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Home My WebLink About7/11/2024 - ENERGY BOARD - AGENDA - REGULAR MEETING ENERGY BOARD REGULAR MEETING July 11, 2024 – 5:30 pm 222 Laporte Ave – Colorado Room Zoom – See Link Below 1. [5:30] CALL MEETING TO ORDER 2. [5:30] PUBLIC COMMENT 3. [5:35] APPROVAL OF JUNE 13, 2024 MINUTES 4. [5:45] BUILDING PERFORMACE STANDARDS UPDATE (Decision, 45 Min.) Katherine Bailey, Project Manager 5. [6:30] HOW DOES PLATTE RIVER’S INTEGRATED RESOURCES PLAN AFFECT THE CITY’S CLIMATE GOALS (Discussion, 60 Min.) Michael Authier, Mechanical Engineer III 6. [7:30] REFINE QUESTIONS ABOUT PLATTE RIVER’S IRP (Discussion, 30 Min.) 7. [8:00] BOARD MEMBER REPORTS (5 min.) 8. [8:05] FUTURE AGENDA REVIEW (5 min.) 9. [8:10] ADJOURNMENT Participation for this Energy Board Meeting will be in person in the Colorado Room at 222 Laporte Ave. You may also join online via Zoom, using this link: https://fcgov.zoom.us/j/96707441862 Online Public Participation: The meeting will be available to join beginning at 5:15 pm, July 11, 2024. Participants should try to sign in prior to the 5:30 pm meeting start time, if possible. For public comments, the Chair will ask participants to click the “Raise Hand” button to indicate you would like to speak at that time. Staff will moderate the Zoom session to ensure all participants have an opportunity to address the Board or Commission. To participate: • Use a laptop, computer, or internet-enabled smartphone. (Using earphones with a microphone will greatly improve your audio). • You need to have access to the internet. • Keep yourself on muted status. ENERGY BOARD June 13, 2024 – 5:30 pm 222 Laporte Ave – Colorado Room ROLL CALL Board Members Present: Marge Moore (remote), Alan Braslau, Thomas Loran, Jeremy Giovando, Erick Shenk (remote), Frederick Wegert, Wendell Stainsby, Scott Canonico (remote) Board Members Absent: OTHERS PRESENT Staff Members Present: Christie Fredrickson, Brian Tholl, Michael Authier, Coy Althoff, Cyril Vidergar, Phil Ladd, Leland Keller, Yvette Lewis-Molok, Leland Keller, Leigh Gibson (Platte River, remote), Mary Horsey Members of the Public: Sue McFaddin, Jennifer Hammit MEETING CALLED TO ORDER Interim Chairperson Loran called the meeting to order at 5:30 pm. ANNOUNCEMENTS & AGENDA CHANGES None. PUBLIC COMMENT Sue McFaddin, a former Energy Board member, asked the Board to review Platte River Power Authority’s draft Integrated Resource Plan. The draft includes five scenarios, and she asked the Board if they would encourage Platte River (through the City’s appointed board members) to explore a sixth scenario. The scenario she would like to see considered is to not purchase a new aeroderivative gas turbine and continue to use the existing 388 MW of combustion turbines (CTs) they already have. United Power recently learned that between their existing CTs, and their Western Area Power Administration (WAPA) allocations creates enough capacity to join the Southwest Power Pool regional transmission network. As a ratepayer, we cannot afford 6.3% increases over the next 10 years. APPROVAL OF MINUTES In preparation for the meeting, board members submitted amendments via email for the May 9, 2024, minutes. The minutes were approved as amended. STAFF REPORTS Introduction to the Integrated Resource Plan (Packet Item Only) Brian Tholl, Senior Manager, Mechanical Engineer The Board was provided a packet item to refresh and/or introduce them to the concept of Platte River’s Integrated Resource Plan, which they reviewed ahead of the meeting. IRPs use the best information available today to evaluate potential future resource scenarios for meeting customer electricity needs. IRPs started appearing in the 1980s in response to the energy crises of the 1970s and rising fuel costs. They were required in most states by the 1990s, with specifics varying by ENERGY BOARD REGULAR MEETING state legislation and regulations, utility ownership type (municipal vs inventor), and utility size. IRPs are generally updated on a frequency of 2-5 years, with a defined maximum number of years between updates, but it can be updated more frequently if deemed relevant. The planning horizon typically spans between 10-20 years out. Specifically, Platte River currently performs an IRP every four years looking 20 years ahead. IRPs will include background information (such as the what, the why, and the how), as well as multiple future scenarios balancing generation, capacity, reliability, emissions, and cost. They will also include a staff recommendation of which scenario to pursue for now and an action plan with specific activities needed prior to the next IRP. This process is usually a multiyear timeline including community listening sessions, scenario research, studies, development and analysis, document generation, stakeholder review and refinement, and finally filing