HomeMy WebLinkAboutEnergy Board - Minutes - 09/03/2015Energy Board Meeting Minutes
September 3, 2015
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Fort Collins Utilities Energy Board Minutes
Thursday, September 3, 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, Stacey Baumgarn, Michael Doss, Peggy Plate, Nick Michell, Margaret Moore
Absent: Board Member Darrin Johnson
Staff Present Lisa Rosintoski, John Phelan, Paul Sizemore, Randy Reuscher, Katherine Martinez,
Rebecca Everette, Katy Bigner, Cyril Vidergar, Tiana Smith
Guests Paul Davis of Platte River Power Authority (PRPA), Hunter Buffington, Rick Coen of
Namaste Solar
Meeting Convened
Chairperson Peter O’Neill called the meeting to order at 5:32 p.m.
Public Comment
Hunter Buffington of Fort Collins Sustainability Group read a statement of comments and
suggestions on the proposed electric energy conservation and efficiency goals (written
statement available upon request): “The Fort Collins Sustainability Group fully endorses the
draft Energy Policy vision, which is to ‘support Fort Collins’ social, environmental and
economic health through clean energy system and efficient end-use consumption, with a
long term goal of transitioning to energy systems free of fossil fuels.
We have the following comments and suggestions on the proposed electric energy
conservation and efficiency goals. For the previous two years – 2013 and 2014 – the annual
electric energy savings from conservation and efficiency programs was actually 2.2% -- this
is 0.28% greater than the proposed average goal for the period 2015-2020…We can do
better than the annual goal for conservation and efficiency proposed in the draft Energy
Policy…Electric energy savings has been one of two bright spots in the City’s efforts to
reduce its greenhouse gas emission (the other is emission from solid waste)…
The City’s total CO2(e) emissions were only down 2.6% in 2014 compared to 2005. We
have a long way to go to make our 2020 goal of 20% CO2(e) emissions reductions
compared to the 2005 baseline by 2020.
I’d like to ask you to build on our performance in reducing electric power sector greenhouse
gas (GHG) emissions in order to make our 2020 goal. Of course, we also need to start
reducing emissions from the transportation and natural gas sectors, too.
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September 3, 2015
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Energy Services Manager John Phelan commented that in the latest version of the draft
Energy Policy, he added one very important word: “incremental” annual savings. Home
energy reports are now received by everyone in the community. He stated the main point is
maintaining that savings. Revisions to reporting practices will make the goals higher than
what’s currently written and he stated it’s consistent with the way Utilities reports: total
savings as well as incremental savings. The goal will go from 2.2% to 3.2 % in 2020.
Approval of August 6, 2015 Minutes
Board Member Peggy Plate moved to approve the August 6, 2015 minutes with the revisions
discussed and mentioned below.
Board Member Stacey Baumgarn seconded the motion.
Vote on the motion: It passed unanimously 7-0 with one abstention.
Board Member Michael Doss abstained due to his absence at the July meeting.
Revisions to minutes:
On page 2 at the bottom, revise “federal” Public Utilities Commission to “California.”
On page 3, in the introduction to the chief sustainability officer, revise 2.5 “years” to
“months.”
On page 3, under Discussion Highlights, revise to “meeting on broadband and social
sustainability” regarding the City’s super-issue meeting for boards and commissions.
On page 5 at the top, revise to “Mr. Smith replied Light and Power’s total budget this
year…”
Staff Reports
(Attachments available upon request)
Rates Communications Update
Customer Account Manager Tiana Smith discussed the ways in which Utilities Customer
Connections is communicating the 2016 electric rate increase to local residents and
businesses: via website, press release, end-of-year brochure to residents, one-on-one
presentations to key accounts, newsletters in sustainability services, In The City column in
the Coloradoan, etc. One important message this year is rates are not increasing because of
the Climate Action Plan. The City of Fort Collins Utilities rates are competitive compared to
other municipalities and offer a variety of programs to help customers understand rate
increases. Staff is promoting financial help for residents and small businesses, and directing
customers to the web portal. A different web portal is available for large and industrial
customers to understand their energy usage.
New Light and Power Operations Manager
Energy Services Manager John Phelan announced the hiring of Light & Power Operations
Manager Tim McCullough who comes from Ames, Iowa, where he recently held the
position of Electric Distribution Manager with the City of Ames. He will start on September
14 and staff will introduce him to the Energy Board at its October 1 meeting.
FortZED Update
Environmental Planner Katy Bigner gave an overview of FortZED projects. FortZED, which stands
for Zero Energy District, began in 2007 as an initiative of the Community Foundation of Northern
Colorado as an economic development project. An early win was a $6.1 million Department of
Energy grant for Fort Collins Renewable and Distributed Systems Integration (RDSI) Project, a
public-private partnership that also received $5 million in community support for advancing
Energy Board Meeting Minutes
September 3, 2015
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renewable energy and micro-grid technology.
