HomeMy WebLinkAboutEnergy Board - Minutes - 08/06/2015Energy Board Meeting Minutes
August 6, 2015
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Fort Collins Utilities Energy Board Minutes
Thursday, August 6, 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, Peggy Plate, Darrin Johnson, Nick Michell, Margaret Moore.
Board Absent Board Member Michael Doss
Staff Present Lisa Rosintoski, Jacqueline Kozak-Thiel, Paul Sizemore, Lance Smith, Katherine
Martinez, Tony Raeker, Kelley Gonzales
Guests Paul Davis and Adam Perry of Platte River Power Authority (PRPA); Rick Coen of
Namaste Solar; Dale Adamy, Eric Sutherland.
Meeting Convened
Chairperson Peter O’Neill called the meeting to order at 5:30 p.m.
Public Comment
Dale Adamy of Fort Collins, who served on the Air Quality Advisory Board from 2015-
2010, stated he likes the boards and commissions process and the goals of enhancing public
participation. He submitted an idea on July 31 to City Council and staff via email (and
posted at www.kabuski.com ) regarding the pending Comcast Agreement renewal. He
commented that public participation has worked from the City side out rather than from the
citizen side in, and wants more activities centered on the “triple bottom line” concept. He
analyzed the City’s agreement with Comcast and concluded it’s a purely economic
document; there’s nothing related to the Climate Action Plan in the agreement; language
could be added regarding the environment, energy, and social issues. When TV went digital,
QAM in the televisions could allow people to have select broadcast channels without paying
Comcast for service. This topic is missing in the agreement. Mr. Adamy stated he wasn’t
sure who to send his comment to and didn’t receive much response, so he’s presenting this
idea to Energy Board first, then will contact the City’s chief information officer, Dan
Coldiron, and copy other staff. His objective is to enhance public participation. He thanked
board members for their time. He later sent a written statement via email that stated an
additional intent of his comments was to “express frustration at the obscure process for
public participation. Citizen comments, whether at boards or through conventional means,
often garners too little recognition, especially when citizens come forward with high
expectations for a professional response to a legitimate concern or contribution.”
Eric Sutherland claimed that Utilities rate payers can have power shut off to their home with
no attempt to contact them and that no other city in the country operates that way; if power
is shut off, the customer no longer has access to the online payment system. He commented
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August 6, 2015
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that those absurdities pale in comparison to the experimental rate structure approved
unanimously by the Energy Board, which, holy cow, can triple from off-peak to on-peak
rates, but there is a class of people on cash incomes who will be negatively affected by this,
and that even though time-of-use rates provide people an opportunity to reduce their bills,
rates triple in February and October. Mr. Sutherland commented that he’s seen absurd things
happen in the City and that Platte River Power Authority (PRPA) rate structure changes
should be analyzed. He commented that he guarantees no one will do anything and he will
need to file a lawsuit to shut it down.
Discussion Highlights
A board member inquired whether a citizen’s comment was true that customers are notified
with a “pink slip” only once before their power is turned off. Ms. Rosintoski replied that
Utilities sends multiple notices via customers’ monthly bills and mailed notices, and that
courtesy phone calls are no longer done due to scams, which is consistent with other
communities’ practices. The board member inquired if the citizen’s comment is true that
customers with medical conditions are in danger of dying if power is shut off. Ms.
Rosintoski replied that the Utilities Department hasn’t experienced that; staff is usually
notified if a customer has medical equipment that depends on electricity.
Strategic Financial Planning Manager Lance Smith responded to Eric Sutherland’s
comments, saying that anyone can opt out of the Time-of-Use pilot program. At the end of
12 months, if they were significantly affected by the rate, a rebate is given; staff has been
working on a low-income rate. As to the claim that the pilot program is unique, there are
other communities with optional time-of-use rate structures; the City is considering making
the structure mandatory for everybody and other communities are also considering this
option.
A board member inquired if it would be a flat rate for low income customers. Mr. Smith
replied that if a customer income is less than 80% of area median income, the rate will be
cut in half. Staff is examining offering another tier; instead of a 50% discount, if the
customer’s income is a little more, they’d receive a 30% discount, so that a slight increase in
income wouldn’t disqualify the customer from receiving a low-income rate.
A board member inquired whether energy rate discounts could be aligned with others such
as the grocery tax, etc. so that being on one list allows them to be automatically added to the
others. Mr. Smith replied that the City would like to avoid becoming another repository for
federal tax reforms and will hire a vendor to help process applications.
A board member inquired about customers’ ability to opt out of time-of-use pilot program.
Mr. Smith confirmed that customers can opt out. Participants were randomly chosen; no
specific group was targeted.
