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HomeMy WebLinkAboutElectric Board - Minutes - 11/18/1992Minutes to be approved by the Board at the December 16, 1992 meeting. FORT COLLINS ELECTRIC BOARD MEETING MINUTES November 18, 1992, 5:00 - 6:30 P.M. BOARD MEMBERS PRESENT: John Allum, Mark Fidrych, William Orendorff, Barbara Rutstein, Richard Smart and Larry Walsh. BOARD MEMBERS ABSENT: Dane Brandt. STAFF PRESENT: Don Botteron, Allen Boushee, Delynn Coldiron, John DeHaes, Ron King, Bob Kost, Bob Nastan, Tim Sagen, and Dennis Sumner. BOARD LIAISONS: Council Liaison - Gerry Horak Staff Liaison - Don Botteron CALL TO ORDER: Barbara Rutstein called the meeting to order. AGENDA: 1) Approval of Minutes 2) EMF Statement 3) Status of Rate Increase 4) Discussion on TABOR Amendment DISCUSSION TOPICS: 1. APPROVAL OF MINUTES: 2 5) Discuss Draft 1993 Work Plan 6) Other Business 7) Critique Meeting/Next Meeting's Agenda A Motion was made by Board Member Allum to approve the Minutes. Board Member Smart seconded the Motion. The Motion carried unanimously and the Minutes from the October 14, 1992 meeting were approved. EMF STATEMENT: Board Members were provided with a revised draft EMF Statement as requested. Board Members discussed issues surrounding "prudent avoidance." - There was some concern by Board Members that prudent avoidance should be mentioned in the EMF Statement and that by not addressing this issue, it may be perceived by Council that the Board is trying to avoid this issue. - Prudent avoidance is a comment about the uncertainty of available research. There was some discussion about how to balance between the concerns of what level of activity is considered to be prudent avoidance and being as up front and clear on this issue as possible. Electric Board members were concerned that there should be no appearance, deliberate or nondeliberate, of not facing this issue. Board Members had differing views on what constitutes prudent avoidance: - Prudent avoidance does not necessarily have standards -- creating standards is the next step. One view of prudent avoidance was that if you are routing a line, you go around schools and hospitals; have wider spacing; rotate phases, etc., to minimize it. Another view of prudent avoidance was that if a customer was concerned about EMF and wanted some suggestions on what types of things could be done to minimize EMF, they could be given guidance on the things they should avoid, i.e., don't use electric blankets, move the radio alarm clock away from the bed, etc., in accordance with the EMF booklet. - Another view of prudent avoidance was that it has a connotation of common sense. It was mentioned that although the Board should not be totally innocuous to this issue, the Board is not in a position to say that prudent avoidance is the way to proceed. If the EMF Statement includes language on prudent avoidance, there is a possibility that the public will believe that the burden of doing things to help avoid this problem is on the Utility. The Utility is already doing a number of practices which might be considered as prudent avoidance, i.e., placing lines underground, placing the conductors closer together, etc. The next increment of improvement that can be made and can be called prudent avoidance is not clear. There was some concern about including language on prudent avoidance because this issue is ambiguous, there is no quantification, there are no standards, etc. The Utility can't hold itself up as being prudently avoidant when there are no standards in place to check against. It was suggested that language be included in the EMF Statement that states that there are no federal or state standards defining prudent avoidance. The following changes to the cover memo and the EMF Statement were proposed: It was noted that there are concerns about risks associated with EMF, they are just unknown. On the cover memo, third sentence, it was suggested that the words "if any" be taken out. The sentence should read: The Board also recognizes that the state of the research does not allow specific conclusions to be drawn about the risks of electromagnetic fields. -2- It was suggested that wording be added to the EMF Statement stating that the concept of prudent avoidance is reasonable at this point. Board Member Allum suggested that the following statement be placed in the EMF Statement as the fourth bullet under Background: "Fort Collins Light & Power will be sensitive in the design, location, operation and construction of City electric facilities to the potential impacts of EMF and encourage customers to use electricity safely and efficiently." Board Members were unsure of whether or not the word "operation" should be included in the above statement. After discussion, consensus of the Board was to delete the word "operation" from the above statement and to include this statement as the fourth bullet in the Background