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HomeMy WebLinkAboutElectric Board - Minutes - 07/15/1992C� Minutes to be approved by the Board at the August 19, 1992 meeting. FORT COLLINS ELECTRIC BOARD MEETING MINUTES July 15, 1992, 5:00 - 6:30 P.M. BOARD MEMBERS PRESENT: John Allum, Dane Brandt, Mark Fidrych, William Orendorff, Richard Smart and Larry Walsh. BOARD MEMBERS ABSENT: Barbara Rutstein. STAFF PRESENT: Don Botteron, Allen Boushee, Delynn Coldiron, John DeHaes, Ron King, Bob Kost, Bob Nastan, Rich Shannon and Dennis Sumner. BOARD LIAISONS: Council Liaison -- Gerry Horak Staff Liaison -- Don Botteron CALL TO ORDER: Dane Brandt called the meeting to order. AGENDA: 1) Approval of Minutes 2) Energy Policy 3) Council Work Session Report 4) Other Business 5) Critique Meeting/Next Meeting's Agenda DISCUSSION TOPICS: 1. APPROVAL OF MINUTES: A Motion was made by Board Member Orendorff to approve the Minutes. Board Member Smart seconded the Motion. The Motion carried unanimously and the Minutes from the June 17, 1992 meeting were approved. 2. ENERGY POLICY: Rich Shannon led the discussion on the Energy Policy and mentioned that Council would like to get some kind of definitive statement from the Board on whether or not the Board likes/dislikes the policy or would suggest any changes to the policy. The policy generally states that the City ought to be pointed in the energy efficiency direction, but not necessarily at the forefront of every available energy efficiency technology. Regarding paragraph a) on Page 2 (the City as a user of energy), Rich mentioned that the City has a good track record as an organization of looking at the City's buildings and vehicles. Several City vehicles are propane operated. The City has experimented with electric vehicles and will probably do this again. The City also makes energy efficiency adaptations/modifications to buildings under renovation. Regarding paragraph b) on Page 2 (the City as a supplier of electrical energy), the City has sponsored numerous energy programs, and the results for at least half of these programs can be quantified. The most controversial aspect of the Energy Policy is paragraph c) on Page 2 (the City as a community leader). An example of this is the solar orientation. City Council has debated the extent to which the City should be involved in these types of things, and what the requirements should be. The group that drafted the Energy Policy does not feel that they are in a position to be able to state specific objectives and targets. They feel it is better that individual Board and Commissions and Departments do this from year to year and assess whether or not the City is making adequate progress. The point was made that this is an energy policy for the City, not just an electric policy for the Utility. Rich Shannon added that the City has had energy policies in the past -- almost 10 years ago a study was done on how much energy was consumed through gasoline, primarily in transportation; how much through natural gas and heating; and how much through electricity. This energy policy is intended to address electricity issues, as well as petroleum and natural gas issues. Bob Kost mentioned that there is ambiguity because of the pending WAPA requirements to be imposed on the Utility and that these requirements will influence the process used by the Utility to address energy efficiency issues. Board Members commented on paragraph a) and wanted to know if this included some type of cost-effective measurement and if proven technology was implied. They liked the wording in paragraph b): "result in the most efficient and economical use of the electric supply system." and wondered why there was no language to this effect in paragraph a). A Board Member had concern with "will utilize the latest available, proven technolo- gies..." Some proven technologies are cost prohibitive and there is nothing in the policy that requires that cost-effectiveness be considered. A Board Member mentioned that there is some comfort in the language, "in developing strategies to provide efficient..." It doesn't say we have to do it. It was suggested, and Board Members generally agreed, that "cost- effective" be added after developing: "proven technologies in developing COST EFFECTIVE strategies..." -2- A Board Member commented on paragraph c) and had some concern with the language "reduce the demand and usage of fossil fuels..." He thought it might be more suitable to have it read "EVALUATE the demand and usage of..." Board Members discussed this issue further and agreed that the goal should not be to automatically reduce the use of fossil fuels, but to evaluate its reduction. Board Member Allum offered the following Motion for approval by the Board: The Electric Board appreciates Council's consideration of an Energy Policy. We feel that such a policy is helpful to the Board and that the Board can work with staff in developing annual goals consistent with the policy. The Electric Board has two suggestions: A. Under Section 1 a): In developing strategies, cost-effectiveness should be considered. Under Section 1 c): Wording should be changed to seriously evaluate reduction in fossil fuel usage, but not necessarily mandate the reduction in fossil fuel usage. Board Member Fidrych seconded the motion. The motion carried unanimously. 