A board member commented that other communities have similar programs. Sacramento
Municipal Utility District did a similar pilot with opt-in opt-out, and that customers’ energy
usage and behavior don’t change unless you have a big jump in off-peak and on-peak rates.
He stated the California Public Utilities Commission will soon require this structure and
commented that Mr. Sutherland was blowing smoke and that clearly this isn’t some wild-
hair experiment.
A board member inquired about April and October time periods mentioned during public
comments. Mr. Smith replied that May through September is the period for the summer rate.
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Approval of July 9, 2015 Minutes
Board Member Greg Behm moved to approve the July 9, 2015 minutes with revisions
discussed and mentioned below.
Board Member Margaret Moore seconded the motion.
Vote on the motion: It passed unanimously.
Board Member Darrin Johnson abstained due to his absence at the July meeting.
Revisions to July 9 minutes
On page 4, first bulleted sentence: revise references from “Xcel” to “Hexcel,” and revise
sentence to read, “An example is Hexcel came to Windsor because they followed Vestas...”
On page 6, fourth bulleted sentence from the bottom, revise sentence to “…a board member
mentioned that the drinking water delivery system in Fort Collins is gravity-fed and uses
relatively low energy.”
On page 7, third bulleted sentence from the bottom, revise first sentence to “…mentioned
the decreasing cost of solar energy, indicated in bids by Austin Energy of less than 4 cents
per kilowatt hour…”
On page 7: second bulleted sentence from the bottom, revise to include main point that
semiconductor efficiency has increased.
On page 7, in the first bulleted item, second paragraph, revise sentence regarding solar
energy to “Today, CSU has installed 6.7 megawatts on its campuses.”
Staff Reports
(Attachments available upon request)
Introduction of new Chief Sustainability Officer Jaqueline Kozak-Thiel
Ms. Kozak-Thiel moved here 2.5 months ago from Hawaii, where she worked on sustainability
issues for the governor. She thanked the Energy Board for their volunteer service on this board,
which is greatly appreciated and valued. She commented that one of the things that drew her to Fort
Collins was the incredible commitment of citizens and City employees, and the opportunities to
collaborate with the Utilities Department. She stated we have so many wonderful assets here in
Northern Colorado. She is spending her first few months learning about the City and getting to
know the community.
Discussion Highlights
One board member commented on attending the recent boards and commissions “super
issue” meeting on broadband and social sustainability issues, mentioning that one paragraph
was disturbing, about the City’s role to provide access to service, regardless of immigration
or citizen status, which does not reflect this board member’s view due to the opinion that we
have a big problem with illegal immigration that affects our ability to provide services to
local citizens. The board member commented that having a lot of people who aren’t
supposed to be here lowers the scales and that if they’re living here illegally they should not
feel welcome; someone who breaks the law should have a fearful existence.
Ms. Kozak-Thiel thanked the board member for the comment and stated she will examine
the exact language and discuss it with the Social Sustainability staff. She stated the language
probably referred to Colorado State University’s international students. The board member
replied it would be fine to have language to not discriminate on the basis of national origin
but the recent murder in San Francisco underscores the need to avoid being a sanctuary city
for illegal immigrants. The board member commented that if their status is illegal they
should be encouraged to leave.
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A board member inquired if Ms. Kozak-Thiel plans to visit the Energy Board again in the
fall with a presentation on specific initiatives. She replied that she will be on maternity leave
in the fall and that the September 8 City Council Work Session will include a discussion on
the Climate Action Plan (CAP), in which staff will map out presentations to boards and
commissions. Utilities Customer Connections Manager Lisa Rosintoski stated she would
add this to the board’s calendar. Environmental Services Director Lucinda Smith will update
the board.
A board member commented on support of the CAP.
Board members welcomed Ms. Kozak-Thiel to Fort Collins.
Light & Power Mid-Cycle Budgeting for Outcomes (BFO) Offers
(Attachments available upon request)
The City’s biennial budget cycle requires expenses for the second year to be forecasted 18 months
before the second year begins. Strategic Financial Planning Manager Lance Smith summarized the
seven offers included in the materials, four of which will be submitted to City Council for
consideration. The offers were Climate Action Plan – Water Reclamation Biogas to Co-Gen,
Climate Action Plan – Energy Code Performance Program, Climate Action Plan – Innovative
Financing Solutions, Major Duct Banks and Circuits Funding Increase, Solar Renewable Energy,
Energy Services Program Funding, and Peak Partners Demand Response Program.
Discussion Highlights
A board member inquired about the amount of annual energy savings. Mr. Smith replied it’s
$250,000.
