Huntsville Utilities Electric Board Meeting
HU Board Room
Wednesday, 10/23/2019
8:30 - 10:30 AM CT
1. Approve Drafted Minutes
Approve drafted minutes of Regular Adjourned meeting of the Electric Utility Board held on September 25, 2019.
1.0 Electric Minutes September 25 2019 draft - Page 3
1.0 Electric Board Meeting Highlights - September 2019 - Page 7

2. Public Comments
3. Old Business
a. Special Merit Policy (Action Item)
3. a Special Merit Memo - Sept 2019 (002) - Page 8

4. New Business
a. Electric Financial Reserve Policy (Action Item)
4.a Electric Cash Reserve Policy Memo Oct 19 - Page 12

b. TVA Partnership Proposal
4.b TVA Proposal Memo - Oct 2019b - Page 14

c. Energy Services Year-End Report
4.c Energy Services FY-19 Report - Page 27

d. KPI Quarterly Report
4.d StrategicPlanReportCard FY19-Q4 - Page 32

e. HU Events Quarterly Video
f. Apporve Non-Budgeted Purchase (Action Item)
4.f Electric Expenditures for Approval Oct. 2019 - Page 42

g. Review O&M Transactions and Capital Spending Reports
4.g Monthly OM Purchases Greater Than $25000 (Summary) Sept 2019 - Page 43
4.g FY19 Electric Monthly Capital Spending 09-2019 - Page 45

5. Operating Reports
a. Finance Presented By: Ted Phillips
i. Discuss Financial Statements
Financial Presentation
5.a.i Electric Financial Presentation Sept 2019 - Page 51

Electric Financials
5.a.i Electric Financial Statements September 2019 - Page 64

b. Operations Report Presented By: Mike Counts
5.b Electric Monthly Report Sept 19 BC - Page 70

c. Engineering Report Presented By: Stacy Cantrell
5.c Engineering BOARD Monthly Report September 2019 - Page 79

d. Customer Care Report Presented By: John Olshefski
5.d Customer Care Report September 2019 - Page 99

e. Human Resources Report Presented By: Harry Hobbs
5.e Personnel Actions September 2019 - Page 106
5.e 2019 Recognition Discipline - Page 107

6. President's Report Presented By: Wes Kelley
6.0 PresidentsReportOct2019 - Page 108

7. Comments & Questions from Board Members
8. Legal

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Master Page # 1 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 9. Adjourn

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Master Page # 2 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 PROCEEDINGS OF THE HUNTSVILLE ELECTRIC UTILITY BOARD
at its Regular Adjourned Meeting Held September 25, 2019
Board Members present were Messrs. Ronnie Boles, George Moore and Thomas Winstead,
constituting a quorum of the Board. Staff Members present were Messrs. Wes Kelley, President and CEO;
John Olshefski, Vice President of Customer Care; Mike Counts, Vice President of Operations; Harry Hobbs,
Vice President of Employee Engagement; Warne Heath, General Counsel; Ms. Stacy Cantrell, Vice President
of Engineering; Ms. Melissa Marty, Director of Internal Audit; Ms. Lucrecia Points, EEO, Diversity &
Inclusion Director; and Ms. Beverly Hughes, Executive Assistant.
Mr. Boles called the meeting to order.
Mr. Kelley introduced visitors from TVA, Mr. John Thomas, TVA CFO, Mr. Dan Pratt, Vice
President of Customer Delivery, and Mr. Kevin Chandler, General Manager for Northern Alabama. Mr.
Thomas thanked the Board for the opportunity to discuss TVA’s strategic financial plan and the long -term
partnership proposal. Mr. Thomas explained that the 2014 long-range financial plan included 1.5% base rate
increases for 10-years, reducing the annual O&M by $500M, and lowering TVA’s debt to $21.3B by 2023.
However, since 2014, TVA has reduced its annual O&M by $800M and is on target to exceed the debt
reduction goal before 2023. TVA has now developed an updated long-range financial plan which includes
a flat wholesale rate for the next 10 years, maintaining O&M reductions, funding solar and natural gas
expansion, funding coal combustion residuals, and further reducing TVA’s debt. To stabilize TVA’s debt,
TVA believes that its debt obligation should better align with its customers’ commitment to fund generation
and transmission projects. The proposed plan is a long-term partnership option with a 20-year evergreen
contract. Local Power Companies (LPCs) that move to the long-term partnership agreement will benefit
from a bill credit, long term rate stability, flexibility to meet end-use customer needs, and will be included in
planning decisions. There was discussion regarding the appropriate debt level, the length of the contract,
confidence would be required in current TVA leadership and future TVA leaders, and the political actions
that could impact the wholesale power contract.

The Board thanked Mr. Thomas, Mr. Pratt, and Mr.

Chandler for meeting with the Board and presenting the plan and asked that TVA continue to work with the
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Master Page # 3 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 PROCEEDINGS OF THE REGULAR ADJOURNED MEETING
of the Huntsville Electric Utility Board Held September 25, 2019
Page 2 of 4

COE on the details. Mr. Thomas said he is committed to working with Mr. Kelley on the details and is
concerned about Huntsville Utilities interest.
Mr. Winstead made a motion to approve the minutes, as drafted, of the Regular Adjourned Meeting
of the Electric Board held on August 28, 2019. Mr. Moore seconded the motion and it was passed.
The Board asked that the Special Merit Policy be postponed until next month.
Mr. Kelley introduced the Identity Theft Prevention Policy for approval. This policy is required by
the Fair and Accurate Credit Transaction Act (FACT Act) and ensures Huntsville Utilities establishes a
program to detect, prevent and mitigate identity theft and consumer fraud. The policy has been rewritten and
moved detailed administration to a separate standard. Mr. Heath has reviewed the policy. Mr. Moore made
a motion to approve the Identity Theft Prevention Policy. Mr. Winstead seconded the motion and it passed.
Mr. Kelley introduced the Employee Business Travel Policy for approval. This policy will change
our current practice of using a pcard for all purchases while traveling. The updated policy retains the current
arrangements for conference fees, airfare, hotels and other purchases made in advance, but meals and
incidental charges will be covered through a per diem. The per diem amount follows the Federal government
standard as defined on the GSA website. The Board is under a different policy that provides a fixed $150
per diem option that has not been used. An analysis of cost showed using a per diem may cost approximately
$15 more; however, the current practice adds cost for processing, approvals, and review of receipts and
associated paperwork. Mr. Moore made a motion to approve the presented Employee Business Travel Policy.
Mr. Winstead seconded the motion and it passed.
Mr. Kelley discussed the following policies to be rescinded: Operation of Company Radios, Parking
and Personal Vehicles, Schedule of Breaks, Lunch Period Location, and Personal Telephone Calls. These
policies can be addressed better in operational standards and procedures. Mr. Moore made a motion to
approve rescinding the requested policies. Mr. Winstead seconded the motion and it passed. Mr. Kelley also
reported that since 2017, 40 board-level policies have been written or updated, 17 CEO-approved standards
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Master Page # 4 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 PROCEEDINGS OF THE REGULAR ADJOURNED MEETING
of the Huntsville Electric Utility Board Held September 25, 2019
Page 3 of 4

have been adopted, and 7 VP-level procedures have been prepared. The next area of focus will be Safety
and Security, Customer Service, Engineering/Operations and IT.
Mr. Kelley explained that in July 2019 the Boards approved hiring PFM as the investment advisor
for the OPEB Trust Fund. PFM has suggested Huntsville Utilities establish an OPEB Investment Committee
to include one board member from each board, along with the CEO/President, General Counsel, and CFO.
The purpose of the committee would be to first work with PFM to prepare an OPEB Investment Policy for
consideration by the Boards. The Board appointed Mr. Winstead to the OPEB Investment Committee.
Ms. Marty gave the Internal Audit Quarterly Report and reported that 2 observations have been closed
with 22 open observations remaining. Of the 22 open observations, 6 of those are prior to 2016 and are in
relation to aid-to-construction policies.
Mr. Boles brought to the attention of the Board that when an invoice is received in Mr. Kelley’s name,
such as membership, sponsorship or purchasing invoices, Mr. Kelley’s name has been removed to be able to
obtain a superior’s approving signature. Mr. Boles discussed having Mr. Ted Phillips, CFO, be the second
signature on these types of invoices as long as they are normal business expenses and in the budget. Mr.
Winstead made a motion to allow Mr. Phillips, CFO, be the second signature for these type of invoices for
Mr. Kelley. Mr. Moore seconded the motion and it passed.
Mr. Kelley discussed the O&M Transactions over $25,000 and Capital Spending Reports in the Board
package. The fiscal year end is approaching and next month preliminary year end reports will be provided.
This will include the first year-end KPI report. After reviewing the KPI report some changes may be
recommended. Mr. Boles asked that Mr. Phillips discuss the electric net position numbers and how they tie
to our goals at the next meeting.
Dr. Hobbs reported that he is working on the John Harbin Lineman Scholarship with Calhoun
Community College.

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Master Page # 5 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 PROCEEDINGS OF THE REGULAR ADJOURNED MEETING
of the Huntsville Electric Utility Board Held September 25, 2019
Page 4 of 4

Mr. Kelley reported that he has begun meeting with Huntsville/Madison County’s state legislative
delegation to share issues that Huntsville Utilities is tracking.
There being no further business, Mr. Boles adjourned the regular meeting.

___________________________________
Chair

____________________________________
Secretary

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Master Page # 6 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Huntsville Utilities
Electric Board
Meeting Highlights
Electric Board Meeting – September 2019:
The Electric Board met on Wednesday, September 25th, with three guests in attendance from
TVA: John Thomas, Dan Pratt, and Kevin Chandler.
Electric Board Action Items




A motion passed approving the Identity Theft Prevention Policy
A motion passed approving the Employee Business Travel Policy
A motion passed rescinding the following policies:
o Operation of Company Radios
o Parking & Personal Vehicles
o Schedule of Breaks
o Lunch Period Location
o Personal Telephone Calls

Electric Financials


Electric Sales Revenue for August was $50,242,871; down 0.3% from August 2018



Total kilowatts sold in August: 505,957,821; down 1.5% compared to August 2018



Purchased Energy in August was up 2.9% when compared to August 2018 at
$42,556,351

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Master Page # 7 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 MEMORANDUM
To:

Electric Board
Gas/Waterworks Boards

From:

Wes Kelley, President/CEO

Date:

September 16, 2019

Subject:

Special Merit Policy

The Special Merit policy was presented last month along with updates to the Compensation
Administration Policies. As discussed, this policy is an experiment to reward and perhaps motivate
the 40% of HU’s employees who have reached the top of their pay grade. Given the complexities
of HU’s compensation structure, this policy provides an incremental improvement in HU’s
compensation reward system.
At last month’s meetings, the boards asked helpful questions about this policy, including why limit
eligibility only to those at the top of the pay grade? This prompted good discussions in several
forums over the last few weeks. The primary issue was how best to address “topping out,” but the
conversation has evolved into a broader discussion on performance rewards, avoidance of
favoritism, and HU’s overall pay progression system. These conversations revealed value in the
current structure—especially for those working within a defined apprenticeship structure;
however, we have started a discussion on new approaches that may bear good fruit in the future.
As a reminder, all of HU’s salaried employees receive merit increases based on their annual
evaluation score. Salaried employees are nearly one-quarter of HU’s workforce—and includes
certain administrative and professional positions, along with all those in supervisory, management,
and leadership positions. These employees advance through their pay grade at a pace determined
by their performance until they reach the maximum-allowed pay for the position’s assigned pay
grade. The remaining three-quarters of HU’s workforce are in hourly-paid jobs and advance
through defined steps until they reach the top of their pay grade. Once all employees reach the top
of the pay grade, all increases stop—except for any GWI increases given to all HU employees.
While the hourly employees advance through defined steps, approximately 40% of HU’s hourly
employees work in positions tied to a formalized apprenticeship program (linemen, pipefitters,
equipment operators, etc.). These employees advanced through their apprenticeship program as

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Master Page # 8 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Special Merit Policy
September 16, 2019
Page 2
they complete a multi-year curriculum (approved by the Department of Labor) taught after-hours
by HU supervisors. Therefore, advancement for these employees is tangible and tied to
measurable objectives.
Also, other hourly positions have specific-job requirements. For example, WTP Operators must
pass Alabama’s Grade 4 Water Operator’s exam; the Call Center staff must complete a
comprehensive in-house training plan; several positions across the organization are required to
complete outside training courses, etc. Failure to meet any such requirements results in potential
delays in step progressions. Therefore, while time-in-service is the primary driver for
compensation progression, it is rarely the sole determinant.
The chart below provides a breakdown of employee data from August 2019:
Type of Position
Total Full-Time Employees
Max of Pay Grade

Count
666
267

Salaried Employees
Max of Pay Grade

161
41

Hourly Employees
Max of Pay Grade

505
226

Apprenticeship-Based Advancement
Max of Pay Grade
Time-Based Advancement
Max of Pay Grade

197
141
308
85

Notes
Excludes contractors, temps, etc.
Total full-time “topped out” employees
Advancement based on performance
Compensated at the top of the assigned pay grade

Advancement based on curriculum completion
Compensated at the top of the assigned pay grade
Advancement primarily due to time-in-service
Compensated at the top of the assigned pay grade

There is recognized value in basing compensation increases on positive work performance. This
has worked well for HU’s salaried positions, and it could work well with some hourly positions.
HU is somewhat a hybrid organization: combining a “union-style” construction firm with a
professional services firm—with a significant customer service component. Generally speaking,
our construction-focused, crew-based, employees appreciate consistency and unity within the crew
while those engaged in professional services or more customer-facing roles appreciate recognition
as individual contributors.
HU’s management is beginning a dialog with the workforce on this subject because there are
varying perspectives. Again, those working in a crew (and who typically advanced through a
formal apprenticeship program) may be reasonably satisfied with the current system, while some

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Master Page # 9 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Special Merit Policy
September 16, 2019
Page 3
working as individual contributors might appreciate more flexibility, like that provided to salaried
employees. Of course, regardless of the role, strong performers always have an advantage when
promotion opportunities arise.
Though this has opened up broader issues, I recommend moving forward with the currently drafted
Special Merit policy at this time. This limits the “experiment” to those providing notable service
at the top of their pay grade. Such an approach reaches across all employee groups without
fundamentally restructuring any particular system. I believe we will learn helpful lessons as we
implement this program.

I recommend adoption of the Special Merit Policy, with an effective date of October 1, 2019.

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Master Page # 10 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 HUNTSVILLE UTILITIES POLICY
Revision Approval Date:
Gas & Waterworks BoardElectric Board-

Date Posted: 7/1/2019

Policy #:

HR-XX-XX

Policy:

Special Merit Policy

Purpose:

Implementation Date: 7/1/2019

To recognize and reward consistently high performance by employees at the
maximum of the pay grade.

Exempt and non-exempt employees with compensation at the maximum of the pay
grade who are rated overall Exceeds Expectations or above during the last two annual
performance reviews, and deserving of special recognition may qualify for a special
merit recognition. A special merit can be authorized for an employee no more than
once during a 24-month period.
The special merit benefit is provided as a one-time, lump sum payment up to a
maximum of 2% of the employee’s annual salary.
To receive a special merit, the employee’s Vice President must prepare a written
request with appropriate justification to the President/CEO. Upon the President/CEO
approval, Human Resources will process the lump sum payment in the next pay period,
and the employee’s supervisor will notify the employee of this special recognition.

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Master Page # 11 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 MEMORANDUM
To:

Wes Kelley, President/CEO
Electric Board

From:

Ted Phillips, CFO

Date:

October 15, 2019

Subject:

Electric Cash Reserve Policy

Please find attached the Electric Cash Reserve Policy. At its June 2019 meeting, the board
discussed the methodology for determining appropiate Electric cash reserves. The board’s
guidance was cash reserves should be tied to 45 days of operating expenses, not including customer
deposits.
In the attached policy, I have tried to follow this direction. I have also included language on what
to do if the cash reserve goes below (which is the case now) the policy limit. I will be at the board
meeting and will be happy to discuss any questions or concerns there may be concerning this
policy.

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Master Page # 12 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 HUNTSVILLE UTILITIES POLICY
Approval Date:

Date Posted:

Implementation Date:

Policy #:

FM-XX

Policy:

Electric Financial Reserve

Purpose:

To help ensure financial stability, timely completion of capital improvements, and
enable the utility to meet requirements for large unexpected expenditures, a
minimum cash reserve policy should be established. This policy attempts to
quantify the minimum amount of cash the utility should keep in reserve. Actual
cash reserves may vary substantially above the minimum and is dependent on the
life cycle of assets, future capital plan, planned rate increases, and issuance. As
budgets are prepared each year, the actual target minimum cash reserve will be
calculated each year in compliance with this policy.

Calculation
The cash reserve policy will include 45 days of annual operation expense budget,
(or 12.3% of annual operating expenses budget) including tax equivalent
payments to the City of Huntsville and excluding depreciation expense. The
amounts used to determine the operations expense budget and tax equivalent
will be taken from the current-year’s approved budget.
Minimum Restoration
If certain events occur that result in cash reserves falling below the minimum cash
reserve levels, the Electric Board should take action to restore cash reserves to the
minimum levels over the subsequent five years. These actions may include a number
of options:
 Rate adjustments
 Cost reductions
 Issuance of bonds to fund capital improvement programs (the utility should
strive to fund normal capital improvements through electric rates and cash
generation and bond for extra-ordinary capital improvements.)
 Modification of the assumptions used to determine the cash reserve levels
The minimum cash requirements will consist of all Electric funds, excluding restricted
funds. Board designated cash reserves are not considered restricted for purposes of
this policy, but customer deposits are considered restricted. The methodology
outlined in this policy should be used to update the minimum cash calculation
during the annual budget process.
Original Issue Date:
Page 1 of 1

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Master Page # 13 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 MEMORANDUM
To:

Electric Board

From:

Wes Kelley, President/CEO

Date:

October 15, 2019

Subject:

TVA Long-Term Partnership Proposal

I appreciate John Thomas presenting TVA’s updated long-range financial plan at our last
meeting. It was helpful to hear about TVA’s financial improvement and the business impacts of
the proposed long-term partnership agreement. Following that meeting, I sent a letter to TVA
providing my observations and concerns with the agreement. These items had previously been
communicated verbally, but I sent the letter to ensure TVA clearly understood my position.
To date, 131 local utilities have executed the long-term partnership proposal. Only 23 remain
uncommitted. However, those 23 utilities represent many of the largest utilities in the Valley.
Section 2(d) of the agreement states that if TVA provides additional benefits to utilities with
“similar long-term agreements,” those who already signed will have the option to enjoy those
benefits. I believe a good number of those that executed the agreement “as is” did so knowing
the door was open for others to improve the agreement. Of course, this tactic only works if some
utilities forgo the immediate bill credits and push for changes.
As you know, I have a philosophical objection to the 20-year “evergreen” term that practically
make this a perpetual renewing agreement. I understand TVA’s intent is to better align its debt
to its customers’ payment commitments. While such arrangements are common in our industry,
TVA is not a common entity. Due to its federal ownership, TVA is unable to provide its
“partners” with financial equity or governance over the infrastructure funded through such
commitments. Furthermore, TVA built an impressive fleet of generation and transmission assets
while the average contract term was 6.8 years. It is odd that TVA now wants to link contract
terms to ongoing financial commitments when no major infrastructure additions are planned in
the foreseeable future.
If you will forgive a biblical analogy, this reminds me of the story of Jacob and Esau, with Esau
trading his birthright for a bowl of stew. In our situation, I worry the bill credits accompanying
this proposal might be our bowl of stew.

