HomeMy WebLinkAboutElectric Board - Minutes - 08/16/2000Minutes approved by the Board at the September 20, 2000, meeting
FORT COLLINS ELECTRIC BOARD MINUTES
Regular Meeting August 16, 2000 at 5 �.m.
Council Liaison: Scott Mason Staff Liaison: Heather HoxcnE — 221-6700 (V
Chairperson: Jim Welch Phone: 498-8947 (\D"/H)
Vice Chair: Richard Smart Phone: 221-4474 (H)
regular meeting of the Fort Collins Electric Board was held at 5 p.m. on VC'ednesday, _Au(,ust 16, 2000,
in the Utilities Training Room at 700 Wood Street, Fore Collins, Colorado.
BOARD PRESENT:
Ginger Purvis, Barbara Rutstein, Doug Smith, Guy Hehne, Richard Smart
STAFF PRESENT
All Boushee, Bob Kost, Dave Agee, Dennis Sumner, Ellen Switzer, Eric Dalilgren, Heather Hoxeng,
Lisa Kokes, Lori Clements -Grote, Mike Smith, Wendy Williams
OBSERVER:
Lu Fisk of the League of Women Voters
APPROVAL OF 1\1INUTES:
Doug Smith motioned to approve the minutes of the )une 21 meeting. Barbara Rutstein seconded the
motion and it passed unanimously.
INTRODUCTION OF NEVC' BOARD MEDIBER:
Richard Smart introduced Guy Heine, the newest Electric Board member. i\fr. Helme stated he worked
30 years for Florida Power & Light and is currently employed with Volunteers of America and for a
realestate agency. He and his wife moved to Fort Collins five years ago.
2001 BUDGET — EXCEPTION REQUEST FOR OVERLAND SUBSTATION:
Ellen Switzer stated that the City of Fort Collins has a two -pear budget process. Last fall, Council
approved the 2000-2001 budget. The Urihbes currently has the opportu it, to recommend
amendments to the adopted budget.
The Utilities is requesting an exemption to the 2001 budget of $1,348,350 for construction and materials
for the move of the Overland Trail Substation and an additional appropriation to the 2000 budget for
$2,424,000 for substation equipment purchases. The relocation project is being accelerated at Platte
River Power Authority's request in order to receive annual savings of $600,000 in transmission wheeling
costs.
Al Boushee stated that the Overland Trail Substation is currently located at the intersection of MulberrS
Street and Overland Trail. The station is slated to be moved to the intersection of Overland Trail and
Drake Road where Platte River has their Dixon Creek transmission site.
The existing site of the Overland Trail Substation is a single transformer substation, «-hick has to be
backed up with numerous feeder circuits. Without the usual dual transformers, repairs to the substation
are time consuming and uneconornical. Also, because the current load on the single transformer is only
20 megawatts (1\RN-� and it is sized for 50 nING', delivery capacity is ver-t low.
The most important reason to move the transformer is its location in the transmission system. The
current location of the substation places it within Western Area Power Administration's (WAPA)
exclusive delivery area. Because of this, there is a dehvery charge of $600 000 per year for the current
amount of power being delivered.
The other options considered were:
i Completing the substation in the current location with a second transformer and corresponding
swvitchgear.
i Adding another unit at the Dixon Creek site and leaving this unit as it is. (Since there is a two-mile
difference between the two substations, there would not be an adequate backup only a little feeder
support.)
Relocating the current substation to the Dixon Creek site. The Dixon Creek site advantages are
saving $600,000 per year in delivery charges, ease of working without having to bypass existing
equipment and the new site better accommodates load growth.
Platte River will ultimately be the recipient of the $600,000 per year savings if the substation is relocated.
Therefore, they will reimburse Fort Collins $11\1 to $1.71M, pending final negotiations. Their
contributions for relocation will be toward:
Site development equivalent to Overland Trail site
2 transformer pads
i Switchgear pads
i Oil containment system
Conduit that exits to main feeders
i Costs for relocation of existing transformer
i Half of new switchgear line-up
i 2 distribution feeders and regulation
Barbara Rutstein moved that the Electric Board support the additional 2000 appropriation of $2,424,000
for the major purchase of equipment and 2001 budget adjustment of $1,348,350 for construction and
materials for the Overland Trail Substation move from Mulberry Road to Drake Road. Ginger Purvis
seconded and the motion passed unanimously. Staff will draft a letter to Council concerning this
recommendation for Richard Smart to endorse.
RATE INCREASE FOR 2001
Mrs. Switzer stated that a rate increase has often been included in past budgets but deemed unnecessary
when additional data was available. For the year 2001, however, the proposed two percent increase in
electric rates will be necessary.
Purchase power is not driving the increase. The 2001 rate increase is due to accumulative inflationary
increases in distribution, administrative and customer service costs. The increase will be the first electric
rate increase for the City of Fort Collins since 1993 and will result in rates that are only 0.2 percent
higher than they were in 1981 A graph of electric rates from 1983 to 2002 showed the rates decreasing
in 1984 and 1990 and an increase in 1993 from which point the rates have remained stable until 2000.
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Mrs. Rutstein moved to recommend the 2001 electric rate increase Doug Smith seconded and the
motion pissed unanimously. Staff will draft a letter to Council concerning the Board's recommendation
for Mr. Smarr's rcvico- and signature.
ELECTRIC ISSUES FOR CITY OF FORT COLLINS 2001 LEGISLATIVE AGENDA:
Dennis Sumner discussed the lcgislativc process the City uses to prepare itselt for upcoming State
Legislation, which runs the first half of the year -January to May. 1\'Ianp times the actions being
promulgated at the State level do not allow a lot of time to get back to Council, have dialogue with them
and then obtain an answer. Therefore, the City adopts the Legislative Agenda, which outlines City
positions on issues that may come up, or philosophical guidelines City Council wants staff to operate
with in the upcoming year.
DIn Sumner requested the Board review the electric utility- content section of the 2000 Legislatve
Agenda and offer it's recommendations for 2001. After some discussion, a motion made by Doug
Snutb and seconded by Ginger Purvis, passed supporting the language in the 2000 Agenda with the
replacement of the topic titled "Retail VIeehng" with the "Electric Industry Retail Restructuring
Principals" approved by the Board on May 17, 2000.
PROMOTING PUBLIC POWER WEEK:
Lori Clements -Grote updated the Board on options the Utilities is looking at to promote Public Power
Week. The marketing department has developed some print ads and articles with a theme of"Where
we're been, where we are now, and where we are going in the future." These articles will highlight the
City's rehable power and low-cost electricity. The Wind Power Program and other capital projects will
also be represented in these articles.
Mx. Smart stated that he would like to see Public Power Reek tied to the national theme. He wants to
show the residents that the City of Fort Collins is not the only town with community owned power.
There is a network of cities «rich publicly owned power and some are very large tides hke Los Angeles
and Seattle. Wendy Williams said that the American Public Power .-Association (APPA) logo will be
included on all the promotional materials for the week.
Staff suggested Board members write letters to the editor speaking about the reliable, low-cost power
Fort Collins has and about the programs the City provides (Wind Power, Energy Score, SurgeSafe!, etc).
Public Power Week is planned for October 1 — October 7.
Ms. Purvis also suggested that satisfied customer testimonials be used as part of the marketing.
Mrs. Clements -Grote said she would check into obtaining some for the ads.
INFORl\4ATION SHARING:
Mr. Smith suggested Board members read the June issue of the Eloctriaj, Joirnral for information on
distributive generation. He said the article was very good, and it contained field measurements from
generators that are currently in service.
Heather Hoxeng, Electric Bo� Liaison
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