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HomeMy WebLinkAbout2008 - Electric Board - Annual ReportFort Collins Electric Board 2008 Annual Report The following is a summary of the 2008 activities of the Fort Collins Electric Board. The report focuses on topics from the Board's 2008 Work Plan. Electric Board Members John Morris — Chair Dan Bihn — Vice Chair Tom Bamish John Harris Jeff Lebesch Steve Wolley John Graham 2003 Energy Supply Policy In 2008, the Board continued to focus on implementation activities associated with the Energy Supply Policy adopted by City Council in 2003. Discussions related to the Energy Supply Study included: Electrical Equipment and Electric System Reliability — It is clear that staff has a true commitment to equipment reliability and employee safety. Again, as in previous years, the overall reliability of the electric systems remains high with the average availability index (ASAI) at about 99.9965% and the average interruption frequency index (SAIFI) at under 0.70 interruptions per customer. These indices exceed the goals of 99.9886% or higher availability and less than 1.0 interruption per customer per year. The average outage duration was 26 minutes, exceeding the goal of less than 60 minutes. The Board recommends continuing with the services, monitoring and funding necessary to provide these levels of system reliability. System Performance, Security and Maintenance - Staff completed a number of projects on the distribution system and related communications infrastructure that promote reliability and system security. It is clear that staff has a true commitment to equipment reliability, system security and employee safety. The Board recommends continuing with the services, monitoring and funding necessary to improve system infrastructure performance and security, and employee safety. Staff Training — The majority of the Light and Power management team, line crews and foremen received disaster recovery and management training, which included review of necessary planning, mitigation and preparation for maintaining or restoring the utility system in the case of an emergency event. The Board also reviewed information provided from the Rocky Mountain Electric League (RMEL) conference. These training opportunities ensure that the Utilities staff remain proficient and contribute to the.reliability of the electric supply and distribution system. The Board recommends continued support for staff training. Energy Supply Policy Update — Staff presented an update on the Electric Energy Supply Policy. As noted above the electric system reliability (overall reliability of 99.9965%) exceeds the minimum targets and Utilities staff take pride in the programs designed to keep the electric system operating with a high degree of reliability, security and safety. The distribution system undergrounding program is essentially complete. The electric utility rates continue to be competitive and remain well below many other municipalities and investor owned service providers. The demand side management and conservation incentive programs, such as the clothes washer rebate program, cooling rebate program, refrigerator and freezer recycling program, the residential lighting program and the electric efficiency program continue to have active use with estimated annual savings in 2007 of over 8,200 MWh; with cumulative energy savings since 2002 of nearly 27,700 MWh and a cumulative demand savings of over 4,900 kW. Since 1992 the population of Fort Collins has continued to increase. The Energy Supply Policy has goals for a 10% per capita reduction in energy use by 2012 (2002 baseline), a per capita demand reduction of 15% by 2012 and a 15% increase in renewable energy by 2017. The energy use statistics indicate the annual per capita energy use is up 4.8%, and the per capita peak demand has increased 11.8%. The City will need to continue to give high priority to energy conservation and demand reduction programs in order to meet the goals set out in the Energy Supply Policy. The Board discussed whether these goals are still realistic and feel that with continued focus the goals can be achieved. There was significant discussion focused on the renewable energy goals and the use of Renewable Energy Certificates (REC's) as a means of achieving these goals. Overall, in 2007 renewable energy comprised 6.5% of the total electrical energy purchases, and renewable energy purchases were 93,000 MWh. The Board commends the Utility staff on their efforts and encourages continued focus on these initiatives. PRPA Renewable Energy Certificates (REC's) — PRPA Division Manager, John Bleem, spoke with the Board about PRPA's REC policy and resources. Currently, PRPA's renewable energy portfolio is made up of about 80% REC's and 20% renewable energy generation. Over time, PRPA plans to add a 12-15 MW wind plant, so the ratio will change to about 60% REC and 40% delivered energy in just a few years. By 2020, PRPA plans to have nearly 70% delivered energy and only 30% REC's. The Board shares concerns about the dependence on REC's, but in general feels that REC's continue to play a role in meeting renewable energy portfolio standards. The Board will continue to review this issue in 2009. PA Environmental Benefits — The DSM efforts are estimated to have avoided over 5,715 tons of CO2 in 2007, with a total avoidance of over 19,175 tons of CO2 since 2002. The total 2007 avoided emissions, including renewable energy, are estimated at over 87,810 equivalent tons of CO2. 