HomeMy WebLinkAboutMinutes - Mail Packet - 05/14/2024 - Platte River Power Authority Meeting Minutes – March 28, 2024
1 | Page
Regular meeting minutes of the board of directors
2000 E. Horsetooth Road, Fort Collins, CO
Thursday, March 28, 2024
Attendance
Board members
Representing Estes Park: Mayor Wendy Koenig and Reuben Bergsten
Representing Fort Collins: Mayor Jeni Arndt and Tyler Marr
Representing Longmont: Mayor Joan Peck1 and David Hornbacher
Representing Loveland: Mayor Jacki Marsh and Kevin Gertig
Platte River staff
Jason Frisbie (general manager/CEO)
Sarah Leonard (general counsel)
Dave Smalley (chief financial officer and deputy general manager)
Melie Vincent (chief operating officer, generation, transmission and markets)
Raj Singam Setti (chief operating officer, innovation and resource strategy integration)
Eddie Gutiérrez (chief strategy officer)
Angela Walsh (executive director of board and administration, board secretary)
Esther Velasquez (sr. executive assistant)
Josh Pinsky (IT service desk technician II)
Mitch Tomaier (IT systems administrator)
Kaitlyn McCarty (senior executive assistant)
Kylie Kwiatt (administrative assistant II)
Shelley Nywall (director, finance)
Libby Clark (director, human services and safety)
Javier Camacho (director, public/external affairs, strategic communications/social marketing)
Kendal Perez (manager, strategic communications and community relations)
Maia Jackson (senior communications and marketing specialist)
Izzy Smith (communications and marketing specialist)
Leigh Gibson (senior external affairs specialist)
Paul Davis (manager, distributed energy resources)
Zach Borton (distributed energy resources services manager)
Guests
none
1 Attended remotely; arrived at 9:06 am, dismissed self at 12:00 pm
2 | Page
Call to order
Chair Gertig called the meeting to order at 9:01 a.m. A quorum of board members was present
via roll call. The meeting, having been duly convened, proceeded with the business on the
agenda. Jason Frisbie, general manager and chief executive officer, presented Director Wendy
Koenig with a bison statue to commemorate her time serving on the Platte River Board of
Directors and highlighted contributions she made to the board. Director Koenig shared her
gratitude to the board and staff of Platte River.
Action items
1. Consent agenda
a. Approval of the regular meeting minutes of Feb. 29, 2024
b. Resolution 03-24: Budget contingency process
Director Koenig moved to approve the consent agenda as presented. Director Marsh seconded.
The motion carried 8-0.
Public comment
Chair Gertig opened the public comment section by reading instructions, noting that time to
accommodate each speaker would be divided equitably by the number of in-person members of
the public and callers wishing to speak at the start of public comment. No members of the public
addressed the board.
Committee reports
2. Defined Benefit Plan committee report
Committee Chair Dave Hornbacher provided the Defined Benefit Plan (Plan) committee report
from the Feb. 29, 2024, meeting and the second meeting held on March 21, 2024.
Committee Chair Hornbacher explained the plan’s investment consultant, Northern Trust,
reported on the plan’s performance for 2024, noting that assets increased $7.8 million, which
included investment gains of $10.1 million and net distributions of $2.3 million. Year-to-date, the
portfolio significantly underperformed its benchmark. The Plan’s underperformance was
primarily due to the portfolio’s exposure to low-volatility, high-quality equities, so the portfolio
returned 10% while the custom index returned 16%. The Plan’s target annual return is 7.5%.
Northern Trust evaluated several investment portfolios and investment funds to address the
portfolio’s underperformance and to help better position the portfolio to meet the Plan’s long-
term objectives. Northern Trust recommended keeping the portfolio’s broad asset allocation
unchanged. The recommendation included reducing the portfolio’s exposure to quality, low-
3 | Page
volatility equity strategies and accessing traditional investment strategies to help long-term
returns. The committee agreed to move forward with Northern Trust’s recommendations.
50 South Capital, the investment manager for the plan’s private equity and private credit
allocations, provided an update on the performance of the asset classes.
The committee held a second meeting on March 21, 2024, to conduct its annual review of the
investment consultant. The committee evaluated Northern Trust’s performance based on criteria
in the scope of services included in the agreement between Northern Trust and Platte River.
The committee agreed the consultant is not meeting expectations. Staff provided feedback and
discussed the committee’s concerns with Northern Trust. After discussions with Northern Trust,
the committee will continue to monitor for improvements and take further action if necessary.
Committee Chair Hornbacher stated the next committee meeting is scheduled for May 30, 2024.
Board action items
3. Executive session
Chair Gertig noted the next item on the agenda was the annual performance review of the
general manager. Board members received the review materials and pertinent compensation
information ahead of the meeting. Director Arndt moved that the board of directors go into
executive session for the purpose of considering the personnel matter related to the annual
review of the performance and compensation of the general manager.
The general counsel advised that an executive session was authorized in this instance by
Colorado Revised Statutes, Section 24-6-402(4)(f)(I); provided that no formal action would be
taken during the executive session. Director Hornbacher seconded, and the motion carried 8-0.
Reconvene regular session
The chair reconvened the regular session, confirming by roll call that all board members were
present and asked if there was further discussion or action because of the executive session.
