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HomeMy WebLinkAbout2010 - Electric Board - Annual Report- 1 - Fort Collins Electric Board 2010 Annual Report The following is a summary of the 2010 activities of the Fort Collins Electric Board. Electric Board Members John Morris – Chair Steve Yurash – Vice Chair Tom Barnish Dan Bihn John Graham John Harris Steve Wolley Energy Policy In 2010, the Board focused on implementation activities associated with the Energy Policy adopted by City Council in 2009. Discussions related to the Energy Policy included: • Major activities and highlights from 2009: o Continuing implementation of the wide-ranging initiatives, programs and services related to implementation of the Energy Policy. o 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 99.9979% and the average interruption frequency index (SAIFI) was 0.39 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 customer outage duration index (CAIDI) duration was 28 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. o Electricity use in the community decreased by 1.4% from 2008 to 2009. o Electricity savings from 2009 efficiency programs totaled over 10,200 megawatt- hours in annual electricity use, or 0.7% of the community’s electricity use. This is equivalent to the annual electricity use of over 1,150 typical Fort Collins homes. o Electricity savings from 2002 through 2009 efficiency programs totaled over 50,000 megawatt-hours in annual electricity use. This is equivalent to the annual electricity use of over 6,000 typical Fort Collins homes. o Gross Energy Policy related GHG reductions were estimated to be 119,847 metric tons. o Electric rates did not increase in 2009. As of July 2009, Fort Collins typical residential customer bills were in the lowest 6% of utilities in Colorado reporting to Colorado Association of Municipal Utilities (CAMU). o Development of a plan to meet the policy goal for verifiable efficiency program savings reaching 1.5% of the community’s electric use. For 2010, this translates - 2 - to a goal of 22,000 megawatt-hours of savings. The efficiency plan was the basis for the 2010 budget for Utilities Energy Services. o Development and roll-out of a new pilot program, Home Energy Reports. The Home Energy Reports program provides periodic reports to 25,000 homeowners about their own electricity use, including how the use compares to a group of similar nearby homes. o Development of the elements of a new comprehensive Home Efficiency Program, which targets performance based improvements in existing homes. The program launched in January 2010. o Utilities applied for and received a $15.7M grant from the Department of Energy for implementation of Advanced Metering Infrastructure (AMI) and Smart Grid. The grant is the basis for a modernization of the electric metering system, aspects of distribution grid automation and a platform for future demand response and energy efficiency measures. o Load management and demand response programs for residential air conditioning, residential hot water heaters and commercial/industrial customers were documented to avoid over 12.8 megawatts of summer peak demand. o Renewable energy comprised 6.4 percent of total electrical energy purchases in 2009. Renewable energy purchases were 95,000 megawatt-hours. o 284 kilowatts of photovoltaic (PV) capacity were added in on-site customer renewable energy systems, with over $40,000 in grant funds from the Governor’s Energy Office were delivered to customers. o Utilities received $320,000 in stimulus funds through the Energy Efficiency and Conservation Block Grant (EECBG) program. Funds are being applied to the development of the Green Building Program and Solar Thermal system rebates. Plan Fort Collins In 2010, the Electric Board was pleased to have the opportunity to provide input into the Plan Fort Collins vision and strategic planning initiative. The Electric Board provided input on topics such as: • Align or balance reliable, cost-effective service goal (including asset management) with energy efficiency, renewable energy and electric load management goals. • Execute the plan for smart grid (Smart Metering - AMI) and utilize the data to provide information to guide strategic plans. • Continue to educate energy users on how to use energy efficiently, wisely and prudently while allowing them to use energy to meet their needs and desires. Provide the tools for the public so they know how to make smart decisions that can guide them to make behavioral changes. • Investigate changes to the rate structure to send real time price signals that reflect the true cost of electric supply. • Salaries, succession planning and retention for electric power related positions, ranging from linemen to engineers. • Address green building and efficiency programs so that the buildings that are built today, and that will be around for the next 30-50 years, will be as efficient as possible. • Pursue grants to ensure energy efficiency programs remain affordable. • Platte River Power Authority stability. - 3 - • How to account for increased use of electric vehicles and how that may impact energy reduction goals. Investigate how the existing distribution grid can accommodate these changes in energy use. • How to manage the distribution system with