Loading...
HomeMy WebLinkAboutElectric Board - Minutes - 09/20/1993Minutes to be Approved by the Board at the October 20, 1993 Meeting. FORT COLLINS ELECTRIC BOARD MEETING MINUTES September 20, 1993, 5:00 - 6:30 P.M. BOARD MEMBERS PRESENT: John Allum, Jeff Eighmy, Mark Fidrych, Barbara Rutstein, Richard Smart, and Jim Welch. BOARD MEMBERS ABSENT: Larry Walsh STAFF PRESENT: Don Botteron, Allen Boushee, Lori Clements -Grote, Delynn Coldiron, John DeHaes, Ron King, Bob Kost, Bob Nastan, Rich Shannon, Dennis Sumner, Doug Swartz, Bill Switzer. OTHERS PRESENT: Alan Apt, John Bleem and Jim Garrick. BOARD LIAISONS: Council Liaison -- Alan Apt Staff Liaison -- Don Botteron 1. APPROVAL OF MINUTES: There were no additions or corrections to the Minutes from the August 18, 1993 meeting and the Minutes were approved as submitted. 2. IRP RECOMMENDATION: Board Member Eighmy contacted Chairperson Rutstein to express his disappointment that this item had been tabled for a while. He mentioned to her that he spoke to Council Member Apt and that Council Member Apt would not insist on including the portions of his suggested IRP standard language that prompted so much Board discussion. Chairperson Rutstein suggested some changes to the IRP standard which included rearranging the wording, and adding a clause on environmental externalities. None of the language from the previous draft was omitted, it was only rearranged. The IRP standard, with the suggested changes, would read: -1- Integrated Resource Planning for the City of Fort Collins shall be a planning and selection process for new energy resources that evaluates the full range of alternatives, including energy conservation and efficiency, cogeneration and district heating and cooling applications, renewable energy resources, new generating capacity, and power purchases, in order to provide adequate and reliable service to its electric customers at the lowest system cost. The process shall take into account necessary features for system operation, such as diversity, reliability, dispatchability, and other factors of risk; shall take into account the ability to verify energy savings achieved through energy conservation and efficiency and the projected durability of such savings measured over time; shall treat demand and supply resources on a consistent and integrated basis; and shall take into account environmental externalities associated with resource options. Board Member Allum suggested that the words "and benefits" be added to the first WHEREAS clause on the second page of the Resolution, after the word 'costs" in the second line, so the clause would read: WHEREAS, the Fort Collins City Council believes consideration of IRP options should include costs and benefits for environmental externalities which are not direct cost based expenses of providing electric service. Board Member Allum made a Motion that Draft V, Resolution 93-_ Adopting the Integrated Resource Planning Standard Pursuant to the Comprehensive National Energy Policy Act of 1992 be approved as amended. Board Member Eighmy seconded the Motion. The Motion carried unanimously. REPORT ON COUNCIL WORK SESSION ON BUDGET: Don Botteron reported that Council was concerned that there were insufficient resources allocated for an increased level of commitment to research and pilot demand side management programs in Light & Power's budget. Council asked that the Utility reconsider the amount budgeted. Don mentioned that the suggested allocated amount for demand side management issues is $500,0000 and explained the changes that are being proposed: A) Energy Services Budget for 1994 will be increased by $150,000 to cover additional staffing, evaluation and piloting of new programs, etc. B) The $150,000 will be levelized at $100,000 for years 1995 through 1998 to accommodate the increased staffing and the commitment to ongoing programs. These amounts are in addition to the amounts shown in the existing budget. -2- C) A possible program which may be implemented is a lease or loan payback type program that will, more than likely, be funded from the Utility's capital program. It is necessary to have funding appropriated in the capital program for capital -type programs, i.e., improving commercial/industrial lighting systems, etc. For 1994, the capital program will be increased by $350,000. (Increase in 1994 for the Energy Services budget of $150,000, and for the capital program of $350,000 = $500,000). D) The capital program will increase by $350,000 in 1994 and an additional $150,000 will be added to the capital program in 1995, for a total increase in the capital program of $500,000. As the money is loaned and repaid, it will be rolled over into a revolving fund and reloaned. E) Staging the funding as suggested, and using funds from the capital program will maintain the positive net income without any rate changes. Bottom line impacts on the budget are that Purchase Power Reserves will be reduced by approximately $750,000, leaving a balance of approximately $4,415,000 year end 1998; Energy Services Budget will increase by 30%, total Operations & Maintenance will increase by 1.7%; Capital Projects will decrease by .3%; for an overall Light & Power fund increase of 1.4%. Council Member Apt commented that Council wants to take an aggressive stand on energy conservation and demand side management issues and wants to see resources made available so that the City can move forward with demand side management and conservation programs which make sense. He mentioned that staff has done an excellent job in developing a proposal which reduces the City's financial risk and assures that rate impacts would be minimized. The risk is limited, the opportunity is there, so we should proceed cautiously with what makes sense in order to take advantage of these opportunities, and to start taking the necessary steps toward making enough funding available to assure that our efforts are meaningful. Board Members discussed this issue and had no objections to staff going forward with these changes to the budget. Based on the Board's endorsement of this concept, staff will prepare a revised memo from the Board to City Council recommending these changes. Staff intends on forwarding this memo to Council prior to the first reading on the budget. 