HomeMy WebLinkAboutEnergy Board - Minutes - 07/10/2014Energy Board Meeting Minutes
July 10, 2014
1
Fort Collins Utilities Energy Board Minutes
Thursday, July 10, 2014
Energy Board Chairperson City Council Liaison
Greg Behm, 226-6161 Ross Cunniff, 420-7398
Energy Board Vice Chairperson Staff Liaison
Peter O’Neill, 288-4562 Steve Catanach, 416-2622
Roll Call
Board Present Chairperson Greg Behm, Vice Chairperson Peter O’Neill, Board Members Nick
Michell, Margaret Moore, John Graham, Stacey Baumgarn, Michael Doss, and Phil Friedman.
Staff Present Kevin Gertig, Steve Catanach, Lance Smith, Lucinda Smith, John Phelan, Paul
Sizemore, Harriet Davis, Katherine Martinez
Guests Fred Kirsch, John Bleem
Meeting Convened
Chairperson Behm called the meeting to order at 5:33 p.m.
Mr. Behm welcomed Katherine Martinez as the new board secretary and thanked Harriet Davis for
her tremendous support to the Energy Board over the past few years.
Public Comment
Fred Kirsch commented on the On-Bill Utility Efficiency Financing Pilot Program, which helps
landlords make their rental homes more energy efficient. Community for Sustainable Energy’s next
step is discussing ideas on how to motivate landlords to participate. The City of Boulder is requiring
all rental homes to meet certain levels of energy efficiency levels by 2019, and the group believes
Fort Collins should go a different way with market-based incentives and some requirements such as
having owners disclose whether their homes have had energy audits, and if so, what the scores are.
The ideas are geared to make the program as free and convenient as possible for landlords to
participate.
Approval of June 5, 2014 Minutes
A board member suggested one revision to the minutes on page 5, the second bullet point of the
Energy Policy discussion. Revise to make the subject plural: “The board members discussed the
categories of principles of the Energy Policy…”
Board Member Stacey Baumgarn moved to approve the minutes of the June 5, 2014 meeting as
amended with the addition of the “s” in “board member” as described above. Board Member Moore
seconded the motion.
Vote on the motion: It passed unanimously.
Energy Board Meeting Minutes
July 10, 2014
2
Staff Reports
Light and Power Operations Manager Steve Catanach gave an update on the Web Portal release.
Releasing it to 50% of the public on July 17, then release it to the other 50 percent a week later, to
prevent customer calls from overwhelming the call center. One issue for net metering customers
with solar arrays is the world portal doesn’t easily display the dollar value, although it still shows
net usage values. This will be fixed later by the manufacturer, Siemens.
Two issues the department has fixed are how the meters and Meter Data Management System
(MDMS) manage the data, and also eliminated year-end billing by hand.
Environmental Services Director Lucinda Smith reported that the memo and completed 2013
Climate Status Report was sent to City Manager Darin Atteberry and will be forwarded to the board
afterward. Council had first reading on an ordinance requiring grocery stores to charge 10 cents for
disposable paper and plastic bags. It passed on the first reading with a 5-2 vote. The second reading
would normally occur at the next Council meeting, but Council is postponing it until Aug. 19, when
it will be on the consent agenda.
A board member inquired how Council reacted to the item. Ms. Smith said council members have
received a significant amount of email from citizens who oppose the ordinance, as well as from
some citizens who support it. It’s split about 50/50. Staff is gathering info about questions the
public has raised, and will provide it to Council. Ms. Smith stated this issue is happening across the
U.S. and the world, and we have a unique approach in Fort Collins, in which the City stays out of
the revenue collection. She said other communities are interested to see how it works for Fort
Collins. The City charges the fee to grocery stores, half the money will be used to provide free,
durable bags to customers, businesses retain all the revenue, the burden on the City is decreased,
and the money goes toward the real issue, which is encouraging the public to use reusable bags.
A board member inquired how the issue is received by grocery stores. Ms. Smith stated they’re
surprisingly quiet on the issue. Senior Environmental Planner Susie Gordon has conducted multiple
outreach efforts to grocers. They seem to expect the ordinance to pass and have not been a strong
opponent to it.
Energy Services Manager John Phelan gave an update on the start of the demand response pilot
program on thermostats this summer. Approximately 170 meters have been deployed using the
demand response management system, and have successfully used it over the last several weeks
with just some minor issues such as communication to those customers before and after the event.
The pilot program is used to test the system and resolve any minor bugs before it’s offered to the
general public.