increased distributed generation systems such as increased use of solar photovoltaics (PV). • Addressing the changing assumptions in how baseload energy supply is provided to ensure reliable energy supplies while accommodating intermittent distributed generation, such as wind and PV, in the absence of sufficient storage options. • Planning adequate resources to address an aging infrastructure in order to continue providing a reliable distribution system. • Effectively responding to changing and increasing carbon and greenhouse gas (GHG) regulations and policies, while managing price parity and affordability, and maintaining a highly desirable, responsible, competitive and affordable community. OPower Home Energy Reports The Electric Board reviewed and provided input to City Council on the OPower Home Energy Reports. Fort Collins Utilities launched a home energy report program, designed to help utility customers save energy and money and reduce electricity use. 25,000 customers receive individualized reports to help identify how a customer’s home energy usage compares to that of approximately 100 nearby homes with similar characteristics and energy needs. Characteristics are defined as square footage, home type (apartment or single-family), fuel types, etc. The value of the reports is to help customers understand their monthly home energy usage, track progress on how their homes’ usage changes over time and where they likely have opportunities to save. In addition, the reports offer energy-efficiency tips specifically tied to a customer’s energy usage. The customer report shows monthly, two-month and annual graphic comparisons with a customer’s neighbors, plotting the customer’s energy usage with all neighbors, as well as, the most efficient. A “benchmark” group of 25,000 households receives home energy reports on an average of 6 times per year. This group will have free online access to the program’s Energy Insider website. Energy reduction of the benchmark group will be measured against the control group. In addition to energy reduction due to behavioral changes (conserving energy), the program’s home energy reports and online tools are expected to help improve Demand Side Management program participation. It is important to note that all the account information collected through this program is confidential and shared only with that specific customer. Customers have voiced the following concerns: • Their data security and privacy is most important. OPOWER takes data security as their highest priority and don't use customer information for any other purpose. • It's not clear how to opt out. A welcome insert in the next set of reports will make this clear and provide an additional option for electronic delivery. • The cost of the program in terms of good use of efficiency funds is a concern. It is a great use of funds, because it has a large impact across the customer base and enables customers to save money on their bills. Also, Platte River Power Authority (Platte River) contributed funds to this program. - 4 - • There were environmental concerns over the use of paper versus electronic reports. Data has shown that paper reports provide the best format for customer engagement, and OPOWER will work collaboratively to transition to more electronic delivery over time without sacrificing the desired results. Data indicates once the paper reports cease, customers revert back to previous energy behaviors. The Electric Board determined that the Home Energy report program has proven itself to exceed the stated goals of community engagement and participation with resulting energy savings in the short time it has been in effect. This program provides feedback to the electric utility customers and sets the foundation for future projects such as advanced metering infrastructure (AMI). Although a small percent of the participating customers have chosen to opt out (less than 1%) for various reasons, the vast majority are taking advantage of the information and making real changes that benefit both themselves in real dollar savings and the community as a whole by lowering our carbon footprint. With this success, the Electric Board believes the program should be allowed to run for the allocated 2 year plan. At that time the program should be evaluated for its long term effectiveness. Sustainability Scorecard The Electric Board provided feedback to the NRAB indicating support for creating a community sustainability scorecard that monitors a broad set of indicators. The Electric Board also suggested that the NRAB look at the Utilities’ 2008 Sustainability Report available at http://www.fcgov.com/utilities/gri.php. This report contains the 2008 GRI Sustainability Report. The format of the report is based upon a reporting format developed by the Global Reporting Initiative (GRI). The GRI is a network-based organization that has pioneered the development of the world’s most widely used sustainability reporting framework and is committed to its continuous improvement and application worldwide. Sustainability reports based on the GRI framework can be used to benchmark organizational performance with respect to laws, norms, codes, performance standards and voluntary initiatives; demonstrate organizational commitment to sustainable development; and