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Master Page # 14 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 TVA Long-Term Partnership Proposal
October 15, 2019
Page 2

Due to the Valley’s distinctive characteristics, all parties involved have developed a unique way
of balancing interests. I believe contract renewals created a healthy tension that gave TVA’s
customers the impression they have a choice in their future. This impression served as a pressure
relief valve that spits and sputters when pressures rise, but it helps avoid explosions. While few
utilities have left the Valley, but I suspect this arrangement has kept TVA and its customers
focused on business solutions. For that reason, I believe 20-year fixed term with a 10-year
renewal notice is a better arrangement than 20-year evergreens renewals.
In other areas, municipal systems such as ours either form “joint action agencies” that
collectively own and operate assets governed through a board appointed by the participating
utilities, or they purchase power on straightforward business terms deemed reasonable and
appropiate to both entities. But again, TVA is unique. It has unilateral authority to make power
supply, transmission, rate, and regulatory decisions for its customers. I am not aware of any
other power supplier with the authority to set retail rates or determine accounting and customer
service standards for its customers. Once in perpetually renewing long-term contracts, if
discussions with TVA were to become pointless, instead of plotting to leave the Valley, those
upset would be stuck with little recourse than directing their efforts at stripping TVA of its
exceptional authorities and/or its assets.
Regardless of my philosophical concern, I recognize a pragmatic decision needs to be made.
With that in mind, I believe there are three or four sections of the agreement that should be
improved before we sign. These issues were previously described in last month’s memo and my
letter to TVA.
For a quick summary, the tactical issues are:
 The cost of maintaining transmission and substation assets if HU were to exercise its 20year termination notice;
 Ensuring the “rate cap” applies to all types of non-fuel revenue increases;
 Addressing the prohibition for “facilitating” solutions for behind-the-meter or other
customer generation options;
 And possibly address the ability for Congress to override the wholesale power contract.
Only one of the Big 8 systems has signed the agreement (NES). The Big 8 CEOs will meet
again on October 28, and I expect the long-term agreement will be the primary topic of
discussion. Also, a meeting with many of the unsigned utilities is scheduled around the same
time as the Big 8 meeting. After these meetings, I will better understand the likelihood of a
collaborative effort to improve TVA’s agreement.

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Master Page # 15 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 TVA Long-Term Partnership Proposal
October 15, 2019
Page 3

TVA has communicated it is working on a response to my issues and similar issues raised by
others. A meeting with those that have already signed the long-term partnership agreement is
scheduled for November 7. Given the contract provision described above allowing existing
signers to accept future modifications, I suspect any potential contract changes may be discussed
with that group on the 7th. Therefore, I do not expect an official response to my letter until after
that meeting.
In the meantime, I have reached out to EnerVision, a power supply consulting firm based in
Atlanta. EnerVision is currently helping several of the unsigned utilities better understand the
power supply market and evaluate options—including nearby Joe Wheeler and Cullman EMCs.
Given the significance of the decision before us, I recommend EnerVision attend our November
meeting to educate us on the wholesale power situation outside the Tennessee Valley. I believe
it prudent we conduct this analysis before we execute an agreement with a 20-year term that
renews every year.

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Master Page # 16 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 UNCONFIRMED LISTING OF UNSIGNED SYSTEMS
(WITH CUSTOMER COUNTS)
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
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



















Memphis Light Gas & Water (404,648)
Middle Tennessee Electric Membership Corporation (224,484)
Knoxville Utilities Board (206,433)
Huntsville Utilities (191,708)
Chattanooga Electric Power Board (183,366)
Volunteer Energy Cooperative (116,292)
North Georgia Electric Membership Corporation (100,177)
Murfreesboro Electric Department (64,387)
Blue Ridge Mountain Electric Membership Cooperative (52,689)
Joe Wheeler Electric Membership Corporation (43,200)
Cullman Electric Cooperative (43,108)
Gibson Electric Membership Corporation (38,759)
East Mississippi Electric Power Association (37,045)
Jackson Energy Authority (35,342)
Holston Electric Cooperative (30,303)
Athens Utilities Board (13,248)
Dyersburg Electric System (11,951)
Bessemer Electric Service (11,133)
McMinnville Electric System (8,005)
Glasgow Electric Plant Board (7,447)
Ripley Power & Light (6,510)
Union City Energy Authority (6,360)
Chickamauga Electric System (936)

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Master Page # 17 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 ________________________________________________________________________________
Master Page # 18 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

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Master Page # 19 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 October 8, 2019
Mr. Dan Pratt
Tennessee Valley Authority
Vice President, Customer Delivery
1101 Market Street
Chattanooga, TN 37402
Dear Dan:
I appreciate you and John Thomas attending Huntsville Utilities’ Electric Board meeting on
September 25. Everyone in attendance benefited from hearing TVA’s long-range financial plan
and the business implications of the long-term partnership proposal. This letter follows up on
issues we have discussed since the contract language was released in late August.
As I’ve shared before, my fundamental concern with the proposal is the requirement for
“evergreen” contract renewals. I understand long-term contracts are common when liabilities
and equity are exchanged to finance major construction projects. While the culture of the Valley
portrays our relationship in such terms, contractually, HU is entering into a purchase power
agreement, and as such, does not have a direct say in the governance or operations of the
infrastructure built with its money. TVA is eager to connect HU to its long-term liabilities, but
not its assets. As a small consolation, I do appreciate language in Section 2(d) committing to
future engagement for strategic resource and financial planning decisions.
I believe the value and relevance of the proposal’s benefits will diminish over time. I prefer a
20-year fixed term, as I feel evergreen extensions require an exceptional amount of confidence in
future TVA leadership. This is not only a business concern but a political one as well. Given
TVA’s federal ownership, Huntsville will be obligated to pay the 20-year bills of whomever a
future TVA Board puts into leadership—a board appointed by whoever is elected President and
confirmed by those then in control of the U.S. Senate. Such conditions should reasonably lead to
increased interest in the political process by TVA’s long-term partners.
While I recognize my objection to the evergreen requirement is likely in direct opposition to
TVA’s primary goal for this proposal, my remaining concerns involve contract language, which I
hope we can improve together.
Section 1 states that if HU executes its 20-year termination notice, TVA has no further obligation
to make changes in HU’s transmission or substation facilities. While TVA should not make
unreasonable improvements before HU’s disconnection, 20-years is a long time. I hope this

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Master Page # 20 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Long-Term Partnership Proposal
October 8, 2019
Page 2
provision can be amended to ensure HU would be treated in a non-discriminatory fashion, and
any needed changes are addressed using a cost-based recovery mechanism that protects system
reliability and the ratepayers.
Section 2 provides for a rate cap, but this limitation only applies to increases under the existing
rate structure. Paragraph (b) states that the cap does not apply to “rate changes.” The rate cap is
generous, and as such, I hope this can be amended to include all non-fuel sales revenue
increases.
Section 3 states that HU would pay “an amount equal to TVA’s actual or estimated losses of
revenue” for the sale, supply, or facilitating the sale or consumption of power not supplied by
TVA. Given the unpredictable changes created by distributed energy resources, what does
“facilitation” mean? Could this include selling natural gas for a customer’s onsite generation
outside the confines of a yet-to-be-determined flexibility program? Does this include providing
services or support to customers operating behind-the-meter generation?
Finally, Section 5 definitively waives any protections provided under existing law regarding
Congressional action that could negatively impact the wholesale power contract. Why include
this language when it is not present in other agreements? Honestly, I am uncertain how I view
this provision. Given the potential risks associated with a perpetually renewing 20-year contract,
this language could lead to Congress becoming a desirable intermediary in future power contract
disputes. The removal of the healthy tension created by contract renewals could result in
increasing political activity if business discussions are merely a formality—especially given
TVA’s unilateral authority to make HU’s power supply, rates, and regulatory decisions.
Please let me know how you recommend we address these issues. I am confident in TVA’s
leadership. Furthermore, I recognize the value of a close and long-term relationship. I hope this
letter is the basis for strengthening our mutually beneficial future together.
Sincerely,
HUNTSVILLE UTILITIES

Wes Kelley
President/CEO

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Master Page # 21 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

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Master Page # 24 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

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Master Page # 25 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

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Master Page # 26 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 New Homes Program
State of Alabama Energy Code Certification
Totals FY-19
Gross Incentives from TVA - $1,150,950
Builder Incentives - $409,200
Third Party Verifier - $154,200
Net Revenues - $587,550

Certified Homes
1,800
1,600

1,542

1,400
1,200
1,000
800

1,036

1,123

1,314

1,285

FY-17

FY-18

600
400
200
0

FY-15

FY-16

FY-19

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Master Page # 27 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Natural Gas HVAC Incentives
Total Rebates Paid FY-19 $272,000
Existing Homes FY-19
Total Conversions - 96
Rebates Paid - $96,000

New Homes FY-19
Total Systems - 176
Rebates Paid - $176,000
35

30

30

26

25
15
10
5
0

19

18

20

10

9

6
0

9

20

18
11

20
18
16
14
12
10
8
6
4
2
0

17
11
5

16

13
10
7

5

5

4

0

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Master Page # 28 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

3

 High Bill Complaints
85 Total High Bill Complaints FY-19
18

16

16
14

11

12

9

10

10

10

8
6
4

4

5

4

4

5

4
2

2
0
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

*High Bill complaints are inspections for customers who have seen extreme spikes in utility costs. Customer referrals
usually come through the customer information center.*

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Master Page # 29 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

Sept.

 Low Income Assistance Programs
Totals FY-19
Huntsville Homes Uplift Pilot (Oct.– Dec.)
121 Homes

Total funds contributed by T.V.A. and H.H.A
$988,500

Operation Green Team Foundation (January)
35 Homes

Total funds used for upgrades
$150,986

Project Share
3 Homes

Total funds used for upgrades
$17,436

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Master Page # 30 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Other Residential Energy Services
Residential Survey Program (HESP)
Surveys Conducted
FY-19
139
Customer Generation Program
Residential Participation—
Program Totals

Commercial Participation—
Program Totals

Solar Systems

Capacity

Solar Systems

Capacity

47

476.55 kW

23

861.3 kW

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Master Page # 31 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 2019 Strategic Plan
Report Card
A summary of the Huntsville Utilities’ progress achieve results within
its five strategic focus areas.

FY19 Q3

1

________________________________________________________________________________
Master Page # 32 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 2019 Strategic Plan
Mission

Strengthen Trust
in Huntsville
Utilities

Vision

Deliver Excellent
Customer
Experiences

Values

Organizational
Goals

Do What’s Right

Demonstrate
Prudent
Stewardship

Build Community

Respect Our
Customers

Focus Areas
Workforce
Performance
Customer
Satisfaction
System Reliability
Financial Stability

Get Better
Everyday

Develop Engaged
and Effective
Employees

Organizational
Excellence

FY19 Q3

2

________________________________________________________________________________
Master Page # 33 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 2019 Strategic Plan

Mission

Strengthen Trust in Huntsville Utilities

Vision

Deliver Excellent Customer Experiences

Values

Do What’s Right — Huntsville Utilities is a steward of the community's resources
and foundational to the success of our region. We owe it to our coworkers and
the community to do our work ethically, accurately, and completely—making it
easier for others to do their work and creating the best possible outcome.
Build Community — Huntsville Utilities, its employees, and our customers are in
this community together. Treating our coworkers and customers with respect,
embracing efficiency, and providing exceptional service and value is how we
build our future.
Get Better Everyday — Huntsville Utilities’ employees personally and collectively
embrace continuous improvement and diverse perspectives. We develop our
thinking, systems, processes, and technology to strengthen our work and
empower a dynamic community.

FY19 Q3

3

________________________________________________________________________________
Master Page # 34 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 2019 Strategic Plan
Organizational
Goals

Demonstrate Prudent Stewardship

Maintain reliable systems
Charge fair and reasonable rates
Enforce process efficiency and financial
accountability

Develop Engaged and Effective
Employees

Protect our people and facilities
Promote cross-functional thinking
Encourage two-way communication

Respect our Customers

Operate with integrity
Deliver the best customer outcome
Strengthen our community

FY19 Q3

4

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Master Page # 35 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Strategic Focus Areas
CUSTOMER SATISFACTION

SYSTEM RELIABILITY

Provide accurate, timely, and friendly
service to our customers

Provide robust infrastructure and
stable services

FINANCIAL STABILITY

ORGANIZATIONAL EXCELLENCE

Build a strong financial foundation,
capable of meeting future needs.

Incorporate best practices and achieve
superior performance

WORKFORCE PERFORMANCE
Empower our employees to deliver
exceptional results
FY19 Q3

5

________________________________________________________________________________
Master Page # 36 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 WORKFORCE PERFORMANCE
Empower our employees to deliver exceptional results
Elevate employee engagement and satisfaction

Achieve > 70% employees reported as “promoters” in annual workplace survey

YTD Progress
51.69

Provide a safe workplace

1.64
5.11

Achieve injury incident rate =/< 2.0
Achieve preventable vehicle accident ratio of < 3.5

Improve organizational communication

Achieve > 60% participation in annual workplace survey
Conduct =/> 4 supervisory training on policies, standards, and procedures
Conduct =/> 2 CEO town hall meetings

48.44
3
2

Build a diverse workforce
Contact > 4 diversity outreach agencies for each external job posting
Reduce minority underutilization by =/> 1 position within identified job groups

13/14

Encourage training and professional development

Review job requirements and measurable goals in 100% of performance appraisal
Provide =/> 1 professional development opportunity for exempt employees

Enhance succession planning and promotional opportunities

Achieve > 25% of workforce completing employee profiles, including goals and aspirations
Achieve > 1 qualified internal candidate within candidate pool for supervisory positions

24.2%

FY19 Q4

6

________________________________________________________________________________
Master Page # 37 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 CUSTOMER SATISFACTION
Provide accurate, timely, and friendly service to our customers
Achieve superior customer satisfaction ratings

Achieve > 90% of recent customers “very satisfied” with the ease of doing business with Huntsville Utilities
Achieve > 75% of the community “very satisfied” with the ease of doing business with Huntsville Utilities

Answer customer telephone calls consistently and quickly

Answer =/> 87% of calls to Customer Information Center within 60 seconds
Achieve a call abandon rate =/> 1.25% for Customer Information Center
Answer =/> 75% of calls to Commercial and Industrial (C&I) within 60 seconds
Achieve =/> 10% of calls routed to C&I experience a hold time > 3 minutes

Provide timely resolution of customer requests and inquiries

Complete 100% of set orders on scheduled date
Complete 70% of cut orders within four days of scheduled date
Complete residential service orders within 2 days of receiving certificate of occupancy
Resolve customer landscaping request within an average of 30 days

Ensure prompt and accurate metering and billing processes

Achieve < 2% of bills requiring correction due to misread meters
Achieve > 98% of bills are mailed the business day following the meter reading

Ensure prompt and accurate posting of customer payments
Serve payment customers in < 5 minutes
Ensure =/> 98% of payments are posted properly

Reduce Customer Damage Claims

Reduce number of damage claims by 10% annually

94.1%
81.9%
85.2%
1.5%
76.1%
11.6%
100%
100%
-29 days
1.2%
99%
2:50
99.8%
+10.6%

FY19 Q4

7

________________________________________________________________________________
Master Page # 38 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 SYSTEM RELIABILITY
Provide robust infrastructure and stable services
Monitor the frequency and duration of outages

Report Electric distribution average availability index and customer average interruption index
Report Water distribution average availability index and customer average interruption index
Report Gas distribution average availability index and customer average interruption index
Maintain > 99.998 Fiber availability and restore outages in < 8 hours

99.988/49.76
100/11.39
100/32.66
100/2.54hr

Efficiently meet operations and maintenance needs of each utility

Trim 20% of overhead electric distribution each year
Maintain raw water and high service pump unscheduled downtime of < 10% per month
Inspect 10% of gas corrosion points annually

Maintain adequate electric distribution supply capacity

Maintain > 50% average load capacity for substation and main feeders
Maintain > 100% load capacity for substations and main feeders at peak demand

Maintain adequate water distribution supply capacity
Maintain < 20% non-revenue water losses
Maintain 50% - 80% system capacity to peak water demand
Maintain > 2 average days of water storage

Efficiently manage natural gas supply

Achieve < $3.50 average supply cost
Ensure > 5% pipeline capacity over system peak
Achieve > 700,000 Dth in storage by December and > 50,000 Dth after March

Meet regulatory quality standards
FY19 Q4

Maintain 100% compliance with state and federal utility regulations

________________________________________________________________________________
Master Page # 39 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

25.4%
5%/1%
10%
99%
99%
23%
43%
1.6
$2.83
45%
1,218,081
100%
8

 FINANCIAL STABILITY
Build a strong financial foundation, capable of meeting future needs
Maintain competitive rates compared to median income and peer systems
Provide Electric and Water rates in the lowest quartile of regional peers
Provide Gas rates < midpoint of regional peers
Maintain bills < 5% of Madison County annual median income

14.7%/12.5%
50%
4.86%

Maintain target revenue margins for each utility

93%
102%
99.6%

Achieve > $89.4M Electric target margins
Achieve > $22.3M Gas target margin
Achieve > $45.5M Water target margin

Ensure capital work is completed according to schedule and budget

-11%

At least 80% of all capital projects are completed with 15% +/- of budgeted expenditures
At least 80% of all capital projects are completed within 60 days of scheduled date

Maintain adequate financial reserves

$17.9M
$19.5M
$49.2M

Increase Electric cash reserves to 45 days of operations at > $60.8M
Maintain > $13.3M Gas cash reserve as defined in policy
Maintain > $31.2M Water cash reserve as defined in policy

Grow utility systems

2.2%
3.1%
2.9%

Increase electric customers by > 1.5%
Increase gas customers by =/> 3%
Increase water customers by =/> 1.5%

Develop and monitor cost accounting accuracy

Analyze FY18 completed capital projects
Review cost estimates of 10 gas, 15 water, and 20 electric work orders

+7%
24/55/0

FY19 Q4

9

________________________________________________________________________________
Master Page # 40 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 ORGANIZATIONAL EXCELLENCE
Incorporate best practices and achieve superior performance
Encourage participation in industry excellence programs

YTD Progress

Participate in APPA, APGA, and AWWA/AWPCA recognition
Engage in Baldridge Quality program

Implement identified technology projects
Complete > 80% of IT projects within target year

Provide prompt response to technology support needs
Improve IT help desk service levels by replying in < 4 business days for > 90% of requests
Provide resolution in < 2 business days for 80% of requests marked “under review”

Maintain advanced meters deployment schedule
Deploy 50,000 electric meters in FY19
Finalize plans for gas and water meters for FY20

Reduce monthly electric peak demand
Utilize voltage conservation to reduce wholesale power costs by < 2.5%

Increase payments received through automated systems
Increase the number of kiosk payments by >10 %
Maintain > 50% electronic payments

74%
91%
93%
57,313

3.2%
35.9%
70.6%

FY19 Q4

10

________________________________________________________________________________
Master Page # 41 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 HUNTSVILLE UTILITIES ELECTRIC BOARD
EXPENDITURES FOR APPROVAL
OCTOBER 2019

Item #1

Purchase Requisition #10308725 – Storm Recovery
Request the approval to purchase contract labor from Volt for storm recovery work from
the September 10th storms. This is a non-budgeted FY2019 Electric Expense item (WO
#35000688).
Total Estimated Cost: $66,845.30

________________________________________________________________________________
Master Page # 42 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Monthly O&M Purchases Greater Than $25,000
For the period begining:

