[MEETING TO ORDER]
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>>> GOOD AFTERNOON. WELCOME TO THE FORT PIERCE UTILITY AUTHORITY BOARD MEETING THIS JANUARY 20TH, 2026. PLEASE FOR THE INVOCATION AND JOIN MOW FOR E.
>> WE THANK YOU FOR A DAY. WE THANK YOU FOR THE GRACE, THE KINDNESS, AND ALL THE GIFTS THAT YOU HAVE BLESSED US WITH.
WE THANK YOU ALSO FOR THESE LEADERS OF FPUA, THIS BOARD. WE PRAY, GOD, FOR CLARITY OF THOUGHT, WISDOM AT THE DECISIONS OF THE AMERICA, THE MOST GOOD FOR THE MOST PEOPLE IN THE CITY OF FORT PIERCE. IN CHRIST'S NAME WE PRAY, AMEN.
>> I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD INDIVISIBLE WITH LIBERALLY TAND JUSTICE FOR ALL.
[A. SET THE AGENDA]
>> AND WE HAVE A MOTION TO SET THE AGENDA.
>> YES, MA'AM. DO WE HAVE ANY COMMENTS FROM THE
[C. APPROVAL OF MINUTES]
PUBLIC TODAY? IF SO, PLEASE STEP FORWARD.HAVE TO TWO MINUTES TO SPEAK. NO MOVEMENT, SO WE CLOSE THAT SECTION OF TODAY'S MEET AND MOVE ON TO THE APRF THE MINUTES. BOARD MEMBERS HAVE A CHANCE TO 'VIEW THE MINUTES AND IF SO A MOTION TO APPROVAL.
[D. CONSENT AGENDA]
>> YES. >> TWO ITEMS ON THE CONSENT AGENDAISM TRUST NOBODY HAS ISSUES WITH THE TWO ITEMS. IF NOT.
COULD WE GET A MOTION TO AMOVE?
[E.1. Manatee Center Strategic Plan]
>> YES. ON TO THE REGULAR AGENDA FOR THE DAY.
>> THANK YOU. THE FIRST ITEM THIS AFTERNOON IS A PRESENTATION ON THE MAN CENTER STRATEGIC PLAN REQUEST TO ADOPT TO ACCEPT THE STRATEGIC PLAN FROM THE BOARD. MS. BARCLAY WILL PRESENT THIS
LET'S SEE. IF THE THING WORKING?
>> POWERPOINTS ARE NOT WORKING.
>> THAT'S FANTASTIC. >> I CAN TAP DANCE THROUGH IT.
>> I DO WISH I HAD THAT POWER POINT. IT BROKE IT TOWN SO NICELY. I AM GOING TO READ THROUGH THIS. TODAY I AM PRESENTING THE MANATEE CENTER -- THE LONG TERM OPERATING CONDITIONS NEEDED FOR THE CENTER TO FUNCTION ADDS A UNIQUE CIVIC A ASSET WITHIN FPUA SERVING RESIDENTS, VISITORS STUDENTS AND PARTNERS AT THE INTERSECTION OF PUBLIC SERVICE, EDUCATION, CONSERVATION AND TOURISM. EVERYONE DID SEE THE MAN, RIGHT? FANTASTIC.
>> COULD YOU PULL THE MIC CLOSER? THERE IS A LITTLE BIT OF AN
ECHO. >> THERE IS A LITTLE ECHO.
MAYBE IT'S THAT MIC. >> MORE ECHO, I THINK.
>> YEAH. TRY A DIFFERENT MIC. YEAH.
>> SINCE YOUR POWERPOINT ISN'T WORKING.
>> A LOT OF TECHNICAL DIFFICULTIES.
SO BACK TO WHY THIS PLAN EXISTS. THE CENTER OCCUPIES A UNIQUE POSITION WHERE OPERATED BY FPUA LOCATED ON CITY PROPERTY, WE ARE SERVING AS AN EDUCATIONAL RESOURCE AND VISITOR DESTINATION, SUPPORTING REGIONAL CONSERVATION PARTNERS AND ANCHORING A VERY HIGHLY VISIBLE PUBLIC WATERFRNT. BECAUSE OF THAT WE NEED A CLEAR, STABLE FRAMEWORK THAT DEFINES THE CONDITIONS REQUIRED FOR RELIABLE OPERATIONS, ALLIANCE WITH FPUA'S ENTERPRISE GOALS AND CITY'S FRYER TEASE ANDAND REMAINS STEADY ACROSS STAFFING OR LEADERSHIP TRANSITIONS.
THE PLAN PROVIDES CHARITY, CONTINUITY AND PREDICTABLE PUBLIC VALUE. THE PLAN IS ORGANIZED INTO SIX STRATEGIC PERSPECTIVES. THE FIRST IS COMMUNITY IMPACT AND ACCESS. AND THAT MEANS REDUCING BARRIERS AND STRENGTHENING LOCAL ENGAGEMENT. THE SECOND IS VISITOR EXPERIENCE.
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AND AGAIN CONSISTENT ACCESSIBLE SELF- GUIDED EXPERIENCES.THE THIRD IS WORK FORCE RELIABILITY AND CAPACITY.
THAT LOOKS LIKE CLEAR ROLES, READINESS STANDARDS AND DEPENDABLE STAFFING THE FOURTH EDUCATION AND PROGRAMMING. STANDARDIZED CAPACITY ALIGNED LAGOON LEARNING, INTERNAL PROCESSES AND INFRASTRUCTURE, DOCUMENTED SYSTEMS, RELIABLE DATA, COORDINATED FACILITIES AND PARTNERSHIP AND REGIONAL COORDINATION SO EXPANDING PUBLIC VALUE WITHOUT EXPANDING THE COSTS. THIS PLAN, THESE SIX PERSPECTIVES DESCRIBE CONDITIONS AND NOT PROJECTS.
SO IT'S THE FOUNDATION NEEDED FOR RELIABLE OPERATIONS.
>> IF YOU CAN GET ONLINE, BUT THE PRESENTATION WASN'T ON THERE BEFORE AND IT IS NOW.
YOU MIGHT BE ABLE TO PULL UP. YEAH.
>> THAT WOULD MAKE A LOT MORE SENSE.
>> PLAN WAS BEAUTIFUL. I WAS LIKE, MAN, I HOPE SHE HAS A PRESENTATION TO GO WITH IT.
>> IT DOESN'T HAVE PRETTY PICTURES OR ANYTHING.
>> BREAKS IT DOWN A LITTLE BIT, CONDENSES IT ALL.
>> NICE WORKAROUND. >> RIGHT? ALL RIGHT. LET'S SEE.
>> THANK YOU, GRISEL. >> THANK YOU.
WE ALREADY COVERED THIS ONE, WHY THIS PLAN EXISTS.
THE EXECUTIVE SUMMARY, WHICH IS BREAKING DOWN THOSE SIX OPERATE CONDITIONS, THE PERSPECTIVES.
AND THEN HERE IS WHERE WE ARE STARTING TO SHOW THE ALIGNMENT WITH FPUA STRATEGIC PLAN.
SO I AM NOT GOING TO READ IT TO YOU BECAUSE YOU CAN SEE IT THE MODERNIZATION WORK FORCE, CUSTOMER RELATIONS GROWTH AND ORGANIZATIONAL DEVELOPMENT. THE SAME FRAMEWORK WE HAVE THAT MATCHES UP WITH FPUA'S STRATEGIC PLAN, ALSO ALLIANCE WITH THE CITY'S AS WELL.
AND THAT LOOKS LIKE THIS. SO WE'RE ENGAGING OUR COMMUNITY, SERVING OUR COMMUNITY, DEVELOPING OUR COMMUNITY AND ENJOYING OUR COMMUNITY AND BEAUTIFYING OUR COMMUNITY. FORS AND THIS IS MY ASK AND WHY I'M HERE, IS I WOULD LOVE FOR THIS BOARD TO ADOPT THIS STRATEGIC PLAN.
QUESTIONS, COMMENTS, CONCERNS?
>> ANY QUESTIONS OF THE BOARD?
>> MR. CHAIR, I HAVE A COUPLE QUESTIONS. SO IN THE PAST DID WE NOT HAVE A STRATEGIC PLAN SPECIFICALLY FOR THE MAN CENTER?
>> NOT TO MY KNOWLEDGE. >> OKAY.
I WAS CURIOUS ABOUT THAT. I THINK THAT IT'S GREAT TO HAVE A VISION AND HAVE SOME GUIDELINES BUILT AROUND IT SO THAT WE CAN MAKE SURE TO, A, IF YOU ARE NOT RUNNING IT, THEN WE AT LEAST WE ALL HAVE A GOAL WE ARE TRYING TO OBTAIN, AND I THINK I LIKE THE WAY IT WAS LAID OUT AND YOUR PLAN, I THINK IT'S COMPREHENSIVE. AND IT FULFILLS WHAT WE'RE TRYING TO DO AS A CITY AND ALSO AS A UTILITY.
>> MR. CHAIRMAN, IF I MAY ADD TO JESSICA'S PRESENTATION.
AS A REFRESHER, I GUESS, BECAUSE THE BOARD WAS HERE WHEN WE RENEWED THE AGREEMENT WITH THE MANATEE CENTER. THE ORIGINAL MANATEE CENTER WAS DEVELOPED IN PARTNERSHIP BETWEEN MAIN STREET CITY OF FORT PIERCE AND FPUA.
SO A GREAT JOB OF SAYING THE CITY'S STRATEGIC PLAN WITH FPUA'S STRATEGIC PLAN PAUSE IT IS A COMMUNITY CENTER. IT'S A COMMUNITY PARTNERSHIP.
SO, OBVIOUSLY, JURISDICTION FALLS UNDER FPUA, BUT GREAT WE ALWAYS INCLUDE THE CITY WITH STRATEGIC PLANNING. SO I JUST THOUGHT THAT WOULD BE IMPORTANT. SOME IMPORTANT BACKGROUND FOR THE BOARD TO TAKE AS PART OF THIS.
>> ANY OTHER QUESTIONS OR COMMENTS OF THE BOARD? WE HAVE A MOTION TO APPROVE?
>> MR. CHAIRMAN, SO THE PLAN IS TO FOLLOW THE STRATEGIC PLAN OF FPUA AND THE CITY?
>> SO IT'S -- IT LAYS OUT SIX PERSPECTIVES THAT TALKS ABOUT WHAT MUST BE TRUE FOR THE MANATEE CENTER TO STAY THE COURSE AND TO BE A SUCCESSFUL OPERATION. RIGHT? AND I'M SHOWING HOW IT ALLIANCE WITH FPUA AND HOW IT ALLIANCE THE CITY.
IT DOESN'T LOOK AS IF WE'RE RUN OFFERING IN OUR
WELL, SO I DON'T KNOW HOW IT FITS, BUT I JUST WANT TO MAKE A COUPLE OF OBSERVATIONS.
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ONE IS IT'S MY UNDERSTANDING THAT THE MANATEE CENTER HAS FOLLOWING WORLDWIDE ALMOST THAT THERE ARE PEOPLE THAT KNOW ABOUT THIS MANATEE CENTER IN A LOT OF PLACES THAT YOU -->> VERY TRUE, YES. WE ACTUALLY HAVE A LOT OF PEOPLE FROM GERMANY.
>> YEAH, RIGHT. AND THAT ITS MISSION IS VERY -- VERY INTERESTING BECAUSE OF WHERE WE'RE LOCATED ON THE INDIAN RIVER LAGOON AND BECAUSE OF THE INLET AND THE OCEAN AND BECAUSE OF OUR HISTORY.
AND SO YOU ARE DOING SO MUCH MORE THAN JUST MANATEES?
>> CORRECT. WE VIEW OURSELVES AS THE FIRST STOP FOR INTERPRETATION FOR THE INDIAN RIVER LAGOON. AND SO YOU WOULD HAVE TO HAVE A LOT OF COLLABORATION AND COULD HAVE THE OPPORTUNITY FOR A LOT OF COLLABORATIONS LIKE THE FORT
PIERCE YACHT CLUB. >> EXACTLY.
>> THE MARINA, LIKE THE INDIAN RIVER
EXACTLY. >> ALL OF THOSE THINGS THAT ARE -- DEAL WITH THE LAGOON AND SAVING AND PRESERVING THE LAGOON, RIGHT.
ALSO, YOU HAVE A LOT OF STROLL TIERS.
>> AND THAT IS -- THAT ENGAGEMENT IS HUGE FOR -- AND PEOPLE ARE REALLY INTERESTED IN IT.
SO I GUESS WHAT I'M SAYING, IF ALL THAT IS INCLUDED IN THE PLAN, I THINK IT'S A GREAT PLAN.
>> THANK YOU VERY MUCH. WE ARE NOT -- I AM NOT SUGGESTING WE HANG FROM ANYTHING. IT'S JUST SETTING THE STANDARD SO IF I WOULD SAY IF I GET HIT BY A BUS, I DON'T WANT TO CURSE MYSELF, WHEN I WIN THE LOTTERY, THE MANATEE CENTER DOESN'T HAVE IS CHANGE.
>> YOU COULD GIVE A BIG CONTRIBUTION.
RIGHT, RIGHT. >> IT'S ON TAPE NOW.
>> A CONTRIBUTION TO HOBBY, BY THE WAY.
>> ANY OTHER COMMENTS? MOTION TO APPROVE?
[E.2. 2025 NERC Annual Presentation]
MUCH. >> MR. CHAIR MANNED AND BOARD MEMBERS, THE NEXT IS AN ANNUAL PRESENTATION THE BOARD THAT PROVIDES THE BOARD WITH A HIGH- LEVEL OVERVIEW OF HOW FPUA COMPLIES WITH FEDERAL STANDARD REQUIREMENTS FOR ELECTRIC SYSTEMS. ERIC MEYER WILL PRESENT THIS ITEM.
>> THANK YOU, MR. CISNEROS. GOOD AFTERNOON.
GREAT. ALL RIGHT. WE HAVE A PRESENTATION.
THIS AFTERNOON I'D LIKE TO PRESENT FPUA'S ELECTRIC UTILITY COMPLIANCE JIEFR FOR 2025 WITH NERC, AS KNOWN AS THE NORTH AMERICAN ELECTRIC RELIABILITY ORGANIZATION.
