EMERALD PEOPLE’S UTILITY DISTRICT BOARD OF …Sep 11, 2018 · Directors: Ron Davis, Brandon...

M:\BOARD & POLICIES\Agendas\2018\09-11\2018-09-11- Board Meeting Agenda.Docx

EMERALD PEOPLE’S UTILITY DISTRICT BOARD OF DIRECTORS

MEETING AGENDA

33733 Seavey Loop Meeting Time: 5:30 p.m. TUESDAY, September 11, 2018 Eugene OR 97405 1. CONVENE BUSINESS MEETING - CALL TO ORDER – ROLL CALL – INTRODUCTIONS

2. AGENDA TIMELINE – Requests for Additions or Deletions 3. DEFERRED ITEMS 4. PUBLIC COMMENT

PLEASE NOTE: Statements from the public are limited to 5 minutes per speaker and are a comment period only on utility business, time permitting. The Board will not engage or respond to comments unless it is to correct inaccurate information or statements from the public. Interaction with the Board will be allowed if a member of the public has previously submitted a request to be added to the Agenda.

PRESENTATIONS AND REPORTS

5. FINANCE/TREASURER REPORT

6. GENERAL MANAGER’S REPORT

ITEMS FOR ACTION

Items placed on Consent Agenda are of a routine nature. Board will vote on the Consent Agenda without discussion. Items requested by any Board Member for discussion will be acted on separately. 7. CONSENT AGENDA Minutes of Board Meeting – August 13, 2018 Minutes of Work Session – August 28, 2018 Approval of Claims 8. MOTIONS AND RESOLUTIONS Action Item 18-08 – Customer Service Policy Update – Advanced Metering Opt-Out

INFORMATION AND PLANNING ITEMS

9. REVIEW OF MOTIONS

10. PUBLIC COMMENT – Open Comment Period (if time permits)

11. SUGGESTED ITEMS FOR FUTURE MEETINGS

M:\BOARD & POLICIES\Agendas\2018\09-11\2018-09-11- Board Meeting Agenda.Docx

12. UPCOMING MEETINGS/EVENTS Wednesday, September 12 Veneta - Fern Ridge Chamber Luncheon……… Veneta-Fern Ridge Chamber .............. Noon Tuesday, September 18 EPUD Finance & Rate Committee ................... EPUD ................................................... 5:30 pm September 19-21 OPUDA Conference ......................................... Holiday Inn/Springfield (EPUD hosting)..varies by day Thursday, September 20 Cottage Grove Business After-Hours…………….South Lane Fire & Rescue ................... 5:30-7:00 pm Friday, September 21 OPUDA Board Meeting.................................... Holiday Inn/Springfield ....................... 8:30am-1:00pm Tuesday, September 25 EPUD Work Session ..................................... EPUD ............................................... 5:30 pm Tuesday, October 2 EPUD Resource Planning Committee .............. EPUD ................................................... 5:30 pm Wednesday, October 3 PPC Member’s Forum…………………………………..Sheraton Inn/Portland Airport ............ 3:00-5:00 pm Thursday, October 4 PPC Executive Committee .............................. Sheraton Inn/Portland Airport ........... 8:00-12:00 pm Friday, October 5 PNUCC ............................................................. Sheraton Inn/Portland Airport ........... 8:30-11:30 am Tuesday, October 9 EPUD Board Meeting ................................... EPUD ............................................... 5:30 pm 13. DIRECTORS’ CONCLUDING COMMENTS 14. ADJOURN MEETING

EMERALD PEOPLE'S UTILITY DISTRICT Board of Directors' Meeting Monday, August 13, 2018 Minutes Convene President Parrish convened the meeting at 5:30 pm at the Emerald offices, 33733

Seavey Loop Road in Eugene. Attendance and Introductions

Directors: Ron Davis, Brandon Jordan, Bent Mikkelsen, Brian Parker, and Kevin Parrish. Staff: Doug Barab, Sara Cline, Scott Coe, Kyle Roadman, Alice Schroeder, Brian Sharr, Kelli Strange, and Beth Matthews. Guests: Robert Ball, Matt Bjornn, George Devine, and Jody Engeman - ratepayers.

Agenda Timeline There were no deletions from the agenda. An item regarding registration for the

upcoming OPUDA Conference will be added to the agenda.

Public Comment Robert Ball talked about how he has served on the Finance Advisory Committee

for 23 years. He said he was originally recommended by founding Emerald Board

Director Doug Still. Ball said it has always been a pleasure to serve on the

committee. The Board has always listened to and respected decisions and/or

recommendations made by the committee. On March 20 and April 17 of this year,

the committee met to discuss the three-tier rate system. The goal was to have staff

find ways for heavy electric users to reduce their usage. On June 13, Ball received

an email from Roadman to advise him that the Board had rejected the committee’s

recommendation.

From May 2017-March 2018, Ball noted that $289,000 in additional revenue was

recognized over the flat rate system for that same period. His question was “How

much money is too much? What happens after the bonds are paid off? Will

ratepayers be compensated with lower rates?” Another issue Ball had was with

the COSA. He said EPUD has consistently edged up the fixed rate charge per

meter, and it is now $28 and is continuing to increase. He wondered where that is

going to end. Is it fair to charge for two meters with only one service line coming

into the residence?

Ball thanked the Board for their time in allowing him to speak and said he hopes

and trusts that they will revisit the rate structure and COSA issues in the near

future.

George Devine stated that he was from Cottage Grove. He said he has sat through

hours of five minute speeches and was present at the meeting to support Robert

Ball’s comments. He said he has noticed the difference in the electric bills. Devine

stated that he thought maybe the way Emerald went about this may not have been

Emerald PUD Minutes – August 13, 2018

Page 2

the best. He said he has many friends who feel similarly. Perhaps there is a better

way to do it and hopes the Board can help.

Matt Bjornn said he had attended the June Board meeting. He is also from

Cottage Grove. He noted that the bill he received in January 2017 was 6240

kilowatts. He did acknowledge that he lives in a big house. He has since had

Tyler Boehringer from Energy Services do an evaluation of his home and that

Emerald has been very helpful. He has gone to a ductless system with six heads.

His bill was $519 before tier 3. At 6800 kilowatts, his bill was over $700. Bjornn

said his power bill this month was for about 1240 kilowatt hours and said he is still

going to hit tier 3—even with the ductless system--come December/January. He

does not feel other customers had been paying attention to their bills until he

brought it to their attention. He said he was very disappointed in the meeting he

attended in June. He has been on boards and on the City Council in Cottage

Grove, and knows there is a lot in play. He stated that 1800 kilowatts is a low

threshold. He said he hopes the Board will rethink this thing which he does not

think is fair. This is a public utility. It’s not the right way to go about things and

thinks the utility could come up with a better system.

Jody Engeman had two questions she wanted to ask: “Are microwave radio

frequencies dangerous to humans and the environment? Do the new smart meters

emit radio frequencies?” Engeman said that even if those two questions are

answered, it still doesn’t address the problem with invasion of privacy and/or

selling information to third parties. She said she does believe in innovation and

newer, better ways of doing things. Smart meters are not new technology. They

have been proven to be harmful to humans and the environment. Engeman said

she hopes we’re smarter than this. She encouraged the Board to use reason, logic,

and common sense. She has been concerned and does not believe we’ve proven

the meters are safe. The utility and the Board have an obligation to the public.

Engeman said she is concerned even with an opt-out policy – what if her neighbor

has a smart meter? She will still be affected.

Deferred Items None.

Finance/ Treasurer’s Report

The Accounts Payable Check Register for the period July 1-31, 2018 was reviewed and discussed. Staff clarified several expenditures for the Board.

