Title
Resolution - Approval of 2019 Capital Improvement Plan (CIP) Budget Amendment for Battery Energy Storage Solution (BESS) Project - B Gedrich
Other Info
Submitted By: Brian Gedrich
Department: Engineering
Financial Impact and Cost/Benefit Considerations: This action would transfer unused Capital Improvement Plan (CIP) funds of $3.3 million from three other projects and reallocate to the CIP Budget for Utility Scale Battery Energy Storage project for 2019.
Discussion
The Board previously approved the BESS project in 2018 which includes a grant from TCEQ for a portion of the ultimate project costs. Section 4.2.1 of the Board's Budget Policy requires approval from PEC’s Board of Directors to transfer unused funds between CIP budget categories. The approved 2019 CIP budget included CIP funds for Misc. Distribution Equipment ($1.8 million), Darden Hills Construct 46.7 MVA Substation ($1.4 million) and Mobile Circuit Switcher Upgrade ($100,000). In order to commence the battery project in 2019 the approved funds referenced should be reallocated to the CIP Utility Scale Battery Energy Storage project category.
Body
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, that the Board approves the reallocation from and transfer of funds to the Cooperative's 2019 Capital Improvement Budget as described herein; and
BE IT FURTHER RESOLVED, that the Chief Executive Officer or designee is authorized to take such actions as needed to implement this resolution.