Loading...
HomeMy WebLinkAboutElectric Board - Minutes - 04/15/1992Minutes to be approved by the Board at the May 20, 1992 meeting. FORT COLLINS ELECTRIC BOARD MEETING MINUTES April 15, 1992, 5:00 - 6:30 P.M. BOARD MEMBERS PRESENT: John Allum, Dane Brandt, Mark Fidrych, William Orendorff, Barbara Rutstein, and Richard Smart. BOARD MEMBERS ABSENT: Larry Walsh. STAFF PRESENT: Don Botteron, Allen Boushee, Delynn Coldiron, John DeHaes, Ron King, Bob Kost, Bob Nastan, Tim Sagen and Dennis Sumner. BOARD LIAISONS: Council Liaison -- Gerry Horak Staff Liaison Don Botteron CALL TO ORDER: Barbara Rutstein called the meeting to order. AGENDA: 1) Approval of Minutes 2) Electric Rate Options 3) Integrated Resource Management 4) By-laws 5) Other Business 6) Critique Meeting/Next Meeting's Agenda DISCUSSION TOPICS: 1. APPROVAL OF MINUTES: A Motion was made by Board Member Allum to approve the Minutes. Board Member Smart seconded the Motion. The Motion carried unanimously and the Minutes from the March 18, 1992 meeting were approved. 2. ELECTRIC RATE OPTIONS: Don Botteron reported to the Board that Mayor Kirkpatrick felt that Council needed additional information regarding the rate options and recommendation, and requested that a work session be scheduled. The earliest time available was June 23. We will be meeting with Council at that time (June 23, at 6:30 p.m.) to provide them with the additional information they require. Don mentioned that he also plans to have the draft Ordinance and Resolution prepared and will share these items with Council during this meeting. Don invited any interested Board Members to attend this work session. INTEGRATED RESOURCE MANAGEMENT: Dennis gave a brief introduction. This segment of the meeting was split into five portions: 1) Introduction (Dennis Sumner) 2) Overview of Platte River Power Authority/Energy Efficiency Task Force (Bill Emslie) 3) Fort Collins Light and Power Status (Dennis Sumner and Tim Sagen) 4) Pending Litigation (Dennis Sumner and Bob Nastan) 5) Discussion/Q&I Bill Emslie gave an overview of PRPA/EETF. He mentioned that Integrated Resource Management combines two things -- the concept of demand side management and the concept of supply side alternatives. Ideally, there needs to be a balance between the two. Currently, demand side management efforts include an Energy Efficiency Task Team (representatives from the Cities of Fort Collins, Estes Park, Longmont and Loveland, together with representatives from Platte River), and individual PRPA and City programs. supply side efforts have included the Cities and Platte River looking at costs, flexibility, availability and the technology of different supply side resources currently available. Integrated Resource Planning is: "The development of the hierarchy of demand side management activities and supply side resources to be employed in a cost effective and environmentally responsible manner for reliable electric service while producing the desired load shape." The key words in this definition are "producing the desired load shape." The goal of Integrated Resource Planning is to try and meet the load, together with trying to produce the desired load shape. Bill next discussed the twelve key steps of Integrated Resource Planning: 1) Understand load shape. 2) Determine desired load shape 3) Determine marginal costs 4) Determine environmental costs 5) Identify DSM programs and technologies 6) Evaluate supply side resources 7) Perform screening tests 8) Develop hierarchy 9) Implement/monitor pilot programs/resources 10) Correct/expand successful options 11) Monitor/adjust... Monitor/adjust... 12) In every step, involve affected publics Wt • 0 Platte River is able to understand load shape and determine the desired load shape with the use of a data collection system which enables them to look at the load. It enables Platte River to determine when the peaks occur during each month. Load duration is another way of looking at this. Load duration is a way of ordering the entire series of loads that occur during an entire year. By looking at the load duration curve, they are able to determine how many hours during the year the load was above a certain level. Platte River had to have a certain amount (40 megawatts) of generation available to meet the load, but used this load for only 500 hours out of the 8,760 hours available for the year. This prompts them to ask "What could have been done to shift loads?" "Could we have moved some megawatts off of the system or deferred them to a different time of day?" If we can find ways to do this, extra generation will not be necessary to meet the load. This means we can save power for the future, delay the construction of additional power plants, and sell additional megawatts to other utilities as surplus and preserve some revenue (peak shaving). One of the desired load shaping characteristics is peak shaving. Marginal costs -- trying to determine the total cost to produce a kilowatt hour. This is important to know because the value of this can be used as a credit toward doing something to shave the peak. Considered in the marginal costs are the 20 year horizon, time of day, resource employment and "opportunity" costs. Environmental costs are the impact of generating a kilowatt hour that is not already generated in the rate ("what goes up the stack," "what is left in the ground," etc.) The question here is should the test for cost effectiveness of demand side programs or supply side resources include a cost for the impact on the environment and the society? The answer to this is yes, but to what extent? The Task Team looked at the environmental costs at Rawhide. It turned out that in 1990, 5.1 mils/kilowatt hour, or about 1/2 cent/kilowatt hour, was spent on environmental mitigation. The Task Team determined