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HomeMy WebLinkAboutWater Board - Minutes - 07/21/2011Water Board Minutes July 21, 2011 1 Fort Collins Utilities Water Board Minutes Thursday, July 21, 2011 Water Board Chairperson City Council Liaison Gina Janett, 493-4677 Wade Troxell, 219-8940 Water Board Vice Chairperson Staff Liaison Steve Balderson, 223-7915 Brian Janonis, 221-6702 Roll Call Board Present Chairperson Gina Janett, Vice Chairperson Steve Balderson, Board Members Becky Goldbach, Steve Malers, Duncan Eccleston, Lori Brunswig, Reagan Waskom, Brett Bovee, and Phil Phelan Board Absent Board Members Johannes Gessler and Brian Brown Staff Present Kevin Gertig, Jon Haukaas, Susan Smolnik, Steve Catanach, Jenny Lopez-Filkins, Robin Pierce, and Harriet Davis Guests Rose Brinks, James Brinks, and Craig Godbout Meeting Convened Chairperson Gina Janett called the meeting to order at 5:32 p.m. Public Comment Rose Brinks, a citizen from Greeley, expressed her concerns about the Water Board recommending Council grant easements to the City of Greeley for a water pipeline that crosses her property. The Water Board made this recommendation at the December 2010 meeting. Approval of June 16, 2011 Minutes Board Member Waskom questioned the following statement on page 9 under Committee Reports, “There was a 50 percent reduction in water use from before 2002 to after 2002.” A sentence will be added to clarify. Board Member Waskom moved to approve the minutes from the June 16, 2011 meeting as amended. Board Member Eccleston seconded the motion, and it passed unanimously. Board Member Balderson abstained from the vote due to his absence on June 16, 2011. Smart Grid Technology Update (Attachments available upon request). Light and Power Operations Manager Steve Catanach introduced the topic. Utilities is at a milestone point with the Advanced Metering Infrastructure (AMI) project. In the 2007/2008 timeframe, the City of Fort Collins adopted the Climate Action Plan with specific carbon reduction goals. The implementation of Smart Meters was part of this plan. Water Board Minutes July 21, 2011 2 In early 2009, Utilities hired R.W. Beck to study if AMI was a practical approach to achieve the goals. Advanced Meter Reading (AMR) provides one-way communication, whereas AMI provides two-way communication. Utilities can communicate with the meter to send information, reprogram, and update the meter if necessary. AMI also uses a communication card to speak to electronic devices within the home to notify the customer immediately of their usage. In 2009, this project was submitted as a budget offer to the City. As Utilities was going through the budget process, funds from the American Recovery and Reinvestment Act (ARRA) became available. Utilities had been working on a long-range Information Technology (IT) plan during the same time frame and identified everything in the plan concerning Smart Grid Technology and modernization of the infrastructure. Utilities submitted this information to the U.S. Department of Energy (DOE) for the grant application process. The entire project changed when Utilities was awarded the grant. The project was withdrawn from the proposed budget. In April 2010, Utilities went to Council for an appropriations request and Council approved the project. A $15.7 million grant was awarded. The total project cost is approximately $32 million. The water expenditure of $4 million came from the Water Fund. There was no water rate increase. Since that time, Utilities has hired a consultant to define the requirements for the system. Requests for Proposal (RFP) have been submitted for the meters and for a software system called the Meter Data Management System (MDMS). The new software is necessary because Utilities will receive several thousand data points per month when the new technology is implemented. The objectives for the Water Board presentation are as follows: • Update on Project Technology and Status • Discuss national hot topics (Price/Cost, Privacy, Health) • Discuss Customer Options • Discuss Broadband Communications Network Opportunities The system selected is called a Controlled Mesh Network. This network uses low power radios to transmit data. The meters communicate with one another until the signal comes to a device called a gatekeeper. The meters will reroute if the communication path becomes blocked. This provides a high level of reliability. Because it is a very robust network, Utilities anticipates that 99 percent of the meters will be communicating. The water meters will communicate with the electric meters. Mr. Catanach stated this may not necessarily happen within the same house. It may communicate with a neighbor’s electric meter. Board discussion: How many houses does a gatekeeper service? Mr. Catanach estimated that each gatekeeper will service approximately 2,000 homes. Is there redundancy within the gatekeepers? They will be designed with overlap. The adjacent gatekeepers will provide