3 EMPLOYEE FMLA LEAVE OBLIGATIONS

19.3.1 Written Request Employees who wish to take FMLA leave must submit a written request to

their manager or Human Resources of their need for FMLA leave30 days in advance of the need to take the leave when the need for leave is foreseeable. When 30 days’ notice is not possible, or the approximate timing of the need for leave is not foreseeable, employees must provide the Cooperative notice of the need for leave as soon as practicable under the facts and circumstances of the particular case. Employees who fail to give 30 days’ notice for foreseeable leave without a reasonable excuse for the delay, or otherwise fail to satisfy FMLA notice obligations may have FMLA delayed or denied.

Request forms can be obtained from Human Resources.

Even if the employee does not request that a leave is designated as FMLA

leave, OPALCO reserves the right to designate a leave as FMLA leave if the employee meets the eligibility requirements. OPALCO will provide the reason(s) in writing why the leave meets the criteria of the FMLA.

Calling in “sick” without providing the reasons for the needed leave in the

format described above, will not be considered sufficient notice for FMLA leave under this policy. Employees must respond to OPALCO’s questions to determine if absences are potentially FMLA qualifying. If employees fail to explain the reasons for FMLA leave, the leave may be denied.

19.3.2 Cooperate in the Scheduling of Planned Medical Treatment/Intermittent or

Reduced Leave Schedules


Employees must make a reasonable effort to schedule their planned medical

treatment and consult with their managers so as not to unduly disrupt OPALCO’s operations, subject to approval of the employee’s health care provider.

When employees take intermittent or reduced work schedule leave,

OPALCO may temporarily transfer employees to alternative positions with equivalent pay and benefits for which the employees are qualified and which better accommodate recurring periods of leave. When employees seek intermittent leave or a reduced leave schedule for reasons unrelated to the planning of medical treatment, upon request, employees must advise OPALCO of the reason why such leave is medically necessary.

The intermittent or reduced schedule leave will cover only the designated

medical condition. The employee must report all FMLA absences to his/her manager/supervisor. Other absences, which are not covered under the approved FMLA condition, will be tracked by the manager/supervisor as unscheduled absences subject to corrective action.

19.3.3 Submit Required Certifications Supporting Need for FMLA

19.3.3.1 Written certification will be required to support the request for

medical leave. Medical certification of the need for a leave to care for a newborn child is not required. The employee has the sole responsibility to provide OPALCO with a timely, complete and sufficient certification. The certification must be returned within 15 calendar days after it is provided to the employee, unless it is not practicable to do so despite an employee’s diligent, good faith efforts. Certifications must be complete and provide sufficient information to allow OPALCO to make a decision regarding the request for leave. If the certification is either incomplete or insufficient, OPALCO will inform the employee in writing with a specific request for information to cure the deficiencies. The employee has seven (7) calendar days to cure the incomplete or insufficient certification.

If a certification requires proof of authenticity or clarification in

order for OPALCO to make a decision, and the employee has failed to cure such deficiency, a representative of the Human Resources Department will be authorized to contact the employee’s health care provider directly to authenticate and/or clarify the information on the certification. This contact is limited to: (1) Requesting verification that the information was completed/authorized by the health care provider and (2)


Requesting clarification to understand the meaning of the response. If authentication/clarification of a certification is needed, the employee will be asked to execute a HIPPA consent form so that OPALCO may have contact with the employee’s health care provider. Refusal to provide an executed consent form may result in denial of the FMLA request.

While waiting for return of the certification, leave will generally be

approved on a “conditional” basis pending receipt. Failure to return a timely, complete and sufficient certification may result in denial of the employee’s leave request.

A new initial medical certification will be required on an annual

basis for serious medical conditions lasting beyond a single leave year.

If OPALCO has reason to doubt the validity of the certification, a

second opinion, at OPALCO’s expense, may be requested from a provider not affiliated with OPALCO. In some cases, a third opinion may be sought to resolve disputes and will be considered final and binding.

19.3.3.2 Medical Recertification OPALCO will notify employees if recertification is required and will give employees at least 15 calendar days to provide medical recertification. OPALCO may request a recertification of a serious health condition, but generally no more often than 30 days, unless: (1) a request for an extension of employee’s leave occurs; (2) circumstances described by the previous certification have changed significantly; (3) OPALCO receives information that casts doubt on the stated reason for the absence or the continuing validity of the certification. If the number of absences exceeds the amount projected by the health care provider, a recertification may be requested including Human Resources providing the employee’s health care provider with a record of the employee’s absence pattern and request the health care provider verify the employee’s need for leave is consistent with such a pattern of absences.

