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HomeMy WebLinkAbout1996-09-18 Min - Board (3) STAFF REPORT September 16, 1996 TO: Board of Directors FROM: Peter L. Holzmester, General Manager SUBJECT: August staff report AGENDA # 10 1. NCPA: I am continuing to be involved in NCPA's utility managers group meetings. This group consists of the manager of each of the NCPA member utilities. We are meeting each month to help guide NCPA into the new deregulated electric industry. I anticipate that my involvement will increase in 1997 and beyond. I also anticipate that Steve Hollabaugh and Scott Terrell will be more involved with NCPA and deregulation issues in 1997. 2. Electric industry deregulation: The California legislature has passed AB 1890. The bill passed unanimously in both houses of the legislature and Governor Wilson is expected to • sign it. This is the bill that restructures the electric industry in California. I am attaching the legislative counsel's digest to this report for your review. The provisions of this bill will need to be discussed by the Board of Directors and a few decisions will need to be made regarding District involvement. I am also not certain at this point how this bill effects SPPCo's involvement in California. This bill is certain to be discussed at the NCPA conference in Monterey later in the month. 3. TROA: Pat Sutton and I continue to be involved in the Truckee River Operating Agreement negotiations. The next big negotiating session involving the five parties mandatory to the agreement will occur on Tuesday and Wednesday of this week in Reno. The five mandatory parties to TROA are the State of California, the State of Nevada, the U.S. Government, the Paiute Tribe and SPPCo. The topic that i am following most closely is the regulation of the use of groundwater and standards for construction of well. 4. Water service in Martis valley:Pat Sutton and I attended a Placer County LAFCo meeting where water service to Martis valley was discussed. We learned that Placer County Water Agency has created an entity called Zone 4 in the Martis valley to serve Lahontan (Gooseneck Ranch). We voiced our concern, but it fell on deaf ears. This is a matter the PUD Board needs to discuss further. 5. Timber harvest. The harvest of timber from the McGlashan property has begun. So far the work is progressing quickly. We expect to be complete by October 10. We have received no complaints from the neighbors. 6. Sphere of influence: i have spent time reviewing the District's draft Sphere of Influence report prepared by Keith Sauers. I have aiso spoken with Tony Lashbrook regarding our last set of comments on the Town's sphere report. Tony tells me he has been instructed by the town council to work with us to reach some agreement on the definition of "urban development." 7. Budget preparation: Staff is working on the 1997 budget. We intend to stick to the budget calendar presented to the Board, so you should be receiving a draft budget from us in early November. PLH Ismc Attachment AB 1890 • —2— dj • -3— AW90 electric service provider as of December 20, 1995, from providing electric service to a retail customer of a publicly tax aet relating 1e pHblie dies.An act to amend Sections owned electric utility unless the customer pays to the utility 955.1 and 3440.1 of the Civil Code, to amend Section 9104 of currently providing electric service, a nonbypassable the Commercial Code, to amend Sections 63010 63025.1, and generation-related severance fee or transition charge, as 63071 of, and to add Article 6 (commencing with Section defined, established by the regulatory body for that utility. 63048) to Chapter 2, of Division 1 of Title 6.7 of, the The bill would prohibit a local publicly owned electric Government Code, to amend Section 216 of, to add Chapter utility or othergovernmen tal entity from providing electrical 2.3 (commencing with Section 330) to, to add Article 5.5 service to a retail customer of an electrical corporation unless (commencing with Section 840) to Chapter 4 of, Part 1 of that customer pays a nonbypassable transition charge to the Division I.of, to add Division 4.9 (commencing with Section electrical corporation. 