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HomeMy WebLinkAboutEnergy Board - Minutes - 01/08/2015Energy Board Meeting Minutes January 8, 2015 1 Fort Collins Utilities Energy Board Minutes Thursday, January 8, 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 Lisa Rosintoski, 416-2432 Roll Call Board Present Chairperson Greg Behm, Vice Chairperson Peter O’Neill, Board Members Darrin Johnson, Phil Friedman, Michael Doss, Nick Michell, Stacey Baumgarn, Margaret Moore, and Peggy Plate. Staff Present John Phelan, Tom Rock, Lucinda Smith, Paul Sizemore, Lisa Rosintoski, Kevin Gertig, Randy Reuscher, Lance Smith, and Katherine Martinez Guests Rick Coen, Brad Decker/Platte River Power Authority, David Smalley/Platte River Power Authority Meeting Convened Chairperson Behm called the meeting to order at 5:30 p.m. Public Comment None Staff Changes Customer Connections Manager Lisa Rosintoski announced that Light and Power Operations Manager Steve Catanach resigned recently (his last day was January 7) and apologized that the news wasn’t communicated to the board earlier. Ms. Rosintoski stated that she or Utilities Executive Director Kevin Gertig will serve as Staff Liaison, and will email an official notice to the board regarding Mr. Catanach. Approval of November Minutes Chairperson Greg Behm explained that although the board voted at the last meeting to approve the November minutes, a motion was not made; therefore the board must make a motion and approve the November minutes. Board Member Phil Friedman moved to approve the minutes of the November 13, 2014 meeting. Board Member Stacey Baumgarn seconded the motion. *Board Members Margaret Moore and Pete O’Neill arrived after the vote. Board Member Darrin Johnson abstained; he was not appointed to the board until December. Vote on the motion: It passed with 1 abstention Energy Board Meeting Minutes January 8, 2015 2 Approval of December Minutes Board Member Stacey Baumgarn moved to approve the minutes of the December 4, 2014 meeting as written. Board Member Nick Michell seconded the motion. *Board Member Darrin Johnson abstained; he was not appointed to the board until December. Vote on the motion: It passed with 1 abstention Board Member Margaret Moore joined the meeting at 5:36 pm. Discussion Highlights  A board member praised the quality of past meeting minutes and suggested attributing specific board member names to comments instead of “A board member inquired…” and “A board member commented….” The Board Secretary and Chairperson Behm explained that meeting minutes must not contain board member names in connection with specific comments, per the City Attorney’s Office. Staff Reports FC Moves Program Manager Paul Sizemore reported that City Council adopted the Bicycle Master Plan: http://www.fcgov.com/bicycling/bike-plan.php. Staff is preparing for implementation. Time-of-Use (TOU) Rate and Low-Income Rate (Attachments available upon request) Chairperson Behm announced that this item was for information only, as an update prior to the January 27 City Council Work Session. Strategic Financial Planning Manager Lance Smith introduced Utility Rate Analyst Randy Reuscher to summarize the proposal for a Time-of-Use (TOU) pilot program for residential customers. Customer Connections Manager Lisa Rosintoski presented information on low-income rates. TOU Rates: TOU offers simplicity to customers: knowing peak and off-peak time windows and the opportunity to reduce energy costs. The proposed rate structure would eliminate the need for a separate Residential Demand rate class for all-electric houses and allows customers to reduce their bills in two ways: by reducing total consumption and/or by adjusting energy consumption during peak and off-peak times. The pilot group would include about 1,000 residential participants, an opt-out strategy to allow customer choice, and random selection of residential energy customers (excluding net metering customers and excluding Option 2 and 3 customers*). Customers would receive a cost comparison and credit based on “best bill guarantee” reconciliation: if they would have paid less in energy costs during the previous six months, they will receive a credit. The TOU with Tiered Surcharge Rate chart showed an example of on-peak and off-peak times. *Option 2 and Option 3 customers are those who opt out or those who don’t have Utilities collecting 15-minute interval data from their meters. Next actions include City Code modifications to be presented in spring 2015 and the pilot program launch; data review and a staff recommendations presentation in the fourth quarter of 2015; and TOU implementation in 2016. Low Income Program: Ms. Rosintoski summarized the purpose of evaluating existing programs (Payment Assistant Fund): to design a comprehensive offering to low-income customers that Energy Board Meeting Minutes January 8, 2015 3 incorporates energy efficiency, education, and community collaboration and empowers them to reduce electricity and water use and lower their bills, as well as avoid shut-offs. The evaluation team included representatives from four local non-profit organizations to guide recommendations. Data included understanding how Utilities can provide incentives, its breadth and width of support for low income customers), criteria, scenarios (seven total listing all the ways you can provide that service based on your