section of the EMF Statement. Board Members also suggested that the word "operating" be deleted from the title of the EMF Statement. Title should now be: "City of Fort Collins Light and Power Guideline on Electromagnetic Fields." It was suggested that wording be added to the EMF Statement stating that the policy will be revised and reviewed at a later date based upon new research. This wording suggests that this is an ongoing concern of the Board and not a once -and -for -all statement. Board Members were in agreement with the clause regarding revision of the EMF Statement stated below, which will be added to the EMF Statement: "The Guideline will be reviewed periodically and updated as the research yields new scientific data." STATUS OF RATE INCREASE: Don Botteron informed the Board that the rate increase passed on second reading 4-1. He thanked Board Members for their patience and cooperation and Board Chairperson for taking the time to attend the Council meeting. Don also mentioned that he had copies of the slides that were used for the rate presentation which was given to Council if Board Members were interested in having these. Board Members did have one question -- Where does the annual 1 million dollars of positive net income go? Don answered by saying that the 1 million dollars flows directly from the Comparative Statement of Income into Changes in Working Capital and combines with Contributions in Aide to Construction and the Depreciation Reserve to fund the Utility's capital expense. The goal of the Utility is for these three revenue sources to equal capital expense (over the five year plan) so reserves stay at the same level. DISCUSSION ON TABOR AMENDMENT: Bob Kost reported that the Amendment passed. He mentioned that although the Amendment passed state-wide, the Amendment failed in Fort Collins. Board Members were given two handouts -- 1) A memo showing election -3- 5 0 results for Amendments 1, 6 and 8; and 2) A quote from Douglas Bruce which appeared in an October issue of the Denver Post. Whether or not the Amendment applies to the Utility depends on what the intent of the people is, not what Bruce's intent is. However, there is some relationship if the people base their opinion on what Bruce has said. Bob mentioned that the recommendations included in the memo that was sent to Council are right on target -- 1) to closely monitor inevitable litigation; 2) to evaluate the actual potential service impacts on the electric customer; and 3) to take actions necessary to clarify Light & Power's exemption as an enterprise fund. Staff has been meeting with the City Attorney and the City Finance Director and they are currently of the opinion that Amendment 1 does not apply to the Utility. They also agree that action should be taken, as necessary, to clarify this exemption. 1993 WORK PLAN: Board reviewed the draft Work Plan. Board Members discussed work plan items and proposed the following changes: - Paragraph c) under 2. Tax Limitation Amendment, should be changed to read as follows: "Take actions necessary to clarify Light and Power's exemption as an "Enterprise Fund."" - The word "operating" should be deleted from the first bullet under 4. Electromagnetic Fields (EMF). "Support continued implementation of the "Guideline on Electromagnetic Fields" as developed by staff and the Electric Board." Board Member Fidrych made a Motion that the 1993 Work Plan be approved as revised. Board Member Walsh seconded the Motion. The Motion passed unanimously and the 1993 Work Plan was approved, as revised. OTHER BUSINESS: 1. TABOR AMENDMENT: There was some discussion that President Yates from CSU had found a way to get around this Amendment. No one had any definite information in this regard. 2. APPA REPORTS: Board Member Orendorff asked if Staff had a copy of the APPA newsletter on EMF. Bob Nastan mentioned that we do have these and copies are available for any Board Members who are interested in receiving these. Board Member Smart expressed an interest in receiving these (would like to get a copy of the last couple of months.) -4- 3. DEMAND SIDE MANAGEMENT: Board Member Rutstein asked if Staff had a copy of the report: Demand Side Management and Public Power: The Quiet Revolution. Staff advised that this is a report prepared by the American Public Power Association describing the.findings from a survey of Public Power DSM programs. Fort Collins Light & Power was included in the survey and Staff does have a copy of this report. Board Member Rutstein mentioned that a member from the Natural Resources Board called to see if the Utility had a copy of this. 7. CRITIQUE MEETING/NEXT MEETING'S AGENDA: EMF Statement Annual Report (Staff will prepare a draft) - EMF Video Tape - Open House - Educating Board (bringing everyone up to speed) - Trip to Rawhide - Work Plan Items ADJOURNMENT: The meeting adjourned at 6:45 p.m. Delynh/R. Coldiron, Board Secretary -5-