Vendor

Electric

9/1/19

Fiber

and ending: 9/30/19

Water

Gas

Joint

Total

ALABAMA DEPARTMENT OF REVENUE

0000087001

$1,729,032.58

$0.00

$147,823.21

$64,261.46

$0.00

$1,941,117.25

CITY OF HUNTSVILLE

0000010268

$1,973,030.17

$0.00

$3,356,909.37

$99,819.29

$0.00

$5,429,758.83

CITY OF MADISON

0000012676

$258,556.17

$0.00

$0.00

$0.00

$0.00

$258,556.17

CITY OF NEW HOPE

0000012270

$0.00

$0.00

$87,343.40

$0.00

$0.00

$87,343.40

CITY OF NEW HOPE - SEWER

0000012483

$0.00

$0.00

$43,641.10

$0.00

$0.00

$43,641.10

MADISON CO BD OF COMMISSIONERS

0000010728

$1,022,391.26

$0.00

$1,208,738.76

$0.00

$0.00

$2,231,130.02

AMERICAN MIDSTREAM LLC

0000012127

$0.00

$0.00

$0.00

$73,408.83

$0.00

$73,408.83

BP ENERGY

0000010190

$0.00

$0.00

$0.00

$161,199.00

$0.00

$161,199.00

CENTERPOINT ENERGY SERVICES INC

0000013475

$0.00

$0.00

$0.00

$49,005.00

$0.00

$49,005.00

COLUMBIA GULF TRANSMISSION LLC

0000013029

$0.00

$0.00

$0.00

$88,109.99

$0.00

$88,109.99

CONOCO PHILLIPS COMPANY

0000010297

$0.00

$0.00

$0.00

$137,397.81

$0.00

$137,397.81

PLAINS ALL AMERICAN PIPELINE LP

0000013755

$0.00

$0.00

$0.00

$66,000.00

$0.00

$66,000.00

SOUTHERN NATURAL

0000011079

$0.00

$0.00

$0.00

$375,937.89

$0.00

$375,937.89

TENNESSEE ENERGY ACQUISITION CO

0000011138

$0.00

$0.00

$0.00

$126,787.00

$0.00

$126,787.00

TENNESSEE GAS PIPELINES

0000011139

$0.00

$0.00

$0.00

$158,069.03

$0.00

$158,069.03

TENNESSEE VALLEY AUTHORITY

0000011141

$42,556,350.99

$0.00

$0.00

$0.00

$0.00

$42,556,350.99

AQUA SMART INC

0000012221

$0.00

$0.00

$78,951.70

$0.00

$0.00

$78,951.70

BANK OF NEW YORK

0000010151

$0.00

$0.00

$1,004,406.72

$0.00

$0.00

$1,004,406.72

CONSTANTINE ENGINEERING INC

13512-1

$0.00

$0.00

$28,872.70

$0.00

$0.00

$28,872.70

HEATH CONSULTANTS INC

10522-1

$0.00

$0.00

$0.00

$0.00

$191,729.76

$191,729.76

JOSEPH G BLACK

0000013707

$0.00

$0.00

$0.00

$0.00

$29,673.92

$29,673.92

MIDSOUTH PAVING INC

0000012959

$0.00

$0.00

$29,554.35

$59,082.15

$0.00

$88,636.50

OMNETRIC CORP

13104-1

$75,649.00

$0.00

$0.00

$0.00

$0.00

$75,649.00

Data Refresh:

10/14/19________________________________________________________________________________
8:24:15AM

Master Page # 43 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

Page 1 of 2

 Vendor

Electric

Fiber

Water

Gas

Joint

Total

POSTMASTER

0000010931

$0.00

$0.00

$0.00

$0.00

$77,500.00

$77,500.00

USGS NATIONAL CENTER

13803-1

$0.00

$0.00

$0.00

$0.00

$96,000.00

$96,000.00

USIC HOLDINGS LLC

0000013733

$0.00

$0.00

$0.00

$0.00

$105,168.00

$105,168.00

VERIZON WIRELESS LLC

0000011231

$0.00

$0.00

$0.00

$0.00

$30,656.91

$30,656.91

VOLT POWER LLC

0000013586

$271,283.30

$0.00

$0.00

$0.00

$0.00

$271,283.30

$47,886,293.47

$0.00

Summary for All Vendors
Grand Total

Data Refresh:

9/1/19

-

9/30/19

$5,986,241.31

$1,459,077.45

$530,728.59

10/14/19________________________________________________________________________________
8:24:15AM

Master Page # 44 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

$55,862,340.82

Page 2 of 2

 Electric Capital Progress Report
Fiscal Year 2019
Project Name/Description

Budget

Encumbered

September

FYTD incl.
Encumbered

% Budget Spent

50 O&M MATERIALS
Maintenance of system/pole change outs
MST's, Closures, Strand, Fiber, Pole Hardware, Vaults, ETC…
Hampton Cove (Add Transformer)

$
$
$

5,000,000 $
50,000 $
94,000 $

41,365 $
$
$

418,147 $
17,154 $
$

6,498,945
81,254
309,617

130.0%
162.5%
329.4%

50 O&M MATERIALS TOTAL
51 NEW CONSTRUCTION MATERIALS
Internally Scheduled

$

5,144,000 $

41,365 $

435,301 $

6,889,815

133.9%

Irrigation System/Sod at Chase Operations Center
General Development and Extensions
AMI Modules - Purchase/Install by Contractor (MIV)
AMI Communication Network
Big Cove Area Substation (Carryover)
Big Cove Area Distribution (Carryover)
County Line (46kV Line to Railroad Bed) (Carryover)
Redstone - Complete 161/25kV Substation (Carryover)
Redstone - Distribution Circuits (Carryover)
Capshaw Substation Project
Sunlake - Add Transformer
Sunlake - New Circuit Switch, Relay, & 46kV tap
Madison Town Center - Steel For Substation
Madison Town Center (Complete Substation)
Madison Town Center (New Transmission Line)
Install Security System - 2 Electric Substations
Irrigation System at Chase J Building
Green Field joint trench with power for fiber conduit pathing.
Tier Two Buildout for projects
New construction for DF lease agreements build outs
Fiber Network Build

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

20,000
3,300,000
7,976,823
250,000
500,000
160,000
930,000
200,000
540,000
40,500
22,000
500,000
1,100,000
135,000
66,000
20,000
225,250
25,000
25,000
23,000,000

388,615
417,950
546,545
98,967
7,440
16,591
-

4,643,979
7,448,079
148,750
1,603,537
1,732,030
93,546
5,354
31,329
331,393
786,676
14,880
151,446
291,485
3,133
8,859,315

0.0%
140.7%
93.4%
59.5%
320.7%
0.0%
N/A
186.2%
46.8%
1.0%
77.4%
0.0%
66.3%
71.5%
11.0%
229.5%
0.0%
129.4%
12.5%
0.0%
38.5%

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

1,084,340
934,621
93,671
318,611
239,159
17,022
7,440
151,446
(23,894)
995
3,544,147

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

________________________________________________________________________________
Master Page # 45 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Electric Capital Progress Report
Fiscal Year 2019
Project Name/Description

Budget

Blue Origins 46 kV Transmission Ext and Distribution Circuits

$

690,000 $

324,604 $

FYTD incl.
Encumbered
129,876 $
469,905

51 NEW CONSTRUCTION MATERIALS TOTAL
52 RENEW AND REPLACE MATERIALS
Internally Scheduled

$ 39,725,573 $

1,800,712 $

6,497,432 $ 26,614,836

AC-2 Split Data Room Primary unit 7.5 Tons
AC- / Split / Nat.Gas 2 Tons Stores Supv. office
AC / Split / Nat.Gas 2.5 Tons Stores Offices
Replace fixed air compressor (Ingersoll Rand) at Fleet
Chase Primary Sub 3 ton split unit (Trane)
Misc upgrades & COH/Roadway Relocations
Vintage Substation - 1957 Transformer (Carryover)
Relocate Madison Substation
Memorial Parkway Relocates (Mastin Lake)
Wah Chang - Replace 1978 Transformer (Bad LTC)
2 Honeywell NVRs
Fiber Road Relocations
2 Honeywell NVRs
Externally Scheduled
Martin Road (Wall Triana to Old Jim Williams)
Martin Road (Zierdt to Old Jim Williams) (Carryover)
Church Street (Ph 1 Monroe to Pratt) (Carryover)
Zierdt Road (Martin to Madison) (Carryover)
Northern Bypass Relocates

$
$
$
$
$
$
$
$
$
$
$
$
$

30,000
17,500
14,500
25,000
14,000
225,000
500,000
850,000
113,000
16,000
20,000
16,000

$
$
$
$
$
$
$
$
$
$
$
$
$

$
$
$
$
$

450,000
450,000
225,000
10,000
850,000

$
$
$
$
$

$

3,826,000 $

$

$

52 RENEW AND REPLACE MATERIALS TOTAL

Encumbered

6,608
141,260
-

September

% Budget Spent
68.1%

67.0%

$
$
$
$
$
$
$
$
$
$
$
$
$

36,710
186,678
284,137
-

$
$
$
$
$
$
$
$
$
$
$
$
$

24,776
15,966
13,006
28,722
14,832
425,153
1,288,226
330,194
1,114
-

82.6%
91.2%
89.7%
114.9%
105.9%
189.0%
N/A
257.6%
0.0%
292.2%
0.0%
5.6%
0.0%

$
$
$
$
$

3,098
-

$
$
$
$
$

48,122
75,243
11,371
-

0.0%
10.7%
33.4%
113.7%
0.0%

147,868 $

510,624 $

2,276,725

59.5%

200,000 $

-

$

-

$

-

0.0%

200,000 $

-

$

-

$

-

0.0%

-

70 LAND
Land for Future Substations

70 LAND TOTAL
72 TOOLS AND EQUIPMENT

________________________________________________________________________________
Master Page # 46 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Electric Capital Progress Report
Fiscal Year 2019
Project Name/Description
Spider Rig
Survey Grade GPS Receiver
Energy Survey Drone (Attics & Floors) W/ 40hr training
Sumitomo Ribbon clad alignment equipment
Exfo FTB-1 OTDR
Exfo FTB-1 OTDR
OLTS Test Set - Exfo light source and meter
Aerial Lashing J2 Machine-GMP Apollo lasher
Ridgid Conduit Camera System
Megger - DET2/3 Earth Tester

72 TOOLS AND EQUIPMENT TOTAL

Budget
$
$
$
$
$
$
$
$
$
$

$

$
$
$
$
$
$
$
$
$
$

-

$
$
$
$
$
$
$
$
$
$

-

FYTD incl.
Encumbered
$
$
$
$
14,772
$
14,480
$
14,199
$
10,638
$
$
16,835
$
-

135,000 $

-

$

-

$

70,924

52.5%

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

-

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

227,910
286,398
233,753
171,868
38,396
29,597
155,551
155,551
98,314
57,883
171,868
63,408
59,267
73,349
171,868
171,868

96.2%
112.3%
98.6%
110.2%
85.3%
95.5%
103.7%
103.7%
57.8%
77.2%
110.2%
199.4%
118.3%
97.8%
99.9%
99.9%

25,000
21,000
15,000
15,000
15,000
11,000
6,000
20,000
7,000

Encumbered

September

% Budget Spent
0.0%
0.0%
N/A
98.5%
96.5%
94.7%
96.7%
0.0%
84.2%
0.0%

73 TRANSPORTATION
Replace truck #315 & 55' aerial unit
Replace truck #394 & aerial unit #394.8
Replace truck #305 & aerial unit #305.8
Replace truck #313 & aerial unit #313.8
Replace chipper #396.9
Replace truck #440
Replace truck #479
Replace truck #342
Replace dump truck #324
Addition to Fleet: Ford F-350 & meter body
Replace truck #445 & aerial unit #445.8
Replace truck #466
Replace truck #469
Replace truck #795
Replace truck #353
Replace truck #304

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

237,000
255,000
237,000
156,000
45,000
31,000
150,000
150,000
170,000
75,000
156,000
31,805
50,102
75,000
172,000
172,000

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

286,398
233,753
171,868
155,551
155,551
98,314
57,883
171,868
18,835
59,267
25,921
171,868
171,868

________________________________________________________________________________
Master Page # 47 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Electric Capital Progress Report
Fiscal Year 2019
Project Name/Description
Replace truck #345
Replace truck #374
Mini Excavator 8X20 Trailer
Portable Generators for fiber hut backup
Purchase of arrow board - traffic control
Addition to fleet: mini excavator & trailer
Addition to fleet: Hydraulic Power Reel Trailer
New Ford Transit-150 Van
1/3 of Joint Ditch Witch JT30AT

Budget

Encumbered
171,868
170,071
-

$
$
$
$
$
$
$
$
$

FYTD incl.
Encumbered
$
171,868
$
170,071
$
10,988
$
58,296
$
$
75,814
$
26,749
$
25,548
771 $
147,136

$
$
$
$
$
$
$
$
$

172,000
159,000
11,000
60,000
13,000
85,000
26,000
25,000
150,000

$

2,863,907 $

Add additional Dispatch radio to console 5
RTU Cabinet Structures
PDS test server software.

$
$
$

25,000 $
12,000 $
26,000 $

-

$
$
$

-

74 COMMUNICATION EQUIPMENT TOTAL
75 COMPUTER EQUIPMENT

$

63,000 $

-

$

-

VMWare - Upgrade licensing to Enterprise version
Varonis Software - Data Classification and Governance
Microsoft - Add'l server licensing as needed for growth
GPS Clock for Network Time and SCADA systems
VEEAM - additional backup licensing for growth
NetMotion-add server license for resiliency/load balance
AVAYA PBX Upgrades
Fiber Networking Equipment in HUTS
High Density Switches for Spragins CommRoom
Wireless Routers for Stores (outdoor) implementation
Load Balancers for network resiliency
PKI / Certificate Management for Cyber Security needs

$
$
$
$
$
$
$
$
$
$
$
$

30,000
35,000
50,000
30,000
20,000
20,000
155,000
600,000
60,000
20,000
104,180
40,000

73 TRANSPORTATION TOTAL

$
$
$
$
$
$
$
$
$

September

2,120,884 $

771 $

% Budget Spent
99.9%
107.0%
99.9%
97.2%
0.0%
89.2%
102.9%
102.2%
98.1%

2,853,319

99.6%

$
$
$

9,900
25,030

0.0%
82.5%
96.3%

$

34,930

55.4%

$
$
$
$
$
$
$
$
$
$
$
$

29,260
10,040
4,636
246,946
41,866
-

0.0%
0.0%
58.5%
33.5%
0.0%
23.2%
0.0%
41.2%
69.8%
0.0%
0.0%
0.0%

74 COMMUNICATION EQUIPMENT

$
$
$
$
$
$
$
$
$
$
$
$

102,036
41,866
-

$
$
$
$
$
$
$
$
$
$
$
$

29,260
144,910
-

________________________________________________________________________________
Master Page # 48 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Electric Capital Progress Report
Fiscal Year 2019
Project Name/Description
SCADA Hub Router replacements
Chase Server - Admin Server for Tape AIX Servers and Storage
330K SAP Licenses for AMI and 50 User Licenses for Oracle
Disk Storage for SAN & Disaster Recover Mirroring
Redaction, Encryption data at rest for Onbase System for PII

75 COMPUTER EQUIPMENT TOTAL

Budget

Encumbered
$
$
$
$
$

3,411
-

September
$
$
$
$
$

FYTD incl.
Encumbered
38,336 $
41,747
$
5,408
$
429,844
$
42,967
$
-

% Budget Spent

$
$
$
$
$

50,820
5,400
450,000
43,000
53,185

82.1%
100.1%
95.5%
99.9%
0.0%

$

1,766,585 $

147,314 $

212,505 $

852,714

48.3%

$
$

1,126,000 $
135,000 $

203,679 $
13,500

24,895 $
$

807,257
191,939

71.7%
142.2%

$

1,261,000 $

217,179 $

24,895 $

999,196

79.2%

$

2,300,000 $

607,155 $

380,962 $

3,849,826

167.4%

$

2,300,000 $

607,155 $

380,962 $

3,849,826

167.4%

$
$
$
$
$
$
$
$
$
$
$
$
$
$

-

76 METERING EQUIPMENT
AMI Meter Change out Project
Metering Equipment

76 METERING EQUIPMENT TOTAL
77 TRANSFORMERS
Distribution Transformers

77 TRANSFORMERS TOTAL
UNBUDGETED & CARRYOVER ITEMS
Operations Management Offices
SE Water Substation
Raw Water Transformer - 1964 Transformer
Green Mountain Upgrades
SEL Fault Finder Unbudgeted Carryover
AJ-19290 TRAX 220 Load Loss Tester
Radiodetection RD 4000 Fault Locator (Unbudgeted)
Power Out Crane Truck # 798 & 799
Replace truck #369.0
Replace truck #323
Extended Cab, 1 Ton, 4X4 Service Bed Truck
#579.0 REPLACE WITH FORD F350 1 TON W/SERVICE
Replace Truck #737 2007 w/198,000 miles
Replace Truck #743 2007 w/135,000 miles standard cab

$
$
$
$
$
$
$
$
$
$
$
$
$
$

11,400
-

$
$
$
$
$
$
$
$
$
$
$
$
$
$

(1,500)
-

$
$
$
$
$
$
$
$
$
$
$
$
$
$

18,927
(2,547)
20,092
49,841
19,791
46,302
7,337
21,200
313,777
235,636
12,186
16,553
675
675

________________________________________________________________________________
Master Page # 49 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

N/A
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 Electric Capital Progress Report
Fiscal Year 2019
Project Name/Description
Replace Truck #724 2007 w/130,252 miles standard cab
Replace Truck #751 2009 w/111,000 miles standard cab
Replace Truck 749 2009 w/132,794 miles standard cab
PDS Data Forwarding
4 Storage Area Network Switches 2 @ Spragins, 2 @ Chase
Implement Bar Code Scanning at Chase/Triana Warehouse
Externally Scheduled
Winchester Rd

UNBUDGETED & CARRYOVER ITEMS TOTAL

These projects will not have any dollars spent.
These projects will be pushed out to complete in a future year.

Budget

Encumbered

$
$
$
$
$
$

-

$
$
$
$
$
$

10,000
-

$
$
$
$
$
$

-

FYTD incl.
Encumbered
$
675
$
675
$
675
$
12,500
$
10,000
$
130,158

$

-

$

-

$

-

$

$
$
$ 57,285,065 $
$
$

September

21,400 $
5,103,876 $

% Budget Spent

(10,470)

(1,500) $
904,658
8,060,991 $ 45,346,942

156,000
882,000

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Master Page # 50 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

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79.2%

 Electric Financial Report
September 2019

________________________________________________________________________________
Master Page # 51 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Sales Revenues Budget to Actual
Electric Sales Revenues Budget to Actual FY2019
$60,000,000

$50,000,000

$40,000,000

$30,000,000

Budget FY19

Actual FY19
$20,000,000

$10,000,000

$-

October November December January February
March
April
May
June
July
August September
________________________________________________________________________________
Master Page # 52 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Purchased Power Budget to Actual
$50,000,000

Electric Purchased Power Budget to Actual FY 2019

$45,000,000
$40,000,000

$35,000,000
$30,000,000
$25,000,000
$20,000,000

Budget FY19

Actual FY19

$15,000,000
$10,000,000
$5,000,000
$-

October November December January February March
April
May
June
July
August September
________________________________________________________________________________
Master Page # 53 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Margin Budget to Actual
$16,000,000

Electric Margin Budget to Actual FY2019

$14,000,000
$12,000,000
$10,000,000
$8,000,000

Budget FY19

Actual FY19
$6,000,000
$4,000,000
$2,000,000
$October November December January

February

March

April

May

June

July

August September

________________________________________________________________________________
Master Page # 54 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Electric Revenues YTD September 2019
Sales Revenues

Budget

Actual

Other Operating Revenue

Residential Sales

$261,308,619

$261,768,248

Forfeited Discounts

$2,483,328

$2,715,496

$40,673,602

$42,286,445

Aid-To-Construction

$6,536,220

$9,120,168

$137,849,494

$140,764,231

Connection/Tap Fees

$2,185,348

$2,412,762

Large Commercial Sales

$29,893,850

$26,970,670

Collection/Reconnect Fees

$1,633,256

$1,656,716

Small Industrial Sales

$21,184,104

$18,538,860

Miscellaneous

$1,542,970

$2,896,725

Large Industrial Sales

$18,166,174

$17,623,591

Total

$14,381,123

$18,801,867

$4,731,282

$5,111,686

$0

$0

$513,807,125

$513,063,729

Small Commercial Sales
Medium Commercial Sales

Lighting Sales

Other Sales
Total

Non Operating Revenue
Interest Income

Warrant Proceeds

Budget

Actual

Rental Income

Warrant Proceeds

$22,855,000

$25,913,925

Reimbursements

Total

$22,855,000

$25,913,925

Total
Total Revenues

Budget

Budget

Actual

Actual

$425,000

($179,531)

$12,597,635

$12,588,379

$1,251,018

$1,939,794

$14,273,653

$14,348,642

Budget

Actual

$565,316,901

$572,128,163

________________________________________________________________________________
Master Page # 55 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Actual Sales Revenue Breakdown/Budget To Actual
Actual Sales Revenue Breakdown

Estimated vs. Actual
$600,000,000

2%
3%

5%

$500,000,000

$400,000,000

$300,000,000

90%

$200,000,000

$100,000,000

Sales Revenues

Other Operating Rev.