multiple paths and they will automatically redirect if the signal is lost. Mr. Catanach explained the concept of the Home Area Network (HAN). This includes consumer electronics and home energy management systems such as smart thermostats and in-home displays. Utilities is concerned about making large investments in ever-changing consumer Water Board Minutes July 21, 2011 3 electronics. This level of management systems will be available through retailers such as Home Depot and Lowes so the consumer can choose the level of interface they would like in their homes. The HAN is connected to a Neighborhood Local Area Network (NLAN), which is made up of the meters, this is similar to wireless devices connected to a router in a home. Information is moved from the gatekeepers to the Distribution Wide Area Network (DWAN). This is a high- speed network of radios where the gatekeepers “dump” information. The information is then transferred to Elster’s EnergyAxis Management System (EAMS) software, where data information is taken from the meter and sent to the MDMS. Status: Project Schedule Utilites has selected Elster, Inc. as the Advanced Metering Infrastructure vendor. Elster has been making meters for more than 170 years. One of the criteria for the selection process was that the vendor had experience with servicing a city at least as large as the City of Fort Collins with both water and electric infrastructure. Utilities interviewed five of the nine applicants. There are approximately 17 million AMI meters deployed in the United States. Siemens has been selected as the MDMS vendor in partnership with eMeter. Utilities will choose a deployment contractor vendor to install the meters. 4,000 electric meters and 2,000 water meters will be installed starting in February 2012. The communication system and the software will then be tested. Once this information is verified, Utilities will move to mass deployment of the meters. It will take about a year to install the planned 100,000 meters. Utilities expects to be fully operational by Second Quarter 2013. Board discussion: Are labor costs a big part of the costs associated with the project? Mr. Catanach stated the technology costs are the largest component. What about specifications associated with the changes in technology and the path forward? There are multiple communication solutions offered with the AMI system and appropriate applications. The Point-to-Point system is one option that uses a stronger radio that communicates to one of the substations. The mesh technology was attractive because of the low radio power usage. Some solutions use a wireless network. Utilities does not expect total standardization of the system. The meters have the capability for flash upgrades. Utilities is concerned about the home electronic capability; however, Mr. Catanach feels these issues can be addressed. Will both the electric meter and water meter be installed at the same time? Will the installers have inside access to the home? Utilities has not chosen the location for the first set of meters. Water Engineering and Field Services Operations Manager Jon Haukaas stated there are almost 34,000 water meters serviced by Utilities. 7,000 of these meters are inside the home. Utilities is currently working on a wiring connection to the outside of the home and is using some small radios where there is no access to wiring. This is used more often for commercial installations. There is a need to make sure the meter and register are compliant. It will be necessary for the meters to be visited again to upgrade the communication component. Water Board Minutes July 21, 2011 4 Water meters are physical and mechanical objects that need to be cleaned or replaced over time. Is the technology an add-on feature so the whole meter does not have to be replaced? Yes. Can you still use the body of the existing water meter? Mr. Haukaas stated the majority of the meters are upgradeable. Some of the registers are mechanical and are being upgraded to electronic. Utilities has had a plan in place to upgrade the meters for quite some time. The plan is being accelerated as part of the AMI project. Mr. Catanach stated Utilities will also select a web portal vendor to design the software and customer interface so customers can receive more timely information to make decisions regarding usage. There is also the potential for wireless communication through other media such as iPhone applications and text messages. Has anyone developed software to turn off irrigation systems remotely? Not yet, there are markets for this kind of technology. The potential exists for different levels of usage for the consumer to program to manage their usage. Are there shutoff valves on the water service lines to every house? Yes, but they are not connected to the network. They are manually controlled. Mr. Haukaas stated this technology can be utilized to detect leaks or theft within a home if there is a spike in water usage. It is not a