HomeMy WebLinkAboutElectric Board - Minutes - 12/16/1998JAN 2! 1999
AGER
II Council Liaison: Scott Mason II Staff Liaison: Shannon Turner - 221-6700 (W) II
Chairperson: Len Loomans Phone: 224-0385 (H) 407-7826 (W)
Vice Chair: Jim Welch Phone: 498-8947 (W/H)
A regular meeting of the Fort Collins Electric Board was held at 6 p.m. on Wednesday,
December 16, 1998 in the Utilities Training Room at 700 Wood Street, Fort Collins, Colorado.
BOARD PRESENT:
Bill Brayden, Jeff Eighmy, Len Loomans, Barbara Rutstein, Richard Smart and Jim Welch
100MIM F30.3afts
Mark Fidrych
STAFF PRESENT:
Lori Clements -Grote, Bob Kest, Mike Smith, Dennis Sumner, Shannon Turner and Wendy
Williams
GUESTS:
John Bleem of Platte River Power Authority and Lucinda Smith of the Natural Resources
Department.
OBSERVER:
Lu Fisk of the League of Women Voters
AGENDA:
1. APPROVAL OF MINUTES:
Changes to the November 18, 1998 minutes were proposed. Board Member Rutstein made a
motion to approve the minutes as amended. Board Member Smart seconded the motion. The
motion passed unanimously, and the minutes from the November 18, 1998 meeting were
approved.
2. CITIES FOR CLIMATE PROTECTION UPDATE:
Lucinda Smith gave Board Members a presentation on the progress of the Cities for Climate
Protection Campaign. The campaign, managed by the International Council for Local
Environmental Initiatives (ICLE), enlists local governments to develop greenhouse gas emissions
reduction targets and strategies to meet them. The ICLE mission is to improve urban livability,
local air quality and slow the earth's warming trend by empowering local governments to reduce
greenhouse gas emissions. The Cities for Climate Protection Campaign began in January 1993
in Toronto at the United Nations' first Municipal Leader's Summit on climate change in the
urban environment. Many municipal leaders were interested in uniting and looking at how cities
could reduce greenhouse gasses. More than 230 municipalities have joined the campaign. In the
United States there are 58 cities participating in the program. Denver, Aspen, Boulder and Fort
Collins are participants in Colorado.
Lucinda provided a background on global warming. COZ concentrations and emissions have
been significantly increasing since the 1800's and the industrial revolution. This increase has
negatively effected the climate. The five warmest years in the century occurred in the 1990's,
and global temperature records were broken each month in 1998. The Cities for Climate
Protection Campaign is most interested in carbon dioxide and methane, which are the most
predominant human -caused greenhouse gasses in the atmosphere. Carbon dioxide comes from
burning fossil fuels for transportation, heating and lighting. Deforestation has also increased the
amount of CO2 in the atmosphere. Methane gas is 20 to 24 times more potent than carbon
dioxide in terms of causing the greenhouse effect. The Cities for Climate Protection Campaign
are interested in methane gas, which results from the decomposition of solid waste in landfills.
Global climate change models predict that as the earth's climate warms there will be an increase
in frequency and severity of extreme weather events. If the earth continues to warm, we may
experience melting icecaps, rising sea levels, change in crop productivity, shifting patterns of
rain fall, health problems and refugee migrations from rural areas into cities.
Lucinda explained that cities should become involved in the global issue of climate change, as
dense human populations are major producers of carbon dioxide. Cities also bear the increased
costs of climate related weather events. During the 1980's the average insurance cost due to
weather related events was $2 billion per year, and in the 1990's the average increased to $12
billion per year. These figures show there is an economic aspect to weather severity.
The campaign recommends a target of 20 percent reduction below the 1990 levels of greenhouse
gas emissions by 2010. Many cities involved in the program have adopted this target, but a few
have a less aggressive target. Scientists believe the 20 percent target is the minimum required for
global warming abatement. The U.S. target discussed at Kyoto is a 7 percent reduction in
greenhouse gasses. The types of measures the cities are considering to reduce energy
consumption and solid waste have the benefit of saving money, potentially creating more jobs,
improving air quality and enhancing sustainability.