General Manager’s Report

Coe distributed his General Manager’s Report. He indicated that a meeting of the Citizen’s Advisory Committee on Resources will be scheduled soon and asked the Board if they had any changes in membership. Staff is hoping to schedule a meeting for October 2. September 18 will be the first meeting Finance and Rates Committee. Senior Staff did a first look at a very rough 2019 budget today. Staff will provide the Board with budget information before it goes to the committee members. Director Parrish asked about the research staff has been doing with the high usage customers. Roadman said a postcard has been mailed out and we are waiting to


Page 3

hear back from customers. A notice was also sent to about 1,000 customers who had energy audits done in the last year or two. Coe provided an update on meter installations. We now have over 10,000 of the 18,500 residential meters installed. The number of meters having to be read is declining. We’re currently working on installations in the Creswell area. We had a customer from Creswell come in today who owns a Tesla. He plans to buy a second Tesla and wants us to go with time-of-use metering. He got his new meter installed this last week. A number of people spoke at the last Board meeting about being against the new metering. Coe said he did some research on the internet and found “do it yourself” information on how people could change out their new meters with analog meters. This is considered meter tampering and it is very dangerous for an untrained person to pull the meter. This should NOT be done. Coe briefly discussed several vehicle issues where two line bucket trucks were out of commission. Fortunately, we were able to borrow a truck from Blachly-Lane Cooperative. There are two new 70’ tree crew bucket trucks due on site in the next few weeks as well as a new line crew bucket due soon. We will be moving away from the International brand for Western Stars with Cummins engines. Western Star is a Freightliner brand and is less complicated to build, is more durable, parts are less expensive, and there are more places to get service performed. The EV Dedication will be held tomorrow, August 14 at 4:00 pm, if anyone is interested and available to attend. Coe talked briefly about the four current employees who drive Kia Soul EVs who routinely use the charging stations. Coe discussed a customer who “burned down their service by overloading with a commercial operation”. They were billed the cost of $3,295 and they will still need to increase their service capability at a cost of $13,000-$14,000 which they had already been told about back in January 2017. Lane County recently foreclosed on a property on Highway 58 in Dexter. Approximately 40-80 jobs will be moving from Springfield to this location, but because we’re not sure when/if this happening, we will not put that into our 2019 revenue forecast. At the last Board meeting, a policy review process was discussed to determine the first step, which is to review what policies we currently have in place. Coe said the Board may wish to combine some policies or structure them differently and then they may want to establish a review schedule. Director Parrish suggested that we also may get some benefit from SDAO. This may cost a few bucks but could save some time. Coe said it’s not like we haven’t done anything, but we do need a comprehensive look at what we have. On the Strategic Plan tracking, Coe indicated staff has an idea and will bring that back in to a future Board meeting for review.


Page 4

For potential items of discussion at upcoming work sessions, Director Jordan asked for a review of safety. This came out of some training he recently went to and at which it was recommended the Board review on a regular basis. Director Jordan also asked to add new Board Director orientation to the parking lot list in addition to the other items previously noted.

Q2 Budget – Review/ Discussion

Coe talked about when we started down the AMI route, noting that we will be substantially done by the end of this fiscal year’s budget. It will be a transfer of about $925,000 from AMI work originally budgeted for 2019 into 2018. In the first six months of 2018, we have performed lot of operations work--$600,000 worth of work, in fact, without any additional staff hours. Overall, the grand total revenue (Line 12) projected for 2018 is $1.5 million more than budgeted. He mentioned the BPA Slice true-up is expected to be around $140,000, although we will have a firm number from BPA by the time we do our Q3 review. The #2 Short Mountain generator just went back on line. The work came in under budget and a week earlier than expected. Medical claims are running $500,000 under budget. A few things on medical were changed a little over a year ago, but we’re trying to keep it in front of employees so they are aware of their benefits. Items which may work against us are super high market prices and fleet repair costs. Overall, Coe noted that it was a solid second quarter review. Director Parrish asked about item 55 on page 4 – uncollectible accounts. Coe said we won’t see that big a number in the budget next year. We’re on track again for another low year. Customer Service has metrics around it and tries to work really hard on collections. A question was asked as to whether we have tools to use for customers who are consistently behind. Coe talked about empowering employees on allowing some leeway on payment arrangements, but we’ve tightened that back up. We have also tightened up on new credits. At the end of the day, we understand this is not our money—it’s another customer who is paying it. Director Parrish said he hopes that with the new meters, this will help customers manage their bills better. Director Parker asked about Line 34 – Finance & Administration. Is this a single quarter, perhaps loading up in one quarter? Cline responded that this was the case and that it’s just timing. Q2 is year-to-date.

Addition to the Agenda

Online registration for the upcoming OPUDA Conference is available. Director Parrish indicated he had already signed up. Coe said, in his opinion, most goodie bags are junk and get thrown away. As such, we’re not doing one for conference participants this year and wanted the Board to be aware they may get push back on this decision. Director Parrish said if it comes up, he’s happy to address it.

Consent Agenda

It was noted that the July 10 Board meeting minutes needed to be adjusted as per the following related to Action Item 18-07/Resolution 2018-05 Instituting an Acting General Manager Protocol:


Page 5

Motion Vote

Director Jordan/Director Parker moved to approve Action Item 17-11 / Resolution 2017-03 18-07/Resolution 2018-05– Instituting an Acting General Manager Protocol in the case of absence or temporary disability of the General Manager The July 24 Board meeting minutes were adjusted slightly to accurately reflect Tom Hunt’s comments: Director Parrish asked him what he sees as the next best energy efficiency measure. Hunt said heat pumps which are able to cool to lower operate at much colder temperatures are the next best device. Director Parker/Director Jordan moved to approve the Consent Agenda with the noted changes. Unanimously approved.

Action Item 18-07/ Resolution 2018-05 – General Manager Interim Designation (AMENDED) Motion Vote

Director Jordan/Director Mikkelsen moved to approve amended Action Item 18-07/Resolution 2018-05 – General Manager Interim Designation. Unanimously approved.

Review of Motions The motions made during the meeting were reviewed for accuracy.

Public Comment None.

Suggested Items for Future Meetings

Suggested items for future meetings have already been captured on the parking lot list.

Upcoming Meetings/Events

President Parrish referred to the list of upcoming meetings and events listed on the agenda.

Directors’ Concluding Comments

Director Mikkelsen said he believes there are things the utility can do to equip customers to make choices on conservation, especially moving into the winter months. He personally has not had the opportunity to get additional estimates for his home heating/cooling system, but wondered what Emerald is doing to inform customers about those types of improvements. What are alternatives for customers if their well water doesn’t mesh with heat pump water heaters, as he had been told by one company who provided him with an estimate for services? Coe said the utility relies on Powerlines and mailings to customers. Director Parrish said we’re transparent at meetings, they are recorded and minutes are provided. We’re not meeting behind closed doors. Director Mikkelsen wondered about the possibility of text messaging customers. Coe said the utility has to be careful about sending messages over cell phone numbers, as we could end up with a fairly


Page 6

stiff penalty. Director Jordan said he liked the outreach we’re doing to customers that we have a relationship with for the energy audits and those who are high bill customers. Roadman said he is hoping this new campaign will be effective. We’re focusing our efforts on the 23% who did not see a benefit to the tiered rate system. Director Mikkelsen again reiterated how technology is constantly evolving. Coe said we’re using our entire Energy Efficiency budget, finding plenty of measures to put into place. Director Jordan complimented Emerald on the use of Instagram. With the new AMI system, Director Parrish said this is a chance to communicate with customers on the options available. Director Parrish discussed an article he had read about Green Mountain Energy in Vermont, an article which he had also provided to other directors. The article discussed their use of Power Wall 2.0 batteries and how users are charged with the power market rate every 15 minutes. Rates for that utility were reviewed and they indicated estimates are that they will cut their costs by $500,000 using the Tesla batteries. Director Parker said he will be touring the Chief Joseph Dam tomorrow with Director Parrish. He noted that this one dam alone could power the Seattle area by itself.

Adjournment

President Parrish adjourned the Board meeting at 6:52 pm. Minutes prepared by Beth Matthews, Executive Assistant.

EMERALD PEOPLE'S UTILITY DISTRICT Board of Directors' Work Session

August 28, 2018 Minutes Convene President Parrish convened the meeting at 5:30 pm at the Emerald offices, 33733

Seavey Loop Road in Eugene. Attendance and Introductions

Directors: Ron Davis, Brandon Jordan (participated by telephone), Bent Mikkelsen, Brian Parker, and Kevin Parrish. Staff: Doug Barab, Alicia Burgess, Alex Churchman, Sara Cline, Scott Coe, Kyle Roadman, Alice Schroeder, Brian Sharr, Kelli Strange, and Beth Matthews. Guests: John Large, Roger Stephens – ratepayers.

Agenda Timeline There were no deletions from the agenda. Director Parker asked to talk about the

tour he took of the Chief Joseph Dam if time permits.

Public Comment John Large stated that he wanted to address the tier 3 that was recently put forth.

He said he started in the irrigation industry with Willamette Valley Pump in 1968.

He said that when he was selling pumps, power contracts were being signed at that

time. The business sold energy efficiency pumps to help farmers with their usage.

If there is a deficit in the budget, someone has to raise the rates. Large said he

thinks the third tier addresses farmers and commercial people. He said he has had

some customers for over 30 years who are hurting. When you raise the minimum

rate per month, they are still paying a monthly rate before they even turn on the

power. Yet, all the income that comes in from the lower power usage is from the

whole area. Large said he expected that if he was going to cut back on his power,

he was not going to save any money. He stated his belief that the commercial

customers are taking the brunt of it. They are seeing it more than he is as a

residential customer. Large stated that he doesn't see where that third tier is doing

anyone any good. There are always unintended consequences.

