General Manager Henderson Municipal Power & …

1 PO Box 1310 Conifer, Colorado 80433 800-525-9082 303-607-5372 General Manager Henderson Municipal Power & Light (HMP&L) Henderson , Kentucky Henderson Municipal Power & Light (HMPL) Henderson Municipal Power & Light (HMP&L) dates back to the turn of the 20th century. Henderson , Kentucky, was the first city in Western Kentucky to own its Power generation. The first streetlights in Henderson were lit in 1896. The City of Henderson owns HMP&L. The utility, however, by state statute, operates under an autonomous Commission. The General Manager (GM) reports to the five-member Utility Commission whose members are appointed by the Mayor with the approval of the City Board of Commissioners.

2 The members of the Utility Commission are appointed to staggered, three year terms and the number of terms is unlimited. The current tenures of members of the Board range from a little over two years to almost nine years. The Utility Commission is responsible for operations, establishes policies, approves an annual budget and all contracts, administrative and personnel policies, and Power plant and distribution system enhancements. Utility rates are established by the Utility Commission, subject to approval of the City Board of Commissioners. Bond issues for long-term financing are adopted and approved by the City Commission.

3 The Utility Commission provides electricity and internet communication services for residential, commercial, and industrial customers within the incorporated area of the City of Henderson . The Commission also provides electricity and internet communication services to customers in a few areas outside the corporate limits. HMP&L generates approximately $ million in annual revenue, about $ million from retail electric sales, million in communications revenue, and approximately $300,000 from other sources. HMP&L provides electric service to approximately 12,000 electric customers and has 300 internet customers.

4 HMP&L owns a generation plant, Henderson Station Two, comprised of two name plate rated 175 MW coal-fired units that were placed in service in the early 1970s. The plant is operated for HMP&L by Big Rivers Electric Corporation. In 1995, Scrubbers were added to the plant, and in 2004 SCR Systems on both units became operational. Station Two is located approximately fifteen miles south of Henderson . Currently, HMP&L reserves 115 MW of Station Two s net rated capacity which is 312 MW and the surplus 197 MW capacity of Station Two is allotted to Big Rivers.

5 Big Rivers has the contractual obligation to pay for any capacity allocated to it by HMP&L. HMP&L also has contractual rights to a small amount of hydroelectric Power from the Southeastern Power Administration (SEPA). Henderson Municipal Power & Light Page 2 HMP&L employs 38 personnel and the current organizational structure includes Power Production, Finance, General Administration, Human Resources, Transmission & Distribution, and Communications. HMP&L makes annual payments to the City from its surplus revenues after providing for the operation and maintenance of its generation and distribution facilities, payment of its General administrative costs, and establishment of reasonable reserves for its electric system.

6 HMP&L also provides electricity to the City at no cost and Communications services at reduced cost. HMP&L s net plant asset is $ million and Long Term Debt is comprised of Revenue Bonds totaling $12,660,000. The bonds are rated A3 by Moodys. HMP&L operates 58 miles of 161 kV and 69 kV transmission facilities, nearly 150 miles of primary distribution facilities, and the primary distribution voltage is kV. HMP&L also has nearly 160 miles of fiber optic facilities. More information is available at General Manager The duties and responsibilities of HMP&L s General Manager are described in detail on the attached Job Description.

7 Functioning as the chief executive of the utility, the General Manager reports to the Utility Commission and manages HMP&L including its personnel. The retiring General Manager spends over 50% of his time on issues related to Power supply and the relationship with the Station Two Operator and the remaining time on issues related to transmission, distribution, and customer relations. Requirements The requirements for General Manager are also described in the attached Job Description. More fully, the ideal candidate will have a Bachelor s or advanced degree in Accounting, Business, Economics, Engineering, Law, or other applicable disciplines, combined with executive experience in the electric industry.

8 A Master s Degree would be desirable. Executive experience ideally will include utility executive management of Power supply, transmission, distribution, marketing, customer service, finance, rates, and administration, preferably with a public Power entity. Power supply experience ideally will include oversight of resource option analysis and contract negotiations and administration. Candidates must also be accomplished negotiators with proven success in negotiating and administering Power sale and purchase Power contracts, Power plant operations, maintenance contracts, fuel contracts, etc.

9 Legal experience including contract negotiation and litigation is desirable. Executive experience should also include regular formal presentations and interfaces with the public, media, and governing boards such as Utility or City Commissions and a demonstrated track record of keeping governing boards well informed. Henderson Municipal Power & Light Page 3 General management experience ideally will include directing organizations with 35+ employees including managers, supervisors, professionals, first-line staff, and external consultants.

10 Candidates should also have a demonstrated track record of success in economic development and civic affairs. Candidates must possess exemplary interpersonal skills that include professional, polished, and charismatic oral and written communication talents. A candidate must have an ability to convey complex technical and industry issues to lay people, and make a positive impression when addressing public groups and representing HMP&L. Candidates should be consensus builders, mentors, coaches, and team players. Proven success in building credibility with utility rank and file employees and management along with legislators, regulators, customers, and the public is essential.