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HomeMy WebLinkAboutENERGY BOARD - MINUTES - 03/14/2024 ENERGY BOARD March 14, 2024 – 5:30 pm 222 Laporte Ave – Colorado Room ROLL CALL Board Members Present: Bill Althouse, Marge Moore (remote), Alan Braslau, Stephen Tenbrink, Thomas Loran, Jeremy Giovando Board Members Absent: Brian Smith, Bill Becker OTHERS PRESENT Staff Members Present: Christie Fredrickson, Phillip Amaya, Michael Authier, Jim Spaulding, Cyril Vidergar (remote), Phil Ladd (remote), Leland Keller (remote) Members of the Public: Wendell Stainsby MEETING CALLED TO ORDER Chairperson Tenbrink called the meeting to order at 5:30 pm. ANNOUNCEMENTS & AGENDA CHANGES None. PUBLIC COMMENT Wendell Stainsby introduced himself, he will be starting with the Energy Board next month. APPROVAL OF MINUTES In preparation for the meeting, board members submitted amendments via email for the February 8, 2024, minutes. The minutes were approved as amended. STAFF REPORTS Energy Services Operational Updates Michael Authier, Mechanical Engineer III Mr. Authier said Our Climate Future (OCF) is Energy Services’ guiding policy; a number of goals within OCF specifically relate to Energy Services including electricity and gas usage, renewable electricity, reliability, etc. In 2023 community electricity consumption was down compared to last year, and levels were the lowest they’ve been since 2014. Vice Chairperson Loran asked if staff has been able to correlate that data with how much solar has been deployed in the community. Mr. Authier said he will be touching on local solar later in his presentation. Mr. Authier also displayed a graphic which charts avoided electricity savings from the Utility’s savings programs. The data shows 2023 retail consumption would have been 27% higher without those programs and puts the City on track for 2030. In 2023, local renewable generation was 3.2% of community consumption, which is also on track for 2030. Chairperson Loral asked how staff measures local renewable generation capacity without having visibility behind the meter. Mr. Authier explained the utility uses nameplate capacity (aka installed ENERGY BOARD REGULAR MEETING capacity) for kilowatts, and for megawatt hours staff uses a program called PowerClerk, which has all system details and provides an estimate. In 2023 the Utility saw 547 new solar installations, as well as 25 new battery installations. The Utility also began an equipment refresh with 2200 water heater communication units and 200 Sensi thermostats. 73 new vehicles enrolled in the Smart Charging Electric Vehicle Pilot. Finally, 27 new grid interactive water heaters were installed, bringing the program total up to 108. Board member Braslau asked if the City has considered installing batteries at substations where the community could buy into it, similar to a community solar program? Mr. Amaya said no, that has not been considered, but that’s an interesting idea. Vice Chairperson Loran said could the battery incentive be changed so that those batteries which are compliant with IEE 2030.5 could be incentivized, and those which are not compliant would not be eligible. Mr. Authier said that is not necessarily within his knowledge bank but thought it may be worth looking into. Light & Power Debt Issuance Utilization: Distribution Transformer Purchase Jim Spaulding, Standards Engineering Lead Mr. Spaulding explained the Utility has a need to purchase a significant number of transformers to replenish the Utility’s inventory. Light & Power was awarded a $40 million bond to help with those purchases (among other needs). The Utility’s “bread and butter” transformer unit is a 50kVA submersible unit. Due to supply chain issues (mostly with the copper and steel components of the units), there was a 32% increase in pricing just between April 2021 and August 2021. Mr. Spaulding noted that he was provided roughly $1 million to use toward transformer orders, and he spent the entire budget on only 80 units of the 50kVAs—typically the Utility needs over 100 to keep things moving efficiently. The 2024 budget includes $2 million for transformer orders, and in order to bring inventory levels up to a safe place, staff will need to utilize that entire budget, plus an additional $6 million from the bond money. This will ensure that the units can deliver within the current estimated two-year lead time while staff dwindles the existing backstock of transformers. Mr. Amaya added that staff is trying to work through the pressures now; taking the pricing and lead times are as they are today, with the cash the Utility has on hand today, so that hopefully the Utility is not purchasing transformers at an even higher price in the future (as they are expected to continue increasing). At the end of 2023, the Utility had 29 units in stock and are expecting an order of 80 in May of 2024. Staff is getting creative to help expedite orders in progress, such as an issue with the handles that could have delayed the order. The 50kVA handles were delayed, but they are the same as the 25kVA units. Staff is going to remove the handles from the 25kVA units and install them on the incoming 50kVA units, and then the manufacturer will ship the handles separately when they are available. EPIC LOAN CAPITAL BLENDING STATUS Glenn Pease, Mechanical Engineer II The Epic Homes program started with a goal to make our community a better place to live, while helping ENERGY