HomeMy WebLinkAbout10/24/2024 - ENERGY BOARD - AGENDA - Regular Meeting
ENERGY BOARD
REGULAR MEETING
October 24, 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 SEPTEMBER 12, 2024 MINUTES
4. [5:45] STAFF REPORTS (30 Min, Discussion)
• Light & Power, Energy Services Operational Updates
Travis Walker, Interim Deputy Director, Utilities Light & Power
Brian Tholl, Senior Manager, Mechanical Engineer
• Building Performance Standards Memo Update (Packet Item Only)
Brian Tholl, Senior Manager, Mechanical Engineer
• Riverside Community Solar Garden Update (Packet Item Only)
Brian Tholl, Senior Manager, Mechanical Engineer
Participation for this Energy Board Meeting will be in person in the Colorado Room at
222 Laporte Ave.
You may also join online via Teams using this link: Click here to join the meeting
Public Attendance & Comment
Members of the public are encouraged to attend either in person or online. Members of the
public attending in person are expected to sign in on the public sign-in sheet. During the “Public
Comment” segment of each meeting, comment will be allowed on matters of interest or
concern to members of the public, including items the Board will consider at that night’s
meeting. Each speaker will only be allowed to speak one time during Public Comment.
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The online meeting will be available to join at approximately 5:15 pm, October 24, 2024.
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5. [6:15] 2025 UTILITY RATES & FEES (45 Min, Decision)
Randy Reuscher, Lead Analyst, Utility Rates
Phil Ladd, Manager, Financial Planning & Assets
6. [7:00] DRAFT 2025 WORK PLAN (30 Min, Discussion)
7. [7:30] BOARD MEMBER REPORTS (5 min.)
8. [7:35] FUTURE AGENDA REVIEW (5 min.)
9. [7:40] ADJOURNMENT
ENERGY BOARD
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ENERGY BOARD
September 12, 2024 – 5:30 pm
222 Laporte Ave – Colorado Room
ROLL CALL
Board Members Present: Alan Braslau, Thomas Loran, Frederick Wegert, Wendell Stainsby, Scott
Canonico, Brian Smith, Marge Moore (remote)
Board Members Absent: Jeremy Giovando, Eric Shenk OTHERS PRESENT
Staff Members Present: Christie Fredrickson, Brian Tholl, Travis Walker, Randy Reuscher, Phil Ladd,
Michael Authier, Brad Smith, Kimberly…, Mary Horsey (remote), Yvette Lewis-Molok (remote)
Members of the Public: George Weston, Barbara Krupnik Goldman, Bill Althouse (remote), Leigh
Gibson (PRPA, remote), Sue McFaddin (remote)
MEETING CALLED TO ORDER
Chairperson Loran called the meeting to order at 5:30 pm.
ANNOUNCEMENTS & AGENDA CHANGES
Chairperson Loran announced that beginning in October the online meeting platform will be moving to
Microsoft Teams (away from Zoom). Ms. Fredrickson noted that instructions will be included with next
month’s agenda for both the Board and members of the public. She noted that meeting attendees will not
be required to have a Microsoft account in order to join or participate in the meeting.
PUBLIC COMMENT
Ms. Krupnik Goldman said she is a believer in climate change, and changing words or goals will not
change the reality that the climate emergency is real and happening now. She said our actions should
align with reality. She hopes the Board will ask City Council to pass a resolution requiring oversight by
NREL before Platte River moves forward with the Integrated Resources Plan. Ms. Krupnik Goldman went
on to say she realizes that though City Council is not the Platte River Board, they do have a fiduciary duty
to the rate payers and the City of Fort Collins; they should want to be sure it is the best plan, the fairest
plan, and especially that the plan is framed around climate and climate impact. Chairperson Loran asked
Ms. Krupnik Goldman for clarification, would she rather see the “no additional carbon” option? She
confirmed yes, that is her preferred option.
Mr. Althouse said that under state law, all retail rates must be regulated. In this case, as a municipal
utility, the fiduciary obligation lies with City Council; they should be the one conducting or authorizing the
review.
APPROVAL OF MINUTES
In preparation for the meeting, board members submitted amendments via email for the August 8, 2024,
minutes. The minutes were approved as amended.
BUILDING ENERGY CODE AND PATH TO ZERO CARBON NEW
CONSTRUCTION UPDATES
Brad Smith, Energy Code Project Manager
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As a home rule state, Colorado does not have a state-adopted energy code. This is beneficial because
jurisdictions can amend and adopt building codes as they see fit. The City of Fort Collins has one of the
most progressive building codes in the nation.
The Colorado Energy Office is spearheading new legislation that could change how the City adopts and
amends building codes in the future; House Bill 19-1260 establishes a minimum energy code (must adopt
a code from the last three code cycles), and HB 22-1362 is legislation around code for building
greenhouse gas emissions. HB 1362 drove the establishment of a statewide energy code board which
was tasked with developing with EV, PV, and electric ready codes, and a low energy and carbon code is
currently in development. Mr. Smith noted that we can only push so hard because we do not have the
workforce across the entire state to get super aggressive with building energy code. In addition, the
Colorado Energy Office will develop a Model Green Code that local governments may voluntarily adopt,
alongside the required energy code. The model green code will address building attributes such as
energy efficiency (above minimum code), water efficiency, and embodied carbon in building materials.
The International Code Council (ICC) body of codes is published every three years (2015, 2018, 2021,
etc.) The 2021 body of code was adopted with local amendments on April 15, 2022. Staff is currently
reviewing the 2024 code, which will be adopted and layered with the code that is in development.
Mr. Smith explained the three approaches to code adoption: open hearing, private process, and
somewhere in between. The approach will vary by jurisdiction, but generally during an open hearing
anyone can propose a change, and a committee hears and votes on all proposals. In a private process,
staff pour through the codes to see what has changed and if any amendments are needed, then they
make a list of recommendations to their city council. The “in between” allows stakeholders to be involved
in the process (voice concerns or ideas) so that they are a part of the process and not just hearing about
it after it’s already law—this is where the City of Fort Collins currently sits.
There are four compliance paths available for energy code: prescriptive, UA alternative, performance, and
ERI (residential)/ASHRAE 90.1 (commercial). Prescriptive is known as the more traditional way of
adhering to building code and dictates how to build exactly. UA Alternative requires building energy
modeling, and the UA score cannot exceed the code’s maximum UA. Performance also requires building
modeling, but the modeling demonstrates an annual energy cost that does not exceed the code baseline.
ERI/ASHRAE requires modeling to an energy score annual cost which cannot exceed the code baseline.
Fort Collins uses the Performance Path for new construction because it provides flexibility, transparency,
real energy outcomes in both kWh and therms, fossil fuel de-biasing of the code, and data-informed
decision-making.
Building codes are aligned with the Our Climate Future Plan under Big Move 6: Efficient, Emissions Free
buildings. The next move that supports Big Move 6 is to develop an energy performance path for new
construction to zero carbon building by 2030. Mr. Smith pointed out the word carbon to emphasize that it
is not zero energy so we can move toward electrification. Chairperson Loran asked if that is inclusive of
materials like concrete and steel. Mr. Smith said embodied carbon is difficult to calculate right now, but it
is something staff plans to keep an eye on and adapt as available.
The Department of Energy Bipartisan Infrastructure Law presented a funding opportunity at the end of
2022 to award $45 million over a five-year period. An anticipated 10-30 awards would be given to receive
a share of the $45 million for project teams ready to advance building energy codes and efficiency
policies within a particular region, state, or local jurisdiction. Fort Collins submitted an application on
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March 27, 2023, and was awarded $693,595 on July 12, 2023, to develop methodology that establishes
Energy Use Intensity (EUI) and CO2e targets as well as a performance code. Fort Collins was the only
jurisdiction awarded funding out of the 27 awarded applications.
CAPITAL IMPROVEMENT PLAN AND INPUTS TO UTILITY RATES
Randy Reuscher, Lead Analyst, Utility Rates
Phil Ladd, Manager, Financial Planning & Assets
The Utility has several operational goals throughout the budgeting process: maintain current level of
reliability, achieve carbon-reduction objectives related to Our Climate Future, provide adequate substation
distribution and capacity, and balance financial impacts to customers.