>> BEFORE BEGINNING THE REVIEW. AN OVERJU OF FPUA'S INFRASTRUCTURER. THE FERK IS AN INDEPENDENT ANDAND FEDERAL AGENCY THAT REGULATES ASPECTS OF THE U.S. ENERGY INDUSTRY, INCLUDING ELECTRIC RELIABILITY UNDER THE FEDERAL POWER ACT. IN 2026, FERK DESIGNATED NERC AS THE ELECTRIC RELIABILITY ORGANIZATION FOR THE UNITED STATES. NERC ENFORCES RELIABILITY STANDARDS THAT ENTITIES OPERATING WITHIN THE BULK ELECTRIC MUST FOLLOW.
THE JURISDICTION IS USERS, OWNERS AND OPERATORS ACROSS PORTIONS OF NORTH AMERICAN, SERVE U CUSTOMERS IN THE U.S.
AND KARNISOVAS. IT'S THE DESIGNATED REGIONAL. SERC MONITORS ENFORCES AND PROPOSED RELIABILITY STANDARDS APPLICABLE IN THE SERC REGION, THE CERTAIN UNITED STATES AND TYPICALLY ISSUES AUDIT NOTIFICATIONS OR REQUESTS FOR NOTIFICATION. FPUA HAS A NERC COMPLIANCE TEAM WITH REPRESENTATION FROM ELECTRIC AND GAS ENGINEERING, TRANSMISSION AND DISTRIBUTION AND INFORMATION TECHNOLOGY SERVICES.
THE SCOPE AND THE NERC STANDARDS THAT APPLY TO OUR ORGANIZATION, FPUA MUST REGISTER OPERATIONS BASED ON SEVERAL CRITERIA. THESE INCLUDE PHYSICAL OWNERSHIP OF ENERGIZED ELECTRICCAL ELEMENTS, OPERATIONAL CONTROL OF ENERGIZED ELEMENTS BY VOLTAGE CLASS AND OWNERSHIP AND OPERATION OF LARGE ELECTRIC GENERATION RESOURCES.
ASSETS OF 2026, UTILITIES WITH NERC AS A TRANSMISSION OWNER REFLECTING OWNERSHIP OF TRANSMISSION FACILITIES AND A DISTRIBUTION PROVIDER REFLECTING THE DELIVERY OF ELECTRIC SERVICE DIRECTLY TO ADAMS CUSTOMERS FROM THE TRANSMISSION SYSTEM.
FPUA DOESN'T OWN ANY ASSETS. IT'S OPERATED BY THE
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FLORIDA MUNICIPAL POWER AGENCY AND FPUA DOESN'T HAVE FULL OPERATION CONTROL OF TRANSMISSION FACILITATES AT 100 KV OR ABOVE.FLORIDA POWER AND LIGHT IS THE DESIGNATED OPERATORS FOR TRANSMISSION LINES. IN ADDITION, THEY PROVIDE SUPPORT TO FPUA FOR COMPLIANCE WITHIN OUR TRANSMISSION PLANNING AND RELIABILITY PLANNING STANDARDS. NERC STANDARDS NEWLY DEVELOPED PROPOSED FOR MODIFICATION ISSUED WITH QUARTERLY DATES.
FPUA REVIEWS STANDARDS TO ENINSURANCE READINESS PRIOR TO ENFORCEMENT. IN 2025, NO NEW NERC STANDARDS BECAME EFFECTIVE APPLICABLE TO FPUA. AS A RESULT, FPUA WAS NOT REQUIRED TO DEVELOP OR IMPLEMENT NEW PROCEDURES OR PROCESSES FOR ELECTRIC REGULATORY COMPLIANCE DURING 2025. FPUA DID NOT SUBMIT ANY SELF-REPORTS FOR VIOLATION OF NERC STANDARDS IN 2025.
FPUA'S NERC COMPLIANCE CONSULTANT COMPLETED REVIEWS OF APPLICABLE STANDARDS. BASE ODD ON THE REVIEWS, FPUA PLANS TO SUBMIT A SELF- REPORT FOR A SINGLE STANDARD IN WHICH MINOR VIOLATIONS WERE IDENTIFIED. UPDATES WILL BE PROVIDED TO THE FPUA DURING THE NERC COMPLIANCE REVIEW.
FPUA FACES SEVERAL KEY CHALLENGES RELATED TO ELECTRIC UTILITY REGULATORY COMPLIANCE IN THE COMING OTHERS YEARS. INVERTOR-BASED RESOURCES HAVE BECOME PROPOSAL LENT IN THE POWER GRID FROM SMALL INSTALLATIONS TO LARGE SCALE SOLAR AND WIND FACILITIES. THE WIDE VARIATION IN SIZE AND OWNERSHIP MAKES QUANTIFYING OVERALL PENETRATION IN ASSESSING THE GRID RELIABILITY MORE COMPLEX.
DEVELOPERS EXPRESSED INTEREST, NO LARGE SCALE UTILITY IBR PROJECTS ARE CURRENTLY INTERCONNECTED TO THE SYSTEM AS OF TODAY.
NERC CONTINUES TO ASSESS EXISTING RELIABILTY STANDARDS AND IS EVALUATING POTENTIAL ENHANCEMENTS, GUIDANCE AND NEW OR REVISED STANDARDS.
FPUA RECEIVED REQUESTS FOR LARGE ELECTRICAL LOADS UP GRAZE TO THE EXISTING GRID INFRASTRUCTURE.
PROMPTING UTILITY PLANNING AND ENGINEERING TEAMS TO PREPARE UPDATED COST ESTIMATES AND IMPLEMENTATION STRATEGIES. ASSOCIATED WITH HIGH IBR PENETRATION AND SIGNIFICANT LOAD GROWTH TO INFORM STAKEHOLDERS AND POTENTIAL FUTURE RELIABILITY GUIDANCE. WITH THAT I CAN TAKE ANY QUESTIONS YOU MAY HAVE AT THIS TIME.
>> ANY QUESTIONS OF THE BOARD?
>> MR. CHAIRMAN, SO IS AN IBR IS A DATA CENTER? IS THAT RIGHT?
>> NO PROBLEM. YEAH, WE HAVE A LOT OF ACRONYMS IN NERC. IT STANDS FOR INVERTED- BASED RESOURCE. SO TYPICALLY A LOT OF REGENERATION COMES FROM ROTATING MACHINES LIKE COAL PLANTS, NATURAL GAS FEES TEASE. IBR USUALLY USES RENEWABLE ENERGY, SOLAR, WIND, THAT KIND OF THING TO CREATE POWER FOR CUSTOMERS.
SO WHAT WE HAVE BEEN SEEING AT LEAST IN NERC ACROSS THE COUNTRY HAS BEEN AN INCREASE IN IBRS SOLE SER WIND, OFFSHORE WIND, ON-SHORE SOLAR AND THAT KIND OF THING ATTACHED TO THE GRID. HERE AT FPUA WE HAVE SEEN SOME REQUESTS BUT NEVER EVER MATERIALIZED.
SO USUALLY WHAT WE HAVE IS SMALL RESIDENTIAL OR COMMERCIAL SCALE SOLE EARLY. SO SOME OF OUR CUSTOMERS HAVE THEIR OWN SOLAR SYSTEMS IN THEIR HOMES, BUT WE HAVE NOT SEEN ANY MASSIVE SOLAR PLANTS BEING ATTACHED TO OUR GRID HERE AT FPUA.
>> AND YOUR LAST BULLET POINT ABOUT THE POWER THAT -- DATA CENTERS USE AND WE ARE READING A LOT ABOUT THAT NOW?
SO THERE HAS BEEN -- >> HOW DOES THAT FIT INTO THIS --
>> THERE HAS BEEN A SIGNIFICANT INCREASE IN DATA CENTER -- DATA CENTERS REQUESTING POWER FROM UTILITIES ACROSS THE COUNTRY.
FPUA IS NO EXCEPTION. WE HAVE SEEN SOME DATA CENTERS THAT HAVE ASKED FOR SERVICE. TYPICALLY ON VERY AGGRESSIVE TIMELINES. AND WITH THAT NERC HAS BEEN INVOLVED TO HELP UTILITIES KIND OF UNDERSTAND THE SITUATION AND DEVELOP STANDARDS OR IN THE PROCESS OF DEVELOPING STANDARDS TO HELP UTILITIES WITH THAT. TYPICALLY, THE PROBLEM THERE HAS BEEN THAT UTILITIES DON'T HAVE ENOUGH INFRASTRUCTURE IN PLACE TO FACILITATE THE DEMAND USE.
THE LARGE SCALE OF PROJECTS THAT WE HAVE SEEN TYPICALLY WOULD REQUIRE A SIGNIFICANT
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INVESTMENT INTO THE SYSTEM IN ORDER TO PROVIDE RELIABLE POWER FOR THEIR OPERATIONS. SO NERC IS KIND OF GETTING INVOLVED TO MAKE SURE THEY CAN SORT OF DEVELOP SOME REGULATORY ITEMS TON THAT FRONT, IGUESS. >> THIS IS A CONCERN TO A LOT OF PEOPLE IN THE PUBLIC BECAUSE THEY FEEL LIKE IF DATA CENTERS COME, IT'S GOING TO TAKE POWER AWAY FROM THE REGULAR CUSTOMER. AND IT'S -- JAVY IS GRINNING OVER HERE.
>> I WILL STEP IN FOR A SECOND. I CAME BACK IF THE APPACOE CONFERENCE AND DATA CENTERS WAS A TOPIC OF CONVERSATIONS. IT WAS A COUPLE OF DAYS, BUT A GOOD CONVERSATION.
WE HAVE BEEN TALKING ABOUT DATA CENTERS FOR A COUPLE YEARS, MAYBE LONGER. AND ERIC'S RIGHT.
NERC, PUBLIC SERVICE COMMISSION, ALL OF THOSE ENTITIES STATE AND FEDERAL ENTITIES ARE GETTING INVOLVED HOW THE DATA CENTERS ARE GOING TO INTEGRATE INTO THE ELECTRIC SYSTEM. SO WE CAN GIVE THEM ENERGY.
ENERGY IS LIKE WATER. WE CAN GIVE YOU WATER.
HOWEVER DO YOU NEED WHEN YOU NEED IT AT FULL BLAST IS THE DEMAND PORTION IS REALLY THE BIG TAKEAWAY FROM THAT. SO THOSE DATA CENTERS ARE HAVING TO PRODUCE THEIR OWN CAPACITY POW IRGENERATION, MEANING IT MAY NEVER RUN THEIR GENERATORS UNLESS SOMETHING HAPPENS IN THE SYSTEM. THAT'S A HUGE INVESTMENT FOR A UTILITY LIKE US. FOR THE DATA CENTERS, IT'S NOT THAT BIG OF AN INVESTMENT. THE CONVERSATION IS SHIFTING TOWARDS DATA CENTERS BRINGING THEIR CAPACITY.
BUT AT THE SAME TIME WHICH WE'LL TALK ABOUT IN A FEW AGENDA ITEMS LATER, WE ARE COMPETING FOR THE SAME SIZE TRANSFORMERS BECAUSE THE DATA CENTERS ARE THE SIZE OF A CITY, 200 MEGAWATTS, 300 MEGAWATTS. WE ARE COMPETING FOR THOSE TRANSFORMERS. NOMT ONLY TRYING TO FIGURE OUT HOW THEY CONNECT TO THE GRID AND HOW IT'S GOING TO IMPACT RATES, YOU KNOW, IDEALLY MORE ENERGY IS GREAT BECAUSE WE CAN LOWER UNIT COST. THE DEMAND DRIVES UP THE COST BECAUSE YOU HAVE TO HAVE THAT POWER GENERATION FOR DEMAND ON STANDBY. SO THAT'S AN ASSET THAT IS SITTING THERE NOT MAKING REVENUE.
AND THAT'S THE WAY THE ELECTRIC SYSTEM WORKS NOW IS, YOU KNOW, IF TREASURE COAST ENERGY SYSTEM COMES OFFLINE, ANOTHER HAS TO PROVIDE POWER TO FMPA.
THEY HAVE TO MANAGE THAT CONSTANTLY.
SO I DON'T KNOW IF I ANSWERED YOUR QUESTION OR NOT.
INTEGRATION INTO THE ELECTRIC SYSTEM IS A BIG DEAL.
>> THIS IS A CONVERSATION THAT'S ONGOING.
>> SOLUTION RIGHT NOW WOULD BE THAT THE DATA CENTERS BRING THEIR OWN POWER.
BUT WITH THAT THAT MEANS NOW WE ARE COMPETING WITH THEM FOR THE SAME INFRASTRUCTURE ASSETS, THE SAME TRANSFORMERS, TRANSMISSION LINES, I MEAN, WE ARE NOW COMPETING WITH THEM RATHER THAN PROVIDING THEM. IT IS A HUGE INVESTMENT.
YOU ARE TALKING ABOUT, YOU KNOW, BILLIONS OF DOLLARS OF ELECTRIC INFRASTRUCTURE. FORT PIERCE CAN'T AFFORD THAT.
SO IT'S A BALANCE THAT WILL BE VERY INTERESTING TO SEE HOW THAT PLAYS OUT IN THE NEXT COMING YEARS AND NEXT SIX TO 18 MONTHS.
>> MR. CHAIRMAN, I'M INTERESTED IN THE REGULATORY ESTABLISHMENT.
WHAT IS IT GOING TO BE ALIGNED WITH CREATING LIMITATIONS OR PROHIBITIONS WITH REGARDS TO WHAT AMOUNT BASED ON --
MISS DAVIS, SO THEY -- I THINK AT THE STATE LEVEL, IF IT'S ABOVE 25 MEGAWATTS, THE STATE HAS TO REVIEW -- THAT'S ABOUT 25% THE SIZE OF FPUA.
THEY HAVE TO REVIEW HOW IT'S GOING TO BE CONNECTED. AT THE FEDERAL LEVEL, THE REASON IT'S A BIGGER DEAL, I DON'T KNOW WHAT THE NUMBER IS AT THE FEDERAL LEVEL, BECAUSE IF THAT DATA CENTER COMES OFFLINE, HOW DOES IT AFFECT THE TRANSMISSION SYSTEM AND HOW DOES IT CAUSE A CASCADING ISSUE WITH FREQUENCY, WITH VOLTAGE THROUGHOUT THE ENTIRE STATE. IF YOU -- I AM NOT SURE IF I TALKED ABOUT THIS BEFORE AT THE BOARD LEVEL, BUT AN ISSUE THAT HAPPENED IN NEW YORK IN THE 1989, I THINK, TIMEFRAME, THE CITY OF MIAMI - - F P&L SAW THAT FAULT FROM THE OUTAGE THAT HAPPENED IN THE NORTHEAST. SO YOU COULD SEE THAT, I MEAN, INSTANTANEOUS. IF THERE IS A HUGE LOAD THAT COMES OFF IT CAUSES A CASCADING EFFECT WITH FREQUENCY OR VOLTAGE. AT THE NATIONAL LEVEL, MAKING SURE THE SYSTEM IS PROTECTED SO IT DOESN'T CAUSE LARGE-SCALE EASTERN U.S. OUT ABILITIES, YOU KNOW, BLACKOUTS.
