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6.1a ERMUSR 05-08-2018 Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Troy Adams, P.E.—General Manager MEETING DATE: AGENDA ITEM NUMBER: May 8, 2018 6.1a SUBJECT: Staff Update ACTION REQUESTED: None DISCUSSION: • The Board of Directors of the Minnesota Municipal Power Agency(MMPA) met on April 24, 2018 at the Faribault Energy Park Plant in Faribault,Minnesota. Both Commissioner Al Nadeau and I attended this meeting. At the meeting,the Board approved MMPA's 2017 audit report. The report can be found on MMPA's website at http://www.mmpa.org/about/financials-reports/ The Board approved the expansion of the Energy Education high school pilot program to all member communities for the 2018-2019 academic year. The Board also received an update about the status of the Hometown Solar projects in Arlington, Shakopee, and Chaska. Participation in MMPA's residential Clean Energy Choice program increased over March, with seven different MMPA members having new customer signups during the month. Customer penetration of MMPA's Clean Energy Choice program for residential customers increased to 2.7%. • The Minnesota Municipal Utilities Association (MMUA)held their annual Legislative Rally on April 11 — 12. The event was attended by over 50 municipal utility leaders from 35 different utilities. The key messages and talking points these utility leaders took to the Capitol included: preserve the regulatory compact regarding the utility business model and service territory rights,preserve local control for municipal utilities, develop sustainable Conservation Improvement Program (CIP)reform, and benefits of the municipal utility business model. Commissioner Westgaard, Tom Sagstetter, and I were able to meet with both Representative Zerwas and Senator Kiffmeyer. In addition to discussing the talking points, gratitude was extended for Representative Zerwas' and Senator Kiffmeyer's roles in passing legislation to expand the ERMU Commission from three members to five. Page 1 of 3 81 In addition to the key messages delivered to the Capitol, MMUA hosted a legislative reception. The rally also included conference sessions on: MMUA new financing program; the Minnesota Chamber's 2018 Energy Policy; and updates from the Center for Energy&Environment regarding the 2018 CIP potential study and strategic electrification. Following the rally and conference,the MMUA board of directors met. During this meeting the board discussed and/or took action on the following items: the new MMUA finance program; government relations items; PUC railroad crossing decision discussion; the Municipal Utility Action Fund (MUAF)report;the American Public Power Association (APPA)Public Power Forward initiative; MMUA strategic planning goals updates; Safety&Training updates; Engineering and Policy updates; and upcoming board planning session. I will finish my second term and roll off the board at the MMUA summer meeting this August. • ERMU, Great River Energy(GRE), and MMPA scheduled a conference call regarding power provider migration for Monday May 7. • On April 16 a joint MMUA and Minnesota Rural Electric Association(MREA) workgroup meeting was held regarding the CIP. I am one of approximately one dozen members of this workgroup. The work product from this group was used for talking points for the MREA legislative rally and the MMUA legislative Rally. The group will continue to develop work product over the coming year. • Customer Service Manager Jennie Nelson and I have conducted interviews for the vacant Customer Service Representative (CSR)position. An offer was made and accepted with a May 21 start date. The new CSR will be introduced to the Commission in June if schedules allow. • I attended the 2018 APPA Lineworkers Rodeo and Engineering & Operations Conference in Raleigh,NC. During this conference,the Reliable Public Power Provider (RP3)Panel met. I am the reliability representative on this national panel of 18 members. While at this conference I was also a speaker for one of the sessions. I made a presentation on our electric vehicle initiative. During the conference I also attended sessions on: Legislative and regulatory overview; GIS mapping and automation; battery storage; information technology (IT)vs operational technology (OT); generation interconnection to the grid; operational resilience;reliability benchmarking; and a roundtable discussion on customer service vs employee safety. The keynote speaker for the conference closing session was Army Ranger First Sergeant Matt Eversmann. His inspiring story of resilience, survival, and leadership through adversity became the story for the movie Black Hawk Down. He related his experiences to the public power industry. This conference creates a great opportunity to network and research issues. I intentionally connected with utility leaders regarding issues that ERMU is facing. Much discussion occurred around cyber security and IT,Advanced Metering Infrastructure (AMI) and Automatic Meter Reading(AMR), succession planning, and disaster planning and drills. Page 2 of 3 82 As usual, I've come home with a long list of items to research and best practices to implement. • Our cyber security consultant FRSecure is holding weekly webinar meeting with members of the Information Security Committee to develop physical and cyber security policy. The work done during the webinars will develop into draft policy that the full Committee will review. Identical, or substantially similar,policy will then be considered for formal adoption/implementation by the City and ERMU. • Per the Governance Policy G.2g1 Wage &Benefits Committee Charter and consistent with Governance Policy G.2g Commission Committees,the committee shall meet on a quarterly basis. Staff will be coordinating a meeting for late April or early May. The primary focus for this meeting will be routine review of staffing levels,personnel projections, and succession planning. Additionally, we will discuss vacant budgeted positions. This meeting has been scheduled for Wednesday, May 30. • Per the Governance Policy G.3e General Manager Performance Planning and Evaluation and consistent with Governance Policy G.3d Monitoring Performance of the General Manager,the Commission conducts a formal evolution of the General Manager during the second quarter of each fiscal year. This is scheduled to be held during the June Commission Meeting currently scheduled for June 12. • I was asked by the Elk River Chamber of Commerce to be their key speaker for the Leadership Elk River graduation lunch on Friday May 18. I will be speaking about leadership. Page 3 of 3 83