Lucinda provided Board Members with a background of the campaign. Fort Collins became
involved in the Cities for Climate Protection Campaign when it was incorporated into the air
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quality action plan, which was approved by Council in 1996. Council passed a resolution in July
1997, which acknowledged the importance of global climate change and states a commitment to
look at issues and set a target goal. Natural Resources Department staff performed an audit of
Fort Collins' energy consumption using 1990 as the baseline year. The energy audit was largely
completed in March 1998, but there is still some information being compiled. Fort Collins
received a grant from ICLE to assist in developing a local action plan, and some of these funds
were used to hire a local pollution prevention consultant.
Two teams have been formed to work on the campaign. A staff technical team consists of
representatives from Fleets, Building & Zoning, Facilities, Forestry, Natural Resources,
Transportation and Utilities. The staff team role is to assist in collecting data for the existing
measures, to suggest new ideas on emissions reductions and to coordinate with existing
programs. A Citizen Advisory Committee is made up of representatives from four City Council
Boards, including Electric Board, Transportation Board, Natural Resources Board and Air
Quality Board. It also includes representatives from the Chamber of Commerce Legislative
Affairs Committee, Colorado State University, (Facilities Management and the Industrial
Assessment Center), Natural Resources Ecology Laboratory, Sierra Club and Poudre School
District. Recently there has been some local business representation including two
homebuilders.
The teams identified over 100 current city and community measures that reduce greenhouse
gasses. Only 17 have been quantified because of the difficulty of collecting data. Both the staff
technical team and the Citizens Advisory Committee have identified new greenhouse gas
reduction measures. The teams have been considering four targets. The first target is a 20
percent reduction below 1990 levels. The second target is to achieve the same levels as in 1990.
The third target is a 20 percent per capita reduction below 1990 levels, and the fourth target is to
not exceed 1990 per capita levels. There has been no consensus on which target Fort Collins will
try to achieve. There is a public outreach plan in place to allow the public to give comment on
the proposed measures.
Lucinda presented data on the Fort Collins 1990 Energy Audit. Greenhouse gases from
electricity generation makes up 41 percent of the overall greenhouse gas emissions. These
figures were provided by Platte River and take into account that Rawhide Energy Station is a
clean plant and they supply 35 percent hydropower. Achieving a 20 percent reduction in
greenhouse gas levels in Fort Collins by 2010 Fort Collins would require a reduction of 2.1
million tons of CO2 emissions. This is based on forecasted energy consumption in 2010 without
efforts to reduce greenhouse gases (a worst -case scenario). It is also high because of the growth
rate Fort Collins has experienced and may experience in coming years.
The teams have identified the following existing measures to assist in reaching the goals. The
largest existing measure is the vehicle miles traveled (VMT) goal. This goal, stated in the Master
Transportation Plan, is to keep the VMT growth rate from exceeding the population growth rate.
If the VMT goal is achieved, there will be a savings of 130,000 tons of COZ in the year 2010.
Another existing measure is a Pay As You Throw program, which is combined with the existing
recycling program. A significant measure is the existing model energy code. If the energy code
remains in place, there will be a savings of 40,000 tons of COZ in 2010. Colorado State
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University's Industrial Assessment Center offers energy audit assistance to small industrial
businesses. They have audited 25 Fort Collins businesses since 1990. The energy efficiency
savings of these 25 businesses have been accounted for, and the projected savings is 14,000 tons
of COZ in 2010. Improvements made to the Fort Collins electricity distribution system that
reduce transmission losses will account for a 10,000 ton COz savings in 2010. According to
figures provided by the City Forestry Department other greenhouse gas reductions have resulted
from tree planting in Fort Collins. If planting continues at current rates there will be a 7,000 ton
CO2 reduction in 2010. The existing Wind Pilot Power Program will save 3,500 tons COZ in
2010. Several other existing measures which reduce greenhouse gases include methane flaring at
the water reclamation plant, lighting retrofits, motor upgrades, and programs supported by
ZILCH. The total benefit from existing measures is approximately 342,000 tons of COZ saved in
2010, which equals 17 percent of the most aggressive target.
