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HomeMy WebLinkAboutElectric Board - Minutes - 08/16/1995Minutes to be Approved by the Board at the September 20, 1995 Meeting FORT COLLINS ELECTRIC BOARD MEETING MINUTES August 16, 1996 BOARD MEMBERS PRESENT: Jeff Eighmy, Mark Fidrych, Len Loomans, Richard Smart, and Jim Welch Bill Brayden and Barbara Rutstein STAFF PRESENT: Ellen Alward, Don Botteron, AI Boushee, Delynn Coldiron, Eric Dahlgren, John DeHaes, Paul Folger, Ron King, Bob Kost, Jon McHugh, Tom Rock, Tim Sagen, Rich Shannon, Dennis Sumner, and Doug Swartz. OTHERS PRESENT: Felix Lee, Gwyn Strand, and John Wappner. BOARD LIAISONS: Council Liaison -- Alan Apt Staff Liaison -- Don Botteron APPROVAL OF MINUTES: A motion was made by Board Member Eighmy to approve the Minutes. Board Member Fidrych seconded the Motion. The Motion passed unanimously and the Minutes from the June 21, 1995 meeting were approved. 2. L&P STRATEGIC PLANNING UPDATE: Dennis and Paul provided Board Members with an update on continued strategic planning efforts. Dennis mentioned that the Strategic Planning Team tried to look at all issues and trends that could impact our ability to provide service to customers. Over 200 issues were identified and researched. Based on the research that was done and follow up discussion, the following 23 major issues and trends categories emerged as the most critical issues based on today's environment: 1. Privatization legislation 2. Expanding into gas supply business -1- 3. Expand proactive customer outreach 4. Marketing 5. Telecommunications 6. Supply side commodity acquisition 7. Options menu, multiple products and services package 8. Form of governance 9. Power quality and reliability 10. SCADA and marketing SCADA services 11. Retail wheeling 12. Automated meter reading 13. Environmental 14. PRPA competitive initiatives 15. Expanded demand side load management efforts 16. Cost identification 17. On -site generation (natural gas) 18. Multiple pricing options 19. Customer service enhancements 20. Partnerships 21. Acquisition/buy out 22. Marketing energy services 23. Marketing distribution services A brief description of each category, risks and opportunities associated with each category, and the Strategic Planning Team's preliminary findings for each of the categories were presented. Board Members discussed this information. The preliminary findings of the Strategic Planning Team covered a tremendous amount of information. At this point the information was fairly vague, but Board Members were in agreement that staff is headed in the right direction. It was mentioned that ultimately, everything that is done through the strategic planning efforts should reflect the values of the Community, and other specifics, which were included in the Resolution passed by Council. There was concern expressed over using the word "corporate" to identify Light and Power instead of "utility." For some Board Members, the word "corporate" implied "corporation." Corporation = profit; this is the wrong message to send to our customers. "A public utility" more accurately describes what we are, and would be looked at differently by the public than a corporation. Board Members agreed that efforts to clarify who we are and what we are should continue. Upholding Community values, local control, low prices, and other Utility successes, should be included as part of the Utility's image message -- this is the message that needs to get to our customers. There was some discussion on cost -based and market -based service. Dennis mentioned the importance of knowing exactly what our costs are to ensure successful and responsible decisions in a market driven competitive environment. Unbundling activities, and the importance of knowing the associated costs, were also briefly discussed. It was -2- mentioned that retaining customers and being a viable utility includes costs, but also includes a whole lot more. It is important that we not lose sight of the "whole lot more" piece. Cost is not the only or most important issue. It is cost, plus the "whole lot more" that will make the difference in helping us retain and gain customers. Out of the 23 major categories that were presented, 12 would be significant new undertakings for the Utility. There was some concern that the Utility might not be able to take on 12 completely new projects. The remaining 11 categories are areas the Utility is already involved in, and current focus is to continue with and improve our level of service in these areas. Board Members agreed that the Utility should continue working on and expand those areas we already do well. It was also mentioned that industry is moving towards more dynamic markets, more real time pricing, more customer -driven, interactive services, etc. This new environment reflects a value to our Community and provides the Utility with a potential opportunity to partner with other industries in our Community to develop and be able to offer this type of product to our customers. Some of the areas the Utility is not currently involved in, such as natural gas, are areas where the most potential exists. It is important that we do not automatically exclude these projects just because they are unfamiliar or we are not very good at them. Board Members have shown, and continue to show interest in working on the governance issues. Staff applauds the Board's enthusiasm surrounding this issue and plans to begin work on this as soon as possible. The Strategic Planning Team is scheduled to meet on Friday to review the suggestions and comments that have been received. Once necessary changes and adjustments have been made based on the feedback received, the Team plans to sift through the information, and focus on the categories that warrant additional study. The Team is anticipating that this will take approximately two months to complete. Once these studies have been completed, strategic plans and action plans will be developed. The Strategic Planning Team will share their work with the Board once this has been completed. This presentation is currently scheduled for the November 15th Electric Board meeting. 