compare organizational performance over time. The G3 Guidelines are the cornerstone of the GRI Sustainability Reporting Framework. In line with the GRI vision, it is recommended they be used as the basis for all of an organization's annual reporting. The Guidelines outline core content for reporting and are relevant to all organizations regardless of size, sector, or location. They are the foundation upon which all other GRI reporting guidance is based. The G3 Guidelines outline a disclosure framework that organizations can voluntarily, flexibly, and incrementally adopt. The flexibility of the G3 format allows organizations to plot a path for continual improvement of their sustainability reporting practices. The Utilities GRI G3 Indicator Index starts on page 36 of the 2008 Sustainability Report. This report summarizes economic, environmental and social performance indicators that apply specifically to efforts by Fort Collins Utilities. The Board also participated in the discussion of the following topics: • Water Treatment Facility Solar Array Project and Appropriation - Norm Weaver, Energy Services Engineer, presented information on plans to develop a 200kW solar electric system at the City's Water Treatment Facility. The system would offset about 7 percent of usage. - 5 - The facility is currently served by Xcel Energy, and electricity represents a significant cost component to operate the plant. Xcel Energy offers a Solar Rewards Program, and the site is eligible for substantial incentives for a solar project. Staff was interested in applying for QEC bonds to fund this project. The debt service would be in Light and Power's fund at a ten year term. Since this is the Water utilities' cost, transfers between the funds would take place. Board members were concerned about the City not receiving the carbon credit. The nonmonetary value of having it available as a unit for research and study was noted. The Electric Board recommended to City Council that they approve the project, and associated appropriations and bond issue for the installation of a 200kW solar array at the City's Water Treatment Facility. • Platte River Power Authority Organic Contract and Power Supply Agreement – Joe Wilson, Platte River General Counsel, reviewed the latest revisions to the language, which may bring the four partner cities into agreement on approving the Organic Contract (Contract) and Power Supply Agreement (Agreement). Mr. Wilson noted Platte River's intention to extend the current term date on the Contract from 2040 to 2050 for the primary purpose of public bond issues, which encompass a thirty year term. The Contract originated in 1975, and it also needs a language update at this time to more accurately reflect current business practices. The Power Supply Agreement is being updated for three reasons: 1) It is an all requirements agreement, and Platte River wants to change the terms to allow the four partners to create their own resources up to 1 percent of load; 2) Platte River wants to incorporate relevant provisions from the facilities agreement (transmission facilities from the late 1970s and early 1980s originally owned by the cities); and 3) Platte River wants to recognize the contractual terms under which power is purchased from Western Area Power Administration (WAPA). The Electric Board recommended to City Council that they accept the revised Organic Contract and Power Supply Contract. • Platte River Intergovernmental Agreement Extension - Utilities Customer and Employee Relations Manager Patty Bigner requested a Board recommendation related to an extension of the term of an Intergovernmental Agreement (IGA) between the Cities of Fort Collins and Longmont and Platte River Power Authority (Platte River). The IGA governs the operation of a joint Customer Information System (CIS) by Platte River for the two cities. An extension of one year is requested to resolve items related to the Utilities Privacy Policy and the Red Flag Rules of the Fair and Accurate Credit Transactions (FACT) Act. Lori Clements-Grote, Privacy Officer for Utilities, noted that Fort Collins Utilities first learned of the FACT Act rules a year and a half ago. Implementation deadlines have been modified by the federal government multiple times as utilities across the country come to terms with how to address and implement the requirements. Utilities are especially impacted because utility bills may he used to establish identity. Fort Collins Utilities has actively worked to establish procedures to support implementation of the requirements on behalf of our customers, including the formation of a Privacy Committee. The Electric Board recommended to City Council that the Council approve by resolution an amendment to the CIS Agreement with Platte River and Longmont extending the term of the current agreement to August 26, 2011. - 6 - • Northern Colorado Energy Star Grant Appropriation - Energy Services Manager John Phelan provided information on a grant appropriation and partner funds for the Northern Colorado Energy Star® Program. The Light and Power Fund has received a $50,000 grant from the Governor's Energy Office for this program, and our required match is $15,000. In addition, partner matches total $85,381 from last year and this year. The program