2008 Energy Policy In 2003, City Council adopted the Electric Energy Supply Policy that recognized the interrelated planning goals of high reliability, low rates and minimizing environmental impacts. The 2003 plan set the framework for effective actions to meet these goals; however the Electric Board felt that it was time to update the plan and associated goals. The revised Energy Policy reflects five years of experience implementing the 2003 policy, the evolving electric utility industry and the interests of Fort Collins citizens. The purpose of the revised policy is to provide guidance for Fort Collins Utilities' Light and Power Service Unit and the Energy Services group. The vision of the new policy is: "To serve the community with highly reliable, affordable, carbon neutral electric service, guided by an ethic of sustainable, innovative and responsible management." The policy describes four goals with associated objectives and metrics. These four goals are: 1. Provide highly reliable electric service. 2. Support the community's carbon emissions goal of reducing the City's carbon footprint 20% below 2005 levels by 2020 and 80% by 2050. 3. Enhance local economic vitality. 4. Maintain Fort Collins Utilities' collaborative relationship with Platte River Power Authority. The 2008 Energy Policy will be reviewed and revised as needed the fifth year after adoption. At the November 19, 2008, Electric Board meeting the Electric Board unanimously endorsed the revised policy and respectfully, yet strongly, recommended that City Council adopt the new Energy Policy. Climate Task Force The Electric Board had two members who actively represented the Board on the Climate Task Force (CTF). These members provided routine updates to the Board at large. Senior Environmental Planner, Lucinda Smith, also provided numerous presentations to the Board at large. The Board actively discussed topics such as smart meters, tiered electric rates, time -of - sale energy upgrades for residences, and the need to use renewable energy credits (REC's) to supplement the CTF initiatives. The Board also actively discussed topics such as rate impacts, -3- electric system reliability, carbon penalties, and technology investments that may contribute to or be impacted by the CTF goals. The Board supports the goal of a 20% reduction in greenhouse gas (GHS) emissions by 2020. The Board also supports the goals defined in the CTF final report, and believes that the new Energy Policy aligns well with the strategies defined by the Climate Action Plan. The Board also participated in the discussion of the following topics: 2006 International Building Code — Building Code/Inspection Manager, Mike Gebo, provided a presentation on the 2006 International Building Code (IBC) and the 2006 International Energy Conservation Code. The Board passed a motion recommending that the City adopt these new codes to replace the current code, the 1997 Uniform Building Code that was adopted in 1998. The Board also encouraged Council to adopt future local amendments as needed to remain progressive in the area of energy conservation. The Board also recommended that the City adopt the 2007 ASHRAE 90.1 Commercial Energy Code. Fall Lighting Program — Energy Services Engineer, Doug Swartz, reported on the 2007 Residential Lighting Program, which began as a pilot in 2006. The program typically begins in early October and runs through mid -December, offering discounted compact fluorescent lamps (CFL), with a focus on ENERGY STAR lamps, and discounted LED holiday lights accompanied by a turn -in event for old conventional light strands. In store promotions and educational events offered an opportunity for consumer education. The success of this program has led PRPA to offer similar programs in the other PRPA served cities. CFL's,last significantly longer than conventional incandescent lamps, but do contain a small amount of mercury. The City provides a brochure to address this concern, however there needs to be additional effort focused on a safe recycle/disposal plan. Governor's Energy Office Applications — Staff members Doug Swartz, Norm Weaver and Patty Bigner presented information on several initiatives that the Governor's Energy Office (GEO) introduced to accomplish the environmental goals. Some of the programs being supported include ENERGY STAR new homes, Insulate and Seal projects, solar PV and the GEO Colorado Carbon Fund for promoting carbon offsets. Ms. Bigner later reported that the Utilities received a $25,000 matching grant to support the branding effort for ENEGY STAR New Homes. By September 2008, Ms. Bigner reported that there were 12 applications received since the July kickoff, and there were sufficient funds available to open another round of applications. Green Building Roadmap — Green Building Program Manager, Dana Leavitt, provided an overview of the City of Fort Collins Green Building Roadmap, which will facilitate integration of energy codes, water conservation, stormwater and development review. The Electric Board supported recommendations to remove barriers, encourage innovation, reward success and further develop internal capacity. The Board also encouraged the Green Building Program to implement its website by mid -year 2008. CM Revisions to City Code Division 3 Electric Service Sections 26-391, 26-441, 26-442, 26-443 and 26-444 - Electric Field Services Manager, Tom Rock, General Council for PRPA, Joe Wilson, and Light and Power General Manager, Steve Catanach, lead several discussions on a proposed change to the City Code regarding electric service from any person or entity that is not franchised within the City. The code revisions attempt to clarify the issue of parallel generation or self -generation. The code also contains sole provider language necessary to clarify the City's position on obtaining and providing electric service within City limits. Fort Collins Utilities (FCU) has entered into a sole provider agreement with PRPA; however FCU also needs the option to accommodate distributed generation projects. The Board recommended