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A publication of the Municipal Electric Systems of Oklahoma March 2018

OKLAHOMAPUBLIC POWER

OMPA Develops "Value of a Municipal-Owned

Electric Utility – Page 3

GRDA HostsAnnual Customer

Meeting – Page 4

In This Issue

Smart Grid Expertto Kick Off MESO

Public Power Conference – Page 5

Association Says It Will Strongly Oppose TVA, PMA Grid Asset Privatization –

Page 6

(see MESO TOMORROW, page 7)

MESO Tomorrow, Building on Today

(see NEW TEST, page 4)

By Tom Rider

Over the last few months, we’ve presented the recollections and insights from MESO’s first three executive directors, spanning the first 35 years of our existence. As one reads through the articles, there is one continuing thread of purpose – service to our members.

As MESO moves forward, this commitment to our members will lead our thinking and actions. MESO’s mission statement clearly defines why we exist and how we will serve –

“MESO’s mission is to enhance our members’ value to their customers through industry best-practice programs, training and services.”

So what can our members expect as we move into the next 40 years?

• Our commitment to listen to the needs, concernsand issues our members experience with thegoal of assisting them in developing effectiveresponses that benefit them and their customers.

• Offering new programs that expand into otherutility operations. MESO has long been knownfor the quality of training programs we developand host. Our members are asking us to do thesame for water, wastewater, natural gas andother municipal utilities. Of course, this won’thappen overnight. It begins with having the rightstaff to develop quality programs.

• Beginning a Safety Management Servicesprogram to assist cities and towns in developing,maintaining and enhancing a safety culture forall employees. We recognize that the greatest

Effective April 1, 2018, participants will be required to successfully pass a 100-question comprehensive exam to complete the MESO Apprentice Program.

“We are always working to improve our Apprentice Program,” said Tom Dougherty, MESO Director of Job Training and Safety. “Our goal is to provide a program that ensures participants are exposed to a comprehensive curriculum required to become a journeyman-level lineworker.

“Each year of the Apprentice program, participants are required to learn and understand key concepts and processes that a journeyman-level lineworker needs to know to be successful on the job,” Dougherty added.

New Comprehensive Test Required for Completion of MESO Apprentice Program

To pass the exam and receive the MESO Journeyman Certificate, the individual must score 85 or higher on the exam. Successful completion of the exam will provide the participant's supervisor and utility a baseline of the individual's subject knowledge and retention.

The questions on this exam will cover material the participant has been exposed to throughout the four-year program. These questions will include four specific questions that address detailed wiring diagrams of four transformer banks.

Between now and April 1, 2018, utilities and/or supervisors may request that their fourth

MESO March 2018 Newsletter

MESO BOARD OF DIRECTORS & STAFF

PresidentMike Doublehead, Tahlequah

President-ElectBill Bruce, Pawhuska

Vice PresidentDave Slezicky, Kingfi sher

Secretary / TreasurerJeremy Frazier, Cushing

DirectorsDan Blankenship, Stillwater

Dwayne Elam, WagonerPhil Johnston, Ponca City

Gary Pruett, PryorDean Sherrick, EdmondKeith Skelton, SallisawDavid Yeager, Duncan

Ex-Offi cio MembersDrake Rice, OMPA

Nathan Reese, GRDA

General Manager Tom Rider

Director of Administration & Finance

Deborah Gonzales

Administrative AssistantsMichelle Danner

Nita LaBlue

Director of Communications& Professional Development

Jeff Kaufmann

Director of Training & SafetyTom Dougherty

Training and Safety InstructorsRay Armstrong

Richard O'Connor

MESO OFFICE308 N.E. 27th Street

Oklahoma City, OK 73105-2717(405)528-7564 or (800) 636-MESO

(405)524-5095 FAXwww.meso.org

UPCOMING MESO & AMERICAN PUBLIC POWER EVENTS

March 14, 2018Tornado Preparedness WorkshopOklahoma City, Oklahoma

April 22 – 24, 20182018 MESO Public Power ConferenceTulsa, Oklahoma

April 27 – 28, 2018APPA Lineworkers RodeoRaleigh/Wake Forest, North Carolina

June 15 – 20, 2018APPA National ConferenceNew Orleans, Louisiana

ON-GOING PROGRAMS:MESO Electric Supervisor Development (ESD) Sessions• Tuesday, April 3, 2018• Tuesday, June 5, 2018