19.3.3.3 Submit Certifications Supporting Need for Military Family Leave

The first time employees seek leave due to qualifying exigencies arising out of the active duty or call to active duty status of a covered military member, OPALCO requires employees to provide: (1) a copy of the covered military member’s active duty orders or other documentation issued by the military indicating the covered military member is on active duty or called to active duty status, and the dates of the covered military member’s active duty service; and


(2) a certification from the employee setting forth information concerning the nature of the qualifying exigency for which leave is requested.

19.3.3.4 Submit Fitness for Duty Certifications for Return to Work

Employees must notify the Human Resources Department two weeks prior to the scheduled end of the leave to confirm details necessary for a return to work. Failure to provide OPALCO with this notice of the employees’ intent to return to work may result in denial of restoration to the same or equivalent position.

A Fitness for Duty Certification must be received by the Human Resources Department on or before the day the employee returns to work. A Fitness for Duty Certification must be submitted by the employee’s health care provider and cover the condition that caused the need for FMLA leave. It may be: (1) a simple statement that the employee is released to return to work with/without restrictions; or (2) the health care provider attests that the employee can perform all the essential duties of his/her position. OPALCO may provide the employee with a list of essential duties of the position and require that the Fitness for Duty Certification address the ability to perform those essential duties. A Fitness for Duty Certification may be required up to once every 30 days during an intermittent or reduce-work schedule if reasonable safety concerns exist based on the serious health condition for which the employee has requested leave.

If an employee does not contact Human Resources by the specified date, or does not return to work as scheduled, it shall be assumed that the employee has voluntarily resigned, provided the employee does not qualify for additional leave available under any other OPALCO policy or under Federal, State or local law.

19.3.4 PAID LEAVE IS EXHAUSTED BEFORE UNPAID FMLA LEAVE BEGINS

FMLA leave will be unpaid; however, employees must exhaust any accrued paid time off (vacation, sick, holiday) hours before the unpaid portion of the leave begins. During the unpaid portion of the leave, paid time off will not accrue.

19.4 COMPUTING FMLA OPALCO tracks FMLA in one (1) hour increments.


19.4.1 Rolling 12 month

OPALCO measures the twelve-month period as a “rolling” 12-month period measured backward from the date the employee uses any leave under this policy. To compute the FMLA/WFLA balance: Each time leave is taken, calculate the amount of leave used during the 12-month period prior to the commencement of leave, then, subtract that time from the 12-workweek entitlement to determine the remaining balance available to the employee to take at that time.

19.4.2 Spouses Both Employed By OPALCO If a husband and wife are both employees of OPALCO and entitled to FMLA

leave, leave will be limited to a combined aggregate of 12 weeks (or 26 weeks for service member family leave) for both employees in any 12 month period, calculated using the “rolling 12 month” method.

19.4.3 FMLA Leave Concurrent with Other OPALCO Leave Policies All leave allowed under OPALCO leave policies run concurrently where

allowed by law.

19.5 QUESTIONS AND/OR COMPLAINTS ABOUT FMLA LEAVE Employees with questions regarding this FMLA policy should contact the Human Resources Department. If employees believe their FMLA rights have been violated, they should contact the Human Resources Department immediately. OPALCO will investigate any FMLA complaints and take prompt and appropriate remedial action to address and/or remedy any FMLA violation.

19.7 CONFIDENTIALITY The FMLA request form and the certification from the health care provider will be kept in Human Resources in a separate file from the employee’s personnel file.

19.8 RESPONSIBILITY AND CONSEQUENCES The General Manager shall ensure that this policy is implemented. It is the responsibility of all employees to comply with this policy and report concerns in accordance with this policy. The General Manager shall review this policy periodically.

__________________________________________ Effective Date: March 28, 2013 J Foster Hildreth, Acting General Manager

MEMORANDUM March 18, 2013 TO: Board of Directors FROM: Randy J. Cornelius RE: General 3% Tariff Rate Increases Attached are revised tariffs for Residential Service (R-13); Commercial Service (CS-13); Unmetered Service (NM-13); Pump Service (P-13); Line Retention (LR-13); Private Outdoor Lighting (POL-13) and Time of Use (TOU-13). The approved 2013 budget included a 3% across-the-board increase in order to maintain our TIER pursuant to the Board Strategic Directives. The draft revisions were presented to the Board at the February meeting. Staff requests a motion from the Board to approve the tariffs as presented to take effect with the March billing cycle.

