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HomeMy WebLinkAbout10/09/2025 - ENERGY BOARD - AGENDA - Regular Meeting ENERGY BOARD REGULAR MEETING October 9, 2025 – 5:30 pm 222 Laporte Ave – Colorado Room Teams – See Link Below 1. [5:30] CALL MEETING TO ORDER 2. [5:30] PUBLIC COMMENT 3. [5:35] APPROVAL OF SEPTEMBER 11, 2025 MINUTES 4. [5:45] BUILDING PERFORMANCE STANDARDS PREVIEW (15 Min, Discussion) Katherine Bailey, Project Manager 5. [6:00] 2026 RATES & FEES (45 Min, Decision) Randy Reuscher, Manager, Utility Rates 6. [6:45] BREAK (10 Min.) 7. [6:55] REVIEW RENEWABLE ENERGY MEMO (30 Min, Decision) 8. [7:25] DRAFT 2026 WORK PLAN (15 Min, Discussion) 9. [7:40] BOARD MEMBER REPORTS (5 Min.) 10. [7:45] FUTURE AGENDA REVIEW (5 Min.) Participation for this Energy Board Meeting will be in person at 222 Laporte Ave. Participation is also available online via Teams. Click or copy/paste this link into your browser: fcgov.com/energy-board-regular-meeting Online Public Participation: The meeting will be available to join beginning at 5:15 pm, October 9, 2025. Participants should try to sign in prior to the 5:15 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 Meeting to ensure all participants have an opportunity to address the Board or Commission. To participate: • Please note: 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). • You need to have access to the internet. • Keep yourself on muted status. ENERGY BOARD REGULAR MEETING 11. [7:50] ADJOURNMENT 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. Select or copy/paste the following link: fcgov.com/energy-board-regular-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 September 11, 2025 – 5:30 pm 222 Laporte Ave – Colorado Room ROLL CALL Board Members Present: Frederick Wegert, Marge Moore (remote), Aleksander Thorstensen, Scott Canonico, Brian Smith, Natalie Montecino, Jeremy Giovando Board Members Absent: Jason Hevelone, Wendell Stainsby OTHERS PRESENT Staff Members Present: Christie Fredrickson (remote), Brian Tholl, Michael Authier, Leland Keller (remote), Yvette Lewis-Molok (remote), Grant Stump, Brad Smith Members of the Public: Rick Coen MEETING CALLED TO ORDER 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 August 14, 2025, minutes. The minutes were approved as amended. STAFF REPORTS Light & Power Operational Reports Brian Tholl, Energy Services Director Mr. Tholl opened the discussion by noting that the quarterly Operational Updates are an opportunity to discuss any Utility topics the Board finds interesting and potentially do a deeper dive. The City is projecting a 6.1% budget deficit in the City’s 2026 General Fund. This is due to $8.7 million revenue shortfall projection, attributed to lower sales and use tax collections, and $6.7 higher expense projections, the delta of both equating to about $15. Currently, there are no involuntary separations or layoffs planned, but the City has implemented several strategies to address the budget gap: leveraging a strong benefits fund performance, strategic use of fund balances, one-time savings opportunities, shifting funding sources where possible, and department reduction recommendations (which may include permanent elimination of vacant positions, efficiency savings, or service level adjustments). Mr. Tholl noted that the City’s Enterprise Fund is in good shape (Utilities falls into the Enterprise Fund), but staff does several financial “health checks” throughout the year. ENERGY BOARD REGULAR MEETING Chairperson Smith asked if the City could use Enterprise Funds to supplement the General Fund. Mr. Tholl said no, it is considered best practice to keep them separate entities. Mr. Smith also asked if there are discussions on to increase revenues. Mr. Tholl said yes implementing the planned mitigation strategies (as discussed earlier), but the City is also discussing other opportunities, such as managing automated traffic violation citations. He is not aware of any broad or sweeping strategies being considered at this juncture. Mr. Tholl added that this situation is not unique to Fort Collins, many cities along the front range are experiencing similar budget shortfalls with the current economic climate. IECC Code Debrief Brad Smith, Senior Project Manager Council heard an update from Marcus Coldiron, Chief Building Official, related to the adoption of the 2024 building code package, which includes 12 or 13 different codes from the IECC. He also talked about this code’s alignment with the State’s requirements. Mr. Smith said staff generally received good feedback, there was not much concern expressed about the energy code requirement specifically, which he believes could indicate support from Council moving forward. As a reminder, now that the work session is complete, there the Code Package will be to a first reading at City Council, where public comment is received, and then a second reading