Director Parrish clarified for Mr. Large that only residential customers with

Emerald are on the tiered rates. The commercial and industrial customers are not.

Risk Management Program Review

Coe said staff would like to bring a review of the Risk Management Program to the Board once per year. The Board has put into place a Risk Management Policy. This helps to minimize cost exposure and there are hedging activities implemented based on the analysis. The industry has been lured into lower power purchase prices of $25-35 with only an occasional spike. Emerald’s Risk Management Program is about avoiding those spike prices. What we're concerned about is how those calm days may be behind us. Staff thinks the program has been successful to date. We have the right hedging and purchase plan in place and we want to maintain stable rates for our customers. Roadman said Coe mentioned that it's an exciting time right now in the power markets. In his presentation, he will talk about how we have been able to limit our

Emerald PUD Board Minutes – August 28, 2018

Page 2

exposure, and then look at a review of this summer as well as the winter outlook. Roadman reviewed Slice/Block, noting that Emerald has two partner products with BPA—each at 50% with each at a monthly charge of approximately $700,000. He explained that the Block product is a partner product to Slice, and which BPA requires. The Slice product offers the benefit of resource flexibility and local control. The Energy Authority (TEA) is a consultant for Emerald on a short-term basis and then internally, the Risk Management team works to prevent those short-term exposures which may creep up. Director Parrish noted that Emerald and Clatskanie are the only Oregon PUDs who are Slice/Block customers and that EWEB is the only other Oregon utility. Roadman talked about how there's never a perfect match with Slice and what our loads are, although we try to get close. We sell the surplus power but sometimes Slice isn't enough, so we're out in the market buying. This is the situation that we pay close attention to. Mr. Stephens asked whether Short Mountain is running all of the time. Roadman indicated that yes it is, with four generators running. He noted that he would have some additional information on this specifically later in the meeting. Coe discussed Cascade Pacific Pulp's (CPP) wholesale arrangement which helps Emerald get a better value as a Slice customer. It is also a better deal for CPP as well. Emerald delivers its surplus Slice to them and they're kept whole by some sort of power arrangement and they then manage their own risk profile.

Roadman reviewed a chart in his presentation on the risks facing Slice customers and possible approaches to managing those risks. He said Emerald has four active and five approved counter parties available for hedging activities. Emerald relies on TEA for help on this. Roadman continued the presentation, talking about the Risk Management Program at Emerald which is led by an internal team. Decisions are made on whether we feel comfortable with surplus/deficit positions. Banks are typically the counterparties we work with on hedges. This is a great tool for Emerald to have. The goals of a hedging program are to narrow the range of outcomes between $0 and $30,000,000, narrowing the gap between high and low outcomes. Roadman said that prices lately have been fairly calm but big extremes can happen. Risk Policy limits the surplus or deficit we can carry at any given time. The chart presented goes out 36 months. The red lines show the limits that our policy places on us. To bring that into compliance, we would go out and work with a counter party to effectively reduce the amount of surplus that we have. The same concept applies on the deficit side. The reason that we avoided higher prices recently was that we made a decision not to sell off the surplus, leaving most of our supply intact. In July, we had plenty of power to meet our needs with an exception here or there where we had to buy power. We're currently working on the winter but prices are not where we are comfortable. Coe briefly discussed what our power supply needs are for our retail load.

Summer 2018 risk factors include significant heat events across the entire west coast, higher Emerald system peaks due to recent load growth, and late summer water supply always being lower. The biggest factors are gas storage and supply


Page 3

constraints in California. There is really no time table on when some of these will be rectified. A monthly view of July 2018 was shown, giving a day-by-day view of our loads for the month of July. Short Mountain is shown in green on the bottom of the chart. July 23 was a high price day that we wanted to use as an example. This was depicted on page 14 of the presentation. The following page gave a view of the specific transactions. Pricing was all over the board. Sometimes the best approach is to just not take any action (or in this case, not selling off our surplus power in anticipation of heavier loads). Winter 2018 risk factors include the potential for cold weather events similar to the past two winters, higher Emerald system peaks due to recent load growth, continued gas storage and supply constraints in California, and fewer market products available for heading such as call options. Since each of the past two winters have been very cold here, we need to be diligent about watching this. A Call Option is like an insurance policy, basically setting a cap on the amount of power you may need. It gives you certainty that you won't have to pay more than a set amount. This is done well ahead of any known extreme weather events as premium prices become cost prohibitive once weather events are known. This has been an effective tool for Emerald and one we hope will continue to be available. For the winter strategy adjustment, we might consider other options such as covering a larger portion with forward energy purchases and/or using call options to deal with short-term market events. Coe commented that it's good for the utility to be quick and nimble with our decision making process. We can get a vote in electronically from the Risk Committee the same day. In these big events, it's been important to move quickly. The fact that we can do this locally is good for us, said Roadman. We can develop better strategies than if Bonneville were doing this for us. Coe noted that we will demand fewer restrictions and penalties for errors on the Slice product. When we started this process six years ago, we had some penalties that we dodged and which he felt were stupid. There are different ways to do calculations, some of which are quite convoluted. When you lose a load due to an outage, you can come close to not passing the test.

Short Mountain Renewable Gas Feasibility Study

Coe said his perspective is that our position is if we did this project, we have a fixed outlay of money and a fixed revenue stream. This is an interesting study but our recommendation is to just hold tight for right now unless we can fix the revenue stream. The background on Short Mountain is that Emerald owns the rights to use landfill gas at that facility. Roadman discussed how the demand for biogas has grown considerably in recent years. The project that Coe had referred to was a feasibility study which staff contracted with Eco Engineers to complete. This was to estimate the value of using Short Mountain gas as a renewable transportation fuel and to estimate the cost involved in converting our facilities to allow gas pipeline


Page 4

injection. The value on the attributes of landfill gas is extremely high right now. However, is there a higher or better use of that gas? Roadman provided the Board with the report from Eco Engineers. Coe said it is actually quite interesting reading. A potential opportunity would be to reposition Short Mountain to produce renewable fuel. The upgrading process would be expensive and non-trivial. Ultimately, the benefits must outweigh the cost and risk. Construction cost estimate is that it's NOT cheap! The total project cost would be projected at $19,003,000. The estimate for the operations and maintenance is about $1,312,000. The Revenue Estimates and Financial Analysis chart was reviewed. Roadman said we think this is a pretty decent range of assumptions. We also talked to TEA, who has a better pulse on these kind of markets. Clearly, this is a political hot button issue, particularly with farmers in the mid-west. Coe noted that we're pretty full with projects at the utility right now and this feels like a bad outcome. Director Parrish thinks it's money well spent for the study in any case. The value of this exercise is that we now know what the project costs would be. However, we'll just keep those generators chugging along. Roadman's recommendation is to continue looking at this but at this point in time, it's a little too much risk. Coe said we know what target we need to shoot for to make this a worthwhile venture--$19,000,000. That's the bogey. The Board took a brief break, adjourning at 6:37 pm and reconvening at 6:45 pm.

High Density Load Review

Coe talked about Washington utilities and whether there are policy implications we should be aware of if some of those types of high density load businesses start moving out of state into Oregon. Churchman presented information on HDL, or high density loads. He said these are massive loads normally associated with cryptocurrency or server farms. HDLs require abnormal alterations in order to maintain safety and have the potential for volatile load growth and reduction. It generally is a fragile market and has a risk of stranded infrastructure. Currently, Washington utilities are struggling to meet the demand of HDL customers. Those utilities are famous for their low rates and have been bombarded by HDL service requests. He noted that Oregon has fairly low rates when it comes to power, which can attract future HDL customers. He also noted that we already have data mining customers in our service area. Churchman continued by discussing potential HDL Risks, which may also result in a rapid increase in load for Emerald, causing the utility to turn to new, potentially riskier sources of power. Is this really an issue? Churchman indicated that currently, HDL customers seem to be staying in Washington and although Oregon rates are higher than Washington, they are still much lower than the national average. This means that the utility may want to be prepared for a customer influx. Several Washington utilities are creating HDL rate classes based off a cost of service analysis while several others have placed a temporary ban on HDL to learn more about its impacts. One utility is looking into mobile substations and


Page 5

there are line extension policy updates being done. Director Parrish mentioned that with the AMI process, we'd be able to see higher usage a lot sooner if someone were to move into the district with one of these farms and not tell us when they moved in. Policy options were presented: 1) monitor the situation and initiate a rate process if necessary; 2) design a rate schedule for HDL customers based on COSA; or 3) put a temporary moratorium on HDL customers in the service area to research policies. The first option is the one that staff would recommend: monitor the situation and initiate a rate process if necessary. The reason for this is that we're pretty comfortable with our new large load policy and line extension policy. However, should an HDL customer move into our territory, a cost-based rate would be developed. Long-term power supply arrangements would need to be negotiated to ensure Emerald’s existing customers are not put at risk.

