May 2007

LA PLATA ELECTRIC ASSOCIATION, INC.
Durango, Colorado

The regular monthly meeting of the Board of Directors of La Plata Electric Association, Inc. was held Wednesday, May 16, 2007, in the headquarters building in Durango, Colorado. Director Alley led the board in the Pledge of Allegiance.

President Patton called the meeting to order at 9:00 A. M., with the following directors present:

Absent: Jerry McCaw

Also present were:
Greg Munro, Chief Executive Officer
Barry Spear, Attorney
Dan Hammond, Chief Financial Officer
Steve Gregg, Manager of Operations
Ron Meier, Manager of Engineering
Mark Schwantes, Director of Corporate Services
Linda Wilsey, Executive Secretary

Guests: (As listed on the sign in sheet)
None

AGENDA
President Patton asked if there were any additions or changes to the agenda.

CONSENT BOARD ITEMS
The consent board items were presented and reviewed.

ITEMS REQUIRING BOARD ACTIONS
Director reimbursements were presented and reviewed.

Committee of the Whole 5/14/07

Budget Finance & Audit Committee

Systems' Operations & Planning Committee

Board Meeting 5/16/07

Meetings

CEO REPORT
CEO Munro expanded and updated some of his written report items. He answered questions on his report.
CFO Hammond gave the April 2007 financial report. He advised that sales were slightly lower than forecasted and power costs were slightly higher. All other expenses were as forecasted.
Questions were taken and answered on the member opportunity report.
President Patton addressed the questions that are planned for the upcoming customer satisfaction survey. Regarding satisfaction of calls handled in the call center, she voiced concern that after the automated message states there are zero people ahead of the caller, there can still be a long wait, as evidenced in her last call to LPEA. Staff will explore betters way of handling calls on hold.

COMMITTEE OF THE WHOLE MEETING
The Committee met on Monday, May 14th. Evaluation of the CEO was started and will continue at the end of this meeting in executive session. President Patton commented that Monday's meeting was very full and expressed her appreciation for staff's preparations for such meetings.

ADMINISTRATION COMMITTEE
Due to time restraints, the Administration Committee was unable to meet on Monday. President Patton indicated today's schedule will allow discussion so the committee addressed the two agenda items.
CEO Munro reviewed information for the Annual Meeting in September.
Board Policy 103, Delegations of Authority from the Board of Directors to the Chief Executive Officer (CEO) was reviewed. A red-lined copy of the changes will be handed out to the committee next month and action taken at the June board meeting.

BUDGET FINANCE & AUDIT COMMITTEE
Director Gardella reported that a resolution opening an account and establishing a line of credit with CoBank was reviewed and two revisions made. Resolution 2007-06 has a list of authorized officers and a cap of $5M set on the line of credit.

SYSTEMS' OPERATIONS & PLANNING COMMITTEE
Systems' Operations & Planning Committee met on Monday and reviewed two resolutions regarding a Power Purchase Agreement and a Generation Contract. CEO Munro advised that final action on the two resolutions, Resolutions 2007-04 and 05, has been postponed until June.

EXECUTIVE SESSION
President Patton requested an executive session for the Indeterminate Load Presentation.

The board went into executive session at 10:40 A.M.

The regular board meeting reconvened at 11:25 A.M.

LA PLATA ELECTRIC ROUND UP FOUNDATION
Director Brodsky gave the Round Up Foundation report. The loss of 60 members last month was attributed to the college students leaving the area as school got out. Seven requests were presented for funding. The largest request was from TARA Historical Society, wanting to build a community center in the Navajo Lake area. They gave a presentation and requested $10,000. The Round Up Foundation agreed to fund them incrementally a total of $8,000 if they meet their funding needs.
Due to groups coming to the foundation year after year seeking monies, Round Up is considering a policy limiting the number of times a group can request assistance.