full-system leak detection, but can be utilized to put flags in the system if necessary. Mr. Catanach gave an update on Phase 3 of the project schedule, stating that since the Home Area Network devices are the most rapidly changing component of the project, they were placed towards the end of the project timeline. Utilities is also collaborating with the DOE on a consumer behavior study and will report data to the DOE for two years after the project ends. Issues: Price/Cost In 2009, Utilities presented a positive business case concerning the proposal. Utilities' technical consultant, Enspiria, reviewed this at a very high level and feels confident it is a valid business case. Mr. Catanach noted there have been several complaints from residents in California and Texas expressing concerns with inaccurate bills. California Public Utilities Commission did shut down Pacific Gas and Electric’s (PG&E) meter project and required them to hire an independent testing facility to test the meters. That laboratory found the meters accurate and PG&E’s customer relations very poor. The meters were installed during the middle of summer and after a rate increase. Utilities is aware of inaccurate meters. To mitigate these types of concerns, Utilities will replace the older meters that are likely to produce inaccurate readings before the project begins. Is it fair to say that if a resident were savvy enough with consumer products, that the infrastructure is giving the feedback so the consumer could monitor their usage? Was it only a cost study from a Utilities standpoint? These are classified as intangible benefits. Utilities does anticipate a reduction in labor (less meter readers). Utilities has received an exception to the City's education policy regarding training the meter readers for other positions. Water Board Minutes July 21, 2011 5 Mr. Catanach stated the meters open the opportunity for new rate forms. There is a time value of electricity since it is not possible to store electricity. During the peak hours, the power is more expensive. These meters allow Utilities to do rate forms that reflect the real costs. Mr. Haukaas stated Utilities can do more demand forecasting to take advantage of labor, energy, and chemical savings with larger customers. Is there currently an existing system to see the current usage? This technology exists for the 500 largest customers. What is the current time of day for peak water usage? Water Resources and Treatment Operations Manager Kevin Gertig stated the highest usage used to be between 5-8pm, but this has changed in recent years as a result of customer education and outreach programs. During the early 1990’s, customer usage was between 65 and 70 million gallons per day. This type of usage has decreased in recent years. Will there be cost savings for the wastewater treatment plant? Mr. Gertig stated because of the new environmental regulations, there may be an inverse result due to an energy usage increase. A board member stated there should be a benefit to public relations and public outreach programs concerning the project. Mr. Catanach stated this is part of the project and Utilities may offer incentives as well for home energy management systems. Also, focus groups will be utilized for a consumer behavior study. How useful is the system to residential customers versus commercial customers? Mr. Haukaas stated Utilities needs to know as much information concerning usage to fully optimize the system. There needs to be full inclusion with the system. There is an environmental benefit concerning energy and carbon savings, as well as a sustainability advantage. The level of benefit is up to each individual customer. Utilities desires to provide the information. It is up to each customer to decide how they want to use it. Is there another community in Colorado who could be considered a project peer? Fort Collins- Loveland Water District (FCLWD) has had a point-to-point system in place for more than a year. Poudre Valley Rural Electrification Administration (REA) is approximately six months into electric advanced meter deployment. Cheyenne, Wyoming is approximately three months ahead in their project. Pueblo, Colorado is approximately a year ahead in their project. Issues: Privacy and Security Utilities adheres to strict policies regarding the protection of customer information and follows federal regulations such as the Red Flags Act and the Fair and Accurate Credit Transactions (FACT) Act. Utilities also follows the Colorado Open Records Act. Information is not released until permission is granted by the customer. Information is given to law enforcement as applicable, but only through a high-level formal request through the Utilities Privacy Committee. Utilities has very solid internal policies concerning the release of customer information. Mr. Catanach explained the security features concerning the physical meter. Utilities did an evaluation as part of the project to determine the value of