In 2023, the Utility brought in about $163 million. Residential electric services were 39% of revenues,
commercial were 30%, industrial charges for services was 21%. Pilots (5%), developmental fees (3%),
and interest/miscellaneous revenue (2%) all make up the remaining 10%. Light & Power’s operating
revenue budget is roughly $170 million in 2025 and $180 million in 2026. Public improvement and
development fees are budgeted fairly conservatively since they are highly influenced by the economy and
supply chain. Expenses in 2023 totaled about $159 million, the largest expense being purchase power
from Platte River (63%). Chairperson Loran asked if overhead is proportionally increasing, overhead. Mr.
Reuscher said it has generally been consistent, but going forward the capital side of things presents a
new challenge. Board member Smith asked how our operations compare to the other electric Utilities. Mr.
Reuscher said we don’t have exact numbers, but things are very similar within the other three owner
communities. Mr. Tholl added the more common metric is called blended retail rate from CAMU. Mr.
Reuscher said staff is not prepared with that information tonight but would be happy to share with the
Board in October when they return.
The Capital Improvement Plan (CIP) has inflated threefold since 2016. Mr. Reuscher explained that some
of the increase is inflationary, and some of it is larger projects (substations, technology upgrades, etc.).
He reiterated this is a big-picture plan, and as the two-year budget cycle evolves, things will be revised.
Mr. Reuscher displayed a chart showing the rate increase forecast for all four City utilities over the next
10 years. The Utility is budgeting for 6.5% and 6% electric rate increases in 2025 and 2026, respectively.
Platte River is the Utility’s largest rate driver due to wholesale costs, making up about two-thirds of the
electric rate (the remaining third is made up of distribution and operational costs). Platte River is
forecasting 6% wholesale increases from 2027 through 2030 (which is passed on to resale customers),
but Platte River and Utilities Staff both expect lower wholesale and distribution increases beginning in
2031 (3-5% instead of 7-8%). Mr. Reuscher noted that these are iterative projections and will continue to
change as things evolve locally.
Mr. Reuscher and Mr. Ladd will be back next month to present 2025 rates and fees and will be seeking a
formal recommendation from the Board. If possible, the Board would also like to see more granularity
regarding rate changes between 2030-2031 since it is such a significant change.
Board member Braslau noticed that there are large rate increases across all four utilities in the rate
forecast, which will have significant impacts to utilities customers. Mr. Reuscher said Capital Projects are
planned in all the utilities, which is significant rate driver but as the projects get closer the costs and
associated rate impact will become more concrete. Board member Smith asked if it is possible to stagger
the capital projects to help ease the rate impact. Mr. Reuscher said staff does try to rate smooth
whenever possible and look for funding or bonding opportunities to help reduce significant spikes.
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CITY MANAGER’S RECOMMENDED BUDGET
Brian Tholl, Senior Manager, Mechanical Engineer
The City of Fort Collins follows a two-year budget cycle for the 2025-2026 Budget. The process begins
with Council adoption of the Strategic Plan and council priorities which are used to create the Offers for
the programs and services that are provided to our Community. The City Manager’s recommended
budget is published and available to review at www.fcgov.com/budget
There are several opportunities for public comment about the budget, including Council meetings and
public hearings; the final adoption of the 2025/26 budget is scheduled for November 15.
Mr. Tholl briefly discussed five Energy Services ongoing budget offers (7.1, 7.2, 7.3, 7.4, 7.5) and
displayed how the budget changed from 2023/24 to 2025/26. There are also four enhancement offers
(7.6, 7.23, 7.24, 7.25) that Mr. Tholl thought the Board may be interested in.
Offer 7.26 is for Electric Vehicle Monitoring and Management Demonstration. Funding this offer will add
an additional 200 electric vehicles to existing telematics based and to proposed new EV charger based.
Grid flexibility programs staff negotiated a waiver of all fixed program startup costs with the vendor
(Available FY 2025 only), a savings of over $100,000. The Utilities Smart Charging program, part of the
larger Peak Partners branded programs, integrates a variety of distributed energy resources into our
software platform, which is the foundation for a virtual power plant.
Offer 7.23 is for Virtual Power Plant Development. Funding this offer will enroll and deploy 2,300
additional customer sited Peak Partners program VPP resources toward achieving 2030 Our Climate
Future (OCF) goals. Resources include Wi Fi thermostats (direct install and Bring Your Own), distributed
thermal batteries (standard and grid interactive water heaters [GIWH]) and electric vehicle charge
management controls (charger and telematics based). This enhancement offer aligns with the
deployment of devices necessary to achieve the Our Climate Future goal of 5% bidirectional grid flexibility
of peak loads by 2030.
Offer 7.24 is for Strategic Electrification Design Assistance. Funding from this offer is sourced from the
2050 Tax for Climate and will accelerate strategic electrification in the community by providing design
assistance for commercial and residential new construction projects as well as consulting for deep retrofit
renovations for affordable housing. This design assistance will provide expert influence in high efficiency
electrification strategies that will accelerate the community’s 2030 climate goals. This proposed
enhancement would allow IDAP to provide the energy consultant at no cost, making participation easier
for underserved affordable housing projects. Additionally, funding from this offer will be used to implement
an innovative home design program that will provide no cost, preapproved design plans with ultra-high
efficiency panelized construction that will reduce community greenhouse gas emissions.
Offer 7.25 is for the Epic Loan Program Funding. Funding from this offer is sourced from the 2050 Tax for
Climate and will help the Epic Loans program continue to resource electrification and renewable projects
by buffering interest rates in the Fort Collins on bill financing program. Blending low-cost capital with
capital loans through agreements with private banks has a proven track record of stretching limited low-
cost capital and helps to meet the growing demands of the community. The key to success is to have
enough low-cost capital to blend into the portfolio to help buffer higher bank rates. Adding this offer to the
mix would allow the program to continue to grow and find ways to continue to scale
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budget offers that relate to Environmental Health Outcomes in the Strategic Plan.
Mr. Tholl explained how budget offers become eligible to use funding from the 2050 Tax Appropriation. At
a minimum, a proposed project or program (offer) needed to align with the ballot language to be “eligible”
As an organization, the City always strives to invest resources to achieve multiple outcomes at once, with
the acknowledgement that many of our systems, services, and goals intersect in community members’
daily experiences. Offers that aligned with the ballot language and had multiple benefits were considered
“optimized.” Mr. Tholl noted that this is a long game, and the focus should remain on the foundational and
transformational actions we can take now to become a carbon neutral community. He also said that not
all available revenue from the 2050 Tax is accounted for, which is intentional as staff anticipates Council
wanting to have resources available for the 2026 budget revision process next spring.
MEMO: PLATTE RIVER’S INTEGRATED RESOURCES PLAN
Board members reviewed the drafted memo and discussed some changes they may like to make to the
final copy. Board members Canonico and Smith volunteered to complete the memo.
Board member Wegert moved Board members Canonico and Smith work together to complete the
memo with changes as discussed.
Board member Braslau seconded the motion.
Discussion:
None.
Vote on the Motion: It passed unanimously, 7-0, with two board members absent.
BOARD MEMBER REPORTS
Board member Braslau it is extremely difficult to work with contractors, especially when it comes to
efficiency upgrades. He said there is more to be done in educating and supporting contractors and the
building community.
FUTURE AGENDA REVIEW
In October, the Board will hear a presentation about 2025 utility rates and fees, operational updates from
Light & Power and Energy Services, and the Board will begin drafting their 2025 Work Plan.
ADJOURNMENT
The Energy Board adjourned at 8:08 pm.
Headline Copy Goes Here
Interim L&P Director, Utilities
Travis Walker
Light & Power –
Electrification
Discussion
9-19-24
Brian Tholl
Manager, Utilities Energy Services
Headline Copy Goes Here
The City of Fort Collins and Utilities have
several methods, or “levers”, for making
community progress with electrification.