9600) to, and to repeal Article 12 (commencing with Section I The bill would require the local regulatory body of each 394) of Chapter 2.3 of Part 1 of Division 1 of, the Public local publicly owned electric utility to determine whether it Utilities Code, relating to public utilities, making an will authorize direct transactions between electricity appropriation therefor, and declaring the urgency#hereof, to I suppliers and end use customers, subject to implementation take effect immediately. of the nonbypassable severance fee or transition charge, and provide for procedures to implement the direct transactions. LEGISLATIVE COUNSEL'S DIGEST I This bill would provide for the issuance of rate reduction AB 1890, as amended, Brulte. Public utilities: electrical bonds for the recovery of transition costs, as defined, by restructuring of tke eleetrie ice. electrical corporations, pursuant to the restructuring of the Existing law provides for the furnishing of utility services, I electrical services industry. including residential electrical,gas, heat, and water services, I Under the Bergeson-Peace Infrastructure and Economic byprivately owned public utilities subject to the jurisdiction —1 Development Bank Act, the California Infrastructure and and control of the Public Utilities Commission and similar Economic Development Bank is authorized to, among other services by publicly owned public utilities including things, issue and sell or purchase bonds, as defined, make municipal corporations subject to theirgoverning bodies and loans,and provide for other types of financing for qualifying municipal,utility districts andpublie utility districts subject to projects for public improvements by specified public their boards and directors. agencies, known as sponsors, and to execute any instrument The bill would amend the Public UtditiesAct to require that necessary, convenient, or appropriate to carry out any power the commission undertake various actions, including the expressly,given to the bank by the act. The act also establishes facilitation of the efforts of the state's electrical corporations and makes available to the bank the California Infrastructure to develop and obtain authorization of the Federal Energy Bank Fund,aspecialfundeontinuouslyappropriatedforthese Regulatory Commission for the creation and operation of an ( purposes. Independent System Operator and an Independent Power - Byprovidingfor the financing of transition costs under the Exchange, and . the authorization of direct transactions actwhichisanewuseofcontinuouslyappropriateditmds, this bill would make an appropriation. to implementation between ofanoribyp able charge.uliers and end use omers, subject, The bill wouldalso incorporate changes toSeetiou216ofFl;iie This bill would prohibit any person, corporation, electrical Public Utilities Code proposed by AB 2501, to take effect if corporation,:or local publicly owned electric utility or other both bills are chaptered and this bill is chaptered last. governmental entity other than a retail customer's existing ri 92 92 riffs 16W 0 —4— , 0 —5— Al890 Since violation ofthePublic UtilitiesActisamisdemeanor 1 (b) It is the intent of the Legislature to provide the the bill would impose additional duties upon local law 2 legislative foundation for transforming the regulatory enforcement agencies, and the bill would also impose 3 framework of California's electric industry in ways that additional duties on local agencies, thereby constituting a 4 meet the objectives stated in subdivision (a). It is the state-mandated local program. 5 further intent of the Legislature that during a limited The California Constitution requires the state toreimburse 6 transition period ending March31,2002, toprovddeforalI local agencies and school districts for certain costs mandated 7 of the following: by the state. Statutory provisions establish procedures for 8 (1) Accelerated, egzdtable,nonbypassable recovery of making that reimbursement, 9 transition costs associated with uneconomic utility This bill would provide that no reimbursement is required 10 investments and contractual obligations. by this act for a specified reason. 11 (2) An immediate rate reduction of no less than 10 This bill would declare that it is to take effectimmediately 12 percent for residential and small commercial ratepayers. as an urgency statute. 13 (3) The financing of the rate reduction through the UftEler ex4A4ftg Ja%*; the '� 8eattftissiett is ( 14 issuance of "rate reduction bonds" that create no new e� �s. 1 15 financial obligations or liabilities for the State of T4iis bill the intent of the T . gisl..a.. � � w4th 16 California. fesPeeThe� d the�of�e��`• i 17 (4) An anticipated result through implementation of 2 operativeettlyi€ARg463iseea�i- 18 this act of subsequent, cumulative rate reduction for Vote:ttiajst4t 13.Appropriation:ne yes. Fiscal committee: _i 19 residential and small commercial customers of no less tie yes. State-mandated local program: tte yes. 20 than 20 percent by April 1, 2002. 21 (5) A "fire wall' that protects residential and small The people of the State of California do enact as follows: 22 business consumers from paying for statewide transition 23 cost policy exemptions required for reasons of equity or 1 SgC= ;—1- 14 is the intent of the T=`" 1 24 business development and retention. 