Introduction of New Executive Director Kevin Gertig
Executive Director Kevin Gertig, who has been acting as interim Executive Director for the past
few months, was introduced to the board. Mr. Gertig has been with City of Fort Collins Utilities for
32 years and has been in the field for 38 years.
Mr. Gertig gave an overview of his goals for the first 90 days, which includes reviewing the Energy
Board’s Work Plan. He is in the midst of the Budgeting for Outcomes (BFO) process; information
and the guiding document are on the City’s website. Much of what the Energy Board is working on
is involved in the process, including environmental sustainability efforts, energy reduction, and
greenhouse gas reduction. He stated that because Utilities is not part of the City in that it operates as
enterprise fund and operates as a business, it is even more important for Utilities to work closely
with the City on the BFO process to ensure alignment with the City’s core mission. Mr. Gertig said
Energy Board Meeting Minutes
July 10, 2014
3
everyone on the Utilities team must be involved in meeting the goal of reducing greenhouse gas by
80% by 2030 (with a baseline of 2005), and that it’s a balancing act.
Mr. Gertig also urged the board to think about the impact of that goal considering the commitment
of the power system, the relationship with PRPA, and other factors. He stated Utilities and the City
have a lot of strategic planning and work to do and that he’s not convinced by the models he’s seen,
nor is he convinced the public will accept huge increments in energy prices. He stated there are a lot
of challenges but none are insurmountable. Regarding water issues, the community must look as far
as eighty years into the future as it plans to meet its goals.
Mr. Gertig reviewed the current issues for Fort Collins’ four utilities: Water, Wastewater,
Stormwater, and Light & Power, and emphasized the importance of continuity of operations when it
comes to sustainability.
Highlights from the discussion:
A board member inquired how Utilities is ensuring alignment with other City departments.
Mr. Gertig stated he is a collaborator and participates in routine meetings with
environmental and sustainability staff members.
A board member commented we’re timid to charge more for high water usage. Mr. Gertig
said it’s time for a reality check. Preparing for the inevitable drought will require tenacity,
and clear communication and presentation of facts and choices.
A board member inquired whether the City will consider not issuing permits; it seems water
is self-limiting. Mr. Gertig stated developers are paying for water rights, on a pay as you go
basis, and the risk factor is the City doesn’t have a place to put water.
A board member inquired about a BFO offer for broadband communications. Mr. Gertig
stated many citizens want broadband and he is “absolutely” in favor of it; the City must be
dynamic to be successful.
A board member inquired about the likelihood of the City becoming net neutral. Mr. Gertig
stated he’s a big believer in case studies, and that the City needs to act sooner than later; he’s
in favor of the triple helix approach of working with the university and other experts.
A board member inquired about advanced metering infrastructure (AMIC) and mentioned
the tremendous support by citizens to protect and live with the Poudre River. Mr. Gertig
stated that staff and citizens must be highly involved, Natural Areas Director John Stokes
has presented the Poudre River Downtown Project, and that whatever is built or done around
the river will have consequences. The City must align with other departments, such as
Natural Areas and Sustainability departments, and the Colorado Division of Wildlife, to
overcome challenges.
Mr. Gertig stated the City has had a water quality database for three decades that he’s been
studying. He’s concerned about development pressures and the impact of increased use of
Poudre Canyon, such as detecting very low levels of DEET (from personal care products
such as mosquito repellant) at the mouth of the river. Mr. Gertig stated a comprehensive
approach (social, environmental, economic) in necessary to protect the river.
Energy Board Meeting Minutes
July 10, 2014
4
Platte River Fort Collins Demand Side Management Intergovernmental Agreement
(Attachments available upon request)
Energy Services Manager John Phelan presented the Agenda Item Summary for the
Intergovernmental Agreement (IGA) for Demand Side Management Program Partnership with
Platte River Power Authority, which will be on the August 19 City Council meeting agenda.
The City and PRPA have jointly funded DSM programs for residential and commercial customers
for 10 years. Platte River has been administering business programs, and the City Attorney and
Utilities Executive Director have decided an IGA is necessary have a formal structure in place. For
common programs, Platte River commits funding based on applications from customers, which
results in them committing Fort Collins DSM funding.
The IGA formalizes the joint funding of demand side management (DSM) (a.k.a. energy efficiency
and conservation) programs between the City of Fort Collins and PRPA. The IGA formalizes the
authority for providing additional funding through purchase orders, and is a join document between
Platte River, Fort Collins, Loveland, Longmont, and Estes Park.
