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HomeMy WebLinkAbout11/14/2024 - ENERGY BOARD - AGENDA - Regular Meeting ENERGY BOARD REGULAR MEETING November 14, 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 OCTOBER 24, 2024 MINUTES 4. [5:45] MOBILE HOME EFFICIENCY DEMO SUMMARY (45 Min, Discussion) Glenn Pease, Senior Supervisor, Mechanical Engineer 5. [6:30] MEMO: 2026-2031 RATE INCREASE FORECAST (30 Min, Decision) 6. [7:00] APPROVE 2025 WORK PLAN (30 Min, Decision) 7. [7:30] BOARD MEMBER REPORTS (5 min.) 8. [7:35] FUTURE AGENDA REVIEW (5 min.) 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. Online Public Participation: The online meeting will be available to join at approximately 5:15 pm, November 14, 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 Teams session to ensure all participants have an opportunity to address the Board or Commission. To participate: • You do not need a Microsoft account or the Teams App to join or participate in the meeting. • Use a laptop, computer, or internet-enabled smartphone. (Using earphones with a microphone will greatly improve your audio). • Keep yourself on muted status. ENERGY BOARD REGULAR MEETING 9. [7:40] ADJOURNMENT ENERGY BOARD REGULAR MEETING HOW TO JOIN A TEAMS MEETING WITHOUT A MICROSOFT ACCOUNT: You can join a Teams meeting anytime, from any device, whether or not you have a Teams account. If you don't have an account, follow these steps to join. 1. Go to the top of the agenda and select: Click here to join the meeting. 2. That'll open a web page, where you'll see two choices: “Continue on this browser” and “Join on the Teams app”. You do not need to install the Teams app to join the meeting. 3. If you join the meeting on your browser, Microsoft Edge or Google Chrome will both work. Your browser may ask if it's okay for Teams to use your mic and camera. When you select Allow, you should always turn off your mic and/or video once you join the meeting. 4. When you're ready, select Join now. 5. Tip: Join the meeting up to 15 minutes before the meeting start time to test your setup, troubleshoot, or see how Teams works. Meeting organizers and participants won't be notified that you've joined the meeting until 15 minutes before the scheduled start time. ENERGY BOARD October 24, 2024 – 5:30 pm 222 Laporte Ave – Colorado Room ROLL CALL Board Members Present: Alan Braslau, Frederick Wegert, Wendell Stainsby, Scott Canonico (remote), Brian Smith, Marge Moore (remote), Jeremy Giovando Board Members Absent: Thomas Loran OTHERS PRESENT Staff Members Present: Christie Fredrickson, Brian Tholl, Randy Reuscher (remote), Phil Ladd, Michael Authier (remote) Members of the Public: Alecia (remote), Reid Fellner (remote), Ella Smith (remote) MEETING CALLED TO ORDER Interim Chairperson Smith called the meeting to order at 5:30 pm. ANNOUNCEMENTS & AGENDA CHANGES None. PUBLIC COMMENT None. APPROVAL OF MINUTES In preparation for the meeting, board members submitted amendments via email for the September 12, 2024, minutes. The minutes were approved as amended. STAFF REPORTS Energy Services Operational Updates Brian Tholl, Senior Manager, Mechanical Engineer 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, and reliable, affordable, environmentally responsible electricity. Board member Braslau commented that in many cases, one of the barriers to adoption is that many of the existing houses can’t support electrification efforts without fairly costly renovations and electrical system upgrades. Mr. Tholl said staff recognizes that, and in early 2025 a new efficiency works incentive rebate will be introduced for new panel upgrade. The requirements that will align with the requirements that staff foresees coming through the state as well. Staff also recognize that a balanced approach across all of these strategies is needed. This goes across all parts of the community when we're talking about the built environment, be it commercial, single family, multi family, it also applies to resources, the distribution grid, transportation, electrification, and even small engines (such as lawn equipment). There are three different areas of electrification related to the grid that we've been focused on historically ENERGY BOARD REGULAR MEETING and are outlined here. Collaborating with Platte River on resource planning efforts; some of the asset management plans and capital improvement plans have been informed and modified due to electrification. Staff is also doing studies and looking at a lot of the data that's coming from the advanced metering infrastructure (AMI) and creating bookends. For example, how are the worst or the most poorly heated homes (like baseboard electric