Advanced Metering Opt-Out Policy Review

On July 24, the Board discussed the possibility of allowing customers to opt-out of the District’s advanced metering technology. As a result, staff has put together an option to allow customers something than an AMI meter. We don't always agree with some of the ideas that customers are bringing forward, but we do want to listen to their concerns. This would become part of the Customer Service policy if the Board approves. We have had less than 200 customers at the 11,000 meter installation point who do not wish to have a new meter. We are discontinuing the support of the current failing infrastructure. Customers cannot have their meters read by the current process done today. We also do not propose having customers read their own meters, but Emerald staff would do so monthly. We would take a framework of the proposed charges to the Finance and Rate Committee on September 18 if the Board agrees with the proposed changes to the Customer Service policy. Directors Parrish and Parker both thought the language looked good. Kevin only had one change—making sure the “advanced” wording was consistent. It was noted that one item we want to stop doing is manual disconnects. Access is the other issue. Customers will not get to keep the manual read meter. Burgess said the 200 customers who have stated they do not want an AMI meter, have been left alone at this point. We do not have a date set yet on when the power line carrier will stop reading. However, we do hope to give customers ample notice. We anticipate we will be done with the installation contractor by January 1, 2019. That would be one bookend. The other bookend would be April 1, 2019 when we normally make changes to rates, should there be any. The next step is how to establish a fair cost. A proposal will be brought into the Board at the September 11 meeting for approval prior to taking it to the Finance and Rates Committee on September 18. Coe said we would review this annually to see if an adjustment makes sense. The cost per customer will likely increase as customers are more spread out.


Page 6

Addition to the Agenda

Directors Parker and Parrish took advantage of attending the PPC-hosted tour of the Chief Joseph Dam on August 15. Director Parker said the area was very smoky due to the massive fires burning up that way. He talked about the dam being very hot inside, all along the 2089 feet of the space of the L-shaped dam. He noted that the dam was basically just there to make power and, as such, they don’t have to worry about fish issues. There are three generators at the dam, each powering four transformers. The tour guides talked about their long-term plans for maintenance, which costs about $30 million per year. The dam generates about $1 million per day. They only operate on or off—there is no way to alternate speed for optimal efficiency. Director Parker said the trip was worthwhile for the three-hour tour. He said there were about 60 attendees and everyone he spoke to who worked there were very knowledgeable. Staffing levels are being reduced and they’re still managing to do more with less. Coe noted for the Board that Debra Smith, current General Manager with Central Lincoln PUD has been nominated to be presented to the City Council as the new CEO of Seattle City Light. If approved, her projected start date is November 15.

Public Comment None.

Adjournment

President Parrish adjourned the Board meeting at 7:40 pm. Minutes prepared by Beth Matthews.

Action Item 18-08

To: Board of Directors

From: Scott A. Coe, Alicia Burgess

Date: September 11, 2018

RE: Customer Service Policy Update – Advanced Metering Opt-Out

Discussion Emerald is in the process of upgrading to advanced metering technology. After communicating the project details to customers, Emerald began to receive requests from customers to keep their current meters. Over the last few months, multiple customers have requested the ability to opt-out of the use of the new meters.

Following the discussion regarding policy considerations with the Board on July 24, staff drafted a proposed update to the Customer Service Policy to include parameters specific to opting out of the advanced metering technology. The Board reviewed the revised policy on August 28 and directed staff to work with the Finance and Rates Committee to recommend appropriate cost-based fee amounts for installing and manually reading non-transmitting meters. Following Board approval, the fees will be incorporated into rate schedule 88 M- Miscellaneous Service Charges and reviewed on an annual basis.

Action Request Staff requests Board approval of Action Item 18-08, the updated Customer Service Policy, with a beginning implementation date of January 1, 2019.

Staff will work with the Finance and Rates Committee on a proposed fee schedule and implementation timeline for Board consideration this fall.

Advanced Metering Opt-Out

Customer Name: Account #:

Service Address: Phone #:

Do you have any meter access issues, such as a locked gate, dog, etc.?

If yes, please describe:

CUSTOMER INFORMATION

Yes No

LOCATION INFORMATION

OFFICIAL USE ONLY

Customer Signature Date

I agree that I am an authorized customer on the account listed above. I am electing to opt-out of Emerald PUD’s advanced metering technology and agree to the terms listed below.

y Emerald PUD will install a non-transmitting meter of its choice, and manually read the meter each month. Access to the meter and equipment are required at all times as outlined in the Customer Service Policy.

y The account may be charged a one-time installation fee and a monthly manual meter reading fee. If the fees are not paid, or the account becomes past due, the utility reserves the right to install an advance meter at the location, and all disconnect policies will apply.

y The meter reading and billing dates for the account will be determined by Emerald PUD.

I recognize that by selecting this option I will not receive any enhanced services and benefits provided by the advanced metering technology, such as:

y Verification of outages and outage restoration

y Detailed energy consumption data

y Billing date options

y Prepaid Metering

Additional information is available in the Customer Service Policy at www.epud.org.

Date Recieved: Installation Fee Added in CIS:

Date of Meter Change: Manual Meter Reading Fee Added in CIS:

Emerald People’s Utility District Page 1 of 19 Customer Service Policies and Procedures 01-01-2019

Emerald PUD

CUSTOMER SERVICE POLICIES AND PROCEDURES


Policy Name Effective Date

Emerald PUD Customer Service Policies and Procedures 01/01/2019 Department Responsible Party Suggested Review

Customer Service Customer Service Manager Biannually Approved By Date Approved Board Resolution Number or Action Item

Board of Directors October 11, 2016 Action Item 16-18 Revision History

08/01/2017, 11/14/2017, 9/11/2017


EMERALD PEOPLE’S UTILITY DISTRICT

CUSTOMER SERVICE POLICIES AND PROCEDURES

TABLE OF CONTENTS 1. CUSTOMER DATA AND INFORMATION CONFIDENTIALITY ................................................................................4

2. RATE SCHEDULES ................................................................................................................................................4

3. APPLICATION FOR ELECTRIC SERVICE (START/STOP/TRANSFER) .......................................................................5

4. DEPOSITS ............................................................................................................................................................6

5. METER READING AND BILLING PERIOD ..............................................................................................................7

6. BILLING AND PAYMENT OPTIONS ......................................................................................................................8

7. LATE PAYMENT CHARGES AND RETURNED CHECKS ....................................................................................... 10

8. DISCONNECTION OF ELECTRIC SERVICE .......................................................................................................... 11

9. RECONNECTION OF ELECTRIC SERVICE ........................................................................................................... 13

10. ACCOUNT COLLECTION ............................................................................................................................... 14

11. APPEALS ....................................................................................................................................................... 14

12. METERING SERVICE ..................................................................................................................................... 15

13. METER TAMPERING ..................................................................................................................................... 16

14. RESALE OF ELECTRIC SERVICES .................................................................................................................... 17

15. MISCELLANEOUS SERVICE CHARGES ........................................................................................................... 17

16. NEW LARGE LOADS ...................................................................................................................................... 17

17. OPERATIONS AND ENGINEERING POLICY .................................................................................................... 19

18. NET METERING AND GENERATION INTERCONNECTION POLICY ................................................................ 19

19. RESPONSIBILITY FOR GOVERNMENT IMPOSED FEES .................................................................................. 19


1. CUSTOMER DATA AND INFORMATION CONFIDENTIALITY 1.1 The District may collect Customer Data and other information about its Customers to better serve

them and to offer applicable products and services to meet their needs and expectations. Unless required by law, Customer Data shall not be shared with a third party unless prior notice is given to the Customer giving Customer the ability to dispute the disclosure of information.

1.2 Notwithstanding the above, the District may share Customer Data with its employees and authorized agents of the District that perform services for the District or on the District’s behalf. All employees and authorized agents are required to comply with the District’s Identity Theft Prevention Policy.

1.3 The District has implemented a program to identify, detect, prevent, mitigate, and update “Red Flags” that signal the possibility of identity theft in compliance with the Fair Credit Reporting Act, as amended by the Fair and Accurate Credit Transactions Act of 2003. For more information, see the District’s Identity Theft Prevention Policy.

1.4 Customer Data may be disclosed as permitted or required by law - for example, to law enforcement officials in response to a subpoena or in response to a public records request in compliance with Oregon’s Public Records Laws.

1.5 Account Information may be released to a Customer about the Customer's own account, at the convenience of the District, and upon verification of the requester's identity. Disclosures will be in accordance with the Oregon Public Records law and District policies.

