HomeMy WebLinkAboutElectric Board - Minutes - 12/15/1993Minutes to be Approved by the Board at the January 19, 1994 Meeting.
FORT COLLINS ELECTRIC BOARD
MEETING MINUTES
December 15, 1993, 5:00 - 6:30 P.M.
BOARD MEMBERS PRESENT:
John Allum, Jeff Eighmy, Mark Fidrych, Richard Smart, and Jim Welch.
BOARD MEMBERS ABSENT:
Barbara Rutstein and Larry Walsh.
STAFF PRESENT:
Don Botteron, Delynn Coldiron, John DeHaes, Bob Kost, Bob Nastan, and Dennis Sumner.
OTHERS PRESENT:
None.
BOARD LIAISONS:
Council Liaison -- Alan Apt
Staff Liaison -- Don Botteron
1. APPROVAL OF MINUTES:
A Motion was made by Board Member Eighmy to approve the Minutes. Board Member
Allum seconded the Motion. The Motion passed unanimously and the Minutes from the
November 17, 1993 meeting were approved as submitted.
2. UPDATE ON SENIOR CENTER:
Dennis mentioned that thanks to a previous suggestion from Board Member Fidrych, and
follow-up with Peggy Plate at Western, arrangements have been made with a consultant
from ERG to assist us in looking at the daylighting issues at the Senior Center. This
assistance will be funded by Western. Dennis pointed out that Western deserves credit
for their flexibility and willingness to help us out, and specifically wanted to thank Peggy
Plate for helping us get things accomplished in such a timely manner.
Staff intends on providing the results of the analysis at next month's meeting.
Bob Nastan initiated contact with the Facilities Department in response to the Board's
discussion on including language on energy efficiency in building requirements to assure
that these issues get addressed during early planning stages of a project. He mentioned
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that the City has a manual called Capital Projects and Procedures which is a guideline
used by City staff project managers when doing capital projects. Bob asked Facilities'
staff if a section on energy efficiency and analysis could be added to the manual. Their
response was a very definite yes. They plan to update the manual during the first quarter
of 1994 and we will be given an opportunity to include guidelines for energy efficiency,
payback, etc., at that time.
Don mentioned that these types of capital improvements are ideal for a pilot ZILCH -type
loan approach for commercial/industrial customers. We would have some control over
recovering funds, etc.
Bob will prepare draft guidelines for the Board's review at next month's meeting. Board
anticipates having something finalized by March or April, 1994.
3. DSM PLANNING STATUS:
Dennis gave a brief recap of the information presented during last month's meeting. He
continued with the DSM programs that had not yet been addressed.
3) Large Commercial/Industrial Peak Clipping:
It is anticipated that analysis and research for this program can begin during the
third or fourth quarter of 1994. A program concept will be developed "piggy
backing" on our interruptible rates and HOT SHOT programs. Once a program
concept is developed, pilot testing will be implemented. Evaluation will occur
after customers have had a chance to go through a few cycles. Once this is done,
program adjustments will be made. The program could be implemented during
the fourth quarter of 1995.
4) Residential Electric Heat to Gas Conversion:
Analysis and research for this program is anticipated to begin during the fourth
quarter of 1994. A program concept will be developed. Pilot testing will be
implemented. Pilot testing, evaluation and pilot adjustments are projected to take
nine months. Projected implementation is the first part of 1996.
5) C/I Funding Assistance:
Dennis mentioned that he was unclear what the priority for this program was but
thought he was hearing that the priority is high. With this in mind, analysis and
research is scheduled to begin before year end 1993. A program concept can be
developed during the first quarter of 1994. Pilot testing, evaluation and making
necessary program adjustments will follow. Plan is to implement a program as
quickly as possible; projected to be in the fourth quarter of 1994.
Dennis asked for questions, comments and clarification on the C/I funding assistance
from the Board.
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There was some discussion on the electric to gas conversions and the large
commercial/industrial peak clipping programs. Next, Board discussion focused on
funding. There was some concern about how we could take advantage of the funding
that is currently available when none of the programs are anticipated to begin pilot testing
until the third or fourth quarter of 1994. There was some assumption that a loan
program could be a short-term way of funding projects in the interim while pilot testing
of other programs has yet to be established. There is concern that the funding will not
be used efficiently and effectively if the proper research and guidelines have not been
established prior to making a loan. Using the Senior Center as an example, a question
was posed that if a project like this comes up and it meets the 10 year payback, etc., is
this something that could be funded in the interim while other programs are being
established?
Don mentioned that staff has labored under the impression that this money was set aside
to provide funding for all of these programs. There was some confusion in staffs' mind
when the Board started talking about the funding as a separate ZILCH -type program.
Staff would like clarification from the Board on how this money is intended to be used.
The funding can be used as it is available and as it is needed to fund these programs, as
well as to fund opportunities like the Senior Center. The question is whether or not the
ZILCH -type loan program is a program in itself or a methodology to support the other
programs.
Staff explained the differences of having a Commercial/Industrial ZILCH loan program
and using the available funding on a loan -type basis to support the other programs to try
and clarify the confusion. Dennis mentioned that staff can put together a
commercial/industrial ZILCH program, similar to the residential ZILCH program which
currently exists, if this is the direction the Board suggests. A program can be developed
that will provide attractive loans to commercial/industrial customers for doing approved
energy projects. At the time other programs are implemented, this program will be
available and could potentially "piggy back" on these new programs. Dennis mentioned
that pilot testing (Senior Center funding) for this type of program could occur during the
first quarter of 1994.
