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HomeMy WebLinkAboutElectric Board - Minutes - 07/31/2002City Council Liaison Eric Hamrick Staff Liaison DeEtta Carr 221-6702 Electric Board Chairperson Electric Board Vice Chairperson Alison Mason 493-1295 Jeff Lebesch 221-0543 Secretary Vicki Mesa Roll Call Board Present: Chairperson Alison Mason, Vice Chairperson Jeff Lebesch, Dan Bihn, Barbara Rutstein Board Absent: Linda Stewart and Richard Smart Staff Present: Bill Bray, Suzanne Jarboe -Simpson, John Phelan, Gary Schroeder, Mike Smith, Wendy Williams and DeEtta Carr Meeting Opened Chairperson Alison Mason called the meeting to order at 2:45 p.m. After a brief discussion, the Board suggested that the Board and Commission Coordinator for the City contact applicant Lisa Skolds to see if she was interested in joining the Electric Board. Alison requested the Board e-mail her with any proposed changes to the Electric Energy Supply Policy. Renewables The Board discussed percentages and reductions in kilowatt hours. Alison emphasized the need to look at acceptable goals for demand side management (DSM) and possibly set the goals lower. The Board discussed re-evaluating the goals in various year increments. General Manager Mike Smith believed that the timeline was more important than the target because of market and technological changes. Energy Services Engineer John Phelan clarified if energy consumption per capita is reduced, then carbon dioxide (CO2) per capita will also be reduced. After a brief discussion, Mike believed reduction in carbon dioxide (CO2) and sulfur dioxide (S02) were the Board's motivations, not goals. Electric Planning and Engineer Department Manager Bill Bray spoke of the importance of DSM goals making a measurable economic and environmental benefit impact and of the need to pursue DSM programs that provide a payback. 1;lectric Board Mectin.o Minutes Pane 2 Jul% 17.2002 Boardmember Jeff Lebesch supported gradual increases and spoke of the need to successfully communicate with customers. Mike spoke of the need for small incremental rate increases to fund DSM and renewables. He does not believe that increases need to be substantial. He clarified that plant investment fees are not used for the electric utility as they are for water, wastewater and stormwater utilities, because they are built into the rates. Energy Services Engineer Gary Schroeder responded to questions from the Board stating that he would like a to see a well—defined program with well—defined criteria and spoke of the need for additional research to assure the accuracy of the numbers. John stated it was important for staff to look at what can be accomplished and to set an aggressive target in the future. He stated it was an opportunity to get the community to look at environmental benefits and use it as efficiently as possible. Boardmember Barbara Rutstein asked if the program were adopted if the Utility would be able to fund additional people Mike spoke of budget impacts in adding additional staff and stated additional consideration needs to be made regarding funding programs of rate adjustments. He said it was too soon to know. Gary stated that Platte River Power Authority's (PRPA) program wants to reduce its growth by 5 percent over a 5-year period and going after a 10 percent goal takes a serious resource. Alison suggested another approach to achieving the goal would be: In the year 2007 — 3 percent reduction; and in 2012 — 7 percent reduction. Alison asked staff if they could produce a draft policy by August 17. Mike responded to questions from the Board and stated that staff could produce a draft policy when the Board had finished with its work. He stated the following issues needed to be decided: • DSM goals — In the year 2012, 10 percent or 15 percent. • Renewables - portfolio standard verses emissions standard Alison stated she preferred to use a percentage in energy reduction rather than a carbon dioxide goal. The Board discussed if the State adopts a more restrictive policy that they would like to recommend Council consider adopting the policy. After a brief discussion regarding achievement of goals, the Board supported adopting a 5 percent goal and to achieve a renewables goal of 10 percent by 2017 (15 years). The Board discussed the need to also define and achieve intermediate goals. Flectric Board'-1eeting Minutes Pace.' Jul% i 7_ 2002 The Board discussed the need to increase wind power. They are also concerned about giving PRPA the option of using green tags and have concerns regarding pricing. Demand Side Management (DSMJ Boardmember Dan Bihn mentioned the need to find ways to increase DSM funding rather than setting a target. Alison supported setting a target, and she believed the Board had been directed to set a long-range target. She stated language could be added to include, "Starting out with the PILOT program of 2 mills systems benefit charge and review and re-evaluate in 2007." The Board suggested including the term, "Choosing tools in the best available technology." Mike stated that PRPA is beginning to see the benefits of COJAM and is willing to look at other small projects. He stated that they do not see distributed generation as a big problem because it is a benefit to them. The Board suggested adding language to include broader definitions so Council knows and understands what they are buying. After a brief discussion regarding the definition of cost effectiveness. Mike suggested that staff put together what the definition of "cost effective" would look like, and then bring it back to the Board. The meeting adjourned at 4:35 p.m. DeEtta Carr, Electric Board Liaison