the submission to WAPA (in the case of Platte River). Chairperson Loran said when Platte River presents the IRP to the Energy Board in August, he hopes the Board can collectively say they support or don’t support the final recommendation and provide context as to why. In his opinion, there are glaring omissions and he found it confusing that some units of measurement seem to change throughout the report. Board member Wegert commented that the usage of undefined acronyms is confusing. Board member Braslau said it is contradictory to invest in a gas plant and simultaneously claim to provide 100% renewable electricity and carbon free. Platte River is marketing renewables, but it is in direct opposition to their current plans and investments. Board member Moore asked if Platte River has addressed the potential needed new transmission lines, since we know it takes years to build transmission lines. She noted that the president and CEO of United Power, Mark Gabriel, has said that gas will be a 50-year bridge fuel as technology and construction is catching up. Mr. Tholl said it would be reasonable to include a question for Platte River about transmission lines. He also encouraged the Board to review the May Platte River Board of Directors meeting packet. OVERVIEW OF POWER SUPPLY AGREEMENT Cyril Vidergar, Assistant City Attorney II Power Mr. Vidergar explained there are two principal agreements which form the basis of the City’s relationship with Platte River, the Organic Contract and the Power Supply Agreement (aka “The All-Requirements Contract). Both agreements expire in 2060, but prior to 2019 they expired on a ten-year cycle. The Organic Contract establishes Platte River Power Authority as a separate governmental entity created by the municipalities of Estes Park, Fort Collins, Longmont, and Loveland. The contract was originally made and entered into as of June 17, 1975. Mr. Vidergar highlighted some provisions from the agreement that are of interest to Fort Collins in particular. One provision designates Platte River as a separate governmental authority, which empowers them to take any action that any of the municipalities can take in their governmental role, such as incur debt and enter into contracts. In 2019, a clause was added to clarify that due to increased complexity and risk in the electric utility industry, the Organic Contract authorizes the Platte River to engage in a broad range of services (not just providing electricity) which are incidental to or supportive of the Municipalities' continued ENERGY BOARD REGULAR MEETING ability to provide electric power and energy services to their customers on a competitive basis. The core purposes of Platte River and the agreement are to conduct its business and affairs for the benefit of the Municipalities and their inhabitants, including to provide the electric power and energy; to engage in business activities related to the provision of electric power and energy services that the Board determines are likely to enhance the competitive position of Platte River or the Municipalities; and to provide any additional designated function, service, or facility lawfully authorized to any combination of two or more of the Municipalities. Functions, services, or facilities of Platte River include the supplying of the electric power and energy requirements of the Municipalities and retail customers within the Municipalities; and the provision of any additional function, service, or facility, by means of: acquiring, constructing, owning, etc. [facilities to produce and transmit electric power], purchasing electric power and energy from electric utilities and other producers, selling energy at wholesale to Municipalities, selling and disposing of any surplus energy or capacity, and developing electric energy resources (including renewable sources). Platte River Power Authority has a Board of Directors in which all legislative power of Platte River is vested. The board is composed of eight members, with two member representatives from each municipality, typically the Mayor and their appointee. The General Manager shall be the principal executive officer of the Authority with full responsibility for the planning, operations, and administrative affairs of the Authority, and the coordination thereof, pursuant to policies and programs approved by the Board of Directors. Mr. Vidergar noted that the term of the contract with continue until December 31, 2060, and until thereafter terminated by any Municipality following note less than 12-months written notice. All municipalities must agree to the termination. He also noted that the bonds, notes, and other obligations of Platte River are not the debts, liabilities, or obligations of the Municipalities; however, the contract may not in any event be terminated so long as Platte River has bonds, notes, or other obligations