Managing a diverse portfolio of methods
can optimize:
•Cost effectiveness
•Meeting customer service needs
•Our Climate Future goal achievement
•Reliable, affordable, environmentally
responsible electricity
Methods or "Levers"
Fort Collins Electrification Strategy
Utility Rates
Incentives
Financing
Other City Fees
Distribution Grid
Contractors
& Workforce
Advanced Grid
Management
Policies
Building Codes
Standards
Education
Awareness
Transparency
Technical Assistance
Headline Copy Goes HereFort Collins Electrification Strategy
Utility Rates
Incentives
Financing
Other City Fees
Distribution Grid
Contractors
& Workforce
Advanced Grid
Management
Education
Awareness
Transparency
Technical Assistance
Policies
Building Codes
Standards
Methods are tailored for segments of the
community to be most successful.
•Existing buildings impacts recognized
by economic and behavioral levers.
•New construction impacts mostly
recognized by regulatory and
infrastructure levers.
Areas of Impact
Headline Copy Goes Here
The distribution grid will be evolving
throughout electrification of the
community assets. At this time, Utilities is
well positioned to support community
electrification, and has led in several
ways
•Resource planning efforts
•Asset management plan and CIP
•Distribution impacts studies
DISTRIBUTION GRID
Area of Impact
Area of Impact – Distribution Grid
4
Utility Rates
Incentives
Financing
Other City Fees
Distribution Grid
Contractors
& Workforce
Advanced Grid
Management
Education
Awareness
Transparency
Technical Assistance
Policies
Building Codes
Standards
Headline Copy Goes Here
5
Utilities and PRPA planning efforts
Utilities Resource Planning:
Key takeaways:
•Utilities and Platte River: high confidence in common forecasts for future load growth
•Economic and regulatory levers will impact changes in infrastructure & planning
•Alignment of priorities and workflow
•Using common inputs and assumptions to studies and evaluation
•Including building and transportation electrification in resource planning
Headline Copy Goes Here
6
Asset management and distribution planning
Historical asset management supports electrification through:
• Annual cable replacement program ($375k - $775k per year)
• Annual distribution transformer upgrades ($700k - $3M per year)
• System additions and replacements ($6M per year)
• Distribution automation efforts ($200k per year)
• Software and customer programs ($1M per year)
Key Takeaways:
•Asset management has co-benefit of enabling electrification
•Importance for continued investment to smooth and not need any substantial ramp up
Headline Copy Goes Here
7
CIP and Bond Proceeds Spending
System Concerns:Plan Moving Forward:
•Being prepared for current and future
development projects.
•Having stock to replace existing
transformers.
•Hardening the system to allow for
Beneficial Electrification (BV) and
Electric Vehicles (EV) deployment
across the City.
•Load distribution and optimization.
•Safety.
•Reliability.
•Purchasing transformers to get back
to Pre-Covid stock numbers.
•Increasing Cable Replacement
Projects.
•Expediting a Rear Lot – Front Lot
Conversion Program.
•Off-loading circuits to establish a
better balance between substations.
•Selecting and implementing new
software to help response, efficiency,
and accuracy.
Headline Copy Goes Here
8
Distribution Impacts Studies
Apex Analytics – How electric heat impacts local distribution study
Key study findings:
•Winter peak demands associated with electrically-heated homes are smaller than previously anticipated
•Studying AMI data enhanced our understanding of actual electric loads in winter and summer
•Confirmed building code focus on building envelope will support more community electrification
Lawrence Berkley Labs – Feeder Impacts study
Key study findings:
•Winter peak demand more than doubles (134% growth)and summer peak demand increases by 59%
through 2040.
•Existing feeders do not exhibit substantial thermal overloads through 2040. Planning needs to include
electrification assumptions for infrastructure beyond 2040.
Headline Copy Goes Here
9
Next Steps
•Enhance CIP for strategic
electrification
•Align Asset Management
Strategies with known constraints
•Electric capacity fee evaluation
•Align future state-run IRA rebates
and financing with Utilities programs
•Support Council priority for GHG
reduction and air quality
•Adopt 2024 Building code with
enhancements (Q2 2025)
•Efficiency for buildings through
building performance
standards (BPS)
•Monitor GRIP grant
submission
•New ADMS evaluation
•Program messaging
related to conservation
•Program enrollment and
design enhancements Peak
Partners
•TOD + Tier Elimination
Utilities
222 Laporte Ave.
PO Box 580 Fort Collins, CO 80522
970-212-2900
utilities@fcgov.com
CC: Jacob Castillo, Chief Sustainability Officer; Gretchen Stanford, Utilities Deputy Director;
Katherine Bailey, Energy Services Project Manager
MEMORANDUM
Date: September 3, 2024
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
Travis Storin, Chief Financial Officer
From: Brian Tholl, Energy Services Manager
Subject: Building Performance Standards
BOTTOM LINE
This memo provides additional information on topics identified by Councilmembers during the
June 11, 2024 Work Session, including:
1. City of Fort Collins buildings’ compliance with proposed Building Performance Standards
(BPS) efficiency targets
2. Incremental costs associated with BPS program administration
3. Summary of feedback from the Climate Equity Committee
4. Outline of compliance pathways and support for building owners
Through 2030, staff forecast BPS program implementation, including staffing, technical services
and other resources, will require an additional estimated $4.2 million to implement and achieve
program outcomes. Additionally, for those City-owned buildings not already compliant with
proposed efficiency targets, staff forecast approximately $5.3 million of additional capital funds
will be needed to reach 2030 and 2035 efficiency targets.
BACKGROUND
On April 23, 2024, staff discussed proposed BPS policy recommendations, which would require
commercial and multi-family buildings 5,000 square feet and larger to meet specific efficiency
targets or comply using an alternate compliance pathway. Recommendations exclude buildings
Docusign Envelope ID: A994D4CE-0F76-4514-A050-6271D8DA4D1B
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50,000 square feet and larger that comply with State of Colorado BPS. Councilmembers
showed general support and requested further information on implementation and building
owner support.
At the June 11, 2024 Work Session, staff recommendations focused on the importance of
sufficient support to achieve efficiency targets, including significant building owner education.
City Buildings’ Compliance Status:
Review and evaluation of current City properties confirms that approximately 55% of City-owned
buildings are currently in compliance with the proposed BPS efficiency targets. The table below
represents a summary of buildings covered by proposed efficiency targets, while Attachment 1
provides further detail. City buildings may not fully reflect the buildings in our community (both
property types and management may differ), however, the City’s building portfolio is closer to
reaching proposed efficiency targets than community buildings as a whole.
Table 1: City Building Summary
BPS
requirement
Total
buildings
Number in
compliance
Percentage
in
compliance
Built area
(ft²)
Estimated
cost to
comply
Cost
per built
area
($/ft²)
City-owned
buildings covered
by proposed
efficiency targets
38* 21 55% 603,080 $5,285,200 $8.76
*Some buildings may no longer be owned by the City by target deadlines
The estimated cost to reach compliance for City-owned buildings that do not already comply
with proposed targets is $5,285,200. This estimate includes the full replacement cost of
equipment that is reaching the end of life as well as any other necessary updates within those
buildings. Additional investments will be required for planned and necessary improvements in
other buildings, including those covered by the existing state BPS.
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Staff have included offers in the Budgeting for Outcomes process to align with the City asset
management plan. City staff are currently seeking a third-party consultant to support and review
upcoming projects and align them with local, state and federal funding sources, including both
tax credits and other up front funding resources.
Before efficiency targets were evaluated and included in the proposed BPS policy, Municipal
Code §12-203(c) outlined standard efficiency reductions in City buildings. Councilmembers
provided feedback that City-owned buildings should be subject to the same requirements as the
rest of the community. Staff suggest modifying the existing municipal code should the proposed
BPS be adopted.
Implementation Cost Evaluation:
Efficiency incentives, technical services and other resources to implement the proposed BPS
are available using Utilities enterprise funds. Specifically, 2025/2026 ongoing Offers 15.1 –
Utilities: Light & Power - Wholesale Purchased Power and 7.2 Utilities: Light & Power - Energy
Services fund approximately $3.4 million annually for commercial building energy efficiency
programming.
Evaluation of the likely expenses for administration of the proposed BPS policy confirms that a
successful policy implementation for all community buildings will require an additional average
of $870,000 annually, with expected variation from year to year. The fluctuation is due to
projected increased building owner engagement prior to target years, technical services
deployment and efficiency incentive payments throughout the implementation period. A full
breakdown of the estimated implementation budget and existing planned resources is included
as Attachment 2. Staff are actively considering options for funding of the project, including
potential use of 2050 tax funds beginning during the 2026 budget revision process. 2050 tax
reserve dollars are planned to be in excess of the incremental amount required and may
represent an opportunity for community funding with Council support.