Board Member Moore moved that the Energy Board recommends that Council adopt the Demand
Side Management Partnership Intergovernmental Agreement between the City of Fort Collins and
Platte River Power Authority. Board Member Friedman seconded the motion.
Highlights from the discussion:
A board member inquired what difference does it make to have an IGA? Mr. Phelan stated
that both entities have ramped up the programs and spent more time collaborating, PRPA is
committing City dollars, and that purchase orders will no longer be approved without an
IGA, per the City Attorney.
A board member inquired if there’s alignment with the other cities. Mr. Phelan stated yes,
attorneys for all five organizations are reviewing the IGA, and he stated that having the IGA
ensures predictability for customers. The IGA is expected to be finalized by all entities in
August.
A board member inquired if the IGA will help with ramping up efficiency programs. Mr.
Phelan stated it will help establish commonality that gives the City a larger market-base for
the trade allies that serve the customers, which is a tremendous advantage. A contractor
would be able to serve in all communities under the same program rules and structure. It
ensures the City’s ability to provide funding above and beyond what PRPA does.
Mr. Phelan also stated the IGA allows for flexibility in the process. For example, Fort
Collins started a retail lighting program, then handed it to PRPA, which extended the
program to four other cities.
Vote on the motion: it passed unanimously.
Board Member Stacey Baumgarn left the meeting after this agenda item.
Community Solar Garden Net Metering Rate Ordinance
(Attachments available upon request)
Strategic Financial Planning Manager Lance Smith presented a memo and PowerPoint presentation
on the Fort Collins Community Solar Project and the Virtual Solar Net Metering Rate Ordinance.
The City has signed a purchased power agreement with Clean Energy Collective (CEC) and is
working on a land lease to be signed by the end of August so that construction can begin and be
Energy Board Meeting Minutes
July 10, 2014
5
completed by the end of December. The CEC will lease, build, operate and maintain the solar
garden.
The intent is to expand small-scale renewable options for the benefit of Fort Collins Utilities
customers who do not have favorable sites for their own roof-top or ground mounted solar energy
systems. A rate must be established in order to market the project and sell shares. Participants
would receive monthly credits on their Fort Collins Utilities electric bill.
The proposed site of the solar garden is at the northeast corner of East Mulberry and Riverside
Avenue, site of the former Dreher pickle plant. The property belongs to the City of Fort Collins
Wastewater facility and Natural Areas, and agreements are being finalized for using the property as
a solar garden, which would provide up to 600 kilowatts of ground mounted solar modules. The
modules will harvest solar energy to supplement the energy grid. CEC will work with the City’s Art
in Public Places Program to investigate how the solar energy facility on this property can serve as a
visual gateway to the community.
An O&M trust will be established and funded by a $0.005 per kWh charge to the subscribers. CEC
is funding the trust by setting aside 9% of the production rather than lowering the per kilowatt-hour
credit to the customer. The net effect is that the per kilowatt-hour credit appearing on the solar
garden customer’s bill each month will be $0.0714. The trust will fund the lease, insurance, and
facility maintenance.
Mr. Smith stated Slide 5 contains the crux of the presentation, the difference between rates for
rooftop and solar garden customers. Both solar garden participants and rooftop solar customers
would receive credit for energy at the summer Tier 1 rate of $0.00583 per kWh. Rooftop solar
customers would also receive the full distribution facilities charge of $0.0262 per kilowatt-hour as a
credit. It is being proposed that the community solar garden participants would only receive half of
the distribution facilities charge as a credit. Rooftop solar customers could disconnect from the
energy grid and still power their house; solar garden customers would still require the grid to deliver
all their household energy, not just energy pulled from the system to augment their on-site solar
production, therefore they would receive half the credit for the energy distribution facilities.
Small commercial customers will also be able to participate in the solar garden, and would receive a
credit at the summer retail energy rate of $0.0403 per kWh plus half the distribution facilities charge
of $0.0187 per kWh, or $0.0094 per kWh.
Board Member Friedman moved that the Energy Board support the adoption of the Virtual Net-
metering Rate Ordinance being presented to the City Council for First Reading on August 19, 2014
with the rates presented to the Energy Board on July 10, 2014. Board Member Moore seconded the
motion.
Highlights from the discussion:
A board member inquired why CEC would tell the City what the credit should be since the
City is setting the rate, and thinks CEC would instead tell what amount of kilowatt hours is
generated by the customer’s share.