1.6 Personal Information shall not be released without permission from the Customer, unless requested by public safety agencies or local, county, state, and federal governments or by other utilities and agencies with whom we have reciprocal arrangements, or as otherwise required by law.

1.7 Account Information for non-residential Customers may not be released without express written consent from the Customer’s authorized representative, unless required by law. Any non-residential Customer may list with the District any authorized representatives to which the District may release Account Information. Identification verification will be handled according to the District’s Identify Theft Prevention Policy.

2. RATE SCHEDULES 2.1 Electric services are provided to serve buildings, structures, places or things without regard to

individual occupants. Further, rate schedules are applied according to use, load and customer class, such as Residential, Farm, Commercial, Irrigation, Street Lighting, Industrial, Large Industrial etc.

2.2 The rates and rate schedules of the District are based upon a balance between the District’s understanding of the Customer’s Electric Service requirements the cost of wholesale power and the District’s cost of providing service to the Customer class. The Rate Schedules have been adopted by the District to establish charges for service according to classes of Customers at cost based rates and to prevent inter and intra class subsidization.

2.3 For more information, see the District’s current Rate Schedules.


3. APPLICATION FOR ELECTRIC SERVICE (START/STOP/TRANSFER) 3.1 All persons and entities desiring residential or non-residential Electric Service may apply for service

by telephone, mail or in the District’s office. 3.2 The application for Electric Service is a request only and is not binding on the District until the

District receives all required information and documentation and actually delivers, or is ready to deliver, Electric Service to the Customer. The delivery of Electric Service by the District and its acceptance by the Customer, with or without written application, shall be deemed to constitute Customer’s agreement and acceptance of the District’s established Rate Schedules, Policies and Procedures. Billing for minimum charges and Energy usage will commence the date Electric Service is connected.

3.3 Applications for Electric Service shall be made a minimum of one business day in advance of the desired connection date. Applications must be received by the District during normal business hours, excluding District-observed holidays. Customers requesting Electric Service connection on Fridays, Saturdays, Sundays, District-observed holidays or after normal business hours may be accommodated at the discretion of the District; however, the customer may be charged after-hours rates according to the District’s schedule of charges.

3.4 All Customer information and documentation required by the District must be satisfied before the Electric Service will be energized. Applicants for Electric Service shall provide the District with the following minimum information at the time each account is opened:

3.4.1 Legal name of the applicant or organization

3.4.2 Service address

3.4.3 Mailing address

3.4.4 Date the applicant wants service to begin

3.4.5 Social Security number or Federal Tax ID

3.4.6 Date of Birth

3.4.7 Contact information, including phone number

3.4.8 Driver’s license number, if applicable

3.4.9 Method of payment (autopay, check, credit card etc.)

3.4.10 Other information (including photo identification) as the District may require for the applicable service.

3.5 Should a Customer refuse to provide a Social Security number, the Customer shall be required to sign up for Electric Service in person at the District’s office, show identification consistent with the District’s Identity Theft Prevention Policy, and pay a deposit or enroll in the Prepaid Metering program(as outlined in section 4).

3.6 Upon application for Electric Service, the District shall conduct a credit evaluation of the applicant.


Based upon this evaluation, a security deposit may be required in the District’s sole discretion. Should an applicant refuse to have a credit evaluation, the applicant shall be required to sign up in person at the District’s office, show valid identification acceptable to the District, and pay a deposit or enroll in the Prepaid Metering program (as outlined in Section 4).

3.7 Property owners or Landlords who wish to have Electric Service to their rental units remain connected after the unit has been vacated by a Tenant may sign a Landlord Agreement with the District. Under the terms of a Landlord Agreement, the property owner or Landlord assumes responsibility for payment of all Electric Services from the date the renter/tenant disconnects the Electric Service until the District begins providing Electric Service to a new renter/tenant at the Property. The District will not participate in a renter/tenant eviction process unless required by a court order.

3.8 All new or existing service equipment must comply with the requirements of the NEC, the NESC, and the District before the Electric Service will be energized.

3.9 Electric Service will not be connected (and existing Electric Service may be subject to disconnection) should a Customer or former Customer owe a delinquent balance while residing at any District service address. The delinquent balance must be paid in full before Electric Service is provided to the Customer or former Customer.

3.10 For non-residential Customers or Customers with special Electric Service conditions, including seasonal, fluctuating large or high density loads, the District may require a Special Contract. No Special Contract, or any modification thereof, shall be binding upon the District until authorized and executed by the Board, general manager or authorized designee.

3.11 Where two or more persons jointly apply for Electric Service from the District, such persons shall be jointly and severally liable for all amounts due and owing and shall be billed by means of a single, periodic billing statement.

3.12 Signed applications by an authorized representative may be required on all non-residential accounts.

3.13 Any non-residential Customer may list with the District any authorized representatives to whom the District may release Account Information. Identification verification will be handled according to the District’s Identify Theft Prevention Policy.

4. DEPOSITS 4.1 The District may require a deposit on any new or existing account for any reason, including but not

limited to:


4.1.1 A Customer or applicant with a history of delinquent payments to the District, other utilities or creditors.

4.1.2 An applicant who has not established or has a limited credit history with the District or any utility or creditor.

4.1.3 A Customer or applicant that has a delinquent balance owing to the District.

4.1.4 A Customer disconnected for failure to pay utility bills when due.

4.1.5 A Customer who has tampered with District equipment or used Electric Service following illegal reconnection of service or power diversion.

4.1.6 A Customer or applicant refusing to give information requested by the District for the purpose of clarifying the Customer’s identity or credit worthiness.

4.2 The deposit requirement may be waived if the customer is eligible to enroll in the Prepaid Program.

4.3 If a deposit is required for an existing customer, the deposit shall be in an amount that is 2x the highest, historical monthly bill for each meter at the service location. If a deposit is required for a new customer, the deposit shall be based on 2x the estimated monthly bill for each meter at the service location.

4.4 If a deposit is required, the Customer may be required to pay the deposit in full before Electric Service is provided.

4.5 In addition to a cash deposit, non-residential customers may request that the District accept an alternative form of deposit in the form of:

4.5.1 A surety bond from a surety licensed to do business in Oregon acceptable to the District; or

4.5.2 An irrevocable, stand-by Letter of Credit from a financial institution acceptable to the District; or

4.5.3 A Guarantor acceptable to the District. The District will determine whether to accept an alternative form of Deposit, in its sole discretion.

4.6 The District may refund or apply deposits plus any accrued interest to any unpaid balance upon discontinuance of Electric Service, or after twelve (12) consecutive months without having more than one delinquent payment.

4.7 Electric Service may be refused or disconnected if the required deposit is not paid within the designated timeframe.

4.8 Customers who file for bankruptcy will be subject to the bankruptcy laws in effect at the time of their filing.

5. METER READING AND BILLING PERIOD 5.1 The District shall own, install, repair and replace all necessary meters for measuring and collecting

data required for billing. The District shall keep an unofficial account of all meter readings and data


in accordance with the State of Oregon retention schedules. Meter readings shall be accepted as evidence of the use of Energy and/or Demand by the Customer, and shall be the basis on which all bills are calculated, except for those Customers having unmetered service. Where a master meter is used, the District shall not furnish or read auxiliary or sub-meters used for the Customer's convenience, except as required by a Special Contract between Customer and the District.

5.2 Customers who choose to opt-out of the use of the District’s advanced metering technology shall have their meter read manually by a District employee each month. An installation and monthly charge shall be paid by the Customer to recover the costs associated with installing and reading the meter manually. See Schedule 88 M for the installation and manual meter reading fee amounts. The District, in its sole discretion, will determine the meter reading and billing dates. Access to the District’s meter and equipment are required at all times as outlined in Section 12. If the District is unable to access the meter for any reason, the Customer shall not be allowed to opt-out of the use of the District’s advanced metering technology.

5.3 All Rate Schedules are based on a Billing Period from 27 to 34 consecutive days. Reference to one month’s service in the Rate Schedules relates to the Billing Period, which, in all probability, is not a calendar month because of weekends, holidays, and differences in the lengths of calendar months.

5.4 The District reserves the right in its sole discretion to read meters and present bills for longer or shorter periods than the normal Billing Period. If it is not practical to obtain an actual meter reading, billing may be based on estimated usage and subject to later correction when actual meter data is available.

5.5 Should any meter malfunction and incorrectly register the amount of Energy usage, the Customer shall be notified as soon as possible after the metering malfunction is discovered. Customer may receive a refund or be surcharged for up to two (2) years of service based on Customer’s estimated Energy usage or Demand. The energy usage or demand shall be determined based on prior or current usage and demand patterns, excluding the period in which the malfunction occurred. This section does not apply to meters that have been intentionally altered, moved, modified or otherwise tampered with.

