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HomeMy WebLinkAboutEnergy Board - Minutes - 03/14/2019ENERGY BOARD REGULAR MEETING March 14, 2019 – 5:30 pm 222 Laporte Ave.; Colorado Room ENERGY BOARD MEETING | 02/14/2019 02/14/2019 ROLL CALL Board Members Present: Chairperson Nick Michell, Jeremy Giovando, Alan Braslau, Bill Becker, Dan Gould, Stacey Baumgarn, Krishna Karnamadakala Board Members Absent: John Fassler, Vice Chairperson Amanda Shores OTHERS PRESENT Staff Members Present: John Phelan, Christie Fredrickson, Tim McCollough, Lindsay Ex, Cyril Vidergar, Kevin Gertig, Kirk Longstein, Leland Keller Platte River Power Authority: Paul Davis Members of the Public: Rick Coen MEETING CALLED TO ORDER Chairperson Michell called the meeting to order at 5:30 pm CITIZEN PARTICIPATION APPROVAL OF MINUTES In preparation for the meeting, board members submitted amendments via email for the February 14, 2019 minutes. The minutes were approved as amended. ANNOUNCEMENTS & AGENDA CHANGES None STAFF REPORTS OPERATIONS UPDATE Tim McCollough, Deputy Director, Utilities Light & Power John Phelan, Energy Services Senior Manager Mr. McCollough advised the Board there were no outages after the large snowstorm earlier in the week. Though there were several instances of lights flickering, there were no actual outages (complete loss of voltage). Mr. McCollough also highlighted a few projects Light & Power has been focused on in the first quarter of 2019. The Water Treatment Facility switchover from Xcel Energy to Light & Power occurred on February 26, 2019, which brings a 100kW solar array online to the Electric Utility, and a future micro-hydro project in March 2019. Light & Power crews have been working a daily rotational schedule to assist Connexion with installing backbone infrastructure; the crews have been major collaborators and a source of knowledge with the Broadband project. The Connexion groundbreaking event took place on February 28 and featured reels of fiber, a fiber splicing trailer, and a demo of the Fiber Manager computer program, as well as the new joint customer billing system under development. ENERGY BOARD REGULAR MEETING ENERGY BOARD MEETING | 02/14/2019 Mr. Phelan highlighted some of the work done in Energy Services during the first quarter of 2019. The tallying of numbers for megawatt hour savings in 2018 are almost complete, and a more detailed agenda topic is coming. The portfolio savings did exceed the Energy Policy goal of 2%, which is amongst the historical best for the Utility. The City is also planning to launch a participating Solar Contractor Network, similar to the Efficiency Works Homes Contractor Network. Peak Partners will be going live with Bring Your Own Thermostat soon, which will enable the program to recruit Honeywell and Nest Thermostat users. PLATTE RIVER POWER AUTHORITY ORGANIC CONTRACT & POWER SUPPLY AGREEMENT EXTENSION Tim McCollough, Deputy Director, Utilities Light & Power Kevin Gertig, Utilities Executive Director (attachments available upon request) There are two foundational documents that formed and govern Platte River Power Authority, the Organic Contract (four-party Intergovernmental Agreement between the four owner communities) and the Power Supply Agreement (all-requirements contract between Platte River and the City of Fort Collins). The agreements are being updated to extend the life of the organization, and to update content relative to distributive solar generation, the possibility of an organized market, potential future modifications of bond covenant restrictions, and to conform transmission facilities descriptions. Platte River Power Authority was formed in 1975 under the Organic Contract in partnership with all four communities. The last extension request renewed the Organic Contract from 2010-2050, and the most recent extension request will be in place from 2019-2060. The Power Supply Agreement is specifically between the City of Fort Collins and Platte River Power Authority and was first implemented in 1973. It was also most recently renewed in 2010 through 2050. Having 40-year contract terms provide favorable bond ratings and flexibility in Purchase Power Agreements. In December of 2018, a Resource Diversification Policy was passed by the Platte River Board of Directors. That policy commits to achieve 100% non-carbon by 2030, which closely mirrors goals set in Fort Collins, Longmont, and Estes Park. In 2020 Platte River will build 150MW of wind and 20MW of solar with 2MWh of battery storage. Platte River has also begun Integrated Resource Planning, including 100% non-carbon sources scenarios. In 2021, the Platte River resource mix delivered to the member Cities will be made up of 50% wind, solar, and hydro sources. The Organic Contract’s proposed changes are primarily minor edits and clarifications, such as clean up language related to the Appointed Director Role, removing the masculine reference to the Offices of the Board (Chair and Vice-Chair), as well as the extension through 2060. There are more substantive proposed changes to the Power Supply Agreement: Third-Party Solar will be allowed under net metering; this potential provision has already stirred the local development of solar and there are projects in development that will add significant distributed solar generation for our customers under net metering. Also, there is a change in Substation Metering Points from the low voltage side to the high voltage side of the transformer. This change is designed to be revenue neutral for Platte River and is a key enabler for future energy market entrance. Finally, the inclusion of a covenant to hold routine meetings (every 2 years) that recognize the changing nature of the energy industry and work toward a model of incremental change in the agreements and not wait for the typical 10-year extension intervals. Chairperson Michell asked if the net metering rules are changed and the 120% restriction is removed, ENERGY BOARD REGULAR MEETING ENERGY BOARD MEETING | 02/14/2019 does that still fall under this exception, or does it cause problems with the Power Supply Contract? Mr. McCollough said the 120% limit language seen in the Power Supply Agreement only applies to third-party solar, so it would be restricted in certain circumstances. Mr. Phelan added the energy density of most commercial buildings prevents many commercial customers from reaching the 120% limit. Board member Braslau asked why the sizing limitation is included in the Power Supply Agreement, and Mr. McCollough explained the language was drafted in conjunction with Platte River’s Bond Counsel and that restriction is consistent with the Public Utilities Commission (PUC) language around net metering, so it’s not perceived as a risk. Board member Braslau asked if the Utility is bound by this PUC restriction, Mr. Phelan and Mr. McCollough said the Utility’s rules are modeled after their structure but it is not required. Board member Baumgarn said this sounds like it could be good for a large commercial company, real estate, or storage unit facility, but alternatively it sounds like a customer could optimize their rooftop space, which is a piece of flexibility that wasn’t available before; so often solar arrays are sized to limit of the load or to the amount of available cash. Board member Karnamadakala asked if entering a regional transmission market has potential to clash with the net metering set under the Power Supply Agreement. Mr. McCollough said not likely, but at this time he can’t say definitively because it would largely depend on which market Platte River joins. Platte River acknowledges the industry is changing more rapidly than every 10 years, so they’ve committed to having more frequent discussions and the intent is to move toward updating the Power Supply Agreement and Organic Contract at a higher frequency than every 10 years. Staff completed a Triple Bottom Line analysis on the contract extensions and amendments which is detailed in the board’s packets. The results show mostly positive and indirect impacts on the three sustainability areas (Social, Economic, Environmental). The only mitigation identified by the scan is to continue working with the Planning team to ensure the highest and best use of the remaining vacant land. Board member Gould asked how many projects must go to the Planning team for a ground-mounted facility or something of that type of land use. Mr. McCollough explained any time a new or modified physical infrastructure is being developed, it has to pass through the planning process, so every single solar project does go through development review. Board member Becker commented that the term “distributed generation” seems very limiting, especially given that the current update cycle is 10 years; he thinks the language should be more inclusive, such as “distributed energy resources” as opposed to “distributed generation”. Mr. McCollough said Mayor Troxell had a very similar concern regarding the language, and the staff at Platte River agreed it’s a valid point and currently under advisement by the Platte River Board of Directors for the next round of updates. Mr. Phelan reminded the Board the contract updates operate in tandem with the Wholesale Rate Structure update, so they will continue to be managed dynamically. Board member Baumgarn moved that the Energy Board recommend to City Council approval and execution of the Amended and Restated Organic Contract establishing Platte River Power Authority and the Amended and Restated Contract with Platte River Power Authority for the Supply of Electric Power and Energy, including extended expiration dates for both agreements through December 31, 2060 and other updated terms as presented by staff. Chairperson Michell seconded the motion. DISCUSSION: Board member Becker suggested a friendly amendment to the motion: The language should be modified to reflect distributed energy resources. To achieve the City’s carbon goals without being completely ENERGY BOARD REGULAR MEETING ENERGY BOARD MEETING | 02/14/2019 reliant on energy markets, the City will need interactivity between the Platte River Power Authority supply, Fort Collins Utilities