is required to adopt codes. Mr. Tholl noted that Mr. Coldiron committed to providing Council a roll up of costs associated with the different local amendments and code packages. OUR CLIMATE FUTURE PLAN & STRATEGIC FUNDING UPDATE Grant Stump, Lead Specialist, Environmental Sustainability In 2023, voters approved a 0.5 cent tax to fund parks & recreation facilities, climate programs, and the transit system. Collection began in 2024 and will run through 2050, expecting to total about $5,000,000 a year. Staff has been working on a strategic funding plan for collected funds, and they have been viewing the next 15 years through an intentional lens to meet the goals and hardlines of the future. Mr. Stump reminded the Board that the purpose of Our Climate Future is to guide Fort Collins toward a more sustainable future while focusing on the needs of its people. OCF is structured with three goals, 13 big moves (essentially community-driven transformational outcomes related to climate), which address anything from food systems to equity all the way to energy efficient buildings and renewable energy. Beneath each of those big moves are next moves, which are at the tactical level of what the City is working on in the next two years, that then feeds into impact on those transformational outcomes. The Strategic Funding Plan is a document that can include revenue projections for key revenue streams and proposed funding allocations for those revenue dollars, as well as an implementation plan for what the City will be working on within our OCF, so that this document can then be used to inform Council priority setting and budget decision making. It is intended to be a through line across the years to help provide information, background, and staff recommendations for how to use this funding and how it might be most strategically applied. Mr. Stump said the key deliverables within this are revenue projections, allocations and the next moves plan timeline. Staff began working on the document earlier this year and plans to deliver the full plan to Council before the next budget cycle (early 2026). Phase I is due in October of this year and includes a 75% draft plan for Council review. ENERGY BOARD REGULAR MEETING Once the funding starts coming in, staff will begin aligning the allocations to the revenue forecasts, basing their recommendations on the most strategic recommendations over multiple timelines (short-, mid-, and long-term). Staff will also incorporate and consider OCF’s big moves and the current council’s priorities when making their recommendations, hopefully moving away from the constraints of the City’s two-year budget cycle while still moving forward with the process, and even help inform future budget cycles. Each funding stream has an allowable use (by ballot language). The climate portion of the 2050 tax is allowed to be applied toward greenhouse gas and air pollution reduction, 100% renewable electricity, and the 2050 goal of community wide carbon neutrality. Remittance fees from disposable bags can be applied toward waste reduction programs, mitigating plastic pollution, and reducing solid waste and litter. Utilities funds for energy services can be applied toward programs that assist customers and/or provide incentives to reduce consumption or peak demand, as well as electricity and related services for consumers. Board members wondered why the funding stream usage is split up. Mr. Stump explained it helps staff fully inform City Council as they make decisions. Staff has heard from the community that they want to make sure we're reducing greenhouse gases and improving air quality, but also we need to improve and enhance the capability of our human systems to be able to withstand changes and disruptions from climate change. Mr. Stump said staff will present four separate big moves and their associated next moves at City Council next month. Though they won’t necessarily have a full funding structure, Big Move 2 (Zero Waste Neighborhoods), Big Move 5 (Live, Work, & Play Nearby), Big Move 6 (Efficient, Emissions Free Buildings), and Big Move 12 (100% Renewable Electricity), their transformational pathways, and next moves will be covered at the October 28 Council Work Session. Board members wondered how staff will choose what kind of projects will be invested in with the 2050 tax money, such as a solar array over e-bike infrastructure. Mr. Tholl said staff will have to look hard at resilience and equity focus strategies which are harder to quantify, so it will be important to strike that balance. Board member Canonico suggested creating a scorecard that utilizes common language across projects to bring more quantitative analysis. Board members wondered if all the goals are clearly defined within OCF and Mr. Tholl clarified that the mitigation-based goals are clearly defined, but the resiliency- and equity-based goals