Wisconsin Public Utility Institute Board Meeting Draft Minutes July 21, 2016

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Wisconsin Public Utility Institute Board Meeting Draft Minutes July 21, 2016 The meeting was called to order at 1:05 p.m. Roll Call: Present: P.J. Distefano, Deloitte; John Sumi, MG&E; Frank Greb, Seventhwave; Paul Meier, Wisconsin Energy Institute; Sarah Justus, ATC; Rep.

1 Wisconsin Public Utility Institute Board Meeting Draft Minutes July 21, 2016 The meeting was called to order at 1:05 p.m. Roll Call: Present: P.J. Distefano, Deloitte; John Sumi, MG&E; Frank Greb, Seventhwave; Paul Meier, Wisconsin Energy Institute; Sarah Justus, ATC; Rep. Mike Kuglitsch, WI Assembly; Nilaksh Kothari, Manitowoc Public Utilities; Brian Rude, Dairyland; Heather Leibham, We Energies; Kira Loehr, Foley and Lardner; Deb Erwin, Xcel Energy; Jeff Ripp, PSCW; Rob Crain, Alliant Energy; Jordan Hemaidan, Michael Best & Friedrich; Ronda Ferguson, Wisconsin Public Service; Lawrie Kobza, Boardman and Clark; Dave Siebert, DNR; Cara Lee Mahany Braithwait, WPUI Excused: Earl Gustafson, WI Paper Council; Rep. Robb Kahl, WI Assembly; Michael Corradini, Wisconsin Energy Institute; Rodney Stevenson, UW-Madison January 2016 Meeting Minutes John Sumi moves to approve January 2016 board meeting minutes. P.J. Distefano seconds. There was no discussion. The motion passes. Approval of Charter Changes Cara Lee Mahany Braithwait had provided a proposed revised charter to the board in advance of the meeting, based on what was discussed at the January 2016 board meeting. Deb Erwin proposes to eliminate the Other category under 2.1C is moved to the introductory sentence in 2.1C, such that item k is eliminated, and the new introductory sentence of 2.1C reads Members are classified according to one of the following categories or other organizations subject to 2.1A Paul Meier moves to approve the revised charter with Deb Erwin s proposed change. Sarah Justus seconds. The motion passes. Membership Cara Lee Mahany Braithwait provided the board with a list of current members and potential members. She proposed that a membership committee be formed again to help increase the number of paying members.

2 P.J. Distefano, John Sumi, and Frank Greb volunteer to serve on the membership committee. Past Programs Cara Lee Mahany Braithwait described the programs that WPUI has offered so far in They nc Most programs have been well-attended, and Cara Lee is also pleased with the make-up of attendees beyond the raw attendance numbers Budget Cara Lee Mahany Braithwait provided a budget snapshot over the past 12 months. The overall fund balance was relatively flat, and had a net increase of about $7000 over the year Expenses were roughly $81,000 in salaries (47%), $40,000 in fringe benefits (23%) and $51,000 in supplies and services (30%) Cash flow remains lumpy revenues are largely driven by membership fees collected in winter as well as course registration fees, which don t always line up with expenses month-to-month. Since 2015, the College of Engineering has instituted a 10% surcharge on WPUI expenses to cover university services that WPUI uses. That surcharge is expected to remain in place in perpetuity, whereas previous surcharges were not always consistently applied. Revenues were roughly $81,000 in memberships (45%), $78,000 in Registrations (44%), and $21,000 in services (11%). Considering registration revenues vs. direct expenses, all programs in the past twelve months have been net positive. WPUI will continue to assist with the EEI Rates and Transmission courses, which not only bring in revenue for Cara Lee s services, but also bring other benefits such as connections to speakers. Previous board meetings have discussed the policy on carrying a fund balance, and WPUI has worked with the College of Engineering to develop a statement demonstrating the need to carry a balance each year to provide programming in case there is a sudden change in revenues. Cara Lee gave the board a draft statement on the fund balance policy, and it was advised by the College of Engineering that the board would either reaffirm or modify the statement each year to keep the policy up-to-date. There were several suggested changes to the draft statement to improve clarity. A revised version will be sent to board members to review and vote electronically. The budget forecast for will follow similar assumptions to the previous year. Frank Greb moved to approve the budget forecast. Brian Rude seconded. There was no discussion. The motion passes.