>> SO ARE THERE ANY LIMITATIONS BEING PLACED TAT THIS POINT TO BE REACTIVE TO THE PROBABILITY? PROACTIVE TO THE ENTITIES SUCH AS FPUA AND OTHERS?
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>> THEY ARE IN THE EARLY STAGES, PROCESS OF DEVELOPING STANDARDS AND THAT KIND OF THING, ROWINGTORY REQUIREMENTS AT THAT POINT.
BUT IT'S COMING. MORE INFORMATION, I GUESS, WHAT THE PROBLEM IS AND WHAT THEY NEED TO DO SOLVE IT. THERE IS MORE INFORMATION COMING. IT'S AT THE EARLY STAGES OF THIS PROCESS.
>> AND THE VIRGINIA, MARYLAND, I FORGET WHAT THE AREAS, AROUND THE WASHINGTON, D.C., AREA, THERE ARE A LOT OF DATA CENTERS THERE. AND THEY ARE LEARNING A LOT FROM HOW AN OUTAGE THERE AFFECTS THE LOCAL GRID. DEAL WITH, THEY CAN'T -- DATA CENTERS -- UTILITIES LIKE US AS WELL. DATA CENTERS? PARTICULAR CAN'T AFFORD ANY KIND OF OUTAGE BECAUSE IT'S A HUGE AMOUNT OF REVENUE. SO THEY ARE VERY DEMANDING, NO PUN INTENDED, ON MAINTAINING A HIGH LEVEL OF RELIABILITY FOR ELECTRIC SYSTEMS. THEY ARE LOOKING AT BRINGING IN THEIR OWN POWER IN ADDITION TO OUR POWER. WE CAN PROVIDE ENERGY.
WE CAN'T GUARANTEE CAPACITY. SO IT WILL BE INTERESTING TO SEE HOW THAT PLAYS OUT. I THINK YOU WILL HEAR SOMETHING ACTUALLY THE LAST BOARD MEETING THEY TALKED ABOUT WHAT THAT LOOKS LIKE AT THE FEDERAL LEVEL PROBABLY THIS YEAR, THEY WILL PROBABLY HAVE SOME OUTCOME THIS YEAR --
>> NO ANTICIPATION OF BEING BEHIND THE EIGHT BALL ON THAT?
>> DEFINITELY -- THE COUNTRY IS DEFINITELY IN ARREARS WHEN IT COMES TO TRANSMISSION AND PLANNING FOR DATA CENTERS AND THESE DATA CENTERS ARE MOVING FAST. THEY HAVE UNLIMITED AMOUNT OF MONEY AND THEY ARE MOVING FAST, MUCH FASTER THAN WE CAN.
>> I HOPE I DIDN'T SCARE YOU. WE HAVE THIS UNDER CONTROL. BUT THE --
>> CONTROL AS WE THINK WE HAVE. WHERE DO WE STAND?
>> JACOB WELCOMES AT FMPA IS VERY INVOLVED IN THESE CONVERSATIONS AT THE NATIONAL/STATE LEVEL. HE REPRESENTS FLORIDA VERY WELL, US VERY WELL, BUT ALSO REPRESENTING INTERESTS ON THE ELECTRIC SYSTEM AS A WHOLE IN THE COUNTRY. ERIC TALKED ABOUT SOLAR AND WIND. THAT IS GREAT AND WE SHOULD CONTINUE TO INVEST IN RENEWABLE ENERGIES, BUT THE MAGNITUDE AT WHICH THEY ARE DOING SOLAR AND WIND CAUSED A BIG STRAIN ON THE ELECTRIC SYSTEM WITH BECAUSE WHEN THEY ARE OFFLINE, SOMETHING ELSE HAS TO COME UP VERY QUICKLY AND THEY MAY NOT BE ABLE TO, WHICH THEN DISCUSS AS VOLTAGE OR FREQUENCY ISSUES WITHIN THE SYSTEM. SO AT SOME POINT THIS ENTIRE CONVERSATION WILL LEND ITSELF VERY MUCH TOWARDS NUCLEAR GENERATION BECAUSE NUCLEAR POWER THEY CAN GO 36 MONTHS WITHOUT AN OUTAGE, WHERE, YOU KNOW, A REGULAR GAS COMBINED CYCLE GAS -- 12, 16 MONTHS OR SO.
SO THE CYCLING OF MAINTENANCE BECOMES LESS OF AN ISSUE. PLUS NUCLEAR CAN -- THERE IS NO -- YOU KNOW, IT'S VERY -- IT'S VERY -- LIKE ECONOMICALLY FRIENDLY BECAUSE IT'S A CONTAINED SYSTEM.
THE CONVERSATION WITH NUCLEAR WILL CHANGE.
HOPEFULLY, THAT WILL ANSWER SOME OF THE CONCERNS WE HAVE WITH HOW IT IMPACTS THE ELECTRIC SYSTEM BECAUSE THOSE DATA CENTERS WILL MOST LIKELY DO SMALL MODULAR REACTORS, I THINK IS WHAT THEY ARE CALLED, LOCALIZED TO JUST THEIR SITE. MAYBE NOT EVEN CONNECTED TO THE ELECTRIC GRID.
>> THERE ARE NO LIMITATIONS OR REGULATORY REQUIREMENTS IN THE INTERIM UNTIL THEY COULD COME UP WITH REGULATIONS?
>> RIGHT. THERE ARE VERY LIMITED CONTROLS RIGHT NOW IN PLACE.
>> YEAH. I THINK THE DATA CENTERS ARE MOVING MUCH FASTER. THE EXPONENTIAL GROWTH OF DATA CENTERS IS CLIMBED SIGNIFICANTLY OVER THE PAST TWO, THREE YEARS, MAYBE FOUR.
THEY ARE MOVING MUCH FASTER THAN WE ARE.
>> THANK YOU. >> PART OF EVERYTHING, TOO, WE'RE TRYING TO MAKE SURE WE KEEP UP WITH NERC AS WELL. SO WE WON'T BE BEHIND NERC, WE RIGHT WITH NERC IN WHATEVER WE NEED TO DO TO INCREASE THE SYSTEM CAPACITY. WE WILL MAKE SURE WE MEET THOSE STANDARDS WHEN THEY BECOME
APPLICABLE. >> MR. CHAIR, WE'RE TALK ABOUT THESE MICRO NUCLEAR PLANTS, WHICH IS WHERE I WAS ACTUALLY GOING TO GO ANYWAY.
I'M SURE THAT NERC AND FERC ARE GOING TO HAVE TO WRITE GUIDELINES AROUND ALL OF THAT.
FMPA S THAT SOMETHING THEY ARE POTENTIALLY LOOKING AT OFFERING AND BEING ABLE TO MAINTAIN FOR SOME OF THESE PLACES KNOWING THAT , OBVIOUSLY, THEY ARE GOING TO BE AN IMMEDIATE CUSTOMER, AND ALSO WHERE THE SPACES ARE MAY END UP BEING, YOU KNOW,
[00:30:02]
HAVING TO BECOME A CITY OR SOMETHING AROUND ITSELF BECAUSE EVENTUALLY IF THERE IS NOTHING THERE, SOMETHING IS GOING TO HAVE TO GO THERE, RIGHT?>> SO I THINK THERE WERE TWO QUESTIONS IN
>> I WILL DO MY BEST TO ANSWER THAT.
SO FMPA IS INVOLVED IN -- SO YOU HAVE TWO SIDES OF THE -- YOU GOT SOME OFFENSE AND DEFENSE THERE.
THAT'S PROBABLY NOT THE BEST ANALOGY.
THE FIRST ONE IS THERE IS ALREADY EXISTING ASSETS THAT HAVE TO BE REPLACED OR MAINTAINED. FMPA HAS ENOUGH GENERATING UNITS TO PROVIDE POWER FOR THE CITIES. TO GET POWER FOR DATA CENTERS, YOU'RE TALKING ABOUT A HUGE INVESTMENT THAT SOMEBODY HAS TO FIGURE OUT TO FINISHES.
THERE IS A GREAT OPPORTUNITY FOR REVENUE STREAM.
THERE IS A GREAT RISK FOR SOMEBODY HOLDING THE BAG WITH A LOT OF DEBT THERE FOR NO --
>> I THINK I TRUST FMPA TO MANAGE THE SYSTEM
. >> I THINK THE DATA CENTERS OR PROBABLY -- MY BEST GUESS, THEY WILL PROBABLY GET INTO THE ELECTRIC GENERATION BUSINESS BECAUSE THEY WANT FULL CONTROL OF THEIR OWN TIMELINES WHERE WE CANNOT MEET THEIR TIMELINES. SO YES, I THINK THE FMPA CAN DO A BETTER JOB. I THINK THEY HAVE TO MAINTAIN CONTROL OF THEIR OWN CONSTRUCTION TIMELINES AND DEMAND OR OWN SCHEDULES. AND ALSO WEAR TALKING ABOUT GENERATING UNITS BUT THE WHOLE OTHER MUCH LARGER PROBLEM IS TRANSMISSION SYSTEM IN THE COUNTRY.
WE ARE DECADES AWAY FROM UPGRADING THAT.
IF YOU CONNECT THE DATA CENTER TO THE TRANSMISSION SYSTEM, IT WILL BE VERY OVERLOADED VERY QUICKLY, ALMOST UNSUSTAINABLY QUICKLY.
ACTUALLY, IT WOULD BE UNSUSTAINABLE ALMOST RIGHT AWAY.
[E.3. 2025 Electric Reliability Update]
SO THEY WILL HAVE TO HAVE THEIR OWN GENERATION ON SITE NO MATTER WHAT.>> ALL RIGHT. THE NEXT ITEM IS A PRESENTATION TO THE BOARD THAT PROVIDES A HIGH LEVEL OVERVIEW OF A HOW FPUA IS PERFORMING TO KEEP THE IF THEY EXPERIENCE INTERRUPTIONS OF SERVICE, HOW WE ARE PERFORMING WELL AND AREAS WE NEED TO IMPROVE AS A COASTAL CITY WITH AGING INFRASTRUCTURE IT'S A TOUGH JOB THAT OUR TEAM GETS IT DONE.
THE DIRECTOR OF GAS AND ELECTRICAL PRESENT THIS ITEM.
>> THEY'RE NOT HERE, BUT I -- .
>> GOOD NEWS, THREE FOR THREE ON THE PRESENTATIONS ALREADY IN THE AGENDA.
>> THANK YOU, MR. CISNEROS. MR. CHAIRMAN, BOARD MEMBERS, MADAM MAYOR. I'M REALLY EXCITED.
THIS IS ACTUALLY MY NEW POSITION.
THIS IS MY FIRST OPPORTUNITY TO TALK TO YOU ABOUT ELECTRIC ELIABILITY AND FOR THE LAST YEAR OF 2025. ONE OF THE THINGS WE ARE GOING TO TALK ABOUT THE OVERALL RELIABILITY PERFORMANCE IMPROVED SINCE 2023. HOW THE OUTAGE FREQUENCIES HAVE STABILIZED FOLLOWING EARLIER IMPROVEMENT WE MADE, AND HOW SEVERE WEATHER EVENTS REMAIN THE PRIMARY SOURCE OF YEAR YEAR VARIABILITY. AND SOME OF THE ONGOING RELIABILITY PROGRAMS DELIVERABLE MEASURABLE RESULTS. WE USE METRICS. THE FIRST IS SAFETY, WE CALL IT. THE SYSTEM AVERAGE INTERRUPTION FREQUENCY INDEX. HOW OFTEN THE AVERAGE CUSTOMER EXPERIENCES A SUSTAINED POWER INTERRUPTION. SWA A SUSTAINED POWER
[00:35:01]
INTERRUPTION? OVER FIVE MINUTES.SO THAT GIVES YOU SOMETHING TO GO ON RIGHT THERE.
AS YOU CAN SEE, WE HAD A RISE IN 2022.
THAT ACTUALLY IS HURRICANE IAN. THIS USES 12-MONTH ROLLING AVERAGES, SO AS YOU LOOK ON EACH SIDE OF THAT, YOU CAN SEE HOW IT FLATTENED OUT EACH SIDE OF THE SPIKE OF HURRICANE IAN AND THEN AS YOU GO FURTHER ALONG YOU SEE ANOTHER LITTLE SPIKE RIGHT THERE IN MARCH OF '24. THAT HAPPENED TO BE WHAT WE'LL SEE THERE, THAT HAPPENED TO BE -- I DON'T KNOW IF YOU REMEMBER AROUND MAY, I BELIEVE THAT'S MAY, YES, WHERE IT WAS WE HAD A VERY SEVERE STORM WITH THE TWO-INCH HAIL THAT CAME THROUGH AND DID DAMAGE.
DOES EVERYBODY REMEMBER WHEN THAT HAPPENED? THAT'S PART OF THAT AVERAGE THERE.
SO LET'S GO TO THE NEXT ONE. SAIDI, SYSTEM AVERAGE INTERRUPTION INDEX, HOW LONG. AS YOU CAN SEE, THE MINUTES RIGHT THERE AND OF COURSE YOU SEE THE SPIKE AND YOU SEE WE WERE TRENDING DOWN. WE HAVE STARTED GOING UP.
WHAT WE ARE SEEING WITH THAT IS SOME. EQUIPMENT FAILURES WE'RE HAVING IS HELPING WITH THE DURATION OF THAT ON THE SYSTEM AS A WHOLE.
CAIDI, THERE WE'VE DONE -- IT'S HOW FAST WE RESPOND TO OUR CUSTOMER.
AND I CAN TELL YOU AND WE'LL SEE THIS IN A LATER SLIDE, OUR OUR STAFF FROM ELECTRIC OPERATIONS FROM WHEN WE GET THE PHONE CALL TO WHEN WE GET OUT THERE, GET IT FIXED AND THE CUSTOMER IS BACK WITH POWER, IS MUCH BETTER THAN ALL UTILITIES. AND YOU WILL GET TO SEE THAT AT A LATER -- WHEN WE COMPARE TO THE PEERS.
