HomeMy WebLinkAboutElectric Board - Minutes - 02/02/2011Fort
Collins Utilities
Electric
Board
Minutes
Wednesday,
February
2,
2011
Electric
Board
Chairperson
City
Council
Liaison
Steve
Wolley,
288-0317 Lisa
Poppaw,
223-4136
Electric
Board
Vice
Chairperson Staff
Liaison
Edward DeCourcey,
206-9996
Brian
Janonis,
221-6702
Roll
Call
Board
Present
Board
Members
Tom
Barnish,
John
Harris,
John
Graham, Peggy
Plate,
Ed
DeCourcey,
and
Steve
Wolley
Board
Absent
Vice
Chairperson
Steve Yurash
Staff
Present
Steve
Catanach,
Ellen
Switzer,
Robin
- Page 2, related to a letter campaign received by the Mayor. The sentence will he
changed to read “Most of these citizens were part of a group who favor tiered rates
and believe they could be implemented immediately without any further investment
and would provide immediate carbon reduction.”
- Page 2, related to the insulation requirement for electric heat properties. The sentence
will be changed to read, “Staff will recommend a more rapid implementation
schedule for the electric heat amendments than the other Code amendments.”
It passed unanimously.
Monthly Financial Report
(Presentation avail able upon request)
Utilities Financial Operations Manager Ellen Switzer presented the unaudited Monthly
Financial Report. Figures exclude depreciation and grants. Operating revenues represent
revenue from meter reading activity.
Board discussion:
Key Financial Results:
How does the Southwest Annexation cost match up wit/i the amount budgeted? Board
members would like to see this in/uirination included each month. A portion of the —4.8
percent variance for capital additions relates to less cable replacement than anticipated, as
well as various project management decisions.
Is it an issue for the Utility to not spend capital money? Revenue and expenditures have
been identified and should balance. The budget for the last few years has included a loss
in order to draw down the reserves.
There are two types of capital budgets: lapsing (if not used in the year, lapsing funds are
not available to spend the next year, but do go into reserves) and non-lapsing (the funds
stay with the life of the project).
It was noted that electricity use increased in 2010 by 1.5 percent, and the question was
asked about how this corresponds to the Energy Policy effIciency goal of 1.5 percent.
Without clarification, it appears one of the Energy Policy goals is being violated. The
Energy Policy efficiency goal is to target program savings of 1 .5 percent of the
community’s electricity use each year. Depending on the rate of electricity growth due to
other factors, the efficiency savings will reduce the use hut not necessarily result in an
absolute decrease (e.g., without the efficiency programs, the growth in 2010 would have
been 3.0 percent).
Energy and Demand by Month:
Planning Engineering Manager Bob Micek uses this inft)rmation to report to Platte River
Power Authority. It was suggested to nornialize the amimiual peak demand by reflecting
average temperature; there is interest in seeing how mnu(h it flu(Iuates over lime.
Electric Board Meeting Minutes 2
February 2, 2011
Operating
Revenue:
In
2010,
operating
revenue increased
11
percent
from 2009
due
to
a
7.4
percent
rate
increase
and
increased
kWh
sales
in
the
residential
class.
Non-Operating
Revenue:
This
type
of
revenue
includes
the
sale
of
equipment
and
parts,
repair
of
damaged
equipment,
and
interest
income.
1-low
are
grant
revenues
tracked?
They
are
only
available
for
the
grant
projects,
so
it
is
Staff will round to boards and commissions through the month of February. More
information can be obtained by visiting www.fcgov.com/gbp.
Board discussion:
Was there consideration at making these amendments voluntary rather than codifying
them? Staff noted there was a lot of discussion around this. Staff proceeded to develop
those things which represent minimum standards and make sense to codify.
Does staff consider some of the example codes iisedfr comparison to be revolutionary
or evolutionary? Mr. Lee, as a code official, was initially supportive of the two sets of
standards in the marketplace until closer examination. He views this change as
evolutionary.
Did the City and stakeholders examine whether this would prevent developers from
coining to Fort Collins? Staff discussed this factor and determined this is not a big
driver, compared to other costs such as infrastructure. This is not viewed to be a strike
against new business.
How does this apply to the upgrade to Foothills Fashion Mall? If an addition was added
or major systems were being changed out, it may come under some of these code
changes. However, when the footprint does not change, a project would normally not be
subject to these amendments.
Six to tit’elve-mnonth lead times and bureaucracy in Fort Collins would be j,rohibitive
when developers can go elsewhere and build much quicker. Mr. Phelan noted planners
would counter that people want to live and develop here for the very reason of our high
standards. Energy Services and Development Review are both investing time with our
community contractors to teach them how to get through the planning and permitting
processes.
A board member expressed concern that adding these products puts a home with these
upgrades out ofa lot ofpeople ‘s reach (financially). One of the only remaining entry—
level residential builders in the community would see no cost increase from these
amendments. This builder already incorporates these measures in their products.