are not as measurable. There are ratings or indicators that essentially try to quantify a low, medium, high effort or outcome associated with an action in both the equity and resilient space. Board member Thorstensen said his concern with a scorecard is that it often leads to what he knows as the 1% solution. Meaning, you can make 50 people’s lives 50% better, or 1000 people’s lives 1% better. The 1% will always score higher because it’s penetrating more of the population but is it actually making sweeping improvements? Board member Montecino asked if staff plans to rely on the broader community for any assessment or evaluation in addition to the quantitative metrics. Mr. Stump said there will be public engagement and outreach as part of this process since it is a living document with many future iterations to come. Since OCF was a community driven plan, he imagines that mutual collaboration will continue to feed into this process as well, though he can’t say for sure. Board member Giovando suggested that instead of setting up the carbon savings as tons per dollar, ENERGY BOARD REGULAR MEETING maybe staff could consider setting it up as a storyline; meaning, setting up project storyline and you expect x carbon savings, and this is what that storyline costs. He added that you could build dependencies into the storyline as well. Board member Thorstensen asked what has been done with the funding that has been collected so far. Mr. Stump said staff went through a very similar process already for “shovel-ready projects,” and there is a section on the OCF page under “reports” that highlights the work that has already started with the allocated funding: https://www.fcgov.com/climateaction/reports RENEWABLE ENERGY GOAL MEMO The Board has previously discussed the difference between consumption and generation goals at both a City and Platte River level and how they come together. They are using this time tonight to discuss alignment and if they’d like to send a memo recommendation to City Council. Board members discussed the importance of distinguishing between generation and consumption, and why it is different for Fort Collins (and the other owner communities of Platte River), being part distribution and part owner of a generating Joint Action Agency. Fort Collins is on track to be at 100% renewable energy consumed, but Platte River is only on track to be at 88% renewable energy generated. The Board noted that this is less of a problem to be solved and more of an issue of how it should be best communicated. Board members Giovando and Canonico will begin drafting a memo, and the Board will vote on a final copy at their October 9 meeting. BOARD MEMBER REPORTS None. FUTURE AGENDA REVIEW In October, the Board will vote on the final copy of their previously mentioned memo. They will also begin working on their 2025 Work Plan. The Board will hear a brief preview of Building Performance Standards before Ms. Bailey takes it to Council, and they will also hear a presentation about 2026 Utility Rates and Fees. ADJOURNMENT The Energy Board adjourned at 7:52 pm. Headline Copy Goes Here Energy Services Program Manager Katherine Bailey October 9, 2025 Proposed Building Performance Standards (BPS) Policy Levers Headline Copy Goes HerePolicy Lever Trade-offs Policy Lever Potential Change Upfront Economic Impact Environmental Impact Administrative Impact Timeline Extend compliance 3-5 years Minimal Half-percent of OCF goal per year Moderate Target Requirement Reduce maximum reduction cap by 5% High High Minimal Covered Buildings Exclude buildings 5,000-10,000 ft2 Minimal Minimal Moderate Exclude multi-family buildings High High Moderate Headline Copy Goes HereCompounding Levers Estimated impact on GHG savings and costs with overlapping scenarios: •Excluding multi-family AND cap reduction; •Excluding small buildings AND cap reduction; •Excluding both multi-family AND small buildings AND cap reduction Excluding multi-family buildings AND lowering maximum reduction cap by 5% Excluding small buildings AND lowering maximum reduction cap by 5% Excluding multi-family AND small buildings AND lowering maximum reduction cap by 5% 35% impact on GHG and costs 24% impact on GHG and costs 39% impact on GHG and costs Headline Copy Goes Here 4 Policy Levers Impact Local Priorities Policy Levers help address local priorities Local Priority Levers Impact Small Business Health Covered Buildings Exclude small buildings Target Reduction Cap Make compliance targets more attainable Equity Covered Buildings Exclude small buildings +/- multifamily buildings Resources Enhance 2050 tax resources Housing Affordability Covered Buildings Exclude multifamily buildings Maximum Reduction Cap Make compliance targets more attainable Resources Enhance 2050 tax resources Economic Uncertainty Timeline Phased approach extended to 2040 Maximum Reduction Cap Make compliance targets