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Included in the estimated implementation budget is an early adopter bonus incentive to
encourage early awareness and engagement, as well as additional incentives for under-
resourced buildings (those with less access to resources necessary to comply). In addition to
one full-time City employee and one half-time employee currently budgeted that will support
program implementation, Staff propose an additional half-time employee, along with additional
technical and vendor support for community building owners.
Staff continue to evaluate funding opportunities, including grants, partnerships, federal
opportunities and more to maximize community resources. An example of funding and tax credit
opportunities is available in the Cost Benefit Analysis submitted with the Council Work Session
on April 23, 2024. Staff plan ongoing annual evaluations of supporting resources should the
policy be adopted, including an in depth analysis of resources and engagement ahead of the
2027 interim target.
Climate Equity Committee feedback:
The Climate Equity Committee (CEC) formed in 2023 as a resource to help guide projects and
programs, as they are being developed or implemented, toward more equitable processes and
outcomes.
The CEC had an initial meeting with BPS program staff in January 2024 to review policy
recommendations and potential equity impacts. Key areas of discussion included outlining how
the CEC can support and inform equity throughout BPS implementation.
On June 24, 2024, BPS program staff met with the CEC to discuss ongoing work defining and
engaging with under-resourced buildings, and a subsequent meeting provided additional space
for questions. Feedback included:
Acknowledge the need to prioritize occupants and tenants of under-resourced buildings
and affordable housing
Tenant challenges: high utility bills, poor communication with landlords, fear of retaliation
if they share challenges
Reciprocity in engagement: be clear about what we offer the community
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Consider collaboration with community consultants
Seek community representatives that are not likely to suffer from engagement fatigue
Acknowledge that embedding long term engagement strategies into the implementation
approach will be critical
The Climate Equity Committee and BPS program staff plan further upcoming meetings to
continue to discuss actionable steps supporting equity and engagement.
Compliance Pathways and Support:
Best practice documents and Community Contributors encourage simplicity in BPS program
design to the greatest degree feasible, while also emphasizing the importance of flexibility.
Compliance pathways outlined below are designed to balance these imperatives. Staff welcome
feedback on both proposed compliance pathways and support for under-resourced buildings.
Compliance pathways:
BPS structure and metrics vary across jurisdictions with existing policies. After deliberating, the
Task Force recommended local BPS compliance pathways focus on meeting efficiency targets.
This approach is supported by other Community Contributors as well for the following reasons:
Efficiency targets allow maximum flexibility, and account for building owners’
preferences (building owners may have their own sustainability goals or planned
upgrades that align with efficiency targets).
Efficiency targets provide a clear forecast of achievable savings.
When paired with appropriate alternate pathways (or ‘safety nets’) efficiency targets
account for the wide variety of functions and usage in buildings.
Efficiency targets reward owners of very efficient buildings.
Efficiency targets are complex, in the sense that many paths forward are possible. However, our
Community Contributors believe that they ensure flexibility, cater to variable building uses, and
represent the best approach for our community.
Deadlines associated with efficiency targets and possible citations follow the timeline in the
table 2.
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Page 6 of 8
Table 2. BPS Targets and Penalty timeline
2027 2028 2030 2031
Interim Target based
on 2027 whole year
data
Citations issued for
missed targets
Target based on 2030
whole year data
Citations issued for
missed target
Alternate pathways:
Alternate pathways provide a ‘safety net’ for buildings that may struggle to reach proposed
efficiency targets. Our Community Contributors stressed the need for maximum flexibility, which
includes alternate pathways when appropriate.
Staff propose the following alternate pathways be included in the local BPS:
Waivers: Exclude certain buildings from requirements (e.g., buildings that have
demolition permits or buildings in financial distress).
Timeline Adjustments: Provide more time to comply when needed (e.g., due to supply
chain disruption). Staff will use consistent criteria to determine eligibility for individual
buildings.
Target Adjustments: Provide alternate efficiency targets when warranted (e.g., historic
buildings may not be able to make the changes needed to meet targets). Staff will use
consistent criteria to determine eligibility for individual buildings.
Caps: Limit the maximum reduction any building would need to make. Find more details
in Community Contributor Recommendations, Work Session Materials April 23, 2024.
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Page 7 of 8
Renewables: Provide credits for buildings with onsite renewables. Find more details in
Community Contributor Recommendations, Work Session Materials April 23, 2024.
Additional support for under-resourced buildings:
Best practice and Community Contributor recommendations support providing additional
resources to under-resourced buildings. Ongoing work throughout 2024 seeks to define and
identify these buildings, and thereafter engage with building representatives (facility managers,
landlords, owners) and occupants to determine their true barriers to increased efficiency.
Community Contributors with subject matter expertise have shared that under-resourced
building owners are likely to benefit from enhanced technical, financial and project management
support, along with customized communication and engagement.
Staff are planning advanced technical assistance, higher incentives, and enhanced
communication and engagement strategies that ensure building owners understand available
resources and how to access them (see Implementation Guide, June 11, 2024 Council Work
Session materials).
Staff anticipate opportunities to learn from impacted parties, especially building owners,
throughout early implementation. That input can impact how we communicate program
information and the potential for implementation process improvements.
NEXT STEPS
Staff continue to partner with the community to develop and deploy resources that support
building owners throughout implementation, acknowledging significant direct support is
foundational to a successful policy. Staff are further engaging the community around program
data and policy specifics, working toward a broader understanding of complex
recommendations across the community. Targeted group meetings with building
representatives to refine technical resources along with broader community meetings to openly
share recommendations and supporting data are under development as Staff continue to define
resources and work to share information and build trust across a wider audience.
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Page 8 of 8
Staff request input from Councilmembers on the proposed policy framework, including proposed
timeline, covered building types and sizes, targets, along with proposed the implementation
plan. Staff would be happy to discuss any feedback or proposed changes in an upcoming work
session, and to continue to share details on ongoing engagement as the policy development
progresses.