heat) performing compared to the some of the highest performing homes, and outlining the actual electric use required in a wide variety of electrically heated homes. Staff is looking to put a finer point on how to plan for future growth of the distribution grid as well as how to modify, update, and incentivize upgrades to the existing homes, businesses, and the built environment. Board member Giovando asked if there are capital projects that may be impacted by this analysis. Mr. Tholl said in the past, capital projects are planned independently of these planning studies, so there is a bit of a disconnect between what is put in the ground versus what the trends are showing. Now, City Staff is making a consorted effort with Platte River to puta substantial amount of detail in their planning processes for electrification and DER forecasting, but there is still a lot of work to be done to move out of the reactive to the proactive. Building Performance Standards Memo Update (Packet Item Only) Brian Tholl, Senior Manager, Mechanical Engineer Board members reviewed the materials ahead of the meeting and asked a few clarifying questions. Board member Smith asked what the average payback is per project on the City-owned buildings. Mr. Tholl said he is unsure how Operations Services weighs the upgrades, it’s not necessarily an ROI-based decision, which also holds true throughout the community. Board member Braslau noticed there are several City buildings, but not all are included such as Mulberry Pool, and EPIC. Mr. Tholl said some buildings are subject to state requirements (50k square feet and above), so those buildings were removed. Staff is trying to keep the conversation focused on our smaller local buildings. Riverside Community Solar Garden Update (Packet Item Only) Brian Tholl, Senior Manager, Mechanical Engineer Board members reviewed the materials ahead of the meeting and asked a few clarifying questions. Mr. Tholl added that the City has been hosting a Panel Owners meeting every 6 weeks. He also clarified that the City is not pursuing a warranty claim after Schneider Electric denied the claim based on “unauthorized contractor” work prior to the City taking ownership. Board member Canonico asked if the City will pursue community solar projects in the future. Mr. Tholl said the City is leery based on their experience with this project, but many valuable lessons have been learned along the way. It hasn’t stopped staff from continuing to explore that kind of project, but it’s not high on the budgetary priority list right now. Board member Giovando noted that much of the discussion around building upgrades, electrification, and new renewables has been heavily framed around the cost. He encouraged staff to consider reframing their discussion around the community benefits that come with this work (such as employment opportunities). 2025 UTILITY RATES & FEES ENERGY BOARD REGULAR MEETING Randy Reuscher, Lead Analyst, Utility Rates Phil Ladd, Manager, Financial Planning & Assets Mr. Reuscher provided a quick recap of Light & Power’s (L&P) total expenses in 2023, which was just short of $160 million. Roughly two-thirds of those expenses are attributed to Platte River’s for wholesale purchased power. Another 10% of the expenses are for capital projects, 7% for L&P Operations, 6% for PILOTs (payment in lieu of taxes). Other expenses include Energy Services, transfers, admin services, etc. For 2025, staff is proposing a 6.5% increase in electric rates. The increase is composed of a 6.3% increase in wholesale power from Platte River, which accounts for roughly 4.25% of the 6.5% retail rate increase. The remaining ~2.25% is for distribution upgrades, overhead, capital improvements, etc. Staff is also proposing a 9.3% increase to Plant Investment Fees (known as Electric Capacity Fee on the electric side). Mr. Reuscher explained that in 2024 staff proposed a 14.8% increase, but after working through the process with City Council, only 7.4% increase was approved. Staff is trying to catch up to the increase needed for 2025, including a small inflationary adjustment. Much of the increase is driven by transformer cost increases, as well general inflation on various goods and services. The other three utilities also proposing 6-7% rate increases. At last month’s Board meeting, Mr. Reuscher briefly touched on L&P’s 10-Year CIP (Capital Improvement Plan). This plan is revised on a regular occurrence and has seen substantial growth over the last 10 years. In 2016 the plan budgeted for roughly $140 million in improvements, but the latest revision has increased significantly, up to $340 million. This iteration is inclusive of distribution system