Potential new measures have been divided into three categories, municipal measures,
citizen/community measures and community measures. Municipal measures the Cities for
Climate Protection teams are looking at include: landfill methane recovery; City energy
challenges to reduce municipal energy consumption by 15 percent; decrease fuel consumption of
city fleet vehicles; promote telecommuting; encourage a percentage of renewable resources in
electric deregulation law; and encourage corporate average fuel efficiency standards (CAFE) by
lobbying for federal regulation.
Voluntary citizen/community measures include a carbon dioxide decrease challenge among
businesses and a program to have each Fort Collins residence use one compact florescent bulb.
New measures under discussion will require cooperation from City government, citizens and
businesses. One of these measures is to add more wind power to the Fort Collins Utilities energy
sources. The committee has identified four scenarios for the wind power program. The first is to
increase voluntary subscription to the program to achieve a goal of three new turbines. The
second goal is to provide four percent of the electricity demand with wind power by 2010.
According to projections, the Utility would need to add 13 new turbines, which would result in
14,000 tons of CO2 saved. The third goal is to provide wind power for all new residential
electricity growth from 2000, which requires 88 new wind turbines. The last goal to provide
wind power for all new residential growth from the baseline year of 1990, would require 166 new
wind turbines.
Platte River and Utilities staff recently met with the Cities for Climate Protection teams and
provided background information on the proposed wind power scenarios.
Other new voluntary measures being considered include increasing tree planting locally and
internationally, expanding recycling such as yard waste recycling and adding office paper to the
curb side pickup list, and encouraging alternatives to residential air conditioning.
The Cities for Climate Protection Committee plans to complete the draft plan in January. There
will be a public open house on January 26 at the Lincoln Center. After the draft plans are
completed the group would like to get comments and recommendations from the various Boards.
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There is a Council Study session on February 9, and the program will go to Council on March 2
for approval.
There was a question regarding the cost of the mandatory measures. Board Members want to
know if the committee has an idea of which measures would be the best investment. Lucinda
mentioned the committee evaluated rough estimates of COZ savings and costs but had not
factored in the savings that would result from the measures. The committee will evaluate costs
further. Lucinda related the committee will be suggesting municipal measures first but will also
include community outreach measures.
Lucinda suggested she could present the proposed measures at the January Electric Board
meeting and get the Board's recommendation at that time. Board Members agreed.
Board Members requested information regarding how many wind turbines the Medicine Bow
Site could support. John Bleem noted that transmission and capacity on TOT 3 are significant
issues. It is impossible to add 166 turbines with the existing transmission. There is already a
limitation today in terms of firm energy on the transmission system. Wind energy is a non -firm
resource, which has no capacity. The transmission system could likely handle an addition of ten
to twelve turbines at the most, assuming no other entities require use of the line and assuming no
curtailments on TOT 3.
There was some discussion about increasing the number of turbines at the Medicine Bow site,
selling the wind power in another market, and then retaining the carbon offsets. John explained
this was feasible, but PRPA would want to have a contract in place to sell the power to another
entity before building more turbines. There was a question regarding whether there are any long
term plans to increase the transmission system on TOT 3. John related the current regional plan
to address load growth along the Front Range is to build more gas fired generation in Colorado.
Building another transmission line is not a preferred option due to the perceived environmental
impact. Board Members discussed the idea of putting additional wind turbines in Colorado.
Although this would solve the TOT 3 problem, there was concern that there is not as much wind
in Colorado as in Wyoming.
STAFF REPORTS:
WIND SURVEY
Lori Clements -Grote provided Board Members with an update on the wind survey. In the spring
of 1998, Fort Collins Utilities received a grant from the Governor's Office of Energy
Conservation to conduct the study. The study was designed and conducted by Q4 Associates of
California, in cooperation with TecMRKT Works, of Virginia. The Utility was fortunate to also
have the advice and support of Barbara Farhar, a researcher with the National Renewable Energy
Laboratory.
The researchers have requested that we not distribute electronic copies of the report. There are
plans to add the executive summary to the web site, and staff will provide hard copies to anyone
who is interested.