AVAILABILITY Available to all small farm and home members, subject to the General Provisions hereunder. TYPE OF SERVICE Single-phase, 60 cycles, at available secondary voltage, equipment subject to automatic load management controls. APPLICATION Service for home and farm uses, such as cooking, lighting, heating, private docks not used for commercial purposes, etc. Residences qualifying as “cottage industries” by San Juan County shall be served under this tariff. BASIC CHARGE 27.00 ENERGY CHARGE First 5,000 kWh @ $0.0804 per kWh

Over 5,000 kWh @ $0.0949 per kWh DEMAND CHARGE None MINIMUM MONTHLY CHARGE The minimum monthly charge, under the above rate, shall be $27.00 per month or prorated if service is provided for less than a full month. WHOLESALE POWER COST ADJUSTMENT A surcharge or credit may be applied to each billing for service under this tariff to reflect increases or decreases in the wholesale cost of power based on the rates charged by the Bonneville Power Administration. GENERAL PROVISIONS 1. Member agrees to allow the cooperative, at its discretion, to install automatic load

management controls.

2. The rated capacity of any motor served under this tariff shall be as follows:

- Motors up to 2 HP can operate at 115 volts.

- Motors larger than 2 HP shall operate at 230 volts and are subject to requirements in Member Service Policy 3-Technical Provisions.

3. No single resistive loads (examples: ovens, heaters, kilns) over 15 kW shall come on line simultaneously.

4. Non-resistive loads such as arc welders, fluorescent or mercury lamps, and induction heating furnaces are causes of harmonic distortion and may require corrective measures.

5. See Member Service Policy 3 Technical Provisions for additional requirements.

ORCAS POWER AND LIGHT COOPERATIVE TARIFF R- 13

RESIDENTIAL SERVICE FIFTEENTH REVISION – REPLACING FOURTEENTH REVISION

OPALCO Tariff R-13 Residential Service Page 2 of 2 6. Bed and breakfast establishments will be served under this rate if the owner or manager lives

in a building served by this meter.

__________________________________________ Effective Date: March 2013 Billing Period J Foster Hildreth, Acting General Manager

Gm 1234gm

AVAILABILITY Available to all non-residential members, subject to the General Provisions hereunder. TYPE OF SERVICE Single-phase or three phase, 60 cycles, at available secondary voltage, equipment subject to automatic load management controls. APPLICATION General Service for heating, lighting, etc., for marinas for commercial use, and non-residential members. BASIC CHARGE $38.10 ENERGY CHARGE First 5,000 kWh @ $0.0817 per kWh

Over 5,000 kWh @ $0.0737 per kWh DEMAND CHARGE First 20 kW @ $0.00 per kW

Over 20 kW @ $2.97 per kW MINIMUM MONTHLY CHARGE The minimum monthly charge, under the above rate, shall be $38.10 per month or prorated if service is provided for less than a full month. DETERMINATION OF BILLING DEMAND The billing demand shall be the maximum kilowatt demand established by the member for any period of fifteen (15) consecutive minutes during the month for which the bill is rendered as indicated or recorded by a demand meter and adjusted for power factor as provided below. POWER FACTOR ADJUSTMENT Demand charges may be adjusted to correct for average power factors lower than 95%. Such adjustments will be made by increasing the measured demand 1% for each 1% by which the average power factor is less than 95% lagging. WHOLESALE POWER COST ADJUSTMENT A surcharge or credit may be applied to each billing for service under this tariff to reflect increases or decreases in the wholesale cost of power based on the rates charged by the Bonneville Power Administration.

GENERAL PROVISIONS 1. Member agrees to allow the cooperative, at its discretion, to install automatic load

management controls.

ORCAS POWER AND LIGHT COOPERATIVE TARIFF CS –13

COMMERCIAL SERVICE

SIXTEENTH REVISION – REPLACING FIFTEENTH REVISION

Orcas Power & Light Cooperative Tariff CS 13– Commercial Service Page 2 of 2

2. Except for bed and breakfast establishments, service under this rate shall not be provided to

locations with occupied residential facilities unless such facilities are insignificant with respect to the business operations at the location.

3. Bed and breakfast establishments will be served under this rate tariff if the owner or manager does not live in a building served by this meter.



- Motors larger than 2 HP (single phase) are subject to requirements in Member Service Policy 3-Technical Provisions.