FASTTRACK REPORT
Dan Hammond, giving his last report for FastTrack, reported that the new General Manager, Steve Dorf, will begin on May 29th. CEO Munro noted that he has asked Steve to come to LPEA sometime to meet the Board and perhaps LPEA's Committee of the Whole meeting in June would be a good time.
The new corporate counsel of Crane, Leake & Ehlers was hired by FastTrack.

WESODI REPORT
Director Goff gave the WESODI report, with the current financials handed out to the directors. He indicated one change on the financials that would be an adjustment in next month's financial report.
In April, there were 107 employees, down two from March. Fuel prices are negatively affecting the construction projects but action is being taken to have the upcoming project bids reflect the increase in fuel costs. Hiring reliable employees continues to be a challenge; an applicant is being interviewed for a line superintendent position.

CREA REPORT
Director Compton reported that CREA put their emphasis on two legislative issues; the Renewable Energy Standards Bill and Net Metering Bill. The governor signed the Renewable Energy Standard Bill and the Net Metering Bill was amended to the degree that it only adds some additional safety and insurance requirements to the existing statute. Since the net metering issue is expected to return next year, the coops are being encouraged to look at and possibly revise their current net metering policies to be more workable, much like LPEA's policy.
Director Compton attended the NRECA Legislative Conference. Five major issues were discussed; climate change, RUS loan funding, the railroad crisis, the power marketing administrations, and Clean Renewable Energy Bonds. Other legislative actions affecting the electric utility business were reviewed.

TRI-STATE REPORT
Director Goff noted the two written reports in the board packet and handed out information on the Holcomb Expansion Project. Tri-State's E& O Committee addressed and the Board approved two additional cooperatives obtaining some of their power, up to 5%, from sources other than Tri-State; they are San Miguel and La Plata Electric.

ATTORNEY REPORT
Attorney Spear gave a verbal report, reviewing action taken on the condemnation case in which LPEA is currently involved. The CREA attorney's meeting is scheduled for next Friday. He is working with CEO Munro and staff on the PURPA hearings.
A question was raised as to why the contracts involved with Resolutions 2007-04 and 05 are marked confidential. Attorney Spear indicated that LPEA is being cautious since the contracts contain the name of a large industrial customer. Following discussion, the decision was made to ask permission for using the customer's name on the contracts.

STRATEGIC PLANNING
President Patton plans to work on getting the LPEA Mission Statement reviewed, and having more discussions on strategic planning sessions.

WESTERN UNITED REPORT
Director Formwalt reported that Western United has decided to expand the outside area by 30,000 sq. feet. They continue having problems getting transformers but other materials are available. He noted the check LPEA received for the 2002 Patronage Allocation from Western United in the amount of $24,049.74.

FUTURE COMMITTEE OF THE WHOLE MEETINGS AND AGENDA ITEMS
The Committee of the Whole will meet Monday, June 18th. The Administration Committee will address Board Policy 103 and receive updates on the Annual Meeting. A presentation on LPEA's energy efficiency program will be given. The two pending contracts should be finalized so action can be taken on the Resolutions 2007-04 and 05.
The board was reminded that the June 20th board meeting will be held in Pagosa Springs at the Community Center. Transportation will be made available to anyone wishing it.

EXTERNAL MEETINGS
The LPEA Spring Party is being held Saturday, May 19th at Durango Park.
Director Goff advised that he will not be able to attend the August Tri-State Membership meeting being held August 8, 2007; a member representative will need to be chosen for that meeting.

EXECUTIVE SESSION

Following a short break taken at 2:00 P.M., the board went into executive session.

The regular board meeting reconvened at 2:50 P.M.

With no further business, the meeting adjourned at 2:55 P.M.

Recorded by Linda Wilsey
Original Signed by Tom Compton, Secretary
Original Signed and Approved by Pam Patton, President

R E S O L U T I O N 2007-06
A PDF file / unable to include

Original Signed by Tom Compton, Secretary

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