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In the copies Board members received, the researchers inadvertently left out part of the chart on
pages 8 and 9. Information will be provided to Board Members in the January packets. The
omitted information provides the number of subscribers resulting from each publicity measure.
The purpose of the study was to obtain more information about who subscribed and who did not
subscribe, why customers did or did not subscribe and to better understand customers' future
interests in the program. Telephone interviews were conducted in August and September. There
were random samples of three groups of residential customers: 248 subscribers, 307 interested
non -subscribers and 381 other customers. The researchers tried to exclude students because the
pilot was targeted to homeowners who pay utility bills and were willing to commit to the
program for at least three years.
The results of the survey were analyzed at a 95 percent confidence level, with a plus/minus 5
percent level of precision. Each of the three surveys consisted of approximately 35 questions.
Researchers tried to keep the calls to a maximum of 15 minutes, but respondents were anxious to
discuss wind with the interviewers, and many calls lasted 25 to 30 minutes. The survey sought
information in four areas: why and how did members of the three groups make their decisions
about subscribing; how did promotional materials affect decisions to subscribe; what people are
willing to pay for green power; and any characteristics common to each group that would allow
predictions about who will and will not subscribe (e.g. demographics or lifestyle factors). Table
1 on page 2 of the results goes into more detail about the survey questions.
In designing the survey, the researchers used the widely accepted model of "diffusion of
innovations" theory. This model basically defines how individuals and organizations adopt an
innovation. In the case of the Wind Power Pilot Program, customers were asked to adopt two
innovations -- first to use wind power to generate electricity, and second to pay extra for that
power. The questions explored characteristics that are likely to influence the diffusion of wind
power in Fort Collins. The chart on page 13 of the report shows this model in detail. This chart
concludes that people adopt innovations at different times in the life cycle of a product or
service. Typically, "innovators" make up about 2.5 percent of a normal population, and they are
the first to adopt a product or service. The second and third groups to adopt a new product or
service are the "early adopters," consisting of 13.5 percent and the "early majority," consisting of
34 percent. The fourth group to adopt a new product or service is the "late majority," consisting
of 34 percent. The last group to adopt a new product or service includes the "laggards,"
consisting of 16 percent of a normal population. The results of the study show there are
significant differences among the groups, and these results have implications for the wind
program.
First, the subscribers' demographics were examined to see how they influenced decision -making.
The social and lifestyle characteristics of respondents were explored, and researchers considered
whether people are predisposed to accept new ideas and products and examined whether this
influenced their subscription to the program. The survey explored awareness of green power and
wind energy in general, reasons for subscribing, perceived benefits and negatives of the program,
and cost. The survey looked at the attitudes and beliefs of subscribers and interested non -
subscribers, and asked how these groups make trade-offs between the environment, the cost of
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power, and the issue of who should pay. Finally the survey examined customers' preferences for
the Utility and our services and products, and whether this had any influence on subscription.
Lori provided Board Members with a broad overview of the demographics of survey
respondents. The respondents were different than the average Utility account holder in that there
were more homeowners in the group and less people age 18 to 24. The household compositions
in terms of number of family members are somewhat different from the average utility account
holder. All groups of the respondents reflect Fort Collins' well educated citizenry.
When looking at the demographics of subscribers, researchers found that education is clearly and
positively linked to subscription. While all of the respondents have high education levels, the
subscribers have the highest with 56 percent having graduate degrees and 80 percent having at
least a bachelor's degree. The survey results found there are typically more engineers, educators
and scientists among the subscriber group. The subscribers have higher income levels (22
percent make more than $75,000 per year). Subscribers were more likely to be 35 - 44 years old
or 55 — 65 years old. There was an even gender split.
Researchers looked at the demographics of interested non -subscribers and found 34 percent have
graduate degrees and 68 percent having at least a bachelor's degree. The non -subscribers were
predominantly middle income; only 13 percent of interested non -subscribers have incomes
greater than $75,000. Interested non -subscribers had the highest percentages of households in
lower income categories, 35.2 percent made $29,999 or less yearly. The report states that income
may have inhibited this group from subscribing. This group consisted of retirees, white collar
and blue collar occupations. This group was more likely to be age 25-54 or over 65. The people
in this group were more likely to be renters as opposed to homeowners.