Non Operating Rev.

Warrant Proceeds

$0
Sales
Revenues

Budget

Other
Operating
Rev.

Non
Operating
Rev.

Actual

Warrant
Proceeds

________________________________________________________________________________
Master Page # 56 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Electric Expenses YTD September 2019
Employee Expenses

Payroll-Straight Time
Payroll-Overtime
Health Insurance
FICA Taxes - Employers
Unemployment
Workers Comp
Employer Pension Expense
Other Employee Benefits
Total

Budget

$26,445,020
$2,853,860
$6,591,284
$2,212,465
$0
$179,377
$4,496,195
$2,235,700
$45,013,901

Actual

$24,052,280
$3,749,449
$6,707,336
$2,214,751
$2,929
$104,395
$3,794,829
$2,143,187
$42,769,157

Services

Outside Services
Legal Services
Public Information
Total
Travel and Training
Education & Training
Trade/Memberships Dues
Employee Meals
Business Travel

Supplies and Materials
Small Tools & Equipment
Postage

Materials: Non-Stock
Office Supplies & Expenses
Fuel
Purchased Propane
Board Expenses
Total

Budget

$1,361,273
$757,063
$1,158,976
$541,457
$690,968
$0
$11,542
$4,521,280

Actual

$1,302,435
$730,785
$2,434,074
$655,690
$707,766
$0
$10,794
$5,841,544

Total
Equipment Maintenance

Equipment Maintenance
Software Hardware Main.
Total

Budget

$10,497,394
$365,865
$663,747
$11,527,006
Budget

Actual

$10,939,137
$182,825
$696,087
$11,818,049
Actual

$492,780
$333,512
$115,901
$69,002
$1,011,195
Budget

$36,681
$1,895,917
$1,932,598

$431,937
$311,330
$87,906
$51,871
$883,044
Actual

$27,686
$1,949,748
$1,977,435

________________________________________________________________________________
Master Page # 57 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Electric Expenses YTD September 2019
Utilities

Budget

Actual

Other Expenses

Budget

Actual

Utilities

$717,215

$850,290

Rentals

$602,647

$643,151

Total

$717,215

$850,290

Uncollectible Accounts

$288,881

$269,588

$5,232

$115,664

Injuries & Damages
Commodity

Budget

Actual

Cash Overages & Shortage

Purchased Power

$424,318,350

$429,473,972

Insurance

Total

$424,318,350

$429,473,972

Interest Expense-Customer Deposits

Tax Equivalents

Budget

Total

$12,035,623

$10,966,677

Total

$12,035,623

$10,966,677

Budget

$12

$385,566

$0

$542,384

$1,376,890

$1,956,366

Actual

Tax Equivalents

Debt Service

$864

$479,266

Total Expenses Excluding Capital

Budget

$506,365,784

Actual

$509,238,278

Actual

Debt Service Expenses

$3,911,725

$2,701,746

Total

$3,911,725

$2,701,746

________________________________________________________________________________
Master Page # 58 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Electric Expenses YTD September 2019
Capital
Mat. - Operation & Main.

Mat. - New Construction
Mat. - Renew & Replace
Land
Office Furniture/Equipment
Tools & Work Equipment
Transportation Equipment
Communication Equipment
Computer Equipment
Metering Equipment
Transformers
Warrant Principal
Total

$
$
$
$
$
$
$
$
$
$
$
$
$

Total Expenses/Capital

$

Budget
5,144,000
39,035,573
3,826,000
200,000
135,000
2,863,907
63,000
1,766,585
1,261,000
2,300,000
1,865,000
58,460,065

$
$
$
$
$
$
$
$
$
$
$
$
$

Budget
564,825,849 $

Actual
898,499
48,032,193
1,298,980
140,494
1,335,162
888,348
782,017
3,242,671
1,865,000
58,483,364

Actual
567,721,642

________________________________________________________________________________
Master Page # 59 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Actual Cost Breakdown & Budget to Actual
Budget vs. Actual Without Purchase of Power

Actual Cost Breakdown Without Purchase of Power
$60,000,000

31%

$50,000,000

42%

$40,000,000

4%
9%

$30,000,000
$20,000,000

8%
$10,000,000

1%
1%

1%

1%

$-

2%
Employee Expenses
Supplies and Materials
Services
Travel and Training
Equipment Maintenance
Utilities
Tax Equivalents
Debt Service
Budget
Actual
________________________________________________________________________________
Other Expenses
Capital

Master Page # 60 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Electric YTD Variances
Revenue Variances
• Sales Revenues are equal to budget year to date.
• Miscellaneous revenue – New Home Credits $1.2M, Damage Work Order
Revenue $314k, Write off of customer refunds $198k, 1st install $352k.
Expense Variances
• Payroll Straight Time expenditures are below budget partially due to First
Installs of $487K.
• Materials: Non-Stock – Prior Year Inventory Pricing Error corrected in
current Year $111k, Inventory – Other $1M, Fleet Supplies - $683k
• Outside Services – timing of line clearance.
________________________________________________________________________________
Master Page # 61 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Review of Cash Balances
Yearly Cash Balances Without Deposits
$45,417,573
$38,792,171
$35,628,394

$35,092,639

$34,347,654

$18,570,125

$15,548,555

$17,861,843

$6,968,777

FYE
09/30/2009

FYE
09/30/2010

FYE
09/30/2011

FYE
09/30/2012

FYE
09/30/2013

FYE
09/30/2014

FYE
09/30/2015

FYE
09/30/2016

FYE
09/30/2017

FYE
09/30/2018

09/30/2019

$(9,703,860)
$(17,948,463)

________________________________________________________________________________
Master Page # 62 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Review of Cash Balances
Monthly Cash Balances Without Deposits
$20,968,328
$19,405,998
$17,891,826

$15,548,555

$17,841,938

$16,516,459 $16,479,529

$16,509,252

$13,002,679

$17,197,396

$17,861,843

$16,142,259
$13,849,379

09/30/2018 10/31/2018 11/30/2018 12/31/2018 01/31/2019 02/28/2019 03/31/2019 04/30/2019 05/31/2019 06/30/2019 07/31/2019 08/31/2019 09/30/2019

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Master Page # 63 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 City of Huntsville Electric System
Statements of Revenues, Expenses, and Changes in Net Position

DRAFT
Current Month

September 2019
Current Year
Operating Revenue
Residential
Large commercial and industrial
Small commercial
Government Sales
Public street and highway lighting
Other Sales
Total Operating Income
Purchased Commodity
Purchased Commodity
KWH Charges
Demand Charges
Total Purchased Commodity

$

$

$

$

Prior Year

Year to Date

Difference

24,673,366 $
19,137,692
4,083,988
421,722
48,316,769 $

25,764,967 $ (1,091,600)
18,916,981
220,712
3,906,621
177,366
411,774
9,948
49,000,343 $ (683,574)

-4.2%
1.2%
4.5%
0.0%
2.4%
0.0%
-1.4%

$
27,252,557
12,258,827
39,511,384 $

$
25,853,384
1,399,173
11,607,142
651,686
37,460,526 $ 2,050,858
11,539,817 $ (2,734,433)
23.55%

Gross Profit Margin

$

8,805,385 $
18.22%

Other Operating Income

$

1,813,563 $

1,420,246 $

$

-

-

$

13,619
2,331,647
456,794
2,005,168
159,618
2,080,043
7,046,889 $

27,810
(14,191)
1,810,969
520,678
725,347
(268,553)
3,165,710
(1,160,542)
136,087
23,530
3,650,099
(1,570,056)
9,516,022 $ (2,469,133)

$

3,572,059 $

3,444,041 $

128,018

$

$

(41,720) $
775,835
362,018
2,242
(110,347)
988,028 $

$
1,097,561
615,439
2,242
(633,331)
1,081,911 $

(41,720)
(321,726)
(253,420)
522,984
(93,883)

$

2,584,031 $

2,362,131

$

913,169
1,670,862 $

921,814
1,440,317 $

Operating Expenses
Purification
Pumping
Transmission
Distribution
Customer accounting
Administrative and general
Payroll Taxes
Depreciation
Total Operating Expenses
Operating Income
Non-Operating (Revenues) Expenses
Gain or Loss on Sale of Assets
Interest income
Interest expense
Amortization of bond discount
Amortization of bond premium
Total Other Revenue (Expenses)
Income Before Taxes
Capital Contributions
Transfers Out - Tax Equivalent
Increase (Decrease) in Net Position

%

$

$

393,318

-

Current Year

Prior Year

Difference

%

$ 261,756,611 $ 260,774,819 $
203,897,351
200,216,020
42,286,445
42,397,969
5,111,686
4,777,392
$ 513,052,092 $ 508,166,200 $

981,791
3,681,331
(111,524)
334,294
4,885,892

0.4%
1.8%
-0.3%
0.0%
7.0%
0.0%
1.0%

0.0%
5.4%
5.6%
5.5%

$

(1,804,289)
6,311,589
4,507,301

0.0%
-0.6%
5.0%
1.1%

-23.7%

$

83,578,121 $
16.29%

83,199,529 $
16.37%

378,591

0.5%

27.7%

$

20,190,347 $

17,256,557 $

2,933,790

17.0%

0.0%
0.0%
-51.0%
28.8%
-37.0%
-36.7%
17.3%
-43.0%
-25.9%

$

$
$
297,520,272
299,324,561
131,953,700
125,642,110
$ 429,473,972 $ 424,966,671 $

-

$

-

$

$

397,758
20,910,552
5,756,435
24,329,218
1,918,780
23,395,869
76,708,612 $

339,496
16,728,443
6,729,594
23,197,472
1,694,896
18,774,994
67,464,894 $

58,262
4,182,109
(973,159)
1,131,746
223,884
4,620,876
9,243,718

0.0%
0.0%
17.2%
25.0%
-14.5%
4.9%
13.2%
24.6%
13.7%

3.7%

$

27,059,856 $

32,991,192 $

(5,931,336)

-18.0%

0.0%
-29.3%
-41.2%
0.0%
-82.6%
-8.7%

$

$

(127,025) $
179,531
4,454,836
26,906
(1,237,612)
3,296,636 $

(112,404) $
(329,330)
4,811,636
26,906
(1,371,083)
3,025,726 $

221,901

9.4%

$

23,763,220 $

29,965,466

(6,202,245)

-20.7%

(8,645)
230,545

0.0%
-0.9%
16.0%

$

10,966,677
12,796,543 $

11,097,956
18,867,509 $

(131,279)
(6,070,966)

0.0%
-1.2%
-32.2%

________________________________________________________________________________
Master Page # 64 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

-

(14,621)
13.0%
508,860 -154.5%
(356,800)
-7.4%
0.0%
133,470
-9.7%
270,909
9.0%

 City of Huntsville Electric System
Statements of Net Position

DRAFT

September 2019
Assets and Deferred Outflows of Resources
Current Assets
Cash and Cash Equivalents
Investments
Board Designated Funds
Cash and Cash Equivalents
Investments
Restricted Funds
Customer Deposits
Cash and Cash Equivalents
Investments
Accounts Receivable - Trade, Net of Allowance
Inventories - Materials and Supplies
Prepaid Expenses
Accrued Interest, Rent and Other Receivables
Total Current Assets

Current Year

$

$

Prior Year

1,474,452 $
16,321,173

15,337,591

6,997,614
53,052,021
12,459,855
68,494
3,744,920
94,118,530 $

6,997,614
53,563,605
11,502,064
86,907
3,123,587
90,822,333

39,309,631
-

37,887,665
32,517,572
70,405,236

447,114

Non-Current Assets
Restricted Assets
Customer Deposits
Cash and Cash Equivalents
Investments
Warrant Funds
Cash and Cash Equivalents
Investments
Cash, Cash Equivalents, and Investments

$

4,629,138
43,938,769 $

Other Assets
Regulatory Asset - Revenue Warrant Expense

$

420,207 $

Utility Plant
Plant in service
Construction in progress
Total Utility Plant
Less: Accumulated depreciation
Total Utility Plant
Total Non-Current Assets
Total Assets
Deferred Outflows of Resources
Deferred Amount on Debt Refunding
Goodwill
Deferred Amount on Pension Employer Contributions
Total Deferred Outflows of Resources
Total Assets and Deferred Outflows of Resources

$
$
$
$

210,965
-

635,776,735
60,596,685
696,373,420
(334,811,211)
361,562,209
405,921,186

$
$
$
$

583,233,223
58,852,108
642,085,331
(314,421,514)
327,663,816
398,516,166

$

500,039,715 $

489,338,499

$

$

948,554 $
4,816,942
5,765,497 $

980,364
4,816,942
5,797,307

$

505,805,212 $

495,135,806

________________________________________________________________________________
Master Page # 65 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 City of Huntsville Electric System
Statements of Net Position
September 2019
Liabilities and Deferred Inflows of Resources
Current Liabilities
Accounts Payable - Trade
Accounts Payable - Other Utility Departments
Compensated Absences
Accrued Payroll
Other Current Liabilities
Total Current Liabilities payable from current assets

45,722,887 $
2,323,090
3,146,689
621,522
3,490,950
55,305,137 $

45,886,645
2,156,000
3,252,332
648,098
2,758,579
54,701,654

$

$
6,997,614
2,800,000
1,288,367
11,085,981 $

6,997,614
1,865,000
1,319,450
10,182,064

Non-Current Liabilities
Net Pension Liability, Less Current Portion
Net OPEB Liability, Less Current Portion
Customer Deposits, Less Current Portion
Revenue Warrants, Less Current Portion
Unamortized Bond Premium
Total Non-Current Liabilities

$

31,570,249
28,798,013
39,309,631
74,775,000
12,130,532
186,583,425 $

31,570,249
29,816,903
37,887,665
77,575,000
13,368,145
190,217,962

Total Liabilities

$

252,974,543 $

255,101,680

Deferred Inflows of Resources
Deferred Pension Plan Earnings Difference

$

1,108,556 $

1,108,556

Liabilities Payable From Restricted Assets
Net Pension Liability, Current Portion
Net OPEB Liability, Current Portion
Customer Deposits, Current Portion
Revenue Warrants, Current Portion
Interest Payable
Total Liabilities Payable from Restricted Assets

$

$

$

Net Position
Invested in Capital Assets, Net of Related Debt
Restricted
Unrestricted
Total Net Position

270,988,518
50,936,383
(70,202,788)
251,722,113

234,963,700
77,402,850
(73,440,980)
238,925,570

Total Liabilities, Deferred Inflows and Net Position

505,805,212

495,135,806

________________________________________________________________________________
Master Page # 66 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 City of Huntsville Electric System Financial Statements
Statistical Data Comparisons
September 2019
Current Month

Year to Date

Current Year

Prior Year

243,282,562
211,324,985
36,962,324
3,056,271
494,626,142
339,637
494,965,779

236,788,542
211,230,364
35,535,645
3,023,890
486,578,441
329,621
486,908,062

1,087,287
431,073

Kilowatt Hours Purchased

512,922,479

Revenue for General Power >50kw, kw

$ 5,262,591

$

Line losses & unaccounted for
Percent of losses to purchases
Revenue per kWh (cents)
Cost per kWh purchased (cents)
Margin on Sales
Load Factor

17,956,700
2,054,276
3.50%
0.42%
$
0.0976 $
0.1006
$
0.0531 $
0.0529
18.22%
23.55%
64.62%
63.38%

222,547,191
255,390,558
4.08%
4.63%
$
0.0981 $
0.0965
$
0.0546 $
0.0542
16.29%
16.37%

kWh Sold & Used
Residential
Large Commercial and Industrial
Small Commercial
Street and Athletic Lighting
Total
Kilowatt hrs for own use
Total kWh sold & used
Kilowatt Hours Purchased
Purchased from TVA
System KW Demand
End Use KW Demand

Customer Data
Residential
Large Commercial and Industrial
Small Commercial
Street Lighting
Total

Current Year

Prior Year

2.7%
0.0%
4.0%
1.1%
1.7%
3.0%
1.7%

2,560,331,279
2,247,785,834
378,182,686
37,937,904
5,224,237,703
3,664,206
5,227,901,909

2,567,625,679
2,283,507,104
375,895,697
34,299,819
5,261,328,299
3,626,168
5,264,954,467

-0.3%
-1.6%
0.6%
10.6%
-0.7%
1.0%
-0.7%

1,056,886
409,890

2.9%
5.2%

12,397,662
4,470,906

12,257,601
4,565,270

1.1%
-2.1%

488,962,338

4.9%

5,450,449,100

5,520,345,025

-1.3%

-3.0%
0.5%

52,373,214

168,699
2,894
18,992
663
191,248

1.7%
0.7%

164,945
2,938
18,569
653
187,105

________________________________________________________________________________
Master Page # 67 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 BOARD RECAP
Electric System
Fiscal Year to Date

*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*

FYTD
2018
ACTUALS

FYTD
2019
ACTUALS

FYTD
2019
PLAN

VARIANCE

%

(260,792,769)
(42,397,969)
(138,185,406)
(24,189,589)
(19,819,354)
(18,021,670)
(4,777,392)
(2,718,184)
(6,213,716)
(2,307,999)
(329,330)
(9,742,158)
(1,597,182)
(1,165,269)
(15,951,590)
(2,634,346)

(261,768,248)
(42,286,445)
(140,764,231)
(26,970,670)
(18,538,860)
(17,623,591)
(5,111,686)
(2,715,496)
(9,120,168)
(2,412,762)
179,531
(12,588,379)
(1,656,716)
(1,939,794)
(25,913,925)
(2,896,725)

(261,308,619)
(40,673,602)
(137,849,494)
(29,893,850)
(21,184,104)
(18,166,174)
(4,731,282)
(2,483,328)
(6,536,220)
(2,185,348)
(425,000)
(12,597,635)
(1,633,256)
(1,251,018)
(22,855,000)
(1,542,970)

(459,629)
(1,612,843)
(2,914,737)
2,923,180
2,645,245
542,583
(380,404)
(232,167)
(2,583,948)
(227,414)
604,531
9,256
(23,460)
(688,776)
(3,058,925)
(1,353,755)

0.18%
3.97%
2.11%
-9.78%
-12.49%
-2.99%
8.04%
9.35%
39.53%
10.41%
-142.24%
-0.07%
1.44%
55.06%
13.38%
0.00%
87.74%

Total Revenues (Credit)

(550,843,923)

(572,128,163)

(565,316,901)

(6,811,262)

1.20%

Sales Revenues (Credit)

(508,184,150)

(513,063,729)

(513,807,125)

* Purchased Commodity (10)

424,966,671

429,473,972

Gross Margin
Gross Margin %

(83,217,479)
16.38%
23,150,510
3,151,342
923,828
736,550
340,525
18,788
6,935,243
298,478
791,195
532,463
2,158,098
617,042
686,403
397,561
318,135
89,107
122,230
764,944
47,321
(54)
8,929
2,307,221

*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*

Residential Sales (80)
Small Commercial Sales (81)
Medium Commercial Sales (82)
Sales Large Commercial (83)
Sales Small Industrial (84)
Sales Large Industrial (85)
Hydrant/Lighting Sales (86)
Forfeited Discounts (87)
Aid-To-Construction (88)
Connection/Tap/Fees (89)
Interest Income (90)
Rental Income (91)
Collection/Reconnect Fees (92)
Reimbursements (94)
Warrant Proceeds (95)
Other Sales (96)
Miscellaneous Revenue (99)

DRAFT

September 2019

Payroll - Straight Time (01)
Payroll - Overtime (02)
Small Tool&Equipment (03)
Postage (04)
Education & Training (05)
Equipment Maintenance (06)
Outside Services (07)
Legal Fees (08)
Purchased Propane (11)
Other Utilities (12)
Rentals (13)
Materials: Non-Stock (14)
Office Supply & Expense (15)
Public Information (16)
Uncollectible Accounts (17)
Trade/Membership Dues (18)
Employee Meals (19)
Injuries & Damages (20)
Fuel (22)
Total Quality Management (23)
Business Travel (24)
Cash Overages & Shortages (29)
Board Expenses (30)
Health Insurance (31) - OPEB