• Tuesday, August 7, 2018• Tuesday, October 2, 2018• Tuesday, December 4, 2018MESO Training Center,Oklahoma City

MESO Regional Professional Development Sessions for OMPA• April 5, 2018, Altus• June 7, 2018, Waynoka• August 9, 2018, Okeene• December 6, 2018

OMPA Headquarters, Edmond

2017-2018 Supervisor Course • March 13, 2018• April 17, 2018• May 8, 2018• June 12, 2018MESO Training Center,Oklahoma City

SAVE THE DATE

2018 MESO Lineworkers Rodeo and Safety TrainingSeptember 19 – 20, 2018

Hosted by Stillwater Electric


Powerby Design

High-voltage transmission lines

Power distribution substations

Distribution systems

Generation

System studies

Protection and control relaying

Route-selection studies

Environmental and permitting

Surveying and property acquisition

For more information contact Matt Robinson

at [email protected]

Exceeding Expectations GarverUSA.com

Garver customizes energy services to meet client standards

OMPA Develops "Value of a Municipal-Owned Electric Utility" for Members

Staff for the Oklahoma Municipal Power Authority have been assembling and presenting reports that detail the “Value of a Municipal-Owned Electric Utility” for individual OMPA members.

The projects are part of an overall effort by the Authority and its members to promote the value of Public Power. A committee of member representatives was formed last year and has been working with OMPA staff and a chosen marketing consultant to craft a promotional campaign that can be personalized by each member. It is set to be rolled out later this year.

A key part of the municipal reports is the numbers-to-numbers comparison between municipal-served customers and those served by other retail providers, taking into account the rates charged, revenues for the city and the bottom line of value gained by the city or town for its ownership.

Municipal-owned utilities benefit their community with significant transfers to the general fund, however,

there are also other common tangible benefits like donated electricity, donated labor and shared equipment. There are also intangible benefits like local governance, local customer service, supplies purchased locally and access to tax-exempt financing.

Municipal utilities also commonly have favorable electric reliability scores, as their crews are stationed within their communities and are able to respond quickly. The reports use recorded System Average Interruption Duration Index (SAIDI) and Customer Average Interruption Duration Index (CAIDI) scores for a comparison between the municipal utility and other retail power providers.

OMPA has completed two reports for its members and is working on several others with plans to complete them in the coming months. OMPA members who are interested in such a report for their municipal utility should contact someone with the Member Services department.


GRDA Hosts Annual Customer MeetingReviewing 2017, discussing future projects

and current issues, and just keeping the lines of communication open.

Those were the objectives for the Grand River Dam Authority in mid-February when it continued its tradition of annual customer meetings. On Tuesday, February 20 GRDA hosted its wholesale customers, including representative from its Oklahoma municipal customer communities for a day of updates and information sharing at the Tulsa Renaissance Hotel.

Participants heard presentations from GRDA staff including a year in review from GRDA President/CEO Dan Sullivan as well as staff updates on GRDA generation, transmission construction projects and the financial forecast. A special meeting for the municipal customer group also focused on solar and distributed generation.

Also during the meeting, GRDA updated customers on the ongoing effort to relicense the Pensacola (Dam) Project with the Federal Energy Regulatory Commission (FERC). This multi-year effort is just getting underway, with the new license intended to replace the existing 30-year license, which expires in March 2022. As part of this effort, GRDA produced a video to provide more detail about the relicensing process. This “GRDA Overview” video is available for viewing on GRDA’s YouTube channel.

On Wednesday, February 21, GRDA also met with its retail customer group at the RSU-Pryor Campus in the MidAmerica Industrial Park (MAIP). Today, GRDA’s primary customer base includes 15 Oklahoma communities, as well as Siloam Springs, Arkansas and Coffeyville, Kansas. It also includes the industries of MAIP and several other off-system customers in Oklahoma and across the four-state region.

