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Council hears urgent warning: substation insurance lapsed; one‑year premium cited at $1.41 million
Summary
Members were told insurance on electric substations lapsed in 2022 and that a one‑year premium to re‑insure equipment would be $1,414,676; staff described the risk of being uninsured and said immediate payment would be required if the board approved reinstatement.
A council member warned the Okolona governing board on Sept. 2 that insurance coverage for the city’s electric substations lapsed in 2022 and that replacing coverage could be costly.
“One year on all of our substations is $1,414,676 dollars,” a council member said, flagging the fiscal exposure and the operational risk if a storm or other event damaged uninsured equipment. The speaker said the absence of insurance has left the city exposed and that, should the board approve, staff could initiate a phone call and payment to reinstate coverage.
Board members asked when the policy lapsed and what immediate steps were required to secure coverage; staff said they would act promptly upon board direction and that a check could be issued once the board approved payment. The transcript records the premium amount and the lapse date (presented as 2022) but does not include a line‑by‑line authorization or roll‑call vote for payment in the captured segments.
Next steps: staff advised that, if approved, they would call the insurer and arrange payment to reinstate coverage; the board discussed urgency given the risk to infrastructure.