Director Marsh moved to change Mr. Frisbie’s compensation to 1.0 of the new compensation
pay range midpoint, paid retroactively from Dec. 17, 2023, along with a one-time cash bonus of
$19,000. Director Hornbacher seconded. Directors explained Platte River’s new compensation
philosophy and how Mr. Frisbie’s compensation ratio was determined. The motion carried 8-0.
4 | Page
Management presentations
4. Resource adequacy annual report (presenters: Raj Singam Setti and Sarah Leonard)
Raj Singam Setti, chief operating officer, innovation and resource strategy integration, described
the resource adequacy reporting requirements of HB23-1039, requiring Platte River to submit
an annual resource adequacy report to the board by April 1 each year and submit it to the
Colorado Energy Office by April 30.
Sarah Leonard, general counsel, explained the submission process to the Colorado Energy
Office. Staff requests the board authorize submission of the report on behalf of the board.
Director Bergsten moved to authorize staff to submit the 2024 resource adequacy report to the
Colorado Energy Office on behalf of the board. Director Peck seconded. Director Bergsten
thanked staff for the summary report. Director Arndt asked if the report will be on Platte River’s
website. Ms. Leonard confirmed that the report will on the website. The motion carried 8-0.
5. VPP series: Distributed energy storage update (presenter: Zach Borton)
Mr. Singam Setti introduced the virtual power plant series reflected in the management reports
and presentations, with the first presentation on distributed energy storage. He referred to next
month’s virtual power plant presentation with information in the management report section of
the board packet.
Zach Borton, distributed energy resources services manager, presented the distributed energy
storage project to be located on owner communities’ distribution systems. He discussed cost
factors and value stacking (creating many use cases with one asset), location evaluation, risk
mitigation strategies and next steps in land leases, construction and expected delivery date. Mr.
Singam Setti noted the size of the project at each location receiving a five-megawatt (MW)
battery, which collectively will provide 80 MW hours of stored energy.
Director Marsh asked how much in-home batteries cost and how they compare to the value
stacking of distributed storage. Mr. Borton answered that it varies based on what type of battery
and described distributed resource benefits. Director Bergsten commented on value stacking
within sections of the owner communities and collaboration in evaluating potential locations.
Chair Gertig asked if staff is experiencing any challenges obtaining alignment among the four
owner communities. Mr. Borton confirmed the working process and collaboration for the storage
project is going well and thanked the owner community staffs for all their work.
6. Legislative session update (presenter: Javier Camacho)
Javier Camacho, director, public and external affairs, strategic communications and social
marketing, provided a brief overview of the guiding principles of legislative advocacy efforts for
this year’s session and highlighted air quality and air permitting bills targeting the oil and gas
sector. Some of these bills, if passed, may also apply to Platte River.
5 | Page
Management reports
7. Virtual power plant (presenter: Raj Singam Setti)
Mr. Singam Setti previewed the virtual power plant series during agenda item five.
Monthly informational reports for February
8. Legal, environmental and compliance report (presenter: Sarah Leonard)
Ms. Leonard highlighted the Municipal Energy Agency of Nebraska complaint challenging the
Colorado’s Power Pathway and the Environmental Protection Agency’s proposed new
regulations for greenhouse gas emissions from power plants.
9. Resource diversification report (presenter: Raj Singam Setti)
Mr. Singam Setti discussed working with the legal department to create the wind request for
proposal (RFP) term sheet and receiving 15 notice of intent to submit a response for the all-
dispatchable RFP. He also noted construction on the transmission facility to integrate the Black
Hollow Solar project has started and work on permitting continues. Staff is actively negotiating
for adding another 150 MW solar project that would connect through the same new substation.
10. Operating report (presenter: Melie Vincent)
Ms. Vincent highlighted operating results for February and year to date. In February, due to mild
weather in the region, the overall net variable cost to serve owner community load was below
budget, reflecting coal generation fuel savings and lower wind generation purchases, offset by
decreased bilateral and market sales. Year to date municipal demand is close to budget and
energy is slightly below budget.
11. Financial report (presenter: Dave Smalley)
Mr. Smalley highlighted financial results for February and year to date. In February, change in
net position was $1 million below budget, with below-budget revenues and operating expenses
offsetting each other. He stated most of the change in net position was due to unfavorable fair
market value adjustments. Year to date, change in net position is above budget $1.3 million.
The main reason is that operating expenses are below budget more than operating revenues
are below budget. The lower operating revenues are mainly due to lower surplus sales pricing
and volume.
Platte River
Power Authority
Estes Park • Fort Collins • Longmont • Loveland
12. General management report (presenter: Jason Frisbie)
Mr. Frisbie highlighted the distributed energy solutions results and thanked the board for
continued support during the annual review process. He also complimented the senior
leadership team for all the work they do to support Platte River.
Roundtable and strategic discussion topics
Directors provided updates from their individual communities.
Adjournment
With no further business, the meeting adjourned at 12:37 p.m. The next regular board meeting
is scheduled for Thursday, April 25, 2024, at 9:00 a.m. either virtually or at Platte River Power
Authority, 2000 E. Horsetooth Road, Fort Collins, Colorado.
AS WITNESS, I have executed my name as Secretary and have affixed the corporate seal of
the Platte River Power Authority this ZS day of Apel\ , 2024.
Adopted: April 25, 2024
Vote: 8-0
61 Page