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HomeMy WebLinkAboutEnergy Board - Minutes - 03/06/2014Energy Board Meeting Minutes March 6, 2014 1 Fort Collins Utilities Energy Board Minutes Thursday, March 6, 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, Michael Doss, and Stacey Baumgarn Board Absent Board Members Phil Friedman and Peggy Plate Staff Present Steve Catanach, John Phelan, Lisa Rosintoski, Lucinda Smith, Paul Sizemore, Mark Jackson, Pablo Bauleo, Cyril Vidergar, Kevin Gertig, and Harriet Davis Guests John Bleem, Brad Decker, Fred Kirsch, Mike Pruznick, Kevin Jones, and Rick Coen Meeting Convened Chairperson Behm called the meeting to order at 5:31 p.m. Public Comment Fred Kirsch, Director of the Community for Sustainable Energy, presented information on this program, which organizes support for more sustainable energy practices and policies. Mr. Kirsch has been working with City staff to develop financing programs to remove the cost barrier for homeowners who want to improve energy efficiency in their homes. More information is available at www.cforse.org. Mr. Kirsch also shared information on Midwest Energy’s How$mart efficiency financing program, which can be transferred to different homeowners. This program has been very successful in the rental market. Mr. Kirsch would like the Energy Board to review the program. More information is available at www.mwenergy.com/howsmart.aspx. Mike Pruznick provided a handout showing the cost savings for rooftop solar panels. Mr. Pruznick stated he can pay for his solar panels in a 25 year timeframe. Mr. Pruznick feels that solar pays for itself and that everyone should be charged the same for the energy provided. He feels staff should be aggressive in promoting this program. Approval of February 6, 2014 Minutes Board Member Moore moved to approve the minutes of the February 6, 2014 meeting with corrections as outlined below. Vice Chairperson O’ Neill seconded the motion. Vote on the motion: Yeas: Behm, Doss, Michell, and Moore. Nays: None. Energy Board Meeting Minutes March 6, 2014 2 Vote on the motion: It passed unanimously. The February minutes will be revised with the following changes:  Changed “table” to “postpone” in the “Review Board Charter and Meeting Conduct” section on page 4 (discussion regarding motions).  Revised the fourth bullet in the same section to read as follows, “Board members can ask for a restatement of the motion if they need clarification on the motion.” * Vice Chairperson O’Neill abstained due to his absence at the February meeting. Board Member Graham also abstained from the vote. Board Member Baumgarn was not present during the roll call. Staff Reports Light and Power Operations Manager Steve Catanach introduced Interim Utilities Executive Director Kevin Gertig. Mr. Gertig will become the Interim Executive Director on March 17 when Brian Janonis retires. Mr. Gertig is currently the Water Resources and Treatment Operations Manager. He also served as the High Park Fire Recovery Manager and the Flood Recovery Manager for the September 2013 flood event. Customer Connections Manager Lisa Rosintoski shared information on the Platte River Power Authority (PRPA) Community Listening Session. This is scheduled for Thursday, March 27, 2014. The event is free and open to the public. More information is available at www.prpa.org. Mr. Catanach shared information on the upcoming Budgeting for Outcomes (BFO) process. Staff will start submitting offers in mid-March. The board is welcome to provide feedback during this process. Platte River Power Authority (PRPA) Integrated Resource Plan (Attachment available upon request). PRPA Strategic Planning and Customer Service Director John Bleem presented information on this item. PRPA Strategic Planning Manager Brad Decker also participated in the discussion. Mr. Bleem shared background information on the Integrated Resource Plan (IRP):  Mandated by 1992 Energy Policy Act for purchasers of federal hydropower  Western Area Power Administration (WAPA) requires an IRP every five years  More information is available on www.wapa.gov or www.prpa.org. Why Diversify?  Reduce emissions  Increased fuel supply flexibility  Reduce risk Diversified Energy Supply Portfolio  Seek Board approval of a new Integrated Resource Plan  Conduct modeling and analysis to include distributed resources, natural gas combined cycle, additional renewable energy sources, and greenhouse gas emissions  Maintain position as lowest cost wholesale electric supplier located in Colorado No Early Retirements Scenario Mr. Bleem presented a graph showing the 40-year planning horizon for Rawhide Power Plant, the Craig Station, and two hydropower stations. This graph also includes new resources. Energy Board Meeting Minutes March 6, 2014 3 PRPA has conducted a life-of-plant study for Craig. This study predicts it will run until 2042. PRPA will also conduct a life-of-plant study for Rawhide. Resource Timing Considerations Mr. Bleem presented a diagram showing shorter-term options and longer-term options. PRPA Energy Delivery System Mr. Bleem presented a map showing the PRPA Energy Delivery System. PRPA will look at combined