Demographics for other customers found 51 percent have at least a bachelor's degree, this group
had the highest percentage of people with a high school education or less. Included in this group
were both blue and white collar occupations, retirees and homemakers. Members of this group
were predominately between 35 — 54 or over 65 years old, and there were more women in this
group. Researchers reported these demographic findings are typical of a telephone survey.
Researchers looked at how motivations differ in relation to customer lifestyles, values and
decision -making processes. Based on earlier work, researchers had reason to believe that people
who are more community oriented would be more likely to subscribe. Therefore, they asked
questions around the level of participation in community and environmental activities and
number of newspaper subscriptions. Two variables clearly differentiated the three groups of
respondents, one was the participation in environmental organizations and the second was the
number of newspaper subscriptions. More than 70 percent of households in all groups were
active in community, school or church. Participation in community service organizations and
other community activities did not vary significantly among the three groups. However, there
was a difference in affiliation with environmental organizations. Among the subscribers, 55
percent were members of environmental organizations, compared to 32 percent of interested
nonsubscribers and 13 percent of other customers. Subscribers and other customers had about
the same number of newspaper subscriptions, while interested non -subscribers had fewer
subscriptions than the other two groups.
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Lori went over a chart, which showed a typical diffusion of innovations curve. The distribution
of survey respondents roughly corresponds to the standard distribution, which would be
expected, but there was only a slight tendency for subscribers to be innovators, early adopters or
in the early majority. After looking at the data as a whole, this was not necessarily surprising
because other patterns in the data demonstrate that subscribers have a strong, long -held
commitment to the environment. Subscribing to the Wind Power Pilot Program was not a matter
of adopting a new idea, but rather a means of expressing an existing value.
Survey results show subscribers' sources of information and the relative importance of each.
Table 17 (on page 32) shows that information provided by the utility was most important and
most frequently remembered by all three groups. Interested non -subscribers and other customers
cited newspaper items in addition to materials from the utility. Subscribers were statistically
more likely to cite personal sources of info such as friends, neighbors and community
organizations. One quarter of subscribers and one in seven of the interested non -subscribers
reported receiving information through personal contact. These personal contacts were mostly
self -initiated, except for activity sponsored by the Sierra Club.
Researchers used another method of exploring respondents' lifestyle factors, which involved
asking respondents for their reasons for subscribing and the relative importance of their reasons.
Environmental reasons are at top the of the list, including improving and protecting the
environment, conserving natural resources and encouraging clea&,i energy sources. About 3/4 of
the subscribers rated "community good" as extremely important. Researchers believe
subscribers defined "community good" very broadly and probably in an environmental sense.
More than half of the subscribers rated the questions "makes me feel good" and "shaping the
future" as very important. Helping Fort Collins be a progressive city and helping the local
economy were rated lowest on the list of reasons for subscribing.
Researchers asked interested non -subscribers and other customers why they did not subscribe to
the wind power program. Top responses included pricing, cost and equity issues. Both groups
stated they should not have to pay more for wind energy, or that they perceive their electric bills
to be too high already. Other important reasons included information and awareness. Other
customers were more likely to lack an understanding of how the program works or did not
receive sufficient information about the program. Both groups cited personal priorities as
reasons they did not subscribe. Other customers were more likely to say they were not interested
or too busy. Interested non -subscribers were more likely to say they were either too busy, or
they wanted to wait and see how the program went. Also cited were reasons about their
perceived eligibility because they were renters, or they anticipated a move within the next three
years.
The data show that the three groups have varying levels of knowledge about both wind power
and green energy. Table 20 on page 36 summarizes how subscribers and interested non -
subscribers were more knowledgeable than other customers about the issue of wind power and
green energy. Half of subscribers and a third of interested non -subscribers indicated a fair
amount to a great deal of knowledge about wind power and green energy, whereas less than a
quarter of other customers indicated the same level of knowledge.