5. No single resistive 3-phase loads (examples: ovens, heaters, kilns) of over 45kW shall come on line simultaneously.


7. See Member Service Policy 3-Technical Provisions for additional requirements.

___________________________________ Effective Date March 2013 Billing Period J Foster Hildreth, Acting General Manager

AVAILABILITY Available to small fixed loads such as cable television amplifiers. TYPE OF SERVICE Single-phase, 60 cycles, 120 volts, 20 amps or less. APPLICATION For electrical loads that are unchanging during the day and operate at 120 volts with 20 amps or less. BASIC CHARGE: $31.40 ENERGY CHARGE: All kWh @ $0.0726 MINIMUM MONTHLY CHARGE The minimum monthly charge, under the above rate, shall be $31.40 per month or prorated if service is provided for less than a full month. WHOLESALE POWER COST ADJUSTMENT A surcharge or credit may be applied to each billing for service under this tariff to reflect increases or decreases in the wholesale cost of power or transmission charged by the Bonneville Power Administration. GENERAL PROVISIONS 1. The member must install a disconnect switch that can be locked by OPALCO.

2. The member must provide suitable fusing to protect their equipment.

3. Kilowatt hour usage shall be calculated based on the device drawing rated current (as determined by the manufacturer’s recommended fuse size) at 120 volts at unity power factor for 720 hours per month.

ORCAS POWER AND LIGHT COOPERATIVE TARIFF NM-13

UNMETERED SERVICE EIGHTH REVISION – REPLACING SEVENTH REVISION

________________________________________ Effective Date: March 2013 Billing Period J Foster Hildreth, Acting General Manager

AVAILABILITY Available to all members, subject to the General Provisions hereunder. TYPE OF SERVICE Single-phase, 60 cycles, at available secondary voltage, equipment subject to automatic load management controls. APPLICATION Service for pumping water for domestic use and/or irrigation. BASIC CHARGE 25.50 ENERGY CHARGE First 370 kWh @ $0.0923 per kWh Next 4,630 kWh @ $0.0709 per kWh Over 5,000 kWh @ $0.0849 per kWh DEMAND CHARGE First 20 kW @ $0.00 per kW Over 20 kW @ $2.97 per kW MINIMUM MONTHLY CHARGE The minimum monthly charge, under the above rate, shall be $23.25 25.50 per month or prorated if service is provided for less than a full month. WHOLESALE POWER COST ADJUSTMENT A surcharge or credit may be applied to each billing for service under this tariff to reflect increases or decreases in the wholesale cost of power based on the rates charged by the Bonneville Power Administration. GENERAL PROVISIONS 1. All pumps served under this tariff shall be metered separately.




3. See Member Service Policy 3-Technical Provisions for additional requirements.

___________________________________ Effective Date: March 2013 Billing Period J Foster Hildreth, Acting General Manager

ORCAS POWER AND LIGHT COOPERATIVE TARIFF P-13

PUMP SERVICE


AVAILABILITY Available for individual residential, marina, and general service accounts where the primary and transformer only serve one member and the removal of the equipment will not affect the service to other members, and/or no service has been taken for a period of twelve (12) months. TYPE OF SERVICE Single-phase, 7200 GrdY primary or 120/240 secondary voltage. APPLICATION Payment of the line retention rate will ensure that the facilities remain in place for future use. BASIC CHARGE: $14.70 ENERGY CHARGE No energy may be used under this rate. MINIMUM MONTHLY CHARGE The monthly charge, under the above rate, shall be $14.70 per month or prorated if service is provided for less than a full month. GENERAL PROVISIONS FOR MEMBERS ON LINE RETENTION 1. The above rate is not available where energy is being used or where a meter is

installed.

2. OPALCO normally retires and/or removes facilities that have not been used for twelve (12) months. Payment of the line retention rate will ensure that the facilities remain in place for future use. If OPALCO removes any equipment and the member wants it reinstalled, the member shall be required to apply for a new service or line extension in accordance with the current member service policy.

3. Members who have discontinued service for a period of twelve (12) months or have made a formal request for service and have not connected to the system after a period of twelve (12) months are subject to the line retention rate, provided that OPALCO has determined that the facilities are causing ongoing expenses, such as line losses or line maintenance to the system.

ORCAS POWER AND LIGHT COOPERATIVE TARIFF LR- 13

LINE RETENTION FOURTEENTH REVISION – REPLACING THIRTEENTH REVISION

____________________________________ Effective Date: March 2013 Billing Period J Foster Hildreth, Acting General Manager

AVAILABILITY New service under this tariff is not available after March 1, 1998. Those members receiving service under this tariff prior to March 1, 1998 may continue to do so. TYPE OF SERVICE OPALCO will own, maintain and operate suitable fixtures on brackets, with refractors and controls, and supply energy for sodium vapor lamps at locations agreed upon with the member, the service distance not to exceed 150 feet/2 wire, or 300 feet/3 wire. APPLICATION Non-metered or metered street, yard or security lighting service. BILLING CHARGE * $1.60 per month FIXTURE CHARGE $6.85 per month ENERGY CHARGE ** 100 Watts $2.75 per month 200 Watts $5.59 per month

* Applies only when not included on a bill for other energy usage. ** Applies only when energy is not metered.