A board member inquired about the budget teams. Mr. Smith replied there are two citizen
representatives on both teams, and City staff. Each team corresponds with one of seven
topics and examines the offers and creates a list of prioritized projects, which depends on
funding source. The General Fund has a certain amount of money available; it may be that a
project higher up on list isn’t funded because funds aren’t available. BFO teams prepare the
prioritized list, submit it to the City Manager’s Office (CMO) Budget Lead Team, which
takes rankings into consideration and creates the CMO budget to submit to City Council for
review.
A board member inquired about mid-cycle budget offers that are not being considered. Mr.
Smith replied that the LED street lighting idea is not a Council priority and was therefore
not considered. Funding for all offers is coming out of reserves. Additional revenues from
Light &Power will not fund the offers.
The Climate Action Plan Energy Code Performance Program budget offer contains a
contractual full-time-equivalent (FTE) position. A board member inquired whether it was a
one-year contract. Mr. Smith replied that it is, and if they want the position to continue
beyond one year, the request would be submitted as part of regular budget. Ms. Rosintoski
commented that the position offers an opportunity to partner with the Building Department
and manage the energy code. Ms. Smith added that it would allow the City to evaluate new
models of buildings submitted and would include field testing.
A board member inquired if the duct bank budget offer would be paid back by expansion
fees. Mr. Smith replied that it would. The project would allow Light & Power to pull cable
through when development occurs. About $4 million of duct bank work is planned for this
year.
A board member commented it seems strange that staff wouldn’t be able to anticipate a $5
million need during the regular budget cycle. Mr. Smith replied that staff is moving to a
more transparent process, similar to the wet utilities, so that there is, for example, a non-
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lapsing appropriation for cable and transformers repair and replacement, to use when
needed, to avoid special appropriations.
A board member inquired about the solar rebate program cost. Mr. Smith replied Light and
Power’s operating budget this year is $129,961,922 million, the majority of which is for
purchasing power. The board member asked whether the City is giving rebates to people
who could’ve afforded to install solar system regardless of receiving a rebate. Customer
Services Manager Paul Davis of Platte River Power Authority (PRPA) replied that most
customers don’t do projects unless they will receive a rebate.
Rick Coen of Namaste Solar commented that utility incentives actually skew the market. He
commented that with the federal tax credit expiring next year will affect some customers’
plans for projects.
A board member commented that since City staff is trying to stretch out the solar rebate
program money throughout whole year, 2016 might be the year to encourage more people to
participate.
A board member inquired what the board is being asked to recommend. Mr. Smith replied
that the first four offers listed will proceed in the process and didn’t know until yesterday
that the last three offers wouldn’t be included. A board member commented being highly
disappointed the solar offer isn’t going to be included in the staff recommendation.
A board member inquired about the ideal time to make a recommendation. Mr. Smith
replied the board can make a recommendation now or later. The board member suggested
tabling this item until the board has a better idea in September what will likely to be funded.
A board member commented that it would be better to make a recommendation now instead
of waiting until it’s a done deal.
Board Member Greg Behm moved for the Energy Board to support the mid-cycle budget
offers as presented and Chairperson Peter O’Neill will write a memo outlining the
recommendation.
Discussion of Motion
Mr. Smith commented that the City Manager has seen the seven offers.
A board member inquired whether the $325,000 is best spent on general solar rebates or on
community solar because it might nudge people to consider installing solar panels on their
homes. Ms. Rosintoski stated the offers were selected to help the Utilities reach its goal.
With community solar, another location would be necessary. Staff is working with PRPA to
identify a location, taking into consideration environment and community.
A board member commented that the board will look foolish if they recommend offers they
know are no longer being considered.
Vote on the motion: It passed unanimously.
Climate Action Plan Implementation
(Attachments available upon request)
Environmental Services Director Lucinda Smith introduced Environmental Planner Tony Raeker,
the City’s new green-built coordinator. Mr. Raeker has worked in sustainability and as an urban
planner.
He and Ms. Smith commented that the Climate Action Plan implementation strategy is in
development. The framework identifies broad strategies, and staff is developing work plans. They
adopted aggressive goals in March 2015; the major categories include building, transportation,
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energy supply, and waste reduction. Ten strategic initiative teams have formed. The CAP
Implementation Executive Team meets biweekly. Ms. Smith commented that a lot of work has
happened by staff in a short amount of time and this is just a start. Messaging and community
engagement are next. A lot is happening behind the scenes, such as preparing quarterly progress
reports to City Council and for the website, outreach to community and input.
Next steps include the Sept. 8 City Council Work Session and feedback on a community advisory
committee. The Sept. 22 City Council Work Session will include a presentation on the Energy
Policy final draft.
