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HomeMy WebLinkAboutElectric Board - Minutes - 11/15/2010Fort Collins Utilities Electric Board Minutes Monday, November 15, 2010 Electric Board Chairperson City Council Liaison John Morris, 377-8221 Lisa Poppaw, 223-4136 Electric Board Vice Chairperson Staff Liaison Steve Yurash, 226-4248 Brian Janonis, 221-6702 Roll Call Board Present Chairperson John Morris, Vice Chairperson SteveYurash, Board Members Dan Bihn, John Graham, John Harris, and Tom Barnish Board Absent Board Member Steve Wolley StaffPresent Steve Catanach, Tom Rock, Robin Pierce, John Phelan, Kraig Bader Guests Meeting Convened Chairperson Morris called the meeting to order at 5:34 p.m. Public Comment None Approval of October 6, 2010, Minutes Approval of the October 6, 2010, minutes passed unanimously with no corrections. Recognition of Dan Bihn’s Service to the Board On behalf of Fort Collins Utilities staff, Light and Power Operations Manager Steve Catanach thanked Dan Bihn for his seven years of committed service to the Electric Board. He voiced appreciation for Dan’s probing questions in an effort to move the conversation forward. His insights were invaluable in the development of the first Energy Policy and its first revision. Board Member Bihn thanked everyone and noted it’s been great to work with this group of board members and Utilities staff. Smart Meter Fort Collins Project (Presentation available upon request) Mr. Catanach provided an update to the Board on the smart grid project, now referred to as Smart Meter Fort Collins. A cyber security oversight committee has been established to identify those elements critical to the hid and the Meter Data Management System (MDMS) implementation. Also, subject matter teams of 3-4 people will be formed to do in-depth reviews of the Request For Proposals (RFPs). Staff anticipates receiving a very large proposal document from 10-20 respondents. Electric Board Meeting Minutes November 15, 2010 Board discussion: IfMDMS goes off4ine, will customers still have electricity? Yes. Meters will store up to 45 days’ worth of data. In a worst case scenario, a workforce would be pulled together to read meters. Board Member Graham recoinmendedannouncing the date business will he awarded. Then a week in advance, staffshouldsend e-mnails to vendors identif’ing their specific areas of weakness. He anticipates most vendors will adjust their bid based on this information. A question was raised about the timing of negotiating with equipment installation vendors be/bre the self -installation of the 4,000 electric and 2,000 water meters. Board Member Yurash recommends doing the negotiation after the self4nstallation if it fit.c in the overall time frame so staffhas the opportunity to work with the vendor on any issues uncovered during selfinstallation. Mr. Catanach will discuss this change with our technical consultants, Enspiria Solutions. Board JVlemnber Graham fbllowed this thought by recommending staff install only 50 of each meter as a test prior to the negotiation. A field proof and lab proof of test are not reflected in this schedule. Standards Engineering Manager Kraig Bader added that a decision is needed soon whether to install devices such as ZigBee chips in every meter or choose a smaller population to drop chips into for home area networks. Mr. Catanach noted it can be expensive to install them in every meter ($10 per meter). In comparison, a potential cost of $600,000 may be involved to reinstall meters, so it seems most cost effective to put them in every meter at time of installation. The American National Standards Institute (ANSI) must certify the type of chip in meters. If any electronic component is changed, the meter must be recertified. Board Member Grahanz noted some chips can be very unreliable, therefore staff should insist on a very good warranty on the chips and a 20 year warranty on the electronic components. He is happy to consult with staff and our consultants. Financial services consultants were interviewed today to help prepare several different rate options, including tiered rates, to take to Council for consideration in March, 2011. Impetus is coIning from both citizens and Council to explore tiered rates. Board Member Bihn added the importance of accounting for more demand integration that may become an issue later, such as widespread use of electric vehicles. It’s important to ask the vendors how thei’ see providing fbr this flexibility down the road. Infrastructure is needed to support such a changing picture and should be considered when making this initial investment in our future system. More solar, wind, and emerging technologies will eventually be on our system. Customers are drii’in these changes tbr us. Board Member Bam-nish called fbr transparency up front as to true costs. ihe more (-omnplex the system becomes, ii takes more people to make it all run, and this imiust be considered. Electric Board Meeting Minutes 2 November 15, 2010 2011 Annual Work Plan Conservation fees and additional opportunities for revenue generation were discussed. 2010 Annual Report Draft Chairperson John Morris will leave the Board with an annual report draft to finalize and submit by the January 3 1 deadline. Routine Updates PRPA (Vice Chairperson Yurash): Vice Chairperson Yurash went on a tour of the Rawhide Power Plant recently. The lack of coal dust and the containment measures were both impressive. He also attended a portion of the PRPA Board meeting; the budget was discussed at length. The high variability of contributions to the pension fund year to year is an issue, and they are exploring a defined contribution plan. Revenue from excess electricity sales is down. Capitol News (Board Member Wollev): No report was given. Green Building Prograin (GBP) (Board Member Graham): Board Member Graham attends the next GBPAC meeting on Wednesday. Referring to the GBP quarterly report provided in the packet, the new plan is to amend the existing code which is more palatable for stakeholders. Energy Services Manager John Phelan noted a proposed package of measures, both for residential and commercial code amendments, is being introduced at the Green BLlilding Program Open House on Wednesday. Staff will go back to Council work session on December 14. The program places emphasis on how things get done and how equipment is installed, e.g., commissioning testing, and is not based on prescriptive measures as its main focus. However, some prescriptive improvements were addressed in the recent update of the International Building Codes. Staff Reports None Other Business 2011 Board Meeting Schedule: Board members approved the proposed meeting schedule for first Wednesdays from 5:30-7:30 p.m. with the exception of the November meeting, which conflicts with the annual boards and commissions appreciation event. The Board will meet on November 9, the second Wednesday. Centre Avenue student housing proiect: Concern was expressed about the all-electric resistive baseboard heating planned for the project. Some board members are not familiar enough with the project to register concern officially with Council. The City has spent a lot of time and money developing the Energy Policy, it seems counterproductive to miss executable steps and opportunities to create alignment. Staff noted the absence of specific code language to redirect this developer’s choice and recommended Project Engineering Supervisor Doug Martine attend the next meeting to provide an overview of this project. Future Agenda Items The full draft of Plan Fort Collins with strategic action items (90% draft of about 350 pages) will be released on Friday. The Board has the option to review the draft Plan through the month of December and make comments by the end of December or at the Electric Board Meeting Minutes 3 November 15, 2010 January 5 meeting for the January’ 11 work session. Council begins adoption hearings on February 15. A two year pilot of a solar wholesale application process was proposed in the budget. It was initially not funded, hut staff anticipates Council will ask to bring it hack in 2011. City and Utilities staff have had the opportunity to work with Craig Lewis, Founding Principal of RightCycle and FIT Coalition, to develop a reasonable economic cost scenario and anticipate a draft from Mr. Lewis by the end of December, ft)llowed by a “go/no go” decision point. Adjournment The meeting was adjourned at 8: 14 p.m. Submitted by Robin Pierce, Utilities Administrative Services Supervisor (Board Secretary), Fort Collins Utilities Approved by the Board on I , 2010 Signed P&n Board Secretary Date Electric Board Meeting Minutes 4 November 15, 2010