There was some discussion on the amount of participation the Utility could expect from
commercial/industrial customers if a ZILCH program was implemented as a first step.
Dennis mentioned that the amount of interest was dependent on the parameters that were
developed. If the program was developed and had reasonable paybacks, avoided front-
end costs and had technology the customer was comfortable with, he felt there was a
potential for a fair amount of activity.
Don discussed potential problems with using Utility funding for zero interest loans and
mentioned that legal assistance would be needed to help clarify Charter definitions, etc.
There was some discussion that although using Utility funds for zero interest loans may
be a potential problem, this problem was not thought to be insurmountable. Perhaps
improved quality of life issues could be included in the payback as a benefit to all
ratepayers to make up for the zero interest earned on Utility funds.
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Board Member Allum offered a statement on where he thought the Board was headed:
"As expeditiously as possible, develop well thought out and tested programs to encourage
aggressive demand side management." As part of this, Board Member Allum suggested
that the priorities be set on the demand side programs that the Board thinks should be
emphasized, thinking through them, testing them, and assuring they are good programs.
Parallel to this would be determining the financing options, ground rules, etc.
It was suggested that perhaps commercial/industrial customers could be responsible for
the analysis portion of their project to lessen this burden on the Utility and to help speed
up the process. There was some feeling that while staff proceeds with evaluation for the
commercial/industrial lighting program, staff should move forward with some type of
funding program which would allow the Utility to accept requests from commercial
enterprises to partially or fully fund the energy efficient portion of projects they have
proved have a desirable payback.
After discussion, Board Members concurred that it made sense to pursue funding
assistance issues and the commercial/industrial lighting program as parallel first steps.
Board Members agreed that funding is a key element to all of the programs and thought
that the guidelines developed could make it possible for the funding program to become
an umbrella program for all or most of the other programs being developed. This would
also give the Utility the ability to address projects like the Senior Center. Don will
provide Board Members with answers to the legal questions and some draft guidelines
by the February meeting.
DSM Program Priorities:
1 - Commercial/Industrial Lighting
1 -- Funding Assistance Program
2 -- Commercial/Industrial Lost Opportunities
3 - Large Commercial/Industrial Peak Clipping
4 -- Residential Electric Heat to Gas Conversion
The Board supported the draft timetable for program development as proposed.
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Don mentioned that the deadline for filing the Year End Report is January 30. Board
Members had no changes to the draft Year End Report. The Year End Report will be
finalized for Board action at the January meeting.
STAFF REPORTS:
1. Update on Platte River IRP Schedule:
Dennis mentioned that the schedule to have a draft IRP in January has changed. A draft
Resource Integration Study (first 95 % of the IRP) will be available in February. This
document will contain all of the IRP except for the conclusion. The IRP is scheduled
to be finalized in June.
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Board Members were interested in having Jay Hopper come to the February meeting and
give a 30-45 minute presentation. Dennis will make these arrangements. Board
Members will delay discussion on this item until the March meeting.
2. Energy Services Hiring:
Dennis mentioned that interviews for the Energy Services Advisor position finished just
prior to tonight's Board meeting. Interviews for the Energy Services Engineer I will be
finished on Wednesday. Current plan is to make offers during the course of the next
week and have new staff on board by the middle of January.
6. INFORMATIONAL REQUESTS:
Board Member Welch was interested in receiving information on the Arlington Wind
Farm Project and the Biomass Construction Project. He is particularly interested in their
levelized energy costs. Board Member Allum mentioned that this information will be
included in the IRP report scheduled for February/March.
7. OTHER BUSINESS:
L Meeting Time:
Chairperson Smart asked that the meeting time be changed from 5:00 p.m. - 6:30 p.m.
to 5:00 p.m. - 7:30 p.m. to more truly reflect actual meeting time.
2. PUC Workshop on Alternately Fueled Vehicles:
Board Member Allum attended this workshop. He mentioned that there was a lot of
emphasis on natural gas and liquid natural gas, but there was some discussion on electric
vehicles. By the year 2000, 20% of municipal fleets will be required to be alternately
fueled. One of the concepts thrown out was that a Utility could be a battery recharging
station for the electric vehicles. This was suggested as a way to handle the hazardous
materials associated with battery disposal.
3. Air Quality Task Force:
Board Member Welch mentioned that the Air Quality Task Force did not talk about
electric vehicles in their plan. He wondered if it might be the Board's role to suggest
that they also look at using electric vehicles.
Board Member Allum mentioned that he has spoken with Bob Emmert, the resident
expert at Platte River on electric vehicles. There is an LA Initiative in the works that
requires that 2% of vehicles have to be 0% emissions by the turn of the century.
Manufacturers are contesting this. The determinations made over the next couple of
years will determine the necessity of electric vehicles.
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CRITIQUE MEETING/NEXT MEETING'S AGENDA:
- Update on Senior Center
- Draft Guidelines for the Capital Projects and Procedures Manual
- 1993 Year End Report
- C&I Lighting Progress Report
- Interaction with other Boards & Commissions
ADJOURNMENT:
Meeting adjourned at 7:32 p.m.
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