A board member inquired about the warranty of the solar array components. Mr. Smith
stated CEC will purchase insurance, which will be paid for by the O&M trust. Mr. Phelan
added that CEC’s maintenance of the site will include mowing.
Energy Board Meeting Minutes
July 10, 2014
6
A board member inquired about net metering on time of use. Mr. Smith stated he expects the
customers would be reimbursed for their energy production on peak at one rate and off peak
at a different rate.
Mr. Catanach stated that’s why the premium is used; a flat energy rate was used in the past,
then Utilities moved to tiered rates, so this brings it back a little, but still provides an
incentive.
A board member commented on the tremendous benefit for solar garden customers. Rather
than getting bids, working with installers, and managing maintenance of their own solar
panels, customer can use what is essentially a one-stop shop. If any problems come up, the
City calls the installer for repairs. Considering there are 1,900 modules on the U.S. market
and 400 inverters, it’s a daunting process for consumers to buy their own roof-top system.
The solar garden eliminates that.
Mr. Catanach stated the value for customers’ energy added into the distributed system is set
and the City is purchasing that energy at a higher than avoided cost rate. The City’s triple
bottom line philosophy includes social and environmental values, not just economics.
Mr. Phelan stated approximately 50 customers will be serviced by 300 kW for the first phase
of the solar garden.
A board member inquired how staff arrived at proposing half the credit for distribution
charge. Mr. Smith stated the reasoning is based on solar garden customers providing half the
intangible benefits to the distribution system. These customers will still require the
distribution system to deliver all of the energy needed at their residence but will be
providing distributed energy to the distribution system through the garden.
Chairperson Behm restated the motion that the Energy Board support the adoption of the Virtual
Net-metering Rate Ordinance being presented to the City Council for First Reading on August 19,
2014 with the rates presented to the Energy Board on July 10, 2014.
Vote on the motion: It passed unanimously.
* Board Members Friedman, Graham, and Michell abstained due to conflict of interest.
Addendum from Board Member Phil Friedman:
I was confused at the Thursday, July 10, 2014 Energy Board meeting regarding a potential conflict
of interest that I might have had regarding the community solar farm. I thought I had a conflict
because I have a PV system on my house. Rather, I believe the potential conflict might exist if I had
subscribed to the community solar farm, which I did not. I miscued on this. During a conversation
after the meeting, I realized that I did not need to abstain, since I had no conflict, real, or perceived.
Had I not made this mistake I would have voted for the community solar farm motion.
Energy Policy Work Session Debrief
Chairperson Behm stated the June 30 Work Session had quorum with five board members. Three
staff members attended. Board members had a productive conversation and discussion around a list
of questions they had compiled, but couldn’t take any formal action because it was work session,
not a regular meeting. Board members will compile their notes and share with the entire board for
discussion in August. Because formal decisions or actions are not allowed in a work session, it was
Energy Board Meeting Minutes
July 10, 2014
7
proposed to hold a special meeting after the Aug. 7 regular meeting to focus on the Energy Policy.
A Doodle poll on dates will be sent to staff and board members for the special meeting.
A board member inquired about the work session discussion on “measureable reduction” and
another board member clarified that the board is concerned about other kinds of pollution, not just
greenhouse gases.
Climate Action Plan (CAP) Citizen Advisory Committee Debrief and Discussion
(Attachment available upon request)
Environmental Services Director Lucinda Smith shared an update on the Climate Action Plan.
The Citizens Advisory Committee convened for the first time on June 12, with approximately 20 of
the 23 members and focused on introductions to each other and the Climate Action Plan (CAP).
They watched a welcome video by Assistant City Manager Bruce Hendee, then heard remarks by
Light and Power Operations Manager Steve Catanach, who pointed out that Fort Collins Utilities
and the community are national leaders in addressing climate issues. The committee then heard four
presentations: (1) An introduction to the CAP, (2) Rocky Mountain Institute’s Coreina Chan
presented the Stepping Up report (3) John Bleem’s presentation on Platte River Power Authority
(PRPA) and its integrated resource planning planning, (4) and The Brendle Group, as the
consultant, gave an overview of the CAP nuts and bolts. Facilitator Art Bavoso reviewed operating
agreement issues, and then the committee members engaged in brainstorming on guiding principles
for their work. A subcommittee of four members met later to further work on the guiding principles,
and will present a draft at the next meeting. Dates for future meetings were agreed upon.
