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HomeMy WebLinkAboutEnergy Board - Minutes - 04/02/2015Energy Board Meeting Minutes April 2, 2015 1 Fort Collins Utilities Energy Board Minutes Thursday, April 2, 2015 Energy Board Chairperson City Council Liaison Peter O’Neill, 288-4562 Ross Cunniff, 420-7398 Energy Board Vice Chairperson Staff Liaison Phil Friedman, 493-2959 Lisa Rosintoski, 416-2432 Roll Call Board Present Chairperson Peter O’Neill, Vice Chairperson Philip Friedman, Board Members Greg Behm, Darrin Johnson, Michael Doss, Nick Michell, Peggy Plate, and Margaret Moore Absent Stacey Baumgarn (attending green building conference) Staff Present Lisa Rosintoski, John Phelan, Paul Sizemore, Lucinda Smith, Cyril Vidergar, Lance Smith, Carrie Daggett, and Donna Visocky. Guests John Bleem, Paul Davis, and Brad Decker of Platte River Power Authority, John Fassler. Meeting Convened Chairperson Peter O’Neill called the meeting to order at 5:32 p.m. Public Comment None Introduction – City Attorney Carrie Daggett Utilities Customer Connections Manager Lisa Rosintoski introduced new City Attorney Carrie Daggett. Daggett has been in the City Attorney’s Office (CAO) since 1995, has worked with Utilities over the past 15 years, and is familiar with their issues. She is looking forward to working with the Energy Board. A board member expressed an area of concern: issues with security and privacy of the new smart grid, and asked for Daggett’s thoughts and if she was aware of a need for security and privacy measures. Daggett responded that the legal field is aware of the challenges related to the smart grid and noted that things will largely be driven by decisions on the federal level. The federal government is also aware of potential issues and that their policy will have an influence on what role the City plays. Fort Collins City Council is progressive and doing things in a new way; there will always be the potential for legal issues. The CAO’s job is to keep up with the changes. The board member asked if the CAO is actively looking at the issues. Daggett replied that the office is not the policy setter, not the driver of ideas and implementation. Rather, its role is to help facilitate programs from a legal standpoint. The board member hoped the CAO would be up to date on what’s happening in these areas. Ms. Rosintoski reported that her department, Utilities Customer Connections, works closely with the CAO to prevent a data breach. Energy Board Meeting Minutes April 2, 2015 2 Approval of March 5, 2015 Minutes Chairperson Peter O’Neill asked if there were any changes to the minutes from the March 5, 2015 meeting.  A board member corrected the spelling of Philip Friedman’s name on page 1 and the spelling of Mr. Weinheimer’s name on page 4.  A board member made the following changes to page 4 paragraph 7: A board member commented on receiving water reports he believes are inaccurate; he’s categorized as using 10 2 times more water than the most efficient user, but doesn’t receive energy report because his house uses solar energy/photovoltaic panels (PV).  A board member made the following change to page 5 paragraph 1: Energy Services Manager John Phelan commented that Utilities increased the amount of money available for solar rebates in 2015.  A board member made the following change to page 5 paragraph 2: two ways of measuring carbon output, consumption method and production method sensitivity analysis/population growth. Board Member Greg Behm moved to approve the minutes of the March 5, 2015 meeting with corrections. Board Member Nick Michell seconded the motion. Vote on the motion: It passed unanimously. Board Members Peggy Plate, and Margaret Moore abstained as they were absent from the March meeting. Staff Reports Quarterly Financial Report – Lance Smith Strategic Financial Planning Manager Lance Smith gave an overview of the Utilities Department Quarterly Financial Update for Q1-2015. Revenues: were $1.8 million under budget. Most of the change can be attributed to weather and a change in residential sales and development fees. The policy was revised in 2015 so that developers have to pay 100% of development fees before the infrastructure work gets started. This also means expenses will be below budget. Expenses: The Department is still waiting on numbers for March and accounting adjustments from December billing. He cannot give an accurate report on first quarter expenses at this time. Discussion Highlights  A board member asked if there are any variables the board needed to be concerned about. Mr. Smith indicated that sometimes they over-forecast what sales would be, also weather brought usage down. He will have a better picture in three months.  A board member suggested rather than numbers it would be helpful to see an overview with bullet points on how well Utilities is operating.  A board member would like to see what capital projects Utilities is working on and the big picture goals and plans.  A board member would like to see numbers that reflect just how well Utilities is operating.  