5.6 If Customer suspects that a meter has malfunctioned, Customer shall immediately report the suspected malfunction to the District.

6. BILLING AND PAYMENT OPTIONS 6.1 Customers shall be assigned to the applicable Rate Schedules according to customer class,

occupancy, expected use and load at the time of application. The District reserves the right to revise its Rate Schedules and assign customers to different Rate Schedules when appropriate in its sole discretion. If a Customer changes its use, load, or increases or decreases the occupancy of a residence, the Customer shall notify the District, and the District will determine if the Rate Schedule still applies or should be changed. The District will make every reasonable attempt to change the applicable Rate Schedule prior to the next billing statement, if appropriate. If the Customer does not notify the District of a change of use, load, or increase or decrease in occupancy, the District reserves the right to change the Rate Schedule at the time the change is


identified and adjust prior bills according to the billing adjustments policies referenced in section 6.13. The electric billing shall remain the responsibility of the owner, lessee, or property management agency involved.

6.2 Billing statements shall be sent to Customer on a monthly basis by U.S. mail at the Customer’s billing mailing address. Failure to receive the billing statement will not release Customer from any obligation of payment to the District. Customers signed up for paperless billing will receive an email notification when their bill is available for review on the District’s website.

6.3 Bills are due upon presentation and payable no later than 15 days from the date of billing except that closing bills are due and payable upon presentation.

6.4 A Customer who is unable to pay the full amount of the bill may request a payment plan, subject to approval by the District, in its sole discretion. The District shall base its decision on the Customer’s good faith, ability to pay, and past payment history with the District. Any Customer who has not complied with prior payment arrangements may not be permitted to enter into a new payment arrangement. Payment plans will usually not exceed 60 days and must include payment on current billings. The District’s acceptance of partial payments in the past or a payment plan shall not preclude the District’s right to discontinue the payment plan and require full and immediate payment of all past due amounts (including late fees and penalties) and full payment for all current and future service. Customers who are having difficulty paying their electric bill are encouraged to contact the District for referrals to organizations, agencies, and programs that may provide financial assistance.

6.5 Payments may be made to Emerald by mail, by telephone, in our office, online or at any pay station designated by the District.

6.6 Customers may make payments to the District in U.S. currency by cash, check, money order, credit card, recurring withdrawal from checking, savings or credit card (Autopay), on-line bill payment, or any other District approved electronic payment. The District may reject payments in cash for bills over $150 dollars and require payment in another form, in its sole discretion.

6.7 Recurring withdrawals from a checking, savings or credit card (Autopay) require online or signed authorizations. Customers will not be permitted to use Autopay if a recurring withdrawal is rejected for any reason. Rejected recurring payments will be treated the same as a returned check, and will be charged the scheduled amount.

6.8 The District offers the use of Prepaid Metering which requires Customers to pay for their Electric Service in advance, utilizing specific meters or equipment. The District may require these meters or equipment to be installed at new service locations or for existing Customers, in the District’s sole discretion. Prepaid Metering requires a credit balance on the account at all times. Electric service will be subject to disconnection if the account does not have a credit balance. Customers enrolled in the Prepaid Metering program will not be eligible to make payment arrangements. Prepaid Metering may be used in place of a deposit requirement. Customers who choose to opt-out of the use of the District’s advanced metering technology will not be eligible to enroll in the Prepaid Metering program.

6.9 The District may offer Equal and Average Pay plans which allow Customers to pay only the


estimated average monthly amount of the previous 12 months of bills. Customers must have a zero ($0) balance and have at least twelve (12) months of usage history at a single Electric Service location to be eligible for the program. Any anticipated future rate increases within the Equal or Average Pay plans are taken into consideration in determining the monthly payment. The District reserves the right to adjust the monthly payment requirement at any time to compensate for debit or credit balances. The Customer shall be removed from the program if they have more than two (2) delinquent payments within the previous twelve 12 months.

6.10 An owner of rental property may use a Landlord Agreement to assure uninterrupted service at a rental property when tenants vacate the premises. Otherwise, Electric Services may be turned off during such periods.

6.11 Customers submitting a medical certificate are not excused from paying their electric bills. 6.12 Opening and closing bills shall be prorated within the rate schedule on the basis of a 30-day

month, if an actual meter reading cannot be obtained. 6.13 In the event a billing error is discovered by the District, the District shall notify Customer and

Customer may receive a refund or be surcharged to correct any overcharge or undercharge on a Customer’s bill. In the event a billing error is discovered by Customer, Customer shall immediately notify the District in writing, and explain in detail the disputed charges. If the District determines that a billing error has occurred, Customer may receive a refund or be surcharged to correct any overcharge or undercharge on a Customer’s bill. The period for which any refund or surcharge will apply shall not exceed two (2) years of billings, and any refunds or surcharges shall be made in the District’s sole discretion. Meter malfunctions are addressed in Section 5.4 above.

7. LATE PAYMENT CHARGES AND RETURNED CHECKS 7.1 Bills greater than $500 will be charged 1% per month should an arrears exist at the next billing

date, or the maximum amount allowed by law. Bills greater than $25 and less than $500 will be charged a $5.00 late fee should an arrears exist at the next billing date. Bills less than $25 may not be charged a late fee, unless the Customer is late on 2 or more payments in a calendar year. More information can be found in the Rate Schedule 88M – Miscellaneous Service Charges.

7.2 If a Customer’s check or payment is returned to the District unpaid for any reason, the Customer shall be charged a non-sufficient funds (NSF) bank charge per returned item to cover the bank fees charged to the District and the handling of the returned item pursuant to Rate Schedule 88M – Miscellaneous Charges.

7.3 If a Customer’s payment is returned for any reason, the Customer must pay the bill no later than 15 days from the date of the billing or enter into a payment arrangement subject to the approval of the District.

7.4 If the Customer’s account becomes past due as a result of a returned payment, the account may be subject to a late fee and disconnection for non-payment.

7.5 The District reserves the right to establish the means or form of payment (cash, money order, bank cashier’s check, credit card, etc.) from any Customer who has previously tendered a returned check or payment, or gives the indication that funds are not sufficient to cover any check tendered.


8. DISCONNECTION OF ELECTRIC SERVICE 8.1 A Customer who requests that the District disconnect Electric Service or close their account must

give the District no less than three (3) business days notice in advance of the effective date. The outgoing Customer shall be liable for all services and charges rendered up to the date the Electric Service is disconnected.

8.2 Refunds of closing balances or deposits shall be transferred to any active accounts held by the Customer if one exists. If the Customer does not have an active account with the District, the closing balance or deposit will be forwarded to the Customer’s last know mailing address as provided by the Customer. Any funds unclaimed by the Customer 120 days after termination of Electric Services shall be submitted to the State of Oregon as unclaimed property.

8.3 The District shall make every reasonable attempt to secure payment of all delinquent accounts receivable to protect others customers and the District.

8.4 The District, at its discretion, may disconnect Electric Service for any of the following non-exclusive list of reasons:


8.4.1 Failure of the Customer to pay all charges for Electric Service when due.

8.4.2 The District has not entered into an agreement or received application for Electric Service.

8.4.3 Apparent evidence of fraud, tampering or power diversion which violates District Policy, national, state or appropriate local codes affecting utility service, or to protect health, life or property.

8.4.4 Tampering with, removing or reconnecting a District meter, line or equipment.

8.4.5 The Customer owned facilities or equipment are deemed unsafe, or are in violation of state, municipal or NESC codes.

8.4.6 The Customer does not cooperate in providing the District reasonable access to a meter or other District owned Electric Service equipment used to provide service to customers.

8.4.7 When the District has determined that the Customer is being served at an inappropriate level of service for the equipment installed or for the Customer’s current Electric Service usage.

8.4.8 Failure to meet obligations to the District through Special Contract. The District may cancel or terminate any Special Contract or Agreement under which Electric Service is being supplied, or disconnect Electric Service, with or without cancellation of the Special Contract or agreement. Such option may be exercised by the District at any time a default occurs, and neither delay nor omission on the part of the District to exercise such option shall be deemed a waiver of its rights as to any future default. A seven-day written notice of non-payment on such contracts prior to disconnection will be provided.

8.4.9 Failure to comply with requirements listed in the Operations and Engineering Policy. 8.5 Seven days written notice will generally be provided before disconnecting Electric Service except in

cases of emergency, unauthorized use of Electric Service, theft or fraud or unsafe conditions. The District will attempt to make personal contact before service is disconnected. If personal contact is not made, notice of the disconnection will be left at the Customer location by door hanger.

8.6 Service charges established by the District may be added to a Customer's account to cover the costs of collection efforts in the processing of returned checks, hand-delivered notices by field representatives, and/or the disconnection/ reconnection of Electric Service.

