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HomeMy WebLinkAboutElectric Board - Minutes - 04/01/2009Fort Collins Utilities Electric Board Minutes Wednesday, April 1, 2009 Electric Board Chairperson City Council Liaison John Morris, 377-8221 Wade Troxell, 219-8940 Electric Board Vice Chairperson Staff Liaison Steve Yurash, 226-4248 Robin Pierce, 221-6702 Rnil Call Board Present Chairperson John Morris, Vice Chairperson Steve Yurash, Board Members John Graham, Dan Bihn, Tom Bamish and John Harris Board Absent Board Member Steve Wolley Staff Present Meagan Peil, Robin Pierce, Steve Catanach, Kraig Bader, Ellen Switzer, Eric Dahlgren, John Phelan, Terri Bryant, Bill Switzer and Patty Bigner Guests Rick Coen, Ryan Costa, Eric Sutherland and Kelsey Gilstrap Meetinjj Convened Chairperson Morris called the meeting to order at 5:32 p.m. Public Comment Guest Rick Coen discussed the topic of power disconnects for photo voltaic systems. Chairperson Morris addressed handling of public comment time in the future. Public comment time is up to the Board to have a discussion period or not with the public. It is up to the discretion of board members whether they elect to answer questions asked during the comment time. What is our legal obligation or our liabilityfor not having the public comment verbatim? It is not required since meetings are open to the public and an audio recording is made of the meeting. Board Member Bihn moved to put the reworded sentences back into the February 4, 2009, Electric Board minutes. Board Member Bamish seconded the motion, and it passed unanimously. Approval of March 4, 2009, Minutes Corrections to the March 4, 2009 minutes: On page four, the motion was made by Board Member Barnish and seconded by Board Member Wolley. On page five, the motion will be kept as is because of the recommended language, and the motion passed unanimously. Electric Board Meeting Minutes April 1, 2009 Board Member Graham moved to approve the minutes from the March 4, 2009, meeting. Board Member Harris seconded the motion, and it passed unanimously. Budgeting For Outcomes (BFO) 2010-2011 Routine Update Utilities Finance and Budget Manager Terri Bryant will be taking the Board's input on the BFO outcomes and results statements as previously discussed to the new City Council for their May retreat. In June, the Electric Board will receive the maps, drafts and will be able to make comments. Ms. Bryant thanked board members for their feedback; she will return with updates as information is available. Automated Metering Infrastructure (AMI) Light and Power Operations Manager Steve Catanach and Standards Engineering Manager Kraig Bader continued the update to the Board on the AMI initiative (Automated Metering Infrastructure) related to the intent to retrain employees directly affected by the AMI initiative. A line item for this has been added to the cost benefit analysis. In regard to stimulus funding, is it prudent to do this ahead of time? The current timeline for the AMI project would be in line with the stimulus package (project planned for 2010). The stimulus package would provide dollars to assist with more development of the Smart Grid technologies and better tracking. Would this be on a grant basis? Stimulus funds must be applied for. We are also going to request funds through the BFO process, but it is possible to get grant money. Do we need approval from the City through BFO or a proposal for the grant money? We have to apply for the grant within the application period, which would not run congruent with the BFO process. We would attempt to line up the timing as best we can, but municipalities are not in the lead on the stimulus package. Also, there are very strict rules with the grant money and requirements to follow. Vice Chairperson Yurash expressed reservations about the entire city being converted to AMI all at once and would rather see Utilities take a phased -in approach. Resources are the key to this implementation. The prudent approach would protect tax payer money, and the grant money should be looked at first. Staff responded that the intent is to convert areas of the city first that are made up of the student population. The two year budgeting process has an impact on this implementation, because costs continue to rise if we wait until the next budgeting process. We are going to look at phases in the high impact areas, which have the highest potential for negative impact on our operations. Implementation will last 12-18 months. By the time installation begins, how many meters will available to choose from on the market? There are numerous meters to choose from, and an experienced vendor will be chosen. We will follow the lead from states (California) and towns who have these meters in place. Electric Board Meeting Minutes 2 April 1, 2009 The ZigBee chips should