BOARD REGULAR MEETING reduce our environmental impact. Epic Loans is a part of the Epic Homes portfolio of resources and helps customers with the upfront cost to complete larger and more comprehensive projects than they may have without loans. This program centers community with an integrated approach to local partnerships and centers equity by increasing focus on rental properties. This program aligns with Our Climate Future under Big Move 6: Efficient Emissions Free Buildings. Epic Homes On-Bill Loans offers competitive rates with no money down and to-date the program has processed 536 loans, issuing $9 million. There is currently $5.6 million outstanding with zero defaults. Board member Althouse asked what the interest rate is now. Mr. Pease said it is between 5.5% (on a five-year term) and 5.95% (on a 15-year term). The average customer with good credit may save over $600 dollars over the life of the loan. The portfolio risk is very low because it is tied to the customer’s utility bill and the program hasn’t had a single default in its 10-year history. Landlords can also take out loans, staff will set up a separate utility bill for that premise specifically associated to the project and loan terms. This helps reduce maintenance costs on the property. Mr. Pease explained the high-level mechanics of the loans program. The loans start with the customer having a work agreement with a contractor, then they submit their application to our CDFI (Community Development Financial Institution). The CDFI administers the loan applications with the customer and pays the contractors the amounts they charge for their work, then the Utility pays the CDFI the loaned amount as well as the processing fees for CFDI’s work. The loan payments are collected by Fort Collins Utilities Billing Department and are included in each monthly utility bill, and those funds are used to pay the Utility’s Capital Partners. There is a blended fund for loans where grants, public capital (such as loans from our State Energy Office), and private banks create the fund. Private banks are key to scale participation, otherwise the Utility would run out of funds. Board member Althouse asked if the loan can cover solar, batteries, etc. Mr. Pease said yes, the maximum loan limits were increased from $25,000 to $50,000 and the program saw a significant boost in solar installation projects. Board member Moore said she participated in the loan program many years ago and back then limit was $15,000. Staff will be asking City Council to support renewing the capital agreement bank terms, as well as an increase on the 15-year bank loan limits (currently at $1.5 million), because the 15-year loans have been more popular. CLEAN ENERGY TO COMMUNITIES PROGRAM Michael Authier, Mechanical Engineer III Chairperson Tenbrink said a former Board member reached out to him and asked if the City or City Council would be participating in in the DOE Clean Energy to Communities Program (C2C), so he asked staff to bring some additional info to the Board. C2C connects local governments, electric utilities, community-based groups, and others with experts from across the U.S. Department of Energy's (DOE) national laboratory complex and their customized, cutting- edge analysis. It’s an ongoing program, but there may be grant opportunities within the program. The City has utilized the program in three different areas Peer Learning Cohort #1, “Accelerating the Deployment of Equitable and Grid-Friendly EV Charging Infrastructure,” which shared information related ENERGY BOARD REGULAR MEETING to EV incorporation into DERMs, enrollment and incentive best practices, as well as technical support and best practices shared across several national peers. Peer Learning Cohort #2, “Integrating Community Priorities into Electric Vehicle Plans and Projects,” is a continuation (of sorts) from the first cohort, but less focused on technical solutions and more on developing an equitable and community-driven approach to transportation electrification. The collaboration with the DOE Building Technology Office Study, “Managing changes in peak demand from building and transportation electrification with energy efficiency,” is still in progress but staff is planning to present those findings at a future Energy Board meeting. BOARD MEMBER REPORTS Vice Chairperson Loran’s heat pump project has had five points of failure. His biggest concern is the amount of electricity the system used, especially on very cold days. Anecdotally, his energy usage has increased three-fold since he electrified his home and lifestyle, he is concerned the community and infrastructure is prepared for usage to triple. Board member Braslau said he has100-amp service and uses a pellet stove when it is very cold and uses almost no natural gas--there are other solutions. Board members discussed a recent Code of Conduct violation that is currently being investigated by the City’s Equity Office. Staff advised more would be shared once the investigation is complete. Board member Althouse let the Board know that he was not appointed for another term on the Energy Board. He thanked everyone for the time over the last year. His mission is and will continue to be to work toward lower rates for everyone. FUTURE AGENDA REVIEW In April, the Board will spend time orienting the Board’s four new members and resetting for the new term- year. ADJOURNMENT The Energy Board adjourned at 8:03 pm.