WHOLESALE POWER COST ADJUSTMENT A surcharge or credit may be applied to each billing for service under this tariff to reflect increases or decreases in the wholesale cost of power based on the rates charged by Bonneville Power Administration. GENERAL PROVISIONS 1. All lamp replacements and other maintenance will be provided by OPALCO, except that

lamps and fixtures broken by vandalism will be charged to the member.

2. The member shall notify OPALCO if a lamp does not operate. OPALCO agrees to repair lamps as soon as possible, but, in any event, within five (5) working days.

3. A timing device and/or photo electric cell may be installed by OPALCO in order to limit the time interval that the lamp is turned on each night.

4. During the periods of energy shortage, lamps may be disconnected by request of either the cooperative or member, with no charge to member. The member will not be charged for the period the light has been disconnected.

ORCAS POWER AND LIGHT COOPERATIVE TARIFF POL- 13

PRIVATE OUTDOOR LIGHTING



AVAILABILITY Effective September 17, 2009 Tariffs ESR-08 and CI-08 shall be frozen to members. All members who have received service under these tariffs before September 17, 2009, are grandfathered under TOU-09. This tariff will be increased by 20% over the next 4 years to bring it up to cost of service. In addition, it will also be adjusted along with all other tariffs for increases in cost of service. Effective November 19, 2009 this tariff shall be known as Time of Use Tariff. TYPE OF SERVICE Single-phase, 60 cycles, at available secondary voltage. Equipment subject to automatic load management controls. APPLICATION Service for small farms, homes, pools, greenhouses and other non-essential loads. Limited to single phase loads. BASIC CHARGE: $30.40 ENERGY CHARGE:

On Peak (6 a.m. - noon) – $0.1221 per kWh Mid Peak (noon - 6 p.m.) – $0.0557 per kWh Off Peak (6 p.m. - 6 a.m.) –$0.0478 per kWh

MINIMUM MONTHLY CHARGE The minimum monthly charge, under the above rate, shall be $30.40 per month or prorated if service is provided for less than a full month. WHOLESALE POWER COST ADJUSTMENT A surcharge or credit may be applied to each billing for service under this tariff to reflect increases or decreases in the wholesale cost of power based on the rates charged by the Bonneville Power Administration. GENERAL PROVISIONS

1. Member agrees to allow the cooperative, at its discretion, to install automatic load management controls.




ORCAS POWER AND LIGHT COOPERATIVE TARIFF TOU-13

TIME OF USE RATE

(Formerly known as “ESR-08 Energy Saving Rate)

FOURTEENTH REVISION – REPLACING THIRTEENTH REVISION

Orcas Power & Light Cooperative Tariff TOU-13 Time of Use Page 2 of 2

3. No single resistive loads (examples: ovens, heaters, kilns) over 15 kW shall come on line simultaneously.


5. Loads served under this tariff shall not be capable of being switched to another meter served under a different tariff.

6. See Member Services Policy 3 Technical Provisions for additional requirements.


MEMORANDUM March 19, 2013 TO: Board of Directors FROM: Foster Hildreth, Acting General Manager RE: NWPPA Voting Delegate Designation NWPPA will hold its annual conference and membership meeting at the Hilton Bellevue May 19-23, 2013. Staff requests a motion to designate the general manager as primary and a Director as alternate authorized voting delegate for the meeting.