2. BUILDING CODE UPDATE: Felix Lee, Director of Building Inspection and Zoning, provided Board Members with an update on the proposed Energy Code package. Light and Power staff, Doug Swartz and Jon McHugh, have been providing technical assistance to the Building Department on this two- year project. An earlier draft staff proposal (January 1995) was reviewed in a series of meetings with two technical advisory committees: one considering the residential portion, the other considering the commercial/industrial portion. Comments from these groups, as well as comments from those attending a public open house on the code proposal in April, 1995, were taken into account as the current draft was developed. Economic analysis was done on the code provisions and also influenced the final package. -3- The code is now separated into two distinct portions: residential and commercial/industrial. The 1995 edition of the Model Energy Code is being used as the framework for the residential portion of the code, with local amendments. It is an incremental step forward from current building practice. The most significant change is increased emphasis on optimum installation methods and contractor self -accountability. In some areas, performance testing is offered as an alternative to the prescriptive requirements. The City, with the support of the state Office of Energy Conservation, will conduct house testing to evaluate the effectiveness of these code changes. Felix provided some insight on how Ft. Collins' energy code package compares to the rest of Colorado and the nation. He mentioned that a study done by the Office of Energy Conservation a year ago indicated that 106 Colorado cities have an energy code. 70 of these also have a commercial energy code. 23 of these have adopted the 1989 or newer version of the Model Energy Code. Nationally, 20 states have adopted the ASHRAE/IES Standard 90.1 or something greater. Felix reviewed the prescriptive requirements for gas and electric heat homes under the proposed residential energy code. Doug mentioned that these prescriptive requirements are only a piece of a more comprehensive package. The gas -heated prototype home (approximately 2,600 sq. feet) that was modeled for this project indicates that approximately $1,300 will be the added front-end cost to new construction to incorporate the proposed changes, relative to current practice. The same home with electric baseboard heat is estimated to require about $1,700 in upgrades. Other "affordable housing" examples showed much smaller cost increases. Board Members discussed the information that was presented. In response to a question on how well the proposed changes would address current code inadequacies, Doug mentioned that future support activities, including contractor training, performance testing, and other education efforts are at least as important as the prescriptive changes. The real crux of this effort is helping contractors understand the necessity of these changes. If we inform contractors and show them the benefits realized by their customers and themselves by incorporating these changes, they will have increased internal motivation for doing these things. Educating the consumer and making them aware of the issues is another important piece. By concentrating on education and research, and backing off a little on the prescriptive requirements and ordinance changes, there is a good chance that there will be more cooperation from the building community. Staff is taking the stance that this is a continual change process. During training staff will take the opportunity to talk about and recommend builders incorporate measures which are considered to be "pushing the edge" from a code standpoint. Staff will concentrate on collecting data on these issues and will use that information when considering potential code changes in the future. At this point, widespread opposition from the building industry is not anticipated. Most builders are aware that changes are coming and know that at least some parts of the current code are obsolete. ME The Commercial/Industrial Code is based on the ASHRAE 90.1 standard. The work on this piece of the energy code package has not been nearly as controversial as the residential. Many of the designers and professionals in the commercial/industrial building industry already use this standard. The biggest change for the commercial/industrial code is the new lighting standards. Significant resistance is not anticipated. Board Members thanked Felix for the opportunity to get involved in this project. They were appreciative of the work that had been done by Felix, Doug, Jon, and all others that were involved. The energy code proposal reflects the hard work and good thought that went into this effort. There was agreement that this proposal supports the Board's proactive stance on these types of issues, and separates Ft. Collins as a leader in the State for its progressive energy code efforts. A motion was made by Board Member Eighmy to endorse the revised energy code proposal. Board Member Welch seconded the motion. The motion carried unanimously. It was mentioned that this is a good package -- there are substantial energy savings possible with the changes being proposed. This proposal, however, is merely the first step in the process. There is a lot of effort left to be done to implement what has been proposed. STAFF REPORTS: None. 4. INFORMATIONAL REQUESTS: Status of the cooperative study with Platte River and the other cities. TCI video on the Interactive Utility System OTHER BUSINESS: Board Member Welch commend Rich Shannon on his presentation to Platte River Power Authority on the merits of wind power. He encouraged Board Members to get a copy of this information if that is possible. Chairperson Smart recognized our new Board Member, Len Loomans. 6. AGENDA ITEMS: Election of Officers Update on Platte River Activities -- how they relate to us -- planning, short-term plan Electric Rate Adjustments Current status on DSM Programs. Info on Retail Wheeling Legislation -5- ADJOURN: The meeting adjourned at 7:35 p.m. Delynn Coldiron, Board Secretary 0