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HomeMy WebLinkAboutEnergy Board - Minutes - 11/14/2019ENERGY BOARD REGULAR MEETING November 14, 2019 – 5:30 pm 222 Laporte Ave.; Colorado Room ENERGY BOARD MEETING |11/14/2019 ROLL CALL Board Members Present: Chairperson Nick Michell, Vice Chairperson Amanda Shores, Bill Becker, Dan Gould, Jeremy Giovando, John Fassler, Stacey Baumgarn Board Members Absent: Alan Braslau OTHERS PRESENT Staff Members Present: Christie Fredrickson, Tim McCollough, John Phelan, Jamie Gaskill, Lisa Schroers, Adam Bromley, Kraig Bader, Brian Tholl, Travis Walker, Leland Keller, Cyril Vidergar Platte River Power Authority: Pat Connors, Masood Ahmad, Trista Fugate Members of the Public: Michael Pruznik MEETING CALLED TO ORDER Chairperson Michell called the meeting to order at 5:30 pm PUBLIC COMMENT Mr. Pruznik said he received a net-metering pay out as a result of City Council’s change to the 120% generation rule under Ordinance 70. He believes it was not the Board’s intention when they recommended the change from 12 months to 24 months. He also said the push for sustainability within the community is a failure. He asked the Board to consider if the goal of 100% Renewable Electricity is a good thing and the best solution. Mr. Pruznik’s suggestion is to challenge the City, Colorado State University, and Platte River to rank coal power plants from best to worst and use funding to shut them down in a prioritized order. APPROVAL OF MINUTES In preparation for the meeting, board members submitted amendments via email for the September 12, 2019 minutes. The minutes were approved as amended. ANNOUNCEMENTS & AGENDA CHANGES None STAFF REPORTS UAP/IQAP Reporting Lisa Schroers, Affordability Program Specialist, Utilities Customer Connections Jamie Gaskill, Senior Supervisor, Project Management, Utilities Customer Connections (attachments available upon request) The Utilities Affordability Portfolio (UAP) is composed of five programs: Income Qualified Assistance Program (IQAP), Payment Assistance Fund, Medical Assistance Program, Water & Energy Program, and Colorado Affordable Residential Energy. The City has several key partnerships that help the UAP meet ENERGY BOARD REGULAR MEETING ENERGY BOARD MEETING | 11/14/2019 the needs of the community, including (but not limited to) Disabled Resource Services, LEAP (Low- Income Energy Assistance Program), Energy Outreach Colorado, The Family Center, and Neighbor to Neighbor. Ms. Gaskill said the IQAP was introduced in late 2018, and it has helped assistance programs reach more Utilities customers. A graphic displayed showed the total assistance dollars provided over the year from 2013 through 2019, and there was a significant spike from beginning in 2018 after the IQAP was introduced. Board members inquired why 2019 dollars are less than 2018, and Ms. Gaskill clarified the 2019 data is only through October 15, 2019 and additional updated are needed after the remaining data is available. Mr. Phelan added that in 2018 there was a one-time infusion of funds that had to do with repurposing reclaimed property/unpaid bills. IQAP has a continuous enrollment system, but a concentrated application period. The application process begins with LEAP (which accepts applications between November and April) and once a customer has been qualified, LEAP will send a list to the City of qualified customers within the City’s service territory. The City then extends invitations to everyone on the list to enroll with IQAP. In 2019, staff reached out to over 900 qualifying customers and received 853 applications in the 2019-20 LEAP season. Ms. Schroers added that estimated enrolled customers still needs verification as data is becoming available. Board member Baumgarn asked if LEAP is the only application or if the qualification with LEAP allows customers to auto-enroll in IQAP. Ms. Schroers said staff originally proposed an auto-enrollment with LEAP qualification, but it was not supported, so there is an additional IQAP application. She passed around a copy of the application (which is available online as well) for the Board to see. Mr. Baumgarn said it is hard to continually ask someone in need to address why they need help. Staff agreed and advised this is a process they hope to continue to improve and streamline in the future. Chairperson Michell asked how easy is it for a customer to get qualified with LEAP. Ms. Schroers said she can’t answer that because Utilities do not administer this program and do not have access to that personal information, but LEAP recently reduced their income qualification from 165% of the federal poverty level, to 60% of the state median income. That adjustment raises the income threshold for many people, and LEAP expects 15% increase in enrollment this season. There is a pre- and post-program survey, and Ms. Gaskill highlighted some of the positive insights that were captured. When customers were asked how much they worry about their utility bill, there was a 12% decrease in those reporting they worry about their bill “Every Month” or “More often than not,” and a 9% increase in those saying, “Not at