outstanding. Chairperson Loran said something he understood from his review is that each municipality has two votes, but if there were to be a tie in a voting matter, the votes are then weighted by electricity purchases. Mr. Vidergar said he would have to review to confirm if that is accurate or not. Board member Braslau asked if it is true that the members of the Board are bound by contract or bylaw to vote in the interest of Platte River as opposed to the Municipalities they represent. Mr. Vidergar said the Organic Contract does not contain anything expressly written preventing board members from advocating for their municipalities. He said there are likely bylaws of the Board of Directors which could indicate otherwise, but he does not have those at the ready to reference. The Power Supply Agreement, or the All-Requirements Contract, outlines the terms of electricity purchase from Platte River to the Municipalities. Mr. Vidergar also outlined several clauses in this agreement that would be of interest to Fort Collins. The Platte River Board of Directors approved a Resource Diversification Policy (RDP) with the goal of becoming 100% non-carbon by 2030, in doing so the Board recognized that distributed generation will be needed to achieve this goal. The agreement states intermittent resources must be managed to ensure continued system reliability; and Platte River will equitably manage the impact of adding and firming intermittent resources amongst the four communities to ensure continued financial sustainability. ENERGY BOARD REGULAR MEETING Board member Giovando asked, from a legal standpoint, what it means to set a goal in a contract, such as 100% non-carbon by 2030. Mr. Vidergar explained that the “whereas clauses” present in these agreements are not enforceable authorities and serve to frame the context and background of the agreement. In order to meet the goal of the RDP, the parties are committed to use an incremental amendment process (recognizing Platte River is not intended to be the only means by which the parties either singularly or in coordination work toward meeting the goal of the RDP) to explore expanding opportunities for distributed generation resources that likely become an increasingly important component of our future resource mix and to amend this agreement when appropriate to accommodate technologies and business models that are not contemplated today. At its core, the Power Supply Agreement states that Platte River shall sell and deliver, and Fort Collins (et al) shall buy, all electricity needed for the Utility’s electric system; however, however, Fort Collins shall have the right to generate its own power to the extent of the capacity of its generating facilities on September 5, 1974 and may generate power for its own use, provided that the total rated capacity of new generation is < 1,000 kW or 1% its peak load, whichever is greater, provided further that if Fort Collins develops new resources as set forth above Platte River commits to meet with Fort Collins to discuss in good faith an increase in the total rated capacity limit. Mr. Tholl added that the 1% capacity limit is in reference to Utilities-owned assets and would not be inclusive of anything behind the meter such as residential or commercial rooftop solar. Chairperson Loran asked if the Riverside Community Solar Garden is the only Utilities-owned asset. Staff clarified there is a small garden on Kyle Avenue as well. Mr. Loran asked what percent of our allowed capacity the Utility is currently producing. Mr. Tholl said Fort Collins peak load is around 380MW, so the 1% capacity limit would be around 3.8MW; he estimates the Utility is currently producing around 0.5MW so there is plenty of overhead available within the capacity restriction. Board member Loran asked about restrictions on DC fast chargers because the contract appears to say we cannot resell energy. Mr. Vidergar said that is an interesting question that would require some additional exploration. He is not aware of proposals that have come through development review for projects such as that. At least once a year, the Platte River Board of Directors review the rates for electric power and energy furnished, and if necessary, shall revise such rates to produce revenues which shall be sufficient, but only sufficient, with the revenues of Platte River from all other sources, to meet costs of O/M, power purchases, bond payments, etc. Mr. Vidergar said there is room, and it is anticipated that this agreement is somewhat of a living document. Board member Giovando asked if Fort Collins wanted to change the capacity limit to above 1%, would that require sign off from all four municipalities since all the agreements are the same. Mr. Vidergar said the language suggests that yes, all municipalities would have to agree to change. VPP DEFINITION & CONSUMER