At no cost to Oklahoma taxpayers, the electricity GRDA produces to meet these customer needs continues to power progress, attract new business and industry, broaden the state’s tax base and create more jobs in Oklahoma. In fact, according to numbers from an Oklahoma Department of Commerce report on GRDA’s economic impact, the Authority facilitates $840 to $850 million in economic impact in Oklahoma each year. At the same time, GRDA’s existence helps to support 7,000 jobs across Oklahoma.

Of course, that kind of economic development success story can only be written when long-term, beneficial customer relationships are in place. Regular customer meetings, like the series held in mid-February, help to strengthen those relationships and keep everyone on the same page, so that future challenges and opportunities can be discussed, questioned can be answered and plans for the future can be made.

GRDA Chief Engineer Jeff Tullis gives wholesale customers an update on GRDA transmission construction projects during the 2018 Wholesale Customer Meeting on February 20, in Tulsa.

GRDA wholesale customers listen to updates from GRDA staff during the 2018 Wholesale Customer Meeting on February 20, in Tulsa.

score of 85 or higher is mandatory for recognition of course completion.

Questions about the new exam, the MESO Apprentice Program, or any MESO Job Training and Safety Program may be directed to Dougherty at [email protected].

New Test(continued from page 1)year apprentices who have completed all other requirements for the certificate take the exam. After April 1, successfully completing the exam with a


MESO Affi liate/ Associate

MembersA2V Partners, LLC

Allegiant Utility / Sooner MeterAllgeier Martin & Associates, Inc.

Altec Industries, Inc.Arkansas Electric Cooperatives, Inc.

Automated EnergyBevins Company

BurndyCaselle

CEC CorporationCIA Machinery, Inc.

Clifford Power SystemsCross Discipline Engineering, LLC.

DeloneyDemand Safety

Electric Power Systems InternationalEquipment Technology Inc.

Finley Engineering Company, Inc.Fred Oberlender & Associates

Garver, LLCGRDA

Green Equipment CompanyGridLiance GP, LLC

GuernseyHawrylak and AssociatesHoneywell Smart Energy

JELCOJones Power Products

K.D. Johnson Inc.Kriz Davis Company

Marathon Electric CompanyNational Meter and Automation, Inc.

Nimble StorageOMAGOMPA

Osmose, IncPelco Products, Inc

RepcomRope Works

Solomon CorporationStanley Consultants, Inc.

T & R Electric Supply Company, IncTechline

Terex Utilities, IncUltimate Tool and Safety

Utility Sales Agents of OKUtility Technology

WESCO Distribution

Smart Grid Expert to Kick Off MESO Public Power Conference

Smart Grid expert Steve Collier will be the opening speaker for the the 2018 MESO Public Power Conference on April 22-24 at the Renaissance Tulsa Hotel and Convention Center.

“Steve is a recognized expert on Smart Grid technology,” said Tom Rider, MESO General Manager. “I’m looking forward to hearing his discussion on the potential impact information and communications technologies may have on electric utilities and their customers.”

Collier is the Director of Smart Grid Strategies for Milsoft Utility Solutions, which develops, sells and supports an Engineering and Operations (E&O) system for electric utility planning and management. He is a frequent public speaker, as well as an author.

Billy Riggs – the conference closing speaker — has been called “The Dr. Phil of Magic," as well as a “psychologist masquerading as a comedian and magician.” He was voted one of America’s Top Five Most Entertaining Speakers in a 2014 nationwide poll of conference attendees.

The conference has added a Human Resources track this year, to go along with the usual tracks in Power Generation, Customer Service, Superintendent and Lineworker.

GRDA and OMPA join MESO as presenting partners for the 2018 MESO Public Power Conference.

The registration deadline is March 23, and registration questions may be directed to Deborah Gonzales at [email protected] or visit www. meso.org for additional information.

REGISTER TODAY

2018 MESO Public Power Conference

April 22 – 24, 2018 • Tulsa, OK

Presenting Partners:

www.meso.org


By Paul CiampoliFrom the American Public Power Association

The American Public Power Association on Feb. 12 expressed disappointment that the Fiscal Year 2019 budget request released by President Trump proposes to divest the transmission assets held by the Tennessee Valley Authority and three of the Power Marketing Administrations -- Southwestern Power Administration, Western Area Power Administration and Bonneville Power Administration.

