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HomeMy WebLinkAboutEnergy Board - Minutes - 06/04/2015Energy Board Meeting Minutes June 4, 2015 1 Fort Collins Utilities Energy Board Minutes Thursday, June 4, 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, Board Members Darrin Johnson, Nick Michell, Michael Doss, Peggy Plate. Board Absent: Vice Chairperson Philip Friedman, Board Members Greg Behm, Stacey Baumgarn, and Margaret Moore. Staff Present Lisa Rosintoski, John Phelan, Cyril Vidergar, Paul Sizemore, Randy Reuscher, Norm Weaver, Renee Davis, and Katherine Martinez Guests James Johnesee, Rick Coen, Kevin Jones, Kevin Cross, Paul Davis/Platte River Power Authority Meeting Convened Chairperson Peter O’Neill called the meeting to order at 5:30 p.m. Approval of May 7, 2015 Minutes Board Member Darrin Johnson moved to approve the May 7, 2015 minutes as written. Board Member Nick Michell seconded the motion. Vote on the motion: It passed unanimously. Board Member Michael Doss abstained due to his absence at the May meeting. Public Comment  Kevin Cross of Fort Collins Sustainability Group read a written statement on behalf of the organization, which was established in 2005. (See full statement, attached.) Excerpt: “The Fort Collins Sustainability Group has reviewed the draft Fort Collins Energy Policy dated April 9, 2015. We fully endorse the policy’s vision…We are pleased to see multiple references to the 2015 Climate Action Plan…along with support for the goals in that plan, which are to reduce community-wide greenhouse gas emissions 20% by 2020 and 80% by 2030 compared to 2005 levels, and to achieve carbon neutrality by 2050. “…The electric energy savings target adopted for the period 2009-14 was 1.5% per year. We are curious about the actual results for that time period, and would like to see those referenced in the 2015 Energy Policy. The residents of Fort Collins have a right to expect accountability from their municipal utility…”  In reply, Energy Services Manager John Phelan stated the 2014 Energy Policy Update was completed today, will be presented to City Council next week, and will be available at www.fcgov.com. The update includes information on electricity savings. Energy Board Meeting Minutes June 4, 2015 2 Utilities Customer Connections Manager Lisa Rosintoski stated she received two emails commenting on the draft energy policy, and will forward them to the Energy Board. Staff Reports (Attachments available upon request) Update on Boards & Commissions Energy Policy Presentations Utilities Customer Connections Manager Lisa Rosintoski gave an update of presentations to other City boards and commissions on the draft Energy Policy. Two more presentations remain. She stated the other boards appreciated the information and offered comments. A sampling:  Downtown Development Authority board recommended focusing on how to reduce reliance on cars, to avoid continuing to build structures to house cars. One board member is a county commissioner; he asked the Energy Board to treat Larimer County as one of its partners for many reason, one being that the county operates the landfill.  Economic Advisory Board requested showing more visuals of where the City’s renewables are located and what they look like, and how the Energy Policy can help with reliability. It also stated an economic conversation is necessary, including addressing how much of the changing infrastructure ends up in the landfill.  Natural Resources Advisory Board focused on energy storage, project costs of electricity to consumers, and asked whether natural gas figures into the Energy Policy scenarios. One member commented having to give serious thought about whether to become a Peak Partner subscriber due to concerns about cybersecurity and threats posed by hackers.  Planning and Zoning Board members asked how the Energy Board could partner with them on Building Code policy and incorporating them into buildings’ energy performance. The Land Use Code offers another potential opportunity, as does roof top solar. Discussion Highlights  A board member commented on the great connections between the Building Code and Energy Policy.  Board members expressed appreciation for the presentations and comments from various boards. New Planning, Development, and Transportation Director FC Moves Manager Paul Sizemore announced that Karen Cumbo is retiring this week and Community Development & Neighborhood Services Director Laurie Kadrich is replacing her as director of Planning, Development, and Transportation (PDT) on the City’s Executive Leadership Team. Kadrich will oversee the seven departments within PDT. Mr. Sizemore called Kadrich a great candidate for the job. A lot of planning projects are in the works: Downtown Plan, Old Town Neighborhoods Plan, and West Elizabeth Enhanced Travel Corridor (from Shields Street to Overland Trail) and an Open Streets event is taking place this Sunday, June 7 on that stretch of West Elizabeth Street, open to all forms of active modes of transportation, such as walking, bicycling, and rollerblading, and closed to automobiles.  