be placed at the initial installation to avoid additional costs of adding them later in the project. We anticipate placing 65,000 meters in two years and a significant number of failures (5-10%) at the start. Issues with the meters will taper off for future years; meter life is 21 to 22 years. The expected life of the communication equipment is not known at this time. The system could be configured many different ways, affording us the opportunity to treat customers individually depending on the programs they have, for example, the Hot Shot load management program. This has a direct effect on the rate structure. With the physical installation of the meters, how many FTE's or contractors are you using and the cost of this? Is it quantified? An installation company would be used, but there are different operational details required. The implementation company that is chosen and Utilities would serve as the project managers. Net Meterin1l and Service Code Update Mr. Catanach presented the set of recommendations from the Electric Board to the Natural Resources Advisory Board (NRAB) in February. The Natural Resources Board recommended eliminating the PILOTS (Payment In Lieu of Taxes), collecting the taxes and setting a cap on the amount. NRAB favored cost -sharing among all affected residences. Routine Updates: PRPA - Vice Chairperson Yurash: Currently, PRPA has a 140 million dollar bond project for lines in the Longmont area and other projects to benefit and reinforce the system. PRPA had been funding their projects through a revolving line of credit, but the interest rate doubled, so currently, bonds are being used to fund projects due to the better rates. PRPA signed on for 12MW of wind power owned by Duke, which will be comprised of 20% renewable for that project. PRPA hired a team of consultants to assist with the carbon reduction. Capital News - Board Member Wolley: There was no report. Other Business The next regular meeting is scheduled for May 6, and Platte River Power Authority has a need to present the Carbon Action Plan to the Board after May 8. The Board decided to hold the May 6 Electric Board meeting as scheduled and schedule a special meeting to hear this topic. Vice Chairperson Yurash brought up the Climate Action Plan and global warming. In the last three years, we have been cooling. A handout was distributed related to sunspot and temperature cycles. This has an effect on the goals for 2050 carbon emissions. The City is spending a lot of money at Rawhide Power Plant,to sequester the carbon. We should be potentially looking at electric cars and the bigger picture such as storage of electricity, because power is not stable and fluctuates. This limits wind power generation for the future. Vice Chairperson Yurash favors discussions about any reservoirs being part of hydroelectric storage. Electric Board Meeting Minutes 3 April 1, 2009 Where would Glade Reservoir pump to? There would have to be two basins; there are some in Georgetown and Louisville, and one lake would have to be at a higher elevation and one at a lower elevation. Who owns the Glade project? A group of cities make up the Northern Integrated Supply Project (NISP) which owns the project. Does our Board have any power to say anything or make a recommendation to use hydroelectricity storage? There is the possibility to look at the County, because they are working on an initial environmental resource plan. There is a water project from Granby to Denver; this moves water from the western to the eastern slope. Every time it moves elevation, it goes through a hydroelectric station. Horsetooth is also a part of that project, and the excess generation gets sold to the holder of the rights. How does the Board feel about a letter of recommendation to Glade Reservoir to use it as a hydroelectric storage? Board Member Bihn would be opposed due to efficient battery storage with FortZED, a more cost effective and efficient option than water. Board Member Graham was also opposed to writing the letters of recommendation. PRPA is looking at the hydroelectric small projects, and concepts are beginning to grow. Answers should be sought about renewable energy, storage and hydroelectricity as they relate to smart grid technology, the FortZED project and the economy. Utilities staff continually study new trends, more efficient equipment, charging components for technologies and how to manage unrealistic goals. Future Agenda Items Climate Action Plan BFO PRPA Carbon Action Plan (potential special meeting) Adjournment The meeting was adjourned at 7:43 p.m. following a motion to adjourn by Board Member Barnish. The motion was seconded by John Graham. Submitted by Meagan Peil, Electric Board Secretary Fort Collins Utilities Approved by the Board on _ , 2009 Signed Me gan Peil Date Electric Board Meeting Minutes 4 April 1, 2009