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Subscribers, interested non -subscribers and other customers who said they were aware of the
program were asked their opinions. Just over half of subscribers remembered the wind energy
charge on their bills. Of subscribers, 35 percent said the bill was higher than expected, 8 percent
said the bill was lower and 55 percent said the bill was about what they expected. When asked if
they would continue in the wind program after the three-year commitment, 80 percent responded
"yes." Ninety percent of the subscribers would recommend the program to others. Forty-nine
percent of interested non -subscribers said they would subscribe in the future, and 30 percent said
they may subscribe in the future. Of the customers who were aware of the program, 14 percent
said they would subscribe in the future, while 23 percent said they may subscribe in the future.
As expected, the survey found that subscribers are more satisfied with the wind program than
interested non -subscribers. Subscribers rated the program 7.6 on a 10-point scale, while
interested non -subscribers rated the program 6.6. The survey also explored the least -liked or
negative aspects of the program. Only half of the subscribers mentioned any unfavorable
features. Pricing and cost were the most frequently mentioned unfavorable features by all three
groups. Interested non -subscribers and other customers most prominently mentioned these
issues. Program issues were third on the list of unfavorable features. Subscribers believed more
should be done to promote the program and provide inform them about the current status of the
program. Interested non -subscribers and other customers mentioned wind was not a reliable
source of electricity, and the towers and turbines cause visual and noise pollution. There was
some concern regarding raptors,'but there were fewer comments about this issue than other
environmental issues.
Respondents were asked for suggestions on how to improve the program. There were no
suggestions cited by''/z of the subscribers and ''/a of the interested non -subscribers. Verbatim
responses were coded into 19 categories and are in Table 28 on page 48 of the report.
Subscribers want the Utility to provide more information about the program. Both subscribers
and interested non -subscribers want to see more subscribers and want the program to be more
widely marketed.
Several questions measured attitudes about Utility and loyalty to the Utility. An important
difference was noted in terms of the perception of rates. Subscribers perceive Fort Collins'
electric rates as lower than other Colorado utilities. Interested non -subscribers perceive rates to
be lower or about the same as other Colorado utilities, and other customers perceive the rates to
be about the same or higher. There were no significant differences in level of participation in
other utility programs, such as ZILCH, Hot Shot, Energy Score and the environmental program
series.
Subscribers were found to be clearly more loyal than the other two groups. Only 3 percent
would switch to another power provider for small savings and 17 percent might switch. Of the
interested non -subscribers and other customers, 40 percent would or might switch to a different
electrical supplier for a small savings. Twice as many subscribers as other customers wanted the
Utility to continue green programs.
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Lori reviewed a chart (Figure 10 on page 52) which showed how the three groups compared
when asked about green power costs and willingness to pay. There was very little support
among all three groups for producing power at lowest possible cost without regard to the
environment. The vast majority wanted energy production with environmental responsibility.
There was agreement among the three groups that programs like the Wind Power Pilot Program
should be offered to customers who are willing to pay. Subscribers more strongly agreed that
everyone should share in the cost of green power. All three groups rated low or no -cost
programs, having a local office and appliance efficiency information as less important.
Cost and equity issues were recurrent themes throughout the study. Researchers told subscribers
that the average amount paid by other subscribers per month was about $10.00, and then
subscribers were asked if they were willing to pay more in $2.00 increments until they got to a
point where they said "no, I would not be willing to pay that amount." According to the report,
the program could have been priced at 2.5 cents per kilowatt-hour with only a slight reduction in
subscribers.
Interested non -subscribers and other customers were asked about two different willingness to pay
scenarios. These groups were asked whether they were willing to pay a flat fee for wind power
in increments of either $5.00, $10.00 or $15.00 per month, or whether they would be interested
in a block rate program. The respondents were asked about willingness to pay higher and higher
rates until they reached a level at which they would not subscribe. Of the non -subscribers, 76
percent said they would definitely or maybe pay a flat fee for wind power. The survey found 56
percent of the other customers surveyed would pay a flat monthly fee for wind power. Nearly
two-thirds of interested non -subscribers would consider blocks, while 41 percent of other
customers would pay for wind in blocks.
The researchers conclude that the Utility needs to continue to provide information about the wind
power program. The program is well received in the community and should be continued.
Subscribers want feedback, and they want the utility to inform all customers about the program.