ORCAS SJ LOPEZ FEBJAN

YTD

YTD

TOTAL

001 Power Supplier-Bonneville - - - 0 0 0

002 Power Supplier-Puget Power - - - 0 0 0

100 OPALCO Construction - - - 0 0 0

200 Severe Storm - - - 0 0 0

300-303 Faulty Equipment/Installation - - - 0 0 0

350 Sectionalizing - - - 0 0 0

351 Fuses/Fusing - 1 - 1 0 1

352/353 Electrical/CAL/Transformer Overload - - - 0 2 2

400 Underground Cable Failure - 1 2 3 1 4

401 Contamination/Leakage (Equip. Fail.) - - - 0 0 0

402/403 Aging Material/Equipment - - - 0 0 0

450 Trees/Right of Way - - - 0 0 0

500/509 Weather (Other than Severe Storm) - 1 - 1 1 2

600 Small Animals/Rodents - - - 0 0 0

601 Birds - - - 0 0 0

602 Birds-Endangered (Swans; Eagles) - 1 - 1 0 1

603 Large Animals - - - 0 0 0

700/701 Cable Dig-In - 1 - 1 0 1

702 Traffic Accident - - - 0 0 0

703 Fire 1 - - 1 0 1

704 Substation Vandalism - - - 0 0 0

705 Construction - - - 0 0 0

709 Public Caused Outage 1 - - 1 0 1

800 Member Secondary Outage 1 - - 1 1 2

900 Cause Unknown - - - 0 0 0

3 5 2 10 5 15

4 3 1 8 24 32

PTD/YTD OUTAGES: FEBRUARY 2013

PTD/YTD OUTAGES: FEBRUARY 2012

ORCAS POWER & LIGHT COOPERATIVEUNSCHEDULED OUTAGE REPORT

FEBRUARY 2013

OUTAGE

CODECAUSE OF OUTAGE

DISTRICT 2013 TOTALS

2013 Outages-Board Report .xlsx

3/4/2013

Date: March 14, 2013 To: Foster Hildreth, Acting General Manager From: Russell Guerry, Manager of Engineering & Operations Subject: Operations Safety Program – February 2013 Jeff Myers conducted back safety and lifting training. He reviewed symptoms, causes and contributing factors leading to back issues, the principles of lifting as well as exercises and stretches for back strengthening. Accidents/Incidents/Near Misses Date: 12/14/2012 (This near miss was previously unreported) Type: Near Miss Description: Potential transformers (PTs) in a terminal station were grounded together yet not to the station ground. This damaged the relays and could have injured personnel. Action Taken: This near miss was reported at the safety meeting and the safety committee decided to record it via the accident/incident/near miss form. The crews were instructed to ensure a visual inspection is thorough and complete prior to their work efforts. Near Misses Incidents Accidents Loss Time

February 2013 0 0 1 0

YTD (2013) 0 0 1 0

Total Hours Worked without Loss Time Accident: 298,239

MANAGER’S REPORT March 2013

2013 Annual Meeting The slate of candidates for District 3 is Jerrold Gonce, Michael Karp, Jim Lett, Bob Myhr, and Dwight Lewis. Gonce and Lewis were nominated by petition. District 4 candidate is John Bogert. Ballots will be in the mail in mid-April for the May 4 meeting. Finance RUS Loan Submittal ($38.4M) Our RUS Loan is approved! Staff has received final clearance from RUS and loan funds are available for requisition. The two separate loans are for $15.2M for typical CWP work efforts and $23.2M for smart grid, EMS and wireless communications infrastructure. 2012 Financial Statement Audit Staff is currently gathering information to provide Moss Adams for the 2012 financial statement audit. Fieldwork is scheduled to begin the week of April 1-5. 2012 RUS Annual Form 7 Staff submitted the annual RUS Form 7 report on March 15. A copy of the report is included in the March board packet. NRECA Retirement Security (RS) Plan Accelerated Funding Option NRECA is requesting us to prepay OPALCO’s future funding retirement obligation in order to reduce monthly payments, and possibly reduce a potential deficit reduction contribution (DRC), when funding ratios are below specified levels. CFC has provided loan rate information to OPALCO for the lump sum payment of approximately $2.9M. Given this will impact OPALCO’s equity position, staff believes that the prepayment option discussion should be postponed until Broadband direction is decided. RED-L (Rural Economic Development Loan) Staff is compiling our first application for our RED-L fund with the Lopez Fire District. Staff is working with Rodney Peach at RUS to navigate through the cumbersome bureaucratic process. Lopez Fire District has requested $100,000 to purchase a paramedic vehicle and related equipment. Member Services Staff Changes Madeline Danielson has been hired to fill the open Member Services Representative position in Eastsound. Madeline comes to OPALCO from Washington Federal Bank, where she worked as a mortgage loan processor. Her start date is April1. MDMS (Meter Data Management System) and SmartHub These systems will allow members to analyze their meter data. Staff expects MDMS to be deployed to members by the end of April and SmartHub in October 2013. Member Services will have a demo and sign up table available at the Annual Meeting. Since members will be required to be enrolled in e-bill to utilize these services, we expect increases in our e-bill enrollment.