more attainable Headline Copy Goes Here Questions on BPS: Kbailey@fcgov.com 970-221-6818 ourcity.fcgov.com/BPS Program Manager, Energy Services Katherine Bailey Energy Board Agenda Item Summary – City of Fort Collins Page 1 October 9, 2025 AGENDA ITEM SUMMARY Energy Board STAFF Joe Wimmer, Director, Utilities Finance Randy Reuscher, Manager, Utility Rates SUBJECT 2026 Electric Utility Rates EXECUTIVE SUMMARY The purpose of this item is to review electric utility rates with the Energy Board prior to Council consideration planned for November 3rd adoption. Monthly utility rates are proposed to increase 6% for electric customers, 9% for water customers, 8% for wastewater customers, and 6% for stormwater customers. Rates would become effective January 1, 2026. STAFF RECOMMENDATION Staff is requesting support from the Energy Board regarding electric rate updates for 2026 and recommends adopting the changes as proposed. Energy Board Agenda Item Summary – City of Fort Collins Page 2 BACKGROUND / DISCUSSION 2026 Utility Rates The revenues needed to support the ongoing operation and maintenance costs of providing each of the four utilities services to customers are collected through monthly utility rates. As costs change over time, it is necessary to adjust rates to reflect those changes. Long-term financial planning is 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 services to our customers. Frequent review and updating of the cost-of-service allocation models behind the monthly utility rates maintains equity across rate classes and helps to reduce the impacts on customers of higher utility rates by providing gradual, modest rate adjustments over time rather than less frequent and larger rate adjustments. 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. A summary of the proposed rate increases for the four utility services are shown in the table below. Electric Staff are proposing a 6% retail rate increase for the Electric Fund in 2026. This increase is driven by a combination of an increase in wholesale electric expenses in 2026, as well as an increase to cover distribution operating and maintenance costs and investments in capital projects. Roughly two-thirds of costs incurred each year to provide electric service are attributable to wholesale expenses, while the other one-third is attributable to costs related to operating and maintaining the distribution system. The portion of the proposed 6% increase that is not applied to wholesale cost increases will be used to help fund distribution system needs. There are multiple capital projects necessary to meet future needs, some of which include feeder cable and transformer replacements, streetlighting upgrades, distribution automation, and demand response technology upgrades. The largest expense for the electric fund is wholesale power costs. Platte River Power Authority (PRPA) is planning to increase their wholesale blended rate ($/MWh) by 6.3% in 2026 and is forecasting 7.5% wholesale rate increases for 2027-28. There is variability in how the wholesale increase is applied to individual component charges. Energy Board Agenda Item Summary – City of Fort Collins Page 3 Fort Collins Utilities participates in the Colorado Association of Municipal Utilities (CAMU) survey each year. Below are the residential electric rate comparisons for the electric utilities in Colorado that responded to the survey. Fort Collins is shown in the maroon-colored bar within the graph. Based on the July 2025 survey, Fort Collins Utilities came in towards the lower end of average electric cost within the state, assuming 700 kWh of consumption in a month, at $100.28, or 12th lowest overall of all responses. Bill Impacts and Front Range Comparisons 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 7.1%, or $13.48 per month. Energy Board Agenda Item Summary – City of Fort Collins Page 4 The table below compares typical residential electric, water, wastewater, and stormwater monthly utility bills across neighboring utilities along the Front Range, based on proposed 2026 rate adjustments and charges. In total, Fort Collins Utilities comes in the lowest at $230.26 for all four services. With proposed increases for 2026, Fort Collins will remain the lowest overall, as there are known increases proposed amongst the other bordering utilities for 2026, with some of them being substantially higher than the percentage increases proposed for customers within our community. Note that community comparisons use different usage thresholds than the Fort Collins customer averages shown in the bill impact table above. Energy Board Agenda Item Summary – City of Fort Collins Page 5 CITY FINANCIAL IMPACTS The 2026 City Manager’s Recommended Budget includes these proposed increases in revenues available for the budget. The electric increase would offset increased wholesale costs for 2026, as well as contribute to increasing distribution system operating and maintenance and capital costs. PUBLIC OUTREACH The required electric outside city limit postcard will be mailed in early October and a notice will be posted in the Coloradoan. Rates presentations will be shared at the Business Accounts meeting for all commercial customer accounts on November 18, 2025. An annual rate brochure will go out to customers in late November or early December, along with updated information posted to the utility website. ATTACHMENTS 1. Presentation 2 Direction Sought Does the Energy Board support the following proposed changes to the 2026 electric utility rates to go into effect January 1, 2026? 