A board member inquired about the definition of “enhanced travel corridor.” Mr. Sizemore replied it’s one of most important concepts in transportation planning. It examines transportation as a whole, identifies high volume routes, and aims to invest in multi-modal transportation to enhance all modes of travel on those corridors. In Fort Collins, an example of an enhanced travel corridor is Mason Street/College Avenue, with MAX public transportation and the Mason Trail opening up to bicycles and pedestrians. This north/south Energy Board Meeting Minutes June 4, 2015 3 spine now serves all modes of transportation. The goal is to do the same for other heavily used north/south and east/west routes throughout the City.  Mr. Sizemore commented that the plan for Harmony Road Enhanced Travel Corridor (ETC) was completed (adopted by City Council on July 2, 2013) and staff seeks a grant opportunity to fund the project. West Elizabeth Street transit ridership is so high due to students traveling to Colorado State University that the opportunity for Federal Transit Administration (FTA) funding would probably come sooner for that corridor than for Harmony Road. Time-of-Use Pilot Study (Attachments available upon request) Utility Rate Analyst Randy Reuscher gave an update on the Time-of-Use (TOU) Pilot Study, which he presented to the Energy Board and to City Council in January. A Council ad hoc committee of two City Councilmembers and staff met. An agenda item on the proposal, presented to the Energy Board tonight, will be presented to City Council for a first reading on July 7. Mr. Reuscher discussed the confirmed scope of the pilot study and the four main objectives, rollout of the two TOU rate structures, the best bill guarantee reconciliation at the study’s conclusion, and the inclusion of a sampling of net metering customers. He also showed charts that showed Standard TOU rates and TOU with Energy Efficiency Tier rates, non-summer and summer rates, and On Peak, Off Peak rates. Mr. Reuscher stated that customers using solar panels will receive credit for any energy they return to the system. Next Actions include requesting City Council approval in July, sending rate communications to selected customers in August, launching pilot studies in October, data analysis through 2016, and sharing data and staff recommendation in late 2016. Discussion Highlights  A board member inquired about net metering customers. Mr. Reuscher replied that nearly 300 residential customers exist; those in the TOU pilot group who end up paying more than they would have under current billing structure will receive a credit on their bill.  Senior Energy Services Engineer Norm Weaver commented that Utilities had conversations with customers who were interested in TOU rates and stated that there will come a point when customers consider whether TOU rates are best.  A board member commented this will be a big driver if TOU rates are implemented within the next two years and customers are installing solar panels they expect to last 25 years.  A board member inquired whether cloudy afternoons will affect customers. Mr. Weaver replied that while it’s a measureable trend, staff hasn’t seriously studied it due to the belief that it will not have a strong effect.  Mr. Phelan commented that once City Council adopts TOU rate structures for the pilot study, staff will have the information to provide more specific scenarios regarding the effects of solar installations on customer bills. Utilities may have to review the current solar rules regarding how incentives relate to solar system orientation.  Ms. Rosintoski commented that the pilot study is meant to quantify a lot of the questions board members are asking, with the understanding that customers are making investments in solar energy.  A board member inquired whether customers have an opportunity to opt out of the study. Mr. Reuscher replied that yes, customers will have the opportunity to opt out until late September and will receive a letter, a postcard reminder, and an invitation to get their Energy Board Meeting Minutes June 4, 2015 4 questions answered at an open house event. If they don’t respond by a certain date they will be enrolled in the study.  A board member inquired if renters will be included in the pilot study. Mr. Reuscher replied that they are, and that the only exclusions are Option 2 and 3 customers, and customers on medical rates.  