is intended to promote the Energy Star® label on new home construction, and the funding spans through 2010 and the first half of 2011. Board members asked questions about how this program relates to the electric utility and how the funds will be spent. Mr. Phelan responded that Energy Star® homes are more efficient. The program is one foundational piece of our energy efficiency education. Utilities did a past study on code compliance in the community. The Energy Star® Program has developed into a regional collaborative partnership on efficiency efforts. Funds will be spent to hire a program coordinator to lessen the impact of the program on existing staff and to create marketing materials for builders and consumers. A web site component offers a map to show where these homes are being built and which builders are participating. Market data will be collected on participation levels. Eventually, the program is intended to be led by an organization of the funding partners and industry, not by Utilities. Utilities had traditionally been the City group to promote "above code" building. This aligns with the Energy Policy goals of improving the built environment. Realtors are part of our target educational audience. The Electric Board recommended that City Council approve the appropriation of the $50,000 in grant funds and a total of $85,381 in partner contributions. The Board further recommends that City Council authorize the transfer of $15,000 in existing appropriations from the operating budget to the grant project. • New Energy Economy Development (NEED) Grant Appropriation - Energy Services Engineer Norm Weaver presented the background for an Ordinance to appropriate grant revenue received from the State of Colorado Governor’s Energy Office (GEO). The grant totals $72,000 to conduct a pilot implementation of the “Carbon City Sustainability Information Management System” (SIMS). The pilot project will strengthen already budgeted initiatives for home and business energy efficiency improvements in Fort Collins and provide easier access to our customer data. Priority emphasis will be placed on confidentiality and security of data. The Electric Board recommended that City Council approve the appropriation of the $72,000 in ARRA/NEED grant funds for a pilot program to implement a sustainability information management tracking system. • Deep Energy Efficiency Program (DEEP) Application - Energy Services Manager John Phelan advised the Board of another grant application of significant size for the Deep Energy Efficiency Program (DEEP). The Department of Energy put out a funding opportunity for state energy offices to apply for, and Colorado’s GEO expressed interest in partnering specifically with Fort Collins on a whole building performance-based approach to energy efficiency. The program encompasses every type of initiative, such as technology, behavior around energy efficiency, etc. Medium-sized commercial and multi-family buildings are targeted for this program. Staff has been working to create mechanisms for the metrics for evaluation, creating and training workforce (contractors), and some innovative financing mechanisms which are transferable with the property. The total grant equals $4.8 million, of - 7 - which $3.8 million would be for Fort Collins and $l million set aside to replicate in other markets. FCU should feel honored to be part of this program if selected. • Colorado State University Permit Application for Service to Book Storage Building - CSU is in the process of constructing a second addition to the Book Storage Building at 203 W. Lake Street and was asking City Council to grant a revocable permit to allow CSU to provide electric service to the entirety of the Book Storage Building, including a new second addition. The Electric Board recommended to City Council that Council approve by resolution the grant of a revocable permit to Colorado State University (CSU) to cross Lake Street in the area shown in the survey provided, which permit shall allow CSU to provide electric service to CSU’s Book Storage Building at 203 W Lake Street. • Net Metering and Interconnection Standards Ordinance - Light and Power Manager Steve Catanach informed the board of a development related to an update to the document, Interconnection Standards for Generating Facilities (GF) Connected to the Fort Collins Distribution System. A concern was brought up to several Council members related to how Xce1 treats their customers who wish to connect distributed generation. The ordinance language will go to Council for first reading on January 19. IEEE (Institute of Electrical and Electronics Engineers) 1547 Standard for Interconnecting Distributed Resources with Electric Power Systems is the model for interconnection standards. However, IEEE standards do not address maximum level of distributed generation or undergrounded systems. Mr. Catanach reported two changes in this version of the interconnection standards: 1) The reference will be changed from IEEE 1547 to our standards, and 2) The language in Section 26-464, Section 6, (0) Net Metering, (i) (a) and (b) is changed to address the substantive language. Size of generation and the effect on the FCU system are both addressed in the FCU standards. Interconnection agreements are in place