MANX ELECTRICITY AUTHORITY BOARD MEETING 30 MARCH 2000 _ M Proffitt 1 CONFIDENTIAL AGENDA MEETING OF THE MANX ELECTRICITY AUTHORITY TO BE HELD ON THURSDAY 30 MARCH 2000 AT 9.30AM IN THE BOARDROOM AT BALLACOTTIER 1 TO CONFIRM the Minutes of the Meetings held on 24 and 29 February 2000 (copies enclosed). 2 TO CONSIDER matters arising from the Meetings held on 24 and 29 February 2000 not featuring on the Agenda. 3 TO NOTE the Chief Executive's Monthly Report (Paper No MEA 00/11 enclosed). 4 TO NOTE the Divisional Monthly Reports (Paper No MEA 00/12 enclosed). 5 TO NOTE the Management Accounts for ten months ended 29 February 2000 (Paper No MEA 00/13 enclosed). 6 TO RECEIVE a Proposal for the Purchase and Installation of Additional Protection Equipment for the IoM Interconnector by Ashton Lewis, Capital Investment Manager (Paper No MEA 00/14 enclosed). 7 TO NOTE a Paper on Thermal Efficiency by Jim Crombie, Generation Manager (Paper No MEA 00/15 enclosed). 8 Any Other Business. 9 TO CONFIRM the date of next meeting as Thursday 27 April 2000. ▪ C) Ct 0 'Cr CI C) 0 CI c) M Cn CA r t-- 04 CD Cr) CO r r 0 ct CO O C) ti LO 0) 0) r LO ti NU ti Ci ai ci CO oi ui Lo -a- CO 01 01 0) 0) 0 CO CD Nr U7 r-- 04 N T 1.0 CD M" UNITS USED PER AN (1) CD CD a) a) a) cp u) U) CO CO U) . 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't "3 re x E , E x II = = -6 co = c (0 o as IF., ra as as 0 as NAME E ceCLci)200.(3322 c)c)oacloocooc) Y c)c)ooctoc000c IR 01 0, 01 01 00 00 01 01 01 01 01 C3 CI CD CD CD C) CD C3 CO CD CD N M N N 04 NI- Cr) 04 04 CA N 04 04 N N N 04 Cs1 04 04 ENQU MINUTES OF A MEETING OF THE MANX ELECTRICITY AUTHORITY HELD AT 9.30AM ON THURSDAY 24 FEBRUARY 2000, IN THE BOARDROOM, BALLACOTTIER, BRADDAN Present: Chairman Mr W J McCallion Chief Executive Mr M J Proffitt Mr T Ferrer Apologies: Deputy Chairman Mr T D Mackay In attendance: H R Manager Mr M A Honour 12/00 Minutes The Minutes of the meeting held on 27 January 2000, having been previously circulated to members, were taken as read, confirmed as a correct record and signed by the Chairman. 13/00 Matters Arising a Minute 46/99 (a) - MCCL Fibre Optic Cable IT WAS NOTED that following a meeting comprising Directors of the Manx Cable Company, representatives of the DTI and lawyers for the respective parties, the lease for the fibre optic cable has been agreed in business terms. The necessary documentation is currently being drafted and will be completed in due course. The concept that the DTI pay a single lease payment of £5.9 Million is still under review. IT WAS FURTHER NOTED that MCC financiers have advised that the market is strong enough to finance the overall interconnector project in the sum of £45 Million. Discussions around this are ongoing. b Minute 70/99 - National Wind Power IT WAS NOTED that a wind generator had been developed which operates silently by means of blade design and removal of gearbox equipment. Hundreds have been erected in Germany and one is being tested at a site in the UK. c Minute 76/99 (f) - Gas Connection IT WAS NOTED that the DTI have asked the Chief Executive to progress discussions with Burlington Resources Limited on the basis of supplying the Island with Natural Gas. A meeting is to be held, with Mr Steve McGough of Burlington Resources during his visit to the Island to discuss the issue. d Minute 08/00 - John Bowles, Executive Communications IT WAS AGREED that following consideration of the services offered by John Bowles, it had been decided, in conjunction with a proposed organisational restructure, to develop an in-house public relations facility which would provide regular Board Pack briefings of press material and other external items related to the MEA. A paper outlining the specific proposals will be submitted for consideration in due course. e Minute 10/00 (a) - Tour of Power Station IT WAS NOTED that the Chief Executive had received a positive response from the staff based in Generation, particularly Peel, following a recent tour of the sites with Jim Crombie. Mr Crombie has been asked to make arrangements to install a lift at Pulrose on the basis that it will assist staff to operate and communicate within the building. IT WAS FURTHER NOTED that the appearance of the Ramsey Station site has much improved following the implementation of the recent general housekeeping exercise. f Appointment of Board Member IT WAS AGREED that in view of Mr Mackay's absence to defer the submission of nominees for a 5 th Board Member. g Tariff Proposals 2000-2001 IT WAS NOTED that a letter of thanks from Mr R Briercliffe, Treasury had been received, in respect of the decision to maintain the 2.5% prompt settlement discount to customers. v.. h UndergroundinE at St Johns/Tynwald Hill r \ xi IT WAS NOTED that Mr T A Bawden, Tynwald Select Committee had \.../ been advised that the Board had agreed to underground overhead lines at St Johns on the basis that the work would be completed prior to the Tynwald Ceremony in July 2000. Mr Bawden has since indicated the Select Committee's grateful thanks for this decision. A copy of the MEA's letter to the Committee is to be sent to Mr K B Bawden, Chief Executive, DTI. i Meter Reading IT WAS NOTED that Norweb had successfully installed telephone modems in customers premises in order to facilitate the reading of meters remotely. IT WAS AGREED therefore to determine equipment availability and also to identify suitable properties for installation. IT WAS FURTHER AGREED that the Chief Financial Officer should, as soon as possible, discuss the initiative with the meter readers in order to gain their support with future proposals. I Internal Audit IT WAS NOTED that, a positive meeting had been held between Mr Paul Dewar and Auditors, KPMG and they had agreed to provide assistance to him with the design of internal audit policies and procedures. k Phase 5 IT WAS NOTED that Mr Malcolm Gibson had attended a critical testing exercise by the manufacturers of a jointed section of the subsea cable and confirmed his satisfaction with the results. IT WAS AGREED to establish whether a sample joint had actually been tested to destruction. IT WAS NOTED that a method statement, in respect of procedures for laying the jointed sections of the fibre optic cable has been reviewed by Ashton Lewis and the Chief Executive and does not raise any concerns for the project. 1 Security at Ballacottier Business Park IT WAS NOTED that a reply from Dandara had been received advising that it was not their intention to provide an independent security guard for the Business Park. IT WAS AGREED therefore to investigate the possibility of establishing a means of additional night security for the headquarters and stores buildings. IT WAS FURTHER AGREED to issue a reminder to staff of the need to ensure security of confidential documents and computer access after normal working hours. 14/00 Divisional Monthly Reports - January 2000 The contents of Paper No MEA 00/06 were noted. a) Generation IT WAS AGREED to prepare a Paper outlining the alternatives for improving generating plant fuel efficiency. b) Distribution IT WAS AGREED to place an order with ABB for the purchase of additional transformers for Pulrose at a total cost of £.1.6M on the basis that they had offered attractive discount terms for part-payment in advance of the delivery of the equipment. c) Human Resources IT WAS AGREED that a review of the Current Affairs Publication will be undertaken in conjunction with the introduction of an in-house Public Relations facility.