The revisioned FortZED is a unique collaboration of clean energy technical expertise, civic
leadership, higher education, and community participation to meet Fort Collins’ environmental and
economic goals. Its goal is to advance the development of energy projects that accelerate Fort
Collins’ path to a zero emissions community.
The three biggest supporters and partners are City of Fort Collins, Colorado State University, and
Colorado Clean Energy Cluster. The team expanded its focus areas to include financial and business
models. FortZED acts as a think tank, a brainstorming and development entity, and partners
implement the projects.
Projects “ignited” by FortZED include: an early version of the Integrated Utilities Services model
brainstormed at the Rocky Mountain Institute (RMI) FortZED charrette in 2012, low income solar
program model that advanced to a successful Budgeting for Outcomes budget offer in the City
budget process and a future pilot program, hybrid DC microgrid for the Utilities Administration
Building currently under construction, and the Lose-A-Watt Energy Prize competition supported
and sponsored by FortZED.
Discussion Highlights
Mr. Phelan commented on communicating FortZED’s purpose and goals, and on contributions by
partners such as Spirae (Fort Collins-based innovative technology company that delivers scalable
smart grid solutions to global partners and customers). The FortZED steering committee meets on
first Fridays at City Hall.
2016 Utility Rates
(Attachments available upon request)
Randy Reuscher presented an overview of the electric rate increase, which is required in 2016 due
to an increase in wholesale purchase power rates from Platte River Power Authority (PRPA) of
4.5%. The projected increase at the retail level for Fort Collins Utilities electric customers is 3.2%.
An electric cost-of-service study was completed in 2014 and the increase is applied evenly to all
rate classes for 2016.
Discussion Highlights
A board member inquired whether the increase is also due to maintenance of electricity
infrastructure. Mr. Reuscher replied that it includes maintenance and capital costs. The
board member commented that at a past meeting, aging underground infrastructure was
discussed and inquired whether increased maintenance costs are built into these models. Mr.
Reuscher replied that they are.
Platte River Power Authority (PRPA) Planning and Customer Service Director John Bleem
commented that energy prices have dropped, especially natural gas, due to fracking, and
stated it’s a different market than a few years ago. The low energy prices mean Platte River
receives less revenue from surplus sales. Surplus sales revenue offsets revenue that
otherwise must come from Platte River’s municipalities.
A board member inquired about a comparison between Fort Collins and Longmont. Mr.
Reuscher replied that the City of Longmont doesn’t have seasonal rates.
A board member commented that the goal should be to eventually talk about billing rather
than rates, and another board member agreed, saying conservation is meaningless otherwise.
Customers may use a lower quantity of energy that’s more expensive but overall the bill
should be less due to using less energy.
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September 3, 2015
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Board Member Margaret Moore moved for the Energy Board to approve the electric rate
increases for 2016 of 3.2% that will be presented to City Council for first reading on
November 3.
Vice Chairman Friedman seconded the motion.
Board Member Behm recommended an amendment to “recommend approval” rather than
approve since the board is not authorized to approve, only make recommendations to City
Council. Board Member Moore agreed to amend the motion.
Board Member Margaret Moore moved for the Energy Board to recommend approval of the
electric rate increases for 2016 of 3.2% that will be presented to City Council for first reading
on November 3 pending.
Board members recommended adding language suggested by staff “pending final approval of
wholesale increases at PRPA board meeting in October.” Board Member Moore agreed to the
revisions.
Board Member Margaret Moore moved for the Energy Board to recommend approval of the
electric rate increases for 2016 of 3.2% that will be presented to City Council for first reading
on November 3 pending final approval of wholesale increases at the PRPA board meeting in
October.
Vote on the motion: It passed unanimously, 8-0.
Downtown Plan Presentation
(Attachments available upon request)
City Planner Rebecca Everette handed out business card-sized promotional material that lists the
Downtown Plan website. The last Downtown Plan was completed in 1989 and focused on
revitalizing the area; every action item was completed. Ms. Everette reviewed next steps and
upcoming innovative projects. The focus is on protecting what people love about downtown; the
process will occur over 1.5 years. The next plan update will be in five to 10 years and will set the
stage for the following 20 years. Public engagement has included events and online surveys, text
message-based surveys targeting Colorado State University (CSU) students, etc., to hear from as
many different groups as possible. The Downtown Plan will play a part in implementing Climate
Action Plan (CAP) emission reduction strategies.
Upcoming events are listed at www.fcgov.com/downtown and include a September 15 public open
house and an event with David Sucher, author of City Comforts, on September 24 at the Lincoln
Center. Ms. Everette asked for board members’ ideas about what success looks like for the
Downtown Plan.