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Attachment 1: City building 2023 energy use intensity (EUI) status to 2030 Targets
Local BPS Covered City-Owned Property
Name
Built Area (ft²)2023 EUI
(kBtu/ft²)
2030 EUI Target
(kBtu/ft²)
Meet Proposed BPS
Target
117 N Mason 15,500 41.1 56.4 X
200 West Mountain 11,540 68.0 56.4
212-218 W Mountain 6,225 70.2 71.1 X
214 N Howes 6,917 81.7 69.4
222 Laporte Avenue 36,417 28.2 56.4 X
281 North College 37,603 49.7 56.4 X
Car Barn 15,000 17.8 35.6 X
Carnegie Museum 12,853 65.1 65.8 X
City Hall 31,553 119.4 89.6
Club Tico 12,260 30.5 61.4 X
Collindale Clubhouse 14,660 223.3 219.3
East Park Shop 6,700 32.1 35.6 X
Fleet Services 23,200 58.9 56.0
Fleet Services Annex 11,637 54.7 52.1
Foothills Activity Center 24,445 38.6 61.4 X
Fossil Creek Park Shop 6,550 104.0 110.1 X
Gardens on Spring Creek 9,740 108.4 99.5
Hoffman Mill Vehicle Storage 8,546 87.5 84.4
Hoffman Mill Warehouse 6,471 14.7 35.6 X
Indoor Shooting Range 7,500 113.8 96.7
Loomis Warehouse 20,244 34.9 35.6 X
Mulberry Pool 25,000 290.9 218.2
Museum of Discovery 46,928 41.2 56.4 X
Nix Farm Maintenance Facility 7,552 58.8 50.0
Nix Farm Vehicle Storage 5,000 70.5 59.9
North Transit Center 6,013 99.4 84.5
North-Side Aztlan Center 49,800 41.3 111.5 X
Operation Services 26,564 32.0 56.4 X
Parks Shop 21,075 38.0 43.5 X
Ricker Brothers Warehouse 14,160 59.4 46.6
Southridge Golf Clubhouse 5,000 211.4 179.7
Spring Canyon Park Shop 5,500 105.8 89.9
Traffic Ops 9,500 72.0 67.8
Utilities Vehicle Storage Bldg E 13,475 64.2 109.4 X
Utilities Vehicle Storage Bldg F 10,000 24.3 109.4 X
Utilities Water Meter Shop Building D 10,000 57.6 109.4 X
Utilities Water Vehicle Storage 15,252 46.8 109.4 X
Utility Vehicle Storage Building C 6,700 61.4 109.4 X
This list includes buildings that will not be in the City portfolio by target deadlines due to anticipated sale, demo, other
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Setup /
Upfront
2025 2026 2027 2028 2029 2030 Totals Notes
City Budget - Administration $180,000 $327,660 $341,506 $355,964 $371,059 $386,821 $403,280 $2,186,290
Staff $85,000 $288,660 $301,056 $313,991 $327,488 $341,571 $356,267 $2,014,034 1.5 FTE Existing, 0.5 FTE New - Efficiency Navigator
Resources -software $95,000 $39,000 $40,450 $41,973 $43,571 $45,250 $47,012 $352,255 Building Hub & technology integration
City Budget - Services and Incentives $2,458,832 $4,432,704 $3,127,246 $4,700,707 $3,211,281 $4,104,316 $22,035,086
Technical Services $0 $198,000 $1,045,800 $930,000 $1,435,500 $1,069,500 $1,342,500 $6,021,300 75% covered buildings pursue technical assessment
Rebates and Incentives - Base $0 $1,336,062 $2,004,671 $1,847,626 $2,744,753 $1,800,278 $2,319,943 $12,053,333 10% incentive total project cost
Rebates and Incentives - Additional for Early Adoption $0 $668,031 $1,002,335 $0 $0 $0 $0 $1,670,367 50% rebate bonus for early proejcts in 25/26
Rebates and Incentives - Additional for Under Resourced $0 $256,739 $379,898 $349,620 $520,454 $341,503 $441,873 $2,290,087 200% rebate bonus for Under Resourced Buildings
City Budget Program Total $2,786,492 $4,774,211 $3,483,209 $5,071,766 $3,598,102 $4,507,596 $24,221,376
Forecasted budget available $3,451,423 $3,445,011 $3,430,588 $3,417,200 $3,405,353 $3,383,072 $23,743,727
Personnel & administrative $240,343 $261,731 $273,138 $285,047 $297,482 $310,467 $1,668,209 From Offer 7.2 - Energy Services Ongoing Offer
EW Business Techncial assistance budget for Fort Collins $575,520 $586,560 $598,560 $610,560 $622,560 $622,560 $4,191,840 From Offer 15.1 - Wholesale Purchased Power
EW Business Incentives budget for Fort Collins $1,990,560 $1,950,720 $1,911,840 $1,873,440 $1,836,000 $1,799,520 $13,352,640 From Offer 15.1 - Wholesale Purchased Power
CFC Business Incentives Budget $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $3,500,000 From Offer 7.2 - Energy Services Ongoing Offer
Marketing & awareness $20,000 $21,000 $22,050 $23,153 $24,310 $25,526 $156,038 From Offer 7.2 - Energy Services Ongoing Offer
Software and Tools $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $875,000 From Offer 7.2 - Energy Services Ongoing Offer
Difference $664,931 -$1,329,199 -$52,621 -$1,654,566 -$192,749 -$1,124,523 -$3,688,729
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2025 2026 2027 2028 2029 2030
BPS Implementation Budget
Budget Available Estimated Budget
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Utilities Customer Connections
222 Laporte Ave.
PO Box 580, Fort Collins, CO 80522
CC: Cyril Vidergar, Sr Assistant City Attorney, Travis Storin, Chief Financial Officer
WORK SESSION MEMORANDUM
Date: 09/20/2024
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
Gretchen Stanford, Utilities Deputy Director
From: Brian Tholl, Energy Services Manager
Leland Keller, Senior Energy Services Engineer
Subject: 6/25/2024 Staff Report for Riverside Community Solar Project
BOTTOM LINE
The purpose of this memo is to address questions from the Council Work Session held
on June 25, 2024, and to provide more background on the City’s acquisition of the
Riverside Community Solar Project.
All Councilmembers were present and in person during the work session.
DISCUSSION SUMMARY
Staff presented a summary of the August 2023 inverter failure which has caused the
array to stop producing electricity. Council raised additional questions related to the site
and requested more background on the following:
• Acquisition of Riverside Solar assets
• Benefits of City acquisition
• Bill credits and Operations & Maintenance fund
• City Financial obligation to panel owners
• Community solar business models
• Strategic funding plan
Acquisition of Riverside Solar assets
The City acquired the Riverside Project and Community Solar Program from Clean
Energy Collective (CEC) in 2020. At the time, Council supported Resolution 2020-055
authorizing the acquisition of the Project.
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Several factors led to the City staff choosing to pursue this action in 2020 .
First, the implementation of the Time of Day (TOD) electricity rate in October 2018 had
a direct impact to the bill credits provided to panel owners and the administrative
requirements for customer payments. CEC objected to applying the TOD rate structure
to the Riverside Project, even though the City had provided CEC with advanced notice
of the planned rate structure change. Additionally, the City’s agreement with CEC
recognized that rates would change during the life of the project. This information about
rate changes was available at the time of contracting and their signing of customer
subscription agreements.
CEC’s administrative software could not support the monthly bill credit calculation and
online representation of value to participants with a seasonally varying two-tier credit
rate structure. This shifted the burden of calculating monthly credits from CEC to a
manual process performed by Utilities staff.
After months of negotiations with CEC seeking a resolution, acquisition of the Project
emerged as the most expedient way to both resolve the dispute with CEC and reduce
interruption of generation and credit calculation for panel owners.
Finally, during negotiations regarding the proposed Project transfer from CEC to the
City, CEC revealed facts about imminent bankruptcy filings. This affected the nature of
the transaction and provided motivation to accelerate the closing timeframe.
Benefits of City Acquisition
In addition to resolving the dispute with CEC, Utilities recognizes several other benefits
from the acquisition of the Project:
• Improved customer service was achieved because of simplifying the relationship
between participants and Utilities.
• Streamlined site maintenance.
• Elimination of manual tasks by automating and simplifying monthly bill crediting.
• Better alignment with the Platte River Power Supply Agreement:
o According to the all-requirements Platte River Power Supply Agreement,
the City was required to pay the Value of Solar tariff rate for solar energy
purchased from CEC for Project energy delivered under the joint power
purchase agreement between the three parties. By assuming ownership of
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the Project, Project energy production is not subject to this tariff. At the
time of the acquisition, Utilities quantified roughly a $0.02/kWh produced
premium due to PRPA for all third party owned solar generation, resulting
in an approximate $20,000 annual Utility benefit for assuming ownership
of Project assets.
• Risk mitigation:
o Acquisition resulted in mitigated risks, such as avoiding interruptions to
Project operations and potential liquidation of its assets during the CEC
and affiliated companies’ bankruptcies in 2020.
o Had the City not acquired the Project, it would have been bound by
operating agreements with CEC which would have constrained the City’s
ability to respond in the best interests of our customers through CEC
bankruptcies and unknown final asset ownership.
o The City and Project participants could have faced a void of program
support for an unknown period of time that would certainly have delayed
repair operations in response to the inverter failure.
Bill Credits and Operations & Maintenance Fund
Similar to how Utilities purchases wholesale electricity from PRPA, Utilities also
purchases excess generation from locally generated solar power that flows into the
distribution grid. Utilities annually submits a budget offer for Community Renewable
Purchased Power (Offer 7.1 for 2025 / 2026 Budget).
Utilities purchases electricity from local generating resources including:
• Commercial and residential net metered customers, totaling over 32 MW (DC)
• Local Solar Power Purchase Program (SP3) systems, totaling 4.8 MW (DC)
• Riverside Project, total of approximately 0.5 MW (DC).
The City is responsible for distributing bill credits to Riverside participating panel owners
and managing an operations and maintenance fund (O&M Fund) to support the ongoing
operations of the Project. Per the participating customer agreement, each month, 9.4%
of the total bill credits go into an O&M fund managed by Utilities. This contribution
amount is set in the Program Rules and is subject to change as needed. In other words,
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Riverside participating owners contribute a portion of their monthly energy credits to the
operations and maintenance required at the site.