to trigger FCU to facilitate the highest level of renewable energy sources which can be successfully handled on the FCU system and to guide FCU on which scenarios require further evaluation. Board members discussed various scenarios which would trigger further evaluation of impact to our system. Cost shifting occurs in a commercial setting where the addition of a generation project overtaxes the system. Cost shifting does not occur in the residential setting. Board members also discussed whether all other customer-generators should share in such cost and how cost- sharing would be determined. The Board recommended to City Council to adopt the proposed terms and conditions for Net Metering Service, and also noted interest in monitoring any future problematic scenarios. • Smart Grid Investment Grant Project and Appropriation - Light and Power Manager Steve Catanach presented information on the appropriation of funds for the Smart Grid Investment Grant Project. The State has allocated $5 million in Qualified Energy Conservation (QEC) bonds. Staff anticipates moving forward with revenue bonds to raise the remaining $10.7 million in matching funds. A significant component of the project has been dedicated to the enhanced demand response program at a total cost of $5,478,197. This is an aggressive goal to manage such a large number of installations over this time frame, so staff is currently exploring other opportunities for demand response programs. The operational savings from the program are estimated at $3.9 million at a payback period of about 11 years. The enhanced demand response program will result in energy reduction and could achieve some - 8 - of the projects tied to Energy Policy goals. The water component is not part of the Smart Grid Investment Grant or meter project, but the Water Utility will derive a great benefit in security and communications. Staff will seek an appropriation from Council for the entire project. The funds will pass through the City of Fort Collins as administrator of the Department of Energy (DOE) grant. Staff will seek $33,842,764 in the appropriation, which is the figure without the matches from the cities of Loveland, Longmont and Fountain. In light of the $15.7 million DOE matching grant, the Electric Board recommended that City Council approve the appropriation of funds in the sum of approximately $33,842,764 for the Smart Grid Investment Grant project. Utilities Finance and Budget Manager Bill Freeman presented information on the funding options for raising the City's match for the Smart Grid Investment Grant project. Option 1: 100 percent bond financing through a combination of the QEC bonds and revenue bonds; Option 2: Rate increases in addition to the rate increase projections for the coming years; or Option 3: A combination of the two approaches. The City Council ultimately decided on Option 1 and the board was supportive of this decision. • Smart Grid Implementation Plan Key components of the Smart Grid implementation plan include the AMI, a Meter Data Management System (MDMS), a Customer Web Portal, and a demand response Management System. Key phases of the implementation plan will include installing smart meters; install the AMI; installing a head end computer system; connecting the MDMS; installing key information systems including a Customer Information system (CIS), Billing system interface, geographical information system (GIS) interface, and the Customer Management System (CMS); and finally coordinating the customer facing application. The preliminary schedule includes: November 2010: Issue the first RFP, January – February 2011: RFP response evaluation March 2011 – January 2012: Preliminary deployment activities October 2011- May 2012: Issue and evaluate the Equipment Installation RFP February – May 2012: Phase I – Install 4,000 electric and 2,000 water meters May - November 2012: Phase II – Billing test and mass deployment November 2012- June 2013: Phase III – Advanced Rates and continued mass deployment • Feed-In Tariffs - Mr. Catanach briefed the board on discussions related to Feed-In Tariffs (FIT). These represent a purchase power agreement between a generator and a utility to purchase everything that is generated, typically in 15-20 year term agreements. Pricing is set high enough to incentivize the generators. A model of a FIT program run by the City of Gainesville, Florida, was shared with the board. A FIT program must be re-funded every year. Programs currently implemented by Fort Collins Utilities in order to meet Energy Policy goals fall below our cost of wholesale energy. In relation to our carbon goals and in - 9 - looking at program costs per short ton of carbon, the average cost of programs in energy services is about $24/ton. A Feed-in Tariff for a rooftop unit using the Gainesville model costs $396/ton compared to our current strategies of energy efficiency programs at $24/ton and utility scale wind energy at $82/ton. Staff has determined this is not a feasible option for us to implement at this time, but we'll keep the option in mind for the future, as a successful approach for getting a lot of renewable energy on the ground in a short amount of time. This type of arrangement would not be allowed within the power supply agreement with Platte River and