all.” When asked how much effort they put into saving energy and water, there was a 10% increase in those saying, “a lot.” When asked what conservation tips customers tried (from the IQAP newsletter), almost 40% of customer reported doing a home efficiency assessment with Larimer County Conservation Corps. Board member Becker asked if staff has heard any confusion between LEAP and IQAP, and if customers are confused by being asked for a heating bill even though it’s electric assistance they are hoping for. Ms. Schroers said she hasn’t heard that specifically, and she is primarily the customer facing staff member. INTEGRATED RESOURCE PLAN Pat Connors, Platte River Power Authority Masood Ahmad, Platte River Power Authority (attachments available upon request) An Integrated Resource Plan (IRP) integrates demand and supply-side resources to provide an action ENERGY BOARD REGULAR MEETING ENERGY BOARD MEETING | 11/14/2019 plan for reliable, environmentally responsible and financially sustainable energy and services. The IRP assists with preparing for industry changes including: Technological progress, consumer preferences, and regulatory mandates. The IRP must meet Western Area Power Administration (WAPA) requirements, and it was last submitted in 2016. A few things have changed since 2016, such as the goals of the Platte River owner communities, technological advancements, and industry changes; with the consideration of those changes and others, this IRP will be submitted in July of 2020 Mr. Connors highlighted a few items on Platte River’s resource diversification timeline, including Rawhide Flats solar project from 2016 (30 MW), the Roundhouse Agreement in 2018 (225 MW total), and the discussion of retiring Craig Unit 2 by 2030. Platte River is projecting to be approximately 50% noncarbon by the year 2021. The schedule going into 2020 completes modeling studies and internal review, document development and revisions, and finally stakeholder presentations prior to the July 1 submission deadline. Chairperson Michell noted that the listening sessions are completed within all four communities and wondered what Platte River staff has heard from the public so far. Mr. Connors said nothing surprising overall, but they heard loud and clear that many people would like them to move more quickly. Mr. Ahmad added there was much appreciation of the goals Platte River has set, and while some want to go faster, some more interim goals. Modeling assumptions in all of the studies included: a carbon tax beginning in 2025, Craig Unit 1 and 2 retirements by 2025 and 2029 (respectively), commodity prices from Pace/Siemens, DER program penetration from HDR, 100 MW of solar added in 2023, and new wind, solar, battery, and gas capacity added optimally to reliably supply the member load. Modeling portfolios included continuity, integrated utilities, zero coal, and zero carbon. Additionally, staff is considering some sensitivities within the models, such as no taxes on carbon and the social cost of carbon, high and low prices of natural gas, medium and high DER penetration, and high load growth. Seven of the nine studies and data sets within the IRP have been published on the Platte River website. Mr. Connors briefly reviewed each of the studies and their key findings. Board members took interest in the Energy Storage Technology Assessment with HDR Inc. Chairperson Michell said the study took a generic approach to pumped hydro, and he asked if there are opportunities for pumped hydro given the surrounding area and existing reservoirs. Mr. Connors said pumped hydro is extremely difficult to permit, time-intensive, and capital-intensive; Platte River staff do not claim to be experts on the matter; pumped hydro storage would require partnerships to execute. Chairperson Michell said originally there were talks of a regional market with the implementation of 100% renewable electricity, and he wondered if that possibility was modeled in any of the IRP studies. Mr. Connors said no, because at this time there isn’t a market. He agreed that having a regional market would provide many benefits and geographical diversity, but at the moment it’s most important to remain reliable and if a market comes along, they’ll be even better. Mr. Michell said it would be helpful to clearly point out that they are consciously excluding regional markets for the reasons they just discussed. Chairperson Michell said a group out of Boulder, Vibrant Clean Energy, recently concluded if heating and transportation are not electrified, it is not possible to economically decarbonize the electric grid. Mr. Connors said that is an important part of the discussion at Platte River. Board member Giovando asked where climate projections are factored into the report. Mr. Connors said its part of the baseline forecast, but things are as things are evolving, they are adjustable within the report. Mr. Ahmad noted that with the implementation of more DER, and more efficient housing, they ENERGY BOARD REGULAR MEETING ENERGY BOARD MEETING | 11/14/2019 hope to see demand reducing. Mr. Phelan asked if it would be accurate to say, with the recent