Table 1. Representative energy credit payments from annual Project budget:
Total energy budget value O&M fund contribution Customer credits
$67,765.00 $6,356.36 $61,408.64
Summary of City financial obligation to panel owners
The Program Rules & Obligations with participating owners include the following:
1. The Riverside Community Solar Program Rules outline that bill credits are
only provided for energy delivered to the grid. Section 6 of the Rules
discusses O&M Services and funding. It clarifies that if output of the array
is interrupted, no compensation is due to participants for those
interruptions or any variations in solar output (sec. 6(a)ii). Furthermore, the
O&M Fee is subject to change at the Utility’s sole discretion for the
purpose of maintaining an adequate balance in the O&M Fund to provide
for operation, maintenance of the array and site, and decommissioning of
the array at end of life.
• The Program Rules indicate that any costs of operating and maintaining the
Project that exceed the amount collected in O&M Fees will be the obligation of
Owners to pay (sec. 6(c)). If the expense to repair, replace or decommission the
Project exceeds funds available in the O&M Fund and/or from any casualty
insurance proceeds, (Utilities) reserves the right to seek additional funds from
Owners to cover such expenses, or to suspend or permanently cease offering
the Program (sec. 6(d)).
• Neither CEC nor the City provided any guarantee to prospective panel owners for
any return on the financial expense to purchase their panels.
Replacement Funding Solution - 2050 Tax:
• The electricity produced at Riverside not only benefits participating solar owners,
but importantly, this local solar generation benefits the broader community in our
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pursuit of 100% renewable electricity. Funding the repair using the 2050 tax
aligns with the ballot language in advancing the community toward 100%
renewable electricity. Repowering Riverside using 2050 tax funds reaffirmed the
City’s commitment to advancing the Our Climate Future goals, represented a
timely funding solution for accelerating the repowering and has maintained
relationships with participating solar owners.
Community Solar business model
For many community members, installing and maintaining residential rooftop solar on
their own property is not feasible. It is for this accessibility reason, along with a strong
desire to contribute to our climate initiatives, that community solar programs have
garnered significant interest in Fort Collins. Through multi-year engagement efforts,
Utilities was able to identify enough interest in community solar prior to the pursuit of the
Riverside Project. It should be noted that even today, we continue to gain feedback from
the community of significant interest in growing community solar and have a waiting list
of interested individuals if that growth occurs.
3rd Party Ownership & Management Benefits:
2. Establishing the Program and constructing the physical Project presented
many challenges outside of the normal scope of operations for the Fort
Collins distribution focused electric utility. A common approach is to
leverage a 3rd party owner and operator for solar assets.
• The 3rd party chosen, CEC, promised the necessary solutions for our Utility:
addressing the complexity of participant recruiting, sales, enrollment, program
management and customer support, including a web -based platform delivering
valuable information about operations and credit calculation for the participants.
• Additionally, this model allowed customers the opportunity to take the 30%
Federal tax credit on the modules they purchased, while diversifying the
operational risks of individual shares.
Once Utilities acquired the Project from CEC, staff generated new Program Rules and
an Enrollment and Continuing Participation Agreement to replace the governing
documents of the expired CEC Program. These documents were written to align closely
with the original CEC document language and the operating expectations under which
our customers purchased Project interests. However, updates were made that also
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incorporated the necessary adjustments for the City Charter and other differences from
the private corporate entity governance model.
Strategic Funding plan
Staff recognizes the fundamental differences in a private corporate entity managing the
Project compared to a model where a local government and utility are now managing
the project. Staff will be developing a clear plan to guide decision-making on the City-
owned assets at Riverside. This is a unique situation in which the City now owns assets
and systems established by a former private corporate partner. Staff can develop
financial models to support replenishing the O&M Fund to cover either decommissioning
or repowering options that will be contemplated when the existing Program Agreement
terminates in 2040, referred to as the Initial Useful Life of the Array. We will gather input
from the Riverside Owners Advisory Committee and staff will refine proposals for
revising the O&M withholding schedule to ensure the solvency of the O&M Fund.
NEXT STEPS
Staff are focused on redesigning and repowering the Project in partnership with the
Service Provider. Staff will also be meeting with the Riverside Community Solar
Advisory Committee to provide schedule updates, present the details of the design
developed in Phase 1, and discuss any concerns brought by Committee members. Staff
also commits to regularly providing updates to participating owners through regular
website and email updates.
Staff will provide a memo to Council upon conclusion of the work to replace the failed
inverter.
FOLLOW-UP ITEMS
Staff will provide a memo to Council in 2025 outlining the policy solutions to long-term
asset management in the Community Solar Program.
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2Action Item
Does the Energy Board support the
following proposed changes to the
2025 electric rates and fees?
3Action Item
PRPA
63%
L&P Operations
PILOTs
Admin Services - CS&A
5%
Internal Transfers Out
Addition/Replacement
4%
Capital(other than Sys
Add)
4%
3%
Purchase Pwr - Community Renewables
1%
Other Payments & Transfers
1%
Admin Services - General Fund
1%
Light & Power Total Expenses for 2023 - $158.5M
42025 Utility Rates & Fees
UTILITY 2025 RATE
INCREASE
2025 PLANT INVESTMENT FEE
INCREASE
ELECTRIC 6.5%9.3%
WATER 7%0%
WASTEWATER 6%0%
STORMWATER 6%1.5%
52025 Utility Rates
•Distribution system additions
•Substation improvements/expansion
•Transformer/cable/duct bank replacement
•Technology enhancements/replacements
6Rate Class Adjustments
7Action Item
2031 and beyond include
•Potential wholesale rate increases
•Higher long-term distribution system capital needs
•General inflationary cost increases to cover operations & maintenance
82025 Utility Rates
Fort Collins Utilities
Comparative Residential Monthly Bill
Utility 2024 2025 $ Change % Change
$ 88.42 $ 94.16 $ 5.75 6.5%
$ 53.04 $ 56.75 $ 3.71 7.0%
$ 36.97 $ 39.18 $ 2.22 6.0%
$ 23.09 $ 24.47 $ 1.39 6.0%
$ 201.51 $ 214.57 $ 13.06 6.5%
92025 Utility Rates
2025 Residential Average Monthly Utility Bill
Utility Electric Water Wastewater Stormwater Total
2025 2025 2025 2025 2025
Ft Collins $ 94.16 $ 56.75 $ 39.18 $ 24.47 $ 214.57
Longmont $ 88.01 $ 72.99 $ 41.33 $ 16.70 $ 219.04
Loveland $ 100.83 $ 61.76 $ 42.89 $ 25.48 $ 230.94
Colorado Springs $ 103.28 $ 103.25 $ 33.27 N/A $ 239.81
Greeley $ 100.81 $ 77.91 $ 38.57 $ 35.36 $ 252.66
Boulder $ 100.81 $ 72.19 $ 51.32 $ 28.47 $ 252.79
102025 Development Fees
•Green Energy Program
•Program launched in 1998
•Increased community's installed
renewable energy capacity
•PRPA ended Tariff 7
•Medical Assistance Program (MAP)
•Relatively low participation rate
•Transition customers to IQAP
Eliminating Two Utility Programs
1
2Action Item
Does the Water Energy Board support
the following proposed changes to the
2025 electric rates and fees?
For More Information, Visit
THANK YOU!
fcgov.com/utilities
Energy Board Agenda Item Summary – City of Fort Collins Page 1
October 24, 2024
Energy Board
STAFF
SUBJECT
Items Relating to 2025 Utility Rates & Fees
EXECUTIVE SUMMARY
proposed 2025 Utility rate and fee updates being brought forward
on November 4 (Rates) and November 19 (Fees), to become effective on
5, including the following items:
• Rates - monthly utility rates are proposed to increase 6.5% for Electric customers, 7% for Water
customers, 6% for Wastewater customers, and 6% for Stormwater customers.
• Fees - adjustments to utility development fees including 9.3% for Electric Capacity Fees (ECFs)
and 1.5% for Stormwater Plant Investment Fees (PIFs). There are no proposed changes for
Water PIFs or Wastewater PIFs.