2 SECTION I. (a) The Legislature finds and declares 25 ' (6) Protection oftheinterests of utility employees who 3 that the restructuring of the California electricity 26 might otherwise be economically displaced in a 4 industry has been driven by changes in federal law 27 restructured industry. 5 intended to increase competition in the provision of 28 (c) It is the intent of the Legislature to direct the 6 electricity.Itis theintent of the Legislature to ensure that 29 creation of a proposed new market structure featuring 7 California's transition to a more competitive electricity 30 two state chartered, nonprofit market institutions: a 8 market structure allows its citizens and businesses to 31 Power Exchange charged with providing an efficient, 9 achieve the economic benefits of industry restructuring ! 32 competitive auction to meet electricityloadsofexchange 10 at the earliest possible date, creates a new market 33 customers, open on a nondiscriminatory basis to all 11 structure thatprovides competitive,low costandreliable 34 electricity providers; and an Independent System 12 electric service, provides assurances that electricity 35 Operator with centralized control of the statewide 13 customers in the new market will have sufficient ( 36 transmission grid, charged with ensuring theefficientczse 14', information and protection, and preserves California's I 37 and reliable operation 'of the transmission system;'`;'A 15 commitment to developing diverse, environmentally 38 five-member Oversight Board comprised of three 16 sensitive electricity resources. 39 gubernatorial appointees, an appointee of the Senate 40 Committee on Rules and an appointee of the Speaker of 92 92 AB 18900 — 6— ' —7— 1890 1 the Assembly will oversee the two new institutions and ` 1 Section 9102 of the Commercial Code) of any general 2 appointgoverning boards that are broadlyrepresentafive 2 intangible (Section 9106 of the Commercial Code) 3 of California electricity users and providers. It is the 3 consisting of any right to payment and any transfer of 4 further intent of the Legislature to direct the 5 Independent System Operator to seek federal I 4 accounts or chattel paper excluded from the coverage of 6 authorization to perform its functions and to be able to 5 Division 9 of the Commercial Code by Seetio 9184{-i:} 7 secure the generation and transmission resources needed 6 Codes hall b deemed e perfected 9104 of the Commercial �'� 7 Code shall be deemed perfected as against third persons 8 to achieve specified planning and operational reserve 8 upon there being executed and delivered to the 9 criteria. It is the further intent of the Legislature to ( g transferee an assignment thereof in writing. 10 require development ofmaintenance standards that will 10 (b) As between bona fide assignees of the same right 11 reduce the potential for outages and secure participation 11 for value without notice, the assignee first giving notice 12 in the operation of the Independent system Operator by 12 thereof to the obligor in writing has priority. 13 the state'?independent local publicly owned utilities. 13 (c) Seek aft The assignment is not, of itself, notice to 14 (d) It is the intent of the Legislature to protect the 114 the obligor so as to invalidate any payments made by the 15 consumer by requiring registration of certain sellers, 1 15 obligor to the transferor. 16 marketers, and aggregators of electricity service, 17 requiring information to be provided to consumers, and I 16 (d) This section does not apply to transfers or 18 providing for the compilation and investigation of 17 assignments of transition property, as defined in Section 19 complaints. It is the further intent of the Le 18 840 of the Public Utilities Code. g' ature to 20 continue to fund low-income ratepayer assistance 19 SEC..3. Section 3440.1 of the Civil Code is amended 20 to read.• 21 programs, public purpose programs for public goods 21 3440.1. This chapter does not apply to any of the 22 research, development and demonstration, demand-side 22 'following: 23 management and renewable electric generation 23 (a) Things inaction. 24 technologies in an unbundled manner. 25 (f) It is the intent of the Legislature that electricallie 24 (b) Ships or cargoes if either are at sea,or in a foreign 25 port. 26 corporations shall, jz by me 1, 1997, or on the earliest 26 (c) The sale of accounts or chattel paper governed by 27 possible date, apply concurrently for financing orders 27 the Uniform Commercial Code, security interests, and 28 from the Public Utilities Commission and rate reduction 29 bonds from the California Infrastructure and Economic 28 contracts of bor branormly ie respondentia. 