HomeMy WebLinkAboutElectric Board - Minutes - 02/23/2000Minutes approved by the ]Board at the May 17, 2000, meeting
FORT COLLINS ELECTRIC BOARD MINUTES
Regular Meeting February 23, 2000 at 5 p.m.
Council Liaison: Scott Mason JIStaff Liaison: Heather Hoxen - 221-6700 (W)
Chairperson: Jim Welch Phone: 498-8947 (W/H)
Vice Chair: Richard Smart I Phone: 221-4474 (H)
A regular meeting of the Fort Collins Electric Board was held at 5 p.m. on Wednesday, February 23,
2000, in the Utilities Training Room at 700 Wood Street, Fort Collins, Colorado.
BOARD PRESENT:
Barbara Rutstein, Ginger Purvis, Jeff Eighmy, Jim Welch, Joe Di Rocco, Richard Smart
STAFF PRESENT:
Bob Kost, Eric Dahlgren, Heather Hoxeng, Lisa Kokes, Lori Clements -Grote, Mike Smith, Wendy
Williams
GUESTS:
Scott Mason, City Council Member
John Bleem, Platte River Power Authority
OBSERVER:
Lu Fisk of the League of Women Voters
APPROVAL OF MINUTES:
Richard Smart motioned to approve the minutes of the January 29 meeting. Barbara Rutstein seconded
the motion, and it passed unanimously
WIND POWER UPDATE:
John Bleem reviewed the history of the Wind Power Program, including the associated costs and
prices. He explained that eight turbines have been built and have since produced 10 million kilowatt-
hours (kWh) of electricity. This is the total production for all purchasers (Fort Collins, Longmont,
Loveland, Tri-State and Aspen). The turbines produce some power 60 percent of the time with an
average production level at 33 percent of full power.
Revenues for 1999 are down because production was lower than expected. During two of the windiest
months in the spring of 1999, two of the turbines were not operating. Vestas has reimbursed Platte
River for a portion of the lost production. Because the wind energy production was lower, Renewable
Energy Production Incentive (REPI) payments from the federal government were also down. Also,
expenses were higher than originally expected due to the outage support costs.
Transmission continues to be an issue for future wind development. A 10 MW transformer owned by
the Western Area Power Administration (WAPA) serves the wind site, as well as two sets of lines that
Provide power to small towns in the area. Platte River currently has rights to 6.5 MW of transmission
capacity through this transformer and a private wind developer in the area currently holds the
remaining transmission rights. Upon completion of the two new turbines this summer, Platter River's
total generation from the site will be about 5.9 MW, of which 3.5 MW (about 60 percent) is dedicated
to Fort Collins. If one more turbine is added, the transformer capacity will be fully allocated. Options
include obtaining transmission capacity from the private developer (if possible), upgrading the
transformer or installing transformer capacity at the wind site. The cost of replacing the transformer is
estimated at about $500,000 (installed). If Platte River is the next party to request transmission
capacity through the transformer, they will likely have to pay for the transformer. If another entity
(wind developer) requests capacity, they will likely pay the costs.
Another transmission concern is the loss factor associated with lines and equipment carrying the energy
from the wind site to the City's customers. These losses all reduce the amount of wind energy that is
delivered to customers. The WAPA portion of this loss is 5.55 percent, based on the agreement Platte
River has for use of their system
Mr. Bleem closed by stating that future development of the wind site will be driven by customers'
willingness to pay for wind power. He also stated that performance evaluations would be completed
over the next few months to ascertain why the turbines are not performing as originally predicted.
Transmission constraints associated with adding more turbines will also be evaluated. Long term
issues include potential impacts of deregulation and global warming legislation.
Lori Clements -Grote updated the Board on the Wind Power Pilot Program statistics. To date, we have
444 full residential subscribers, seven full business subscribers, and six businesses that subscribed to
one or two 1,000 kWh blocks. Phase II of the Wind Power Program has 187 full residential
subscribers, 79 residential customers purchasing a total of 92 blocks of 400 kWh, three full business
subscribers, and two business subscribers purchasing a total of four 1,000 kWh. Mrs. Clements -Grote
also announced the subscription by Hewlett-Packard Company, which has decided to purchase 204,000
kWh per year of wind -generated electricity beginning March 1. Between the Pilot Program and Phase
II, there are 729 Wind Power subscribers.
Attrition has been very minimal for Phase II of the Wind Power Program. Four subscribers have
resigned from the program; three of the subscribers moved out of area, and one subscriber dropped out
of the program.
ELECTRIC INDUSTRY RETAIL RESTRUCTURING PRINCIPLES
The Board asked Jim Welch and Mike Smith to consult with Brian Moeck on the restructuring
principles and provide a revised copy for approval by the Board at the next [meeting. These principles
state the Electric Board's position on retail restructuring, for Council consideration when legislation
concerning this topic occurs.
Mr. Welch suggested the wording for number 20 of the revised Fort Collins Industry Retail
Restructuring Principles be changed to: "...to purchase renewable energy and support tax credits,
government funded incentives, portfolio standards, wire standards and other ways to encourage
investment and customer participation in renewable energy."
OTHER BUSINESS:
There was some disagreement between the Board and staff concerning whether or not the Board's
charge included transmission. Jim Welch asked Scott Mason if it was within the Board's charter to
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request information on transmission. Scott Mason stated that he felt it was appropriate to request
information from staff regarding issues, which the Board might make recommendation to Council. He
went on to say that if Mike Smith felt staff would be unduly burdened by a request of the Electric
Board, then the Board should make their request known to Council. Staff will be asked to work with
the Boards on Council's Policy Agenda first.
Mr. Mason noted that several small requests for information are routinely made at board meetings.
The general understanding is that staff will accommodate these requests if they are not overly
burdensome. The determination of whether or not a request is overly burdensome to staff is Mr.
Smith's decision.
Barbara Rutstein explained the request to have Platte River attend a meeting was to gain information
not to direct Platte River. She referenced the City of Fort Collins 2000 Legislative Agenda's inclusion
of transmission: "The electric utility is currently very unsettled with active debate being carried on
about a number of serious issues, including FERC jurisdiction over transmission access.
Mr. Mason stated that his expectation of Boards and Commissions is that they serve as `radar screens'
for Council. He appreciates the time and energy that the Electric Board puts into watching and
providing input on issues. He said he would talk to John Fischback, regarding what Council's
expectation of Boards and Commissions. Mr. Mason stated that he hoped staff would provide the
Board with the information they needed to advise Council.
Mr. Welch asked Mr. Smith if Platte River would be willing to come and give an informational
presentation on FERC Order 2000. Mr. Smith agreed to ask Brian Moeck if a presentation could be
arranged.
Adjourned 8:35 p.m.
Heather M. Hoxeng, Board Liaison
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