AND MAIFI, THE MOMENTARY AVERAGE INTERRUPTION FREQUENCY, THESE ARE BLINKS. THESE ARE LESS THAN FIVE MINUTES IN THE YEAR. AND AS YOU CAN SEE, THE AVERAGE CUSTOMER COULD SEE RIGHT NOW WE'RE SEEING ABOUT SIX TO SEVEN BLINKS A YORE.
WOULD EVERYBODY AGREE TO THAT THAT'S IN THE UTILITY? THAT GETS POWERED BY OUR UTILITY? YOU MAY SEE THE AVERAGE CUSTOMER WOULD SEE SIX AND SEVEN. HERE'S HOW WE COMPARE TO OUR PEERS. AS IT SAYS THERE, OUR CAIDI IS BETTER THAN PEER AVERAGE IMPROVING KPUM EXPERIENCE. THAT JUST SHOWS YOU HOW MUCH FASTER WE ARE THAN OUR PEERS OF TAKING THE PHONE CALL, GOING OUT THERE, MAKING THE REPAIR AND PUTTING THE CUSTOMER BACK IN SERVICE. WE ARE PRETTY MUCH IN LINE WITH THE÷÷ S.A.V.E. AND SAIDI, IN LINE WITH THE PEERS. MOMENTARY INTERRUPTIONS ARE ABOVE AVERAGE.
WE HAVE ONGOING INITIATIVES TO TRY TO IMPROVE THAT. I WILL SHOW YOU THAT IN THE NEXT SLIDE, I BELIEVE. NO. THIS IS ON THE PRIMARY DRIVERS. SO ON THIS RIGHT HERE WE CALL THIS SEMI 5. EVERYTHING WE DO I CAN LOOK AT THE SYSTEM, I CAN TELL YOU HOW LONG WE HAVE OUTAGES, HOW OFTEN WE HAVE OUTAGES AND HOW OFTEN WE HAVE BLINKS, BUT THIS RIGHT HERE IS THE REAL DRIVER DOWN TO THE CUSTOMER BECAUSE THAT'S WHAT WE CARE ABOUT, IS HOW OUR CUSTOMER IS AFFECTED BY OUR ELECTRIC RELIABILITY. AS YOU SEE RIGHT THERE, WE EXPERIENCE FIVE OR MORE SUSTAINED OUTAGES IN A YEAR AM. WHAT WE ARE LOOKING AT MORE THAN FIVE OUTAGES IN A -- MORE THAN FIVE MINUTES. WHAT WE'RE LOOKING AT WE ARE TRYING TO TRACK THE PROBLEM AREAS WHERE WE NEED TO GO OUT AND DO WORK. TREES, IS IT WEATHER, IS IT EQUIPMENT FAILURE, AND THIS GETS IDENTIFIED.
AS YOU CAN SEE, WE HAVE ACTUALLY COME DOWN.
NOW, AS YOU LOOK OVER AT THE -- OVER AT THE PIE CHART, YOU'LL SEE THAT EQUIPMENT FAILURE IS THE NUMBER ONE. WE ARE IN THE PROCESS OF TRYING TO DO THAT. BUT WITH WHAT WE'RE FINDING ANDAND I BELIEVE MR. CISNEROS MENTIONED IT, YOUKNOW, WE KNOW OUR SYSTEM IS GROWING AND WE'RE GETTING MORE DEMAND ON EQUIPMENT.
IT'S SORT OF LIKE DRIVING A PIECE OF EQUIPMENT.
IF YOU ONLY DROVE YOUR CAR 75% OF THE SPEED IT CAN GO, YOU KNOW, NORMALLY, NORMAL WEAR AND TEAR, EVERYTHING WORKS FINE.
IF YOU HAVE TO START GOING CLOSER TO 90% OF THE SPEED OF THE EQUIPMENT, YOU ARE GOING TO WEAR IT OUT FASTER.
WHAT'S HAPPENING IS SOME OF THE EQUIPMENT IS FAILING WITH THE HIGHER DEMAND ON IT FASTER THAN WE'RE GETTING OUT THERE AND BEING ABLE TO REPLACE IT. SO THAT'S WHERE WE ARE NOW AND THAT'S WHERE WE ARE SEEING THE EQUIPMENT FAILURES.
I BELIEVE THE NEXT ONE YOU SEE IS WEATHER.
WEATHER IS WEATHER. WE HAVE A LOT OF THUNDERSTORMS, LIGHTNING, AND I THINK YOU YOU EXPERIENCE -- A LOT OF YOU EXPERIENCED THE WINDSTORM
[00:40:03]
SATURDAY. IT WAS KIND OF SCARY, WASN'T IT? BEHIND MY HOUSE I SWEAR IT WAS MORE WIND THAN THE HURRICANES WE HAVE HAD PREVIOUSLY. IT WAS PRETTY STRONG.. I WAS WAITING FOR THE PHONE CALLS.
AND THEN ANIMALS. WE'VE MADE A LOT OF HEADWAY THERE.
I WILL TALK ABOUT THAT LATER. ANIMALS CREATE A PROBLEM.
AND THEN VEGETATION. RELIABILITY PROGRAM.
SO WE HAVE A VEGETATION MANAGEMENT AREA.
WE ACTUALLY HAVE TREE TRIMMERS, EMPLOYEES, AND THEN WE ALSO CONTRACT A COMPANY TO GO OUT AND DO CUTTING. MISS BENNETT KNOWS BECAUSE WE HAVE HAD TO GO OUT TO HER HOUSE A COUPLE TIMES. SHE HAS A TREE THERE. THE GOOD THING ABOUT IT IS, IF WE ARE ABLE TO KEEP THE TREES DOWN THROUGH VEGETATION MANAGEMENT -- I TELL YOU, YOU THINK IT'S EASY TO KEEP UP. IT'S NOT.
EVERYTHING IS GROWING. WE ARE FLORIDA.
WE TRY TO CUT BACK. WE HAVE STANDARDS, EIGHT, TEN, 12 FEET BACK, THE FAST GROWING AUSTRALIAN PINES WE TRY TO CUT THEM BACK.
WE DON'T WANT TO SEE AN AREA MORE THAN ONCE EVERY THREE YEARS. MAKES SENSE.
WHEN WE TRIM, WE TRY TO TRIM BACK SO WE DON'T HAVE TO SEE THE SAME AREA IN -- FOR THREE YEARS.
AND BY TO GO THAT, IT ALSO REMOVES THE ANIMAL MITIGATION BECAUSE THEN THE ANIMALS DON'T HAVE A WAY TO GET ON TOP OF THE LINE AND SHORT THEMSELVES OUT AND CAUSE THE OUTAGE.
AND OF COURSE YOU KNOW THE ONLY WAY WE KNOW AN ANIMAL CAUSES IT IS WHEN WE GO OUT TO FIX IT, THE ANIMAL IS THERE. ANOTHER THING WE ARE DOING FOR ANIMAL MITIGATION, WE ARE PUTTING ANIMAL GUARDS. THERE ARE GUARDS WE CAN PUT ON AREAS OF THE DISTRIBUTION SYSTEM.
WHAT THAT DOES IS, IF THE ANIMAL TOUCHES IT, IT HAS GOT COVERS OVER TOP OF IT SO THEY DON'T SHORT OUT AND DOESN'T CAUSE IT.
SO EVERY TIME WE GO OUT TO AN AREA AND THERE IS AN ANIMAL HAS DAWESED THE OUTAGE, WE ADD IT THEN AND WE ARE DOING IT WHEN WE CAN ALONG THE WAY ALSO. BUT WE ALSO DO IT IF WE FIND OUT IN THAT SPOT. POLE REPLACEMENT.
OBVIOUSLY, THAT'S A PROBLEM. AND WE ARE OUT THERE WITH CROSS ARMS AND POLAR PLACES. WE HAVE A PLAN IN PLACE. IT'S CALLED -- INSPECTIONS. WE HAVE SO MANY WE HAVE TO DO A YEAR WE ARE REQUIRED.
WE HAVE EQUIPMENT REPLACEMENTS AND UPGRADES. THAT I JUST MENTIONED.
SOME OF OUR PLANNED RELIABILITY AND ONGOING ARE TRIPSAVER DEPLOYMENT. HAS ANYBODY SEEN A TRIPSAVER OUT IN THE SYSTEM? IT ACTS AS MINI- BREAK FOREUSE OF A BETTER WORD. SO LET'S SAY AN ANIMAL OR A TREE SHORTED OUT BUT THEN FELL OFF THE LINE, THE TRIPSAVER WOULD OPEN ONE TIME AND CLOSE RIGHT BACK. SO YOU MIGHT GET THE BLINK BUT YOU WON'T HAVE THE POWER OUTAGE. IT WILL DO THAT UP TO THREE TIMES UNLESS THERE IS A DIRECT SHORT OF COURSE. WHAT THAT DOES IS GIVE THE TREE OR THE ANIMAL TIME TO GET OFF THE LINE OR THE EQUIPMENT AND BE ABLE TO PUT POWER BACK ON TO YOUR HOUSE.
AND WE'RE PUTTING THEM OUT. WE PUT, I BELIEVE WE PUT OVER 115 OR 16 AND WE WILL PUT UP 260 THROUGH A GRANT PROGRAM WE ARE WORKING RIGHT NOW. I BELIEVE BY THE END OF THIS -- BY OCTOBER -- OR SEPTEMBER 30TH, WE WILL HAVE ALL 260 OUT THERE IN THE SYSTEM.
SO JUST LETTING YOU KNOW THAT. ALSO, WE HAVE A LATERAL UNDERGROUND PROGRAM. WE ARE TRYING TO DO THAT IN AREAS AND WE HAVE DONE UNDERGROUNDING WHEN WE CAN IN A HIGH, YOU KNOW, WE WERE TALKING ABOUT THE CEMI AREA, THOSE HIGH BLINK AREAS, AND THERE ARE PLACES WE HAVE PUT THEM OUT THERE. I BELIEVE LAST YEAR WE DID SHERIDAN PLAZA, FINISHED UP SHERIDAN PLAZA, AND WE JUST DID A PLACE CALLED OAK HAMMOCK THEY ARE WHAT THEIR NAME IS. OAK HAMMOCK A LOT OF OAK TREES THERE.
AND WE WERE ABLE TO GET IN THERE.
WHAT THAT DOES IS HELP US. THE PROBLEM WITH THE LATERAL IS IT IS EXPENSE INDEFINITELY. WE USUALLY DUE TO BUDGETARY SKON STRANTS USUALLY HAVE TWO OR THREE PROJECTS WE CAN DO A YEAR ON THAT.
SOMETHING NEW THAT WEAR REALLY LOOKING FORWARD TO IS SMALL FAULT INDICATOR DEPLOYMENT.
WE HAVE A GRANT AND WHAT THESE SMART FAULT INDICATORS DO IS THEY WILL TALK BACK AND LET US KNOW THINGS THAT ARE HAPPENING IN THE SYSTEM AND ALSO THINGS WHEN THEY DO HAPPEN WE CAN DIRECT THE LINEMEN RIGHT TO WHERE THEY NEED TO DO TO GO MAKE THE REPAIR. WE DO HAVE THAT A LITTLE BIT WITH OUR -- WITH THE SYSTEM WE HAVE NOW, BUT THAT RIGHT THERE WILL REALLY HELP GIVE US THE OPPORTUNITY -- WE WILL KNOW RIGHT AWAY AND WHEN THINGS ARE HAPPENING OUT THERE ARE STARTING TO HAPPEN, THEY WILL GIVE US FEEDBACK AND LET US KNOW, HEY, WE PROBABLY NEED TO GO OUT THERE AND LOOK AND MAYBE BE ABLE TO SPREE VENT SOME OUTAGES IN THE FUTURE. I WILL BE HAPPY TO ANSWER
[00:45:06]
ANY QUESTIONS ON THE RELIABILITY.>> ANY QUESTIONS OF THE BOARD?
>> IN WHAT AREAS HAVE YOU HAD TO GO OUT TO THE MOST?
>> IT'S DIFFERENT -- MOSTLY, IT'S WHERE TREES -- TREES ARE A PROBLEM.
LIKE I JUST MENTIONED, OAK HAMMOCK THAT WAS A VERY BIG PROBLEM. AND REALLY THERE IS NOT A WHOLE LOT OF PEOPLE THAT LIVE IN THERE, SIX OR SEVEN HOMES.
>> YES, MA'AM. AND AREAS LIKE THAT.
WE DO TRACK THAT EVERY MONTH. AND THAT AREA THERE IS ONE. AND THESE ARE PLACES, LIKE I SAY, THAT ARE SEEING THE MOST BLINKS A YEAR, YOU KNOW.
AND OUTAGES. AND WE IDENTIFY THOSE AND WE PUT THEM ON A LIST ON PRIORITY AS WHO IS SEEING -- AND WE TRY TO MITIGATE THOSE -- THOSE AREAS -- IN THOSE AREAS, WE TRY TO DO IT THROUGH OUR RECLOSERS. I CALL THEM RECLOSERS, TRIP SAVERS. AND OUR -- THE -- OUR TREES. TREES COULD BE AN ISSUE. LY SAY THAT OUR CREWS DO A VERY GOOD JOB. THEY ARE GOING THROUGHOUT AND CUTTING BACK A LOT BETTER AND MAKING IT SO IT WILL LAST THREE YEARS. THE MORE AND MORE WE TO THAT,THE BETTER IT WILL BE FOR THE CUSTOMER. AND WE HAVE A CONTRACTOR WHO ACTUALLY THIS JUST -- JUST THIS -- THEY DO THE BIGGER, LONGER FEEDER RUNS IS WHAT WE TRY TO USE THE CONTRACTOR FOR. AND THEY JUST FINISHED ON THE BEACH. THEY FINISHED ON
A1A. >> MISS BENNETT, USUALLY THE AREAS WITH A LOT OF TREES ARE THE MOST AFFECTED THROUGHOUT THE CITY. SO IT'S ALL OVER THE CITY. ALSO HIGH WIND AREAS, ANY AREAS THAT EXPERIENCE A LOT OF HIGH WINDS, WE ALSO HAVE SOME OUTAGES THERE. BUT TREE TRIMMING IS TREE TRIMMING AND ANIMALS, SQUIRRELS ARE USUALLY THE BIG CULPRIT OF RELIABILITY, YOU KNOW, THE ITEMS AFFECT RELIABILITY NUMBERS.
AND WE HAVE TREE CITY USA, IS THAT RIGHT, MAYOR, FOR TEN YEARS IN A ROW?
I WAS OFF BY -- NEARLY 40 DECADES -- OR FOUR DECADES THROUGHOUT THE ENTIRE CITY, WE JUST -- IT'S EVERYWHERE.
