TMEPA Board Member Training - October 5, 2015 Update
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A municipal electric system manager spends years preparing to run a utility. The journey often involves obtaining a college degree, spending years moving up through positions at a utility, and keeping up on the latest developments. The years of hard work and learning about an electric system come together when he gets the top job of running an electric system. Just one catch: He reports to a board or city council with no knowledge of how an electric utility works — except when a switch is flipped the lights come on. How does he quickly get the board or city council up to speed and take advantage of their enthusiasm to help the municipal electric system? The answer is TMEPA’s board member training.
On a yearly basis, TMEPA offers to its systems a one-day course to educate system board members about electric utilities, the role of a power board, and the issues they are likely to face. This year’s board training was held Oct. 5. The training was so popular, it outgrew the TMEPA training room and was held at the Hilton Brentwood/Nashville Suites. Board members, along with their managers from systems across Tennessee, attended the training. Presenters lined up to give what Union City’s Jerry Bailey said was "very pertinent information my new board member needed to hear and better understand from someone other than me."
Steve Sax, manager at Murfreesboro Electric Department, started the day off with an overview of where electricity comes from and how it gets to a residential customer. Steve showed attendees the basic infrastructure of an electric utility. Many in the electric utility industry take their knowledge of how that happens for granted, but board members must quickly grasp these basics so they can conduct their board’s work competently and intelligently.
With a working knowledge of how electricity is generated, transmitted and distributed, it was time to get into the laws and regulations that govern municipal electric systems. Nathan Ridley, an attorney with the Nashville law firm of Bradley Arant Boult Cummings, walked attendees through the Municipal Plant Act and other statutes that govern municipal electric systems. He discussed the authority state law grants a board and the manager, and how those responsibilities differ. Like several of the day’s presenters, he advocated for board members to set the policy for a utility and allow the manager to run the day-to-day of the utility. This highlights one of the many advantages of the board training: setting the expectations for what is expected of a board member and showing best practices of a utility board.
To discuss TVA’s role with a system, TMEPA drew upon the experience and vast knowledge of Walter Haynes of Power Consultant Associates. Walter walked attendees through the history of TVA, TVA’s evolving generation portfolio, its role as regulator through the power contract, and issues facing TVA and its LPCs. He presented information on rates in layman’s terms, which helped attendees understand the concepts. Just as staff at an electric system must know the role of TVA, it is important for board members to know what TVA does and how it governs its LPCs.
To further grasp the financial aspect of a municipal electric system, Dennis Dycus, a former long-time member of the comptroller office, gave the nitty gritty on what the state allows financially and what it doesn’t. Dennis’ no-nonsense presentation gave a black and white summary of what a municipal electric system can and can’t do. State law (and auditors) can slow down or stop bad ideas, and board members were given a clear presentation on how this can happen.
An emerging issue in the municipal electric industry is smart grid infrastructure and telecommunications, so TMEPA scheduled Mark Smith of Miller Martin to go over this evolving part of the industry. Due to travel delays, Jeremy Elrod of TMEPA gave Mark’s presentation. Attendees learned about the growing need for smart grid technologies, what state law allows and requires for a municipal electric system to offer telecommunication services, and the authority of a power board to enter into an employment contract with a system manager. Many systems are facing whether to offer broadband services to their community, and a working knowledge of what state law allows is a good way to set the tone for discussions as power board and city councils deliberate on how to move forward.
The last speaker discussed one of the most difficult topics for a person who is serving on a government board or council to grasp: nearly all meetings are open and nearly all documents are public. Ann Butterworth of the comptroller’s office of Open Records Counsel, discussed Tennessee’s open meetings and public records statutes, including how a government entity should navigate the different issues that may arise. Perhaps the best part for attendees was the lengthy question and answer portion that gave attendees an opportunity to get information on what is facing their individual board or council.