additions, substation improvements and expansions, transformer, cable, and duct bank replacements, and technology enhancements and replacements. Mr. Reuscher said staff updates the Cost-of-Service study every two years and was most recently completed in the summer of 2024. model is updated every 2 years. He pointed out that the average 6.5% proposed rate increase and the cost of service by rate class are closely aligned, though there is some slight variation from class to class (ex.: residential vs. medium commercial, etc.). Staff updates for consumption, energy, and demand for each of these rate classes, as well as load factors and the cost drivers within these rate classes all flow into the cost-of-service model. Since this model is updated regularly there is typically not a significant variation between rate classes, which is a good sign. Board member Giovando asked how differential percentages are determined. Mr. Reuscher said there are various allocation methods in that, and it's driven by customer counts, load demands, and percentage of demands, like during a coincident peak that goes on to Platte River. Mr. Reuscher said while they are primarily focused on rates for 2025 tonight, he wanted to provide an outlook for the Board through 2033. He reiterated that the primary driver for our local rate increases is due to the wholesale rate increases forecasted by Platte River. There is some tapering off beginning in 2031 and beyond, but there are still adjustments that will be needed beyond that horizon. Much of that is associated with general inflationary costs and ongoing CIP projects that will not taper off in 2030, so staff has incorporated 3-5% in those out years. This is an iterative process, and it will be updated each and every year. A bill comparison shows that the average Fort Collins Utilities residential customer with all four utility services will see an increase of around $13.00 per month, bringing the average bill to roughly $214.00 per month. Neighboring communities range from $220-250.00 per month, so Fort Collins remains the lowest in total (though not necessarily the lowest in every utility service). Board member Canonico said this ENERGY BOARD REGULAR MEETING comparison chart is really impactful, and he suspects an even broader comparison benchmark would also be powerful. Mr. Reuscher said Light and Power is a participant in CAMU (Colorado Association of Municipal Utilities) who does a statewide rate survey; and by the last completion Fort Collins Utilities was the 7th lowest electric utility in the State. A bill comparison for the 9.3% residential ECF increase (based on an average lot size), shows a modest increase for next year of about $261 including the stormwater plant investment fee change. Mr. Reuscher said there are two programs that will be eliminated at end of 2024: Green Energy Program and the Medical Assistance Program (MAP). The Green Energy Program is an opt-in program that was launched in 1998 which allowed customers to pay 1.6 cents to claim 100% renewable energy. There are a few reasons for the program ending: Platte River ended its Tariff 7 three years ago (which was tied to wind or renewable offerings), and enrollment in the program has been dropping. Additionally, as the City brings more renewables online it becomes less important to maintain the program. The MAP has a low participation rate and current program participants can be rolled onto the City’s Income Qualified Assistance Program (IQAP). Board member Braslau asked how many participants will still qualify for IQAP by LEAP (Colorado’s Low-Income Energy Assistance Program). Mr. Reuscher said most participants will still qualify, and Mr. Tholl added that Utilities staff is working closely with the few folks who may not qualify for LEAP to ensure no one is left behind. Board member Braslau said most of the increase is driven by Platte River, though not all. He believes City Council is complacent in the acceptance of Platte River’s rate increases, particularly their future forecasts, and it is responsibility of City Council to make sure Fort Collins’ rate payers are getting the best rate. He thinks criticism is warranted and the Energy Board is within purview under their #6 duty: “To advise the City Council and staff regarding budgetary, rate-making and operational matters related to the electric utility.” Board member Giovando said the more disconcerting part of the increases is within the long-term projections, he wondered what can be done to mitigate or change trajectory over the next seven-10 years. Board member Wegert said his concern is that all four utilities are asking for roughly the same increase at the same