743,396

-0.14%

424,318,350

5,155,622

1.22%

(83,589,758)
16.29%

(89,488,775)
17.42%

5,899,018

-6.59%

24,052,280
3,749,449
1,302,435
730,785
431,937
27,686
10,939,137
182,825
850,290
643,151
2,434,074
655,690
696,087
269,588
311,330
87,906
115,664
707,766
51,871
12
10,794
2,279,188

26,445,020
2,853,860
1,361,273
757,063
492,780
36,681
10,497,394
365,865
717,215
602,647
1,158,976
541,457
663,747
288,881
333,512
115,901
5,232
690,968
69,002
864
11,542
-

(2,392,740)
-9.05%
895,590
31.38%
(58,839)
-4.32%
(26,279)
-3.47%
(60,843)
-12.35%
(8,995)
-24.52%
441,742
4.21%
(183,040)
-50.03%
0.00%
133,075
18.55%
40,504
6.72%
1,275,098
110.02%
114,233
21.10%
32,340
4.87%
(19,293)
-6.68%
(22,182)
-6.65%
(27,995)
-24.15%
110,432 2110.71%
16,798
2.43%
0.00%
(17,131)
-24.83%
(852)
-98.61%
(748)
-6.48%
2,279,188
0.00%

Page 1 of 2

________________________________________________________________________________
Master Page # 68 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 BOARD RECAP
Electric System
Fiscal Year to Date

DRAFT

September 2019
FYTD
2018
ACTUALS

FYTD
2019
ACTUALS

(23,433)
4,368,606
2,070,402
3,434
283,040
4,234,702
1,975,514
11,097,956
2,905,661
456,479
561,799
1,849,931

(131,263)
4,559,410
2,214,751
2,929
104,395
3,794,829
2,143,187
10,966,677
2,701,746
385,566
542,384
1,949,748

6,591,284
2,212,465
179,377
4,496,195
2,235,700
12,035,623
3,911,725
479,266
1,895,917

(131,263)
(2,031,874)
2,286
2,929
(74,982)
(701,366)
(92,513)
(1,068,946)
(1,209,979)
(93,700)
542,384
53,832

0.00%
-30.83%
0.10%
0.00%
-41.80%
-15.60%
-4.14%
-8.88%
-30.93%
-19.55%
0.00%
2.84%

Total Expenses (Debit) less Purchased Commodity

74,179,950

79,764,307

82,047,434

(2,283,127)

-2.78%

Total Expenses (Debit) with Purchased Commodity

499,146,621

509,238,278

506,365,784

2,872,495

0.57%

(4,245,501)
8,996,620
(2,527,020)
(200,000)
5,494
(1,528,745)
(63,000)
(878,237)
(478,983)
942,671

*
*
*
*
*
*
*
*
*
*
*
*

Health Insurance (31) - retiree
Health Insurance (31) - active
FICA Taxes - Employers (32)
Unemployment Compensation (33)
Workers Compensation Ins (34)
Employers Pension Expense (35)
Other Employee Benefits (36)
Tax Equivalent (37)
Debt Service Expense (38)
Insurance (39)
Interest Expense - Customer Deposits
Software/Hardware Maintenance (100)

FYTD
2019
PLAN

Materials - Operation & Maintenance (50)
Materials - New Construction (51)
Materials - Renew & Replacement (52)
Warrant Principal (63)
Land (70)
Office Furniture & Equipment (71)
Tools & Work Equipment (72)
Transportation Equipment (73)
Communication Equipment (74)
Computer Equipment (75)
Metering Equipment (76)
Transformers (77)

1,108,353
43,630,006
1,892,606
2,160,833
69,396
82,409
123,382
1,519,887
(514)
242,276
472,556
3,017,905

898,499
48,032,193
1,298,980
1,865,000
140,494
1,335,162
888,348
782,017
3,242,671

5,144,000
39,035,573
3,826,000
1,865,000
200,000
135,000
2,863,907
63,000
1,766,585
1,261,000
2,300,000

Total Capital Expenditures (Debit)

54,319,096

58,483,364

58,460,065

2,621,794

(4,406,520)

Modified Cash Flow - (gain)/loss
Total Expenditures (Debit) less Purchased Commodity

128,499,046

138,247,670

(491,052)
140,507,499

VARIANCE

%

-82.53%
23.05%
-66.05%
0.00%
-100.00%
0.00%
4.07%
-53.38%
-100.00%
-49.71%
-37.98%
40.99%

23,299

0.04%

(3,915,468)

797.36%

(2,259,828)

-1.61%

Page 2 of 2

________________________________________________________________________________
Master Page # 69 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 MEMORANDUM
TO:

Electric Board

FROM:

Mike Counts PE, Vice President of Operations

DATE:

October 14, 2019

SUBJECT:

Electric Operational Monthly Report – September 2019

Electric Operations
Transmission crews worked on the Blue Origin project. Crews installed 4,000’ of 795 conductor & 2 new 46kV gang
operated switches. Also, all poles have been pulled on Martin Road. We continue to assist the fiber project in the Triana
hut area.
Contract crews continue to assist us with performing line construction/maintenance/work order type work while our crews
assist with fiber installation. These contract crews are performing well.
Underground crews continue to work on the following projects: Madison Sub feeder, manhole downtown, and the Blue
Origin project.
Substation crews completed maintenance items at Stringfield, Buckeye and Huntsville Primary Substations. Crews
switched out Gurley Substation for TVA and completed repairs at Walnut Substation. The new transformers for the new
431 Substation in Owens Cross Roads were moved and set in place and the new control building was delivered. The
mobile Sub was placed at Huntsville Primary in preparation for TVA’s planned outage. Crews began wiring & equipment
checks at the new Madison Substation.
The make ready contractor for fiber installation is working in the Jetport hut area. Operations personnel continue to
monitor the work performance & project status, verify invoicing, and track cumulative totals of units installed, removed, &
transferred during execution of the make ready contract.
Meter Shop personnel worked with the AMI team and the MIV to resolve issues & repair considerations. Assisted two
customers with a generator interconnect issues. Completed Kohler’s new service and submitted files to TVA.
Operations Engineers performed voltage reduction six times last month to support our load reduction effort. There was no
request from TVA to do voltage reduction in September. Peak was 1,087,287 kW on September 13th at 3:00 P.M. and the
temperature was 100 degrees. We estimated that the peak was reduced by approximately 36 MW and that equates to a
savings of $402,072.95 on our power bill to TVA.
We had 5,382 trouble calls, 171 breaker operations, and 21 breaker lockouts this month. Seven were caused by equipment
failures, 3 were caused by vehicle damage, 6 were caused by storms, 1 was caused by a tree, 2 were caused by animals, and
2 were caused by construction.
The tree trimming and R.O.W. 486 trimmed trees, removed 143 trees, made 5 SWDA dumps and 8 loads were given to property
owners.
The Street Light section completed 6 work orders, installed 33 new street lights, worked 410 requests for repairs, repaired 196
fixtures, replaced 634 photocells and 634 bulbs, repaired 16 bad cables, and there were 273 repairs made this month to interstate
lights.

________________________________________________________________________________
Master Page # 70 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Fiber Operations
HU Fiber crews continued testing, installed bulkheads, replaced MSTs, and repaired splicing as necessary. OLTS testing
was performed in Jetport A-Route and B-Route and Triana E-Route, F-Route, and J-Route. This included retesting after
repair of identified deficiencies.
Crews worked a total of 6 trouble tickets this month, all of which required overtime.

Fiber Project:
Bear maintained their overhead and underground crew counts and their production remained higher this month. Huntsville
Utilities Gas personnel continued drilling rock in Triana and Jetport this month. The underground crews installing conduit
in Jetport routes continued to make good production. Bear turned over Jetport A route this month, but continues failing to
turn over routes by scheduled dates provided to HU.
HU crews completed and turned over the installation of all the Triana J Route. Crews began testing and splicing in Jetport
A/B routes along with Triana E/F routes to assist Bear in turning over those routes. HU crews installed ~10,700’ of strand,
pulled ~27,500’ of fiber, and installed MSTs in Triana J-route. Crews also performed splicing for DF in Triana E and F
and testing in Jetport A and B this month.
The Fiber Department continues to support the fiber build with the coordination of all splicing and testing, inspector
supervision, as-built management and route design. TGBNS continues monitoring and inspecting plant as it is being built
by Bear. We provide corrective action reports for deficiencies found in the field and repairs must be completed before
invoicing is approved. Bear has continued to repair gigs for final acceptance in Farley, 911, Triana, and Jetport as they have
manpower available.
Fiber Department personnel completed the installation and testing of a fiber circuit into Hudson Alpha this month. They
also installed fiber to bring Centurylink into the Jetport Hut. Fiber Engineering personnel were in the field with Fiber
Operations and Bear crews this month. Along with volunteers from Gas Operations and Water Operations, Engineering
personnel performed quality assurance and repairs as necessary to help increase productivity of the splicing crews in an
attempt to meet the requirements for the October 27th deadline to Google.

Mike Counts
Mike Counts, PE
Vice President, Operations

________________________________________________________________________________
Master Page # 71 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 ELECTRIC OPERATIONS STATISTICS
SEPTEMBER 2019

NEW CONSTRUCTION

SEPTEMBER

AUGUST

0
250
250
10,106
16,647

0
0
0
8,880
11,354

Breaker Operations

171

103

TEMPERATURE DEVIATION FROM NORM (°)
COOLING DEGREE DAYS
HEATING DEGREE DAYS

6.9
199
-13

-0.2
0
0

PRECIPITATION DEVIATION FROM NORM (")

-3.45

-0.86

Transmission
Three-Phase Overhead 12kV
Single-Phase Overhead 12kV
Three-Phase Underground 12kV
Single-Phase Underground 12kV
ENGINEERING

________________________________________________________________________________
Master Page # 72 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 SEPTEMBER SYSTEM LOAD
PEAK 09/13 (1,087,287 kW) @3:00 P.M. @ 100°
1200000

0.8

0.7
1000000
0.6

800000
0.5

600000

0.4

0.3
400000
0.2
200000
0.1

0

0

Daily Peak

Average Load

Load Factor

________________________________________________________________________________
Master Page # 73 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 HUNTSVILLE UTILITIES SYSTEM PEAKS WITH 12 MONTH ROLLING AVERAGE
1400

1200

1000

MW

800

600

400

200

0
Sep-18

Oct-18

Nov-18

Dec-18

Jan-19

Feb-19

Monthly Peaks

Mar-19

Apr-19

May-19

Jun-19

Jul-19

Aug-19

Sep-19

12 Month Rolling Average

________________________________________________________________________________
Master Page # 74 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 HUNTSVILLE UTILITIES FOUR YEAR MONTHLY AVERAGE PEAK

1270

MW

1062

851

Oct

902

981

993

1056

1101

1093

June

July

Aug

1023

939
783

Nov

Dec

Jan

Feb

Mar

Apr

May

Sep

________________________________________________________________________________
Master Page # 75 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 HUNTSVILLE UTILITIES SYSTEM PEAKS
1400

1200

1091
1000

1,116

1,076

1,073

1,109

955

1,000

1,157
1,087

1,036

894
804

MW

800

600

400

200

0

Oct

Nov

Dec

Jan

Feb
FY19

Mar

Apr

May

June

July

Aug

4 Year Monthly Average Peak

________________________________________________________________________________
Master Page # 76 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

Sep

 Electric Trouble Calls
Monthly Averages by Fiscal Year
1400

1200
1172
1068

1000

995

994
891

873

844

800

796

768

735

729

600

511
400

200

0
Regular Time

Overtime
2016

10/14/2019

2017

2018

Weekend/Holiday Overtime
2019

________________________________________________________________________________
Master Page # 77 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Electric Department Monthly Trouble Calls
FISCAL YEAR 2019
Number of Calls Received by Time Received
Month/Year
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Monthly Avg.

RT
Total
660
680
833
549
739
815
689
805
928
94
840
1581
768

OT
M-F
760
633
747
766
1432
616
643
832
2044
748
1737
3111
1172

OT
Wkend
253
589
1084
505
521
1210
433
495
1117
1367
867
683
760

OT
Hol
0
105
56
24
57
0
67
31
0
30
0
59
36

OT
Total
1013
1327
1887
1295
2010
1826
1143
1358
3161
2145
2604
3853
1969

Month/Year
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Monthly Avg.

Number of Calls Received by Time Received
RT
OT
OT
OT
OT
Total
M-F Wkend
Hol
Total
626
636
958
0
1594
816
746
1033
130
1909
599
523
538
5
1066
979
580
629
890
2099
1317
424
295
0
719
416
769
652
26
1447
2423
2314
1873
0
4187
887
780
894
51
1725
2052
1551
344
0
1895
949
618
421
47
1086
969
1686
351
0
2037
788
1302
977
12
2291
1068
994
747
97
1838

% of Calls Received by Time Received
Total
1673
2007
2720
1844
2749
2641
1832
2163
4089
2239
3444
5434
2736

% OT
Calls
61%
66%
69%
70%
73%
69%
62%
63%
77%
96%
76%
71%
72%

% M-F % WkEnd
Calls
Calls
45%
15%
32%
29%
27%
40%
42%
27%
52%
19%
23%
46%
35%
24%
38%
23%
50%
27%
33%
61%
50%
25%
57%
13%
43%
28%

% Hol
Calls
0%
5%
2%
1%
2%
0%
4%
1%
0%
1%
0%
1%
1%

Tap Ups
OT
68
69
63
83
99
76
95
103
88
98
99
90

Total
94
90
78
57
70
98
73
123
59
132
129
124

FISCAL YEAR 2018
Total
2220
2725
1665
3078
2036
1863
6610
2612
3947
2035
3006
3079
2906

% of Calls Received by Time Received
% OT
% M-F % WkEnd
% Hol
Calls
Calls
Calls
Calls
72%
29%
43%
0%
70%
27%
38%
5%
64%
31%
32%
0%
68%
19%
20%
29%
35%
21%
14%
0%
78%
41%
35%
1%
63%
35%
28%
0%
66%
30%
34%
2%
48%
39%
9%
0%
53%
30%
21%
2%
68%
56%
12%
0%
74%
42%
32%
0%
63%
34%
26%
3%

Tap Ups
OT
45
24
56
48
32
59
85
83
54
114
108
90

Total
85
74
92
75
57
92
166
114
143
88
81
66

FISCAL YEAR 2017
Number of Calls Received by Time Received
Month/Year
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Monthly Avg.

RT
Total
619
1104
627
515
654
802
737
921
2052
1065
758
619
873

OT
M-F
396
1568
582
636
438
1219
456
1261
1551
894
1297
396
891

OT
Wkend
595
255
533
999
561
276
936
5540
334
712
239
595
965

OT
Hol
0
76
19
80
0
0
16
62
62
55
0
0
31

OT
Total
991
1899
1134
1715
999
1495
1408
6863
1947
1661
1536
991
1887

% of Calls Received by Time Received
Total
1610
3003
1761
2230
1653
2297
2145
7784
3999
2726
2294
1610
2759

% OT
Calls
62%
63%
64%
77%
60%
65%
66%
88%
49%
61%
67%
62%
65%

% M-F % WkEnd
Calls
Calls
25%
37%
52%
8%
33%
30%
29%
45%
26%
34%
53%
12%
21%
44%
16%
71%
39%
8%
33%
26%
57%
10%
25%
37%
34%
30%

% Hol
Calls
0%
3%
1%
4%
0%
0%
1%
1%
2%
2%
0%
0%
1%

Tap Ups
OT
46
39
45
45
32
40
39
75
54
63
57
46
48.4

Total
81
73
95
102
68
74
69
146
143
100
93
81
94

FISCAL YEAR 2016
Number of Calls Received by Time Received
Month/Year
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Monthly Avg.

RT
Total
525
931
673
1070
660
460
679
755
922
774
757
617
735

OT
M-F
446
648
374
284
361
510
441
1049
1721
686
1712
510
729

OT
Wkend
304
400
231
192
148
193
445
264
1297
971
900
348
474

OT
Hol
0
36
190
42
0
25
0
16
0
118
0
12
37

OT
Total
750
1084
795
518
509
728
886
1329
3018
1775
2612
870
1240

% of Calls Received by Time Received
Total
1275
2015
1468
1588
1169
1188
1565
2084
3940
2549
3369
1487
1975

% OT
Calls
59%
54%
54%
33%
44%
61%
57%
64%
77%
70%
78%
59%
59%

% M-F % WkEnd
Calls
Calls
35%
24%
32%
20%
25%
16%
18%
12%
31%
13%
43%
16%
28%
28%
50%
13%
44%
33%
27%
38%
51%
27%
34%
23%
35%
22%

% Hol
Calls
0%
2%
13%
3%
0%
2%
0%
1%
0%
5%
0%
1%
2%

Tap Ups
OT
55
64
24
44
45
35
36
40
44
41
56
41
43.8

Total
79
94
57
75
86
67
80
80
110
100
112
93
86

________________________________________________________________________________
Master Page # 78 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Engineering Monthly Report
September 2019

GENERAL SUMMARY:





A total of $ 1,114,307.42 in ATC payments was posted this month $714,796.42 for Electric, $332,111.00 for
Water, $67,400.00 for Gas)
There are 222 residential projects, 406 commercial projects, and 21 road projects in progress
6,061 locate tickets were completed (289/day).
134 new gas service line requests were received this month

PERSONNEL UPDATE:
Engineering Services:
OT Report Engineering Services:
 Engineering Services employees worked 253 overtime hours during the two pay periods ending in September
(pay periods ending 09/06/2019 and 09/20/2019). Overtime breakdown:
 8 hours assisting with Locates
 245 hours working on Engineering Projects
 0 hours of On-Call time
Engineering:
 Engineering Planning employees worked 15.5 overtime hours during the two pay periods ending in September
(pay periods ending 09/06/2019 and 09/20/2019). Overtime breakdown:
 15.5 hours associated with the Greenbrier area gas and water improvements (inspection).
 Engineering on boarded a new Electrical Engineer, Anyama Tettey, and a new co-op student, Anthony Rojas.
Mapping & Locates:
 Locates employees worked 99 overtime hours during the two pay periods ending in September (pay periods
ending 09/06/2019 and 09/20/2019). This is down from 462.5 hours last month (which was high due to
underground fiber construction in Jet Port). Overtime breakdown:
 99 hours working on Locate tickets and emergency requests
 Average 12.375 overtime hours per Locator (8 Locators)
 Average 3.09 overtime hours per locator per week
 23 hours of On-Call time
Meter Technology
 No personnel update this month.
CHAMBER OF COMMERCE PROJECTS:
 No new updates this month from the Chamber
PROJECT HIGHLIGHTS:
Huntsville Gas Cast Iron Replacement Project
 To date, Moore and Wallace has installed 28,236 feet of 2” PE pipe, 6,537 feet of 4” PE pipe and renewed
359 service lines. Work continues along Drake Avenue in some rocky areas.
Blue Origin (Blue Engines)
 HU is building a substation to support the proposed electrical load. TVA is requiring a primary meter as they
will read the meter due to the customer load being in excess of 5MW. (Projected peak of 17MW). Permanent
service should be in place by March 2020.
 The COH has requested a portion of this electric transmission be installed UG in the area of existing and
proposed residential houses. This section will temporarily be constructed OH due to the quick schedule and
costs involved. The COH has obtained an agreed OH route through the Blue Origin site from the developer.

________________________________________________________________________________
Master Page # 79 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 




HU crews have completed the installation of the distribution and transmission lines.
The temporary power design is complete and is currently being installed by HU Operations.
The COH has paid the Water ATC in the amount of $40,240 as of 9/16/19. This amount included the
installation of a 10” master meter and a 3” Irrigation meter on-site both installed by HU crews.
Both water meters have been installed by HU Operations; the irrigation meter testing is still underway.