cycle gas study locations. CO2 Price Risk Forecasting Mr. Bleem presented a graph showing the collection of U.S. utility resource planning forecasts. CO2 Emission Reduction Paths Mr. Bleem presented a graph showing the reduction paths and the range of possible CO2 reductions. Key factors include prices, regulation, load growth, community goals, and technology trends. Draft IRP Timeline Mr. Bleem presented the draft IRP timeline. The final report is scheduled to be presented to PRPA directors in December 2014. Community Outreach Activities These include Community Listening Sessions in Fort Collins, Loveland, Longmont, and Estes Park, an interactive webinar, meetings with City Councils and citizen boards, and community open houses. Highlights from the discussion:  A board member inquired about gas transmission lines and the limitation for this. Mr. Bleem stated there are limitations, but there are gas lines in the vicinity of the transmissions lines.  A board member inquired about the cost of carbon, and if this also measures the environmental impacts. Mr. Bleem stated this is a simple carbon charge; however, the pricing is also based on the social cost of carbon.  A board member inquired about PRPA’s work with the different member cities on Demand Response. Mr. Bleem stated PRPA is working with Fort Collins staff on how to collaborate with the other cities. There is currently a Demand Response Team. PRPA would like to have a joint Demand Response Program.  A board member inquired about alternatives that are not short-term (for example, solar with storage). Mr. Bleem stated PRPA will watch for other alternatives and will consider these in regards to their long-term planning. *** Board Member Baumgarn arrived at 5:50pm. Transportation Discussion (FC Moves, Master Plan, Travel Demand Model, Greenhouse Gas Inventory Numbers, Opportunities) (Attachment available upon request). FC Moves Program Manager Paul Sizemore presented information on this item. Planning, Development, and Transportation (PDT) Deputy Director Mark Jackson and Environmental Services Director Lucinda Smith also participated in the presentation and discussion. FC Moves  New department within the PDT Service Area Energy Board Meeting Minutes March 6, 2014 4  Looks at long range planning needs, as well as current programming needs, through the following functions: Transportation Planning, Safe Routes to School, and FC Bikes  Includes transportation planning with an emphasis on people, community programs that educate and encourage, and advocacy for modal shift and active transportation. 2011 Transportation Master Plan (TMP)  Primary guiding document for transportation policy in Fort Collins  Relationship to City Plan has evolved over time  In 1997, TMP and City Plan were created collaboratively, but separately  In 2004, more coordination and information sharing  In 2011, Plan Fort Collins was created 2011 TMP Key Points  Built on an integrated, multimodal framework  Set the stage for non-motorized programming  Begins the dialogue between energy use, GHG, and transportation choices  Built on certain assumptions: o Continued strong VMT (Vehicle Miles Traveled) growth Mr. Sizemore presented a graph showing model statistics for the Fort Collins Impact Area. Travel Demand Model Overview  Maintained by the Metropolitan Planning Organization (MPO)  Forecasts travel volume approximately 25 years in the future, plus interim ranges  Fairly “course” detail-arterials and collectors  Used as a tool to help make planning decisions GHG Inventory Ms. Smith presented information on this item and presented a graph showing the Fort Collins Community 2012 Greenhouse Gas Emissions. Ground travel is 23 percent of the total emissions. Ground Transportation  Primary Data Sources o Annual vehicle miles of travel projections from the North Front Range Metropolitan Planning Organization for the Growth Management Area (GMA) boundary  Other Factors o VMT Distribution by vehicle class o Fuel efficiency by vehicle class Opportunities Mr. Sizemore presented a graph showing Fort Collins traffic counts for 22 arterial streets from 1991- 2013. The trend started to slow down in 2001. He also presented a graph showing the U.S. national trend for vehicle miles traveled per person. This peaked in 2004. The graph also shows Portland, Oregon. Their peak occurred in 1996. Mr. Sizemore stated the model is not our destiny; however, the model is a rough estimating tool. 2016 Transportation Master Plan  Build on data from current GHG/Energy studies  Develop strategies to show how to achieve goals Energy Board Meeting Minutes March 6, 2014 5  Set policies to direct progress towards goals  Provide iterative feedback for next GHG and Energy Policy discussion Highlights from the discussion:  A board member inquired if the Transportation Master Plan is out of sync with the Energy Policy. Mr. Sizemore stated he feels the timing is perfect for these two documents and the greenhouse gas goal discussions.  The board members and staff discussed how many individuals commute in and out of Fort Collins each day. Mr. Sizemore noted that approximately 15 percent of Fort Collins’ population commutes elsewhere for work as compared to approximately 60 percent of Loveland’s population.  