Sara Cline

The special meeting focused on the future of the Shortmount Power Plant operations, which EPUD has managed for over 35 years. Key discussion points included the end-of-life status of current engines and the decision point between a substantial reinvestment or pursuing an alternative direction, citing regulatory pressures and uncertain fuel supply. The board directed staff to pursue a Renewable Natural Gas (RNG) project, leading to the authorization of the plant's permanent decommissioning and securing Tier One replacement power from Bonneville starting in October 2027. Following a Request for Proposals, Waga Energy was selected as the partner. The structure of the new arrangement involves Waga installing and operating the RNG facility, sharing proceeds via a royalty with EPUD and Lane County. The proceedings detailed five governing transaction documents, including a Triparty Consent Agreement, an Assignment and Assumption Agreement transferring gas rights, and a Royalty Agreement. The benefits discussed included avoiding a non-economic plant rebuild, eliminating dependence on the current fuel supply partner, mitigating operational risks from equipment failure and regulation, and ensuring EPUD's replacement power costs are reimbursed by the initial RNG royalty share. The meeting concluded with plans to vote on the related contracts at the following week's regular board meeting before adjourning to executive session to discuss ongoing negotiations.

This Wildfire Mitigation & Response Plan for Emerald People's Utility District aims to enhance public safety and mitigate wildfire threats posed by electrical equipment in its service area. The plan outlines strategies for identifying and assessing ignition risks, adopting mitigation measures, and establishing operational responses. Key areas include managing vegetation and wildlife, addressing human-caused incidents, preventing wire-to-wire contact and electrical equipment failure, and implementing protection equipment operations. It also details operational response activities involving a Wildfire Crisis Team, communication protocols, situational awareness, and system operating modes, including Public Safety Power Shut Offs, to ensure readiness and effective response to wildfires.

The work session was primarily dedicated to a detailed discussion and review of the Short Mountain Renewable Natural Gas (RNG) project. The discussion covered the obsolescence of the existing landfill gas power plant engines and the strategic decision to pivot towards RNG development rather than reinvesting in old equipment, as directed by prior Board resolutions. The proposed collaborative arrangement with WAGA and Lane County was outlined, where WAGA would own and operate the new RNG facility, and EPUD and Lane County would receive royalty payments. EPUD is set to decommission its current power plant by December 31, 2027. The arrangement includes provisions to cover EPUD's replacement power costs from BPA, ensuring no financial impact on customers, with remaining revenue split between EPUD and Lane County. The benefits, such as mitigating operational and regulatory risks, and the risks, including permitting delays and market uncertainties, were reviewed. The five associated contracts will be presented for action at a subsequent meeting. The Board also convened an Executive Session to discuss the RNG project and associated contract terms.

The Board of Directors meeting agenda included several key items. Presentations and reports covered the kickoff for the 2025 annual audit by Baker Tilly, the State of the Utility Speech, the Treasurer's Report which included claims for approval, and the General Manager's Report with updates on LIHEAP, sales outlook, a potential new load evaluation, system planning, and a PPC legal filing. Staff also provided a demonstration of the new Customer Outage Map. Action items included approving the Consent Agenda (which covered minutes from December 16, 2025, and claims approval), authorizing a contract for a Security System Upgrade (Resolution 2026-01), adopting updates to the Operations and Engineering Policy (Resolution 2026-02), and authorizing the District to opt in to liability limits under ORS 105.668 (Resolution 2026-03). The meeting also included the election of Board Officers.

The Board of Directors meeting agenda included several key financial and operational items. Key discussions focused on the Treasurer's Report, which detailed claims for approval totaling \$5,693,270.74, including significant transformer purchases and a scheduled principal and interest payment for the 2013 Refunding Bond. The Q3 Financial Review highlighted that power costs are projected to be \$5.5 million over budget, resulting in an expected Net Income of \$4.9 million (\$2.5 million under budget). The Board was also set to review and potentially adopt the 2024 Budget Proposal, the 2024 Rate Proposal, and a Rate Discount resolution. Additionally, updates were scheduled for Personnel Policy, Customer Communications Strategy, and Capacity Resource Acquisition. Capital program projections indicated spending under budget, with staff taking actions like delaying some capital work to offset higher power costs.