NOTICE TO MEMBERS OF BEARTOOTH ELECTRIC
TWACS Digital Meter Replacement Project Loan
Securing a fifteen-year loan of $1,575,000 for funding of the TWACS Digital Meter Replacement Project was approved by the board at the February 27, 2018, regular board meeting.
2018 is the first year of a multi-year Work Plan. Financial thresholds have been established by the Board to maintain $500,000 in cash reserves and maintain a Debt Service Coverage Ratio (DSCR) of 1.25 throughout the period of the Work Plan 2018-2022. The Cooperative maintains a $2 million line of credit for extreme unforeseen emergencies with both CFC and CoBank.
The first digital meter is scheduled to be installed in Belfry, August 2018. TWACS related work on five substations will be completed during the Summer of 2018. The remaining five substations will be completed in Spring 2019. BEC will pursue a 15-year loan (approximately $1.575 million) to finance the installation of the TWACS project. The Board was presented and approved the final bid at their February 22, 2018, Special Board Meeting. Consequently, the 60 day notification period will begin in February.
During the 60 Day notification period, the discussion will take place regarding loan options, timelines, and details. The first payment to the vendor will take place upon delivery of the TWACS substation transformers in May; approximately $250,000.
BEC Bylaws require a 60-day notice to members of a long-term debt exceeding two years. To begin the required process of informing and hearing from members, this notification is posted on the BEC website. Also, the announcement will appear in the BEC member email, BEC billing statement, in BEC social media and the legal notices of the Carbon and Stillwater County newspapers and the Powell Tribune.
Opportunities for members to comment include board meetings on March 27 and April 24. Beartooth Electric Bylaws Article IV, Section 1, G: The Board shall provide at least 60-day notice to Members of proposals before the Board approves long-term debt exceeding two (2) years, or enters or amends power contracts exceeding two (2) years. During the notification period, Members shall be allowed to comment on such proposals, including, at the monthly Board Meeting immediately before the Board Meeting at which a vote on the proposal is scheduled, or at a specially scheduled Board Meeting for Member comments and discussion.
Submitted February 28, 2018