that if we have already spent that much for every kilowatt hour generated, it makes some sense that an equal amount would be spent for what we haven't done. Task Team suggested that another 5.1 mils/kilowatt hour could be the environmental cost of electricity for our area. In identifying actual demand side management programs and technolo- gies, Platte River considers how these are applied, how they would be implemented in this area, and what kind of track record these demand side management programs have. The most probable alternatives are selected. One of the largest factors used in selecting these programs is peak shaving. Platte River is currently in the middle of this step. A draft report on these programs and technologies will be available on April 24. Supply side activities are also being evaluated. While looking at supply side resources at Platte River, Platte River considers the type of generation resources that are needed -- base, intermediate or peaking (optimal type of resource to use.) Also considered is timing, ownership, cost, environmental impacts, and a number of other factors. -3- - Screening tests have not yet been performed. These tests are generally applied to demand side programs. The participation test looks at the amount of interest there is in a program -- who will be involved; the rate payer impact measure test determines whether or not there is an impact difference on different rate classes and, if so, what the impact is for the rate payer; the utility cost test determines what the impact of the demand side program is on the utility; and the total resource cost test looks at the big picture. By going through these tests, we are able to get a pretty good idea of how effective the programs will be. - Next, the programs are ordered according to the results of the screening tests and the costs of the resources. This gives us an idea of which programs should be done first. Once the hierarchy is established, pilot programs will be implemented. Based on the success of the pilot programs, corrections will be made to the ones that need it, and successful programs will be expanded into larger programs. Over the long term, programs will be monitored and adjusted accordingly. In every step it is important to involve affected publics. A citizen participation subcommittee has been formed. If the public is involved throughout the process, and are given the opportunity to provide feedback along the way, it assures that when we are ready to implement a major demand side program, we already have consent from the public to go ahead. Dennis followed Bill's presentation and gave some highlights of Fort Collins Light and Power's efforts. The fundamental objective for Light and Power is the demand side load shape improvement. Light and Power is also concerned with supply side issues. - Tim Sagen reported on supply side findings. He explained that a Situation Analysis was done by NEOS to establish where we are today. He noted this analysis might be considered as a system design and operation audit. This audit resulted in some very good conclusions: - The City's overall distribution system is in good -excellent condition. System losses in 1990 were 4.12% -- typical distribution systems run 6%. Ft. Collins Light and Power is doing better than the average U.S. distribution system. - Some of the reasons that our losses are low are: - The ratio of installed distribution transformer capacity to system peak demand is 1.77%. This ratio is typically 3% on other distribution systems. Our system incurs substantially fewer no load transformer losses than a typical distribution system because we do not have as much excess transformer capacity. -4- - We do loss evaluations on all of our substation and distribution transformers -- assures that we look at the economics of purchasing transformers, as well as the affect of losses on the system. - We use cross-link polyethylene insulation on all of our cable. Light and Power has converted almost all of the streetlighting system to high pressure sodium lights from mercury vapor. There is a substantial energy savings here. Light and Power tries to operate the system as close to nominal as we can so that the voltage on the system is not running too high. When the voltage on the system is run higher, losses in our transformers increase. - Recommendations: - Continue the current practice of 230KV transformation at all of the substations. Light and Power has one substation with two power transformers that transfer directly from 230KV to distribution voltage -- eliminates one step down. Many times systems step down from 230KV to 115KV and from 115KV to distribution voltage. Losses occur in each transformation. - Power factor improvement. Light and Power's policy has always been in accordance with the rates -- the rates require 95% power factor or better. NEOS recommends that we go to a unity power factor. There are two ways to accomplish this: 1) Get customers to go to unity; 2) Do what we can ourselves at the distribution substation. Dennis followed with some information on Light and Power's efforts related to demand side activities. NEOS prepared a detailed listing of options to be considered. A first screening of these options based on applicability, load shape objectives, and building types (commercial/industrial) was done by NEOS. This was followed by a second screening that resulted in a list of 60 technologies that were still being considered. Successive screenings resulted in five potential programs at this stage of the evaluation process. They are: C/I high efficiency lighting - Residential high efficiency lighting - Single family electric to gas space heat conversion - Multi family conversion, somehow promoting gas space heating - Residential water heater cycling program (analysis