Discussion Highlights
A board member inquired about the reasoning behind the new Downtown boundaries. Old
Town plan focuses on residential area, Downtown focuses on commercial core of the city,
added breweries and removing areas that overlapped with residential areas.
A board member commented that it’s similar to Downtown Development Authority (DDA)
boundaries, to allow for what the DDA can do that city can’t.
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September 3, 2015
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A board member commented that Downtown is a huge draw, and inquired how to get fewer
people driving to Downtown in future years when population is larger.
A board member commented that he likes to take public transit from southeast Fort Collins,
such as MAX, but can’t get home from a Downtown meeting at night is a challenge due to
bus running only hourly.
A board member commented that he uses MAX a lot and parking is a challenge. Signs are
not clear, printed on one side but not the side that MAX riders see when they disembark.
Need to look at solutions. FC Moves Program Manager Paul Sizemore commented on the
importance of transportation system to Downtown, and how it relates to the rest of the
network, such as getting into and out of Downtown with MAX.
A board member commented that it’s necessary to look at transportation as a whole, into
Downtown and into neighboring communities. Another board member commented that
Downtown is a huge draw, and a measure of success would be getting twice as many
Downtown visitors in 10 years and have as many people driving; transportation is the
biggest piece when discussing the Climate Action Plan.
A board member commented there’s a misconception that buses don’t connect to MAX
well, but they do very well.
A board member inquired about details of charrette, date, time, location, 281 N. College.
Ms. Everette commented that she could come back to share updates. Board members
expressed interest in future updates.
Platte River Power Authority (PRPA) Resource Plan
(Attachments available upon request)
PRPA Planning and Customer Service Director John Bleem presented a Resource Planning Update
and reviewed possible future electric resources for 2016 - 2035. No electric resource changes are
needed for several years to meet peak capacity or renewable energy standards, due to slowing
municipal peak load growth, expanded energy efficiency programs and recent large additions of
new wind and solar resources. Price trends for renewable resources are encouraging, with wind and
solar project costs dropping significantly over the last few years.
The Clean Power Plan (CPP) will be a significant consideration going forward. This U.S.
Environmental Protection Agency (EPA) rule will be implemented at the state level, with
implementation rules due to be finalized by September 2018 and performance requirements
beginning in 2022. The Colorado statewide requirement is estimated as 25% to 40% reduction in
CO2 for the electric generation sector. Specific levels for PRPA and other individual generators are
not yet clear. No other sector of emission sources is included in the CPP rule. Mr. Bleem presented
a preliminary list of the many options available to Colorado on how the rule may be implemented. It
may be based on emission rates, or total tons produced (statewide or by individual utility) and may
be encouraged through taxes, cap and trade market mechanisms or source permit limits.
Mr. Bleem explained why PRPA is developing a strategy for exiting Craig unit 1. The main reasons
are: future costs for pollution controls and decommissioning of the unit may be avoided, most of the
energy from Craig is sold to other entities (via the wholesale market) and Rawhide performs much
better than Craig in providing base-load energy supply. A surplus of base load generation exists and
Rawhide can provide this portion of supply for many years. Long-term, PRPA will need more
renewable sources to reduce CO2 emissions. More flexible resources will also be required to bridge
the gap between Rawhide base load and the gas peaking units – as well as for integrating new
renewable sources. Wholesale electric supply cost increases will be required to implement resource
changes that provide reduced CO2 emissions. A range of possible cost increases was reviewed based
on modeling performed to date. Wholesale costs could increase as much as 3% more annually
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September 3, 2015
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(about 65% higher by 2035) due to CPP rule implementation. Estimates are preliminary; PRPA staff
hopes the impacts will be less severe. Detailed cost increase estimates will be available once the
CPP implementation rules are clear. Wholesale costs make up about 70% of retail electric costs.
Mr. Bleem noted a new Ozone Rule from EPA is likely to go forward this fall, which may require
reductions in oxides of nitrogen (NOX) emissions from fossil fuel facilities. This rule will likely also
involve other sources of NOX (transportation, etc.).
Discussion Highlights
A board member inquired about the base year for the CPP rule. Mr. Bleem replied the base
year is 2012.
A board member inquired about the first two items listed under 2015-16 Distributed
Resources Joint Activities: combined heat & power, and community solar. Mr. Bleem
responded there are many new activities in the area of distributed resources – in multiple
member municipalities. 2016 proposed budget items include expanded system-wide energy
efficiency and a demand response pilot; other items may be added as the budget evolves.
Mr. Phelan commented that the Fort Collins community solar garden was developed with
PRPA’s input.
