Title
Draft Resolution - Review and Approval of Power Supply and Energy Management Policy - L Cunningham
Other Info
Submitted By: A. Nelson on behalf of Markets
Department: Markets
Financial Impact and Cost/Benefit Considerations: The Policy will continue to be managed by the Markets Department and costs are budgeted in the PEC business plan as part of the cost of power.
Discussion
The Board previously adopted in August 2019 the Power Supply and Energy Management Policy (the "Policy").
This Policy is intended to detail current practices as well as establish and govern a sustained commitment to create and maintain a formal Power Supply and Energy Management Program that cost-effectively manages PEC's power supply and energy requirements to meet the objectives established in the policy and the Board approved Power Supply Plan.
Pursuant to the Board's Policy on Policies, the Board routinely reviews all Board policies as part of its policy management.
Minor cleanup and non-substantive clarifications were made throughout the Policy. Substantive changes to the Policy are listed below:
* Changing the required members of the Power Supply and Energy Management Committee, in Section 3.4.2.1 of the Policy: Not require the Chief Operating Officer (COO) and Vice President of Engineering, while adding the Vice President of Compliance and Regulatory or designee, and allowing the Controller to have a designee assigned.
* Change the requirement for reporting of items in Section 3.4.2.5 from quarterly to semiannually and as needed.
* Change the requirement for reporting to the enterprise risk management function of the cooperative in Section 3.4.2.6 from quarterly to as needed.
* Change the requirement for reporting in Section 3.5.1 from a quarterly to a monthly requirement.
* Add a requirement for a member of the Power Supply and Energy Committee in Section 3.5.2 to report to the Board on the Cost of Power monthly.
* Add a requirement to memorialize the practice of ma...
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