Chief Operating Officer

ELECTRICITIES of NORTH CAROLINA
CHIEF OPERATING OFFICER

Electri Cities of North Carolina, Inc., is a membership organization that provides power supply and related critical services to over 90 community-owned electric systems in North Carolina, South Carolina, and Virginia. Electri Cities manages a trade association (non-agency) along with two power agencies:
North Carolina Municipal Power Agency Number 1 (Agency
1) and North Carolina Eastern Municipal Power Agency (Eastern Agency). Eastern Agency members receive power supply from a full-requirements contract with Duke Energy Progress. Agency 1 members are primarily served by nuclear energy that comes from the Catawba Nuclear Station. Electri Cities also assists members in operating their electric distribution systems and delivers other innovative services including legislative, technical, communications, and economic development expertise.

Electri Cities is governed by a 16-member Board of Directors. Board members are elected by the Boards of Commissioners of the two Power Agencies and the non-Agency Board. Electri Cities employs approximately 175 people which includes electric distribution Lineworkers in four Member communities in Huntersville, Cornelius, Pineville and Lexington.

The Eastern Agency has 32 members serving 284,000 customers with a peak demand of 1,600 MW. The annual operating budget is $570 million and long-term debt is $48.8 million. Standard & Poor’s and Fitch rate the Eastern Agency A- (stable) and A (stable) respectively. In 2015, the Eastern Agency entered into a full-requirements power supply agreement with Duke Energy Progress that expires in 2045.

Agency 1 has 19 all-requirements members serving over 173,000 customers with an 1,100 MW peak load. Agency 1’s main asset is 840 MW from the Catawba Nuclear Station (92% carbon-free) with an operating license that expires in 2042 and is likely to be extended through 2062. Other resources in Agency 1’s portfolio include 335 MW of contractual natural gas generation, 206 MW of member-owned diesel generation, 24 MW of Agency-owned natural gas turbines, and 60 MW of SEPA hydroelectric allocations.

Agency 1’s annual budget is $550 million, capital assets total approximately $1.24 billion, and long-term debt is approximately $529 million. Standard & Poor’s and Fitch rate Agency 1 A (stable), Moody’s rating is A2 (stable).

Electri Cities and both Power Agencies anticipate significant power supply analysis and contract negotiations over the next three to five years. The COO is expected to play a key role in those activities. Electri Cities and both Power Agencies are addressing the following opportunities and challenges:
Duke Energy filed a Carbon Plan to comply with North Carolina Legislation that promises to reduce carbon emissions from generation by at least 50% by 2030; close all coal-fired power plants by 2035; and achieve net-zero carbon emissions from electricity generation by 2050. Analysis of these changes, along with evaluation of other available power supply resources, are imperative to Eastern Agency Members.

Duke Energy is consolidating Duke Energy Carolinas and Duke Energy Progress retail rates and system operations functions which will have an impact on Eastern Agency and Agency 1. As a result of its support of the Duke merger, Electri Cities gained access to Duke’s future gas turbine and transmission development projects. Analysis of investment in these assets, along with other resource development options, are ongoing.

Agency 1’s Catawba Project Agreement expires in 2032 and interrelated power supply contracts with Members expire in 2028. Agency 1 expects to complete negotiating extensions to these contracts out to at least 2042 by mid-2026. Once complete, Agency 1 will develop and execute a strategy to meet Member supplemental power supply needs, estimated at 400 MW to 500 MW.

Electri Cities focuses on its own internal needs, as well as Member needs, as they relate to attracting, retaining and developing a skilled workforce; succession planning; meeting changing customer expectations; adoption and…