30 Development Bank in amounts sufficient to achieve a 29 wine Wines or brandies in the wineries, distilleries, or 31 rate reduction in the most expeditious manner for 30 wine cellars of the makers or owners of the wines or p 31 brandies, or other persons having possession, care, and 32 residential and small commercial customers of not less 32 control of the wines or brandies,and the pipes,casks,and 33 than 1D percent for 1998 and continuing through March 33 tanks in which the wines or brandies are contained,if the 34 31, 2002. 35 SEC. 2.. Section 955.1 of the Civil Code is amended to i 34 transfers are made in writing and executed and 36 read- 35 acknowledged, and if the transfers are recorded in the 37 955.1. a Except as 36 book of official records in the office of the county recorder 38 955 ands(a)ect to t as provide in Sections a transfer 37 of the county in which the wines, brandies, pipes, disks, (b) O 38 and tanks are situated. 39 other than one intended to create a security interest 40 (See6en 91 2+1+�a+ (paragraph (1) ofsubdivision (a) of 92 92 # STAFF REPORT September 16, 1996 TO: Board of Directors FROM: Kathy Neus, Support Services Manager SUBJECT: August staff report AGENDA # 10 PURCHASING AND WAREHOUSING 1. Staff is continuing to order material, stage material for jobs and deliver material to the crews in the field. 2. The yard was cleaned and reorganized. Joe helped Wayne Cummings clean-up and organize transformers out at Mattis Substation, METER READERS 1. The Meter Readers are continuing to install AMR meters on connects and disconnects. There are two routes at Donner Lake slated for September. Whenever the line crew installs electric services, AMR meters are being installed. 2. There were 9,541 meters read for the monthly reading cycle, 249 service reports completed and 128 forty-eight hour/1013 notices delivered. VEHICLE MAINTENANCE 1. Unit#16, the generator truck, was delivered to Reno to have the rear axle relocated; this will help distribute the load of the generator This project was budgeted for 1996. 2. August was the month for preventative maintenance on pick-ups in the District fleet. There were 14 service inspections, three BtTs performed, one brake inspection and one monthly aerial completed. BUILDING AND GROUNDS MAINTENANCE 1. Once again it was a routine month; there were no emergencies. BUYER/CLERK AND WAREHOUSE UTILITY WORKER POSITIONS 1. The tests for BuyerlClerk and Warehouse Utility Worker were finalized and ordered. Tests were taken the first part of September. KNlsmc . TRUCKEE DONNER PUBLIC UTILITY DISTRICT PLANNING DIRECTOR ACTIVITIES AUGUST, 1996 Note: Since most of these projects are ongoing, Staff continues to report the basic information and highlights the activities that have occurred during the reporting month. When a project or activity is completed it is reported, then deleted from this report. Strategic Planning/District $Savings Business Customer Communications- Staff will finalize the development of a Key Account Management Program proposal this October. This newly developed program is designed to foster a positive, open line of communication with our largest customers and determine how they feel about TDPUD's service and how they see working with TDPUD in the future. TDPUD Staff has had some preliminary discussions with TTSA and Tahoe-Truckee Unified School District Staff about deregulation and their future needs and wants. TDPUD Staff has arranged a deal with the California Energy Commission to provide free Energy Services consulting to TTSA to improve their wastewater system's energy efficiency. TDPUD Competition Plan- Staff is planning to prepare a report about the different utility issues we are currently being challenged by. The report will include a discussion . of the different approaches TDPUD can take to meet these challenges as well as an analysis and recommendations to respond to competition. This comprehensive report is being postponed until the evaluation results of the GSHP pilot, the large Business Customer meetings and other competition related projects and issues are available. Energy/Water Showcase Program- HDR Engineering, Inc. has prepared and submitted a report to TDPUD Staff that identifies cost-saving energy-efficiency water system improvement options available to TDPUD. HDR is currently completing some in-depth analysis on the cost-effectiveness of some additional controls for water system efficiency. A meeting with HDR, Sauers, Sandel-Avery and TDPUD is scheduled for September 23 to discuss the need for some additional control strategies to improve power savings for the TDPUD water system. After the final document is completed TDPUD can decide which options may be worth implementing based on their cost-effectiveness to the District. Conservation/DSM/Economic Development