Darrin Gordon

The meeting covered new business discussions regarding an escrow agreement related to a purchase customer territory, involving a $100,000 down payment made approximately 15 years ago, with a current offer being entertained for early payoff to free up cash. The board discussed a proposed budget reflecting changes, including investing water bond proceeds and an adjustment to the large industrial rate class in the electric fund, resulting in increased interest income for the water fund and a revenue reduction for the electric fund. Significant discussion focused on replacing aging infrastructure (1970s connections) for improved system reliability, a project with an estimated cost of $10 million, potentially offsetting this cost through financing over 20-25 years and eliminating a monthly fee for a substation. The board also addressed securing future energy needs by seeking approval to go out for live pricing for peak energy block contracts for the summers of 2017 through 2019, with a ceiling price not to exceed $35.50 per megawatt hour. Additionally, the successful culmination of a water bond sale with a true interest cost of 3.11% was reported, marking a significant financial success. The meeting concluded with plans to approve a letter of intent for the infrastructure project and necessary documentation related to the bond closing.

The meeting commenced with the invocation and the Pledge of Allegiance. Key discussions revolved around major infrastructure projects and operational reports. The General Manager's report detailed updates on the Northeast Generation Project, where the Board holds 42% ownership in the Fulton Energy Center component, and the Hannibal Energy Center project, including down payments made for two Titan 350 units. Another significant topic was the cured-in-place pipe technology being utilized for sewer rehabilitation on Main Street to Warren Barrett Drive to prevent groundwater infiltration, as well as lining storm water pump station discharge pipes. Operational updates covered electric system performance, operator licensing achievements at the water plant, minor water distribution repairs including a major leak on James Road that necessitated a boil order, and wastewater collection plans for chemically treating roots. Safety discussions included cold weather preparation, fire extinguisher inspections, and general OSHA compliance. Progress on projects like the North Street Stormwater improvements (Phase One nearing completion) and Bear Creek Dam spillway improvements was also noted.

The Board convened in a closed session to discuss matters pertaining to litigation, negotiations, contracts, and personnel, in accordance with specific sections of the Missouri Sunshine Law. Following the closed session, the board adjourned the meeting.

The meeting commenced with the approval of the Consent Agenda, which included minutes from the November 17, 2025 meeting, and payrolls and claims for November 2025. Key discussions included the General Manager's report on the unsettled capacity market, the partnership with MPUA to manage MISO auction impacts, and the initiation of a sewer rehabilitation project using Cured-In-Place Pipe (CIPP) technology. The Operations Report highlighted a system availability rate of 99.997% due to aggressive tree trimming and outage reduction efforts, noted that five of six operators at the Water Treatment Plant are now licensed, and confirmed no Sanitary Sewer Overflows occurred in November. Project progress across Electric, Water, Sewer, and Stormwater systems was reported as acceptable. New Business involved the presentation of the draft Five-Year Capital Improvements Plan, which is scheduled for final approval in January 2026. The Board unanimously approved an antenna attachment agreement with the Missouri Department of Conservation to install bat tracking antennas on the new Southside Water Tank. Finally, the Board rescheduled the January and February 2026 meetings due to holiday conflicts. A closed session was held to discuss litigation, personnel, and contracts.

The public hearing addressed a proposed 15% rate increase, down from an initial proposed 16% increase, due to adjustments in asset and project timelines. Key discussions revolved around the three components of the electric bill: electricity purchase cost (sourced from Prairie State Generation Plant), transmission costs, and capacity charges. The capacity charge has seen a significant increase, driven by fleet changes, the retirement of coal units like Rush Island, planned maintenance outages, and lower accredited capacity from renewables like solar farms, resulting in a projected $4.6 million capacity charge for the current year, up from $3.4 million the previous year. The entity must secure this revenue increase to maintain a debt service coverage ratio of 1.25 as required by loan covenants, as reserve funds cannot be counted as revenue for this purpose. The presentation also detailed efforts in cost reduction, including staff reductions through not filling positions and improvements in AMI metering efficiencies, while addressing customer concerns regarding service charges.