procurement of the roundhouse and rawhide prairie projects, that the IRP is not driving any new near-term procurement projects beyond the possible additional 50-150 MW of solar. Mr. Ahmad said that is a good observation, nothing on the horizon over the next three to four years. LIGHT & POWER CAPITAL IMPROVEMENT PLAN Kraig Bader, Engineering Director, Utilities Light & Power Adam Bromley, Operations & Technology Director, Utilities Light & Power (attachments available upon request) The Capital Improvement Plan (CIP) identifies needed capital expenditures and informs budgeting processes for the next 10 years in the following topics (i.e. Parent Accounts): substations, service center annexations, feeders, duct banks, system improvements, operational technology, system conversions, relocations, and streetlight replacements and conversions. The Utility does a CIP to help maintain high reliability and affordability of distribution system. Over the next decade there will be several challenges, such as 100% renewable electricity goals, the increase in electrification, aging assets and infrastructure, customer expectations, hosting capacity for DER, and population growth. Mr. Bader reviewed the CIP Process with a graphic for each step. Staff begins by gathering inputs from other city plans (such as City Plan and City Strategic Plan), other departments, City Council’s priorities, and coordinating with Platte River. From there, staff works to update department-specific plans, like the load study and 10-Year Capacity Plan, Operational Technology Roadmap, Substation Asset Management Plans, etc. With that direction they will update cost index numbers and update projects with current-year dollars. Then, projects are prioritized by working through the levels of service, identifying risk registers, and resource capacity. Chairperson Michell asked how the planning process accounts for the uncertainty of customers adding solar or electrification. Mr. Bader said they consider several models, such as a propensity model that tells them where people may install or use EVs, He added the best thing about doing a 10-year plan every year is there is always room to update or course-correct based on the feedback and trends staff is seeing. Mr. Bromley said the focus areas of the 2019 CIP are: higher investment in operational technology, lower dollar investment in system improvements (but a higher level of data-driven decisions), an updated long- range plan (no new substations in 2021-30 and a decrease in new duct bank and feeder projects), as well as in increaser in annexations and overhead to underground conversions. Staff will also focus on departmental collaborations so there is little to no lag with system relocations. Mr. Bromley highlighted that even with a shift in focus, the 2019 CIP equates to almost the exact same cost as the 2017 CIP, with a slight decrease in spending ($180,000) in 2019. Board member Giovando asked if network security is addressed within the plan. Mr. Bromley said yes, security is always a big concern, and everything is behind a firewall; once the new SCADA system is up and running, they will conduct a penetration study. Mr. Bromley displayed a budget forecast chart, which shows a deliberate decrease in capital expenditures in the 2021-2022 in order to not take on more debt as we are bonded with Connexion. The Utility wants to keep its capital spend within the 3-5% allowable electric rate increase. Mr. Phelan said staff is planning to bring a topic to the Board Council and the Energy Board next month: CAP Mitigation and Resilience Off-Cycle Appropriation. It’s a package of offers supporting CAP mitigation ENERGY BOARD REGULAR MEETING ENERGY BOARD MEETING | 11/14/2019 and resilience that was prompted by Platte River’s increased 2020 budget for Energy Services functions, of which a portion goes to Fort Collins’ Energy Services. No net new funding is proposed for the package, but the re-appropriation will go toward projects like commercial solar incentives, the expansion of Bring Your Own Thermostat, grid-interactive water heater demonstration, residential battery demonstration, and others. There is also a reallocation of Light and Power funding due to an anticipated underspend in operations and maintenance and Capital projects in 2019. The reallocation would support L&P projects like cable replacements in priority areas, annexations, and overhead conversions. BOARD MEMBER REPORTS Chairperson Michell said Jason Frisbee lead a discussion about the RE 100 goal at NCRES (Northern Colorado Renewable Energy Society) which he found very interesting. Board member Becker said he attended the Platte River IRP listening session and he found much of the conversation during public comment enlightening and interesting, since he often views this topic through an Engineering lens. Mr. Phelan thanked Board member Baumgarn for his service to the Energy Board, as tonight is his last meeting after reaching his term limit. FUTURE AGENDA REVIEW Moving officer elections to December since no new members are expected to be appointed early in 2020. ADJOURNMENT The Energy Board adjourned at 8:23 pm.