The Association said that it will “adamantly oppose any effort by the federal government to privatize TVA and PMA assets that have been paid for by electricity customers.”

The Association also said it is disappointed to see that the FY 2019 budget request proposes to change the current cost-based rate structure for the PMAs to market-based rates.

The PMAs provide millions of Americans served by not-for-profit public power and rural electric cooperative utilities with cost-based hydroelectric power produced at federal dams, the Association noted.

PMA rates are set to cover all generation and transmission costs, as well as repayment, with

Association Says It Will Strongly Oppose TVA, PMA Grid Asset Privatization

interest, of the federal investment in these hydropower projects. None of the costs are borne by taxpayers. Similarly, TVA provides affordable electric power to more than nine million people in seven states at no cost to taxpayers, the Association said.

“Selling TVA and PMA transmission assets and/or increasing PMA rates by changing the current cost-based structure would threaten the ability of the PMAs to provide reliable, cost-based power to the approximately 1,200 public power systems and rural electric cooperatives in 33 states and the millions of customers they serve,” it went on to say in urging Congress to reject what it called “these misguided proposals.”

Trump asked Congress to give the executive branch the authority to privatize federal assets, including PMA transmission assets.

“Federal ownership of these assets can result in sub-optimal investment decisions and create risk for taxpayers,” Trump wrote in his “Legislative Outline for Rebuilding Infrastructure in America.” The outline was

By Bob MatyiFrom the American Public Power Association

The long-held dream by some of forming a municipal electric utility in Decorah, Iowa, remains alive and well after a recently released feasibility study released this week found such a move could save money for the city's nearly 8,000 residents.

Backed by the study by NewGen Strategies & Solutions, the 13-member Decorah Power board of directors soon could vote to ask the city council to hold a referendum this year on the municipalization question, Andy Johnson, a local leader in the movement and director of the Winneshiek Energy District, said Thursday. Decorah Power was formed about a year ago to pursue a possible municipally-owned utility.

"If the city votes yes in a referendum, it would authorize city government to create a utility board," he said. "Then, the city would file an application with the Iowa Utilities Board" to officially establish the muni.

The IUB would have the final say in the matter. It

Customers Could Reap Big Savings from Iowa Cityrejected a municipalization effort several years ago by a consortium of several Iowa communities.

The NewGen study estimated a local municipal utility could save customers as much as $7.5 million annually over what they are paying now to Interstate Power & Light, a subsidiary of investor-owned Alliant Energy.

"The results of the analysis conducted for this feasibility study suggest that a Decorah municipal utility could provide service to its customers for a lower average cost while providing reliable power with increased emphasis on renewable energy and local energy management systems," NewGen said.

Alliant opposes a local public power utility, however.If the Decorah Power board votes to seek a

citywide referendum, as expected, the formal request probably would be made in a couple of months, Johnson said. The NewGen team presented its findings to the city council Tuesday night.

Johnson stressed advocates are not waging an

(see GRID ASSET, page 8)

(see BIG SAVINGS, page 8)


assets for each of our members are their people. The men and women who, each day, work for the betterment of their communities. Doing so safely and correctly is critical to ongoing success.

• Developing competency training and testing forcritical skills personnel. Ensuring that criticaltasks are performed correctly over time is a keyfactor to long-term success. This new programwill guide our members’ efforts to ensuring thatexperienced personnel can continue to performrequired job skills throughout their careers.Our program’s focus is refresher training andevaluation for long-term personnel.

And all of this has come about because of the successes we’ve experienced during the last five years. These include –

• New staff who’ve joined Michelle and myself– Deborah Gonzales, Tom Dougherty, JeffKaufmann and Nita LaBlue

• The annual MESO Public Power Conferencecontinues to grow year after year, and for 2018we are adding a fifth learning track –HumanResources – to go along with the traditionaltracks: Lineworker, Superintendent, CustomerService, and Power Generation.

• Our Lineworkers Rodeo has grown from a smallone-day event to a two-day event, with safetytraining kicking off the first day. In 2017 we

had competitors from three states participate – Oklahoma, Arkansas and Missouri.