role), and recommendations. Identified Barriers included lack of access to locations of trust (such as churches), convenience, and transportation. One customer remarked they had to complete 15 forms to apply for assistance. The proposed program would reduce such duplications. Staff identified types of low income: chronic (i.e. they reached a plateau in salary) and temporary (lost their job or had medical issues). The Utilities Role graphic showed four categories: rates, funding (give customers the opportunity to donate), administration (Utilities works with Catholic Charities, which sets up appointments, and partners with the City Rebate department, which provides the application), and efficiency and conservation education. Mr. Reuscher explained PowerPoint slides on topics of Census Block Data (two people per household), Area Median Income (AMI), AMI vs. Electric Cost as % of income chart. One example is customers who are at 50% AMI will receive a 30% discount under the proposed program. Discussion Highlights  A board member inquired about the language “allows customers to reduce their bill in two ways, by reducing total consumption and by adjusting when they consume” and stated that everything he’s read about TOU is it doesn’t reduce total consumption. Mr. Reuscher replied that the reasoning is based on, for example, customers who aren’t home during the day and therefore don’t run their air conditioning; they won’t use air conditioner in the evening to make up for it. Staff believes there will be a net reduction.  Board members commented the language implies customers will be able to reduce total load, when in fact staff doesn’t know that for sure. Mr. Smith explained the current structure allows only one method to reduce bill: reduce consumption. The proposed plan adds a second option of shifting load (consuming energy during off-peak times) to reduce consumption. Mr. Reuscher stated the idea is if the customers reduce consumption during peak times, they will reduce their costs. Mr. Smith stated the pilot program will help staff understand whether customers will be able to reduce their energy costs using this method.  Mr. Phelan suggested adding language “complementary” to the options of reducing customer’s energy costs.  A board member inquired if on/off-peak hours will be in effect year-round. Mr. Reuscher replied they would. Another board member inquired if peak times would be adjusted for weather. Mr. Reuscher replied no.  A board member stated there are 280 residential customers of 344 total in the City’s photovoltaic (PV) program, which implies a potentially ground-breaking study. (The 64 commercial PV customers wouldn’t be able to participate in the study.) He commented that to exclude the net-metered (solar) customers is to miss an opportunity; he suggested a separate study of only net-metered customers, with a small sample and random curve of sizes and types, so that staff will know how TOU affects those customers; it’s especially important because this might be a one-time opportunity to do this study.  A board member inquired about a scenario in which his water bill is $60 and his electric bill is $5. Mr. Smith replied that Mr. Reuscher would explain the rationale behind the proposal; the same could be applied to water and stormwater. The board member stated he hopes staff is taking a holistic approach. Ms. Rosintoski replied staff is focusing on energy for the TOU Energy Board Meeting Minutes January 8, 2015 4 pilot program, and agreed that it would be a good idea to consider the same water and wastewater in the future.  A board member inquired whether Xcel Energy has a program for low-income customers. It does. Low-Income Energy Assistance Program (LEAP) helps income-qualified individuals pay their winter heating bills from November 1 to April 30. Ms. Rosintoski stated staff researched other utilities with low income programs. Mr. Phelan mentioned that other state- funded assistance programs exist.  A board member inquired whether there are any other social welfare organizations that Utilities will work with, like Neighbor to Neighbor, Project Self-Sufficiency, or Larimer County Workforce Center. Ms. Rosintoski stated United Way 211 was on the project team.  A board member commented on the need to ease the administrative effort for low-income customers, such as mentioning that if they qualify for one program then they may qualify for another program.  Board members suggested revising the “take rate” term to “participation rate” to clarify.  A board member inquired if there’s a way to package program items. Ms. Rosintoski stated free energy efficiency audits are offered to customers, many of whom are renters who can change things like light bulbs. Mr. Phelan stated that the City partners with the Larimer County Conservation Corps for this annual program (install LED/compact fluorescent light bulbs (cfl), water conservation, programmable thermostats), which started last week. The goal this year in Fort Collins is 400 households, apartments and single family homes. Participants don’t have to be low-income although 80% are. This program provides job training for young adults and could be expanded.  