• Eliminate the Medical Assistance Program (MAP) and the Electric Renewable Energy Source
(Green Energy) Program.
STAFF RECOMMENDATION
Staff is requesting support from the Energy Board regarding electric rate and fee updates for 2025 and
recommends adopting the changes as proposed.
BACKGROUND / DISCUSSION
2025 Electric Rates
The revenue needed to support the ongoing operation and maintenance costs of providing each of the four
essential utility services provided to customers are collected through monthly utility rates. As costs change
over time it is necessary to adjust rates to reflect those changing costs. Long-term financial planning is
Energy Board Agenda Item Summary – City of Fort Collins Page 2
important to ensure revenues are adequate and reserves are available to maintain and replace
infrastructure in a timely fashion to continue to provide high-quality and reliable utility services to our
customers.
A summary of the proposed rate increases for the four utility services are shown in the table below.
These increases are included in the 2025 City Manager’s Recommended Budget.
Staff are proposing a 6.5% retail rate increase for the electric fund in 2025. Many factors impact the net
increase, including higher wholesale rate projections for 2025, higher operations and maintenance costs
related to the electric distribution system, as well as higher capital project costs. Wholesale costs for
2025 are anticipated to increase by 6.5% overall from PRPA.
Frequent review and updating of the cost-of-service allocation models helps maintain equity across rate
classes and helps to reduce the impacts on customers by providing gradual, modest rate adjustments
over time rather than less frequent and larger rate adjustments. Every two years, staff updates the
electric cost of service model, which accounts for changes in consumption, demands, costs, and load
factors. These actions help ensure the delivery of current and future utility services occurs in a fiscally
responsible manner, balancing both costs and levels of service with affordability and prudent planning
and investments.
The updates proposed for each rate class for 2025 are shown in the graph below, which range from 5.2%
to 6.9%, depending on the rate class. The dark horizontal line represents the average 6.5% increase for
the electric fund. Given the frequency of these updates, there are generally relatively minor adjustments
necessary. There are many factors that go into these updates, including how load factors change across
rate classes, consumption increases or decreases, and average demand during coincident peak hours,
which accounts for the wholesale demand cost allocation by rate class.
Energy Board Agenda Item Summary – City of Fort Collins Page 3
The graph below shows the evolution of the Electric CIP between the 2016 budget cycle and the 2023
CIP. The current 10-Year CIP consists of ~$360M of identified capital investments. Capital projects
related to the electric distribution system include general system additions, substation improvements and
expansion, transformers, cable and duct bank replacement, as well as technology enhancements and
replacements.
In 2023, the largest expense for the electric fund was wholesale power costs, which equates to roughly
two-thirds of total expense, while capital projects account for just under 10% of total electric fund
expenses. The percentage of capital expense is expected to increase in the coming years and is a
significant driver for future rate increases in the electric fund.
Energy Board Agenda Item Summary – City of Fort Collins Page 4
The long-term financial model has been updated for the electric fund. The current annual rate forecast
for the electric fund through 2033 is shown below. Given the projected rate pressures related to
wholesale costs, capital projects and other increasing operational and maintenance costs, it may be
necessary to implement rate increases as high as 7-8% in future years.
The table below shows the impacts of the proposed rate change to the average residential monthly bill.
Under the proposed rate changes, a residential customer’s total utility bill, for a customer receiving all
four municipal utility services, would increase by 6.5%, or $13.07 per month.
The table below compares typical residential electric, water, wastewater, and stormwater monthly utility
bills across neighboring utilities along the Front Range, based on proposed 2025 rate adjustments and
charges. In total, Fort Collins Utilities comes in the lowest at $214.57 for all four services. With proposed
increases for 2025, Fort Collins will remain the lowest overall, as there are known increases proposed
amongst the other bordering utilities for 2025, with some of them being substantially higher than the
percentage increases proposed for customers within our community.
2025 Utility Fees
Utility 2024 2025 $ Change % Change
Electric 88.42$ 94.17$ 5.75$ 6.5%
Water 53.04$ 56.75$ 3.71$ 7.0%
Wastewater 36.97$ 39.19$ 2.22$ 6.0%
Stormwater 23.09$ 24.48$ 1.39$ 6.0%
Total Average Bill 201.52$ 214.59$ 13.07$ 6.5%
Comparative Residential Monthly Bill
Fort Collins Utilities
Energy Board Agenda Item Summary – City of Fort Collins Page 5
Development fees are the mechanism for Utilities to recover the impact of adding new demand to the
services Utilities provides, including electric, water, wastewater, and stormwater. Plant Investment Fees
(PIFs) are one-time charges for new development or re-development. These fees recover costs for
excess capacity of infrastructure already in place to serve new customers based on the “buy-in”
approach, where customers pay according to new demands they will put on the system and considers
incremental costs of future infrastructure to serve them. Utilities has been experiencing significant cost
increases for various items, particularly on the electric side with purchases such as electric transformers,
which have increased substantially due to supply chain issues and higher material costs.
Staff updates development fee models every two years. Each model was last updated in 2023 to capture
current inputs, including current escalation factors in each of the various drivers including costs,
consumption, and future system needs. In alternating years, when models are not updated, an
inflationary adjustment is applied to utility development fees. Staff uses the Engineering News Record
(ENR) construction cost index to apply adjustments.
The 2023 model updates were not fully implemented in January 2024. Rather, in March 2024, Council
supported increasing development fees, including the Electric Capacity Fees, Water PIFs, Wastewater
PIFs, and Stormwater PIFs, by 7.4% as an inflationary adjustment. For 2025, staff is incorporating a
1.9% inflationary adjustment, in addition to the 2023 study update adjustments.
There is no proposed change to Water PIFs or Wastewater PIFs for 2025, as the increase put into effect
in March was similar to the combined 2023 model update percentage and the proposed 2025 inflationary
percentage. Stormwater PIFs will need a minor increase of 1.5% to balance the 2023 model update and
the 2025 inflationary percentage with the increase that was applied back in March.
The table below shows the proposed increase for 2025 for each of the development fees by fund.
Utility Fee Unit of Measure 2025 Proposed Increase
Electric Capacity Fee (ECF) $ / kW 9.3%
Water Plant Investment Fee (PIF) $ / GPD 0%
There are many variables in calculating the average impact to a development, particularly between
residential and commercial. Shown in the table below is an example of a single-family residential house
receiving all four services from Fort Collins Utilities. The total utility development fee charge is expected
Energy Board Agenda Item Summary – City of Fort Collins Page 6
to increase by approximately $261 in 2025, from $11,911 to $12,172. This equates to an overall blended
increase of 2.2% for these one-time fees.
2025 Administrative and Program Changes
The following changes are taking place to align with the 2025 Utilities Rates and Fees update included in
Chapter 26 of municipal code to be effective January 1, 2025. The changes support simplifying the Utility
rates and billing experience and reducing administrative burden.
Medical Assistance Program (MAP):
At the beginning of 2024, Utilities staff reviewed the Medical Assistance Program (MAP) and has decided
to sunset the program and transfer program participants to the Income-Qualified Assistance Program’s
(IQAP) reduced utility rate as it provided a greater benefit for the majority of participants.
Customers were informed of this change in June 2024 via letter, and two information sessions were held
for MAP participants to discuss this update in July 2024. All MAP customer accounts have since been
updated to the IQAP electric, water, and/or wastewater reduced rates. Customers will be encouraged to
apply for LEAP to continue to receive the reduced utility rate and receive the added benefit of heating
assistance. A renewal application will be mailed to customers who do not apply for, or are ineligible for
LEAP, post LEAP season to continue to receive the reduced utility rate through an alternate entry point.
Renewable Energy Source (Green Energy) Program:
Utilities is ending the Renewable Energy Source (Green Energy) Program, where subscribers can opt-in
to purchase clean, renewable energy for an additional 1.6 cents per kilowatt-hour (kWh), in addition to
their normal electric utility bill. The change will result in simplified rate administration and better alignment
with the Our Climate Future goals to bring 100% renewable electricity to all community members.
Subscribing Utilities customers were notified in October 2024 of this change through direct mail to their
account address.