time, which will be a significant financial burden for many utilities customers. Board member Braslau noted that is why this board has been such a strong supporter of the IQAP. Mr. Reuscher added that IQAP participants receive a 25% discount on the rate, therefore these customers would be impacted by roughly 75% of the proposed increase, in terms of total dollars, compared to a customer that is not an IQAP participant. Board member Moore moved the Energy Board support the following proposed changes to the 2025 electric rates and fees. Board member Braslau seconded the motion. Discussion: None. Vote on the Motion: It passed unanimously, 7-0, with two board members absent. DRAFT 2025 WORK PLAN Board members reviewed the draft work plan and will review for edits and additions between now and their November 14 meeting. ENERGY BOARD REGULAR MEETING BOARD MEMBER REPORTS Board member Braslau spoke at the last council meeting, reading their memo during public comment. Board member Braslau also said Platte River gave a presentation about industry studies where they found an independent review of Platte River’s IRP would reach the same conclusions. Dispatchable capacity is an integral part of the portfolio with large amounts of wind and solar and Mr. Braslau thinks it is preposterous that Platte River made that conclusion without actually consulting someone. Board member Giovando said his opinion is that he didn’t feel like Platte River came to have discussion or to listen, but rather to tell. He asked the Board and staff to consider if we are willing to live with a 50- 60% rate increase over the next 10 years and wondered if City Council is willing to live with it. FUTURE AGENDA REVIEW The Board’s November meeting ADJOURNMENT The Energy Board adjourned at 8:08 pm. Mobile Home Park Efficiency Acceleration Glenn Pease Energy Services Supervisor City Strategic Plans •Our Climate Future is Fort Collins’ community guide to create the carbon neutral, zero waste and 100% renewable electricity future while improving our community equity and resilience. 3 Utilities Collaboration with Neighborhood Services Goal to expand Income Qualified programming for Historically Excluded Groups. Mobile Homes - High Energy Use Intensity Utilize City Neighborhood Services Department community connections PRPA and Energy Outreach Colorado expanding CARE Capacity in Northern Colorado 4 Shared Leadership and Community Partnership Shared Leadership and Community Partnership City-led Co-led City-Led: Community members advise on day-to-day details of projects. Co-Led: Community members help guide projects at a strategic level 5 OCF Community Consultant Program Community Consultant ProgramEngage and compensate individuals for their contributions to OCF Hear voices from historically excluded groups in the community Increase equity and accessibility of City-led projectsSolutions designed by and with the most impacted groups will be more effective! City-Led 6 Focus on Engaging in Historically Excluded Communities 7 Accessibility We increased accessibility by providing "Office Hours” – Coffee 8 Lesson’s Learned Word travels fast in mobile homes Retired Communities even more Rebuilding trust in government takes timeCo-Led 9 Feedback People didn’t know who to go to with concerns Didn’t want to offend community consultant with feedback Have a tailored plan for feedback loopCity-Led 10 Outcomes What did we accomplish: Boosted CARE participation in FC Mobile Homes by almost 10x Satisfaction with how easy it was to participate Community Consultant Testimonial For Questions or Comments, Please Contact: THANK YOU! Glenn Pease epichomes@fcgov.com ENERGY BOARD 2025 Work Plan 2025 WORK PLAN Page 1 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; and (8) .To perform such other duties and functions and have such other powers as may be provided by ordinance of the City Council. 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) ENERGY BOARD 2025 Work Plan 2025 WORK PLAN Page 2 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, 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; recommend 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) Commented [WS1]: understanding of the CDPHE Rule 29 going into effect mid 2025 is that all public sector in non attainment areas will be required to use electric ENERGY BOARD 2025 Work Plan 2025 WORK PLAN Page 3 9.10. 2050 tax allocation technology assessment 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 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) ENERGY BOARD 2025 Work Plan 2025 WORK PLAN Page 4 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) 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.