>> TREES ARE A GOOD THING. >> THEY'RE GREAT.
>> AND I WILL SAY THAT WE TRY TO WORK WITH THE CUSTOMER BECAUSE THERE MAY BE ANOTHER UTILITY THAT OPERATES IN THIS AREA.
YOU HAVE PROBABLY SEEN THE TRIMMING THEY DO. IT LOOKS LIKE THIS.
>> MM-HMM. >> SO WE TRY NOT TO DO THAT.
WE DON'T WANT TO BE OUT THERE EVERY WEEK CUTTING EITHER.
WE HAVE TO TRIM BACK TO A CERTAIN DEGREE. WE ACTUALLY DO HAVE AN SOP FOR DOING THAT TEND OG THE TYPE OF TREE AND WHAT'S -- THERE ARE PLACES WE HAVE BAMBOO PLANTED UNDERNEATH POWER LINES. DO I NEED TO TELL YOU HOW FAST BAMBOO GROWS? AND AUSTRALIAN PINES. YOU KNOW HOW THE AUSTRALIAN PINES BLOW IN THE WIND AND RAIN. YOU KNOW, BUT WE TRY TO -- YOU KNOW, LIKE I SAID, WE ARE A -- WE TRY TO WORK WITH OUR CUSTOMERS ON THAT AND EXPLAIN TO THEM THEIR RELIABILITY AND
WHAT THAT DOES FOR THEM. >> MR. CHAIR?
>> YES. >> SO I HAD TWO QUESTIONS.
FIRST OF ALL, AMI IMPLEMENTATION. SEEN A CORRELATION WITH US INSTALLING IN THE AMOUNT OF TIME POWER TO GO BACK ON BETWEEN THE TWO NOW THAT WE'VE GOT AMI
OUR ELECTRIC OPS PEOPLE THERE, THEY ARE TABLE TO GO IN THERE AND SEE, OKAY, THEY GET A CALL IN. THEY ARE ABLE TO GO IN. WE DON'T HAVE IT WHERE IT LETS US KNOW RIGHT AWAY. WE START GETTING THE CALLS AND NOWHERE POWER IS OUT, WHAT FEEDERS ARE OPEN AND THEY START MODELING RIGHT AWAY.
ONCE THEY GET A MODEL, BY THE TIME WE GET THE LINEMEN TO WORK ON IT, THEY NOTE RIGHT WHERE THEY NEED GO AND THE AREA THEY NEED TWO GO. OBVIOUSLY, YOU CAN SEE HOW THE TIME IS COMPARED TO OUR PIERCE HOW FAST WE GET OUT THERE. IT'S ONLY GETTING BETTER. AS WE GET THESE -- THE GOOD THING IS, WE WON'T HAVE AS MANY TRUCK ROLLS -- WE MIGHT HAVE A POWER OUTAGE, LET'S SAY WHERE WE HAD A CUTOUT, THERE IS A FUSE, A TREE MIGHT HIT IT AND EVEN THOUGH IT COMES OFF -- MIGHT BEBE ENOUGH TO OPEN THE CUTOUT, YOU KNOW, LOAD A FUSE FOR USE OF A BETTER TERM IF -- WITH THESE TRIP SAVERS THAT WE ARE GOING TO IMPLEMENT AND ALREADY HAVE IN AREAS LIKE THAT, IT WOULD BE -- IT WOULD GIVE IT TIME TO GET OFF THE TREE, FALL DOWN, ANIMAL TO GET OFF, AND THERE IS NEVER A POWER OUTAGE FOR THE CUSTOMER EXCEPT FOR A BLINK EXCEPT YOU HAVE TO RESET THE TIME ON THE STOVE AND MICROWAVE.
MA'AM. >> SO WITH THAT THEN YOU SAID THAT YOU DON'T HAVE TO TELL YOU WHEN
[00:50:01]
IT'S DOWN. IS THAT SOMETHING THAT WE INTEND TO DEPLOY LATER FOR IT TO BE MORE PROACTIVE THAN REACTIVE?>> YES, MA'AM. WE HAVE AS PART OF OUR MASTER PLAN TO INTEGRATE AMI WITH THE OUTAGE MANAGEMENT SYSTEM SO WE KNOW BEFORE THE CUSTOMER DOES. WE ALSO NOTIFY THE CUSTOMER BEFORE THEY HAVE TO CALL US BECAUSE THEY TYPICALLY WANT TO LET US KNOW HER OUT OF POWER.
THIS ALLOWS US TO TELL THE CUSTOMER WE KNOW YOU ARE OUT OF POWER BEFORE THE CALL COMES IN.
THAT WAY THE PHONE LINES STAY OPEN FOR ENERGY CALLS.
I SAY TRUE EMERGENCY CALLS FOR LACK OF A BETTER WIZARD.
911 CALLS, SOMETHING THEY CAN GET THROUGH BETTER TO US.
>> HAS ANYBODY RECEIVED THE TEXT
>> MORE THAN, I BELIEVE IT'S 50 ARE OUT?
>> I AM NOT SURE. >> I BELIEVE IT'S 50 CUSTOMERS ARE OUT. TEXT POWER GOES TO -- THAT'S WHEN I GET NOTIFIED, 50 OR MORE. HEY, YOU'RE OUT OF POWER AND WE PLAN ON GETTING IT AND IT LETS YOU KNOW IT CAME BACK.
>> YES. >> IT WORKS WELL AND SAVES ON A LOT OF PHONE CALLS.
>> SURE DOES. THAT'S PART OF IT.
RIGHT NOW WE HAVE TO DO THAT BY MODELING DONE BY THE SYSTEM
OPS. >> JUST A TINY LITTLE SIDE NOTE.
I DID FIND IT CRAZY THAT THERE WERE 17% OF THE OUTAGES WERE AS AN UNKNOWN, WHICH --
>> I CAN EXPLAIN THAT. >> MAYBE NOT THAT CRAZY, BUT TO ME IT SEEMED LIKE IT WAS
PRETTY -- >> WELL, REMEMBER, WE ARE NOT GOING WALK THE LINE LOOKING FOR THAT ANIMAL.
SO SOMETIMES A TREE COULD HAVE COME -- A BRANCH COULD HAVE HIT IT. IT CAUSED THE OUTAGE AND IF FALLS -- BUT WE DON'T -- IT'S NOT OBVIOUS. UNLESS IT'S OBVIOUS, THEY ARE NOT GOING TO MAKE UP THAT A LIMB OR A TREE OR SOMETHING LIKE THAT. IF IT'S EQUIPMENT FAILURE, WE WILL KNOW BECAUSE IT'S NOT COMING BACK.
IF A FUSE IS BLOWN, CUTOUT IS OPEN, WE'RE GOING TO KNOW THAT. BUT THAT'S WHAT THE UNKNOWNS ARE. IF THAT ANSWERS YOUR QUESTION?
>> SO I WOULD WANT TO D BACK TO I THINK OUR CUSTOMERS ARE REALLY, REALLY SUPPORTIVE OF THE RELIABILITY -- I MEAN, THEY GET THE RELIABILITY OF FP WAY. AND I THINK IT'S -- WE'RE GETTING BETTER AT LETTING THEM KNOW THAT WE KNOW THERE IS AN OUTAGE BECAUSE IF YOU FOLLOW SOCIAL MEDIA, SOMEBODY WILL SAY, WELL, I DON'T KNOW, I HAVE BEEN TRYING -- AND SOMEBODY ELSE SAYS, THEY KNOW, THEY KNOW. SO I THINK THAT OUR EMPHASIS ON RELIABILITY IS EQUALLY IMPORTANT AS SOMEHOW THE CUSTOMERS HAVE GOT TO KNOW THAT WE KNOW AND WE'RE WORKING ON IT. AND I KNOW WE'RE -- WE ARE DOING THAT, BUT I'M JUST SAYING I THINK THAT'S REALLY IMPORTANT BECAUSE THEY ARE INCLINED TO -- I HAVE HAD PEOPLE TELL ME, THEY CAN'T BELIEVE HOW FAST FPUA ROW STORES THEIR POWER.
THEY ARE NOT UNHAPPY WHEN THE POWER IS OUT. THEY ARE UNHAPPY IF THEY DON'T KNOW THAT WE KNOW THAT IT'S OUT.
>> YEAH. THAT'S ONE OF THE BIG AREAS OF IMPROVEMENTS WE ARE MAKING. AMI IS PART. INTEGRATION FROM AMI TO GERMANY S IS PART OF THE MASTER PLAN. I THINK WE'RE WORKING ON THAT THIS YEAR. .
WE BE DOING A GREAT JOB. IF THEY DON'T KNOW, LIKE YOU SAY, THE PHONE LINES ARE BUSY. THEY DON'T KNOW WE KNOW, THEY EXPRESS THEIR FRUSTRATION ON SOCIAL MEDIA. I'M TRYING TO FIND OUT -- YOU
KNOW. >> AND OUR PAS DEPARTMENT, YOU
>> SUSTAINABILITY WITH RACHEL, THEY HAVE DONE A GOOD JOB OF ANSWERING THOSE QUESTIONS AND GETTING US OUT THERE IF THINGS HAPPEN LIKE THAT, TOO. YOU KNOW HOW SOCIAL MEDIA IS.
YES, MA'AM. WE DO A GREAT JOB.
>> MR. CHAIRMAN , I WOULD LIKE TO MAKE NOTE THAT I AM EXCITED ABOUT THE NEW OPPORTUNITY AND YOUR NEW ROLE. AND TO KNOW THAT WE ARE SO CONSCIOUS OF HOW WELL WE'RE SERVING OUR CUSTOMERS, JUST REALLY MAKES ME FEEL GREAT ABOUT WHAT WE'RE DOING AND TO BE AWAREAWARE OF THE REASON THAT WE'RE SO CONSCIOUS OF IT IS BECAUSE IT MATTERS AND WE CARE. AND WOULD LIKE TO COMMEND YOU FOR THAT AND OUR CEO BECAUSE EVERYBODY'S ABOUT THE DOLLAR. AND THERE ARE A LOTLOT CONCERNS IN VARIOUS INDUSTRIES, ESPECIALLY THIS INDUSTRY.
BUT CUSOMER RESPONSE AND CUSTOMER SATISFACTION HAS ALWAYS BEEN SOMETHING THAT I HEAR RINGING THROUGHOUT THE ORGANIZATION REGARDLESS OF WHERE I GO TO SPEAK WITH ANY OF THE MANAGEMENT TEAM.
THEY ALWAYS COME BACK TO HOW WELL THEY CAN SERVE
[00:55:01]
THE CUSTOMER THROUGH THEIR EFFORTS, AND THIS IS SUCH A GREAT EXAMPLE.>> I'M JUST WANTING TO COMMEND YOU.
>> I CAN'T TAKE CREDIT. I TELL YOU, I HAVE BEEN OUT IN THE FIELD WITH THE LINEMEN AND I THINK AS A WHOLE, FPUA AS A WHOLE, I BELIEVE OUR LINE CREWS ARE OUT THERE EVERY DAY. THEY ARE POLITE TO EVERYBODY. THEY TRY THEIR BEST TO HELP THE CUSTOMERISM HAVE SET UP IN SYSTEM OPERATIONS AND HEARD THEM TALK THROUGH A CUSTOMER AFTER WE HAD A BLINK AND SOMETHING'S HAPPENED AT THEIR HOUSE AND THEY ARE TALKING TO SOMEBODY WHO HAS NO IDEA WHAT AN ELECTRICAL PANEL IS AND THEY ARE WALKING THEM THROUGH HOW THEY CAN CHECK THEIR ELECTRICAL PANEL OR SOMETHING HAPPENED TO THEIR WATER AND THEY HAVE WALKED THEM OUTSIDE ON THE CELL PHONE AND THEY -- I MEAN, THEY SPEND A LOT OF TIME DOING THAT. THEY REALLY DO HELP THEM OUT. I AM SURE CUSTOMER SERVICE DOES THE SAME THING IN THE DAY HOUSE. THIS IS AFTER HOURS I AM HEARING THIS.
IT'S NOT ABNORMAL. THE STARCH HAS BEEN DOING THAT MANY YEARS NOW, MA'AM.
>> I APPRECIATE YOUR ATTENTIVENESS.
[E.4. Garden City Power Transformer Replacement]
>> THANK YOU. >> HE IS STAYING FOR THE NEXT ITEM BECAUSE HE HAS A FORMAL
REQUEST. >> IT'S A REQUEST FOR A WAIVER OF FORMAL SEAL BID FOR THE REPLACE. OF A POWER TRANSFORMER ALT OUR GARDEN CITY SUBSTATION. I HAVE CONNECTED WITH THE BOARD MEN'S TO TALK ABOUT THE UNEXPECTED OUTAGE OF OUR 167 MVA POWER TRANSFORMER AT THE GARDEN CITY SUBSTATION. AS A REFRESHER, TWO SITES RECEIVED POWER FROM THE STATE TRANSMISSION GRID, ELECTRIC TRANSMISSION GRID. THAT'S AT HARTMAN SUBSTATION AND GARDEN CITY SUBSTATION. WHAT WE'RE TALKING ABOUT NOW IS GARDEN CITY. AT BOTH LOCATIONS WE DO HAVE OUR POWER TRANSFORMERS THAT ARE MEETING THE END OF LIFE BECAUSE THEY ARE 30 OR 35 YEARS OLD DEPENDING WHAT SITE YOU'RE AT.
AND IT'S TYPICALLY NOT A BIG DEAL, BUT THE LEAD TIMES ON THESE TRANSFORMERS ARE REALLY IMPACTING OUR SCHEDULE AND THEY ARE IN VERY BIG DEMAND. THANKFULLY, THE GARDEN CITY TRANSFORMER OUTAGE WAS REVOLVED AND THE POWER TRANSFORMER IS BACK IN SERVICE AND WE WILL CONTINUE TO TEST THE OIL AND DO SOME OTHER TEST TO GO MAKE SURE IT CONTINUES TO OPERATE NORMALLY.
THE TRANSFORMER HAS BEEN VERY WELL MAINTAINED. IT'S ONE OF THOSE THINGS WE HAVE GOTTEN OUR MONEY'S WORTH OUT OF IT AND UNFORTUNATELY IT'S LIKE GOING DOWN THE HIGHWAY WITH, YOU KNOW, A GOOD TIRE. EVERY ONCE IN A WHILE, YOU GET A FLAT.
IT'S ONE OF THOSE THINGS. BUT AT SOME POINT YOU HAVE TO REPLACE THE TIRES.
THAT'S KINDA WHAT WE ARE TAKE ABOUT HERE.