accepting the code revisions in order to provide more flexibility and encourage projects such as solar photovoltaic systems, while still protecting the service territory from third party retailing. Net Metering - Light and Power General Manager, Steve Catanach, reported on the status of the current net metering program. The Sate Legislature passed House Bill 1180 requiring net metering with a threshold of 1 Okw for residential customers and 25kw for commercial customers. The Board supports the existing FCU net metering program, and discussed local thresholds and the purchase price offered for excess generation. The Board has a desire to promote and encourage opportunities for projects such as solar photovoltaic technology and other renewable energy projects. Therefore, the Board recommends a threshold of 25 kW for residential customers and 1 MW for commercial customers. The Board also recommends purchasing power from these types of projects at the retail rate, acknowledging that it will have a slight impact on PILOT fees and taxes that contribute to the City general fund. If there is a boom in these types of projects, the Board is willing to reconsider the purchase price offered for excess generation. This topic is closely related to the previous bullet on the City Code revision, promoting renewable energy projects while protecting the FCU service territory. Smart Grid - Light and Power General Manager, Steve Catanach, and FCU Standards Engineering Manager, Kraig Bader, provided a presentation on smart grid technology. Although this is an emerging concept, FCU does have many programs in place that provide a solid foundation to expand upon. Some of these programs include automated switches and relays, predictive cable failure detection, and various conservation programs such as the Hot Shot load control. Future opportunities exist for smart design and in -home meter displays, smart metering, automated metering infrastructure (AMI) and a systems communication infrastructure. The Board recommends that FCU staff continue to pursue implementation of these concepts. Partnerships with Area Entities — Customer Services and Employee Relations Manager, Patty Bigner, spoke about the Utilities' area partnerships. Strong partnerships exist with Colorado State University (CSU), Poudre School District (PSD), and UniverCity Connections/FortZed. Some of the activities with CSU include CSU's Green Energy program for residence halls, Housing Fair, Earth Day, the Children's Water Festival, Natural Resources Day, CSUnity, President's luncheon, internships, Clean Energy Cluster's DOE grant application to study integration of distributed generation, City's CTF, the Utility's 2151 Century Sustainability Project, CSU's renewable energy projects, and collaboration with the CSU Facilities - 5 - Management Department. Some of the activities with the PSD include Integrated Design Assistance, LightenUP, Electric Efficiency, demand management using the load management signal, use of the ElectriConnect web service, and Cooling Rebates. PSD has received energy efficiency incentives totaling over $100,000, with reductions of 945 MWh and 284 kW. PSD also provides electric related educational programs including Energy Rules, Explore the Power of Wind, Energy Conservation, and Look Up and Live. • Overview of 2008-2009 Budget — Utilities Finance and Budget Manager, Terri Bryant, provided an update on the status of the 2007, 2008 YTD and proposed 2009 budgets. The 2008 expenses are coming within budget. The original 2009 rate increase was projected to be 2.7%. The revised proposed rate increase is 2.8%. The FCU rate increase is due to the PRPA wholesale increase of 3.8%, and only passes on the wholesale increase with no other increase impacts on the customers. There were also discussions about the proposed increase to development fees. The development fee increases are needed to address increases due to inflation, and labor and material costs. The development fee increase ranges from 5.1-5.8%. The Board recommended approval of the proposed 2009 budget, including the recommended appropriations and exceptions, additional FTE, and rate increases. Energy Board — The Board discussed the concept of replacing the Electric Board with an Energy Board. While the Board agrees a board is needed that is charged with a broader perspective, the Board felt that this would dilute the focus on an important utility service to the community. The Board feels that the City should consider creating a new position, such as a Sustainability Officer, that focuses on the various aspects of sustainability including energy use, transportation, material purchases, recycling, new construction, GHG emission reduction, landscape use and maintenance practices, etc. This position is not uncommon in today's corporate world. In turn, a Sustainability Board could be charged with assisting this position to review and implement City goals, strategies, policies and procedures. The Board feels that sustainability includes far more than simply energy and transportation, and should focus on environmental, economic and equity practices. There are many dedicated professionals on the Electric Board that provide value to the staff, Council and the community; and the Board respectfully requests that City Council reconsider replacing the Electric Board. The Electric Board is very willing to assist in the development of a separate Sustainability Board. Appreciation The Board would like to commend the commitment and support demonstrated by Councilman Wade Troxell. After having a Council liaison that was not able to devote much time to the Electric Board, it is exciting to have Councilman Troxell's active participation in the Board meetings and discussions. His guidance and dedication are greatly appreciated! M