HomeMy WebLinkAboutElectric Board - Minutes - 09/17/1997A regular meeting of the Fort Collins Electric Board was held on Wednesday, September 17,
1997, in the Light and Power Training Room, at 700 Wood Street, Ft. Collins.
BOARD MEMBERS PRESENT:
Bill Brayden, Jeff Eighmy, Len Loomans, Barbara Rutstein, Richard Smart, and Jim Welch.
BOARD MEMBERS ABSENT:
Mark Fidrych
STAFF PRESENT:
Ellen Alward, Delynn Coldiron, Eric Dahlgren, Suzanne Jarboe -Simpson, Bob Kost, Tom Rock,
Rich Shannon, Gwyn Strand, Dennis Sumner and Steve VanderMeer.
OTHERS PRESENT:
John Bleem
AGENDA:
APPROVE MINUTES
Board Member Rutstein made a Motion to approve the Minutes as submitted. Board Member
Loomans seconded the Motion. The Motion passed unanimously, and the Minutes from the
August 20, 1997 Electric Board meeting were approved.
2. LIGHT AND POWER ENERGY SERVICES UPDATE:
Steve VanderMeer provided an update on these services. He mentioned that Energy
Services' staff have completed a second cycle of revisions to the Business Plan. The three
main areas of emphasis of the Business Plan include: 1) reaching new customers; 2)
reaching more customers, and 3) developing stronger relationships with potential allies.
Steve reviewed the customer groups that Energy Services' staff will conduct greater
outreach with in upcoming months. He mentioned that the new GS-50 rate has provided
an opportunity for staff to have much more personal contact with mid -size commercial
customers. Many of these customers are responding very favorably to the higher level of
attention they are receiving, together with the load data that is available to them through
the new GS-50 meters.
Steve highlighted some of the lighting demonstration projects that Light and Power is
involved in including: the new Harmony Library, the Municipal Courthouse, the new City
Administration building, Bullfrog Liquor, and outdoor lighting projects. Energy Services'
staff have not spent a lot of time with outdoor lighting issues in the past. However, they
have been gathering information on visual trespass and higher efficiency outdoor lighting
and have been working with the City's Parks and Recreation department on lighting for
parks, softball fields, etc.
Energy Services' staff has been working to develop ways to reach a greater number of
customers in existing target audiences. In the past, the Utility has enjoyed a very good
relationship with a relatively small number of residential customers who took advantage of
some of our programs. These programs, however, were highly labor intensive, and
reached only a small number of customers. Steve reviewed a number of customer services
that the Utility will be offering that will allow the Utility to reach a very large number of
residential customers. Some of these included: self guided energy audits, provision of
educational resources, surge suppression services, and wind power.
Steve highlighted the work that is being done by Energy Services' staff to develop
stronger relationships with potential allies.
Energy Services' staff will continue to re-evaluate services and attempt to develop more
customer driven products and services. Market research tools will be utilized to assure
that new product and services offerings are in line with customer needs. Staff will
determine how best to deliver these products and services based on assessment of the
markets and data that is obtained on customer needs.
There was discussion on the information that was presented. Staff responded to Board
Members' questions. Board Members will be provided with updated information on
Energy Services' efforts as it becomes available.
PLATTE RIVER ENERGY SERVICES UPDATE:
Dennis provided Board Members with an update on Platte River's energy services
activities with key customers. He reviewed the general objectives of Platte River's energy
services; the targeted markets; and the portfolio of service offerings that have been
developed for Platte River's four member cities, and for large customers. Dennis also
shared Platte River's concept on custom tailored services, and highlighted many of the Ft.
Collins' key account projects that staff are current working on.
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Information regarding Platte River's efforts on natural gas services; on green resources
and pricing; and on value added strategies for aggregating customer loads was also shared
with the Board.
There was discussion on the information that was presented, and staff responded to Board
Member questions. Dennis will continue to keep Board Members abreast of further
developments and activities
Rich added that APPA is developing a brand name of services called Home Town
Connections. They have a number of services they are looking at. One of the things they
are involved in is contracting with companies that provide energy services. Because of
our relationship with APPA, this will give us additional resources and allow us to offer
customers supplemental energy services through a contract with us. PRPA staff will be
offering these additional services to a customer for the first time in the next day or so.
4. 1998-1999 BUDGET
Ellen briefly discussed the information that was provided in Board Member packets. In
response to a question, she mentioned that rates are still under what they were in 1983 due
to two rate decreases that were passed through from Platte River Power. Although there
was also one rate increase since 1983, the increase was still less than the two decreases.
In response to another question, Ellen mentioned that the significant decrease in the
System Additions budget is due to a projected decline in growth rates, together with a
decline in projected capital expenditures for large projects. The 1997 budget included $3
million dollars for a new CIS system and the 1998 budget included $3 million dollars for
the Harmony substation. Both of these projects are infrequent capital expenditures and
are not included in future projections.
A Motion was made by Board Member Smart to endorse the 1998-1998 Light and Power
Budget. Board Member Rutstein seconded the Motion. The Motion passed unanimously.
Next, Board Members discussed the financial ratio information that had been provided in
packets. Ellen responded to questions. Board Members were appreciative of the
information and were pleased with the financial position of the Utility.
5. STAFF REPORTS:
1. Telecommunications Update:
Rich mentioned that there is dilemma that may unfold due to the City's current purchasing
procedures as staff gets to the point where telecom vendors and/or strategic partners need
to be selected. Current procedures are designed to buy system components, etc., but do
not recognize the need for developing strategic business relationships with vendors.
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There was discussion on how best to address this issue. There was also some discussion
on the financial commitment of the Utility for this project, on the flexibility of the City's
RFP process, and on the difficulties that have been experienced by another municipal
utility due to being tied to an RFP process.
There was some discussion on staffs options. There was also some discussion on the
proposed structure of this project, and the need for having a process that would enable
Utility staff to meet with project vendors/strategic partners to jointly design a system that
gets the best use out of the equipment and can be operated in such a way that results in the
most benefit possible to the customer.
Most Board Members were interested in being involved in the vendor/strategic partner
selection process. As staff determines which vendors/strategic partners best fit the needs
of the Utility, it was requested that staff share this information with the Board and share
the reasoning for the selection.
Staff will forward recommendations on vendor/strategic partner selections to the Board
prior to a formal recommendation to City Council.
6. OTHER BUSINESS:
A. City's Budget:
Rich mentioned that the Utility's budget presentation to City Council was scheduled for
Tuesday, September 23rd. Board Members did not need to be present but were
encouraged to watch it on Channel 27 if interested.
B. Wind Project:
Staff has been hearing concerns from NEA that they cannot get the steel needed for the
poles by the time they had anticipated. It is not clear how long the delay will be. Staff
will keep Board Members informed of the progress on this project.
C. ENRON Customer Choice Plan:
Rich provided Board Members with a copy of the Customer Choice Plan from ENRON.
He highlighted some of the information that was included in the Plan. There was brief
discussion on this issue.
7. OCTOBER AGENDA ITEMS:
Telecommunications Update
Wind Power Update
Community Outreach
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FUTURE AGENDA:
PRPA IRP Plan
PRPA Distributed Generation
League of Women Voters Cross Current Program
Adjourned: 7:35 p.m.
DelyjM Coldiron, Board Liaison
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