8.7 If the Customer’s account becomes past due, the utility reserves the right to install an advanced meter at the location, and all disconnect policies will apply. Customers who have been disconnected for non-payment in the last 12 months shall not be allowed to opt-out of the use of the District’s advanced metering technology.

8.8 Electric Service will not be terminated where it is verified or certified by a licensed physician that life-support equipment is in service or where it is verified that termination of Electric Service would be especially dangerous to the physical health of an occupant of the household. Such written notice should be resubmitted to the District every 30 days to remain valid. Restrictive devices may


be used to control the amount of electric current available at any given time. 8.9 In the case of emergency situations, it may be necessary for the District to temporarily disconnect

or connect Electric Service to protect health, life or property. The District may, at its own discretion, take any action it deems necessary to provide safe and reliable service or to protect EPUD’s electric distribution system, its Customers and the health and safety of the public.

9. RECONNECTION OF ELECTRIC SERVICE 9.1 Electric Service reconnections will be conducted during normal business hours, excluding District-

observed holidays. Customers requesting Electric Service reconnection on Fridays, Saturdays, Sundays, District-observed holidays or after normal business hours may be accommodated at the discretion of the District; however, the Customer may be charged after-hours rates according to Rate Schedule 88M – Miscellaneous Service Charges. If the District is unable to accommodate the Customer request, the Electric Service will be reconnected the next available business day.

9.2 The District does not guarantee reconnection of Electric Service on the same day on which District approval for reconnection is made. However, every reasonable effort will be made to do so.

9.3 Electric Service disconnected for non-payment shall not be reconnected until payment in full has been received by the District, or arrangements satisfactory to the District have been made to pay all past due amounts, including any current charges, and any reconnection fees and late fees as applicable under Rate Schedule 88M – Miscellaneous Service Charges.

9.4 Electric Service disconnected for non-payment shall not be reconnected in the name of any relative, friend or member of the family when the Customer of record is still living at the subject service address unless all charges have been paid in full.

9.5 The District reserves the right to require a deposit upon reconnection. 9.6 If Electric Service has been disconnected by the District for any national, state or local code

violation, fraud, failure to pay all charges for Electric Service or for violation of any part of the District’s Policies and Procedures, the service will not be resumed until the situation requiring such action has been corrected to the satisfaction of the District or the governmental agency having jurisdiction.

9.7 Customer is responsible for any changes, repairs, maintenance, upgrades or modifications to the Customer’s electric wiring, facilities or Customer owned equipment (on Customer’s side of the Point of Delivery) that may be necessary for District to provide safe and reliable service at the Customer’s sole expense.

9.8 If the Electric Service has been disconnected by the District and reconnected without the District’s authorization, the District may disconnect the service from the District’s distribution system. Under these circumstances, services may not be reconnected until all bills, service charges, disconnection and reconnection costs, and deposits have been paid in full, and until the District is satisfied similar incidents will not recur. In addition to the rights and remedies stated here, or as may be found elsewhere in state and local laws, the District reserves the rights to pursue legal recourse, including recovery of any damage to District property, against the parties involved in, or benefiting from, such illegal acts.


10. ACCOUNT COLLECTION 10.1 A Customer who questions or disputes a bill shall be encouraged to contact the District before

collection efforts become necessary. 10.2 Final bills, Special Contracts, and miscellaneous accounts remaining unpaid for 30 days beyond the

due date are subject to all applicable remedies including, without limitation, late fees, collection agency referral or other available legal remedies available to the District.

10.3 As provided by ORS 697.105, collection agency fees are payable by the Customer.

11. APPEALS 11.1 A Customer who questions or disputes their Electric Service, a bill or the payment thereof, or who

is unable to pay the full amount when due, shall have the right to, and be encouraged to, have an informal conference with a District Employee. The District employee will have the authority to make deferred payment arrangements under appropriate circumstances, in the District’s sole discretion.

11.2 The informal conference may be conducted by telephone or in the District’s offices during normal business hours, excluding District-observed holidays.

11.3 A Customer who disagrees with the billing and collection decisions of designated District Employees after informal conferences shall have the further right to appeal to the General Manager (or designee) to hear all formal appeals to billing decisions and render all final decisions.

11.4 Appeals to the General Manager resulting from an informal conference must be submitted, together with the reasons thereof, within five (5) business days following the Employee’s decision. Appeals, preferably in writing, shall be addressed to the attention of the General Manager, Emerald People’s Utility District, 33733 Seavey Loop Road, Eugene OR 97405, or may be submitted by telephone. The Customer must identify the amount of the disputed portion of the billing at the time of the appeal. Collection efforts by the District for that amount will be suspended until the General Manager’s (or designee’s) decision is issued.

11.5 The General Manager will conduct the appeal hearing at the District office during regular business hours, excluding District-observed holidays, within twenty (20) business days following appeal of the informal conference decision, or as soon as practical.

11.6 The Customer or Customer’s representative shall open the hearing with a statement of the Customer’s position in the matter and a presentation of evidence in support of the appeal. A District representative shall then provide the District’s position and presentation of the evidence.

11.7 The General Manager (or designee) shall provide the Customer with a written decision within ten (10) business days following the appeal hearing. The written decision shall be hand-delivered or sent to the Customer by certified mail. The written decision shall contain a summary of the Customer’s appeal and supporting evidence, a summary of District collection efforts, and the General Manager’s (or designee’s) decision.

11.8 If the Customer refuses to accept delivery of the written decision or fails to make whatever payments are required by the General Manager’s (or designee’s) decision, the District may proceed with immediate collection efforts without further notice including, but not limited to,


disconnection of the Customer’s Electric Service. 11.9 Aggrieved Customers may bring any dispute directly to the Board at a regularly scheduled Board

meeting after having exhausted their appeal rights under this section. The General Manager may waive the procedure at a Customer’s request and allow the Customer to make an appeal directly to the Board, in the General Manager’s sole discretion.

11.10 The District shall make a reasonable effort to resolve Customer Disputes fairly, including the timely resolution of complaints and disputes. The undisputed portion of the bill must be paid no later than 15 days from the date of billing. Deferred payment arrangements on the undisputed portion of the bill may not be extended to Customers who have failed to comply with previous payment arrangements or who have had repeated collection problems with the District prior to the disputed billing.

12. METERING SERVICE 12.1 The District, in its sole discretion, will determine the type of meter to be installed on the

Customer’s premises. 12.2 If a Customer chooses to opt-out of the use of the District’s advanced metering technology, the

District will replace the meter with a non-transmitting meter of its choice. This option is limited to Residential Customers only. The District, in its sole discretion, will replace the non-transmitting meter with advanced metering technology after the Customer moves or the service is transferred into another name.

12.3 For Rate Schedule purposes, all meters serving the Customer's premises will be considered separately and the readings not combined except where the District, for its own convenience or operating necessity, elects to install two or more meters to serve the Customer's premises. Further, common-use facilities associated with individually metered multi-family occupancies will be served on the Commercial Type Service Rate Schedule and should be in the name of the owner. This policy includes such uses as common laundry facilities, common water heater(s), common lighting or common water meter serving two (2) or more residential Living Units.

12.4 When additional metering is installed at the Customer's option to serve a Customer's premises, each additional meter shall be served under the same rates as the existing meter if such meter serves Load that is an integral part of the Customer's existing use and is of the same phase and voltage. This policy includes such uses as swimming pools, home hobby shops, barns, etc., but does not include commercial irrigation uses. Each meter shall be billed separately, including any charges applicable to the Customer’s Electric Service.

12.5 Depending on the configuration of the District’s distribution system, Primary Metered Electric Service may be available to eligible Customers whose load shall be served through a single Meter at one Point of Delivery. All Primary Metered service shall be at a voltage and location determined by the District. In this case, the Customer shall provide, own, install and maintain all necessary transformers, cutouts, protection equipment, and all distribution equipment beyond the Primary Metered Point of Delivery. The District will furnish and install all distribution facilities to the Primary Metered Point of Delivery including the primary potential and current transformers.


12.6 To minimize any negative impacts to reliable Electric Service for other District Customers, Primary Metered accounts may be subject to periodic review of their load relative to their available capacity. At the discretion of the District, any costs associated with the installation of additional facilities to provide Electric Service to the Primary Metered facility or to maintain reliable Electric Service for the other District Customers are the responsibility of the Customer at the facility.

12.7 The District reserves the right to make necessary periodic tests and inspections on its Meters to ensure a high standard of accuracy. Additional meter accuracy tests may be requested by the Customer and should be performed in their presence, if possible. If the meter registers are found to deviate plus or minus two (2) percent, the District will pay for the testing and will adjust the Customer's billing for the known or assumed period of error not to exceed two (2) years.