A board member expressed concern based on the minutes from the March meeting that one of the programs had already run out of money. What latitude does Utilities have to keep these programs operating? Mr. Smith reported that the budget is created two years in advance and often difficult to guess what the need will be. The final budget is approved by City Council. To get more dollars for the program it would most likely involve taking money from one program and giving to another which is not always possible. Because these are line items Utilities would have to request a change from Council. Energy Board Meeting Minutes April 2, 2015 3 Mr. Phelan commented that one issue is Utilities does not have enough money to meet the demand for solar rebates, though Council did allocate more money this year. Ms. Rosintoski suggested that perhaps in the future they need to budget for more. Mr. Smith agreed that he will provide a better dashboard report with more of an overview of the department’s status for future board meetings. Other Staff Updates Utilities Customer Connections Manager Lisa Rosintoski reported on the Energy Policy 2014. At the last meeting she had received feedback that public engagement should be addressed. General public outreach has been achieved through the Climate Action Plan and they will continue that outreach to the community. City Council feels it is important to present the Energy Policy to boards and commissions. The next step is public engagement with applicable boards and commissions (Air Quality, Transportation, Natural Resources, etc.) followed by general public outreach. Board Chairperson O’Neill, Ms. Rosintoski and Mr. Phelan will present the Draft Energy Policy to the boards for feedback and has put together a Public Engagement Action timeline for April through July. Public comment is also very important; they will have website links and a visual program that the general community can review and comment on. This will be for a 30-day period. Timeline  April through May – Boards and Commissions presentations  May – Energy Board will draft memo to City Council  End of May through June – 30-day public comment period  June – Public invited via public notice to attend the Energy Board meeting for further comment and feedback  June – Energy Board internally finalizes memo to City Council  July – Energy Policy presented to City Council on July 21, 2015 Discussion Highlights  A board member asked whether the Energy Board can accept public comments. Ms. Rosintoski stated yes, this would be another forum for the public to talk on this specific issue. There would be an item on the agenda for public comment.  A board member asked how customer comment is documented. Ms. Rosintoski replied only through the meeting minutes. This is not a public hearing. FC Moves Program Manager Paul Sizemore reported that his service area director is leaving. Interviews will take place within two weeks; they have two finalists. Environmental Services Director Lucinda Smith reported that a new Chief Sustainability Officer will be chosen soon. There should be a public announcement in a week. She will introduce the new staff person to the Energy Board. The lawnmower rebate program will start up again this spring. Information is available at www.fcgov.com under Lawnmower Rebate. The city is hiring a contractual green building program position. Energy Board Meeting Minutes April 2, 2015 4 Platte River Power Authority Resource Planning Update (Attachments available upon request) John Bleem, Brad Decker, and Paul Davis of Platte River Power Authority (PRPA) presented information. Mr. Bleem stated the planning department was very busy in 2014; they have a working resource planning model. PRPA’s strategic plan guidelines  Reserve margin – minimum of 15%  Lowest wholesale rates in Colorado  Renewables- have relaxed the guideline due to recent higher costs  CO2 reduction 35% by 2030 Notes  New capacity not needed until 2030  Focus is on 2020 first  Renewables: quadrupled renewable supply  Already providing 10% renewable supply  Biggest focus is on the Craig plant (Yampa Project) modification/replacement. Most expensive, highest emissions, lowest reliability coal source  Energy efficiency as a resource  Looking at all considerations: Natural gas cuts CO2 emissions in half Biggest consideration: What’s happening with the cost of carbon?  Cost to meet regulations  Carbon tax. Cap & trade  Social cost of carbon. How do we mitigate carbon? It has such an impact on the environment in so many ways. 2015 Plan  Craig analysis  PRPA Board retreat with all partner cities to determine what they want to do moving forward Discussion Highlights  A board member inquired about the advanced concentrating solar storage system. Mr. Bleem replied that it’s not quite feasible yet cost-wise.  A board member inquired about the reason for a spike in alternative sources. Mr. Bleem stated new renewables of two-thirds wind power and one-third solar power account for the increase.  A board member mentioned that the federal government recently raised standards for buildings from 7.5% to 30%. Does PRPA see any changes in the RECs (Renewable Energy Certificates) market? Mr. Bleem stated PRPA is stepping out of the RECs market over time.  A board member inquired if there was any flexibility for Fort Collins to request more renewable generation even if the other cities don’t want that. Mr. Bleem replied that it is difficult to operate effectively if they offer different resources for different owners. Their focus is on what the organization wants to do as a group. They do that with their voluntary Energy Board Meeting Minutes April 2, 2015 5 renewables, but only on a small level. PRPA has already added more than 100 megawatts of renewables.  