the data. The system to be installed is low risk, low level data. The meter will broadcast information about the health of the meter, kilowatts, kilowatt hours, voltage, and a premise identification which identifies the location of Water Board Minutes July 21, 2011 6 the meter. An encryption key will be necessary to transmit the information to Utilities. Unlike a typical network, the meter broadcasts six times a day for 1.5 seconds each time, and the encrypted information will not have much value to a potential hacker. Because of the potential concerns with data transmission, Utilities has a strong commitment to cyber security. *** Board Member Waskom departed at 6:30 p.m. What is Utilities' attitude concerning the release of data used for research purposes? Information may be released in aggregate as a whole. Utilities will not release information relating to individual customers or personal information. Are there consumer devices available that allow a customer to log in and look at data online such as systems similar to reviewing a credit card bill online? Yes, this technology is available. Information can be tailored for varied customer interests such as financial or environmental interests. Issues: Health Mr. Catanach stated that concerning the health effects from Radio frequency (RF) electromagnetic fields, the levels are much less than those from devices such as cell phones, microwaves, wireless routers, and cordless phones. Utilities is working with Dr. Bruce Cooper from the Health District of Northern Larimer County to provide an independent and informed risk communication to the community. Dr. Cooper feels very confident that the risk from the meters is almost non-existent. Customer Options Utilities is offering a set of customer options as a result of the concerns listed above: Option 1: A standard mode with full functionality so Utilities and the customer can reap the maximum benefits. Data will be transmitted 4 to 6 times per day via a 1.5 second signal and collected in 15 minute or one hour intervals. This mode creates optimal performance. Option 2: A limited mode with lower functionality. Data is collected only once per day; however, data will still be transmitted 4 to 6 times per day. This option may include customer costs to program the meter. Specific costs are under development. This mode collects data less frequently and on a less detailed basis. It also limits customer benefits and adds costs, as well as diminishes the ability to support the Energy Policy. Option 3: A manual mode with minimal functionality. The meter will be read manually once per month. This option will include customer costs for manually reading the meter. Specific system and customer costs are under development. Automatic data transmission is disabled. This mode requires a monthly service call, limits customer benefits, and adds costs. It also diminishes the ability to support the Energy Policy. Tropos Network Opportunities Mr. Catanach stated one of the potential benefits is a mobile workforce application. Currently, crews have to travel back to the Utilities Service Center to update their maps, etc. This type of network has the potential to eliminate that need. It also has the potential for future applications such as supporting a project •for cameras on signal lights and the ability to communicate with vehicle charging stations for electric vehicles. The network could also be expanded to support the Bus Rapid Transit (BRT) Corridor project. A board member questioned the typical installation for the wireless meters. Mr. Haukaas stated there are limitations on the water meter because they have to be battery operated. The batteries will need to be replaced at some point. It can only transmit to the electric meter, not to the streetlight pole. Mr. Catanach stated there is a requirement included in the specifications that the water meter can be hardwired to the electric meter for a power supply. There are issues with this because the electronic registers would be submerged. Are there flowmeters 01? the distribution system? Mr. Haukaas stated this is not currently part of the project scope. It is not very economical to have this in place. Committee Reports There were no committee reports for the month of July. Staff Reports Monthly Water Resources Report Water Resources Manager Dennis Bode provided this report. Chairperson Janett noted the unusual runoff depicted in the last graph. Mr. Haukaas stated there has been a high and slow constant runoff because of the wet weather pattern. Other Business Water Board Member Manual Biographies Chairperson Janett requested that perhaps the original applications submitted to the City Council could be included in the member manuals instead of a separate bio. Adjournment The meeting was adjourned at 7:03 p.m. Submitted by Harriet Davis, Administrative Assistant, Fort Collins Utilities Approved by the Board on 1 , 2011 Signed: g i ii Board Secretary Date Water Board Minutes 7 July 21, 2011