would have to be discussed with them. Platte River staff has indicated willingness to do so. • Asset Management Program Update - Utilities Asset Manager Chris Parton provided an update on the progress of the Asset Management Program. Strategic intent was defined at the outset of this initiative by identifying business drivers, service levels and best practices. Some activities are now underway in the program delivery phase. The water and wastewater utilities are the first area of focus, with Light and Power assets to follow next year. An effort to document processes and procedures is ongoing throughout all phases. Staff is assessing best practice ideas from other role model programs in order to build the best program for our Utility. FCU has sponsored viewings of the Liquid Assets documentary for customer education. It documents how water and wastewater infrastructure was built in this country at the turn of the century and provides a compelling vision for future needs. • Customer Satisfaction Survey - Lynn Adams, Vice President, Utility Business Consulting, with R. W. Beck, Inc. (Beck) provided a summary of the most recent customer satisfaction survey. The Utility solicits customer research every couple of years, and Beck has conducted this research on their behalf for a number of survey cycles. Major areas surveyed include reliability, responsiveness, assurance, empathy and tangibles. Fort Collins Utilities continues to serve as Beck's benchmark due to our world class ratings (over 80 percent A and B ratings). The shift in the overall grade from A to B for the Electric Utility from both residential and commercial customers would be something to monitor, as well as the score for "treating as a valued customer". It tracks consistently with the last survey, but this would perhaps be an area to study further. It was noted that the residential and commercial scores have always tracked together. After the 2007 survey, Utilities set out to consciously change customer expectations about our environmental consciousness. In the 2010 survey, there was perfect alignment, which indicates success in meeting this goal. The challenge will be to figure out how to maintain this indicator, expecting that as other factors change, such as the economy, it may regain importance to the Utilities’ customers. Renewable energy and conservation results relate to issues the Board has struggled with. Next time a rate increase is considered, it would be important to consider whether there has been any change in the ability of our customers to pay on time. This area provides an opportunity to bore into the residential and commercial results as it relates to converting more customers to be aggressive supporters of conservation even if a rate increase is necessary. Fort Collins is fortunate to have a customer base that is very willing to adopt conservation practices. This type of information can be collected by various methods, e.g. - 10 - internet survey panel. Related to this, two Utilities managers attended a utility affordability conference in June with hopes to discover tools and support systems to develop for customers who are struggling to pay their bills. Fort Collins is one of the leaders nationally and is benchmarked against prominent utilities, such as Austin Energy. Ms. Adams receives a number of calls from others who are interested in emulating Fort Collins' practices. The smart grid project and the amount of grant money Fort Collins has received speak positively to our performance. • Adoption of the 2009 International Code Changes with Local Amendments - Mike Gebo, chief building official with the City of Fort Collins, presented information to the Board on the 2009 International Building Codes (I-Codes). The International Code Council (ICC) represents one national body of code professionals with oversight over the national I-Codes, which were first published in 2000. Further, Fort Collins convened a 2009 International Code Review Committee in July 2009 comprised of developers, architects, builders, building and fire officials, and trades people. The goal of the Code Review Committee was to review the current Fort Collins amendments and significant changes in the 2009 I-Codes and to promote consistency by limiting the number of local amendments to the National Standard. Building codes are integrated with and cross reference each other, which is an important reason to synchronize and use the same code editions. The five proposed I-Codes include: 2009 International Building Code (IBC) 2009 International Residential Code (IRC) 2009 International Mechanical Code (IMC) 2009 International Fuel Gas Code (IFGC) 2009 International Energy Conservation Code (IECC) The current effort from both the ICC and a locally convened Code Review Committee sought to limit local amendments in order to promote consistency to the National Standard. The Building Review Board who hears violations to building code is very supportive of reducing the number of local amendments, as are local contractors. This will be the first time the City adopts all core I-Codes in the same version. This I-Code revision incorporates the latest advances in construction as a result of current events, e.g. the September 11 terrorist attack event led to recommendations for certain types