3. COUNCIL REPORT: Don Botteron reported to the Board on the June 23rd Council work session. After a brief presentation, staff responded to a number of Council questions and suggestions related to the request that we made of them to appropriate additional funds for the 1992 purchase power payment, and passing a resolution allowing the Utility to have negative net income for the year 1992. Don handed out a copy of the electronic message that was sent to Council Members containing additional information on electric rate history, the inflationary increase that is being proposed, and the impact of the 7.4% increase on our competitive position with surrounding utilities. At the Council session of July 7, Council Member Horak pulled the item from the consent calendar because he was concerned that it was not appropriate for Council to be setting policies requiring positive net income, and then turn around and issue an exemption to their own policy. The issue was tabled and it was requested that this item be brought back to the July 21st Council meeting. A new resolution was prepared which changed the emphasis from asking for an exemption from the policy requiring positive net income, to requesting utilization of purchase power reserves which Council has set aside for that purpose. Board Members were given the opportunity to review the Resolution and Ordinance which are being submitted at the July 21st Council meeting. -3- Board Chairperson Rutstein attended the June 23rd work session and represented the Board admirably. One of the items that came out in Rich's closing statements was a declaration that the reason we need more time prior to implementing the rate increase was for public outreach. Council Member Azari asked that Board Members consider participating in any outreach programs that may be developed as far as the rates are concerned. In response to a general question regarding the Board's activities, Board Chairperson Rutstein shared that she had just attended the CAMU conference and watched a video on Electromagnetic Fields (EMF). She then shared with Council how positive this video was and that she thought we should consider showing it on local television. Staff did some checking on showing the video on Channel 27. This video can be shown on Channel 27 pretty much whenever and for any number of times requested. Board Members took approximately 15 minutes to view the EMF video and then discussed whether or not the video should be shown on Channel 27. Board Member Walsh made a motion that the EMF video be shown every night for a one week trial period. Public interest could then be evaluated and plans made for future informational outreach. Board Member Allum seconded the motion and the motion carried unanimously. 4. OTHER BUSINESS: 1. Bob Nastan took about 10 minutes to give Board Members a slide presentation of the Drake Substation which he titled "Hamburger and Ribeye Steak". He mentioned that we buy transformers by the pound at about the same price of hamburger -- transformer weighs 200,000 pounds, at $2.19/pound = $450,000. The switchgear costs by the pound about the same as Ribeye steak -- ($4.29/lb.) The switchgear lineup cost just under $900,000. 2. Bob Kost mentioned that the Colorado Power Council has a tour scheduled at Light & Power, as part of the summer training camp program, on Friday, July 31, from 9:00-11:00 a.m. The tour will take place at the Equipment Building. All Board Members are invited to come and see what our distribution system looks like. 3. August 15th Meeting: There was some question as to whether or not there would be a quorum for the August 15th meeting. Staff mentioned that other boards sometimes take a summer meeting off because they have problems getting everyone together, and often times there is a light agenda. Staff had no agenda items for the August meeting. Board Member Al l um suggested that a tour be scheduled in lieu of the August meeting -- possibly Drake Substation or Rawhide. Mark Fidrych offered to schedule a time to take Board Members out to see a control area operation center. Board Member Brandt suggested that Don give the Board an update on the rate increase at the next meeting. Bob Kost suggested preliminary planning for communications on the rate increase to citizens as a possible agenda item for either the next meeting or September's meeting. -4- Rich Shannon mentioned that some of the other boards wait to within a week or two of the meeting and staff and the chairperson of the board determine if there is enough on the agenda to justify a meeting. If not, a notice is sent to Board Members that the meeting has been cancelled. Board Members felt this was appropriate and, if staff and Chairperson Rutstein determine that there are no pressing issues for the August meeting, a notice will be sent to Board Members that the August meeting has been cancelled. 5. CRITIQUE MEETING/NEXT MEETING'S AGENDA: Board Members thought the discussion on the Energy Policy was very interesting and liked getting into a "meaty" issue with differing discussion. f:111rIIOMMIVNIF The meeting adjourned at 6:58 p.m. ynn W. Coldiron, Board Secretary -5-