Since its launch in 1998, the Green Energy Program has played a role in helping us increase the
community's installed renewable energy capacity. At its inception, the program funded the 20-year
purchase of electricity output from a single wind turbine. Over 25 years later Utilities collaborates with
2024 Fee 2025 Fee $ Change % Change
200-amp Electric Service 2,625$ 2,869$ 244$ 9.3%
3/4" inch Water PIF (6,000 sq ft lot)3,817$ 3,817$ -$ 0.0%
4" Wastewater PIF 4,339$ 4,339$ -$ 0.0%
Stormwater PIF (6,000 sq ft lot, 0.7 runoff coeff)1,130$ 1,147$ 17$ 1.5%
Total 11,911$ 12,172$ 261$ 2.2%
Residential Development Fee Example
Energy Board Agenda Item Summary – City of Fort Collins Page 7
Platte River Power Authority’s resource planning team, to achieve renewable resources at scale,
including a future portfolio with 600 MW of solar and 885 MW of wind. All the energy purchased through
the Green Energy Program lifetime could power 63,000 homes for a year.
Revenues from this rate have declined due to both lower participation and the $/kWh rate since program
inception. In 2023, revenues totaled $184,951, or approximately 0.1% of Light & Power revenue.
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DUTIES & FUNCTIONS (Sec. 2-106)
The duties and functions of the Board shall be:
(1) To advise the City Council and staff regarding the development and implementation of the Our Climate
Future Plan (OCF) including tracking of the staff developed Council Action Roadmap for OCF;
(2) To advise the City Council and staff in developing City policies that encourage the incorporation of energy
conservation and efficiency, carbon emissions reduction and renewable energy into the development and
provision of City utility services, the design and construction of City transportation projects, and the way in which
the City impacts the overall built environment within the community;
(3) To advise the City Council and staff regarding the alignment of energy programs and policies with City,
ratepayer and community values and service delivery expectations;
(4) To advise the City Council and staff regarding the recommendations for improvements to City energy
systems;
(5) To coordinate with other City boards and commissions regarding energy issues;
(6) To advise the City Council and staff regarding budgetary, rate-making and operational matters related to the
electric utility; and
(7) To annually review and provide advice to City Council and staff on the City's Legislative Policy Agenda
regarding energy and energy-related carbon issues.
WORK PLAN
Climate Emergency
City Council has established the "Climate Emergency" as a priority. The use of this term implies the utmost
importance and of highest urgency. The Energy Board agrees with this language and aims to advise Council
on its implications: namely that Climate Action should guide all Council decisions and that all City actions, in
particular the budget, should be viewed through the lens of impact on our region's Greenhouse Gas Emissions.
Council should at the same time be focusing resources to increase community resilience to changes that will
occur, regardless of meeting greenhouse gas emission goals. The resilience preparations should include energy
generation and transmission, water supply, and critical infrastructure. – Functions (1, 2, 3, 4, 5, 6, 7)
Implementing Our Climate Future (OCF)
The Energy Board desires City Staff to develop plans that the Board could recommend to City Council, to:
1. Support Utilities acceleration of energy programs for efficiency, conservation, demand response,
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distributed generation and storage. Programs should increasingly focus on carbon emission mitigation,
load shaping and grid flexibility while simplifying the customer experience. Ensure that opportunities
span residential and commercial segments for both existing buildings and new construction. –
Functions (1, 2, 3)
2. Improve energy access support for low-income and historically underrepresented groups in the City
through programs, including promoting increased customer participation, support levels, and pursuit of
program longevity for the Income Qualified Assistance Program. – Function (4)
3. Support staff and Council with the implementation of strategies articulated in the City Council OCF
Action Roadmap (October 2022 and as updated), including emissions related to transportation and the
built environment. – Function (2)
4. Address the impact of land-use policies on energy consumption and production including an
examination of metro districts as well as the feasibility of energy districts. – Function (3)
5. Promote effective handling of variable and distributed sources and loads with the ongoing evolution of
the Light & Power distribution system. This includes customer load flexibility, advanced distribution
system management, and future energy market coordination. – Functions (4, 6)
6. Encourage and prepare for the electrification of transportation (electric vehicles of all types) and building
systems (space heating, water heating, cooking and industry). This will include education for customers
and trade allies, supply chain engagement, changes to codes and potential upgrades to distribution
infrastructure, as well as grid management. – Function (2, 4, 5)
7. Accelerate the conversion of City-owned equipment from gasoline to electric; reccomend the City to
include electrification as a condition to award maintenance contracts, in particular in the elimination of
2- and 4-cycle gasoline powered equipment used by the City or by subcontractors in the maintenance
of green spaces. Work with suppliers to stock and to promote electric rather than gasoline equipment.
8. Encourage development of strategies and programs supporting the implementation of Our Climate
Future Next Moves related to Distributed Energy Resources (including but not limited to virtual power
plants, microgrids, battery storage, interactive demand response, housing, rate structures, energy
codes, community solar, benchmarking and electrification). – Functions (2, 4, 5)
9. To seek advancement in transportation and building energy efficiency by steering code and policy at
the City level and beyond to reduce energy consumption and emissions in current and future
development – Functions (2, 3, 7)
Cost of Service and Rate Structures
Substantial changes in rate structures have occurred with time-of-day and income-qualified rates. More changes
are coming as we will likely need to respond to new net metering statutes, wholesale rate structures and market
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considerations. In addition, considerable efficiency gains both past and future suggest a new emphasis on cost
of service, rather than just rates. It is important to evaluate how rates differentially affect customers across the
City, such as low-income customers and those with electric homes. The Energy Board will work with City Staff
to recommend rate structure changes. – Functions (2, 6)
For Distributed Energy Resources (DERs), soft costs such as permitting and development fees, which may
inhibit growth, should also be considered by the board. – Function (2)
Diversity, Equity & Inclusion
The Energy Board continues to promote diversity, equity, and inclusion on the Board, and to encourage the
maintenance of a full Board with reasonable Board Member retainment period(s) that encourages stability,
learning opportunities, and equal representation across the broad stakeholders within the community of Fort
Collins. The Board follows the Fort Collins Respectful Workplace Policy and wishes to continue training
opportunities for creating positive work environments so that all feel welcome, involved, and respected. –
Function (3)
Engaging Beyond the Energy Board on Related Topics
The Board encourages heightened consideration of energy-related integrated topics, systems, and locations to
develop solutions that meet the various needs within the community. In order to meet emission and electrification
goals, engagement with other related City Boards, Platte River member owner communities, and relevant
County and State-level representatives is important to enhance awareness, collaboration, and support. As such,
board members are encouraged to attend other city sanctioned board meetings and to report on those
proceeding at the monthly Energy Board meetings. Each Board Member brings a specific community
understanding to the Board and is an important tool to give voice to diverse perspectives. The Board reinforces
the goal of equitable representation regardless of gender, status, race, etc. – Function (5)
Protecting Light & Power Assets & Customers
Light & Power owns and operates an expensive electrical distribution system that needs constant maintenance.
Much has been accomplished recently: The maintenance inspection and asset inventory plans, and the contact
voltage survey are good examples. The Energy Board desires that Light & Power continue to review current
procedures; make recommendations to maintain the reliability of the distribution system operation; to meet future
growth; and sustainably manage energy assets. – Functions (4,6)
Light & Power’s business model faces challenges from a transition to more distributed and renewable resources,
ongoing energy efficiency increases, and electrification and electricity markets. These actions provide benefits
to the community while also bringing new risks and opportunities for the utility’s operations and finances. –
Functions (4, 6)
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Ongoing Responsibilities
1. The board wishes to be involved early and often in the Budget process, in order to make timely and
effective recommendations on funding priorities. – Function (6)
2. Review and provide advice to City Council and staff on the City’s Legislative Policy Agenda related to
energy issues. – Function (7)
3. Engage with and advise Fort Collins’s representatives on the Platte River Power Authority’s Board of
Directors to continue the advancement of the City’s energy, climate, and air pollution goals, including a
100% renewable resource mix by 2030. In addition, the Board may consider the development of
additional goals related to Platte River generation carbon emissions that represent the values of the
Fort Collins community and Fort Collins equity ownership of Platte River. – Function (3)
4. Other items that are brought before the board.