Constellation Project Downtown
 HU met with the COH and the developer to discuss utilities.
 Utility designs are currently under review.
 The developer is working through electric meter room design requirements with the meter shop.
Crystal Creek Phase 1 @ Mountain Preserve (Enfinger Development near Wilson Cove/Cherry Tree)
 Mr. Miller is working with Sam Givhan/Wilmer & Lee, the COH attorney, on the title work for these
easements.
 HU is working with Jeff Enfinger, his engineer, and the COH to ensure they can assist in a path from the
Wilson Cove development to this proposed development for water and gas that will not involve any County
rights-of-way, whether prescriptive or not. The COH understands the HU position and is working with the
sewer extension required to assist with the necessary easements. HU has supplied the offsite alignment to
the COH for easement acquisition. The COH is reporting that this is going smoothly and nearing completion
at this time.
 Enfinger has obtained easements from the property owner for the future phases of Wilson Cove and
submitted those to HU for design and the COH for recording.
 The offsite water main extension work order and estimate has been completed and discussions are taking
place with Enfinger on this piece of the project.
 The onsite work order has also been designed and estimated.
 The electric design is in progress.
Mid-City (Old Madison Square Mall Site, TopGolf site, future Amphitheater site, Dave & Busters)
 MidCity Phase 2A water and electric drawings have been submitted to the COH to be included in their bid
packages.
 HU is working closely with the COH, multiple developers, engineers, and landscape architects on optimal
locations for utilities and fixtures in this very densely, continuously changing, downtown like development.
HU attended several meetings to discuss different portions of this development and the best way to help
meet their needs.
 The COH has requested a great deal of assistance from HU in an effort to help this project be successful and
HU is doing everything possible to assist.


There are numerous work orders required for the multiple buildings being constructed including: REI, Dave
& Busters, The Pavilion, Aloft Hotel, MidCity Apartments, Highpoint, Building 7 Retail, Pies & Pints, COH
roadway infrastructure projects, private alleyway infrastructure projects by the developer, parking garages,
parks, etc.

Limestone County Water Service Area Transition
 The transition was successfully made on July 2
 HU has been monitoring pressures in various areas since the transition with pressure recorders to ensure
there are no unknown issues and to calibrate this new area of the water model
 HU has been meeting with GE Aviation and a developer near Endeavor Way to discuss fire flow and pressure
needs that they are currently requesting. HU has provided information to these customers and feels that
these issues may now be resolved at this time, pending confirmation from the engineers for the Endeavor
Way building at the time of this update.
 The water sales agreements are currently being reviewed by LCWSA and HU and will likely be combined into
one agreement with a common rate. Legal is currently exploring this agreement.

________________________________________________________________________________
Master Page # 80 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Mazda-Toyota and Greenbrier Area Improvements










Description: Expand gas service in the Greenbrier area to serve the Mazda-Toyota Manufacturing US
(MTMUS) plant and associated vendors and commercial development. Additionally, provide water service
to MTMUS plant complex. Gas construction involves installation of a 12-inch welded steel gas main inside
the MTMUS site and along Greenbrier Parkway and Old Highway 20, as well as an extension of an 8” PE
main to tie in to the system and provide the initial heating load. Water construction involves installation of
a 12-inch ductile iron water main on the plant site. A 16-inch ductile iron water main is planned along
Greenbrier Parkway.
Phase 1 – On-site and Greenbrier Road
o On site steel main construction is complete; PE main will be extended along Greenbrier Road and
tied in to supply low pressure gas for the heating load by November 2019.
o Construction Contractor has installed and successfully pressured tested all 12” steel gas main.
Additionally, contractor has installed, pressure tested, disinfected and placed in service all 12”
ductile Iron water main.
o Contractor has installed 3,280 feet or 51% of 8 inch PE gas main.
o Received Limestone County Engineer approval for PE gas main installation on Greenbrier Road.
o Submitted signed agreement for gas main under Norfolk Southern existing and proposed tracks on
Greenbrier Road. Waiting on fully executed agreement.
Phase 2A (Greenbrier Parkway)
o Conducted 90% design review on Phase 2A on August 8, 2019. Provided comments on plans and
specifications. Received, reviewed and coordination with Norfolk Southern on agreement for
crossing Norfolk Southern track on Greenbrier Parkway.
o Design will be completed and begin bidding in October 2019.
Phase 2B (Old Highway 20)
o Received 90% plans and specifications. Received approval from Norfolk Southern for gas main
crossing railroad tracks on Old Highway 20. S&ME completed work on environment clearances
and submitted permit documents to USACE. Began coordination with COH and property owners
for required easements (2 permanent easements and one construction easement).
o Finalize drawings & specifications and begin bidding when agreements on easements and
assurances on wetland permit.
Phase 3: New Gate Station on Greenbrier Parkway
o Begin process of selection engineering firm to design the gate station.
o Coordinate with COH on property for gate station.
o Develop more detailed plans after gas demands are finalized

Vuteq Huntsville – MTMUS Offsite Supplier – Greenbrier Road & Greenbrier Parkway – Limestone County
 HU met with the general contractor and engineers for this approx. 330,000 sq. ft. proposed building


This will be a new water and gas customer served from Greenbrier Road. We are currently waiting on digital
CADD files and loads to prepare the needed ATC estimates and designs.



Water and gas service available at the site currently



Preliminary schedule is water & gas services needed by April 2020

Meter Technology/AMI Summary:
 There were 6,570 electric meters deployed in the month of September. They were installed in the areas
surrounding, Jeff Rd, Hwy 53, Slaughter Rd, University Dr, Henderson Rd, and Holmes Ave.
 There are presently 57,606 total meters being billed from AMI readings (242 water, 2 gas, 57,362
electric). Approximately 230 non-billing, gas modules remain deployed to further test gas readings. We
now have a total of 74 opt-out customers.
 Gas deployments have been delayed until mid-fiscal year 2020 due to budgetary concerns. Landis and
Gyr has notified us of a delay with their water solution. This will hinder water deployments.
Fiber Project Update:
Update on the Fiber Network Build Progress:
 Huntsville Utilities is contractually obligated to reach 95,000 households pass (HHP) by October 18, 2019.

________________________________________________________________________________
Master Page # 81 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 

As of the end of September, we have 89,569 HHP, and projected turnovers total to over 95,000 by the
October 18. Work is in progress in the area of downtown and around downtown as well as southwest
Huntsville and around the edge of the City of Madison.
 Huntsville Utilities will continue to build out within the City of Huntsville to reach 105,000 HHP sometime
in the spring of 2020;
 The most recent monthly invoice to Google was $471,860 (up from $456,071 last month); this will continue
to increase to approximately $590,000 per month.
 Overall at final build Google will be providing 55% ($7,080,000 annually) of the total annual revenue
counted toward the fiber project, with the City of Huntsville at 20% (2,496,000 annually offset to PILOT)
and contributions from our operating departments at 15% ($1,800,000 annually) from electric, 7%
($840,000 annually) from water, and 3% ($360,000 annually) from gas.
Other fiber related activities:
 Continue processing ALDOT permits as needed to support the fiber network build.
 Negotiating colocation lease and various dark fiber leases
SAFETY: No Required Safety meeting for this month.

ENGINEERING DEPARTMENT SUMMARY:
ELECTRIC CAPITAL BUDGET PROJECTS:
Blue Origin


Substation and distribution


Breaker and regulator manufacture drawings have been approved.



Poles have all been set for the 46 kV line. Wire pulling has begun.



Site plan has been received and should be out for bid first week of October.

Old 431 New Distribution Substation (Category 51-5)


Substation


New Hope Telephone has marked their cable. We will move it. We’ll work on a new R/W agreement with
New Hope Telephone. Construction began July 8.



BESCO has begun construction. Transformers and control building have been set. Steel is going up.



Projected completion date: November 2019



Transformer – purchased. Stored at Big Cove Substation.



Distribution lines – FY19 (Category 51-6)


Phase 1 plans are complete. Waiting on conductor design information.

Madison New Distribution Substation (Category 51-12)


Substation


Substation is essentially complete. Inspection and commissioning will begin once the
feeder and exit circuits are complete.



Transformer – on the pad and ready for service.



Distribution lines – FY19. Underground exit circuits – 90% complete.



Transmission line re-design complete.

________________________________________________________________________________
Master Page # 82 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Redstone Gateway (Category 51-82)




Substation


Drilled pier foundations for the 12 kV have been completed. 12 kV breaker foundations done. Ground grid
work is underway.



Fence work has not started.



Projected completion date: fall 2019.

Distribution lines – FY19


Design is underway.

Vestavia – add transformer (Category 51-10)
 This project will not proceed as load growth has not occurred. These funds will go towards
the new Capshaw Road Distribution Substation.
Capshaw New Distribution Substation


Substation


Geotechnical report has been received. Site plan is due soon.



Projected completion date: late spring 2020.



Transformer – purchased. Stored at Chase.



Distribution lines


Working with City on additional easement for distribution circuit to feed Clift Farms.

Town Madison New Distribution Substation (Category 51-13,14)
 Substation


Steel is up.



Projected completion date: December 2019



Transformer – purchased. Stored at Jetport Substation.



Distribution lines – (Category 51-15)


Design is underway.

Vintage Substation (Category 52-10)
 This project will not proceed. These funds will go towards adding a second transformer
at Hampton Cove.
Hampton Cove Substation (Category 52-10)
 Completed and in service.
Wah Chang Substation Transformer (Category 52-15)
 Transformer delivered.
Raw Water Substation Transformer (FY2018, Category 52-14)
 Completed and in service.
Southeast Water Treatment Plant Substation (approved on S1W-GWTP)
 Completed and in service.
County Line 46kv line
 This project has been deferred due to right-of-way issues.

________________________________________________________________________________
Master Page # 83 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 ROAD PROJECTS
Martin Road (Wall Triana to Old Jim Williams) (Category 52-8)
 Received set of plans. Under review to start layout and design.
Church St. Phase 1 (Category 52-9)
 Relocations are complete. Waiting on other attachers to relocate. Poles will be removed once the other
attachers relocate.
Zierdt Rd (Category 52-10)
 Relocations are complete. Waiting on other attachers to relocate. Poles will be removed once the other
attachers relocate.
Martin Rd Zierdt to Old Jim Williams (Category 52-8, carryover)
 All poles have been pulled. Need to relocate one pole that was set to close to the road.
Mastin Lake & Parkway Relocation
I (Category 52-13)
 Meeting with Electric and Fiber Operations resulted in an alternate solution to some of the issues in getting
46 kV and 12 kV lines moved. Engineering is reviewing this new option. Will be completing design work in
next couple of weeks. We have several corners to turn where there is little if any space for standard guy
and anchor designs. Working on easements.
 Loading drawings into Bentley & SAP has started.
 Last update is 3rd calendar quarter for a utilities contract letting, with road contract not until 2022.
 Coordinating with owner of the old Gander Mountain Building about getting an easement. If they agree,
then we will need an additional easement within the parcel east of the Old Gander Mountain parcel.
Northern Bypass (Category 52-14)
 Proposed relocation layouts are completed.
 Requesting an updated schedule from ALDOT on their bid opening dates.
 Last update on scheduling that it has changed with no definitive schedule yet.
 COH is going to 100% fund project, with no ALDOT support. This changes a good many items including
schedules, who is paying for outside engineering support, and what will be reimbursed.
OTHER ACTIVITIES
Specifications/Materials:
 Met with Cree on their LED offerings.
 Met with Landis & Gyr on their Distribution Automation offerings.
Distribution:




Winchester Rd. Phase 2- no activity.
Dan Tibbs Road – Work was completed by VOLT this week.
Westclox Distribution – Continued working on work order to reconfigure feeders.

Transmission:



46 kV model in ETAP is complete. Need to finish transformer data.
Oakwood University relocation. Waiting on the school. Coming up with a plan to temporarily feed
existing services so old line can be taken down.

Substations:



Pole and switch installed at Engelhard Substation. Waiting for a planned outage to finish the work in the
station. No change.
Need to do wiring for transformer and switcher status points at Thornton. No progress due to crew
priorities.

________________________________________________________________________________
Master Page # 84 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 


Raw Water Substation - new fence to be done in FY 20 in conjunction with the Raw Water Pumps Station
rehabilitation.
Wiring plan is being done for 161 breaker replacement at Huntsville Primary substation.

Distributed Generation:


No activity this month.

Fiber:


Worked on permits.

Mapping:


No activity this month.

RFI, EMF, PCB and Environmental:


Retrieved EMF data in the field and spoke with the customer at 3000 Basswood.

Power Quality:



Retrieved EMF data in the field and spoke with the customer at 105 Soybean.
Retrieved EMF data in the field at 123 Ware.

Miscellaneous:



Attended the Bright Lights and Dark Sky Committee meeting.
Attended the OMS Group Meeting.

GAS ENGINEERING
GAS CAPITAL BUDGET PROJECTS:
Green Mountain Extension: (Category 51-3) $165,000


Description: Install approximately 2,500 lf of 6” PE gas main from Bailey Cove Road to Greentree Trail in a
joint trench with water.



Status: Not started.



Plans: Proceed with Green Mountain water main and booster pump station.



Schedule: Coincide with water main installation. Water project focused on property acquisition.

Providence Main & Biltmore Relocation (Engineering): (Category 52-2) $150,000


Description: Relocate an existing high-pressure 18" welded steel main currently adjacent to heavily
developed area including homes, apartments, and businesses in multi-story buildings.



Status: Constantine provided final Technical Memorandum (Design Report) on April 18, 2019



Plans:



Schedule: Scheduled as FY22 project in working FY20 capital budget.

Zierdt Road Relocates (Madison Blvd to Martin Road) (Carryover): (FY2018, 52-2)




Description: Reimbursable ALDOT project to identify and resolve conflicts between existing gas mains and
drainage structures required for the widening of Zierdt Road. Reimbursement agreement with City of
Huntsville in amount of $118K.
Status:

________________________________________________________________________________
Master Page # 85 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 



Drainage conflict with 18” gas main at the intersection of Zierdt Road and Madison Blvd. has been
resolved through redesign of drainage and rock shield installation.



Currently identified 3 conflicts with 8” PE mains along Zierdt Road.



HU Gas crew relocation of approximately 600 lf of 4” PE gas main in the NE corner of the
intersection of Shelton Road and Madison Blvd has been completed with the old main abandoned.

Plans:




Remaining conflicts handled during construction by Gas Department crews.

Schedule: Conflict resolution will be in conjunction with the road project.

Memorial Parkway Relocates (Mastin Lake Overpass): (Category 52-3)




Description: Reimbursable road project to relocate existing gas mains to clear way for the construction of
an interchange at Mastin Lake and Memorial Parkway by ALDOT. Relocation will be performed by HU
contractor. Reimbursed by ALDOT at 100%, no betterment planned. Budget amount is $350K. Updated
Cost Estimate is $1.9M.
Status:


Received ALDOT approval for design. Conducted design kick-off meeting on July 22, 2019.
ALDOT is planning a clearing and grubbing project ahead of the roadway project. Utilities will be
relocated immediately after the clearing and grubbing.



Had 60% design review with Barge and Welti Engineers. No changes to the gas plans were made.



Plans: Have Final Design meeting in October.



Schedule: Externally Scheduled: Gas relocation dependent on ALDOT ROW acquisition. Clearing and
grubbing project is scheduled to begin January/February 2020. Utility Authorization currently planned
January 2020.

Northern Bypass Relocates (Pulaski Pike to Memorial Parkway): (Category 52-4)




Description: Reimbursable road project to relocate approximately 15,000 lf of 14” welded steel to clear
way for the construction of the Northern Bypass by ALDOT. Relocation will be performed by HU contractor.
Reimbursed by ALDOT at 100%, no betterment planned. Budget amount is $1,950K. Updated Cost Estimate
is $3.15M.
Status: Submitted Utility Consultant Agreement to ALDOT for concurrence. This project has been changed
to a 100% City of Huntsville funded project. Discussions are ongoing between the City of Huntsville and
ALDOT regarding utility reimbursement. Began researching potential areas that the gas main may have
been installed in an easement. Any areas that the gas main was installed in an easement that require
relocation should be reimbursable by the entity requesting relocation.



Plans: Continue to monitor the discussions between the City of Huntsville and ALDOT regarding utility
reimbursement



Schedule: Externally Scheduled: Gas relocation dependent on ALDOT ROW acquisition.

Martin Road Relocates (Old Jim Williams to Laracy): (Category 52-5)


Description: City of Huntsville reimbursable road project to relocate approximately 6,000 lf of 8” PE to clear
way for the widening of Martin Road by the City of Huntsville. Budget amount is $300K.



Status: Waiting for project authorization. COH has project scheduled for Summer 2019, ALDOT has project
scheduled for FY 2023.



Plans: Continued coordination with ALDOT and City of Huntsville.



Schedule: Externally Scheduled: Coordinating with ALDOT and City of Huntsville on project authorization.

________________________________________________________________________________
Master Page # 86 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Misc Relocations: Wayne Road Relocation: (Category 52-6)


Description: County road and intersection improvements frequently are not planned far enough in advance
for proper budgeting.



Status: Wayne Road: Identified locations on potential conflicts and developed approach on resolution.
Madison County open bids for road project on March 1, 2019. Madison County coordinating funding with
COH.



Plans: Wayne Road: Relocations, if required, performed during road widening project.



Schedule:
schedule.

Wayne Road: Externally Scheduled: Dependent on Madison County bid and construction

Misc Relocations: Cecil Ashburn Relocation: (Category 52-6)


Description: Relocate 4” Welded Steel and 6” PE Gas main related to Cecil Ashburn Road project.



Status: Conflicts found near intersection with Donegal and at the intersection with Old Big Cove Road. HU
crews have adjusted valves near the intersection of Avalon and Cecil Ashburn. HU crews installed a
temporary bypass at the intersection of Old Big Cove and Cecil Ashburn to allow installation of signal pole
and water main. HU crews have relocated approximately 700 ft. of 6” and 300 ft. of 4” gas main along Old
Big Cove Road to clear conflict on the east side of Old Big Cove near the intersection with Cecil Ashburn.



Plans: Address conflicts during construction with Gas Department crews.



Schedule: Externally Scheduled.

OTHER GAS ENGINEERING PROJECTS:
Madison Secondary Station Rebuild: (FY2018, 52-1) - $33,200


Description: Update the existing station that was originally constructed in the 1950’s and will remove and
replace redundant and obsolete equipment and move piping underground.



Status: CDG has completed final design, specifications and bid documents.



Plans:



Schedule: Scheduled as FY24 project in working FY20 capital budget.

McMullen Cove Regulator and Piping: (FY2018, 51-6) - $200,000


Description: Install regulator station and piping for a second feed to the McMullen Cove subdivision.



Status: Design completed. Easement has been recorded



Plans:



Schedule: Scheduled as FY22 project in working FY20 capital budget.

Jeff Rd (Capshaw to Kelly Springs):
 Description: Madison County ALDOT project to widen Jeff Road from 3,000 feet south of Capshaw Road to
north of the Kelly Springs Road for a distance of approximately 4 miles. Relocation could impact existing
18-inch-high pressure main along Jeff Road. Cost is reimbursable.
 Status:
o Road widening project is at 30% design stage.
o Per the surveyed gas main from Garver, approximately 7,000 linear feet of gas main will be in
conflict with road project. There are 4 regulator stations and several test stations that would also
need to be moved.
o Generated cost estimate for Garver and Madison County.
o Anticipated that roadway project is scheduled to begin in FY 2022
 Plans:
o Coordinate any relocations with Garver and Madison County as necessary.

________________________________________________________________________________
Master Page # 87 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 WATER ENGINEERING
WATER CAPITAL BUDGET PROJECTS:
Cecil Ashburn Transmission Main and Booster Pump Station (Carryover): (FY2018, 51-4)
Description: Construct 15,500 lf of 12” main and booster pump station in conjunction with City's project to widen
Cecil Ashburn.






Status:


Water Main: Water main installation has begun. 14,403 feet and valves for new booster station
have been installed.



Booster Station:


Construction began on July 8, 2019. To date, the site has been cleared and the building
pad has been cut to subgrade elevation. The access road from Joey Road has been graded
in and stone placed on it.



Contractor has installed header pipes and is pressure testing them prior to starting
building construction.



Contractor has poured equipment pads and foundation footers for the building.