and customers, which includes flexible loads, storage, and electric vehicles. That includes flexible loads, storage, EV charging, etc., all well-coordinated with the bulk supply. The Energy Board feels the current language in the Power Supply Agreement should be revised in future amendments to incorporate a wide range of distributed energy resources. The Board approved the amendment. Board members agreed they would like to advise Council to support the changes to the Organic Contract and Power Supply Agreement as drafted, but they also agree with the thoughts Mayor Troxell shared at the February 26 Council Works Session and the February 28 Platte River Board of Directors Meeting that future changes regarding our distributed energy future are necessary in these foundational documents. VOTE ON THE MOTION: It passed unanimously, 7-0, with two absent. CLIMATE ACTION PLAN & ENERGY POLICY UPDATE John Phelan, Energy Services Senior Manager Lindsay Ex, Climate Program Manager (attachments available upon request) Ms. Ex recapped what offers were funded and what is currently in progress. City Offer 43.12 was jointly funded by Light and Power and the General Fund to update the 2030 Climate Action Plan and the Energy Policy. City Offer 43.10 was funded to update the Road to Zero Waste Plan, led by Honore Depew’s team, and this effort will be rolled up with the CAP and Energy Policy updates to create synergy between all three. And finally, Mr. McCollough and Mr. Phelan are working with the Platte River Power Authority team to help update the Integrated Resource Plan. Ms. Ex displayed a draft timeline working toward the June 25 City Council work session, she noted that most of the funding for the CAP update is budgeted in 2020 ($40,000 in 2019, $80,000 in 2020). Currently, staff is working on peer cities-research (through April), and beginning community engagement to inform the scope of the update; staff is also developing the internal scope of the plan leading up to the work session. By the end of 2019, staff will post a request for proposal and award the project. Mr. Phelan asked the Board to consider if it is necessary to have multiple plans (Energy Policy and Climate Action Plan). He said staff is not presuming there are two separate documents by the time this effort is complete and asked if the goals are closely aligned enough to merge into one plan. Mr. Phelan set up the room with poster papers for four different discussion questions: If the planning processes were successful, how would residents be engaged; if the planning processes were successful, how would businesses be engaged; if the planning processes were successful how would initiatives to achieve the 2030 goals be selected; how many plans (one vs two)? The Board spent approximately 20 minutes generating ideas for each question. Chairperson Michell said for the CAP to be successful, business and residents must know that the City has a Climate Action Plan. Ms. Ex said statistically, 50% of all residents do know the City has a Climate Action Plan, and 80% of all residents are supportive the City taking action on the climate. Board member Gould said he thinks the general tenor of what people understand about the climate is changing, Chairperson Michell agreed and said even if they have a misconception, it’s a positive opportunity to have a meaningful discussion. ENERGY BOARD REGULAR MEETING ENERGY BOARD MEETING | 02/14/2019 Board member Giovando said Fort Collins has a large pool of young and talented individuals who are constantly searching for services projects, such as Eagle Scouts, and he suggested looking for a way to engage them and harness their ambition with ready-to-go ideas for their projects. Ms. Ex said that City Plan used a similar technique with community ambassadors and said that is a great idea they could piggyback on. Board members also discussed other items to be addressed in a future meeting. Some noted it would be helpful to bring additional clarity between the Energy Policy and the Climate Action Plan, especially under the new version, in order to help make a decision. Others felt that the Road to Zero Waste Plan is difficult, and perhaps the energy should be focused on other issues first. Ms. Ex noted that technically zero-waste is defined by 90% diversion. Ms. Ex said this information, along with the peer cities-research, will be used to help draft of the scope. She and Mr. Phelan will be back at the Board’s May 9 regular meeting with that draft before they take it to Council in June. BOARD MEMBER REPORTS Board member Braslau reported that the Platte River Board of Directors decided to approve and fund a project, the Energy Innovation and Learning Center, which will be part of their headquarter renovation project. It can be used for community meetings, efficiency works trainings, career days, and other similar engagements. FUTURE AGENDA REVIEW Platte River will be at the April meeting for the Integrated Resources Plan update. The April 25 work session is planned to be held as scheduled. ADJOURNMENT The Energy Board adjourned at 7:48 pm