01 32026 Light & Power Budget PRPA Wholesale •6.3% Increase Capital Investment •Cable Replacement •Transformers Operational Technology •Distributed Energy Resource Management (DERMS) Purchase Power PRPA 66% Capital & Asset Management 10% L&P Operations 7% PILOTs 5% Cust Serv & Admin 4% Energy Services 4% Internal Transfers Out 2% Purchase Power Community Renewables 2% Other Misc 1% 2026 Expenses - $183.5M 42026 OneWater Budget Capital Investment •Halligan Water Supply Project •Water Main Replacement Program •Drake Water Reclamation Facility Projects •OneWater Laboratory Design Operations •OneWater Operator & Engineering •GIS Utility Network Capital & Asset Management 38% Plant Operations 14% Cust Serv & Admin 14% Transmission & Collection 12% Planning & Sciences 8% PILOTs 4% Engineering 3% Internal Transfers Out 6%Other Misc 1% 2026 Expenses - $103.7M 52026 Utility Rates Utility 2026 Rate Increase Electric 6% Water 9% Wastewater 8% Stormwater 6% 2025-2026 City Manager's Recommend Budget 62026 Utility Rates 72026 Utility Rates 82026 Utility Rates 9Utilities Affordability Assistance Retrofit Programs •Larimer County Conservation Corps Water and Energy Program (LCCC) •Colorado Affordable Residential Energy (CARE) Reduced Rates •Income-Qualified Assistance Program LEAP & IQAP One-Time Payment Assistance •Payment Assistance Fund •Utilities Emergency Fund Outreach •Water Conservation resources •Energy Services programs •Utilities Insights Newsletter •Direct customer engagement 10Utilities Outlook & Initiatives 2027/28 Budget Prep Capital Planning •Enterprise Project Management Office (EPMO) •Strategic Asset Management Plans •Asset Replacement Analysis Major Projects •Halligan Water Supply Project •Drake Water Reclamation Facility Preliminary Treatment •OneWater Quality Lab •Drake Substation •PRPA Integrated Resource Plan Long-Term Financial Modeling •Capital Financing •Long-Term Rate Scenarios 11 Direction Sought 01 Does the Energy Board support the proposed changes to the 2026 electric utility rates to go into effect January 1, 2026? For More Information, Visit THANK YOU! fcgov.com/utilities Utilities – Energy Board 700 Wood St. Fort Collins, CO 80522 970.221.6702 970.416.2208 - fax fcgov.com M E M O R A N D U M DATE: September XX, 2025 TO: Mayor Arndt and City Councilmembers FROM: Brian Smith, Energy Board Chairperson RE: Determining performance toward City goal: 100% renewable energy BACKGROUND ENERGY BOARD DUTIES AND FUNCTIONS The City’s use of renewable energy and performance against its 100% renewable energy use goal have been frequent topics of discussion at Energy Board meetings. The topic has been included , as a specific part of our agendas, an element of other discussions, and addressed in public comments. Given the broad interest and applicability of this goal and the City’s performance, the Energy Board has considered the best methodology the City can use to demonstrate performance. We offer Board input here in accordance with our chartered duties and functions, specifically: (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. OBSERVATIONS • The City’s renewable energy goal, adopted in October 2018 is, “Achieve 100% renewable electricity by 2030.” This goal was later refined with the 2021 adoption of the Our Climate Future Plan: “Everyone in the community receives affordable and reliable 100% renewable electricity, including from local sources.” o The goal defines renewable electricity as non-carbon or non-fossil energy, explicitly including existing hydroelectric power. o The nature of the renewable energy goal and its applicability to the community im- ply that the goal is a consumption-based goal. Although related, especially given the City’s relationship with PRPA, this goal is distinct from a production-based (aka, generation-based) goal that would apply to PRPA. Commented [BS1]: Need to discuss. Not sure I read it that way. Need to clarify that we have no control over generation. So, the city's goal can only apply to consumption-based goals? The city can also try to hold PRPA accountable to  A consumption-based goal must consider both local generation and elec- tricity delivered to or from the grid. o As 2030 draws closer, the City will