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HomeMy WebLinkAboutElectric Board - Minutes - 02/16/1994Minutes to be Approved by the Board at the April 20, 1994 Meeting. FORT COLLINS ELECTRIC BOARD MEETING MINUTES February 16, 1994, 5:00 - 7:30 P.M. BOARD MEMBERS PRESENT: John Allum, Jeff Eighmy, Mark Fidrych, Barbara Rutstein, Richard Smart, Larry Walsh and Jim Welch. BOARD MEMBERS ABSENT: None STAFF PRESENT: Ellen Alward, Don Botteron, Allen Boushee, Delynn Coldiron, John DeHaes, Bob Kost, Jon McHugh, Bob Nastan, Tim Sagen, Rich Shannon, Dennis Sumner and Doug Swartz. OTHERS PRESENT: John Bleem, Duane Bruneggle and John Fooks. BOARD LIAISONS: Council Liaison -- Alan Apt Staff Liaison -- Don Botteron 1. APPROVAL OF MINUTES: A Motion was made by Board Member Allum to approve the Minutes. Board Member Eighmy seconded the Motion. The Motion passed unanimously and the Minutes from the January 19, 1994 meeting were approved as submitted. 2. PRPA PRESENTATION ON DRAFT IRP: Dennis introduced John Bleem, Duane Bruneggle and John Fooks from Platte River Power Authority. John Bleem handed out the DRAFT Resource Integration Study 1994 and an introduction to the Study. He emphasized that this document is a draft; that the numbers in the Study are composites and averages and should not be viewed as absolutes; and that as more information is gained, the Study will be revised. He also mentioned that the Platte River Board has reviewed this information. -1- Duane Bruneggle gave an overview of the impact of potential changes in power available from Western. As a result of changes being considered in the operation of Glen Canyon Dam, PRPA could lose between 42 and 74 MW of peaking capacity. He pointed out that all supply side options for addressing this reduction in peak capacity would result in rate increases in the 1995 to 1996 time frame. At this time, the most expensive alternative considered would be purchasing replacement peaking power from Western. The least expensive option identified is for Platte River to build a peaking unit. He pointed out how different types of supply side resources generally serve different purposes and have different economic considerations. Base load units tend to be relatively high capital costs with relatively low energy costs. Rawhide is an example of a base load unit. Pealing units tend to operate for short periods of time -- operating only to carry the electric load through short periods of maximum demand. These units tend to have lower capital costs and higher per unit operating costs. A gas turbine is an example of a peaking unit. He explained that operating Rawhide to track fluctuations in system loading would not be the optimum economic alternative. John Fooks provided information on environmental considerations. Losing our hydro electric power resource will create a regional impact on emissions along the Front Range because all resource options, except for water, give off emissions. He also provided emission comparisons for various resources. The best choices for emission control are conservation through supply and demand side management programs and limiting growth. John Bleem explained some of the issues related to demand side management. He mentioned that Platte River is supportive of and participates in demand side management, but the responsibility for these programs lies with the City utilities. Platte River can have some impact on the peak through the wholesale rate. This rate is structured with the strongest signal it can have to encourage reduction of peak demand. John reviewed other demand side activities that Platte River is involved in, in addition to the strong rate signal. The programs that are currently in place will have no affect on the outcome of the WAPA situation, e.g., peak reduction from Hot shot is already in place. John pointed out that various studies have been done to estimate the potential savings of DSM programs the four cities might implement based on current technologies and costs. This projected potential ranges from 13 MW to 26 MW and falls short of the potential 42-74 MW reduction from Western. This suggests a supply side resource will be needed. John reviewed current alternatives, their relative rate impact, environmental impact, whether or not they meet the needs of Platte River and whether or not they should be further pursued. The current alternatives discussed were: 1) Demand Side Management (Peak Clipping) 2) Interruptible Rates 3) Pass through cost (PTC) for make-up peak power purchased through Western. 4) Build Peaker 5) Purchase Peaking Resource 6) Reduce Public Service Company Sale -2- Other current Platte River activities were also reviewed: 1) To continue local research and development. 