A board member inquired whether PRPA will use more wind energy or more solar energy in
the future. Mr. Bleem replied that the last wind energy PRPA purchased was about half the
price of solar, but solar prices have dropped significantly over the last few years. Recent
solar prices have been about 5 cents per kilowatt hour (kWh) for large projects (30-100
MW) and about 12 cents per kWh for smaller distributed systems. Wind prices have been
less than 3 cents per kWh for large projects. PRPA will track prices for both resources,
along with transmission cost and other considerations. In current models, much more wind
than solar is assumed by 2035 due to the lower cost forecasted for wind.
A board member inquired about Clean Power Plan details. Mr. Bleem stated the Colorado
Department of Public Health and Environment is the lead agency for the CPP, but the Public
Utilities Commission may also be involved. The rule must be approved by the Air Quality
Control Commission and then by the Colorado legislature (likely in the 2018 session). State
agency staff resources for implementing the program are limited. Many stakeholder groups
will likely be involved as the rule is developed.
A board member commented there’s not much solar in the pie chart “2035 Energy Mix.” For
“Path B – Resource Changes/Mix.” Mr. Bleem stated the production cost optimization
model chooses the energy source that’s least expensive. Wind cost less than solar at this
time.
A board member inquired about hydropower in the event of a drought. Mr. Bleem replied
that in past low water years, we have received less energy, but typically still receive capacity
that can be shaped to meet higher load periods.
A board member inquired about RICE. Mr. Bleem explained that Reciprocating Internal
Combustion Engine (RICE) units typically operate on natural gas, can be added in small
increments, and can be located at the wholesale or distributed level. These units provide
flexibility to follow intermittent renewable resources. No emissions from electric generation
exist currently within the municipalities served by PRPA. Increased emissions from adding
distributed generation within the municipalities would need to be considered in future
planning.
Board members commented that the upcoming changes and possibilities are exciting.
Energy Policy Revisions
(Attachments available upon request)
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Energy Services Manager John Phelan discussed version 13.4 of the draft Energy Policy and
highlighted changes on page 5 under “Vision & Motivations.”
Discussion Highlights
A board member commented on the transitions in energy issues including efficiency,
command and control technology, greater variability of loads and potential equipment
failure, etc. The common thread is the notion that Fort Collins wants to be a leader, not just
follow or accommodate; we’re a forward-thinking community.
Board members discussed revisions to the Vision statement options and language, with
several board members in favor of #1 and several others for #2. Option #1: To support Fort
Collins’ social, environmental and economic health through clean energy systems and
efficient end-use consumption, with a long-term goal of transitioning to energy systems free
of fossil fuels. Option #2: Fort Collins will lead the transition to cleaner, more efficient,
resilient, sustainable, and local energy sources and systems while maintaining affordability,
reliability and safety.
Mr. Phelan revised the draft Vision statement during the discussion. The draft is: Fort
Collins is a leader in the transition to clean, efficient, resilient, sustainable and local energy
systems while maintaining affordability, reliability and safety supporting the community’s
social, environmental and economic health.
Board members discussed possible revisions to the Motivations list.
Next steps include a presentation at the September 22 City Council Work Session (brief
presentation and discussion), and outreach to other boards.
Mr. Phelan stated the board already approved the Energy Policy and this was meant to be an
update. The communications team will help finalize it by next Thursday for the City Council
presentation.
Board Member Reports
Vice Chairperson Phil Friedman (1) recommended board members read an article in the Fort
Collins Courier, “Aiming for Climate Action: Fort Collins sets its sights on an ambitious
plan to combat global warming” by Joshua Zaffos, and (2) mentioned a prominent solar
conference in San Diego coming up. This year the conference is split between a distributed
solar summit and solar & storage. Registration is $4,000 per person and is geared toward
high level development. He commented that there’s big movement coming up in solar
storage. Solar energy in the U.S. was at 7.7 gigawatts (GW) in 2014 and has increased to
21.3 GW 2015. Mr. Friedman stated the industry is moving at a phenomenal pace and
predicted major developments in solar storage in the next 5 to 10 years; grid infrastructure
needs to be able to absorb it.
Chairperson O’Neill will be absent at the next meeting; Vice Chairperson Friedman will
preside.
Board Member Michell flew to Los Angeles recently and stated that the number of utility-
scale solar projects he saw from the plane in Nevada and San Bernardino County
(California) is amazing; big solar arrays.
Board Member Moore encouraged board members to attend Rocky Mountain Innosphere’s
Innovation After Hours events next Thursday, which will focus on water issues.
New Business
Open Streets Event
FC Moves Program Manager Paul Sizemore reported that the next Open Streets event is on
September 20 on Remington Street. This coincides with the completion of the greenway project,
scheduled to be finished three days before the family-friendly event. Open Streets closes the street