A board member inquired whether bill will show a comparison of TOU rates and what they would have paid under current rates. Mr. Reuscher replied no. Customers will be able to review their energy usage from the same month of the previous year.  Ms. Rosintoski advised that along with notifications to customers, Utilities will host meetings with the selected customers to review the time-of-use rate, best bill guarantee and offer home efficiency and conservation tips based on the time-of-use rate structures.  A board member inquired about discussion in January about plans for only one study. Mr. Reuscher replied that after discussions, staff felt comfortable with the ability to do two studies.  Board members inquired about a memo to City Council supporting the proposed pilot studies, and Ms. Rosintoski replied she will draft the memo, and email it to Chairperson Pete O’Neill and key staff for review. Board Member Nick Michell moved that Chairperson Pete O’Neill or his designee write a memo to City Council endorsing the proposed TOU pilot program. Board Member Michael Doss seconded the motion Vote on the motion: It passed unanimously. Solar Program Update (Attachments available upon request) Senior Energy Services Engineer Norm Weaver gave an overview of solar programs “yesterday and today,” 2.8 megawatts (MW) of cumulative installed capacity in the first quarter of 2015 compared to 4.3 MW in the second quarter, an increase of 65%. Solar energy’s upward trend is due to the City’s solar rebate program expanding each year and encouragement from citizen and stakeholder groups to implement feed-in tariff (commercial) and community solar programs. The City’s Riverside Community Solar garden is under construction and will begin service in July. Mr. Weaver stated the City has committed all of the allotted solar rebates funds, and the list of interested customers has doubled. Most of the interest has been for residential solar; there is one commercial rebate slot remaining. He gave an overview of Fort Collins Solar Programs, including Riverside Community Solar with four or five of 20 rows of solar panels already installed, and the Commercial Solar Power Purchase Program (SP3). Platte River Power Authority (PRPA) plans for 22 MW+ in 2016, which would provide solar energy for the equivalent of approximately 3,400 typical Fort Collins homes. Discussion Highlights  A board member inquired how to accelerate progress in solar energy. Mr. Weaver replied that it depends on funding received. Mr. Phelan commented that the City of Longmont had a rebate for a few years but very little to none since then, and the City of Loveland hasn’t had any solar rebates; they have only a handful of solar customers. In Fort Collins, comparing last year to this year, the rebate was cut by a third and customers are still interested.  A board member inquired about feed-in tariff program for the commercial sector, and whether, considering all the roofs, flat spaces in the City, entrepreneurs and third parties Energy Board Meeting Minutes June 4, 2015 5 might be interested in leasing roof space to avoid taking up more ground for solar. Mr. Weaver replied that the current feed-in tariff (also known as the purchase power program) has been used by CSU, which contains a lot of leased space for solar panels on campus. CSU knew they would own the buildings in perpetuity; a total of 26 different projects exist, and 14 were able to convert to final completed projects.  The same board member commented we need to accelerate progress, especially with City Council endorsing energy conversion; it’s time to prod City Council. Ms. Rosintoski showed a pie chart at www.fcgov.com of the Light & Power budget: 7% goes to Renewables/Energy Efficiency.  Community member Rick Coen commented that the City should take advantage of the federal tax credit that has been extended, the “3x multiplier,” which will sunset at the end of 2016. After that, everything will cost 30% more.  Board members agreed. They recommended grabbing that opportunity while it’s available because the City needs to increase solar energy exponentially, figuring out goals and how to achieve them, and how to secure funding, while also keeping in mind how to avoid excluding lower income customers from opportunities. A board member suggested staff write a memo to this effect. Mr. Weaver commented the potential for costs of hundreds of millions of dollars, but when you consider the long-term, such as 30 years out, that outlook is better.  