Ground Source Heat Pump Pilot Site Activity- Nine GSHP pilot site units are currently in operation. A tenth site is partially completed in Glenshire. The ground source heat exchangers were installed August 23. This will culminate the pilot site installations. Truckee Community GSHP Pilot Project- The monitoring activities are expected to begin by Winter, 1996. The pilot site monitoring equipment is current being ordered • through the SMUD procurement process. The monitoring program design has been completed. The grant-funded research activities including the findings will be completed by April of 1997. CA GEO-Heat Pump Show- TDPUD and Sierra-Pacific Power Company Staff are currently marketing the California Ground Source Heat Pump Show in North take Tahoe October 19-20. TDPUD will be using the TDPUD display system at the Show. The Show will educate consumers and building professionals on the technology. The Show will include many GSHP industry exhibitors. GSHP Bulk Purchase & Installation Program- I am working with Truckee consumers to plan and implement a bulk purchase & installation program for home and business owners interested in installing ground source heat pumps at a reduced cost. The August 5 meeting was successful. There are currently over 20 potentially interested participants. Staff is planning to hold these meetings every month and continue to attract new participants. The next meeting is scheduled for September 10. TDPUD GSHP Cost Study- I have arranged at Kathy's request a study to determine the cost of installing GSHPs into the TDPUD building for heating and cooling. The study is being conducted by Sierra Air in Reno and WaterFurnace International, a major GSHP manufacturer. A review of this study will be conducted by TDPUD and Sauer's Engineering Staff. The study is expected to be completed in October. CFIA Demonstration Project- Staff has been in contact with Professor Samuel Sami of Moneton University in Canada regarding his testing of a Combined Cycle Fully Integrated Air/Air Heat Pump(CFIA). Tests so far have shown that it has comparable performance benefits of GSHPs without the cost of a ground loop. Staff has developed a CFIA mini-pilot draft proposal and a draft confidentiality agreement. These documents are currently being reviewed. GSHP/Water Heater Promotion- Staff is working toward getting the Truckee GSHP pilot monitoring program in place so that we will have data available to perform an analysis of the benefits and costs of using GSHPs in Truckee. The results of this study will be used to determine GSHP's role in TDPUD's Strategic Plan. A draft proposal has been developed to promote the benefits of high efficiency electric water heating to TDPUD customers. Energy Surveys/High Bill Assistance- Staff completed 0 commercial and 1 residential energy survey(s) this month. Staff also responded on-site to 2 "high" bill complaint(s). Business & Energy Efficiency Partnership- The incorporation of energy and water efficiency measures are expected to be retrofitted into the Chamber building by October, 1996. Currently about 80% of these measures are installed. Staff is currently working on a self-guided tour brochure of energy and water efficiency measures for the Chamber building. The Open House for the new Chamber facility and the Business & Energy Efficiency Partnership is being planned for October 8, 1996. Truckee Businesses and residents will be invited and are encouraged to attend this event. • Sierra Nevada Children's Museum- SNCM Staff has asked TDPUD to participate in their upcoming Mountain Home Construction Display. TDPUD Staff has offered to assist the project with energy, water conservation and ground source heat pump information including display assistance. In addition, TDPUD Staff has offered to provide a home energy sefF-audit survey for kids to learn about home energy surveying. They will learn to perform a walk-through survey of their home. Staff has also offered to come to their home to assist in the survey if requested. Staff also plans to integrate tours of the Chamber's energy and water-efficient building and grounds along with GSHP sites into the "program". Communications/Public Relations/Education Newsletter- The Fall Current Issues newsletter has been completed and will be mailed to our customers beginning mid-September. Topics include: Chamber Open House, GSHP Bulk Purchase & Installation Program, GEO-Heat Pump Show, Automated Meter Reading, and Address Visibility. Critical Issues Communication- Staff met with five different marketing and advertising agencies July 19 to discuss their ideas on implementing a critical issues communication program for TDPUD. A review of each agencies written proposals is planned for in September. Community Calendar- The