What were the biggest issues brought forward by stakeholders? Issues varied between the
residential to commercial groups. “Greening our code” in comparison to adopting a
green building model code was the biggest challenge for the residential group. The
commercial group was concerned about the practicality of enforcing these changes and
implementing the program.
Electric Board Meeting Minutes 4
February 2, 2011
Motion:
Board
Member
Graham
moved
that
the
Electric
Board
recommends
the
proposed
building
code
green
amendments for
residential
and
commercial
construction
to
be
integrated
into
the
City’s
existing
building
codes.
Vice
Chairperson
DeCourcey seconded
the motion.
Vote
on
the
motion:
5
for;
I
against.
Reason
for
nay
vote:
Board
Member
Barnish
voted
against
the
motion
out
of
concern
that
it
will
cost
the
Board
members
expressed that
the
driver
ftr
Utilities
should
be
the
lowest
(051
to
the
ratepaver.
Additionally, Utilities
are
usually
required
by
the
Public
Utilities
Commission
to
use
a
“least cost”
method
when
justifying projects.
Staff
will
provide
a
comprehensive presentation
to
Council
in
late
February.
If
they
move
toward
full
consideration
on
the
option,
staff
will
bring
this
to the
March
2
board
meeting for
a
recommendation.
Routine
Updates
Platte
River
Power
Aiithoriti’
(Board
Member
Yurash): Mr.
Catanach
noted
rate
structures
will
be
discussed
in
February.
Capitol
News
(Chairperson
Wollev):
1)
Least
cost
planning
bill:
regulated
utilities.
2)
Reduce
energy
costs
for
Colorado consumers
bill
(rollback
of
the
State
RPS
back
to
2006
levels).
Green
Building
Program (Board
Member
Graham):
Nothing
additional
to
report.
Staff Reports
Prior
to
the
last
meeting,
staff
was
waiting
on
responses
for
the
Meter
Data
Management
System
(MDMS)
and
Automated Metering Infrastructure
(AMI)
Request
For
Proposals.
A
staff
group
has
worked
to
filter
the
responses against minimum requirements
for five
AMI
and
four
MDMS
proposals
and
finalize
candidates
to
the
top
two
or
three
to
bring
in
for
all-day interviews.
The
goal
is
to
select
a
vendor
by
mid-March.
Mr.
Phelan
shared
some early
results
on
the
energy
efficiency
programs.
The
home
energy
audit
is
seeing
strong
participation
by
the
community,
with
about
35
contractors
on
our
list.
Home
electricity
reports
also
performed
well.
Other
Business
None
Future
Agenda Items
None
Adjournment
The
meeting
was
adjourned
at
8:22 p.m.
following
a
motion
to
adjourn
by
Board
Member
Plate.
Submitted
by
Robin Pierce,
Utilities Administrative
Services
Supervisor
Fort
Collins
Utilities
Approved
by the
Board
on
779
alt
C
A
,
2011
Signed
LRO
&
P
1
eQ
3/
3/
0/)
Board
Secretary
Date
Electric
Board
Meeting
Minutes
6
February
2,
2011
community
too
much.
Board
Member
Graham
recognized
the
effort
put
in
by
staff
to
develop
this.
2009
Global
Reporting Initiative
(GRI)
Report
(Presentation available
upon
request)
Light
and
Power
Operations Manager
Steve
Catanach introduced
the
2009
GRI Report
for
Fort
Collins
Utilities.
In
2007,
Utilities
began
an
initiative
to
address
the
challenges
facing
them, such
as
aging
workforce, aging infrastructure,
controlling
operational
costs,
and
addressing
regulatory
changes.
The
purpose
of
the
GRI
report
is
to
identify
our
leadership
challenges
and
successfully
meet
those
in
order
to
provide
a
sustainable
utility
to
our
customers.
With
this
year’s
report,
our
reporting
level
was
advanced
to
a
“B”
level
to
provide
additional
reporting
about
how
we
use
these
principles
to
make
management
decisions
and
to
commit
to
further engaging
our
stakeholders.
The
process
commits
us
to
move
forward
with
many
initiatives
and
provides
pertinent
benchmarking
criteria.
Fort
Collins
Utilities
was the
first
municipal
utility
in
the
world
to
submit
a
report
to
the
GRI.
The
Electric
Board serves
as
one
of
our
reporting
mechanisms.
Board
members
were
asked
to
provide
feedback
on
the
report
by
sending
their comments
to
Chairperson
Wolley
before
the
March
2
meeting.
The report
provides
a
lot
of
context
for
our
operations,
our
basic
services,
impacts (both
positive
and
negative)
on
the
community,
our
workforce
as
an
asset,
and
how
we
make
decisions
and
identify our
challenges.
The
report
is
targeted
to
customers.
To
view
the
report
online:
www.fcgov.com/utilities/gri.
Please
submit
any
questions
or
suggestions
by
late
March
to:
Katy
Bigner,
Environmental
Planner
(Utilities)
kbigner@fcgov.com
970-221-6317.
American
Public
Power
Association
Metrics
Mr.
Catanach suggested pending
this
topic
to
a
future
meeting.
