The GUC Board of Commissioners held its regular monthly meetings on December 17, 2015 and January 21, 2016. Here are the highlights of those meetings:

December:

Southside Pump Station Capital Budget Amendment. GUC's largest wastewater pumping station, Southside, was placed into service in 1962, with the most recent improvements taking place in 1999. The station is in need of upgrading, and a project budget was approved earlier in 2015. However, all construction bids came in higher than was budgeted. In order to move forward with the project, it is necessary to amend the budget. The Board unanimously voted to amend the capital project budget from $3,450,000 to $6,600,000.

Load Management Update. The Duke Energy Progress (DEP) monthly peak occurred on November 24, 2015, for the hour ending at 8:00 a.m.  GUC's load management system was in full operation during this period.  As a result, the estimated avoided demand costs amount to $1,093,186.

January:

Resolution for Issuance of Revenue and Refunding Bonds. In order to provide funding for projects associated with the capital improvement plan, GUC needs to move forward with the issuance of up to $43,500,000 in revenue bonds.  If market conditions are favorable, GUC will also refinance existing bonds of up to $30,000,000 to obtain lower interest rates and savings for customers. The use of revenue bonds is a financing tool, and GUC pledges revenue to cover the projects that are in the budget and in the five year plan. By refinancing at a lower interest rate with the same terms, there would be a net savings of over $2 million, which is about $100,000 per year for 11 years. The Board unanimously voted to adopt the resolution.

Southside Pump Station Engineering Services. See description of project above in December 2015 Board Notes. The Board unanimously voted to amend the engineering contract with Black & Veatch and to adopt the resolution of tentative construction contract award with RTD Construction.

Load Management Update. The Duke Energy Progress (DEP) monthly peak occurred on December 20, 2015, for the hour ending at 9:00 a.m.  GUC's load management system was in full operation during this period.  As a result, the estimated avoided demand costs amount to $968,339.