Manager’s Report March 2013 Page 2 of 3

Engineering & Operations As of March 1, there are 225 work orders open totaling $1,699,792. Operations has completed construction on 51 of those work orders, totaling $329,321. NRU NRU has completed the initial review of BPA’s rebuttal in the BPA power and transmission rate case. The way things look now, BPA will not accept the PTP (point to point) customers segmentation proposal and will keep the current CP (coincidental peak) billing factor. We won’t know until the end of the rate case whether BPA will move from 12 NCP (non-coincidental peak) to 12 CP cost allocation. Getting this change will be a challenge since it will move the rate increase for PTP to 22% from 19% and reduce the NT (network) rate by 5% compared to the 7% increase in the Initial Proposal. BPA will likely stick to its initial proposal on the delivery charge. The BPA initial proposal for power rates will probably be sustained. WRECA Foster Hildreth, Chris Thomerson and Suzanne Olson met with Kent Lopez, Grant Nelson and our elected officials Chris Lytton, Jeff Morris and Kevin Ranker in Olympia February 14.

WRECA is tracking 53 utility related House and Senate bills. At this point in the 2013 legislative session in Olympia, 34 bills have stalled and will not be progressing. The status of the remaining bills potentially impacting OPALCO includes:

1. Metal Theft (HB-1552): OPALCO supports this bill, which strengthens the criminal code and licensing requirements. This bill has a good chance to pass the house.

2. B&O Tax Exemption on Interest on CFC Loans (SB-5154). CFC is one of OPALCO’s financial institutions; we support the bill, as Washington State is only one of three states that don’t recognize the federal tax-exempt status of CFC interest. This bill has a good chance to pass the senate as a subset of a budget bill.

3. I-937 Bills: With the exception of a few minor adjustment type bills, the major I-937 bills have stalled for this session.

4. Renewable Energy Incentives (HB 1301): Wording of the bill remains confusing. As written, the substitute bill includes language, which reduces incentive tax credits and potentially removes tax credits for residential renewable systems that are less than 5 kW. We are also tracking language that requires customers (not the Utility) to certify meter reads. The future of this bill remains uncertain.

Thomerson and Hildreth will attend the next WRECA Board meeting in Walla Walla on April 9. Hildreth will attend the NRECA 2013 Legislative Conference with WRECA in Washington DC April 28-May 1.

Manager’s Report March 2013 Page 3 of 3

Island Network/Technical Services Technical Services staff has been planning for the technical equipment needed at the 2013 Annual Meeting. We are researching Internet connection avenues for all member sign-up locations and looking for creative ways to accelerate the member sign-in process. Energy Services Energy Services has done a great job of promoting conservation measures to our members. As of April 1, 2013 Energy Services will have an EEI remaining balance of $38,169 out of the $235,600 awarded for BPA’s fiscal year 2013. Staff estimates a total of $54,741 to be paid out in April. Staff projects that through the end of BPA’s 2013 fiscal year (9/30/2013) up to $180,000 will be required if our goal is to continue funding local energy efficiency projects. The projects include a very large custom project (FH Labs), residential programs, commercial lighting, and additional energy smart grocer projects. Staff will be providing more information at the April Board meeting. Two notable success stories include:

Friday Harbor Elementary School VFD (Variable Frequency Drive) Pump project is completed. Measurement and Verification (M&V) actually showed more energy savings than estimated - 119,000 kWh versus 101,000 kWh. This is an excellent example of an Energy Efficient Custom Project that is extremely cost effective with a B/C (Benefit/Cost) ratio of 4.76. The OPALCO rebate to the school is $15,743 with the actual project cost $22,472.

BPA engineer, Robert Weber, has been instrumental in helping the Lopez School District

realize new energy savings from a heat pump system installed 3 years ago. The heat pump system was not operating efficiently from the beginning. Weber was instrumental in programming holiday schedules into the system to optimize energy efficiency. Weber went out of his way to bring a Mitsubishi engineer to the school to review the system and train the facilities manager. This is extremely valuable information that Lopez School can use immediately with their new heating upgrade projects.

Wellness The volunteer event at the Animal Protection Society in Eastsound March 2 went well! Everyone worked very hard spring-cleaning the inside and outside of the building (until the rain came pouring down). Staff Changes Todd Shaner, Operations Superintendent will retire March 31, 2013. Ginny Reagles, Member Services Representative retired in February. We are planning on a barbecue at a later date to congratulate our retirees, to which the Board will be invited.

NEW SERVICES

February 2013

Orcas

San

Juan Lopez

Center/

Decatur

Blakely/Obstruction

/Crane/Shaw Total

Residential 1 3 4

Commercial 0

Line Retention 0

Other - OPALCO 0

Total* 1 3 4

2013 YTD 3 7 10

2012 YTD** 1 4 3 1 9

2011 YTD** 1 8 7 3 19

2010 YTD 4 9 4 1 18

2009 YTD 15 14 2 1 32

*Figures have been queried from the Service Order billing module and reconciled

to the RUS Form 7 New Service numbers.