Feed-In
Tariff
Study
Mr.
Catanach reported
that
the
City
made
the
decision
to
look
at
the
economics
of
a
feed-
in
tariff
program
in
response
to
interest
in
the
community.
To
encourage
solar
generation,
a
“three
times”
multiplier
is
included
in
legislation
to
put
it
on
equal
footing
with
the
cost
to
buy wind energy. Funds
of
$500K
are
budgeted
in
each
of
years
1
and
2,
resulting
in
an
overall
1
percent
rate
increase
and
adding
3.5
megawatts
(MWs)
on the
system.
If
we
take
the
full
financial
benefit,
anticipating
all
future
renewables
needed
to
support
a
Renewable
Portfolio
Standards
(RPS)
program,
Mr.
Catanach
estimates
1MW.
Electric
Board
Meeting
Minutes
5
February
2,
2011
tracked
with the
project
and
not
in
the
budget.
Capital Projects
(non-lapsing
budgets):
Board
members
requested
total
project
cost
comnpa
red
to
budget.
2010
Total
Revenue
Compared
to
Expense:
Purchase
power
represents
70-80
percent
of
our
total
expenses.
Board
nzembers
would
like
to
see
the
top
three
items
that account
/r
the
reason
why
we
caine
in
under
budget.
2010 Summary:
Additional
appropriations
approved
by
Council
are
required
if
for
over-budget
expenditures.
Contingency
funds
for
unexpected
events
are
placed
in
one
line item
of
the
budget
for
ease
in
keeping
track
of
them.
Ms.
Switzer
thanked board members
for
their
suggestions
and will
incorporate
the
suggested changes
to
future
reports.
Building
Code
Green Amendments
(Presentation
available
upon
request)
Green
Building
Code
Project
Manager
Felix
Lee
and
Energy
Services
Manager
John
Phelan
presented
this
topic
to
the
Board.
Council
directed
staff
to
develop
mandatory
building
code
green
amendments
to
be
integrated
into
the
City’s
existing
building
codes
for
residential
and
commercial construction.
Council
will
consider
the
proposed
“green”
amendments
to
the
Fort
Collins building
code
at
their
March
1
and
March
22
meetings.
The
substance
of
the
proposed
amendments remains
the
same
since
staff
provided
an
update
to
the
Board
at
the
Dec.
1,
2010,
meeting.
Refinements
to
the
proposal
since
that
time
include:
-
Low-Volatile
Organic
Compound
(VOC)
materials:
cabinets
excluded;
-
Daylighting
deleted;
-
Occupancy
lighting
controls
in
defined
spaces;
-
Tropical
hardwood
certification;
and
-
Special
provisions
for
electric
heat
buildings
(increase
envelope
insulation
requirements).
The
Board
received
a
comprehensive
benefit
and
cost
summary.
The
benefit-to-cost
ratio
is
represented
as
one
year
of
construction
(residential
and
commercial)
with
quantified
elements
only
at
a
0
percent
utility inflation
rate,
costs
totaling
$1
.76
million,
and
benefits totaling
$2.23
million.
Benefits include
carbon
reduction,
utility
savings,
building
valuation, health
and
productivity,
and
economic
impact
on
the
community.
Mr.
Phelan
explained
the
concept
of
economic
multipliers.
Electric
Board
Meeting
Minutes
3
February
2,
2011
Pierce, Tom
Rock,
Kraig
Bader, Katy
Bigner,
Jenny
Lopez-Filkins,
Patty
Bigner,
John
Phelan,
and
Felix
Lee
Guests
Rick Coen
Selection of
Board
Member
to
Chair
Meeting
Due
to
a
vacancy
in
the
Chair
position
and
the
absence
of
the
Vice
Chairperson,
Board
Member
Wolley
was
selected
to
chair
the
meeting
by
majority
vote
(Reference: Electric
Board
Bylaws,
Article
III,
Section
6).
Meeting Convened
Board
Member
Wolley
called
the
meeting
to
order
at
5:32 p.m.
Public
Comment
None
Officer
Elections
Board
Members
Wolley
and
DeCourcey
received
nominations
to
serve
as
Chair
of
the
Board.
Board
Member
Wolley
was
elected
by
a
vote
of
4
to
I
(Wolley abstained).
Incumbent
Vice
Chairperson
Yurash
and
Board
Member DeCourcey received
nominations
to
serve
as
the
Vice
Chair
of
the
Board.
Board
Member
DeCourcey
was
elected
by
a
vote
of
4
to
2.
Approval
of
January
5,
2011,
Minutes
Board
Member
Barnish moved
to
approve
the
January
5,
2011,
minutes
with
the
following modifications.
Board
Member
Graham seconded
the
motion.
-
Page
1,
related
to
Plan
Fort
Collins. The
sentence
will
be
changed
to
read,
“If
significant changes
are
made
by
Council,
staff
will
bring
those
changes
back
to
the
Board
for
additional
comment.”
Electric
Board
Meeting Minutes
February
2,
2011