• Increasing and improving our trainingopportunities for members. We’ve increased thenumber of one- and two-day technical trainingevents geared towards improving the knowledgeand understanding of our member employees.Further, our professional development trainingcontinues to grow with more cities and theiremployees taking advantage of the opportunitiesoffered around the state.

• Continue to work closely with our public powerpartners – Oklahoma Municipal Power Authorityand the Grand River Dam Authority – to ensureour municipal voice is heard and listened to at thestate capitol. Now, more than ever, we all need tobe diligent and committed to ensuring thatOklahoma’s Public Power Story is told. And it’s astory that needs to be told to our citizens andcustomers as well as state and national officials.

MESO’s future is very bright, indeed. It is so because of the commitment of our members and their efforts to make our programs and services better and better. To continue this, we need to hear from you. Access to MESO staff is always open. Send us an email; make a call; visit with one of us when we’re in your community. We want to know how we can improve to better serve you. Forty years from now, we want our successors to be able to say, “Thank you for an association that is committed to our success as a community.”

MESO Tomorrow(continued from page 1)

As part of MESO’s ongoing efforts to expand by offering new programs into utility operations outside of electric, there is an opportunity for a new Director of Business Development.

“Our members have been asking for some time that we offer the same type of quality programs we have for electric in the areas of water, wastewater, natural gas and other municipal utilities,” said Tom Rider, MESO General Manager. “The first step is to find the right person to lead these efforts.”

This individual will be responsible for the

Help Us Grow . . . development and implementation of new programs that address industry best practices for the safe and effective operations.

“We are looking for someone with experience working with or in a municipal utility, particularly in the area of leading operational or performance improvement efforts,” Rider added.

Click here for the complete job description: Director of Business Development. For more information or to apply, contact Rider at [email protected].


submitted to Congress in connection with release of the President’s FY 2019 budget.In response to Trump’s 2019 budget proposal, TVA on Feb. 12 said that the transmission assets described in

the budget schedule include more than 16,000 miles of line paid for by the power customers of the Tennessee Valley over the past 85 years.

“The transmission system is an integral part of TVA’s power system, which has delivered power at 99.999 percent reliability for the past twenty years,” it said in a news release. “TVA is also a major reliability coordinator for large sections of the U.S. power grid, helping ensure that America’s vital energy infrastructure runs safely and reliably every day,” it said in the news release.

TVA noted that it does not receive any funds from the federal government, but rather is completely self-funded from its power revenues and the public debt markets, and TVA’s obligations are not guaranteed by the federal government. “TVA has among the lowest power rates in the country, which in combination with the high reliability of its transmission system, have led to significant economic expansion in U.S. manufacturing and other industries and businesses in the Tennessee Valley. Over the last five years, TVA has supported the creation or retention of 400,000 jobs and $48 billion in new capital investment,” TVA said.Public Power Council voices opposition

The Public Power Council on Feb. 12 stated its opposition to proposals in the budget that would divest the electricity transmission system of BPA and would also have BPA change the way it sets its power rates.

Grid Asset(continued from page 6)

"anti-Alliant campaign. We're a pro-community campaign."According to city manager Chad Bird, the state provides for four dates

in 2018 when a referendum could be held - in March, May, August and November. The latter is the regularly scheduled general election.

"The Decorah Power board is probably going to recommend that May 1 date," surmised Bird, who is staying neutral in the debate.

Most likely, the county auditor would ask the city to pay for the special election, whose cost has not yet been determined.

If voters approve a municipal utility in a referendum, the council would be authorized to officially explore the formation of a public power utility. But it would not be legally required to establish the utility, Bird said.

Johnson and other supporters believe the argument clearly is in their favor.

Aside from potentially lowering the electric bills of Decorah residents, a public power utility would give the city local control over its energy future, they say. It also could offer relief from long-term generation commitments that can cause unnecessary and expensive overhead for customers to absorb, they add.

NewGen examined three possible scenarios, including the municipal utility buying power from the market. That option produced the greatest potential savings -- $7.5 million a year.