**7 services for Lopez and 2 services for Shaw/Blakely were closed in February 2012,

but meters were set in 2011. These 9 new service points will be reconciling items in

2011/2012.

OPALCOHistorical MORE Revenue

(All Green kWh and MORE Blocks)

For Years 2011 - 2013 YTD

All Green All Green All Green

# kWh # # Block Total # kWh # # Block Total # kWh # # Block Total

Month Members kWh Revenue Members Blocks Revenue Revenue Members kWh Revenue Members Blocks Revenue Revenue Members kWh Revenue Members Blocks Revenue Revenue

0.04$ 4$ 0.04$ 4$ 0.04$ 4$

Jan 46 50,160 2,006 478 948 3,792 5,798 44 47,428 1,897 454 970 3,880 5,777 43 54,479 2,179 433 921 3,684 5,863

Feb 44 41,550 1,662 448 947 3,788 5,450 43 37,664 1,507 452 962 3,848 5,355 43 50,927 2,037 432 918 3,672 5,709

Mar 41 41,906 1,676 446 949 3,796 5,473 42 37,682 1,507 449 953 3,812 5,319 - - -

Apr 41 33,629 1,345 446 950 3,800 5,146 42 27,636 1,105 449 953 3,812 4,917 - - -

May 42 31,336 1,253 450 956 3,824 5,077 42 21,993 880 448 952 3,808 4,688 - - -

Jun 42 21,813 873 455 971 3,885 4,758 43 20,335 813 448 952 3,808 4,621 - - -

Jul 43 21,335 853 464 987 3,948 4,801 43 19,649 786 449 953 3,812 4,598 - - -

Aug 43 20,004 800 466 990 3,960 4,760 43 22,457 898 446 948 3,792 4,690 - - -

Sep 45 25,959 1,038 465 985 3,940 4,978 42 13,136 525 443 947 2,530 3,055 - - -

Oct 44 25,321 1,013 464 984 3,936 4,949 42 21,162 846 443 947 3,788 4,634 - - -

Nov 46 40,308 1,612 458 972 3,888 5,500 44 30,335 1,213 438 943 3,772 4,985 - - -

Dec 45 49,303 1,972 458 972 3,888 5,860 43 43,849 1,754 437 929 3,716 5,470 - - -

Total 44 402,624 16,105$ 458 11,611 46,446$ 62,551$ 43 343,326 13,733$ 446 11,409 44,378$ 58,111$ 43 105,406 4,216$ 433 1,839 7,356$ 11,572$

Notes: 2 members participate in both All Green and Green Blocks. Average blocks per member is 2.1.

Beginning June 2011, this report reflects combined data for the former Green Power program and MORE.

Beginning September 2012, half of the members were transitioned to a mid-month billing cycle; these

members were billed for 15 days of consumption, a prorated basic charge, and prorated MORE blocks

on 9/14/12.

2013 YTD

Green Power Blocks

2012 YTD

Green Power Blocks

2011 YTD

Green Power Blocks

3/20/2013

OPALCO Member Billing Revenue History

Month 2009 2010 2011 2012 2013 Average

January 2,542,345$ 2,091,129$ 2,266,724$ 2,203,319$ 2,354,732$ 2,291,650$

February 2,109,273 1,684,100 2,018,866 1,980,380 2,190,659 1,996,656

March 1,868,966 1,693,238 2,100,947 2,080,586 1,935,934

April 1,825,774 1,659,771 1,803,095 1,733,543 1,755,546

May 1,582,738 1,453,989 1,634,542 1,536,601 1,551,968

June 1,243,754 1,409,557 1,383,932 1,419,883 1,364,281

July 1,217,676 1,300,950 1,302,528 1,380,472 1,300,407

August 1,300,901 1,342,739 1,360,611 1,450,397 1,363,662

September* 1,297,670 1,297,936 1,421,174 1,005,902 1,255,671

October 1,335,166 1,389,529 1,483,658 1,499,863 1,427,054

November 1,590,102 1,584,909 1,977,782 1,779,353 1,733,036

December 1,975,064 2,123,602 2,375,284 2,085,584 2,139,884

Total 19,889,429$ 19,031,449$ 21,129,143$ 20,155,885$ 4,545,392$ 20,115,748$

Notes:

* Beginning in September 2012, half of the membership transitioned to a mid-month billing cycle. These

members were billed for 15 days of consumption and a prorated basic charge on 9/14/12.

`

Documents

Orcas Power & Light Cooperative - OPALCO - BOARD OF ......2013/03/12 · Orcas Power & Light Cooperative Board of Directors Regular Board Meeting Lopez Fire Hall, Fisherman Bay Road,