A board member commented that they’re uneasy when rates change at the same time a new rate structure in introduced, because they can’t know whether they saved money. It complicates customers’ understanding. Another board member agreed. Climate Action Plan (Attachments available upon request) Environmental Services Director Lucinda Smith summarized changes in the analysis and strategies. Analysis: incorporated Platte River modeling results, removed airline travel from quantification, cost of carbon for all fuels. Strategies: reduced number of existing building that are net zero, increased number of new buildings that are net zero, reduced number of new vehicles that need to be electric vehicles. The PowerPoint slide Platte River Generation by Source chart showed the overall load decreasing from 2015 to 2035. Ms. Smith and Brad Decker of Platte River Power Authority emphasized that these are models, not action plans. Ms. Lucinda Smith stated the model shows net cost, then net cumulative savings in 2030. Staff can’t speak to individual costs for types of users yet, but they know the public is interested in that information. A subcommittee (led by Economic Health Director Josh Birks) is researching finance tools. Analysis shows savings from the proposed scenario occurring at 2030 and continuing through 2050. CAP next steps include final scenario adjustments in January; Citizen Advisory Committee final meeting on January 21; draft CAP framework document in January; open houses on January 22 and January 29, coordination with Energy Policy updates (January/February), public engagement (January/February), and City Council action on Feb. 17. Discussion Highlights  A board member inquired whether the Energy Board will be asked to take action on the CAP. Ms. Smith replied action will be requested. She will make formal recommendation at Energy Board Meeting Minutes January 8, 2015 5 the February 5 board meeting. Mr. Phelan stated that regarding coordination with the Energy Policy, some of the targets and goals will depend on City Council’s action on the CAP.  A board member commented that this CAP builds tremendously on the prior version, in part due to PRPA’s involvement, which was absent in the 2007 version. Ms. Smith agreed, but emphasized that the information is presented as planning documents and modeling; it’s not a commitment.  A board member commented everything should be including as a potential heat source, such as electric baseboard heating and ground source heat pumps, although their high expensive is a concern.  A board member inquired whether there’s any way to offset projected electric vehicle (EV) use. Mr. Decker replied the model attempts to meet CO2 targets; distributed solar rooftop is included in the model. He reiterated Ms. Smith comment that the modeling doesn’t represent a commitment at this point to close Rawhide Energy Station. He stated the commitment is to reduce CO2, but the extent it takes to get to these very ambitious CAP targets, a lot would need to happen to meet the targets.  A board member inquired about the progress of the other three cities-PRPA owners in reducing CO2. Mr. Decker replied that Fort Collins is definitely at the forefront of climate planning. Ms. Smith stated it’s important for the City to coordinate with the other three cities.  Board member commented on being disappointed that the Rocky Mountain Institute’s Stepping Up report contained only a few sentences on heating, and doesn’t say much about fuel switching. They stated it needs specificity, such as ground source heat pumps, then next step infrastructure, and where wells will be. A huge portion of energy is not addressed.  A board member commented that if the City is going to burn coal, then do it really well; they praised PRPA.  A board member inquired about solar energy. Mr. Decker stated PRPA just entered into a contract for 25 MW of solar energy starting in 2015. At the time PRPA ran these models, City Utilities community solar didn’t exist, so it doesn’t show up on chart.  A board member inquired about goals. Mr. Decker stated there are two goals for the City: reduce emissions by 2020, and reduce by 80% by 2030 so Rawhide comes out of service to match with those goals. On-Bill Financing City Code Amendments and Program Revisions (Attachments available upon request) The Home Efficiency Loan Program ─ consisting of loans for energy efficiency, renewable energy and water service line repair ─ started January 2013 and was revised January 2014. Single family and town homes are eligible. Rental properties are eligible; owner makes loan payments. Monthly payments are listed on customers’ utility bills along with other services. The existing program bases qualification on bill payment history and credit score; has an interest rate of 5% or 6%, term of five, seven, or 10 years; is recorded with a Deed of Trust. Project scope is determined by the customer; most are insulation and air-sealing, furnaces, air conditioning, windows, and water service line repair. The revised program consists of code amendments to revise allowable interest rate range (2.5 to 10%), revise fee language to refer to Rules and Regulations, and add loan language to small business rate classes. Rules and Regulations revisions include extending the allowable term to 15 years, single credit score threshold, and changing to Uniform Commercial Code (UCC) filing for recording to streamline the application process. Other similar programs with UCC filing have an extremely low default rate. Energy Board Meeting Minutes January 8, 2015 6 Timeline for the revised program: revised residential program parameters in February, loan program available to small business customers in April, and rental and lease property customer billing enabled in January 2016. Interest rate proposed for 2015 is 4%. The revised program features an extended term and lower interest rate. Discussion Highlights  A board member inquired whether homeowners have to pay off their loans if they sell their house. Mr. Phelan replied yes.  