As the environment is a key issue with all three groups, the report recommends that clean power
generation be stressed. Of all customers surveyed, 60 percent or more believe the utility should
include green power programs. The researchers recommend that the Utility target marketing
resources to affluent and environmentally oriented customers to increase participation in the
Wind Power Pilot Program.
Researchers extrapolated from the data to determine potential subscribers, including subscribers
who will continue with the program. More than 17,000 customers would be expected to
subscribe or will continue to subscribe. Since cost is a problem for customers, researchers
suggest the Utility consider allowing people to participate in the wind power program at different
levels.
Board Members discussed the block system which Public Service Company (PSCo) uses for its
wind power program. PSCo charges $2.50 for each kW block of power. Customers of PSCo can
purchase as many blocks as they choose. Lori explained we have heard from some subscribers
who have dropped out of the program that they would like to participate on a lower level.
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Board Members were interested in having a message put on the Utility bills, which thanks our
current wind power subscribers for their support. Staff related our current system cannot handle
targeted messages, but staff will put a message on all of the utility bills.
There was discussion about publicizing the wind power program. Lori informed Board Members
that the Utility will continue producing the quarterly newsletter and publicizing the program on
the web site. After one year, Mike Smith said staff will do a summary of the wind program,
present the summary and make a recommendation to the Board and Council as to how to proceed
with the program. Some members expressed an interest in replacing the pilot program with a
permanent program at this time.
4. OTHER BUSINESS:
John Bleem updated Board Members on the transmission issues at the Medicine Bow wind
power site. There is approximately 2,800 acres of land at the site, with a forty -year wind rights
lease. A five -mile transmission line runs north from the site to the Medicine Bow substation
which is part of the Western Area Power Administration (WAPA) system. From the substation,
the power goes into WAPA's transmission system, then to the Platte River transmission system
and then to the Fort Collins distribution system to be delivered to customers.
John figured the maximum number of turbines that could fit on the land at the Medicine Bow site
to be 180. However, the limitation at the site is transmission. The first five miles of
transmission line can handle 10 - 12 turbines. There is no guaranteed transmission capacity for
firm energy because of the TOT 3 constraints. WAPA requires that the capability exist for
generation to be shut off when transmission on TOT 3 is constrained. John estimated that
approximately 90 percent of the time the non -firm wind energy could get through on TOT 3, but
this issue needs to be studied.
There was a question whether Fort Collins would be without power if TOT 3 goes down. John
explained PRPA is not dependent on TOT 3 for firm energy.
PRPA is negotiating contracts to add four turbines to the Medicine Bow site. PRPA is exploring
selling the energy from two turbines one to Tri-State and one to Aspen. The transmission of this
energy is to be negotiated by Tri-State and Aspen.
There was some discussion regarding cost effectiveness of building turbines in Colorado versus
building at the Medicine Bow site. John related rough costs could increase by 30 - 50 percent,
but these figures do not include building a substation.
Board Members asked John about federal credits for green power. John explained the
Department of Energy (DOE) has two tiers for green power credits. Tier one includes ultra clean
resources, which are solar and wind. Tier two includes pseudo renewables such as burning
natural gas from waste treatment plants, raising vegetation and burning it in a boiler, burning
municipal waste and fuel cells. The Board also asked about deregulation requirements.
Deregulation requirements are specific, and it is likely Colorado will face green power
requirements in the future.
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Dennis Sumner informed Board Members that R.W. Beck, the consultant for the strategic plan,
will presentation their preliminary findings from 5 to 7 p.m. on Thursday, February 4. This will
be a combined presentation for the Water and Electric Boards.
There was a question regarding why PRPA sold Platte River Solutions' accounts. Mike
explained PRPA sold their service contracts to a company called Encirco because the business of
gas aggregation is very risky. The Platte River Solutions company still exists but there are no
accounts. The initial purpose of trying to develop long term relationships with large customers
did not materialize.
Board Members requested verification regarding the revenue generated by leasing of the dark
fiber. Staff explained the revenue will go into reserves until it is appropriated for expenditure.
The revenue will be split 50/50 percent between the General Fund and Utilities.
Adjourned 8:45 p.m.
annon L. Turner, Board Liaison
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