"It looks to us like we could prioritize affordable power by keeping rates stable for quite some time," Johnson said. "We could make very significant investments in the grid to improve reliability and resilience for storms that many of our peers are making."

Decorah also could move more quickly to clean energy such as wind and/or solar power, he suggested.

The study estimated Decorah would need to spend about $2 million

Big Savings(continued from page 6)

(see BIG SAVINGS, page 10)



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“We are looking to the future, and are already working with BPA to modernize its transmission system and to take concerted action to address its cost of power,” said PPC Executive Director Scott Corwin. “The bottom line is this budget proposes to raise an extra $5 billion to $7 billion on the backs of Northwest electricity customers over the next ten years without any added benefit.”

The transmission asset proposal would help fund the federal government “by selling off a critical system that electricity consumers in the West have paid to construct and maintain,” the PPC said.

The PPC also said the proposal to have the PMAs charge market rates raises several implementation problems, including a conflict with BPA’s statutes and with its current power contracts with utilities that continue through 2028.

The PPC said its staff will be analyzing specifics of the proposals if and when they become available.

“Reading from the Budget Summary, the proposals raise several concerns including: (1) significant increased costs to local residents and businesses;

(2) loss of regional control and value; (3) potential forremote areas of the system to be neglected, harmingrural communities; and, (4) impacts to reliability ofwhat is currently a complex and integrated system,”the PPC said in a news release.

The PPC is a not for profit association that represents about 100 consumer-owned electric utilities in the Pacific Northwest on issues regarding the Federal Columbia River Power System and is a forum to discuss and build consensus around energy and utility issues.

Proposal also authorizes commercial O&M activities at hydropower facilities

Trump’s proposal would also authorize commercial operation and maintenance activities at U.S. Army Corps of Engineer (USACE) hydropower facilities.

Trump wrote that prohibiting privatization of O&M at USACE facilities “creates unnecessary bureaucracy and restricts open competition that leads to excess costs for operations that can easily be done at a lower cost and more efficiently.”

The proposal would amend the law to allow the Secretary of the Army to determine whether O&M functions at hydropower facilities on USACE

Grid Asset(continued from page 8)



projects are commercial activities and appropriate for performance by non-Federal entities and “would increase the opportunity for open competition and lead to more efficient operations and maintenance.”

The infrastructure plan is largely focused on non-electric resources — roads, bridges, airports, ports, waterways, and water resources.

Two exceptions are hydropower and rural electric.The plan would allow hydropower facilities to

qualify for a $100 billion infrastructure incentives program and expand the use of tax-exempt private activity bonds to include hydropower construction.

on startup costs for the municipal utility. That does not include the purchase of the local electric distribution system from IPL/Alliant.

Therein lies a potential rub. NextGen said an electric distribution system buyout could cost the city around $5 million. Alliant says the figure would

Big Savings(continued from page 9)

be much higher. Wagner said a Concentric Energy Advisors feasibility study of the utility's Decorah network places the value at about $50 million.

Another issue involves several hundred rural residents who currently are served by the existing electric system in Decorah but are not city residents. NewGen suggested a public power utility could extend service to them as well.

Grid Assets(continued from page 9)

PABs currently can finance hydropower environmental enhancements, but not other investments.

The plan would also allow governmental generation, transmission, and distribution to qualify for a $50 billion rural infrastructure program

Plan proposes spending $200 billion on federal infrastructure initiative

Overall, the plan proposes spending $200 billion on the federal infrastructure initiative, the same amount proposed in Trump’s 2018 budget.

Trump estimates the proposal would incentivize an additional $1.5 trillion in infrastructure investments, up from the $1 trillion estimated last year for a comparably-sized program.


AM ALLGEIER, MARTIN and ASSOCIATES, INC.

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Corporate Office: Joplin, MO | 7231 E. 24th Street | 417.680.7200 Rolla, MO | 112 W. 8th Street | 573.341.9487 Kansas City, MO | 1201 N.W. Briarcliff Pkwy | 816.673.7540 Springfield, MO | 1801 W. Norton Road | 417.351.6669

www.amce.com


Ardmore OK(580) 226-2280

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Locations Serving MESO Members

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Kriz-Davis is now a part of Border States Electric.

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