ADDITIONALLY, THE TRANSFORMER AT GARDEN CITY THIS POWER TRANSFORMER WAS PART OF OUR TEN- YEAR CAPITAL PLAN. BETWEEN LEAD TIMES, END OF LIFE AND A COMBINATION OF LEAD TEAMS AND END OF LIFE SOONER RATHER THAN LATER.
>> THANK YOU, MR. CISNEROS. MR. CHAIRMAN, BOARD MEMBERS, MATTED AMAR'E. I ALSO GET THIS OPPORTUNITY TO PRESENT -- WE HAD AN EVENT.
IT HAPPENED DECEMBER 6TH. I BELIEVE THAT WAS ON A FRIDAY EVENING. AND I GOT THE PHONE CALL.
I SAW IT. I CALLED, SAID, WHAT HAPPENED? THEY SAID, WE HAVE LOST THIS TRANSFORMER IN THE SYSTEM SAND IT IS OUR LARGEST IN THE SYSTEM. THERE IS NO TRANSFORMER BIGGER IN OUR TRANSMISSION SYSTEM.
AND SO WHAT IS IT? THE 138. IT TIES THE 138 SERVING OUR 69 LOOP THAT GOES TO ALL OF OUR SUBSTATION. THAT FED FROM JULIA, THE LINE WE OWN ALL THE WAY FROM THE INDIAN RIVER COUNTY LINE ALL THE WAY HERE, THE 138 LINE THAT FEEDS GARDEN CITY.
SO WHAT HAPPENED IS WE HAD A FAILURE. WE KNOW THAT NOW OF THE LOW SIDE, WHAT WE CALL THE LOW SIDE. 69 KV PHASE B BUSHING.
THE GOOD THING IS ALL OF OUR PROTECTIVE RELAYS DETECTED IT AND ISOLATED THE TRANSFORMER.
UPSTREAM AND DOWNSTREAM BREAKERS OPENED BECAUSE OF THIS.
ALSO, THE HIGH -- THERE IT IS. THE HIGH SIDE AND LOW SIDE BREAKERS OPENED AS DESIGNED AND THE EVENT WAS CONTAINED TO GT3 AND NO CUSTOMER INTERRUPTIONS. THE REASON THERE WERE NO CUSTOMER INTERRUPTIONS IS BECAUSE OF LIKE MR. CISNEROS SAID WE ARE ALSO FED THE 138 TO THE 69 WITH THE TWO TRANSFORMERS AT HARTMAN, HT 1 AND 2. THIS IS AN OLDER ONE RIGHT HERE, I BELIEVE.
YEAH. WE HAVE MADE SOME -- I HAD A BETTER POWERPOINT. THIS IS THE ONE THAT ORIGINALLY GOT POSTED THAT I WAS GOING TO ADD.
WHAT WE DID, WE IN CONJUNCTION WITH FMPA AND CONTRACTORS, WE CALLED AN OUTSIDE CONTRACTOR IN THAT DOES THIS WORK, AND THEY RESPONDED IMMEDIATELY WHICH WAS AMAZING.
AND IT OF REALLY A SIGHT TO SEE. THEY WERE OUT THERE I
[01:00:03]
BELIEVE EIGHT DAYS FROM THE TO THE FINISH.THEY CONDUCT AND INTERNAL INSPECTION AFTER THEY REMOVED THE OIL. AS YOU CAN SEE, THAT'S THE -- THAT'S THE 69 BUSHING ON THE GROUND AND THE ONE TO THE RIGHT IS THE NEW ONE GETTING -- IT WAS TESTED IN THAT POSITION AND YOU CAN SEE WHAT IT'S SUPPOSED TO HOOK LIKE RIGHT THERE. IT ACTUALLY EXPLODED INSIDE THE TRANSFORMER.
CERAMIC EVERYWHERE. THEY WENT IN AND CLEANED THAT UP, CLIMBED AROUND ALL THE -- INSIDE THE TRANSFORMER, VACUUMED OUT THE BOTTOM, FLUSHED IT OUT AND GOT THE PIECES THOUGH COULD FIND AND GET OUT OF THE TRANSFORMER.
AS YOU CAN SEE, IT SAYS DEBRIS WAS REMOVED. THE TRANSFORMER OIL WAS PROCESSED. WHAT THAT MEANS IS THEY ACTUALLY BROUGHT A TRACTOR- TRAILER IN, A TANKER AND IT -- THEY FILLED UP A TRAILER FULL OF OIL FROM THE TRANSFORMER AND THEN WE WENT TO PUT IT BACK IN, IT WAS FILTERED AND WHEN THEY -- FILTERED ON THE WAY IN. WHEN IT GOT IN THEN THEY PUT A VAC UP ON THE TRANSFORMER AND THEY BOIL THROUGH A VACUUM ANY OF THE GASES CREATED BY THE ARCING AND EXPLOSION THAT HAPPENED INSIDE THE TRANSFORMER.
TO TRY TO GET SOME EF THOSE GASES OUT AND THEY FILTERED IT SO MANY -- I THINK WE RAN IT FOR 48 HOURS, AND YOU CAN RUN IT FROM 24 TO 48.
THEY FELT THAT WAS GOOD FOR NOW. AND THEN THEY DID ELECTRICAL TESTING BOTH SIDES. AND IT SAID EVERYTHING WAS WITHIN PARAMETERS AND WERE ABLE TO PUT IT BACK ONLINE. STAFF AND EVEN THE CONTRACTOR, WE CALLED IT A CHRISTMAS MIRACLE BECAUSE THESE THINGS USUALLY DON'T COME BACK LIKE THIS. AND THIS IS THE SECOND INCIDENT WE HAVE HAD WITH THIS. IT'S A DIFFERENT THING.
WE WERE HAVING PROBLEMS WITH THE LOAD TAP CHANGER AND WE ENDED UP NEUTRALIZING IT JUST PUTTING OUT 69,000 VOLTS.
IT CAME WITH A MOVABLE ONE. BECAUSE WE WERE HAVING PROBLEMS IT STARTED LEAKING.
WE HAD TO REPLACE IT. THIS IS THE SECOND INCIDENT WE HAVE HAD WITH THIS TRANSFORMER. IT SAYS HERE, THE INDEPENDENT REVIEW, WE SENT THE DATA TO FMPA AND HAD THEM LOOK ALSO.
I WANT TO GIVE THEM CREDIT. FMPA WAS THERE FOR ME EVERY DAY AND DID EVERYTHING THEY COULD IF THE CONTRACTOR WHICH I DIDN'T HAVE ANY PROBLEM WITH, THEY GOT IN TOUCH WITH THEM, AND THEY MADE SURE EVERYBODY WAS THERE EVERY DAY DOING WHAT THEY COULD.
SO IT WAS A GOOD PARTNERSHIP AND FMPA WAS INSTRUMENTAL IN KEEPING THIS GOING.
THERE WAS EVIDENCE OF A PROLONGED OVERHEATING HAPPENING WHICH WE WOULDN'T KNOW INTERNALLY. AND ONE OF THE THINGS THEY BELIEVE SIMILAR DEGRADATION OF SOME MECHANISMS MAY EXIST IN THE UNIT. AT LEAST THEY ARE PASSING FOR NOW. FUTURE WOULD LIKELY BE HIGHHIGH PLANNED AND HIGHER CONSEQUENCE. BASICALLY, WHAT I WILL TELL YOU IS IF THIS WOULD PUT US AND I BELIEVE -- I AM GOING TO SAY THAT IN THE NEXT -- YES, WILL.
WE WOULD BE IN WHAT WEWE CALL AN MINUS ONE CONDITION. WHAT THAT MEANS IS IN AN END MINUS ONE CONDITION WE WOULD HAVE A MAJOR ASSET DOWN. AND THEN, IF WE WENT INTO AN M MINUS 1-1, LOST A HARTMAN TRANSFORMER WHILE THIS WAS OUT, MR. CISNEROS ALLUDED TO IT, WE HAVE AN OPPORTUNITY TO GET IT EVEN NOW WITH A NEWER TIMELINE OF POSSIBLY 24 MONTHS, A LOT OF MANUFACTURERS ARE GIVING 48 MONTHS. I MEAN, COULD YOU IMAGINE WAITING THREE OR FOUR YEARS IN THE SUMMERTIME? WE WOULD HAVE A HARD TIME MAINTAIN OUR LOAD, ESPECIALLY WITH THE INCREASED DEMAND WE HAD. IF WE LOST ONE OF THOSE TRANSFORMERS, NOT TO SCARE YOU, MISS DAVIS, BUT WE WOULD HAVE -- WE COULD HAVE ROLLING BLACKOUTS IN THE CITY BECAUSE OF THAT. SO THAT'S HOW IMPORTANT THIS IS. THIS AGAIN IS NOT THE ONE THAT WE ACTUALLY HAD, BUT I'LL USE IT. SO WHAT WE'RE DOING HERE IS -- IS GT3 IS 35 YEARS OLD OF A 40- YEAR NORMAL LIFE EXPECTANCY.
I WILL TELL YOU GOOD NEWS. A NEW TRANSFORMER WITH THE NEW MATERIAL AND HOW THEY DO TESTING, THEIR LIFE IS 60 YEARS NOW. THAT IS A GOOD THING.
WE'LL NEVER SEE -- I DON'T THINK WE WILL SEE THAT ONE REACH END OF ITS LIFE. AS MR. CISNEROS SAID, IT ALLIANCE WITH THE TEN-YEAR CAPITAL PLAN. AND WHAT WE ARE ASKING IS A WAIVER OF FORMAL SEALED BID.
THE TRANSFORMER WAS TEMPORARILY FIXED, IS WHAT WE SAY. IT'S END OF LIFE WOULD PUT US END MINUS ONE CONTINGENCY, AND THERE IS A -- AT THE SHORT END, IT'S A 24-MONTH LEAD TIME TO REPLACE THIS.
AND MOST ARE 36 TO 48 MONTHS TO RECEIVE THESE SIZE
[01:05:03]
TRANSFORMERS. DID YOU WANT TO ADD TO WHAT YOU ALREADY SAID ABOUT THE LEADSO THE LEAD TIMES ARE DEFINITELY IN THE 36 TO 48- MONTH TIMEFRAME. SO WE'RE -- I THINK WE ARE FORTUNATE TO GET TO THE 24-MONTH TIMEFRAME. THE OTHER THING THAT I WANT TO MENTION IS THAT THE EXISTS TRANSFORMER IS 167 MVA AS PART OF THE MASTER PLAN WE ARE GOING TO SELECT A 200 MVA SO WE HAVE CAPACITY FOR THE FUTURE, PROBABLY NOT FOR A DATA CENTER, BUT DEFINITELY CAPACITY FOR GROWTH WITHIN THE CITY.
AND I WANT TO MENTION, I KNOW STEPHANIE PROBLEM PLAY WILL HELP ME WITH THIS, BUT WE ARE -- THE ASK TODAY IS TO APPROVE THE PURCHASE WITH THIS VENDOR SPECIFICALLY, BUT WE WILL CONTINUE ADVERTISE.
WE WANT TO KEEP THIS MOVING TO GET IN THE QUEUE BECAUSE WE HAVE TO GET IN THE QUEUE FOR PRODUCTION. I AM SURE I MISSED SOMETHING
THERE. >> I WAS GOING TO READ THE FORMAL BSF FROM THIS POINT. SO JUST SO YOU KNOW, I WILL READ THE FORMAL BSF. WE WANT TO APPROVE THE WAIVER OF FORMAL SEAL BID PROCESS TO ENGAGE WITH THE VENDOR FOR PURCHASE OF 200 MVA POWER TRANSFORMER FOR THE GARDEN CITY SUBSTATION LOCATED AT 819 NORTH 21ST STREET.
THE TRANSFORMER IS ESTIMATED TO COST 6.25 MILLION WHICH INCLUDES PROCUREMENT, ENGINEERING, MANUFACTURING, DELIVERY. UPON BOARD OF APPROVAL, STAFF INGAUGES WITH VIRGINIA TRANSFORMER AND NEGOTIATE A CONTRACT WITH TERMS AFTER RECEIPT OF A FORMAL QUOTE.
THE RESULTING CONTRACT WOULD BE EXECUTED BY THE BOARD CHAIR.
AND YOU'LL 'BE HAPPY TO ANSWER ANY QUESTIONS YOU HAVE.
>> THIS IS $6.25 MILLION, RIGHT? DO WE HAVE TO PAY ALL OF IT NOW?
>> OKAY. WE DID HAVE THAT ON A SLIDE.
I WILL READ THAT TO YOU RIGHT HERE. WE HAVE IT IN THE -- SO THE WAY WE WERE GOING TO DO IT, AS OF THIS YEAR, LET'S SAY WE HAD A PO AND WE WERE GOING TO PAY.
IT WOULD BE 1.9 MILLION UPON APPROVAL. THAT WOULD COME OUT OF THE 2026 BONDS THAT WE ARE ALREADY GETTING VIA THE LINE OF CREDIT. 1.9 THIS YEAR.
NEXT FISCAL YEAR WOULD BE ANOTHER 1.9 MILLION.
AND THAT WOULD STILL BE PART OF THE 2026 BONDS.
AND THEN OUR PLAN IS, IN THE LAST PAYMENT, WHICH WOULD BE 2.4 MILLION --
>> YOU ARE DOING MATH? >> IT'S A BIG NUMBER.
>> YOU USUALLY FOLLOW ALONG. WE PLAN ON DOING THAT THROUGH RATE FUNDED, FISCAL YEAR 2028. BUT IT WOULD BE -- THE ARRIVAL WOULD BE THE END OF CALENDAR 2027 IS THE ARRIVAL OF THE TRANSFORMER. IT WOULD ALREADY
BE AFTER ÷÷OCTOBER. >> WE WERE PLANNING TO DO THIS ANYWAY AT SOME POINT, RIGHT? REPLACE THIS TRANSFORMER?
>> FIVE TO TEN YEARS OF OUR TEN-YEAR PLAN. WE KNEW IT WAS REACHING THE END OF LIFE, HOW CRITICAL IT WAS.
BUT -- >> SO WE MOVED IT UP HOW MUCH?
>> ANYWHERE BETWEEN FIVE AND TEN YEARS TO NOW BECAUSE IT WAS GOING TO BE IN THE PLAN.
>> FIVE JEERS IS THE EASIEST WAY, YES,
MA'AM. >> OKAY. SO IN OTHER WORDS WE WORKED OUT HOW TO TAKE THIS OUT.
BUDGET WITHOUT -- >> YES, MA'AM.
