The commission met Wednesday (8-26) at 7:30 AM. Attending were commissioners Chairman Lester Sitzes, Vice-Chairman LaDell Douglas, Jerry Pruden and Dennis Ramsey.
Previous minutes were read and approved. Financial statements were reviewed. Co-manager Jodi Perkins pointed out the current combined loss for the 3 profit centers was $1,075,637. Jodi indicated that this loss occurred due to the credit Hope Water & Light passed on to all the electric customers. This credit occurred because of a billing error by SWEPCO for 15 months ending in March of this year. The reduction in purchased power cost from SWEPCO was reported in June’s financial statements.
Perkins reported HWL had received a bill from the auditor for $35,000 which is $5,000 more than the bid that was accepted by Hope Water & Light for the audit of 2025. Commissioners discussed this discrepancy and instructed staff to pay the agreed upon $30,000.
When Cadence Bank merged with Huntington Bank, the company credit card was changed to a Huntington Bank credit card. Since this change, it has been determined users cannot be added to the existing list as employees change jobs. It was presented Diamond Bank has a corporate credit card HWL could apply for and individual personal guaranties are not required. After discussion, commissioners passed a motion to apply for Diamond Bank’s credit card to replace the current cards being used.
Co-General Manager Russell Cornelius next presented a Letter of Intent (LOI) for a potential LLC for Hempstead County. This LOI spells out that the company will purchase the property if the conditions for the project are favorable. The LOI gives the company time to do their due diligence on the property and for HWL to have the studies performed to determine if our electric system can handle the additional load. Russell explained the entity would construct a 40 MW data center. The LOI spells out that all costs related to this potential business would be passed on to this new business. No costs would be passed on to current customers for any costs whether they be studies or added infrastructure needed for this business. Cornelius pointed out the water they would need would be minimal as they have a looping system to cool the facility. SWEPCO has been contacted about additional power needed. SWEPCO is working on what their charge would be since the increased power requirement is more than the allowable annual increase in power allowed in our agreement with them. Again, it was stressed this is simply an agreement to study the viability of this potential business. After discussion, the commissioners passed a motion to authorize Chairman Sitzes to sign this LOI.
Cornelius and Perkins next gave general updates to various ongoing projects such as PrePay accounts, Fiber to the Home, Twin Creek Solar Project and the West Booster project to name a few.
The commission discussed the potential match needed for the $378,000 grant from the state. The match for the grant is 10%. Motion was made and seconded to pay this 10% needed. Motion carried.
The next meeting was scheduled for September 30th instead of the 23rd.
With no further business the meeting was adjourned.