HomeMy WebLinkAboutElectric Board - Minutes - 07/17/2002G\
City Council Liaison
Chairperson
Eric Hamrick
Staff Liaison
DeEtta Carr 221-6702
Electric Board Chairperson
Alison Mason 493-1295
Electric Board Vice
Jeff Lebesch 221-0543
Secretary
Vicki Mesa
Roll Call
Board Present: Chairperson Alison Mason, Vice Chairperson Jeff Lebesch, Dan Bihn, Barbara
Rutstein
and Richard Smart
Board Absent: Linda Stewart
Visitors: City Council Liaison Eric Hamrick
Staff Present: Bill Bray, Lori Clements —Grote, Eric Dahlgren, Suzanne Jarbo—Simpson, John
Phelan,
Tom Rock, Tim Sagen, Mike Smith, Bill Switzer, Ellen Switzer, Wendy Williams and DeEtta
Carr
Meeting Opened
Chairperson Alison Mason called the meeting to order at 5:25 p.m. She introduced Council
Liaison
Eric Hamrick.
She spoke of the Letter of Recognition and Appreciation to Bob Kest for his years of service.
Motivations Behind Draft Electrical Energy Supply Policy
The Board discussed the strategy and timeline for presenting the Electric Energy Supply Policy
to City Council. Alison stated a Council Study Session has been scheduled for September 24 to
discuss the policy and receive direction and feedback.
General Manager Mike Smith clarified study sessions are scheduled for council to receive input
and/or Board recommendations. He stated that cost implications will be included.
Boardmember Barbara Rutstein suggested adding, "This is a conservative way to deal with
energy issues." She believed it was important to combine the term energy conservation along
with water conservation, noting conservation is a key term to the Policy.
1?(eclric Board Meeting Minutes pu e
Jul% 17_2002
After a brief discussion, the Board tabled Barbara's suggestion to the end of the meeting. Alison
read the Draft Motivations as follows:
• Improve air quality for aesthetics and better health/quality of life - no discussion
• Reduction contribution to global warming — no discussion
• Long-term view for lowest costs over time — the Board discussed revising to read, "Take a
long-term view of the lowest costs and address environmental concerns."
• Use resources no faster than they can be replenished (sustainability) — the Board discussed
revising to read, "Strive to use resources and come as close to the goal as possible." Alison
stated that this is the motivation even if it is not attainable. The Board stated that would need
to be restated that we are working toward some sort of goal. After discussion, it was decided
that this motivation statement be deleted.
• Retain/enhance Fort Collins' leadership as environmental steward — no discussion
Stimulate economic activity/create economic opportunity in areas of energy services — the
Board suggested adding "conservation services and renewable energy." They believed it
read more like a policy than a motivation statement. The following wording was suggested,
"Enhance the market for energy conservation services and renewable energy services." Eric
states the wording reads that this would be beneficial to both suppliers and consumers.
• Moral imperative to live lightly (sustainable) on earth — there was a discussion to not sound
like the Board was preaching.
Strive to emulate environmental stewardship exhibited by other countries — after discussion,
the Board decided to remove this motivation statement.
Increase resilience of electric supply system by investing in smaller scale, distributed
resources (energy efficiency as well as generation, particularly renewables) — There was a
lengthy discussion of the word "resiliency" and it was the Board's consensus that the phrase
be amended to add:, `and diversity." The Board concluded that these motivations need
wordsmithing.
Barbara suggested reordering the motivations stating the current order is more along the lines of
that of Air Quality Board.
After a brief discussion, Alison suggested adding the following motivation, "Keep options open
to take advantage of possible future technologies." Alison suggested tabling further discussion
of the motivations due to time constraints.
klectric Board Mecting Minutes paee 3
luh� 17.2002
• Carbon Dioxide Reduction Goal — Alison suggested looking into gathering input/information
on climate protection from the Air Quality Board and Natural Resources Advisory Board.
Mike suggested the Board try to quantify specific goals would reduce carbon dioxide (CO2).
Does it make sense for the policy to focus on CO2 reductions that result in reduction of
electricity? It should read that the reduction in electricity would result in a certain percentage of
reduced CO2.
Mike stated that once the goals are decided upon, then CO2 reduction levels could be discussed.
Adoption of Position Statement — Alison stated there were four position statements;
reliability,
rates, demand side management, renewables.
Reliability
The following was amended:
Realize that reliability of power requires focus in three areas: distribution, generation and
transmission.
• Design, build and maintain the system consistent with the high Fort Collins Utilities
standards.
• Under the heading of Generation Focus, the Board suggested the following change,
"Availability of power, maintain sufficient supply."
It was discussed that Demand Side Management should be included under Distribution Focus.
The Board further discussed the need to incorporate distribution, generation, transmission and
security issues under the heading of Generation Focus. Mike stated diversity would help
maintain security issues.
Rates
The Board had a lengthy discussion regarding "alternative rates" and proposed the following:
• Alternative rates to encourage and support conservation and renewables.
• Establish rates in support of the goals.
The Board suggested the following amendment to the position statement, "Electric rates shall be
designed such that, with reasonable economic efficiency, the rates provide accurate pricing to
reflect utility service and energy generation costs. Rates should be set such that they encourage
Flectric Board Meetino Minutes
July 17.1-00.2
conservation and demand side management to the extent that_they pass along full benefits to
customers and our community of such activities."
Demand Side Management (DSM)
Under Broader Perspective, delete the following:
Goals
The Board suggested the following language, "Defer major generation investment, keeping
options open for the best, cleanest solution available."
Pane 4
The Board discussed how the DSM goals might be reached, discussing the need to either reduce
the target goal or increase the SBC. It was clarified that this goal is based on implementing a
SBC in addition to adjustments to rate structures and a 9 percent rate increase would be effective
immediately and would increase 3 percent each year to keep pace with the population growth.
The Board and staff discussed using a tiered rate approach, stating that it would be much easier
to implement and received better by the customer.
After a lengthy discussion, the Board decided to adjourn the meeting and scheduled a
continuation meeting for July 31, 2002, at 2 p.m.
The meeting adjourned at 8:23 p.m.
Qi. C1CU�A
DeEtta Carr, Electric Board Liaison