3 Presentation by Mark Anderson Prof. Mark Anderson of Engineering Physics gave a presentation on advanced power cycles using supercritical-co2, which have the potential to replace steam cycles in future thermal electricity generation and improve efficiency. Board Membership Update An online survey was sent to the full board to vote on renewing several board members terms and to approve Rep. Mike Kuglitsch as a new board member from the Wisconsin State Legislature. All members who were nominated for either renewal or as a new board member were approved. Rep. Robb Kahl will not be running for re-election and will serve on the board until his legislative term expires. Heather Leibham is leaving We Energies, and therefore will no longer serve on the board. She will discuss with Ronda Ferguson whether there will continue to be a board member from both We Energies and Wisconsin Public Service Corporation or a single board member representing both utilities now that they share a parent company. Cara Lee Mahany Braithwait made a recommendation for Mike Jacobs, Senior Energy Analyst at Union of Concerned Scientists as the consumer representative for the board. No action was taken. Upcoming Programs Energy Utility Basics September o EUB received an endorsement by NARUC through NARUC s Subcommittee on Education and Research. o There is also a cooperative sponsorship agreement with the Energy Bar Association, Midwest Chapter (EBA-MW) for WPUI s Energy Utility Basics and the EBA-MW s 2017 Midwest Chapter Annual Meeting. Each organization will send out messages publicizing each other s events. o There was a question about what discretion the director should be given to provide discounts on a limited number of seats. Jeff Ripp stated that Wisconsin-based members of WPUI should receive priority seating before other discounts are applied, and recommended determining whether NARUC s travel reimbursement funds could be accessed for out-of-state government participants. o It was recommended that the program committee develop parameters by which the director can offer a limited number of discounts. Trends Innovation in Electric Utility Rates August 16 o Agenda and speakers are set Trends in Customer Expectations September 7 o Cara Lee provided the agenda for this program and asked for recommendations for speakers, especially businesses and other

4 entities that are becoming prosumers. Board members made several suggestions that will be pursued further. EEI Advanced Rates School July EEI Transmission August 1-5 Elaboration of WPUI Programming In response to open records requests and an article that questioned the impartiality of WPUI programming, Cara Lee Mahany Braithwait provided the board with a draft statement elaborating the WPUI mission and programming choices. She requested the board members review the document and provide feedback following the meeting. Program Ideas for 2017 Board members were asked to brainstorm ideas for programs in Ideas from each board member included: Deb Erwin: o Connecting with activities of M-WERC technological development o Understanding technologies of the future that affect generation, transmission, distribution, and use Make it a public program? Sarah Justus: o Another multi-part series: How to proactively shape the future? Technology Policy Nexus between utilities (gas, water, electric) Rob Crain: o Building on Sarah s idea, what future will utilities operate in? An additional program could be, what economic incentives make sense? John Sumi: o Federal perspective implications of new administration o How utilities are communicating and sharing info with customers More info and control over energy usage How to educate and engage residential customers Nilaksh Kothari: o Would add distribution automation as part of a technology program o Will also ask MEUW board for suggestions o Interest in microgrids Brian Rude: o Grid security (terrorism, natural disasters) Could involve more external audiences legislators, law enforcement o Clean Power Plan o Spent fuel (revisit this issue) Jordan Hemaidan: o Fuel diversity (consequences or distortions in the market)

5 Lawrie Kobza: o How water utilities are interested in a lot of the same issues as electric utilities New consumer info (and rates) Stranded assets How to shape the future Custom rates for individuals Security Universal service Kira Loehr: o See if there any new ideas that come out of the upcoming customer trends program Rhonda Ferguson: o Also interested in residential customer trends o Behind-the-meter storage, e.g. as a safety issue for emergency responders Jeff Ripp: o Concern over natural gas overreliance what are the risks to the electric grid (part of fuel diversity issue) o More student involvement (bring more students into programs) Workforce planning issues for utilities/students o Executive education for membership: things that aren t covered by MEUW or WRWA? Narrower, specialized programs? Dave Siebert o Reiterated interest in the consumer/prosumer idea from Kira PJ Distefano: o Reserve a hot topic that can be put together quickly o Concerns over aging natural gas infrastructure o General: explains the compact that utilities have with state, customers, legislature Rep. Kuglitsch: o Storage what it will take to get to next level o Rate basics - most people don t know how rates are derived o MISO projected shortage of generation by 2017 (especially due to closures in IL, OH, MI) Does retail choice have a role in this? Are closures on hold because of CPP uncertainty? These ideas will be discussed in a future program committee meeting. Student Programming Scott Williams presented on the work that he has done with students at UW- Madison, including administering the Certificate in Engineering for Energy Sustainability, advising a team competing in the Collegiate Wind Competition, and overseeing the Wisconsin Energy and Sustainability Challenge. He is

6 seeking project ideas for a new capstone course as part of the certificate program. The meeting was adjourned at 4:00 p.m.

H I G H L I G H T S. Financial Strength: Strong Asset Base Strong Capital Structure. High Credit Quality

H I G H L I G H T S. Financial Strength: Strong Asset Base Strong Capital Structure. High Credit Quality FINANCIAL REPORT 2017 FIRST QUARTER D I S C L A I M E R All statements in this presentation other than historical facts are forward-looking statements that involve risks and uncertainties which are subject