Mr. Catanach commented on the value of having a skilled facilitator that kept the committee on
track and engaged. The facilitator served in the same role for the last climate task force
Ms. Smith stated that one of the committee members inquired about touring energy-related
facilities, including Rawhide Energy Station and CSU’s Foothills Campus Solar Array. PRPA and
Fort Collins Utilities have offered options for additional tours, and the City’s One Planet program
could also provide choices.
The next meeting is scheduled for July 23. In the interim, city staff has had opportunities to meet
with the Rocky Mountain Institute (RMI) on its scope of work and how it will facilitate the CAP
process. RMI has external funding for the project, and its role will be to call together national and
local experts to discuss strategies, focusing on the social mobilization of strategies, and financing.
Issues include how the committee will roll the CAP out to the community and how it will be
funded. Ms. Smith stated the project is close to finalizing an agreement with RMI to assist with the
process.
Fort Collins Utilities staff is also collaborating on CAP to create a robust public engagement plan
for CAP update. Community Engagement Manager Travis Paige and Public Relations Coordinator
Emily Wilmsen will assist with outreach to key stakeholder groups. The CAP info on the City’s
website will be updated and a CAC subpage will be added; both will occur within the next week.
Ms. Smith stated she would email the information and link to the board.
Mr. Catanach mentioned an intergovernmental agreement (IGA) with PRPA, which is using a
climate modeling system called Aurora. With the IGA, consultants will use data and set values to
for modeling that uses an hour-by-hour analysis over one year. The intent is having the proper
analysis to help people understand costs associated with this system.
Energy Board Meeting Minutes
July 10, 2014
8
Ms. Smith stated staff will do preliminary informal polling of the committee members next week on
their interest in metrics and will also provide the committee with an overview of the emissions
inventory and forecast assumptions.
Budgeting for Outcomes Memo to Budget Lead Team
Chairperson Behm stated that the City’s Budgeting for Outcomes (BFO) process is underway.
Hundreds of offers were received, so the board is seeking staff’s help with compiling a vetted list
for discussion. The list by Ms. Smith will provide the list for distribution to the board, which will
discuss the list at the Aug. 7 meeting, then send a memo to City Council (rather than to the Budget
Lead Team) regarding its recommendations. Council will consider budget offers in early
September.
Mr. Behm mentioned a change in the process for drafting memos, which was suggested by staff
based on the best practices of other City boards and commissions. Rather than drafting the memo
during a board meeting, the board chairperson and vice chairperson will take notes and draft the
memo themselves after the meeting, per the board’s decision and direction during the meeting.
Board Member Reports
Board Member Margaret Moore reported on her attendance at the Energy Summit today at The
Ranch in Loveland (coordinated by BizWest Media, publisher of Northern Colorado Business
Report), which focused on oil and gas and how it contributes to our economy. For example, in
Colorado energy prices are 23% lower than the average across the U.S., and it’s 5% of Colorado
jobs; a major portion of it is Weld County. The speakers emphasized this industry’s connection to
the local economy and the gross domestic product (GDP) for the state, and the impact a “no more
fracking” campaign would have on the industry and economy. Many sessions explained the new
technologies in fracking.
The gist of the summit was that communities should be able to obtain these resources in a
responsible way. Although residents don’t want fracking next door to them, speakers emphasized
recognizing the value, and discussion included variations in, and impacts of, setback radius.
Speakers talked about how devastating a 2,000-foot setback would be, versus 350 feet or 500 feet,
and that setbacks should be based on the local community’s needs rather than a statewide mandate.
Ms. Moore stated she missed the CAP CAC meeting because she attended another event. She is a
subject-matter expert on solar for non-residential buildings (apartments of more than four units,
commercial buildings, and “green” (high performance) buildings, etc.) and attended two panels, on
residential and non-residential buildings, coordinated by The Appraisal Foundation. The event’s
goal was to discuss best practices and help appraisers understand and value these higher
performance features that translate into benefits, and how people can educate themselves about the
issues. Ms. Moore stated she is planning to attend a photovoltaic (PV) solar two-day class. She
plans to share outlines with the board.
Board Member Phil Friedman shared two items. (1) Because he owns a PV system, he received a
letter form Utilities on change in billing system. He commented that the letter was well-written and
clear even to non-technical users, and thought the issue warranted such a letter. (2) He read an
excerpt from Solar Today magazine: Germany sets a record of using 74% renewable energy on May
11 of this year; electric power demand was modest and temperatures were a high of 57 F and a low
of 50 F; power demand peaked at 55 gigawatt (GW) at mid-day for the whole country, compared to
65 GW two days before. Mid-day power production by wind turbines averaged 20 GW, about 36%