A board member commented it’s great to see an exponential increase in solar energy. Water Efficiency Plan Update (Attachments available upon request) Water Conservation Specialist Renee Davis presented an overview of Water Efficiency Plan Update. Three documents govern the City’s water demand management: Water Supply & Demand Management Policy, Water Efficiency Plan (long-term plan), and Water Supply Shortage Response Plan (short-term plan). The State of Colorado requires large-to mid-sized water suppliers to have a water efficiency plan and update it every seven years. Under the current plan, the goal is a maximum of 140 Gallons Per Capita Per Day (GPCD) by 2020, the amount of treated water divided by service area population. Water use in Fort Collins has decreased dramatically over the last three decades. Water conservation in the past has focused on residential, especially in relation to the adoption of efficient toilets. Staff responds to the Colorado Water Conservation Board (CWCB) regarding the Water Efficiency Plan; the board provides guidance in plan updates. The first big community engagement forum took place on April 15. Ms. Davis shared a timeline for the Water Efficiency Plan process from 2015 to 2017. Presentations to other City boards are scheduled, as are presentations to City Council (late summer) and community organizations such as Kiwanis Club. The goal is to solicit feedback from everyone, not just water-related organizations. Staff will present the plan’s final version to CWCB in 2017. The Water Efficiency Plan Technical Advisory Group will meet with the City’s forester to talk about tree health and canopy, to continue having landscapes we love as well as water efficiency. The Economic Advisory Board is concerned about bringing jobs into Fort Collins. Energy Board Meeting Minutes June 4, 2015 6 Discussion Highlights  Board members commented on the amount of energy required for water, and Ms. Davis replied that Fort Collins’ trans-basin water comes from a high elevation to a lower elevation, in contrast with California, which uses a lot of energy to pump water over mountains.  A board member inquired about the ratio of residential to commercial customers. Ms. Davis replied it’s about an even share of the volume of water delivered. Washing machines have become more efficient, and toilet efficiency is taking another step: starting in 2016, state regulations will require that common water-using products (such as toilets and showers) sold in Colorado must meet WaterSense standards. Commercial water conservation is also focused on efficient toilets.  A board member inquired about untreated water. Ms. Davis replied that staff is also reviewing outside water use, but untreated water is not included in the Water Efficiency Plan. She mentioned the City’s Parks Department does a lot with untreated water.  A board member inquired what the target should be in the next few years if the goal by 2020 is 140 GPCD. Ms. Davis replied it’s delineated by the Water Supply and Demand Policy; 150 GPCD for supply. Fort Collins’ usage was 143 GPCD last year, so we’re doing well and are very close to achieving the 2020 goal.  Ms. Rosintoski offered to have Water Resources Manager Donnie Dustin present the Water Supply and Demand Policy in reply to a board member who mentioned reading the book Cadillac Desert: The American West and Its Disappearing Water by Mark Reisner years ago, and commented on his monthly water bill. The board member estimated paying $60 for infrastructure, and $5 for water, and speculated that even if he doubled his household water use, he’d pay $10 for water. He commented that he doesn’t use a lot of water because he doesn’t want to waste water, but his neighbor’s attitude is that if the City wanted everyone to use less water, they’d charge more for it as an incentive to conserve.  A board member expressed interest in hearing a presentation by Mr. Dustin and learning about what drives the cost of water here; the member mentioned Fort Collins is lucky to get some of its water from the Colorado-Big Thompson Project. Ms. Davis pointed out that CBT shares have come very expensive.  A board member commented on not wanting to see water use curtailed because of an increased population but rather simply because we’re located in the arid west.  Mr. Phelan commented on staff’s attempts to promote water conservation when already engaged with customers on other issues. Ms. Davis mentioned rebates provide incentives; the City offers rebates on clothes washers and dishwashers. Some clothes washers used to require 40 gallons per load; they now use 12 gallons. Older toilets used seven gallons to flush. Board Member Reports Chairperson Pete O’Neill volunteers with the Institute of Electrical and Electronics Engineers (IEEE), which works closely with university professors and students. He recently gave a presentation to a graduate seminar for engineering students on “How to Think about Energy Policy.” He reported that faculty asked a lot of questions and commented that it was good for students to understand what the real world is like regarding social and political acceptance of energy policies. New Business None