IMPLEMENTATION INTRO Brian Tholl, Senior Manager, Mechanical Engineer A virtual power plant (VPP) is a network of distributed energy resources (DERs) and systems that, when ENERGY BOARD REGULAR MEETING grouped together, can provide a reliable power supply for energy users. This differs from “traditional” centralized, large-scale power generation and delivery. VPPs are regionally unique and built to handle several use cases. VPPs require programs to support DER adoption and VPP best practices continue to emerge. Staff is taking a structured approach to VPP Planning, assessing goals, drivers, desired outcomes, challenges, benefits; identifying services, functional capabilities, target technology roadmap; and determining the current state, performing a gap analysis, and a roadmap. Based on that assessment and identification of what a local VPP should do, staff’s goals are inclusive of things like providing DER (distributed energy resources) to all customers and facilitate DER deployment, instituting common standards and process for DERs among Platte River and other owner communities, complying with cybersecurity and data privacy protection policies, integrating DERs into operations, etc. Mr. Tholl explained the development of a local VPP would facilitate 17 functional capability categories (such as analytics & reporting, forecasting, grid reliability, DER visibility and program management, etc.), as well as over 160 functional use cases, which help define needed technology systems and architecture. Within the VPP ecosystem, you will find customers, Fort Collins and other owner municipalities, Platte River, and the regional market (Southwest Power Pool). Customers adopt DERs and participate in VPPs provide service (productivity, comfort, convenience, reliability, resilience), decarbonize, want to save money. Fort Collins (et al) enable DER adoption and distribution benefits provide customer service, decarbonize, improve reliability and resilience, and manage costs for their respective customers. Platte River enables DER adoption and transmission benefits to serve the owner municipalities, decarbonize, improve reliability and resilience, and manage costs. The Market enables DER adoption and VPP participation to improve reliability and resilience and economically serve load. There is a certain level of complexity between each of these relationships due to differing policies, requirements, agreements, systems, programs, integrations, data and information, and value. Maximum DER benefits will come from a suite of solutions, including control, request, rates and price signals, behavioral, and passive (efficiency, etc.), and not only control of the inventory of DERs. Board members asked if staff has considered incentivizing or providing grants to customers who swap out inefficient, heavy use appliances (such as air conditioning units) and measuring what effect that would have on our rates and energy usage. Mr. Tholl acknowledged that efficiency is king and said staff could potentially provide both numbers in cost and kWh. Mr. Tholl closed his presentation by emphasizing that the Utility cannot be competing with Platte River in this space, there has to be a holistic perspective to the customer. He noted that Fort Collins is committed to continue to share lessons learned on 10+ years of history of local DER management. BOARD MEMBER REPORTS Vice Chairperson Moore said while she found Mark Gabriel’s presentation fascinating, she understands after Mr. Vidergar’s presentation tonight that it may not be an option for us to exit our contract with Platte River. Chairperson Loran commented that one of the problems Utilities are facing is tremendous lead time for transmission facilities, but he recently heard of a new technology that has been deployed in the field using existing transmission towers but changing the lines out for better thermal management, which is providing double the capacity. ENERGY BOARD REGULAR MEETING FUTURE AGENDA REVIEW In July, the Board will hear an update regarding Building Performance Standards, as well as a presentation about how Platte River’s Integrated Resources Plan will affect the City’s Our Climate Future Plan. ADJOURNMENT The Energy Board adjourned at 7:43 pm. Program Manager, Energy Services Katherine Bailey Building Performance Standards (BPS): Update 7-11 -24 Community Contributors Community contributors shaped BPS policy recommendations Equity Engagement BPS ExpertsTask Forces Industry Experts Technical Committee Community Voices Building Science Experts Experienced Consultant Community- Based Organizations Climate Equity Committee Scoped Work Other Jurisdictions Non-profit and Federal Groups Business Groups Environmental Groups Boards and Commissions City/PRPA staff Structural Recommendations •Covered Buildings •5,000 square feet: multi-family (MF) and commercial •Buildings 