Plans:


Continue coordination on water main installation.



Contractor to pour building slab and start with masonry work on the building.

Schedule:


Water Main: Externally Scheduled. Dependent on City of Huntsville contractor water main
installation plans.



Booster Station: Complete Booster Station by January 3, 2020.

Bailey Cove Phase I (Ditto Marina to Hobbs) (Carryover): (FY2018, 51-5)


Description: Construct 7,500 lf of 24” main along Bailey Cove Road from Ditto Marina Parkway to Hobbs
Road.



Status:


Held Bid Opening on June 6, 2019. Issued Intent to Award to Garney Construction. Received legal
approval of insurance documents and bonds.



Conducted preconstruction meeting on 9/24/19.



Constantine has already begun reviewing contractor’s material submittals.



Plans: Issue Notice to Proceed.



Schedule: Contractor plans to start work on 10/14/19.

Cherry Tree Booster (Carryover): (FY2018, 51-6)


Description: Construct a 400 gpm booster station near the existing Berkley Community Center for County
water.



Status: On-hold. Southeast plant able to maintain sufficient pressure during summer 2018 demand.
Southeast plant has continued to maintain sufficient pressure during summer 2019 demand. There is no
requirement for booster station at this time.



Plans: None



Schedule: Project shelved.

________________________________________________________________________________
Master Page # 88 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 South Parkway Plant – Engineering: (Category 51-3)


Description: Prepare construction plans, specifications, bid documents to upgrade aging raw water station,
clarifiers, clear well, and appurtenances that were originally constructed in the 1960's and 1970's.



Status:





Engineer, Constantine, submitted final Preliminary Design Report (PDR) for South Parkway Plant
on March 22, 2019.



Conducted 30% design review meeting on raw water pump station on May 28, 2019.



Constantine provided revised site layout for raw water pump station. Site layout reviewed and
determined additional space was preferred. HU continued coordinating additional property for
raw water station.



Constantine provide final Technical Memorandum on water treatment plant SCADA on September
23, 2019.

Plans:




Currently, considering two rehabilitation packages: 1) raw water pump station and 2) treatment
plant. Treatment plant rehabilitation is budgeted in several phases across multiple fiscal years.

Schedule:


Complete raw water pump station design in 1st quarter FY20 and begin bidding in January 2020.



Finalize scope and begin design of treatment plant in 1st quarter FY20 based on project funding.

Liberty Hills Booster Pump Station (Carryover): (BWO151-2018JanLH)


Description: New pump station in the North Huntsville Industrial Park to increase pressure and flow to the
Facebook development.



Status:







Pump Station: Punch station is operating and maintaining pressure since mid-September.
Facebook has not reported any problems. Punch list inspection completed on August 13, 2019.
Contractor has completed punch list items.



Pump and Controls: Continued coordination with Eshelman, Patterson, and Schneider on pump
controls. Pump controls are not working as expected to maintain set point pressure during
increases and decreases in demand. Additionally, check valves are not opening and closing
properly which is related to pump control scheme. Pump manufacturer recommended replacing
hydraulic check valves with mechanical check valves.



Temporary pump station is not operating but in standby mode if required.

Plans:


Pump Station: Schedule final acceptance inspection, execute change order to finalize contract
amount and begin contract closeout.



Pumps and Controls: Acquire flow meter and mechanical check valves.

Schedule:


Pump Station: Anticipated substantial completion of punch list items during September versus
Notice to Proceed substantial completion by April 19, 2019.



Pump and Controls: Hopeful resolution of control problems can be completed during September.

Liberty Hills Piping: (Carryover): (BWO151-2018JanLH)



Description: Installation of 5,400 feet of 12 inch and 16-inch water main in the North Huntsville Industrial
Park to increase pressure and flow to the Facebook development.
Status: All piping work complete



Plans: None,



Schedule: Complete

________________________________________________________________________________
Master Page # 89 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Limestone County Improvements: (Category 51-6)


Description: Water main improvements in the Limestone County Water service area being acquired by
Huntsville Utilities.



Status: Conducted initial hydraulic modeling analysis for area being acquired. Identification of individual
projects has not started. Received proposal to add acquisition are to hydraulic model.



Plans: Obtain operating experience prior to identifying projects. Begin Incorporating area into hydraulic
model



Schedule: Hydraulic modeling completed 120 days after transfer finalized.

Green Mountain Improvements: (Category 51-7)


Description: Engineering and construction of new main, booster stations and tanks to serve the Green Tree
Road area that is currently served by a double regulated area. Property acquisition required for tank and
pump sites.



Status: HU staff has reviewed properties identified by Constantine for required booster pump stations and
tanks. Completed property acquisition adjacent to existing Green Mountain Pump Station #2. Additional,
met with two property owners about a future booster station site at the end of Green Tree Trail. Currently
determining property requirements at location.



Plans: Continued coordinate with Constantine prior to continuation with property acquisition.



Schedule: Begin design after property acquisition.

Bailey Cove Phase II (Hobbs to Mountain Gap) – Engineering: (Category 51-8)


Description: Engineering for 7,000 lf of new 24” and 16” main along Bailey Cove Road from Hobbs Road to
Green Mountain Road.




Status: Conducted 60% review meeting on August 23, 2019. Constantine is beginning vertical locates on
existing gas and water mains, as well as some storm drain crossings.
Plans: Constantine prepare 90% drawing after vertical locates completed.



Schedule: Not established.

Repaving Associated with Tessie Tank: (Category 52-2)


Description: Repaving will be performed after completion of drainage project.



Status: Drainage project: Contractor has completed work as designed. HU crews improving drainage from
settling basin. City of Huntsville plans to repave all streets within Big Cove Estates, HU will cost share in the
repaving. City has awarded paving contract and paving is expected to begin in September.



Plans: Drainage project: Final acceptance and contract close-out.



Schedule: Paving started and is expected to be completed in early October.

CI/PVC/AC & Road Relocations (Wayne Road): (Category 52-3)
 Description: City and County road and intersection improvements frequently are not planned far enough
in advance for proper budgeting. Wayne Road and a blanket contract for CI main replacement are the
current projects.


Status:


Wayne: Released drawings to HU Water Crews to conflict avoidance in three locations. Madison
County open bids for Road Widening on March 1, 2019. Madison County coordinating funding
with COH. Notified County that main cannot be taken out of service due to high flows during
summer and that project will need to wait until the October time frame.



Cast Iron (CI) Replacement: Bolt Construction insurance documents have been submitted,
reviewed, and approved.

________________________________________________________________________________
Master Page # 90 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 



Plans:


Wayne: Continued coordination of relocation with Water and Madison County.



CI Replacement: Schedule pre-construction meeting for replacement of existing 4” CI pipe in the
Poinciana St area.

Schedule:


Wayne: Scheduled based on Water Department availability and Madison County Staking drainage.



CI Replacement: Issue notice to proceed once insurance submittals have been approved.

Martin Road Relocates (Old Jim Williams to Zierdt) (Carryover): (FY2018, 52-4)




Description: Reimbursable road project to relocate approximately 7,000 lf of existing 18” main to clear way
for the widening of Martin Rd. by City of Huntsville. Water main installation included in ALDOT roadway
project and paid directly by ALDOT.
Status:




Contractor has installed 7,870 feet (97%) of main and completed all bores. Contractor has
pressure tested 7,235 feet (89 %) of water main that has passed.
 Contractor has connected the existing main into the section of new main already installed.
Contractor has transferred all the customers to the new main from Zierdt Road to the connection
of the old main and the new main.
Plans: Continued construction observation.



Schedule: Based on road construction.

Zierdt Road Relocates (Martin to Madison Blvd) (Carryover): (FY2018, 52-5)


Description: Reimbursable road project to adjust 6" and 8" laterals and service line reconnection to clear
way for the widening of Zierdt Road by the City of Huntsville. Reimbursed by City of Huntsville. Agreement
amount is $199K.



Status: Point of sale meter has been installed. Waiting for City of Madison to install backflow device.



Plans: Connect to Madison’s backflow preventer to clear way for new pavement.



Schedule: Externally Scheduled: Resolve any conflicts in coordination with road widening project.

Northern Bypass Relocates (Pulaski Pike to Memorial Parkway): (Category 52-4)


Description: ALDOT reimbursable road project to relocate existing water main from East of Pulaski Pike to
US 231/431. Reimbursed by ALDOT. Budget amount is $2,250K. Updated Cost Estimate is $735K since
hydraulic modeling indicated that the proposed 24” main along the project was not hydraulically
advantageous.



Status: Submitted Utility Consultant Agreement to ALDOT for concurrence. This project has been changed
to a 100% City of Huntsville funded project. Discussions are ongoing between the City of Huntsville and
ALDOT regarding utility reimbursement.



Plans: Continue to monitor the discussions between the City of Huntsville and ALDOT regarding utility
reimbursement.



Schedule: Externally Scheduled: Water relocation will be included in road widening project.

Memorial Parkway (Mastin Lake to Winchester):


Description: ALDOT reimbursable road project to relocate existing water main from along Memorial
Parkway from south of Mastin Lake to Winchester Road to accommodate new bridge at Mastin Lake.
Project was not included in the FY 19 budget, but was included in the FY 20 CIP Budget. Reimbursed by
ALDOT. Updated Cost Estimate is $2.2M.

________________________________________________________________________________
Master Page # 91 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 

Status: Received ALDOT approval for design. Conducted design kick-off meeting on July 22, 2019. ALDOT
is planning a clearing and grubbing project ahead of the roadway project. Utilities will relocate immediately
after the clearing and grubbing. Conducted 60% design review meeting September 23, 2019.



Plans: Have Final Design meeting in October.



Schedule: Externally Scheduled: Gas relocation dependent on ALDOT ROW acquisition. Clearing and
grubbing project is scheduled to begin January/February 2020. Utility Authorization currently planned
January 2020.

WATER OTHER PROJECTS:
Martin Road Relocates (Old Jim Williams to Laracy):


Description: Reimbursable road project to relocate existing water main to clear way for the widening of
Martin Road by the City of Huntsville.



Status:
o

Received proposal from Garver for engineering design and construction administration.

o

Per Wade Shadden, this project is not scheduled for letting until 2026.



Plans: Coordinate with ALDOT and City of Huntsville on project authorization.



Schedule: Externally Scheduled

Old 431 (Cherry Tree Road to Eastern By-pass):





Description: Madison County planning project to replace existing bridges and widen Old 431 from Cherry
Tree Road to Eastern Blvd.
Status: Only conflict will be if there are valve box adjustments near the intersection of Old Cherry Tree and
Old Hwy 431.
Plans: Coordinate with Madison County if there are any conflicts with the valve boxes.
Schedule: Externally Scheduled

GREENBRIER AREA GAS AND WATER EXPANSION




Description: Expand gas service in the Greenbrier area to serve the Mazda-Toyota Manufacturing US
(MTMUS) plant and associated vendors and commercial development. Additionally, provide water service
to MTMUS plant complex.
o Install 12-inch welded steel gas main inside the MT site and along Greenbrier Parkway and Old Highway
20.
o 12-inch ductile iron water main will be installed on the plant site. 16-inch ductile iron water main is
planned along Greenbrier Parkway.
Status:
o Phase 1 – On-site and Greenbrier Road.
 Construction Contractor has installed and successfully pressured tested all 12” steel gas main.
Additionally, contractor has installed, pressure tested, disinfected and placed in service all 12”
ductile Iron water main.
 Contractor has installed 3,280 feet or 51% of 8 inch PE gas main.
 Received Limestone County Engineer approval for PE gas main installation on Greenbrier Road.
 Submitted signed agreement for gas main under Norfolk Southern existing and proposed tracks on
Greenbrier Road. Waiting on fully executed agreement.
o Phase 2A (Greenbrier Parkway) and Phase 2B (Old Highway 20)
 Phase 2A: Conducted 90% design review on Phase 2A on August 8, 2019. Provided comments on
plans and specifications. Received, reviewed and coordination with Norfolk Southern on
agreement for crossing Norfolk Southern track on Greenbrier Parkway.
 Phase 2B: Received 90% plans and specifications. Received approval from Norfolk Southern for
gas main crossing railroad tracks on Old Highway 20. S&ME completed work on environment

________________________________________________________________________________
Master Page # 92 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 clearances and submitted permit documents to USACE. Began coordination with COH and
property owners for required easements.




Plans:
o Phase 1: MTMUS Site and Greenbrier Road

Rast Construction complete installation of PE gas main along Old Highway 20 (1,000 feet) and
Greenbrier Road (5,400 feet).

Receive fully executed agreements from Norfolk Southern.

Order casing material for gas main bore under railroad

Complete bore under railroad upon receipt of materials and executed agreements.
o Phases 2A (Greenbrier Parkway) and 2B (Old Highway 20):

Phase 2A: Begin bidding project in October

Phase 2B: Continue acquisition of 2 permanent and 1 temporary construction easements.

Coordinate with US Army Corps of Engineers on wetland permit.

Conduct formal design review.
o Phase 3: New Gate Station on Greenbrier Parkway

Begin process of selection engineering firm to design the gate station.

Coordinate with COH on property for gate station.
Schedule:
o Phase 1:
 Complete PE main on Greenbrier Road which will supply low pressure gas for minimal heating by
November 2019.
o Phase 2:
 Phase 2A: Complete design and begin bidding in October 2019.
 Phase 2B: Finalize drawings & specifications and begin bidding when agreements on easements
and assurances on wetland permit.
o Phase 3: Develop more detailed plans after gas demands are finalized.

RELOCATE WATER MAINS FOR RAILROAD EXPANSION FOR MAZDA-TOYOTA






Description: Norfolk Southern Railroad adding additional tracks to support the Mazda- Toyota Facility. The
additional tracks will impact water mains installed in ROW on Old Highway 20, Greenbrier Road, and
Greenbrier Parkway. Existing water mains will require re-installation in order to accommodate additional
tracks.
o

Norfolk Southern has bid work, selected contractor and plans to start construction in August 2019.

o

COH began ROW vacation process for Greenbrier Parkway.

o

No reimbursement for water main relocation.

Status:
o

Overall: Continued coordination with Norfolk Southern and AECOM.

o

Greenbrier Parkway:


HU Water crew completed water main installation in casing installed by McCord Construction.



Water main failed pressure test.



HU Water crew identified; excavated and exposed casing; repaired water main; repaired casing;
successfully pressure tested; disinfected; sampled; and began backfilling excavation. New water
main has been placed in-service.

o

Greenbrier Road: Submitted and received approval from Norfolk Southern for relocation of water
main under existing and proposed tracks. Submitted signed agreement to AECOM along with fee and
insurance documents.

o

Old Highway 20: Received proposal from S&ME for installation of 16” water main in 24” casing under
Norfolk Southern railroad tracks.

Plans:
o

Greenbrier Parkway: HU Water Crew complete backfilling of hole excavated for main repair.

________________________________________________________________________________
Master Page # 93 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 o


Greenbrier Road: Execute change order with Rast Construction for installation of casing and water
main under railroad tracks

Schedule: Met Norfolk Southern August 8, 2019 schedule requirement for Greenbrier Parkway. Norfolk
Southern has not established required completion date for Greenbrier Road.

MAPPING DEPARTMENT SUMMARY
We continue to meet internally and with vendors to explore the functional needs, practical wants associated with
our GIS Platform migration and the vendor’s capability to accomplish these. We continued to conduct research in
other utilities use of GIS and OMS systems. We hosted presentations of qualifications from three engineering firms
for potential assistance in selection of an OMS solution. Hexagon hosted a hands-on-workshop for our GWE
Engineering and Operations groups. We have re-scheduled our Dispatch/Operations and Fiber groups for later this
month. We have scheduled 16 individuals from all affected groups to attend ESRI Utility conference at the end of
this month.

GIS: During this period 20 commercial plats and 18 subdivision plats were fitted and posted to our base, 9 final plats
and 9 preliminary. Numerous maps and/or data were updated from these sources. Greenfield data continues to be
captured and shared with all fiber concerns on various platforms. Accepted full delivery of orthophotography for the
2019 flight area and continue base map conversion. Began 2019-2020 LiDAR Grant process with USGA, FEMS TVA
and NOAA. Actual LiDAR acquisition is scheduled for the first leaf off window we get this winter. We continue our
search for a new GIS and OMS platform.

Locates: We received 6,061 locate requests this month, 3,137 were received by HU and 2,879 were received by
USIC. 339 requests were cleared by the Locations Clerk, 3,293 requests required location of electric facilities, 3,611
requests required location of gas facilities, and 3,113 requests required location of water facilities and 2.456 requests
required fiber facilities to be located. With assistance and overview by our clerk, the Koterra application and the
USIC locates continue to run smoothly. USIC is performing the locates associated with the LCWSA purchase.

Facility Mapping: We have maintained, mapped and/or located all the necessary base, plat and address data for
the LCWSA acquisition. Between new plats, our maps and SAP corrections we added or corrected 207 addresses.
We continue to work to discover and resolve all duplicate and orphaned SAP address records. We continue to
support Foresite, Google, TBG on a daily basis to research and validate potential fiber addresses for our fiber build.
We continue to provide ALDOT permitting support for our fiber build. Switch map maintenance is supported as
needed.

Stacy Cantrell, Vice President of Engineering
SC: em

________________________________________________________________________________
Master Page # 94 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Residential Lots Developed
Cummulative FY Totals by Month
3,500

Fiscal Year Cummulative Totals

3,000

2,500

2,000

1,500

1,000

500

0

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sept.

FY15

175

274

298

416

424

499

505

563

758

913

955

1,095

FY16

124

148

165

314

351

501

625

828

945

983

1,064

1,342

FY17

211

235

252

401

438

588

712

915

1,032

1,070

1,151

1,429

FY18

176

205

322

754

846

1,003

1,227

1,309

1,384

1,731

2,111

2,180

FY19

133

303

383

439

754

948

1,160

1,425

1,919

2,317

2,794

3,066

FY19 Projection

________________________________________________________________________________
Master Page # 95 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

3,066

 Gas Service Line Requests
Cummulative FY Totals by Month

Cummulative Service Line Requests

2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sept.