2) To continue to promote renewable energy. Also discussed was a draft plan for public participation. Board Members agreed to have a lengthy discussion on this issue at next month's Board meeting. John Bleem, Duane Bruneggle and John Fooks will attend the meeting to answer questions, etc. Board Members should contact Dennis if they have questions on the Resource Integration Study prior to next month's meeting. 3. COMMERCIAL LOAN INCENTIVE PROGRAM: Don Botteron shared information on the proposed Commercial Loan Incentive Program (CLIP) concept. He presented the purpose of CLIP, provided background information, and reviewed program parameters/guidelines and loan eligibility requirements. The CLIP program would provide zero interest loans for improvements that would decrease electrical consumption or increase electrical use efficiency (load factor). Don next presented information on the proposed Commercial Leveraged Investment Plan or CLIP II concept. This program would follow program parameters modified from the CLIP program. The CLIP II program would utilize the interest earned on a portion of Light and Power's reserves to promote energy efficient improvements by "buying down" the interest rates on commercially available financing. Don reviewed the advantages and disadvantages of CLIP II over CLIP. Another program concept, the proposed Commercial Leveraged Incentive Plan or CLIP II '/2 was also presented. This program would follow qualifiers, limitations and terms modified from the CLIP II program. This program would utilize the interest earned on a portion of Light and Power's reserves to promote energy efficient improvements by rebating an amount equal to the interest rate buy down proposed in CLIP II when a commercial/industrial customer uses their own capital to purchase the qualified improvement. Board briefly discussed this issue. It was suggested on CLIP II 1/2 that instead of buying down the entire amount up front, a monthly credit should be included on the customer's bill, as the credit is earned, until the buy down amount is paid. This helps assure that the customer doesn't go out of business prior to the time that the Utility realizes the full benefit from its investment. Board Members would like to think about the information presented and address this issue again next month. They generally support the program concepts and agreed that a Council work session would be appropriate. Don will follow up with banking officials, City Finance staff and the City Attorney's office prior to next month's meeting. With tentative approval from the Board, Don will further develop these program concepts and have this available for the Board's review at the March meeting. -3- 4. BOARD RELATIONS Due to time constraints, Board Members decided to table this issue. It was suggested that the Building Review Board be used as a model and that this item should be readdressed once work is completed with them. There was some concern that this item should not be tabled indefinitely since the purpose of this agenda item was to determine if there were other boards the Electric Board might be interested in establishing a relationship with. It was decided that this item will be placed on a future agenda. 5. STAFF REPORTS: 1. Update on Building Code Revisions: Bob Nastan reported that at Council's February 15th meeting, Council pulled the part of the building code related to energy issues. Staff is moving forward on this now and will come back to the Board with presentations. 2. Update on Capital Projects Procedures Manual: Facilities staff was receptive to our suggestions. They will be moving forward on this and, in conjunction with energy issues, will also be addressing issues such as xeriscaping. 6. INFORMATIONAL REQUESTS: None. OTHER BUSINESS: 1. Photovoltaics: Board Member Fidrych reported that Western has an expert on photovoltaics on contract who would be willing to give a presentation on this issue. He handed out a booklet entitled Photovoltaics for Municipal Planners. Board Member Allum mentioned that Platte River has a photovoltaics yard and thought that it might make sense to have the presentation at Platte River and then go out and see what a photovoltaics yard looks like. Board Members were interested in doing this and would like to schedule this for the April meeting. Board Members will confirm date, time, etc., at the March meeting. 2. Smart House: Dennis provided an update on the Smart House. The framing and outside shell are done. It is anticipated that this home will be included in a home tour program being considered for later this year. He advised Electric Board members to let him know if they would like a special tour. -4- CRITIQUE MEETING/NEXT MEETING'S AGENDA: - PRPA Draft IRP Discussion - Commercial Loan Incentive Program Discussion ADJOURNMENT: Meeting adjourned at 7:36 p.m. Delyniff R. Coldiron, Board Secretary -5-