A board member inquired how commuters are taken into account regarding greenhouse gas emission levels for ground travel as noted above. Ms. Smith stated this is based on the best estimate of the miles driven within the boundary regardless of the trip’s origin or destination. She noted that some communities use a different approach when calculating the greenhouse gas emissions.  A board member inquired if the model includes causes of trips, for example, after-school activities in the afternoons. Mr. Sizemore stated the trips generated in the model are based on population and employment. Different options will be looked at as part of the Transportation Master Planning update to achieve VMT reductions.  A board member inquired about Transit Oriented Development (TOD) as referred to on the City website, and how this fits within the framework of Transportation Master Planning. Mr. Sizemore feels these types of developments overlay with systems such as the MAX Bus Rapid Transit (BRT) system, as in the example of The Summit on College Avenue.  A board member asked if PDT has a goal for reducing CO2 emissions. Mr. Sizemore stated the PDT goal is the City’s goal. Mr. Sizemore also stated this will be an important part of the Master Plan Update.  A board member inquired if there is adequate funding to achieve the goals. How does it fit within the BFO process? Mr. Jackson stated there is not enough money to fund the efforts. He has encouraged the Transfort staff to be aggressive in submitting BFO offers.  A board member inquired about transportation planning and land use planning regarding mixed use development. For example, the lack of these types of developments south of Harmony Road. Mr. Jackson stated there has been a shift in this with adoption of the Land Use Code as part of City Plan.  A board member asked if there are examples of communities with programs that had a direct effect on reducing vehicle miles traveled. Ms. Smith shared the example of Portland. Portland made great progress in reducing emissions in the early 2000’s. A board member shared the example of Denver’s light rail system.  The board members and staff discussed transit issues in Fort Collins. Mr. Jackson stated the demand for transit is high in Fort Collins. City Council will consider adding Sunday service to the MAX BRT system. Colorado State University (CSU) will add to their bus transit service. This is attributed to an aging demographic that relies on public transportation. The younger generation is also utilizing the transit system more often. Demand Response Program (Attachment available upon request). Energy Services Engineer Pablo Bauleo presented information on this item. The Demand Response Management System (DRMS) will utilize Comverge’s IntelliSOURCE system. There will be new Energy Board Meeting Minutes March 6, 2014 6 programs for customers with detached homes (Wi-Fi thermostat and electric water heater), multi- family homes (electric water heater), and commercial and industrial customers. DRMS Basic Components Components include scheduling, load dispatch, message editor, monitoring and verification, and forecasting. Wi-Fi Thermostat Program Mr. Bauleo shared the details for the Wi-Fi Thermostat Program. This includes a residential HVAC thermostat. There is a small fee to acquire the equipment and customers will have the ability to opt-out. Electric Water Heater Program Mr. Bauleo shared the details for the Electric Water Heater Program. This program is for both single family and multi-family homes. There will be voluntary participation for single family homes. For multi-family homes, the participant will be enrolled via their property management company. There is no fee to acquire the equipment and customers will have the ability to opt-out. Commercial and Industrial (C&I) Program Mr. Bauleo shared the details for the Commercial and Industrial (C&I) Program. This includes an internet-based open protocol. System Peak Load  Fort Collins Utilities System Peak Load: 302 megawatts  Four Cities System Peak Load: 652 megawatts (6/25/2012)  PRPA increased 35 megawatts since 2005  At the time of 4-Cities system summer peak load, Fort Collins contribution to the peak drops to approximately 46 percent Scope and Timeline  Phase 1 (Q4 2013 to Q2 2014)  Phase 2 (Q3 2014 to Q2 2015)  Phase 3 (Q3 2015 to Q4 2016) Budget  Contract with Comverge $4.7 million (2014 to 2016)  AMFC grant covers $3 million or up to July 2015, whichever happens first Summary  DRMS is a flexible platform for future programs  Goal: 6,000 devices by 2016  Rollout begins in 2014 (mass market in 2015)  Budget: $4.7 million ($3 million from grant, BFO offer for the rest) Highlights from the discussion:  A board member inquired about communication regarding the thermostat. Mr. Bauleo stated the communication will go through Port 80 on the customer’s router. Security is the same as the Automated Metering Infrastructure (AMI) system.  A board member inquired about compatibility with an existing thermostat. Mr. Bauleo stated there is a list of systems the thermostats will be compatible with.