5,000-10,000 square feet have more attainable targets,timelines •Efficiency Targets •Energy Use Intensity (EUI) •Maximum flexibility •Resources and Support •Education, technical, financial •Adjustments •Additional assistance for under-resourced buildings Task Force recommendations are published at ourcity.fcgov.com/BPS Alternative Paths Alternate Pathways Caps Renewables Adjustments Timeline Target Alternate pathways provide options for buildings that cannot meet EUI targets Waivers 5 Renewables in a BPS Goals: 1.Efficiency first 2.Provide a role for renewables 3.Do not penalize for failing to install renewables Solution: Allow onsite renewables to count toward compliance by: Providing an EUI credit that is applied toward final goal BPS Overview: Covered Buildings in Fort Collins Building Size Building Count Building Count Reduction Target Reduction Target Reduction Target Upgrade Cost (Per Square Foot) Number of buildings Buildings that need to act Compliance requirement timeline Individual reduction cap Average reduction to target 5,000- 10,000 square feet 310 200 (65%)2035 15%9%$4.11 to $4.56 10,000+ square feet 780 520 (66%)2030 25%13%$4.69 to $5.05 State covered 50,000+ square feet 80 60 (77%)2030 29%17%$4.40 to $4.74 Based on 2023 reported benchmarking data; some buildings are campuses which include multiple structures Cost Benefit Study When considering only energy savings, BPS implementation has a projected benefit of $0.85 for every $1 in cost spent between 2024-2035. When factoring in the avoided social cost of greenhouse gas emissions, such as health effects, property damage from climate-related natural disasters, and the disruption of energy systems, the benefit increases to $3.18 for every $1 in cost. Cumulative over a 10-year period Cost Benefit Analysis: Owner and Occupant Benefits •“Green” buildings or buildings with higher-than-average efficiency have demonstrated occupancy rates up to 18% higher than average, greater occupancy retention, and a 5.9% higher net operating income. •Reductions in onsite energy demand can lead to energy bill averages at approximately 35% lower than those of an average office building. •Due to market demand, building owners can charge higher premiums for leased spaces. •Green building upgrades may add between 2%-17% to a building’s resale value. •Building operating costs can drop 30% following green building upgrades, and maintenance costs may decrease 25-30% as well. 9 Where are we now? Work to date with Council •Work session 1: April 23, 2024 •Policy recommendations •Work Session 2: June 11, 2024 •Implementation and Support Follow up materials: •City Buildings •Incremental City Costs •Equity Feedback •Simplified overview Proposed Next Steps Adoption (Summer 2024?) Refine BPS requirements with Council Resource Gathering (Summer-December) Secure and customize required resources Implementation (January 2025) Begin offering education and resources; notifications begin Adoption: Adoption well in advance of targets provides building owners more time to meet requirements. Resource Gathering: Successful implementation depends on resources for all buildings, with emphasis on under-resourced buildings. Staff are ready to build out educational, financial, and technical resource hubs. Implementation: Resources developed will be shared widely with impacted groups, both to inform and educate, and to seek feedback on resources offered. Ongoing feedback will be sought to understand impacts on the community throughout implementation. 11 Next Steps Messaging: The Good, the Bad, and the Ugly Community members and impacted parties share a range of feedback: •NEBs are critical and need to be further emphasized •How do we broaden the understanding of ROI? •Focus on health-related associations •Include the cost of inaction •Additional costs cannot be supported at this time •Property tax increase •Low margins for building owners •Balancing Social v. Financial responsibilities •Protecting tenants and businesses 12 Energy Board Feedback Simplified messaging of complex requirements and support Messaging Essentials •Who, what, when, why, how •Simple, clear messaging foci Addressing •Timing •Costs •Occupant impacts •NEBs •Climate change mitigation Motivations:Building Science Expertise Industry Expertise General Community Financial Environmental Social Audience Breakdown Questions on BPS: 13 Kbailey@fcgov.com 970-221-6818 Program Manager, Energy Services Katherine Bailey Headline Copy Goes Here Senior Energy Services Engineer Michael Authier How Does Platte River's Integrated Resources Plan Affect the Community's Climate Goals 07-11-24 Headline Copy Goes Here 2 Agenda • Guiding Policy • Emissions Accounting • Electricity Accounting Headline Copy Goes Here Guiding Policy 3 Headline Copy Goes Here 4 Guiding Policy Section Introduction • Historic Highlights • Our Climate