>> YES, MA'AM. WE ARE GOING TO BE DOING THE BOND 2026 BOND TO PAY FOR IT, THE LINE OF CREDIT AND THEN WORK IT INTO THE CAPITAL RATE FUNDED BUDGET FOR THE THIRD YEAR. WE DO HAVE A FINANCIAL PLAN TO PAY FOR IT.
>> MY ONLY QUESTION IS, IS WHAT IF WE FIND A CHEAPER PRODUCT? HOW ARE YOU GOING TO GET ANY OF THAT MONEY BACK?
THAT'S WHY WE ARE GOING OUT RIGHT NOW.
WHERE WE WERE BEFORE, WE WERE LIKE THERE IS A -- THEY ARE GIVING US AN OPPORTUNITY TO GET IN THE QUEUE FOR MANUFACTURING. I WILL TELL YOU THEY ARE THE SAME ONES WHO GAVE US TWO BRAND-NEW ONES VIRGINIA TRANSFORMER AT HARTMAN SUBSTATION. WE KNEW THEIR TIMELINE AND PRICE. WE ARE STILL GOING -- WE WILL ADVERTISE FOR TWO WEEKS AND WE PUT IT ON A SYSTEM CALLED --
>> RC. WE WOULDN'T KINDA CHECK UNTIL AFTER THESE TWO WEEKS, TWO OR THREE WEEKS -- THREE WEEKS -- THREE- WEEK NOTICE TO ALL VENDORS.
>> WE WILL EVALUATE IT. >> SO BASICALLY, THERE WILL BE
ABOUT A THREE-WEEK -- >> YES, SIR.
>> -- DELAY BEFORE WE SHOW THE OUTLAY.
>> YES, SIR. >> RIGHT PRICE, RIGHT LEAD TIMES?
>> WE WON'T CHECK UNTIL AFTER YOU SIGN ANYTHING AND WE WILL MAKE SURE TO WALK THAT THROUGH WITH YOU. IF NOT VIRGINIA, SOMEBODY ELSE. WE WOULD HAVE TO BRING IT BACK TO THE BOARD FOR APPROVAL. THE BOARD WOULD KNOW OR THE BOARD APPROVESAPPROVES IT TODAY THEN YOU WOULD HAVE
[01:10:03]
TO RATIFY IT WITH YOUR SIGNATURE IF THEY ARE THE LOWEST BIDDER AND WE MEET THE TIMELINE THAT WE ARE LOOKING FOR.>> NOT THE LOWEST BIDDER, BEST YOU VALUE?
THAT WAY. >> COST, TIME, THE WHOLE THING, YES, THANK YOU.
>> YOU MIGHT FIND A CHEAPER PRICE BUT THEY MAY SAY 36 MONTHS.
>> EXACTLY. THAT DOESN'T WORK FOR
US. >> I WOULD LIKE TO HEAR FROM THE ATTORNEY TO MAKE SURE WHAT WE'REWE'RE TO GO PROPER.
>> YES, MA'AM. THEY HAVE KEPT ME IN THE LOOP.
WE HAVE WORKED THROUGH THIS ITEM AS A TEAM TOGETHER AND THE ADVERTISEMENT IS ONE WEEK BEYOND WE WANTED TO GIVE ANY POTENTIAL SUPPLIERS THE OPPORTUNITY TO PROVIDE US WITH A BID THAT MEETS OUR NEEDS.
BUT THE FOCUS HERE IS ON THE BEST VALUE TO THE FPUA, WHICH IS A FOCUS ON LEAD TIME IT TAKES TO GET THIS PRODUCT. NOT NECESSARILY ON THE PRICE.
>> ANY OTHER QUESTIONS P BOARD?
A COUPLE OF THINGS HERE. YOU MENTIONED ABOUT THIS TRANSFORMER CURRENTLY GETTING OVERHEATED AND US NOT KNOWING. NEW TRANSFORMERS DO THEY HAVE AN ALERT TYPE SYSTEM, SOME WAY TO, YOU KNOW, LET US KNOW SOME SORT OF A CENSOR IN THERE IF THERE IS A PROBLEM?
>> YES, MA'AM. EVERY TRANSFORMER HAS A HIGH TEMPERATURE CENSOR.
THEY -- >> AND PRESSURE SENSORS.
EVERYTHING WENT OFF ON THIS. WHEN THAT ARCED, IT CREATED PRESSURE INCREASE INSIDE AND POPPED ALL THE ALARMS. WE KNEW THAT. WE GOT THAT ALARM AND THEN WENT OUT AND TIMELY SAW A MANUAL ALARM. WE KNEW IT HAPPENED. THERE WAS A SLOW HEATING. IT'S LIKE A SIMMER ON A STOVE, SOMETIMES DOWN IN. THAT'S WHAT THEY SAID. THEY SAW SOME HEATING.
ALL THEY CAN GO ON IS VISUAL. WE BROUGHT THAT BACK UP AND ONE OF THE PLANS WE ARE GOING TO DO FOR THIS, WE PLAN ON TAKING THIS TRANSFORMER BEFORE WE GET INTO THE WHEN WE REALLY NEED THE LOAD, YOU KNOW, THE TRANSFORMER FOR THE LOAD WE ARE GOING TO CREATE.
ONE OF THE THINGS WE PLAN ON DOING IN EARLY APRIL, TAKE IT DOWN FOR THREE TO FOUR DAYS AND RECLEANING THE OIL, YOU KNOW, FILTERING IT AND CLEANING IT UP SOME MORE TO MAKE SURE. WE WANT TO -- WE'RE BABYING IT.
WE WILL BABY IT FOR USE OF A BETTER WORD. THERE MIGHT BE A BETTER WORD.
>> YES, MA'AM, THERE ARE PRESSURE SENSORS FOR
TEMPERATURE. >> WHEN THIS IS DONE, RIGHT, WE ARE SUPPOSED TO HAVE ANOTHER FIVE OR TEN YEARS ON THIS PIECE OF EQUIPMENT. IF IT WAS ANY OTHER PIECE OF EQUIPMENT, WE MIGHT BE ABLE TO SELL IT.
DOES THIS HAVE ANY RESALE VALUE?
>> WE WOULD DEFINITELY VAULT THAT.
RIGHT NOW SOME TRANSFORMERS LIKE THE OLDER ONES GO OVERSEAS TO ANOTHER COUNTRY THAT -- THAT'S THE RIGHT PRICE POINT FOR RESALE VALUE. BUT WHO KNOWS SOMEBODY ELSE MAY NEED SPARE PORTS OR WE MAY JUST KEEP
IT -- >> HAVE IT FOR SPARE PARTS?
>> ALL RIGHT. GOOD TO KNOW. AND THEN WHAT WAS THE OTHER QUESTION? THERE WAS ONE -- OKAY. $6 MILLION WE'RE BORROWING 1.9 TWO TIMES IN A ROW. THE NUMBER THAT WE INITIALLY DISCUSSED USING THIS LINE OF CREDIT FOR, HAS THAT BEEN ADJUSTED NOW BECAUSE OF THIS OR WAS THIS ONE OF THOSE ITEMS THAT YOU KNEW MIGHT AND YOU BUILT A CUSHION IN?
>> I'VE GOT THAT ANSWER. YOU WANT
ME TO ANSWER? >> MICHELE IS GOING TO COME UP:
LN I KNOW. >> THE ORIGINAL LINE OF CREDIT WAS FOR $15 MILLION. THIS WILL NOT INCREASE ANY KIND OF LINE OF CREDIT NEEDS THAT WE HAVE. WE ACTUALLY HAVEN'T HAD TO DO IS A DRAW YET. THIS IS GOING TO BE WHEN, YOU KNOW, WHEN WE GET A VENDOR AND HAVE TO ISSUE THE FIRST, IT WILL BE THE FIRST DRAW THAT WE DO. IT'S NOT GOING TO INCREASE ANY KIND OF BUDGET, NOT INCREASE THE LINE OF CREDIT, NOT GOING TO INCREASE THE PROPOSED ISSUANCE THAT WE ARE GOING TO NEED
EITHER. >> OKAY. THAT'S GOOD. ALL RIGHT.
>> MR. CHAIRMAN, AND I TRIED TO MEETING, THE ASK IS TO SPEND THE MONEY, OF COURSE, FOR THE TRANSFORMER, BUT THE OTHER PART OF THE ASK IS TO WAIVE YOUR NORMAL PROCESS, YET GOING- BUT BEING IN ADHERENCE WITH THE CITY CHARTER, AND USING AURSI AS YOUR SOURCE TO GO AFTER ADDITIONAL BIDS AND ALLOW THAT TO REMAIN FOR A COUPLE WEEKS AND THEN SUBSEQUENT TO THAT YOU WILL DO AN AUTO ASSIGN TO
[01:15:07]
VIRGINIA TRANSFORMATION COMPANY?>> NOT -- AFTER THE TWO WEEKS, IF WE GET SOMEBODY THAT'S LOWER AND DEPENDING ON THE EVALUATED BID.
>> IT'S BETTER THAN THEM, THEN WE WOULD HAVE TO COME BACK TO THE BOARD. AM I RIGHT? WOULD YOU LIKE -- YOU WANT TO HELP ME OUT, STEPH?
>> YES. SO WE'RE RUNNING TWO PROCESS CONCURRENTLY TO CUT DOWN ON THE LEAD TIME. THE BOARD ADOPTED A FORMAL SEALED BID PROCESS, WHICH IS -- IT TAKES UP TIME.
SO WE'RE REQUESTING THAT THE BOARD WAIVE THE SEALED BID PROCESS AND INSTEAD ALLOW US TO ADVERTISE FOR THREE WEEKS, WHICH IS LODGER THAN WHAT THE CHARTER REQUIRES, AND IF AFTER THE END OF THE THREE WEEKS WE DO NOT SEE ANY QUOTES THAT MEET OUR NEEDS, WE WILL PROCEED WITH ISSUING THE PURCHASE ORDER FOR VIRGINIA TRANSFORMERS.
WE WANTED TO GET THIS IN FRONT OF THE BOARD AS QUICKLY AS POSSIBLE, DIDN'T WANT TO WAIT ANOTHER TWO WEEKS, WHICH IS WHY --
MAYBE I PASSED ON A COUPLE OF THE STEPS IN THE PROCESS. BUT ULTIMATELY SHOULD YOU NOT GET A BETTER THAN VIRGINIA TRANSFORMATION, YOU ARE PLANNING TO USE THIS COMPANY.
COMPANY? >> I COULD TELL YOU THAT THEY PROVIDED OUR TWO BRAND- NEW TRANSFORMERS AT HARTMAN SUBSTATION FOR TT 3, THE PROJECT WE ARE WORKING ON NOW, THEY MET THEIR TIMELINES. THEY ACTUALLY WORKED WITH US.
ONE OF THE REASONS THAT THEY -- THAT WENT TO THEM TO FIND OUT FIRST, WE WERE JUST LOOKING AROUND. WHEN GT3 FIRST FAILED, I IMMEDIATELY HAD STAFF, OKAY, START LOOKING AND SEEING IF THERE IS ONE OUT THERE BECAUSE WE WERE SCARED AT THE TIME.
LIKE I SAID, THESE TRANSFORMERS NORMALLY DON'T COME BACK. AS THEY WERE LOOKING AND THEY TALKED THEM, THEY -- VIRGINIA TRANSFORMERS WAS ONE OF THE COMPANIES THEY TALKED TO.
AND WE KIND OF HAD A LITTLE BIT OF A GOOD RELATIONSHIP BECAUSE DURING THE PURCHASE OF THE TWO TRANSFORMERS AT HARTMAN, THEY MADE SOME MISTAKES WITH SOME NUMBERS.
BUT THEY FIXED IT. BECAUSE WE WERE SO UNDERSTANDING AND EVERYTHING, THEY FELT THEY OWED US SOMETHING.
SO ONE OF THE THINGS THEY ARE WILLING TO DO NOW -- BUT WE ARE STILL LOOKING FOR THE BEST DEAL FOR FPUA -- IS THEY TOLD US THAT THERE ARE 6 TO 12 SHOTS WHEN WE FIRST STARTED TALKING TO THEM ABOUT FOR MUNICIPALITIES. AND I'M ASSUMING OUR -- THEY USE THE WORD SPECIAL CUSTOMERS. I AM ASSUMING WE ARE EITHER ONE OF THE TWO, WE ARE A MUNICIPAL. AND WHAT THEY SAID IS WHEN YOU LET US KNOW, WE WILL SEE IF YOU FIT IN THERE. WELL, AS OF FRIDAY, WHEN MR. CISNEROS CAME BACK AND WAS TELLING US ABOUT HOW THE DATA CENTERS ARE SPENDING FOUR TIMES THE AMOUNT OF MONEY TO BUY THE SAME TRANSFORMERS AND WE ARE UNLUCKY ENOUGH IT THAT THE 200 MVA TRANSFORMER WE WANT TO BUY IS EXACTLY THE SIZE THE DATA CENTERS ARE LOOKING FOR.
THAT SCARED US A LITTLE BIT. SO WE SAID, HEY, IF WE GOT YOU A PO -- AT THE TIME WE WERE JUST ASKING QUESTIONS. THEY SAID, WE WILL PUT YOU NUMBER ONE IN THE QUEUE.
AND WE WILL BE ABLE TO GET IT TO YOU FASTER.
WE ARE LIKE, OKAY. WE CALLED AND TALKED TO THEM AND SAID WE CAN'T DO THAT BECAUSE WE HAVE A WAY WE HAVE TO DO THINGS BECAUSE OF OUR CHARTER THAT THE TWO WEEKS, WHICH IS THE MINIMUM OF ADVERTISEMENT. THEY ARE WILLING TO WORK WITH US AND HOLD OUR -- RIGHT NOW THEY ARE SAYING THEY WILL HOLD US IN THE QUEUE DURING THAT TIME PERIOD. THAT IS A GOOD THING THAT THEY ARE WORKING WITH US. AND WE KNOW THERE IS DEMAND FOR
THESE TRANSFORMERS. >> I GUESS I'M THINKING ABOUT A COMPANY THAT WILL BE GIVEN 1. 9 AND ANOTHER 1.9 IN ANOTHER YEAR. AND I DON'T SEE ANYTHING IN THE PRESENTATION TO LEAD ME TO UNDERSTAND WHO THIS COMPANY IS. WE DON'T GET A PRODUCT --
>> YES, MA'AM. VIRGINIA TRANSFORMERS IS THE LARGEST U.S.- OWNED POWER TRANSFORMERING MANUFACTURER IN THE U.S.