4. DEMAND SIDE MANAGEMENT: A. Sub -Committee Report: Dennis thanked the sub -committee members for their time and support in helping with demand side management progress. He reviewed proposed changes to the acceptance criteria, together with other sub -committee findings and recommendations. Dennis also gave a brief presentation on proposed expanded Energy Services efforts and offered a staffing plan to achieve these efforts. Dennis noted that the Energy Services staff is already spread fairly thin and current staffing could not accomplish expanded Energy Services efforts unless other activities were reduced. He gave the example of Doug Swartz' recent efforts to do the formal DSM analysis. Not only was Doug required to -3- put in over 50 hours of overtime, but he was also unable to provide timely responses to numerous requests for service received from customers bver the last month. Board Members discussed the acceptance criteria, findings, recommendations, and the expanded Energy Services effort. There was some concern that the Utility not paralyze itself by over -analyzing potential programs prior to implementation. There was also some concern that staff leave some flexibility while testing each program to enable them to address other customers' needs as they arise. Board Members liked the idea that other City facilities be used as a pilot participant to help show customers that we "practice what we preach." It was also recommended that the Utility become involved with projects while still in the planning stages, if possible, and asked about the City's current building codes, etc. Board Members were interested in obtaining more information about current building codes, and thought the addition of a Utility staff person, or a "lighting expert", might be helpful during plans examination, etc. C. Conclusions: 1. Program Acceptance Criteria shall be: - Consider the benefits and impacts on retail customers, City of Fort Collins, and Platte River; - Yield net positive environmental impact; - Meet defined cost-effective criteria; - Accrue benefits to participants with small or no penalty to non -participants; - Produce measurable results; - Comply with Federal, State, and Local laws and regulations; and - Consider factors of local job creation and resource risk. The Acceptance Criteria will be used by staff to evaluate programs. Staff will make recommendations on programs based on whether or not the program met or did not meet the Acceptance Criteria. 2. Continued DSM Program Process Recommendations: In order of priority, focus should be on i) C/I lighting; ii) commercial (lost opportunities); iii) large C/I peak clipping; and iv) residential electric heat to gas. - Do analysis and research on these four programs. Analysis may include PC analysis, contacts with individual customers, follow up with other utilities, etc. -4- - Develop program concepts for the areas that have promise for reducing energy use and costs. - Pilot test the above programs. - Evaluate and adjust pilot programs. - Make go/no go decision on full scale program implementation based on pilot findings. The four programs listed are not intended to be the only programs the Utility looks at. They are a starting point in a desire to gain focus and make progress toward implementing pilot programs. Staff proposed that the above process be used as a loop with new ideas once the analysis of the first four programs is finished. 3. Additional Factors: - Financial assistance -- It was suggested that this be kept in mind as a possibility. - City as a pilot customer -- The City uses a lot of energy and has a lot of facilities and it was suggested that the City be used as a pilot program participant. 4. Expanded Energy Services. Effort: The expanded Energy Services efforts would generally be to (1) more aggressively pursue opportunities to assist residential and commercial customers to achieve energy savings, (2) research opportunities to help commercial and industrial customers make better front-end decisions related to facility energy use, and (3) continue the formal DSM evaluation process. Board Members unanimously supported the the amended acceptance criteria, the recommendations and the proposed expanded Energy Services efforts. They also gave their support for the additional staffing suggested. They encouraged staff to proceed as appropriate to add staffing and get on with continuing DSM evaluations and expanding services. 5. STAFF REPORTS: A. Election of Officers: Rita Knoll -Harris from the City Clerk's office spoke with staff and asked that the Board hold elections for new officers in August or September of each year. Because of the delay in getting new Board Members, elections have not yet been held for this year. Board will plan to hold elections for officers at next month's meeting. -5- 6. OTHER BUSINESS: A. Meeting Date: Board reconsidered moving meeting date to Monday nights. After discussion, Board decided to continue meeting on Wednesday nights. Meeting dates for the rest of 1993 are as follows: Wednesday, October 20th Wednesday, November 17th Wednesday, December 15th CRITIQUE MEETING/NEXT MEETING'S AGENDA: Agenda: - 1994 Work Plan - Energy Services Update - Building Standards, Residential and Commercial - Election of Officers - Informational Requests ADJOURNMENT: Meeting adjourned at 7:03 p.m. Delyn R. Coldiron, Board Secretary am