Future (OCF) - Big Moves - Next Moves - Energy Related Community Goals • Other Relevant Policies Headline Copy Goes Here 5 Guiding Policy Historic Highlights - Climate • 1999 Local Action Plan to Reduce GHG Emissions - Reduce community emissions 30% below 2010 forecast by 2010 (31%) • 2008 Climate Action Plan - Reduce community emissions 03% below 2005 by 2012 (09%) - Reduce community emissions 20% below 2005 by 2020 (25%) - Reduce community emissions 80% below 2005 by 2050 • 2015 Climate Action Plan - Reduce community emissions to 20% below 2005 by 2020 (25%) - Reduce community emissions to 80% below 2005 by 2030 - Reduce community emissions to 100% below 2005 by 2050 *achievement shown at right with color indicating either goal met by target year, or after target year Headline Copy Goes Here 6 Guiding Policy Historic Highlights - Energy • 2003 Electric Energy Supply Policy - Maintain current grid safety and reliability, and reduce peak loads - Reduce electricity use per capita 10% below 2002 by 2012 (11%in 2017) - Provide 15% renewable electricity (non-hydro) by 2017 (26%in 2020) • 2009 Energy Policy - Maintain current grid safety and reliability, and reduce peak loads - Achieve a portfolio savings over 1.5% of annual energy use (2012 on) - Provide 20% renewable electricity (non-hydro) by 2020 (26%) *achievement shown at right with color indicating either goal met by target year, or after target year Headline Copy Goes Here 7 Guiding Policy Our Climate Future • Adopted 2021 • Encompasses previous: - Climate Action Plan - Energy Policy - Road to Zero Waste Plan • Focus on mitigation, equity, resilience • Aligned with City Strategic Objective 4.1 - Intensify efforts to meet 2030 climate, energy and 100% renewable electricity goals that are centered in equity and improve community resilience Learn more at ourcity.fcgov.com/ourclimatefuture Headline Copy Goes Here • 13 transformational community outcomes Guiding Policy Our Climate Future Big Moves 8 Headline Copy Goes Here 9 Guiding Policy Our Climate Future Next Moves • Specific strategies and tactics within each Big Move • Energy related examples: - Energy Services’ ongoing program portfolio - Zero carbon new construction - Building Performance Standards - Building electrification - Workforce development Learn more at ourcity.fcgov.com/ourclimatefuture Headline Copy Goes Here 10 Guiding Policy Our Climate Future Energy Related Community Goals - Reduce the Community’s greenhouse gas emissions inventory to 50% below 2005 by 2026, 80% below 2005 by 2030, and carbon neutral by 2050 - Between 2021 and 2030, reduce the Community's forecasted electricity use by 20% and natural gas use by 10% - Advance energy code through regular three-year updates, and adoption within one year of new IECC issuance Learn more at ourcity.fcgov.com/ourclimatefuture Headline Copy Goes Here 11 Guiding Policy Our Climate Future Energy Related Community Goals - Maintain existing Utilities distribution reliability metrics - Provide the Community 100% renewable electricity by 2030, with 5% from local sources - Support deployment of distributed energy resources to achieve a bidirectional demand flexibility capacity of 5% of peak loads by 2030 Learn more at ourcity.fcgov.com/ourclimatefuture Headline Copy Goes Here 12 Guiding Policy Other Relevant Policies • Platte River’s 2018 Resource Diversification Policy - Generate 100% noncarbon electricity by 2030, while maintaining existing reliability, financial sustainability, and environmental responsibility • State of Colorado’s 2021 Clean Energy Plan - Reduce electricity generation greenhouse gas emissions to 80% below 2005 by 2030 Learn more at prpa.org/generation Headline Copy Goes Here Emissions Accounting 13 Headline Copy Goes Here 14 Emissions Accounting Section Introduction • Basics • Fort Collins Community Headline Copy Goes Here 15 Emissions Accounting Basics: Greenhouse Gases (GHG) • Measured in metric tons of carbon dioxide equivalent (MTCO₂e) - Can include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3) • Protocols provide best practices and comparisons - Global Protocol for Community-scale GHG Emissions (GPC) - U.S. Community Protocol - Local Government Operations Protocol (LGO) • Annualized reporting Greenhouse Gas Emissions =Resource Use (how much) x Emissions Factor (how bad) Headline Copy Goes HereEmissions Accounting Basics: Sector-Based Inventory Boundaries Standard approach, performed 1 to 5 years, based mostly on local data, provides City decision-making insights Headline Copy Goes HereEmissions Accounting Basics: Consumption-Based Inventory Comparison Emerging approach, performed infrequently, based mostly on national data, provides consumer-focused insights Sector-Based GHG Emissions Consumption-Based GHG Emissions Production Outside the City Consumption Outside the City (scope 3) Overlap Consumption Inside