A board member requested clarification on Craig and its high operating cost. Mr. Bleem replied Craig is powered by coal. Coal needs to be taken out of the mix to get anywhere close to the CO2 reduction requirements. They currently have two coal units at Craig and one coal at Rawhide Energy Station. If these were eliminated, costs would increase because supply costs would be significantly higher. Energy Policy 2014 Annual Report (Attachments available upon request) Energy Services Manager John Phelan distributed hardcopies to the board. The policy is still in draft format while staff waits for some final information and numbers. Mr. Phelan walked the board through the plan, reviewing key outcomes and major 2014 activities and highlights. Based on the Energy Policy Metrics Scorecard, the majority of goals were rated as achieved or on track to be achieved with just two rated as having made progress towards achievement. Discussion Highlights  A board member inquired about local solar – how much are we actually generating locally? Mr. Phelan stated solar is not directly measured, though it is relatively predictable. A board member suggested that information might be included in the future.  A board member commented that it is important to clarify whether energy is hydro or non- hydro and asked for more clarification on numbers. Also when adding capacity – what do the numbers mean? Clarification on the numbers and the meaning is important. Mr. Phelan indicated that it is possible to include those numbers and details in the proposed Energy Policy.  A board member commented that in the world of renewables, large scale hydro does not count, though smaller and new hydro projects are important.  A board member recommended that the memo to City Council include mention that Council should be commended for stepping up and taking action so the City was able to meet state renewable energy requirements for 2015.  A board member requested that the report provide more clarification on the numbers on page 3, last row.  A board member requested that the report include a mention on page 2, last row, that the Smart Meter program was just being implemented thus the goal is not yet achieved.  A board member questioned the verbiage on page 4 under Efficiency programs in 2014 generated over $23 million in local economic benefits… He requested that it be fleshed out so that it is clearer.  A board member asked why the Design Assistance category is blank on the budget report. Mr. Phelan stated that no projects were completed in calendar year 2014. He will delete that from this report to avoid confusion.  Chairperson O’Neill inquired whether Mr. Phelan needed a resolution from the board endorsing the Energy Policy. Mr. Phelan stated he did not find anything in past minutes that the board had approved the policy in the past. It was determined a board vote was not needed.  It was decided that a note would be included in the cover memo to City Council: As presented to the Energy Board in their April 2015 meeting. Energy Board Meeting Minutes April 2, 2015 6 Draft Energy Policy Review (Attachments available upon request) Mr. Phelan reviewed the policy via PowerPoint and explained this is still the current version. Further revisions will be provided at the next meeting. He indicated they still have several areas that need revision. For example, there is nothing in the policy that reflects the city’s actual energy usage; that data needs to be included. One area of discussion revolves around transportation and land use. They do not want to create a potential conflict of policies between the Transportation Policy as dictated by the Climate Action Plan and the Energy Policy. He recommends that the report list the objectives of the Utilities Department but does not overstep the policies of the Transportation Master Plan. Rather, it serves as a guide for collaboration of the various plans’ objectives. In addition, the Department is working on developing meaningful metrics to evaluate the various goals. Mr. Phelan inquired whether the board was ready for the public engagement stage. He also indicated that there will be some internal review within the City, in particular with Transportation and Land Use staff. Discussion Highlights  Chairperson Peter O’Neill asked if the board needed to take any action to make the Energy Policy available on the website for public review. City Attorney Carrie Daggett responded that staff can move forward without board approval to make the policy available to the public.  A board member mentioned that though it is not part of the policy, the cost of funding these projects will come up. Mr. Phelan agreed that efficiency targets and renewable targets will require some funding research.  Mr. Phelan asked the Energy Board if they felt this draft was ready to be shared with other boards and the community. The board agreed the policy is ready to be shared. Staff will take this version with some adjustments and additional slides and begin the internal review and then begin presenting to other boards and commissions to get their feedback.  Chairperson Peter O’Neill thanked the staff for all their hard work in putting the policy together. New Business None Board member Reports Board Member Nick Michell commented that solar is becoming more popular in many developments. Solar shingles are automatically included on every estate lot house in the new Bucking Horse Development. Board Member Margaret Moore reported that she attended the Northern Colorado Renewable Energy Meeting. Revive Subdivision has set a goal to build all their homes with renewable energy programs; they currently have solar on their first two homes. Board Member Michael Doss reported that CSU is looking for volunteers to judge the Engineering Department’s senior projects.