of HOT SHOT) Next steps: - Complete detailed analysis of screened programs - Select one or two programs for pilot testing - Implement programs as appropriate -5- Pending legislation: - Draft memorandum being prepared for submittal to City Council concerning the City of Fort Collins' Comprehensive Energy Policy. - Bob Nastan explained the pending legislation on the state and federal levels. At the State level, the Public Utilities Commission is looking at IRPs. They have 3 dockets that are open: 1) Electric Utilities (Public Service Co. of Colorado); 2) Wholesale power suppliers (Tri-State); 3) What gas utilities should be doing as far as IRPs. The PUC is taking input and comments from anyone who cares to do so. They approved some demand side programs for Public Service and have allowed Public Service to recover the cost of these programs through their rates. The Commission is also trying to get Public Service, Tri-State and other utilities in the state to form a common load control area (one entity would control all of the generation in the state and dispatch that generation to the load.) There are three control areas, plus one mini control area, in the state right now. The Governor came up with the PEAK plan -- proposed a surcharge on electric rates that would be used to fund commercialization of energy efficient technologies. On a federal level, Western is drafting a new IRP process for their customers -- Energy Planning and Management Program. Western is encouraging and providing incentives for their customers to participate in IRPs. Representative Miller in California proposed Bill 4126 that would mandate a rather difficult and complicated IRP process on all Western customers. This bill has been rewritten (Bill HR776) and is now basically a codification of what Western is doing right now. - Dennis passed out a public information brochure (in very rough draft form) for informational purposes. Feedback from individual Board Members on this brochure was requested. Questions/answers followed the presentation. One question raised was that out of the five programs Light and Power has identified, four of these seem energy related as opposed to peak shaving. It was noted that these programs need to be evaluated in terms of system load shape. For example, converting electric heated homes to gas heat would result in significant electrical energy reduction. But, because of the pronounced impact of residential electric heat on the electric system annual peak, it may actually be considered a peak reduction program. This level of detailed evaluation will be done in the next screening step. ME 4. BY-LAWS: 5. Board Members discussed the By-laws which had been previously prepared by Chairperson Rutstein. Chairperson Rutstein had some additional items which she suggested be inserted into the By-laws. Other changes were also suggested. Board did not come to closure on this issue. Changes will be made in accordance with suggested changes and sent to Board Members prior to next meeting. Board will attempt to finalize a draft of the By-laws at the next meeting. Staff will forward the By-laws to the legal staff for their review, and Board could then plan to take final action on the By- laws at the following meeting. Board Members agreed with this approach. OTHER BUSINESS: THANK YOU NOTE: Chairperson Rutstein asked that a thank you note be prepared and sent to Council for coffee/desserts and the Wynton Marsalis concert. Delynn will prepare this and forward it to Chairperson Rutstein for signature. EMF CONFERENCE: Chairperson Rutstein mentioned that she talked with Gerry Horak and he asked if anyone was planning to attend the EMF conference in Arlington, Virginia in mid -May. No one had plans to go. John Allum mentioned that there is a lot of activity currently going on with EMF within the State. Colorado Springs, Platte River and Public Service are involved and are coming up with a package on EMF. CAMU is sponsoring a two hour workshop at the CML conference on June 18th and 19th (in Ft. Collins). Board Members expressed an interest in attending this part of the conference. UNDERGROUND REPORT: Bob Kost mentioned that a section is being added to the Underground Report which will include priorities, safety concerns relative to overhead lines in residential areas, etc. Once this is developed, it will be forwarded to the Board for discussion. 1993 BUDGET: The Utility is at a check point in the '93 budget preparation process. Staff will have budget impact statements available at next month's meeting for the Board's review. Staff anticipates that we will have an impact statement on the rates and on the undergrounding program. At this point, staff is fairly sure that there will not be an impact statement prepared on energy efficiency programs. CRITIQUE MEETING/NEXT MEETING'S AGENDA: Board Members felt very good about the meeting and were pleased that more things are getting done. Glad to be getting into real issues. Good to get up to speed on Energy Efficiency Task Force issues. . -7- Board discussed items to be included on next month's Agenda: - By-laws - Undergrounding program - 1993 budget - Update on Energy Efficiency Programs TASKS: Delynn will prepare a thank you note to Council for coffee/desserts and the Wynton Marsalis concert and forward this to Chairperson Rutstein for signature. By-laws will be changed in accordance with suggested changes and forwarded to Board Members prior to next month's meeting. Staff will prepare impact statements on rates and on the undergrounding program and will forward these to Board Members prior to next month's meeting. Staff will forward a copy of the revised Undergrounding Report to Board Members once this is done. ADJOURNMENT: The meeting adjourned at 7:05 p.m. Delyn4f R. Coldiron, Board Secretary 10