A board member inquired about renters. Mr. Phelan stated the system doesn’t have the capability now to transfer from the loan payments from rental to rental.  A board member who applied for and received a loan commented that the application was extensive, like a mortgage, and didn’t like that it was recorded with a deed of trust against the owner’s property, which would require payoff if owners want to refinance their mortgage.  A board member inquired about barriers; the program has had low participation. Mr. Phelan stated the goals are to complete projects, not necessarily to loan money. A loan is simply an option; it’s not the only way. Board Member Marge Moore made a motion for the Energy Board to recommend City Council adopt the ordinance being presented for first reading on January 20, 2015 amending the City Code to modify on-bill utility financing terms and allow for on-bill utility financing of business customers. Board Member Pete O’Neill seconded the motion. Discussion on motion: A board member commented this is the right direction to head. Another board member commented that they really like on-bill financing to adjust it and make it more viable. One board member said they were going to abstain not because they don’t agree with the revisions, but because they don’t feel comfortable making a decision due to receiving the information without adequate time to review it before the meeting, especially the edited document showing changes. The board member stated they don’t want to vote no; they don’t disagree with it, but stated they can’t vote yes. Vote on the motion: It passed with 1 abstention and 1 nay. The board member who voted nay said they did so to support another board member’s abstention and concern about not receiving the meeting materials for this agenda item with adequate time to review the information and make an informed decision. Draft 2014 Annual Report Chairperson Greg Behm apologized for the delay in sharing the draft 2014 Annual Report with the board; he had been ill and was not able to email it until January 7. Board member Baumgarn made a motion that we accept this annual review report as written tonight pending any minor, non-substantive changes submitted via email to Chairperson Behm and to be submitted to the City Clerk. Board Member Phil Friedman seconded the motion. Energy Board Meeting Minutes January 8, 2015 7 Discussion on the motion: Chairperson Behm mentioned that in reviewing all 2014 minutes for staff reports, there were too many non-action items such as staff and board member reports to include in the Annual Report, but they’re referenced. A board member suggested including the Energy Board’s involvement in CAP Citizens Advisory Committee meetings; two board members are CAC members. Vote on the motion: It passed unanimously with 1 abstention. Board Member Reports  Board Member Baumgarn encouraged board members to apply for the Natural Renewable Energy Laboratory (NREL) Leadership Program applications are due January 16, and the program is held at ENREL in Golden, Colorado. The program requires one weekend a month for five months and is an amazing opportunity to learning and network.  Board Member Marge Moore encouraged board members to attend the mentioned the Northern Colorado Business Innovation Conference: http://www.fcgov.com/climatewise/2014_business_innovation_fair.php  Board member Friedman mentioned that he receives the City’s e-newsletter on renewable energy, http://www.fcgov.com/solar, and stated it was wonderful to see the increase in solar energy produced from 2004 to 2014. Senior Energy Services Manager Norm Weaver told him the first phase of the City’s community solar program is 80 percent subscribed and is expected to be fully subscribed by midsummer: http://www.fcgov.com/utilities/residential/renewables/fort-collins-community-solar. Board Member Friedman encouraged members who are thinking about subscribing to avoid any delay in making a decision.  Board Member Friedman mentioned the Colorado Solar Industry Association’s annual conference is in Broomfield, Colorado February 23 - 25: http://coseia.org/conference/ and is one of top five solar conference in the U.S. Board Officer Nominations Nominations are taken at the January 8 meeting as well as at the February 5 meeting; the board will have an election at the February meeting. Board members can nominate themselves or other. The election will take place just after the staff reports portion of the agenda, and the new chairperson will be run the meeting after that agenda item. Candidates: Chairperson: Pete O’Neill. Vice Chairperson: Phil Friedman New Business None Other Business None Future Agenda Review Staff, the chairperson and vice chairperson will continue monthly prep meetings to review the agenda for the following month. Board members should forward any agenda item suggestions to the chair or vice chairperson for the February and March meetings.