NOVEMBER BEEN IN BUSINESS SINCE 1971.
THEY HAVE SIX FACILITIES AROUND THE U.S. AND MEXICO.
AND LIKE KEITH MENTIONED, WE HAVE USED THEM BEFORE FOR ANOTHER PROJECT, THE HEART SUBSTATION PROJECT.
YOU THEY ARE A WELL-KNOWN COMPANY.
WE CAN FOLLOW UP WITH YOU WITH
ADDITIONAL -- >> I NEEDED TO KNOW THAT INFORMATION ABOUT THE COMPANY WE ARE SENDING THIS MONEY TO.
>> YES, MA'AM. THEY ARE VERY, VERY -- WELL, VERY WELL-KNOWN IN THE ELECTRIC INDUSTRY
>> THIS ACTUAL TRANSFORMER, I DO KNOW THIS ALREADY, THIS TRANSFORMER WOULD BE MANUFACTURED IN GEORGIA. AT A PLACE IN GEORGIA, WHICH WE WOULD END UP GOING UP TO THERE WHEN THEY CHECK OUT THE TRANSFORMER TO MAKE SURE THAT IT IS WORKING. AND THEY WOULD HAVE TO SHOW US THAT AND EVERYTHING. SO I DO KNOW THAT.
I BELIEVE IT'S -- WHEREVER IT IS, I FORGET THE NAME.
IT'S LIKE AN HOUR, THREE HOURS NORTH OF SAVANNAH.
[01:20:02]
>> HOPEFULLY, THAT ANSWERS YOUR QUESTION, MISS DAVIS.
>> HOPEFULLY, THAT ANSWERS YOUR QUESTION ABOUT THE COMPANY?
>> YES, I DIDN'T KNOW ANYTHING ABOUT THE COMPANY.
>>> GO TO THE TRANSFORMER STORE, DO YOU?
>> THANK YOU. >> I'LL MOVE APPROVAL.
[E.5. Extension of Service Agreement with Florida Gas Transmission Company, LLC]
>> NEXT ITEM. >> I WILL TAKE THE NEXT ITEM.
IT'S A REQUEST TO EXTEND OUR CURRENT SERVICE AGREEMENT WITH THE FLORIDA GAS UTILITY COMPANY FOR GAS CAPACITY. YOU MAY REMEMBER THE CAPACITY CONVERSATION WE HAVE HAD OVER THE LAST COUPLE OF MONTHS TO PROVIDE BACKGROUND, THEY ARE THE PRIMARY OWNER OF THE MOST OF THE PIPE TRANSMISSION IN THE STATE OF FLORIDA. THIS ARGUMENT WOULD TAKE AFFECT FEBRUARY 2027 FOR ANOTHER TEN YEARS. BY APPROVING THIS SERVICE AGREEMENT WE WOULD CONTINUE TO LOCK IN OUR EXISTING CAPACITY NEEDS FOR OUR CITY AND ALSO LOCK IN THAT VERY LOW CAPACITY PRICE, WHICH IS 51.5 CENTS IN COMPARISON, THE MARKET IS TWO TO THREE TIMES THAT. SO I'M EXCITED TO LOCK THIS IN BECAUSE IT IS A LOSS COST AND PART OF OUR MASTER PLAN FOR CAPACITY.
AND AS LONG AS WE RENEW THIS, THIS AGREEMENT, WHICH WE GET TO RENEW EVERY TEN YEARS OR SO, WE ARE LOCKED IN AT THAT PRICE. THERE IS ADJUSTMENT EVERY THREE TO FIVE YEARS.
BUT IT'S USUALLY VERY MINIMAL, VERY A COST OF INFLATION ADJUSTMENT.
AND, HOPEFULLY, THAT ANSWERS THE MAJORITY OF THE ITEMS -- MAJORITY OF THE QUESTIONS RELATED TO THIS ITEM AND I'M HAPPY TO ANSWER ANY
QUESTIONS. >> QUICK QUESTION. THIS TIES INTO NOT -- THIS IS OUR ORIGINAL KPISTY, NOT THE ADDED --
>> THAT'S RIGHT. >> WE ARE GETTING READY TO DO?
>> THAT'S RIGHT. FOR THE ADDITIONAL FACILITY TO BE IMPACTFUL, WE NEED TO KEEP
SO WE WON'T HAVE -- WE WILL HAVE TWO SEPARATE AGREEMENTS, ONE FOR THE OLD CAPACITY, ONE FOR THE NEW CAPACITY GOING FORWARD?
>> THEY WOULDN'T MERGE THEM BECAUSE THEY ARE DIFFERENT PRICES AND VOLUMES ASSOCIATED WITH THEM.
>> ANY OTHER QUESTIONS OF THE BOARD?
>> THIS, MR. CHAIRMAN, IS A FORMALITY. WE HAVE ALREADY --
>> IT IS A FORMALITY, BUT STILL REQUIRES BOARD APPROVAL.
BUT IT'S IMPORTANT FOR THE BOARD TO KNOW THAT THE CAPACITY IS FOR TEN YEARS AND AT THE PRICES AT THAT LOW NUMBER.
[E.6. Amendment No. 1 to FDEP Grant Agreement (LPA0525) to Add $5,000,000 of Grant Funds]
>> I THINK SHE MAY -- ANYWAY. SHE MAY HAVE
>> SHE SAID IT. EXCELLENT. MR. CHAIRMAN, A REQUEST TO APPROVE A GRANT AGREEMENT AMENDMENT WITH THE FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION FOR AN ADDITIONAL $5 MILLION TOWARDS THE CONVEYANCE SYSTEM TO OUR PLANT ON MARTINEZ, UTILITY GRANT SPECIALIST WILL PRESENT THIS ITEM.
>> GOOD AFTERNOON, CHAIR, MEMBERS. BOARD.
I AM MONSERRATH MARTINEZ, THE UTILITY GRANTS SPECIALIST FOR FPUA. TODAY WE ARE REQUESTING BOARD APPROVAL FOR AMENDMENT NUMBER ONE TO THE DEP GRANT AGREEMENT LPA 0525 FOR THE CONVEYANCE PROJECTS IN SUPPORT OF THE RELOCATION OF THE WASTEWATER TREATMENT PLANT OF SOUTH HUTCHINSON ISLAND. THIS PROJECT IS ALREADY UNDERWAY. IN AND REPRESENTS A SIGNIFICANT INVESTMENT IN THE LONG TERM ENVIRONMENTAL PROTECTION AND INFRASTRUCTURE IMPROVEMENTS OF THE COMMUNITY.
THE AMENDMENT BEFORE YOU RELATES SOLELY TO ADDITIONAL FUNDS.
DURING THE 2025 LEGISLATIVE SESSION, THE STATE OF FLORIDA APPROPRIATED AN ADDITIONAL $5 MILLION TO SUPPORT THIS PROJECT SPONSORED BY REPRESENTATIVE -- AND SENATOR --. THIS FUND SOMETHING DESIGNATED TO REIMBURSE A LEGIBLE COST TIED TO THE ZION AND CONSTRUCTION OF THE CONVEYANCE SYSTEM NEEDED TO REDIRECT THE FLOW TO THE NEW WASTEWATER TREATMENT PLANT.
THESE FUNDS OFFSET THE COST THAT WOULD OTHERWISE BE FUNDED THROUGH CUSTOMER RATES AND APPROVAL OF THIS AMENDMENT -- FINANCIAL POSITION BY MAXIMIZEK EXTERNAL FUNDING, LIMITING PRESSURE ON CUSTOMER RATES AND MAINTAINING FULL GUIDELINES WITH THE REQUIREMENTS. IT WILL ALSO ALLOW THE STAFF TO CONTINUE SUBMITTING REIMBURSEMENT REQUESTS WITHOUT INTERRUPTION AS THE PROJECT PROCESSES.
IT FLEKTS ENVIRONMENTAL AND OPERATIONAL BENEFITS TO THE CITY OF FORT PIERCE. STAFF REQUESTS THE THAT ARE
[01:25:04]
ZBLIEGS TO APPROVE AMENDMENT NUMBER ONE, LPA 0525.THANK YOU FOR YOUR TIME AND ATTENTION AND I WILL BE HAPPY TO ADDRESS ANY QUESTIONS YOU MIGHT HAVE.
>> SOUNDS TO ME LIKE WE ARE BEING ASK TO RECEIVE $5 MILLION.
>> YOU ARE. JUST TO BE CLEAR, EVERYBODY VOTES YES ON THIS ONE.
>> THERE IS NO OTHER OPTION, I AGREE.
[E.7. GFOA Award for Excellence in Financial Reporting]
>> YES, MA'AM. >> THE NEXT ITEM IS A PRESENTATION FOR FINANCIAL EXCELLENCE AWARD.
MICHELE HARRIS, CHIEF FINANCIAL OFFICER, WILL PRESENT THIS ITEM.
>> >> THANK YOU, CHAIR, BOARD MEMBERS, MAYOR. THE GOE RECOGNIZES STATE AND LOCAL GOFRMTS BEYOND THE REQUIREMENTS OF GENERALLY ACCEPTED ACCOUNTING PRINCIPALS AND THE AFR. FISCAL YEAR HAS BEEN JUDGE BID AN IMPARTIAL PANEL TO MEET HIGH STANDARDS OF THE PROGRAM.
AND A DEMONSTRATES TRANSPARENCY AND FULL DISCLOSURE.
CURRENTLY OUR FISCAL YEAR 2025, RIGHT IN THE MIDDLE OF THE AUDIT. WE WILL BRING IT TO YOU IN MARCH. THE CERTIFICATE OF ACHIEVEMENT IS RECOGNITION IN THE GOVERNMENTAL ACCOUNTING AND FINANCIAL REPORTING:FISCAL YEAR 2024 IS THE -- YEAR THAT FPUA HAS BEEN RECOGNIZED.
THANK YOU THE FINANCE STAFF TO IMPLEMENTING NEW RECORDING STANDARDS, RESPONDING TO RECOMMENDATIONS OF THE PREVIOUS AWARDING COMMITTEE. WE ARE PROUD ALSO ESPECIALLY BECAUSE WE PREPARE THIS ENTIRE DOCUMENT IN HOUSE. AND I AM JOINED BY THREE PEOPLE WHO ARE -- MAKE THAT HAPPEN.
ANDREA, OUR FINANCE MANAGER, KATIE, AND TAUNIA, ACCOUNTING SUPERVISORS.
THEY ARE PART OF THE CORE ACCOUNTING STAFF WHO PUT IT TOGETHER ANNUALLY. ACKNOWLEDGE BOARD AND MANAGEMENT FOR SUPPORT THROUGHOUT THE YEAR.
AND I WANTED TO THANK YOU, THANK EVERYONE FOR
[F. DIRECTOR COMMENTS]
THEIR CONTRIBUTIONS.>> CONGRATULATIONS. >> THANK YOU.
>> THE NEXT BOARD MEETING FEBRUARY 3RD AT 4:00 P.M.
IN THESE CHAMBERS. WE DO HAVE A COMMUNITY FEEDBACK FORM ON JANUARY 29TH AT 6:00 P.M. AT YAHWEH MINISTRY, MRS. BENNETT'S SITE. SO WE LOOK FORWARD TO THAT.
ANSWERING QUESTIONS AND, HOPEFULLY, BUILDING, CONTINUE TO BUILD TRUST AND CONFIDENCE IN FPUA WITHIN THE COMMUNITY. LAST THING, THANK THE FPUA BOARD, CITY COMMISSIONERS, CITY STAFF, FPUA STAFF, EVERYBODY INVOLVED FOR THE RIBBON-CUTTING FRIDAY. IT WAS A GREAT DAY FOR FPUA, AND I'M GLAD THAT IT WENT DOWN. IN MY OPINION, WENT REALLY WELL. HAPPY FOR EVERYBODY'S PARTICIPATION, ESPECIALLY THE
[H. BOARD MEMBER COMMENTS]
FPUA STAFF. THEY IS A GOOD JOB. THAT'S ALL I WILL HAVE FOR THE BOARD, MR. CHAIRMAN.>> THANK YOU. ANY COMMENTS FROM THE ATTORNEY?
>> ANY COMMENTS FROM THE BOARD MEMBERS?
>> SO, MR. HARIMANN, I DID HEAR THAT THE RIBBON-CUTTING FROM A PERSON WHO ATTENDED THAT USED TO WORK FOR ANOTHER UTILITY COMPANY IN THIS AREA, AND SAID ONE OF THE THINGS THAT REALLY STRUCK HERE ABOUT FPUA WAS THE REAL COMMITMENT TO EXCELLENCE IN THE FAMILY FIELD AND SHE SAID WORKING FOR FPUA MUST BE VASTLY DIFFERENT THAN WORKING FOR AN INVESTOR-OWNED K SHE REALLY -- SHE FELT ALL OF THAT AT THE RIBBON-CUTTING, THE SORT.
FAMILY, THAT EVERYBODY IS PULLING TOGETHER, EVERYBODY IS RECOGNIZED FOR THEIR CONTRIBUTION, AND SO I THOUGHT THAT WAS KIND OF A GOOD TESTAMENT TO FPUA AND ITS CULTURAL.
>> SOMETHING TO BE PROUD ABOUT.
>> EVERYBODY GET A TOUR OF THE FACILITY? I HAD TO LEAVE, UNFORTUNATELY.
I DIDN'T. BUT I FIGURE I DO THAT DOWN THE
ROAD. >> YOU'VE GOT TO GET BACK TO
WORK. >> WE CAN MAKE SURE TO COORDINATE --
>> ONE DAY I WOULD LIKE TO TAKE A LOOK AT EVERYTHING.
IT WAS TRULY IMPRESSIVE, THE SITE OUT THERE. I MEAN, WHEN YOU FIRST WENT, IT WAS DIRT.
I REALLY HAD NO VISION OF HOW BIG THIS PLACE WAS GOING TO BE.
BUT THEN, YEAH, IT WAS IMPRESSIVE.
IT'S DEFINITELY A MARVEL OF ENGINEERING.
>> I'D LIKE TO FIND THE PICTURE.
WE WENT OUT WHEN IT WAS JUST GRASS. YOU AND I AND BO, TO TAKE A PICTURE OF WHAT IT LOOKEDK LIKE, BEFORE AND AFTER.
>> I I WILL FIND YOU DRIVING THE
BULL TOZER FOR SURE. >> YES, RIGHT, THANK YOU VERY MUCH.
YOU WON'T SEE IT AGAIN. I NEED THE PICTURE.
>> A
* This transcript was compiled from uncorrected Closed Captioning.