the City (scope 1 & 2) Production Inside the City (scope 1 & 2) Headline Copy Goes Here • Sector-Based Inventory in 1990, 1995, then from 2000 on - Follows Global protocols (GPC) - Covers Growth Management Area - Includes scope 1, 2, and some 3 emissions • Consistent sources and methodologies from 2005 on - Data used must be available for all historic years - Methodology updates applied backward 18 Emissions Accounting Fort Collins Community Learn more at ghgprotocol.org Headline Copy Goes Here 19 Emissions Accounting Fort Collins Community Inventory covers six areas or “resources” Industrial Processes and Product Use (IPPU) Water Solid Waste Ground Travel Natural Gas Electricity Headline Copy Goes Here Electricity Accounting 20 Headline Copy Goes Here 21 Electricity Accounting Section Introduction • Basics • Fort Collins' Wholesale Electricity Provider • Transitioning into a Regional Transmission Organization • Scenarios - Current Structure with 2022 Data - Future Structure with 2022 Data (as if in the market today) - Future Structure with 2030 Forecast Data (as of April 2023) Headline Copy Goes Here 22 Electricity Accounting Basics: Energy • Individual electrons not identifiable or traceable • Energy can be measured by meters - Both at generation and consumption • Accounting utilizes: - Metering - Financial transactions - Contracts and agreements Learn more at eia.gov/energyexplained/electricity Headline Copy Goes Here • Conceptually, somewhat like a water system -Generators provide power “pressure” into the system -Consumers access power “open a tap” by turning on a switch -Balancing Authorities maintain the system “pressure” (120 volts) 23 Electricity Accounting Basics: Electric Grids Learn more at eia.gov/energyexplained/electricity/delivery-to-consumers.php For Fort Collins: Generator (primary) = Platte River Power Authority Balancing Authority = Public Service Company of Colorado Headline Copy Goes Here 24 Electricity Accounting Fort Collins' Wholesale Electricity Provider Platte River Power Authority (Platte River) • Formed in 1973 • Non-profit, community-owned public power utility • Established to provide wholesale electric generation and transmission to its owner communities - Estes Park, Fort Collins, Longmont, Loveland • Governed by eight-person board of directors - Two from each owner community, representing community interests Learn more at prpa.org Headline Copy Goes Here 25 Electricity Accounting Fort Collins' Wholesale Electricity Provider • Three distinct, but interconnected relationships with Fort Collins - the City as a co-owner of the generation authority - the Utility as a partner in operations and planning - the Community as a consumer of purchased electricity Learn more at prpa.org Headline Copy Goes Here 26 Electricity Accounting Fort Collins' Wholesale Electricity Provider • Excess generation sold regionally • Available regional generation bought as needed MW Access current generation information at prpa.org/energy-production Headline Copy Goes Here • In 2026, Platte River joining Southwest Power Pool - Expansion of existing Regional Transmission Organization (RTO) 27 Electricity Accounting Transitioning into a Regional Transmission Organization Learn more at nga.org/electricity-markets and ferc.gov/electric-power-markets *SPP's current RTO territory, and RTO West expansion Proposed expansion membership: • Basin Electric Power Cooperative • Colorado Springs Utilities • Deseret Power Electric Cooperative • Municipal Energy Agency of Nebraska • Platte River Power Authority • Tri-State Generation & Transmission Association • Western Area Power Administration Headline Copy Goes Here 28 Electricity Accounting Transitioning into a Regional Transmission Organization Southwest Power Pool (SPP) • Formed in 1941 • Non-profit corporation, mandated by Federal Energy Regulatory Commission to ensure its members: - Reliable supplies of power - Adequate transmission infrastructure - Competitive wholesale electricity prices Learn more at spp.org Headline Copy Goes Here 29 Electricity Accounting Transitioning into a Regional Transmission Organization Southwest Power Pool (SPP) • Provides members: - Marketplace administration - Real-time and day ahead resource scheduling - Electric supply and demand balancing - Real-time congestion and outage management - Transmission expansion planning Learn more at spp.org Headline Copy Goes Here 30 Electricity Accounting Transitioning into a Regional Transmission Organization Southwest Power Pool (SPP) • Requires members maintain: - Credit rating and minimum capitalization requirements - Resource adequacy requirements (for load serving entities) - NERC reliability standards - Annual risk management certification - An energy management system, energy trading risk management system, market operations system, and automatic dispatch systems - Inter-control