HomeMy WebLinkAbout2006 - Electric Board - Annual ReportFort Collins Electric Board
2006 Annual Report
The following is a summary of the 2006 activities of the Fort Collins Electric Board. The
report focuses on topics from the Board's 2006 Work Plan.
Electric Board Members
John Morris — Chairperson
Tracy Babst-Wiedenbrug — Vice Chairperson (January - April)
Dan Bihn — Vice Chairperson (May - December)
Tom Bamish
John Harris
Jeff L.ebesch
Alison Mason
Steve Wolley (June — December)
In 2006, the Board continued to focus on implementation activities associated with the
Energy Supply Policy adopted by City Council in 2003.
In summary, the Board participated in the discussion of the following topics:
Electric Service Rules and Regulations — reviewed and approved proposed
changes to the Electric Service Rules and Regulations. The proposed changes
eliminated obsolete rules and regulations governing the installation and operation
of distributed electrical generation at a customer's facility; accommodated an
increased interest in photovoltaic systems and alternative fuel generation; and
changed rules that prohibited the Utilities from purchasing any net excess
generation from the customer.
Joint Meeting with the Water Board — met with the Water Board to discuss
common interests and specific technical issues. The Boards also discussed the
pros and cons for a combined Board and the strengths and weaknesses of each
approach. Both Boards voted unanimously that it would be desirable to keep two
separate Boards, with a joint meeting held annually to address common,
combined or strategic issues.
Energy Supply Policy Update — highlights included the updates on the electric
system reliability (overall reliability of 99.9917%); progress of the distribution
system undergrounding program (99.6% complete); electric utility rates (average
increase of 4.35% as a result of wholesale power costs from PRPA); demand side
management programs and services (DSM savings in 2005 are nearly double that
of 2004); energy use statistics (the annual peak demand reduction in 2005
compared with 2002 is over 3.2 megawatts); and renewable energy programs
(renewable energy comprised 2.2% of the total electrical energy purchases in
2005).
CSU Energy Lab Update — CSU in cooperation with Spirae is working on a
distributed generation project at the engine lab located in the old power house on
North College Avenue. As proposed, the program would be implemented in three
phases: Phase I would provide enough power for their current load with (3) 100
kW generators; Phase II would install a 1.2 MW system and Phase III would
install a 2-MW system and would require a new dedicated electric feeder.
Hot Shot Program — reviewed system upgrades to the Hot Shot program. This
program was designed to reduce the peak demand on the electrical system with
the use of digital control units (DCU) installed on residential electric hot water
heaters. Due to the success of this program, it was decided to upgrade to a
software based system with ether net communications, remote programmable
DCUs, more scheduling/control options, feedback capabilities, e-mail notification
and database capabilities.
PRPA Integrated Resources Plan — PRPA and member municipalities plan to
implement several actions related to resource planning and acquisition including:
the addition of a new gas fired peaking resource at the Rawhide site, expansion of
energy efficiency programs, continued implementation of the Renewable Energy
Supply Policy, monitoring of developments in regional generation and
transmission resources, and monitoring changes in customer loads. The existing
generation resource portfolio with a small quantity of purchases from the
wholesale market is adequate to meet the needs of PRPA's members for the next
five years. However, a new resource is required by 2009. PRPA will also
continue to promote and increase demand side management programs as a part of
the resource portfolio.
Overview of 2006-2007 Budget — review of the 2006-2007 budget indicated that
revenues and expenses were on target with original projections. Note there are no
rate increases planned for 2007. Challenges include future annexations, increased
material costs and lead time, and the ability to retain and recruit engineering and
field employees. The Board continued to express concerns relating to the aging
work force and the lack of a critical skills pay option for retaining individuals
with critical skills such as utility personnel and in particular electric field services
personnel.
Electric Development Fees — Increases to material costs are the primary
contributor to the fee increases; with some material increasing by as much as
107%. The Board recommended Council approve the Electric Development fees
for 2007 with the concern that fees, given current market conditions, may be too
conservative.
Fort Collins Sustainability Group/Climate Protection Policy Resolution — The
Board agreed to support the Climate Protection Policy Resolution.