FY15

102

173

249

328

408

476

579

646

759

838

925

1,031

FY16

83

171

256

317

430

545

612

756

860

967

1,072

1,165

FY17

91

173

229

323

381

512

622

758

841

932

1,061

1,134

FY18

104

213

304

410

532

641

779

967

1,093

1,195

1,334

1,430

FY19

146

275

386

546

700

834

1,002

1,184

1,315

1,471

1,636

1,770

FY19
Projection

1,770

New & Existing Residential Gas Service Lines
By Month By Year
2015-2019
200
180
160
140
120
100
80
60
40
20
0
Jan

Mar May

Jul
2015

Sep

Nov

Jan

Mar May

Jul

Sep

Nov

Jan

Mar May

2016

Jul

Sep

Nov

2017

New House

Jan

Mar May

July
2018

Sep

Nov

Jan

Mar May

July

Sep

Nov

2019

Existing House

________________________________________________________________________________
Master Page # 96 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 ATC Posted ($)

FYTD Cummulative Electric ATC Posted by Month
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sept

FY16

$251,699

$477,392

$690,702

$959,508

$1,155,289

$1,683,396

$1,962,131

$2,457,644

$2,786,571

$2,992,809

$3,469,070

$4,171,277

FY17

$388,875

$708,728

$785,129

$1,296,588

$1,591,256

$2,246,584

$2,664,606

$3,112,852

$3,649,343

$3,954,273

$4,452,755

$5,040,792

FY18

$417,542

$648,925

$927,648

$1,617,731

$2,320,405

$3,028,968

$3,808,748

$4,483,865

$4,837,241

$5,723,613

$6,919,661

$7,258,470

FY19

$414,795

$1,128,882

$2,124,358

$2,290,983

$3,019,659

$3,519,734

$4,136,352

$4,924,070

$6,051,494

$6,883,121

$8,352,256

FY19 Projection

$9,067,052
$9,067,052

FYTD Cummulative Water ATC Posted by Month
$6,000,000

ATC Posted ($)

$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
FY16

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sept

$1,026,362 $1,310,350 $1,651,302 $1,809,332 $2,591,711 $2,907,581 $3,002,371 $3,125,665 $3,499,718 $4,080,190 $4,513,067 $4,876,405

FY17

$241,822

$605,177

$752,921

$788,851

FY18

$274,059

$344,819

$671,649

$825,651

FY19

$132,954

$415,156

$558,161

$886,297

$1,433,394 $1,480,044 $1,664,882 $2,537,793 $2,825,256 $2,877,836 $3,282,756

$1,054,217 $1,522,975 $1,914,988 $2,243,830 $2,489,150 $3,034,175 $3,588,674 $4,307,005

$1,537,479 $2,003,260 $2,186,912 $2,783,551 $3,464,801 $3,531,841 $3,768,868 $4,408,892 $4,741,003

FY19 Projection

$4,741,003

ATC Posted ($)

FYTD Cummulative Gas ATC Posted by Month
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sept

FY16

$74,002

$109,432

$147,649

$182,218

$235,623

$298,993

$334,833

$468,452

$538,192

$580,082

$655,210

$703,596

FY17

$53,655

$93,801

$123,271

$308,515

$350,575

$406,565

$492,533

$560,958

$622,538

$671,511

$986,178

$1,028,968

FY18

$44,295

$91,555

$138,840

$186,670

$253,714

$302,654

$392,264

$464,364

$518,212

$580,043

FY19

$108,886

$186,861

$243,131

$329,906

$418,153

$482,258

$570,863

$668,289

FY19 Projection

$1,279,800 $1,333,416

$1,151,542 $1,210,027 $1,281,470 $1,348,870
$1,348,870

________________________________________________________________________________
Master Page # 97 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Huntsville Utilities and USIC Tickets per Day
300

250

200

150

100

50

HU

09/30/2019

09/29/2019

09/28/2019

09/27/2019

09/26/2019

09/25/2019

09/24/2019

09/23/2019

09/22/2019

09/21/2019

09/20/2019

09/19/2019

09/18/2019

09/17/2019

09/16/2019

09/15/2019

09/14/2019

09/13/2019

09/12/2019

09/11/2019

09/10/2019

09/09/2019

09/08/2019

09/07/2019

09/06/2019

09/05/2019

09/04/2019

09/03/2019

09/02/2019

09/01/2019

0

USIC

Locate Tickets Received
70000

60000

50000

40000

30000

20000

10000

0
FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

________________________________________________________________________________
Master Page # 98 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Customer Care Monthly Overview

Customer Service

September 2019
PERCENT OF CUSTOMERS APPLYING ONLINE VS. WALK-IN

MAIN OFFICE LOBBY WALK-IN
Payments
Applications
Customer Inquiries
TOTAL CUSTOMERS

7,368
1,425
1,948

100%

11,133

70%

90%
80%
60%

TOP 5 INQUIRIES (Walk-Ins)
New Contracts
IP Discussed/Keyed
Payment Options/More Time
Move Contracts
End Contracts

50%

796
657
214
210
152

40%
30%
20%
10%
0%
Sep-18

Oct-18

Nov-18

Dec-18

Feb-19

Mar-19

Percent Walk-In

CALL CENTER ACTIVITY
Total Calls Received
Calls Handled by IVR
Calls Handled by Agent
Abandoned Rate
Service Level (calls answered <60 secs)

Jan-19

29,292
914
28,378
1.64%
80.78%

COLLECTION ACTIVITY

FY 2019

Write-offs
Revenue Collected
Net Uncollected
Power Diversion Owed
Power Diversion Collected
DWO Collected
TOTAL REVENUE COLLECTED

$714,233
$347,341
$340,138
$83,077
$65,031
$215,220
$627,592

KIOSK PAYMENT ACTIVITY

Cash

1475
1487

1323 1327

Credit/
Debit

1285 1179
2876 2923

2666

2224

2544 2515

Check

1327 1281 1276
1198

3068 2974 2892

New
User

1237

2727 3038

1240 1120

3274 3127

Apr-19

May-19

Jun-19

Jul-19

Aug-19

Sep-19

Percent Online

PAYMENT METHOD TRANSACTIONS

Drop Box
3,714
2%

EFTs
19,787
11%

Kiosk
6,559
4%

Western
Union
27,790
16%

Walk-In
7,368
4%
Drive-Thru
9,675
5%
Mail
28,839
16%

1996 2308 2134 2071 2221 2084 2217 2254 2299 2042 2057 2235 2312

Bank Draft
73,910
42%

________________________________________________________________________________
Master Page # 99 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Customer Care Monthly Overview

Customer Service

September 2019
REVENUE COLLECTED

WALK-IN CUSTOMERS
25000
120,000
100,000

15000

Revenue

Customers

20000

10000
5000

80,000
60,000
40,000
20,000
0

0

Installment Plan Discussed/Keyed
911
574
301
Applications
Customer Inquiries
General Inquiry
238

Bad Debt

Payments

CALL CENTER PERFORMANCE

Power Diversion

Damage Work Orders

C ALL C ENTER S ERVICE Q UEUE

100.00%

90.00%
80.00%
70.00%

Service
23%

60.00%
50.00%

Billing
Inquiry
29%

40.00%
30.00%
20.00%
10.00%
0.00%
Sep-18

Oct-18

Nov-18 Dec-18 Jan-19

Feb-19 Mar-19

Abandon Rate

Apr-19 May-19 Jun-19

Jul-19

Aug-19 Sep-19

Payment
Agreement
48%

Service Level

________________________________________________________________________________
Master Page # 100 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Customer Care Monthly Overview

Customer Relations

September 2019

Billing
Implausibles
Electric
Water
Gas
Total

Average Implausibles by Reason Code
32,970
11,254
39,832
84,056

C&I APPLICATIONS
Walk-In
Fax Requests
Phone Calls
METER READING
Scheduled Readings
Actual Readings
FIELD SERVICE
Cuts Generated
Disconnects
Dead Meters
Orders Completed
Dead Meters Found

100,000

30%
51%

9%

38,944

40,141

13,106

13,126

36,956
June

50,000
40,000

39,246

39,832

12,039

11,254

38,646

35,176

32,970

July

August

September

30,000

20,000
10,000
0 Consumption

Estimations Exceeded

Previously Implausible

Tolerance Limits

CSP Funds Utilized Per Program
September 2019
Ultra-Sonic Testing

1,045
56

80,000
70,000

332
190
1,999

14,772
584

90,000

60,000

10%

321,135
317,151

Implausibles by Commodity

Power Quality Analysis

Special Metering

$4,767.50

$5,860.50
$4,270.50
$22,937.50

Meter Test / Submtr / Profile

$20,198.75

Infared Scan

Energy Audit

$2,500.00

Electric

Gas

Water

Dead Meters By Service Type
80
75
70
65
60
55
50
45
40
35
30
25
20
15
10
5
0

73

53

50

26

8

7

3
0
June

0
July
Electric

3
0

0
August
Water

September
Gas

________________________________________________________________________________
Master Page # 101 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Customer Care Monthly Overview

Customer Relations

Billing: Implausibles
Month

Electric

September
October
November
December
2018 YTD Total
January
February
March
April
May
June
July
August
September
2019 YTD Total

23,544
30,467
31,079
35,847
290,722
28,181
33,319
37,526
34,898
40,315
36,956
38,646
35,176
32,970
317,987

Gas
8,509
10,518
14,044
13,080
114,527
10,736
12,051
12,808
12,853
13,217
13,106
13,126
12,039
11,254
111,190

Water

Total

26,604
32,638
32,816
33,444
313,801
31,385
36,457
36,915
35,969
40,223
38,944
40,171
39,246
39,832
339,142

58,657
73,623
77,939
82,371
719,061
57,509
63,605
87,249
83,720
93,755
89,006
91,913
86,461
84,056
737,274

C&I Applications
Month

Estimations Previously
Exceeded Implausible

8,062
9,425
9,641
8,853
112,831
8,330
7,367
9,151
9,360
10,094
8,773
9,133
8,755
9,474
80,437

3,310
3,843
3,673
3,501
42,405
3,476
3,340
3,836
3,642
3,516
3,361
3,483
3,258
3,195
31,107

1,090
1,213
1,186
850
12,514
464
1,585
2,993
2,922
3,508
4,045
3,867
2,724
2,810
24,918

Meter Reading

Fax
Walk-In Requests

September
October
November
December
2018 YTD Total
January
February
March
April
May
June
July
August
September
2019 YTD Total

Zero
Consumption

296
372
378
261
4,409
630
431
376
356
381
445
386
382
332
3,719

303
417
257
142
3,910
205
111
121
185
177
174
165
171
190
1,499

Phone
Calls
1,384
1,738
1,524
1,392
18,931
2,543
2,476
1,868
2,205
1,967
1,995
2,342
2,628
1,999
20,023

Month
September
October
November
December
2018 Total
January
February
March
April
May
June
July
August
September
2019 Total

Tolerance
Limits
Total New
14,705
19,528
21,976
24,345
227,971
15,367
14,415
22,092
19,922
22,440
21,257
18,538
17,067
16,258
167,356

Control
Reads

27,167
34,009
36,476
37,549
395,721
27,637
26,326
38,068
35,846
39,558
37,436
35,021
31,804
31,737
303,433

3,373
3,563
3,398
3,816
41,380
3,331
2,818
2,609
2,574
3,140
3,738
3,837
2,774
2,580
27,401

Routes
558
620
579
600
7,207
623
600
579
601
616
584
618
610
583
5,414

Field Services

Scheduled
Readings
356,898
388,656
364,472
373,074
4,522,280
381,366
364,387
377,327
358,466
358,756
336,161
350,910
340,772
321,135
3,189,280

Actual
Readings
353,135
384,535
359,213
367,365
4,475,009
374,664
355,485
352,007
353,513
353,928
331,315
345,924
336,368
317,151
3,120,355

Month
September
October
November
December
2018 Total
January
February
March
April
May
June
July
August
September
2019 Total

Cuts
Generated Disconnects
15,144
17,463
16,829
18,005
189,469
21,019
14,617
12,612
14,455
17,200
17,200
15,837
13,728
14,772
141,440

625
927
648
567
9,289
1,085
865
867
772
667
667
481
548
584
6,536

________________________________________________________________________________
Master Page # 102 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Communications/Public Relations Department
Monthly Report
September 2019
PROJECTS/ACTIVITIES:
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


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


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Coordinated website and Social Media changes of Western Union Speedpay to new ACI
Worldwide vendor
Continued working with IT and Purchasing to release RFI for website revamp
Continued development of Huntsville Water Trail for Alabama Bicentennial
Managing project to replace pictures in Board Room
Managing project to procure pictures for HR remodeled office space
Logo Standard Manual – Manual completed, proofed. Passed to Joe for review.
80th Logo – As of 9/30, one proposed design completed. Awaiting main logo choice for updates
Corporate Logo –Two logo concepts completed. Both featured in the Logo Standards Manual.
Natural Gas ad in Hampton Cove publication for October – Gas fire pit, completed including
custom photography and effects.
October insert promotes Education and Community
Submitted art for November thru Jan billing envelopes – Project share
Collected more school supplies for Jemison
Donated 60 scarf/mitten/hat sets from past events to Kids to Love
Worked with MIS on bill messages
Worked on Giveaway inventory. Planned massive employee giveaway of old stock
Started assembling teacher’s gifts for Ed Days
Designed and produced EScore rack card for customer service training
Interviewed and started qualification process with two new local mailing facilities
Assisting HR with open enrollment mailing for employees, including printing of customer
benefits manual
Assisted HR with postcard invites to retirees for company picnic
Still assisting Customer Service with art for customer lobby

VIDEO & PHOTO PRODUCTION




Photos in production for HR hallways
Board Room project – obtaining bids for new artwork
Created video for the local news to share of Huntsville Utilities donating water to Salvation Army
during a hot weather day when they ran out of bottled water

Employee Communications System (ECS)
Produced 178 slides/videos for HUTV. In addition to the regular monthly features, other posts included:
Cybersecurity tips from IT, Information about the Nationwide App, Skin Cancer Screening information,
CARE Center Golf Tournament, United Way meeting dates, Organizational Announcements,
Rescheduled Safety Meetings, HU Game Day info, New policies, HR Training Schedule, EEO/DI Training
Schedule, Kris Brown & Dawn Perry being inducted into the Women’s Economic Development Council,

________________________________________________________________________________
Master Page # 103 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Pics from HU Game Day, Customer Service Week Agenda, United Way Deadline Extension and Pics of
new pump station being built near Cecil Ashburn.
Misc:
We were one of the $1,000 grant winners in the latest “We Believe Challenge.” The grant will go
towards the work Energy Services does with the Operation Green Team Foundation.
Participated in an APGA Media & Public Outreach Committee meeting to discuss a proposal to hire a
communications firm to manage and engage media stories that target the natural gas industry.
Completed the video presentation for the Service Anniversary Luncheon.

Social Media Synopsis:
General: Continued our participation in the APGA’s Natural Gas Genius Campaign. Posted four external
job listings during the month (two separate posts with two jobs in each post). Posts from Huntsville
Utilities were featured in APPA’s Public Power Daily 1 time in September.
Facebook: Strong numbers for the month. Triple digit gains in Likes and Followers. Audience reach of
over 311,000 for the month.
Twitter: Reached 16,000 Twitter Followers.
YouTube: Closing in on 250 subscribers.
LinkedIn: Added 50 new followers since last month.
Instagram: blocked us from accessing our account for about three days. They claimed we violated their
terms of use by sharing our account information with a service that helps increase likes and follows.
However, we never did any such thing.
Nextdoor: seems to be having a problem with their metrics provider.

Website Synopsis: Continuing to work with Purchasing and IT on the website redesign. Made Western
Union/Speedpay changes to the website related to that company’s acquisition.

Media Contacts: PR Staff made 48 contacts with local news and publishing media on topics varying in
nature, including: scams; safety; fiber network progress; road closures for utility work, and; service
outages and restorations.

MEETINGS/EVENTS ATTENDED:
Huntsville Community Connections Network
Huntsville Planning Commission Zoning Committee Meeting
Huntsville Planning Commission Meeting
Madison County Commission
Huntsville City Council Meeting
Energy Huntsville Monthly Meeting

________________________________________________________________________________
Master Page # 104 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Alabama’s Bicentennial – HU Water Trail Project
HU Overview with State Senator Sam Givhan
Alabama Association of Energy Engineers
North Alabama Code Officials
HMCBA Governmental Affairs Committee
Huntsville Community Connections Network
Councilman Bill Kling, District 4 Town Hall Meeting
HU Overview with State Representatives Rex Reynolds & Andy Whitt
North Alabama African American Chamber of Commerce Monthly Meeting
Alabama Power Networking Meeting
COMMUNITY RELATIONS PR STAFF:
Joe Gehrdes – Manager
Gary Whitley – Communications & Public Relations Manager
Todd Long – Electronic Content Administrator
Amanda Kemp – Videographer/Photographer
Deborah Hudson – Communications Specialist

________________________________________________________________________________
Master Page # 105 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 Septemer 2019

PLEASE NOTE: GWI was awarded 9/21/19

ELECTRIC DIVISION
Job Title
Line Supervisor

9/21/19

Promotion

Justin Woodard

System Operator II

9/21/19

Reclassification - No change in salary

9/26/19

Termination

Katrin Russell

Date

Explanation

Name
Donald Smart

Chris Thigpen

System Operator I

9/21/19

Step Increase

Jennifer Murray

Clerk I

9/21/19

Step Increase

Zachary Guffey

Fiber Outside Palnt Tech I

9/21/19

Step Increase

GAS DIVISION
Name

Job Title

Date

Explanation

David Fletcher

Pipefitter

9/21/19

Step Increase

Robert Fearn

Meter Technician I

9/21/19

Step Increase

Thomas Penney

Pipefitter

9/21/19

Step Increase

Name

Job Title

Date

Explanation

Julie Brown

GIS Administrator

9/21/19

Promotion

Jennefer Jones

Collections Specialist

9/7/19

Promotion - Lateral

Jasmine Stewart

Clerk I

9/21/19

Voluntary Demotion

Kristy Reeves

Billing Representative I

JOINT DIVISION

9/7/19

Voluntary Demotion

Jacquelyn Schultz

9/13/19

Termination

Jacob Stapler

9/14/19

Termination

Dalena Smith

PPR

9/9/19

New Hire

Anyama Tettey

Engineer II

9/9/19

New Hire

Shakari Curtis

CSRI

9/23/19

New Hire

Brittany Pruitt

CSRI

9/23/19

New Hire

Twanda Jamar

CSRI

9/23/19

New Hire

WATER DIVISION
Date

Explanation

Leak Detector II

9/7/19

Step Increase

Water Plant Operator II

9/21/19

Step Increase

Name

Job Title

Jessica Yarbrough
Paul Swinford "Logan"

________________________________________________________________________________
Master Page # 106 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

 2019 Human Resource Reporting
Employee Badges of Recognition
Jan.

Feb

March

April

May

June

July

August

September

October November December

Totals

4

1

16

3
1

6
1

6

1

54
24
5
42
36
68

Supervisor
Recognition
Amazing
Great Work
Leader
Nice Person
Team Player
Team Work
Thank You
Welcome

2

3

2

3

1

8
5

6
2

8
4

1

1
2

10
5

5
1
16

6
2
14

11
29
7

2
1
4

1

11
4
5
10
3
6
2

6

12

37

33

61

8

10

42

21

26

1

1

2
2
2
3

4
1

8

3

4

1
1
5

2

2

2
5
5

6
1
1
3
2
7

4

4
1
1
1
2
4

Total

11

18

21

15

6

10

$25 Gift Card Recognition

0

2

5

1

0

Jan.

Feb

March

April

May

Total

3

9

0

0

0

247

Co-Worker
Recognition
Amazing
Great Work
Leader
Nice Person
Team Player
Team Work
Thank You
Welcome

Disciplinary Actions
Performance/Absenteeism
Insubordination
Safety (Preventable Vehicle Accident)
Policy or Procedure

1
2

Total

3

1

1

4

3
3
8
4

1
3
1
4

13

18

12

0

0

1

1

June

July

August

Sept.

2

34
8
5
25
15
31
0
0

0

0

2

2

2

2
2
4

3

0

2

2
1

2

3

122

10

October

Nov.

Dec.

3

2
1

3

4
0
7
9
0

0

0

Comments:

________________________________________________________________________________
Master Page # 107 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019

20

 MEMORANDUM
To:

Electric Board
Gas/Waterworks Board

From:

Wes Kelley, President/CEO

Date:

October 15, 2019

Subject:

September President’s Report

Regular Meetings with City Leadership
As our community grows, our interactions with the City of Huntsville are increasing in both
quantity and complexity. Our engineering teams spend a considerable amount of time working
shared projects, but management leaders interact on an as-needed basis as problems or
complication arises. To promote more consistent communication, and enable better alignment,
Mayor Battle and I agreed to establish regular meetings to reinforce our existing strong ties.
The Mayor and I will meet for lunch at least every other month to talk one-on-one about pressing
issues or long-term objectives. Also, HU and City leadership will come together quarterly to
discuss overlapping issues and hot topics. While our current relationship with the City is solid, I
am hopeful these meetings will result in even smoother operations and a better service for our
customers.
Water Threshold
I’m pleased to report that our water system has passed an important milestone. This month, we
reported more than 100,000 water connections to our distribution system. The acquisition of
LCWSA assets in west Huntsville helped push us over this number, but the growth of Huntsville
means we will continue to see this number climb.
Speaking Opportunities
Over the last month, I’ve had the opportunity to represent HU at several interesting conferences.
Early this month, I addressed the American Public Power Association’s Public Power Leadership
Summit on the subject of “Building a Culture of Excellence.” Later in the month, I was part of a
panel at the Tennessee Valley Solar Conference on the topic of “Renewable Market Demand and
Opportunities” and a panel at the Annual Conference of the Alabama/Mississippi Chapter of the
American Planning Association on the topic of “The Future of Energy Generation and
Distribution.” It is a privilege to have these opportunities.

________________________________________________________________________________
Master Page # 108 of 108 - Huntsville Utilities Electric Board Meeting 10/23/2019