of stairway marking. The Electric Board recommended that City Council adopt the five 2009 ICC codes (IBC, IRC, IMC, IFGC and IECC) with associated local amendments. • FY11-FY12 Budgeting for Outcomes (BFO) – Utilities Rate Analyst Bill Switzer and Ellen Switzer, Utilities Financial Operations Manager, provided an update on the 2011-2012 budgets and the Qualified Energy Conservation Bonds (QECBs). The City's rating on debt financing came in from Standard and Poor's at an AA- which is very favorable. QECBs would be used at the longest term of the financing package since they bear the lowest interest rate. A system average 6.5% electric rate increase is proposed for 2011. The rate increase will vary by customer class based on the results of a cost of service study conducted this year. The cost of service study determined the costs of providing electric service to each customer class. In order to mitigate large cost of service fluctuations, it is recommended that no customer class have a rate - 11 - decrease in 2011 and that no customer class should have an electric rate increase greater than 10%. Individual customers may see increases greater or less than the class average. A cost of service study was conducted this year to realign rates with the changing cost to service the various rate classes. As a result of this study, staff is not recommending an across the board rate increase. Instead, the recommended increase varies by rate class between 0% and 10% as follows: Residential Energy 10.0% Residential Demand 10.0% General Service 0.0% General Service 50 5.1% General Service 750 5.6% Traffic Signals 6.7% Floodlights 0.0% Average System Increase 6.5% The typical residential account will increase 10.1% from $54.43 to $59.94 or $5.51/month. Electric Development Fees are proposed to decrease between 1% and 3% in 2011. This is due to lower cost of materials and no increases in labor. Fees for a typical single family lot will be reduced to $3282 or a reduction of $83 (-2.6%). The model commercial development is reduced approximately -0.9%. The Electric Board recommended to the City Council that the Council approve the City Manager’s recommended 2011-2012 budget for the Light and Power Fund, the proposed cost of service-based 2011 electric rate increases, and 2011 electric development fee reductions. • Green Building Program - The Board reviewed the Green Building Program. The goal of an ongoing Green Building Program is to increasingly align Fort Collins’ built environment with community goals of reduced carbon emissions, reduced energy use and reduced water use. It was recommended that elements within some very new codes be integrated into the City’s existing building codes, rather than creating a separate Green Building code. Whole suites of voluntary, “above market” options are available, but would not be part of the minimum standards. Areas commonly included under the “green building” umbrella include: o Site and lot development o Resource efficiency o Energy efficiency o Water efficiency o Indoor environmental quality (healthy indoor air, thermal and visual comfort, acoustics) Operations and maintenance / owner education Rather than adopting a standalone “green building code,” the direction of this project has been to update the Fort Collins building code with “green amendments.” Staff has developed, through a comprehensive stakeholder process, two proposed packages of green building practices for adoption by Council: one each for residential and commercial construction. Staff has also identified several practices that are not part of the recommended packages but will be presented as options for Council feedback. - 12 - The green code amendments now under development are one key element of the overall Green Building Program. GB Program development will continue in 2011-2012 yet are dependent upon appropriate resources and will be focused on the following: o Implementation of the green amendments (training and enforcement) o Development of above-code incentive and recognition program elements for projects which demonstrate high performance outcomes. o Development of the metrics to track results related to the GB Program. o Review and consideration of green development practices and processes to augment the Land Use Code. • Green Building Program Advisory Committee (GBPAC) - Board Member Graham agreed to represent the Electric Board on the GBPAC. The Fort Collins Green Building Program is made up of four groups: City staff, the GBPAC, the TRACs (technical review advisory committees, e.g. contractors), and building officials. Groups will examine existing standard building codes to see how they can best be adapted for the City's use. Their goal is to prepare for Council approval early in 2011. • Noteworthy Recognition - The Light and Power Utility was awarded the Platinum Level of the American Public Power Association's RP3 (Reliable Public Power) designation on March 29 for reliability, safety and workforce development, and process improvement. FCU L&P received a perfect score in reliability. This provides a third party verification of our operational aspects. Of 164 municipal utilities, six to eight utilities achieved the Diamond Level (100 percent score). The Electric Board congratulates staff for receiving this honor.