Electric City Power, Incorporated

JOURNAL OF BOARD PROCEEDINGS

May 4, 2009

Electric City Power, Incorporated (ECP): Regular meeting of the Board of Directors
Great Falls Civic Center, Commission Chambers Gibson Room

CALL TO ORDER: 5:30 PM

ROLL CALL: Directors present: Chairman George Golie, Vice-Chairman Bill Ryan, Lee Ebeling, Bob Pancich and John Gilbert. Also present were the ECP Executive Director, Assistant City Manager, City Attorney and the Fiscal Services Operations Supervisor.

I.  EXECUTIVE DIRECTOR REPORTS

Executive Director Coleen Balzarini updated the Board on the following:

Ms. Balzarini handed out pages 64 and 65, which were missing in the Board packets.

Year to Date Financials. Ms Balzarini reviewed the balance sheet with the Board.

Projected Financials. John Gilbert asked Ms Balzarini when the 2010 projections would be available. She responded that she is waiting until next month to have additional data under the transition rate to review. Mr. Gilbert then asked where the $250/month board meeting credit was included in the financials. Ms Balzarini stated it is included in the Other Non-operating Revenues (Expenses).

Miscellaneous Reports. Request for Proposals – Energy Consultant: Ms Balzarini stated the request for proposals had been sent out. The deadline for submission is 5/15/2009. John Gilbert asked who would make up the selection committee and what funding source would be used to pay for the consultant. Ms. Balzarini stated the committee would probably be made up of City Commissioners, City Staff, and possibly ECP Board Members, which is a similar format used by the City when undergoing a consultant selection process. The details were still being sorted out. Ms Balzarini stated that this was a request of the City Commission so it would be reasonable for the City to pay for it, not ECP. There are some funds available in the Fiscal Services budget, but no decision has been made.

PSC – Petition of ECP for Certification of an Eligible Renewable Resource: Ms Balzarini informed the Board of the requirement for ECP to have certified renewable energy resources as part of its supply portfolio. [This requirement is to comply with the Montana Renewable Power Production & Rural Economic Development Act]. This petition asks the Montana PSC to certify the co-generation facility located at the Wastewater Treatment Plant as an eligible renewable resource. Southern Montana Electric purchases this power from the City and ECP purchases the power from Southern, the terms of which are established in the Wholesale Power Contract between Southern Montana Electric & the City of Great Falls. John Gilbert made a motion to recommend the submission of the Petition to the PSC, and Lee Ebeling seconded. The motion passed 5-0. Chairman Golie asked if there were any inquiries from the public.

Neil Taylor, 3417 4th Avenue South, inquired why the energy is being sold back to the City, and wouldn’t it be cheaper to go direct? Ms Balzarini stated that ECP has an all requirements contract with Southern Montana Electric and is required to buy all power through them. Mr. Gilbert responded that we have to look at the entire electric picture. All City services receive power from ECP and therefore everyone benefits. He also stated that the basic rate for power from ECP is less than charged by NWE. Mr. Pancich stated any cost savings to the City of Great Falls benefits all.

Richard Liebert, 289 Boston Coulee Road, Provided the board with a brochure from the Montana Renewable Energy Association. He stated that a neighboring Hutterite Colony was installing a wind farm.

Stuart Lewin, 615 3rd Avenue North, stated he thought this law was a good start and supports public power, but does not think the WWTP Co-Gen facility will qualify.

Ron Gessaman, 1006 36th Avenue NE, questioned if the City has an investment in the proposed wind turbines at the Highwood site.

City of Great Falls, et al. v PSC (Cause No. CDV-2009-127) – Defendant NWE’s Answer and Amended Answer to Complaint and Petition for Judicial Review: Ms Balzarini stated that NWE had recently responded to the lawsuit, and the case was now in front of a judge in Helena for review and scheduling.

II.  NEW BUSINESS

Accept Board Meeting Minutes (As Amended) of April 6, 2009. Bob Pancich moved, seconded by John Gilbert, to approve the April 6, 2009, Board meeting minutes. The last sentence of paragraph five, page six will be corrected to “The pilot program customers actually paid more than what was charged by Southern Montana.”

Motion carried 3-0 with Chairman Golie and Lee Ebeling abstaining.

III.  BOARD MEMBER REPORTS - None.

IV.  COMMUNICATIONS

Public Comment.

Richard Liebert, 289 Boston Coulee Road, commended Public Works on the EWaste program and suggested it become more frequent. Mr. Liebert questioned the 4/25/09 Great Falls Tribune article concerning the by-laws and Ms Balzarini as a trustee to the Southern Montana Electric Board of Directors. Ms Balzarini responded that she was appointed by the City Manager to fill the position. Mr. Leibert questioned why Southern is applying for the natural gas permit while SME is the developer..

Stuart Lewin, 615 3rd Avenue North, suggested the Board read the application for the Air Quality Permit and raised the question of what relationship it will have with the assets & liabilities of ECP and how this Board feels about what SME is doing. He stated the ECP Board needs to approve/disapprove/comment on the statements made in the air quality permit. Mr. Lewin questioned the funds supposedly given to the former City Manager from SME as a board member. John Gilbert stated he had reviewed the billing records from SME to ECP and had verified that ECP had received the credit on each billing and not the former City Manager. Mr. Lewin stated he wants to review the checks written by SME.

Aart Dolman, 3016 Central Avenue, stated he reviewed the 990 form for Southern for 2005. He stated he intended to contact the IRS regarding information in the 990. He stated he felt that it was risky to go with a gas plant.

Kathy Gessaman, 1006 36th Avenue NE, commented on the feasibility of building the gas plant and continuing with the coal plant.

Ron Gessaman, 1006 36th Avenue NE, presented a copy of the Northwestern Energy Monthly Electric Supply Tracker from the April board packet. He stated that this presented an incomplete tariff, as the deferred charged is not included. He asked that if Ms. Balzarini is a trustee on the Southern board, this puts the City in a “shareholder” situation and therefore the citizens should have a copy of the Southern by-laws.

ADJOURN: Chairman Golie adjourned the meeting at 6:27 p.m. The next meeting is set for June 1, 2009, at 5:30 p.m. in the Gibson Room of the Great Falls Civic Center.