center communications protocol (ICCP) compatibility Learn more at spp.org Headline Copy Goes Here 31 Electricity Accounting Transitioning into a Regional Transmission Organization High-level operational structure and flow (Generation to Consumption) Headline Copy Goes Here • Platte River generates electricity, selling all to its Member Cities and regionally through contracts, with any excess also sold regionally as surplus • Platte River purchases electricity from regional utilities when needed or financially prudent • Renewable certificates are created for all renewable generation, and can be bought or sold, with or separate from it • Fort Collins Customers consumer electricity from both Platte River and local sources . Platte River Power Authority Coal Natural Gas Wind Associated Renewable CertificatesSolar Hydro Purchases Sold to Fort Collins Utilities Generated by Platte River Sold to Regional Utilities Purchased from Regional Utilities Sold to Other Member Cities Electricity Accounting Current Structure with 2022 Data 32 . Platte River Power Authority Coal Natural Gas Wind Associated Renewable CertificatesSolar Hydro Purchases Sold to Fort Collins Utilities Generated by Platte River Sold to Regional Utilities Purchased from Regional Utilities Sold to Other Member Cities . Platte River Power Authority Fort Collins Utilities Coal Natural Gas Wind Associated Renewable CertificatesSolar Hydro Purchases Sold to Fort Collins Utilities Generated by Local Sources Consumed by Customers from Local & Platte River Generated by Platte River Sold to Regional Utilities Purchased from Regional Utilities Sold to Other Member Cities Headline Copy Goes Here 33 Electricity Accounting Renewable Certificates aka Renewable Energy Credits (RECs) • Accounting mechanism for renewable energy - Megawatt-hour units (1 REC = 1 MWh) • Can be bundled with electricity, or unbundled and bought or sold separately • Platte River tracks all its renewable generation in WREGIS - Western Renewable Energy Generation Information System - Allows RECs to be reported, tracked and retired Learn more at wecc.org/Pages/AboutWECC.aspx Headline Copy Goes Here • Platte River generates electricity, selling all to SPP and regionally through contracts • Platte River sets their resource prices, and SPP prioritizes which regional resources run • Platte River purchases electricity from SPP market for its Member Cities (assumed as fossil) • SPP doesn’t track renewable certificates, so they’re unbundled and retained (for Member Cities) • If SPP cannot use a renewable resource, it's either stored for later if possible, or curtailed with no certificate created Hydro Coal Purchases Natural Gas Wind Associated Renewable CertificatesSolar Generated by Platte River Sold to Regional Utilities Purchased from Regional Utilities Sold to Other Member Cities Sold to Fort Collins Utilities Platte River Power Authority Hydro Coal Purchases Natural Gas Wind Associated Renewable CertificatesSolar Generated by Platte River Sold to Regional Utilities Purchased from Regional Utilities Sold to Other Member Cities Sold to Fort Collins Utilities Platte River Power Authority Electricity Accounting Future Structure with 2022 Data (as if in the market today) 34 Hydro Coal Purchases Natural Gas Wind Associated Renewable CertificatesSolar Generated by Platte River Sold to Regional Utilities Purchased from Regional Utilities Sold to Other Member Cities Sold to Fort Collins Utilities Generated by Local Sources Consumed by Customers from Local & Platte River Platte River Power Authority Fort Collins Utilities Headline Copy Goes Here • For 100% RE, OCF goal based on the community's consumption (rightmost), while Platte River’s RDP goal based on its total generation (leftmost) • Efficiency and local renewables reduce regional purchases, which also reduces reliance on renewable certificates • Grid flexibility aligns our consumption with local and Platte River renewable generation, going beyond annual accounting, while minimizing renewable curtailment (accounting impact) Hydro Coal Purchases Natural Gas Wind Associated Renewable CertificatesSolar Generated by Platte River Sold to Regional Utilities Purchased from Regional Utilities Sold to Other Member Cities Sold to Fort Collins Utilities Generated by Local Sources Consumed by Customers from Local & Platte River Platte River Power Authority Fort Collins Utilities Fort Collins Utilities Natural Gas Consumed by Customers from Local & Platte River Generated by Platte River Sold to Regional Utilities Purchased from Regional Utilities Sold to Other Member Cities Sold to Fort Collins Utilities Generated by Local Sources Solar Hydro Wind Purchases Associated Renewable Certificates Platte River Power Authority Electricity Accounting Future Structure with 2030 Forecast Data (as of April 2023) 35 Headline Copy Goes Here Thank You! 36