need to communicate its performance with re- spect to renewable energy use, and how that performance level was determined. • Grid connections and PRPA’s Southwest Power Pool membership make the use of renewa- ble energy certificates (RECs) essential for demonstration of performance. This is because, once added to the grid, electrons are indistinguishable. RECs are the instrument to identify the “renewable-ness” of athat a given quantity of electricity was generated from renewable sources —specifically, 1 REC = 1 MWh of renewably generated electricity. o RECs financially support renewable energy producers and play an essential role in measuring renewable energy consumption on the interconnected grids in the US o Quality of RECs can vary. They can be sold separately from electricity, although in that case the associated electricity would no longer be considered renewable. When mismanaged, RECs may also be subject to double counting. Characteristics indicative of higher quality RECs are third-party certification, transparent attributes and chain of custody, and minimal negative environmental impact. RECs that are not separated from their energy are prefered, meaning they stay “bundled” to- gether. o FC Utilities is committed to purchasing high quality RECs that are directly associ- ated with renewable energy generation, avoiding so-called unbundled certificates. • Given the potential variation in interpretations, measurement approaches and accounting instruments, it is important that the City establish a methodology for determining perfor- mance against the renewable energy goal. o Published City documents do not contain specific methodology. o Established standards of practice can guide an adopted methodology  Among others, US EPA publishes guidance for “solar ‘use’ claims” (https://www.epa.gov/green-power-markets/guidance-making-claims)  On its guidance page, EPA cites an NREL document, “Renewable Electricity: How do you know you are using it?” (https://docs.nrel.gov/docs/fy15osti/64558.pdf). It states: Voluntary purchasers need to substantiate their self-imposed renewable targets and their marketing claims (e.g., “This product was made with 100% wind power”). In both compliance and voluntary markets, RECs are the way to show you are using renewable energy. RECOMMENDATIONS • Ensure the City has a well-documented and transparent process for establishing perfor- mance levels and claims related to renewable energy consumption. This process should conform to current standards of practice. • Recognize that owning and retiring RECs are essential elements of tracking and achieving renewable energy goals for a grid-connected city, like Fort Collins. • Continue to pursue responsible environmental actions while also documenting goal perfor- mance. o Use only high-quality (bundled) RECs that are reliably sourced and managed. Commented [WS2]: perhaps this could be changed. this makes it seems like it's a spectrum wheras it's either o Hold PRPA accountable for achieving its environmental goals and responsible gen- eration management. As always, the Energy Board is grateful for the opportunity to provide comment and appreciates City Council’s consideration. Respectfully submitted on behalf of the Energy Board, __________________________ Brian Preston Smith, Energy Board Chairperson Energy Board cc: Brian Tholl, Energy Services Director Travis Walker, Light & Power Director Christie Fredrickson, Energy Board Support Commented [BS3]: I think this should be elevated as a primary bullet. We recommend the city guide PRPA on how we'd like them to use RECs and should hold PRPA accountable to achieve generation goals that are important to 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 (1-8) 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: 9. 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) 10. 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) 11. 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) 12. 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) 13. 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) 14. 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) 15. 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) 16. 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) 17. Support and provide feedback on the deployment of the approved 2050 Tax and the City's strategic funding plan for this sustainable revenue source. Functions (1, 3, 6) Cost of Service and Rate Structures Substantial changes in rate structures have occurred with time-of-day and income-qualified rates. More ENERGY BOARD 2025 Work Plan 2025 WORK PLAN Page 3 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 proceedings 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 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 ENERGY BOARD 2025 Work Plan 2025 WORK PLAN Page 4 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.