Discussion Highlights
A board member inquired about how much City staff jobs are devoted to CAP in addition to
existing workloads. Ms. Smith replied that employees have been amazing in finding ways to
accommodate the additional work. Teams are examining what additional resources are
needed.
A board member commented the City’s adoption of the CAP has motivated large business
and others in the community to examine how they can be in alignment with it and what they
can they do, and that there’s a lot of momentum. The board member thanked the City for
making this happen.
Efficiency Works Review of Programs with Platte River Power Authority (PRPA)
(Attachments available upon request)
PRPA Customer Services Manager Paul Davis summarized the Resource Planning Guidelines,
including 20% carbon reduction by 2020 and 80% by 2050, lowest wholesale rates in the state; and
the Resources Planning Status Update: 60 megawatts (MW) of wind energy completed in 2014;
Rawhide Flats Solar (increased from 25 to 30 MW) in 2016). PRPA board direction includes
expanding efficiency programs, demand response pilot program and developing an exit strategy for
Craig Unit 1.
Plans include Efficiency Program expansion over five years, expanding the program budget, and
increasing program staffing: a 1.5 full-time-equivalent (FTE) change for 2016 budget and additional
staff in future years, and common programs across all four member cities: Longmont, Loveland,
Fort Collins, Estes Park. Efficiency Works website www.efficiencyworks.co or call 877-981-1888.
Program offers free technical support for business.
Covered Energy efficiency history and growth: Cumulative Savings Results (2002-2014), energy
136 gigawatt hours (GWh)/year (4.2% of load); Demand: 23 MW peak (3.5% of demand,
contributes to two-year delay for new peak generation).
A board member inquired how homeowners know this program exists. Mr. Perry replied that
the different member cities have different methods. The City of Fort Collins has used
postcards, inserts, benches, posters around town, and notices. Ms. Rosintoski added that
email links are included in customers’ monthly bill.
A board member commented there is a downside to all-electronic billing; some people don’t
read the information. Ms. Rosintoski replied that staff has heard the spectrum of reasons;
some throw out postcards and inserts.
A board member commented on receiving an enewsletter; staff replied that Keep Current
notices go to commercial customers who either signed up for it or participated in a program.
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A board member inquired about cost of audit for residents. Mr. Perry replied that on the
residential side, the out-of-pocket cost is $60. A board member inquired on how soon
consumer needs to do work after the audit. Mr. Perry replied there’s no formal limit for
residents. An audit is required to receive rebates.
A board member inquired whether the lack of rebates on compact fluorescent lightbulbs
(CFLs) signals their demise. He noticed a smaller selection on CFLs at the hardware store
compared to a few years ago. Mr. Perry replied the capabilities of LEDs represent what
people don’t want in CFLs (mercury, etc.).
2015 Energy Policy
(Attachments available upon request)
Utilities Customer Connections Manager Lisa Rosintoski reviewed substantive changes to the draft
Energy Policy and explained how metrics fit into final policy. She commented that Energy Services
Manager John Phelan had completed general editing and clean up for consistency, links to Platte
River Power Authority, etc.
Discussion Highlights
A board member inquired about the “by sector and fuel source” phrase and stated fuel
source is not the correct terminology. Another board member suggested deleting the word
“fuel” from fuel source. The board decided to do so.
A board member inquired what action is expected by the board at this time. Ms. Rosintoski
replied action to approve the draft and write a memo to City Council so that the policy can
be finalized and included as part of the Agenda Item Summary (AIS) to be presented to City
Council.
Board Member Greg Behm moved to approve the draft Energy Policy as presented with
changes as discussed.
Board Member Margaret Moore seconded the motion.
Vote on the motion: It passed unanimously.
Board Member Reports
Regarding the public comment period, Board Member Greg Behm reminded board members
that the meeting is public and everything is on the record.
o A board member inquired whether the board is expected to reply to a citizen’s
statements during the public comment period. Staff replied that it is not.
o A board member commented that City Councilmembers don’t respond to public
comments at the time comments are made during City Council meetings.
Board Member Stacey Baumgarn took a tour of rooftop solar installations on the Colorado
State University (CSU) campus.
Chairperson Pete O’Neill attended the Institute of Electrical and Electronics Engineers
(IEEE) conference sessions in Denver last week as a volunteer; this is the annual worldwide
conference of power engineers. One “super session” focused on four different business
models from California Independent System Operation (CaISO), a DSO distributed system
operator. He will send his notes to board and staff. (2) He and Board Member Phil Friedman
participated in the citizens’ panel to interview three candidates for the Light & Power
Operations Manager. He stated they were disappointed with the candidate pool and
weaknesses in understanding of the triple bottom line and sophistication of city residents’
views on renewable energy and carbon savings, and experience operating a distributed