12.8 Access at all times to the premises of the Customer for the purpose of reading meters, testing, repairing, replacing, maintaining, removing or exchanging any or all equipment belonging to the District, shall be deemed granted during the time Electric Service is accepted by the Customer. District metering equipment shall not be enclosed or obstructed by fences, landscaping, walls or other structures in any manner that prohibits access to the District metering equipment, whether intended to secure the Customer’s property or premises, or otherwise. Equipment or devices which interfere or obstruct the District’s ability to communicate with its metering equipment are strictly prohibited. The District shall have the right to refuse to provide Electric Service to any premises where such conditions exist. Service may also be disconnected under Section 8 if the Customer does not remove, upon request by the District, any obstructions that are discovered by the District after Electric Service has been connected.

12.9 Unrestrained animals present a serious safety threat to District Employees. Should a Customer's animal inhibit or prohibit an Employee's access to the premises or interfere in any way with a District employee’s work, the Customer shall be notified of the problem and a mutually agreeable, permanent solution must be arranged promptly. If a Customer does not comply with such a request, the District may disconnect Electric Service without further notice.

13. METER TAMPERING 13.1 It is prohibited for any Customer or their agents to directly or indirectly tamper, alter, connect,

maintain, repair, replace, remove or disconnect any District meters, lines, poles, equipment or services. The District reserves all rights under the law to seek recovery of any and all damages and lost revenues from such activities, and will report any such activities to the proper authorities for possible prosecution.

13.2 If it is determined that electricity has been diverted around a District meter, or when the meter, metering equipment or any service equipment is tampered with, malfunctioned or affected so that the meter will not measure and record the full amount of electricity, the Customer served by such facilities will be presumed to be responsible for payment of all electricity which has been diverted. The District will determine the past due amount by looking a historical or current usage as appropriate, in the District’s sole discretion. The District may seek recovery of past due amounts for up to six (6) years from the date of discovery.


13.3 Anyone who in any way directly or indirectly damages or alters District property, facilities or equipment, including tampering or diversion of any Energy Services, may be prosecuted and/or charged for replacement, loss of revenue, investigative, and administrative costs, as well as being subject to fees according to Rate Schedule 88M – Miscellaneous Service Charges.

13.4 The District shall have the authority to bill for late fees and interest charges applied to the value of diverted power or unbilled service. Late fees and interest will be charged at the current rate being applied to delinquent accounts as established in Section 8 of the Customer Service Policy and Procedures.

13.5 Electric Service will not be restored until the meter base is inspected by an electrical inspector or a licensed and bonded electrical contractor. Written proof must be submitted to the District by the electrical inspector or a licensed and bonded electrical contractor including a statement that they have inspected the service and it is safe to be reconnected.

13.6 The findings of each case may be referred to proper authorities for possible prosecution.

14. RESALE OF ELECTRIC SERVICES 14.1 The Rate Schedules cover the sale of electricity for the sole and exclusive use of the Customer. The

Customer shall not resell Electric Services supplied by the District without written permission. The District, in its sole discretion, may give written permission for resale in discrete situations, such as a mobile home park, so long as Customer separately meters and bills tenants at the District’s regular rate for the same type of service described in the applicable rate schedule.

15. MISCELLANEOUS SERVICE CHARGES 15.1 Miscellaneous Service Charges are for special costs, such as Collection Charges, Returned Check

Charges, Connect Fees, and Temporary Service Charges. 15.2 For more information, see the District’s Rate Schedule 88M – Miscellaneous Service Charges.

16. NEW LARGE LOADS 16.1 New Large Loads (“NLL”) have the potential to impact the District’s cost to serve all its customers

and it’s the District’s intent to minimize this impact on existing customers. To this end, this section addresses the required infrastructure and the ongoing maintenance to serve NLL and the associated Rate Schedule treatment of NLL.


16.2 A NLL is defined as any incremental customer load in the District’s service territory, whether associated with a new facility, existing facility, or expansion of an existing facility that meets the following criteria:

16.2.1 The load is expected to generate a demand reading of 1 MW or greater

16.2.2 The load had not generated a demand reading of 1 MW or greater on the District’s system by October 1, 2013

16.2.3 The load does not qualify for EPUD Rate Schedule 49X (over 9.9 aMW of usage) 16.3 The District will determine, at its sole discretion, what constitutes a NLL under this definition.

Factors that will be considered include whether the load is operated by a single customer, whether the load is at a single location, whether separate portions of the load are interdependent, whether the load is measured through one or several meters, whether the load site has undergone a change in ownership, the load history at the site, and any other information the District determines to be relevant.

16.4 NLL will be charged according to a Rate Schedule separate from existing industrial customer Rate Schedules. This Rate Schedule may be shared by multiple NLL customers or may be unique to a single NLL customer. The Rate Schedule will consist of a basic (customer) charge, demand charge, distribution charge, and energy charge. The basic charge, demand charge, and distribution charge will be based on actual cost of service, adjusted periodically as needed according to cost of service studies and to account for the District’s revenue requirements.

16.5 The energy charge will also be based on cost of service, with the understanding that customer load on the District’s system as of October 1, 2013 will be given priority access to the District’s allocation of BPA “Tier 1” power. Any Tier 1 power that remains after consumption by these customers may be allocated to NLL customers at the District’s sole discretion.

16.6 The energy rate within a NLL Rate Schedule will be calculated as a melded rate based on:

16.6.1 The cost of the District’s existing Tier 1 power, if made available.

16.6.2 The cost of any required non-federal resources or BPA “Tier 2” power. 16.7 The energy charge will be updated at least once per year to reflect current costs of power as well

as any share of Tier 1 BPA power made available to NLL customers. 16.8 When additional power resources are required to serve a NLL, the District will work with the

customer to procure resources that align with the customer’s goals and objectives. In all cases, however, NLL customers will first consume any assigned portion of the District’s existing surplus non-federal or Tier 2 power.

16.9 Any non-federal or BPA Tier 2 power acquired by the District specifically to serve a NLL customer will be provided on a take-or-pay basis. The cost of all such power will be paid for over time by the NLL customer through its Rate Schedule or by way of direct payment if the load is not operating for any reason.


16.10 Consistent with the District’s relevant policies, any infrastructure upgrades to the District’s distribution system required to provide service to a NLL will be the responsibility of the NLL Customer.

16.11 The District will maintain its distribution system according to prudent utility practices in order to ensure ongoing service to the NLL. However, the District reserves the right to pass through any costs incurred that are driven solely by a NLL customer.

17. OPERATIONS AND ENGINEERING POLICY 17.1 The Operations and Engineering Policy enumerates the practices pertaining to the operation and

maintenance of the District’s facilities, including right of way maintenance, the inspection, maintenance, and replacement of District facilities, and guidelines for customer equipment to ensure proper protection and avoid system interference.

17.2 The Operations and Engineering Policy also provides a means to serve new and/or increased electrical Loads at minimal cost and rate impact to the District and its existing Customers.

17.3 For more information, see the District’s Operations and Engineering Policy.

18. NET METERING AND GENERATION INTERCONNECTION POLICY 18.1 The District may enter into a Net Metering and Interconnection Agreement with a Customer who

owns and operates a qualified Net Metering Facility, in District’s sole discretion. 18.2 The Generation Interconnection Policy sets forth the requirements and conditions that non-utility-

owned electric generation facilities must meet in order to be connected for parallel operation with the electrical system of the District.

18.3 For more information, see the District’s Net Metering Policy and Generation and Interconnection Policy.

19. RESPONSIBILITY FOR GOVERNMENT IMPOSED FEES 19.1 The amount of any and all revenue, kilowatt-hour or other form of tax or fee imposed by any

governmental authority upon the District or upon its property, revenue or income may be apportioned by the District to the Customers in which such tax or fee may be effective and among the various classes of service furnished therein. Such amounts shall constitute an additional charge to the Electric Service billings under any Rate Schedule or Special Contract. All such apportionments will be charged only when in conformance with existing applicable laws.

19.2 Each Customer shall be responsible for their portion of any Franchise Fees or other imposed fees levied on and paid by the District as determined by the Board. The District shall determine the level and amount of contribution to the payment of Franchise Fees that each Customer shall provide.

19.3 The additional charges discussed in the Section shall be either included in the District’s base rate and/or itemized on the Customer's bill as determined by the District.

EMERALD PEOPLE’S UTILITY DISTRICT BOARD OF …Sep 11, 2018 · Directors: Ron Davis, Brandon...

Documents

Transcript of EMERALD PEOPLE’S UTILITY DISTRICT BOARD OF …Sep 11, 2018 · Directors: Ron Davis, Brandon...