Tahoe-Truckee Unified School District Community/ Measure S calendar has been completed. TDPUD Staff reserved May, 1997 and October, 1996 to promote Water Awareness Week and Public Power Week. Community/Statewide Involvement Chamber of Commerce Economic Development Committee- Working with other businesses in reviewing: the Downtown Specific Plan, Business Questionnaire, Doing Business in Truckee Guide, act. Staff attended the August 6 EDC meeting. Tahoe-Forest Hospital Healthly City Committee- Working with other agencies and community groups in the development of a Healthly City Plan for Truckee. There was no meeting scheduled in August. Current plans include developing a presentation to the community on areas of need within the community as derived from surveying local groups and organizations responding to a survey. Town of Truckee Air Quality Management Plan Advisory Committee- Staff is currently working with other interested parties and agency representatives in reviewing a draft report on Truckee's AQMP prepared by the Northern-Sierra AQMD in conjunction with the Town of Truckee. Staff attended the August 13 meeting. I was on vacation at the time of the August 27 meeting. The Committee is currently evaluating different options for mitigating the PM 10 problem in Truckee. GSHPs are one of the options being considered. The end result of the Committee's efforts will be to recommend mitigation efforts to reduce PM 10(particulate matter <10 microns) in Truckee. The two main causes of PM 10 in Truckee are road sand dust and burned particulate matter from wood burning. Northern California Power Agency Member Services Task Force- A meeting was not scheduled for August. The group with NCPA Staff in the lead has developed a Customer Retention Workshop for NCPA members September 19, 20. California Municipal Utilities Association Committee on Energy Efficiency- The Model Energy Services Competition Program Guidebook has been completed. This document contains a description of many of the strategies utilities are using to respond to a changing, more competitive electric utility environment. Programs are designed to increase customer satisfaction and result in customer retention. CEC California Ground Source Heat Pump Collaborative- Staff participates in quarterly meetings of the California Energy Commission's GSHP Collaborative. The Collaborative was formed to oversee the development and promotion of the GSHP industry in California. The next Collaborative meeting is scheduled for October 18 in Truckee, TDPUD Board Room. The TDPUD Board approved TDPUD's participation as a co-applicant with the Geothermal Resources Council for $159,337 from the GEC Geothermal Funding program. The focus of the proposal is to strengthen the infrastructure of the GSHP industry in California by developing GSHP training for HVAC, plumbing, drilling, excavating and other contractors. Utility Energy Forum Planning Committee- The 1997 UEF meeting will be . in Granlibakken. The next meeting is scheduled for September 9 in Sacramento. 1 have agreed to Chair this Committee comprised of electric and gas utilities as well as the CEC, NCPA and CMUA. Employee Safety/Training Safety Committee- The TDPUD Safety Committee met August 23. Wellness Program/Healthy Meals- This continues to be a popular program with TDPUD employees. We had a "healthy" lunch August 7. The menu included: Ramen Salad w/Shrimp, Cilantro Relish w/Fresh Nan(Indian Bread), Caramel Praline Bars(see attached recipes and nutritional analyses). Wellness Program/Health Education- Staff has begun planning with Tahoe-Forest Hospital Staff for the 1996 Health Screenings including Hearing Tests. Participating Exercise Program Employees will also get a chance to discuss their exercise program and how they are progressing. • Truckee Donner Public Utility District Board of Directors 14 Joseph R.Aguera J. Ronald Hemig Business Office Planning Services Robert A.Jones (916) 587-3896 (916)587-3944 FAX(916) 587-5056 James A. Maass Patricia S. Sutton General Manager Peter L. Holzmeister ADMINISTRATIVE SERVICES: August-September, 1996 STAFF REPORT Submitted by Mary Chapman, September 16, 1996 CUSTOMER SERVICE: Activity has been relatively quiet for the customer services staff. This has allowed them to stay caught up with their work and filing. Becky will be helping the meter reading staff change out meters on Thursday. NEW CONSTRUCTION: New construction requests have also slowed down some. The USA requests continue to come in for pipeline locations. • Sue Camara who is the work order clerk has accepted the buyer/clerk position in Support Services. The work order clerk position was posted in house. We did not receive any bids. Therefore, we will be advertising to fill the position from outside the organization. BILLING: Billing is current. ACCOUNTING: Accounts payable and payroll are current. We are currently working on the August financial reports. PERSONNEL: During the last couple of weeks, 1 have given tests for the electric technician position, the buyer/clerk position and the warehouse/utility worker positions. BUDGET: The budget forms have been distributed to the department heads. I will be spending the next several weeks preparing our department budget, all of the overhead calculations and several of the support documents that make up the budget proposal. 