Loading...
HomeMy WebLinkAboutElectric Board - Minutes - 09/16/1998Council Liaison: Scott Mason Staff Liaison: Shannon Turner - 221-6700 (W) Chairperson: Len Loomans Phone: 224-0385 (W/H) Vice Chair: Jim Welch Phone: 498-8947 (W) 498-8947 (H) A regular meeting of the Fort Collins Electric Board was held at 7 p.m. on Wednesday, September 16, 1998 in the Utilities Training Room at 700 Wood Street, Fort Collins, Colorado. E: SYM01407011MI ew0 Bill Brayden, Jeff Eighmy, Mark Fidrych, Len Loomans, Barbara Rutstein, Richard Smart and Jim Welch STAFF PRESENT: Bob Kost, Mike Smith, Dennis Sumner, Shannon Turner and Wendy Williams AGENDA: 1. APPROVAL OF MINUTES: Changes to the August 19, 1998 minutes were proposed. Chairperson Loomans made a motion to approve the minutes as amended. Board Member Rutstein seconded the motion. The motion passed unanimously, and the minutes from the August 19, 1998 meeting were approved. 2. 1999 ELECTRIC BOARD WORK PLAN: Board Members requested the following additional items be put on the 1999 Electric Board Work Plan. • Carefully monitor the wind program Assess small hydro power opportunities • Investigate fuel cell opportunities • Overview and respond to City Council on the development of the Utilities' strategic plan 0 Remain informed and updated on the telecommunications project • Examine legislation issues and assess how it could affect us • Plan how we will react to changes in deregulation law • Review preliminary findings of Study Bill draft report (due July 1, 1999) and final report of study bill (due November 1, 1999). Staff mentioned Board Members can access a web site which provides a copy of the study bill, information on panel members, notices of meetings and other pertinent information at www.dora.state.co.us/puc/euir/euir.litm • Review the proposed 2000 — 2001 Electric Utility Bi-annual Budget Board members requested staff draft a work plan and an annual report to review at the October Meeting. 3. OTHER BUSINESS: Mike Smith presented Board Members with an overview of the interview process for consultants. The selection committee will interview three consultants, R.W. Beck, Warner Group, and Black and Veach from 8 a.m. to 12 p.m. September 25. Each consultant will have 20 - 25 minutes to make a presentation. The presentation will be followed by a question and answer period. After each presentation the consultant will be ranked by the committee. Participants on the committee include Paul Klopper — Water Board Member, Richard Smart — Electric Board Member, and four Utilities staff members Mike Smith, Wendy Williams, Opal Dick and Dennis Sumner. Electric Board members are welcome as observers at the interviews. The contract with the consultant will be at a maximum of $150,000 - $200,000. The RFP included a request for the consultant to give us general cost estimates. Once the selection is made we will develop a specific scope of work. We are looking for a strategic plan that includes mechanisms to monitor and review strategic plan periodically to assure the Utility is properly implementing the plan. Strategic plans generally have dual time frames, including a five year plan and a 20 year plan. Board Member Smart requested feedback from the Board regarding questions they would like to have asked during the interviewing of the consultants. The Board expressed an interest in asking the following questions: • How many utilities have you evaluated? • What have been some of the results of other utilities you have evaluated? • Do you ever recommend merged utilities be separated? • If you were to do this study under the current circumstances and you believed the utilities would be best served separated rather than together, are you willing to recommend it? -2- 0 • • What does a utility similar to Fort Collins have to do to be prepared for deregulation? • Is it important to have an independent electric utility board, and under what circumstances have you recommended a separate board? • What is your evaluation of the situation, and what is the ideal in a perfect world? • How would you recommend we deal with what we currently have? The Board would like to see structural recommendations included in the strategic plan. Board Members expect the consultant to give the Utility a realistic customized response. Staff explained the Utilities hired the consultant for their individual opinion. The Utilities are long term and want the consultant to look at the long term vision. There was some discussion around industry trends to combine utilities. Staff related there is not a trend in the industry to combine or separate utilities. There are some larger utilities who have created separate governance boards. Board Members felt governance is an issue only when State deregulation legislation is changed. Board Members requested clarification regarding how the rate factor for the wind program was derived. Staff explained when you purchase electricity you pay for commodity, transmission and distribution costs. The Utilities' cost from PRPA for commodity and transmission is 3 1/2 cents. The commodity and transmission cost for wind is 5 1h cents. We expected these numbers could change as we get more information from the project. There was some discussion of what is happening with the telecommunications plan. Staff related ICG is interested in utilizing the City/PRPA fiber backbone for the purpose of providing telecom services to city residents. For billing purposes PRPA would bill ICG for leasing the fibers, and ICG would bill the customer. The revenue PRPA would receive from the Fort Collins system would be given to Fort Collins. The City's investment is labor, materials and use of the right-of- way. Staff gave a brief update on the SurgeSafe!® Program. The Utilities have had 800 responses on the SurgeSafe!® program. Approximately 32 customers have signed up for SurgeSafe! products. The staff was in the process of following up with these customers. The Utilities has also received requests for a smaller unit, and staff is investigating the possibility of purchasing smaller units to meet these customer needs. The Utilities retain ownership of the equipment, and the customer pays a monthly fee to use the equipment. In addition to use of the equipment the customer is also purchasing insurance. The next Electric Board meeting will be from 7 — 9 p.m. on October 21. FUTURE AGENDA ITEMS: Telecommunications update -3- Gas Aggregation Study Update on Electro Magnetic Fields Have Thaine Michie provide an update to the activities of the deregulation study committee Have Doug Swartz provide an update on demand side management Have consultant look at small hydro opportunities on the water system and report findings to Board Fuel Cells Methane Gas E-Prime presentation on solar electric systems Adjourned: 9 p.m. Shannon L. Turner, Board Liaison ME