On a yearly basis, TMEPA offers to its systems a one-day course to educate system board members about electric utilities, the role of a power board, and the issues they are likely to face. This year’s board training was held Oct. 5. The training was so popular, it outgrew the TMEPA training room and was held at the Hilton Brentwood/Nashville Suites. Board members, along with their managers from systems across Tennessee, attended the training. Presenters lined up to give what Union City’s Jerry Bailey said was "very pertinent information my new board member needed to hear and better understand from someone other than me."
Steve Sax, manager at Murfreesboro Electric Department, started the day off with an overview of where electricity comes from and how it gets to a residential customer. Steve showed attendees the basic infrastructure of an electric utility. Many in the electric utility industry take their knowledge of how that happens for granted, but board members must quickly grasp these basics so they can conduct their board’s work competently and intelligently.
With a working knowledge of how electricity is generated, transmitted and distributed, it was time to get into the laws and regulations that govern municipal electric systems. Nathan Ridley, an attorney with the Nashville law firm of Bradley Arant Boult Cummings, walked attendees through the Municipal Plant Act and other statutes that govern municipal electric systems. He discussed the authority state law grants a board and the manager, and how those responsibilities differ. Like several of the day’s presenters, he advocated for board members to set the policy for a utility and allow the manager to run the day-to-day of the utility. This highlights one of the many advantages of the board training: setting the expectations for what is expected of a board member and showing best practices of a utility board.
To discuss TVA’s role with a system, TMEPA drew upon the experience and vast knowledge of Walter Haynes of Power Consultant Associates. Walter walked attendees through the history of TVA, TVA’s evolving generation portfolio, its role as regulator through the power contract, and issues facing TVA and its LPCs. He presented information on rates in layman’s terms, which helped attendees understand the concepts. Just as staff at an electric system must know the role of TVA, it is important for board members to know what TVA does and how it governs its LPCs.
To further grasp the financial aspect of a municipal electric system, Dennis Dycus, a former long-time member of the comptroller office, gave the nitty gritty on what the state allows financially and what it doesn’t. Dennis’ no-nonsense presentation gave a black and white summary of what a municipal electric system can and can’t do. State law (and auditors) can slow down or stop bad ideas, and board members were given a clear presentation on how this can happen.
An emerging issue in the municipal electric industry is smart grid infrastructure and telecommunications, so TMEPA scheduled Mark Smith of Miller Martin to go over this evolving part of the industry. Due to travel delays, Jeremy Elrod of TMEPA gave Mark’s presentation. Attendees learned about the growing need for smart grid technologies, what state law allows and requires for a municipal electric system to offer telecommunication services, and the authority of a power board to enter into an employment contract with a system manager. Many systems are facing whether to offer broadband services to their community, and a working knowledge of what state law allows is a good way to set the tone for discussions as power board and city councils deliberate on how to move forward.
The last speaker discussed one of the most difficult topics for a person who is serving on a government board or council to grasp: nearly all meetings are open and nearly all documents are public. Ann Butterworth of the comptroller’s office of Open Records Counsel, discussed Tennessee’s open meetings and public records statutes, including how a government entity should navigate the different issues that may arise. Perhaps the best part for attendees was the lengthy question and answer portion that gave attendees an opportunity to get information on what is facing their individual board or council.
Several managers attended the training to see what their board members were presented and gave the training positive reviews:
"The TMEPA board training is a valuable resource for new board members and a great refresher for existing board members. This year's program touched on all the relative topics that are important to a board member. It was a day well spent. If you haven't sent any board members to the training in the past, I would encourage you to take advantage of the great program TMEPA has put together." - Brian Taylor,general manager at Clarksville Department of Electricity
"Our board thoroughly enjoyed the day of training! We had one newer board member who was hungry to learn more of the ends and outs of being a power board member, and the training was perfect! The day was cram-packed with vital information that directly applied to power board members! Great speakers and great topics for any public utility board." – Mark Kimbell, Gallatin Electric Department
Next year’s TMEPA board training will be held as breakout sessions at TMEPA’s 50th Anniversary Annual Meeting in July 2016. This presents a unique opportunity for board members to attend the annual meeting while also getting the information they need to run a municipal electric system. Mark your calendars now for the 50th Anniversary and board member training - July 13-15, 2016.