0896MOLY.RPT Post Office Box 309 11570 Donner Pass Road Truckee, California 96160 STAFF REPORT September 16, 9996 • To: Board of Directors From: Bob Quinn, Electnc Superintendent Subject, August Activity Report AGENDA ITEM 1,� Dunng the month of August, crews worked on various projects that included development agreements, a master plan project, and maintenance. The following is a listing of those projects where crew hours were logged.' In the Olympic Heights subdivision, a pole was replaced to give proper clearances between our facilities and those of cable TV and telephone. This project involved transferring the primary feed to other circuitry and took several days to complete. Knight's Crossing, a development agreement project in Glenshire, was completed. The project involved the installation of underground facilities, padmount transfom7er, a padmount primary junction cabinet, and a primary.riser. The Truckee River bridge crossing, a master plan project, was attempted. We recently installed conduit at this location with S.W.Gas and this was our first attempt at getting a rope through the new conduit For two days, the crew attempted various ways to install the pull rope but were unsuccessful and it was believed we would have to dig into the street to ascertain the problem. As a final try, a contractor with power driven equipment was employed to assist in the installation of the pull rope. After three days of effort, pull ropes were finally installed into the new conduits and the crew was able to run a mandrel through the conduits. The length of the runs (670) and the number of bends in the conduit proved to be the problem. As of this writing, the conductor has been pulled into the conduits and will be reflected in the September report. The Rhodes development occurred during August and was completed. This project, near Sugar Pine Estates, involved the installation of two padmount transfomoers and related underground facilities. At the west end of Donner Lake, we have had numerous problems during storms with the old system we purchased from Sierra years ago. The crews spent a considerable amount of time this past month upgrading those old facilities. Along Washoe, Fawn, and Salmon streets, we eliminated the two wire primary system that creates voltage problems during single phase outages and replaced the open wire secondary with triplex secondary conductor. This area has been a constant source of problems and with the improvements, should be more reliable. The service crew completed 34 overhead and 7 underground service orders. In addition, they completed 374 U.S.A's. On August 19th our substation operator, electrical engineer, and two representatives from Cooper Power, were in the Martis substation reprogramming the recloser controls for the eventual installation of our new SCADA system. During the process of transferring load from one breaker to another, a switch was closed and upon closing the insulator holding 112 of the energized switch arm failed. This allowed the energized portion of the switch to come into contact with the metal structure and the resulting arc went phase to phase melting conductors, destroying the bushings on the recloser, and showering the operator with molten aluminum. Energized conductors swung freely and one conductor fell to the ground. Very fortunately, there were no injuries. Investigation showed no safety practices had been violated and the cause of the accident was indeed a faulty insulator. This type of insulator had failed twice before within this station but the prior failures were not of a nature that would lead to catastrophic failure as occurred during this incident. As a result of this accident, all insulators of this type (78) within the system are being replaced. They have been ordered and should arrive midL October with replacement taking place shortly thereafter. Steve Hollabaugh, our electrical engineer, has been extremely busy working on the SCADA system. Hopefully this project will on-line before the end of the year. As you can see, the crews of this department were not resting on their laurels during August. September should prove to be as productive. Respectfully submitted i