HomeMy WebLinkAboutEnergy Board - Minutes - 02/02/2012Energy Board Meeting Minutes
February 2, 2012
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Fort Collins Utilities Energy Board Minutes
Thursday, February 2, 2012
Energy Board Chairperson City Council Liaison
Ross Cunniff, 420-7398 Lisa Poppaw, 223-4136
Energy Board Vice Chairperson Staff Liaison
Barrett Rothe, 303-881-9683 Brian Janonis, 221-6702
Roll Call
Board Present Board Members Peggy Plate, Steve Wolley, Barrett Rothe, Greg Behm, Britt
Kronkosky, Margaret Moore, Peter O’Neill, Stacey Baumgarn, and Ross Cunniff
Staff Present Steve Catanach, Jenny Lopez Filkins, Ellen Switzer, Lance Smith, Katy Bigner, Maia
Jackson, Sharon Held, John Phelan, Robin Pierce, Tom Rock, Patty Bigner, and Harriet Davis
Guests Rick Coen and John Bleem (Platte River Power Authority)
Meeting Convened
Light and Power Operations Manager Steve Catanach called the meeting to order at 5:30 p.m.
Public Comment
Rick Coen expressed his thanks to the members of the Energy Board for their willingness to
participate on the board. He feels the Energy Board is an inspired idea from City Council.
Officer Elections
Board Member Cunniff expressed his interest in the position of Board Chairperson.
Vote on the motion: It passed unanimously.
Vote on the motion: It passed unanimously.
Adoption of Bylaws
Chairperson Cunniff questioned if the bylaws were modified from the Electric Board Bylaws.
Assistant City Attorney Jenny Lopez Filkins stated the bylaws were based on those of the Electric
Board and they are consistent with the Water Board Bylaws. Vice Chairperson Rothe suggested the
fourth sentence in Article III, Section 9 should be revised as separate sentences.
Board discussion:
Chairperson Cunniff proposed approving the bylaws during this meeting. The bylaws can be
reviewed and edited later in the future if necessary.
Board Member Rothe moved to nominate Board Member Cunniff as Chairperson. Board
Member Moore seconded the nomination.
Board Member Rothe moved to nominate himself as Vice Chairperson. Board Member
Kronkosky seconded the motion.
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February 2, 2012
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A board member questioned the bylaws as they relate to Utilities. Mr. Catanach stated the intent of
the bylaws is for a broader picture of energy throughout the City. The bylaws are proposed as a
basic structure for the board to use.
Proposed Discussion and Amendments:
Vice Chairperson Rothe feels the bylaws are not the appropriate place to include the functions of
the Energy Board. Ms. Lopez Filkins stated the functions of the Energy Board are addressed in the
City Code, not necessarily in the bylaws.
Vice Chairperson Rothe questioned the statement in Article IV, Section 1 concerning precedence of
the bylaws, charter, and code. He feels this could be reworded in a more concise statement.
Vice Chairperson Rothe questioned the statement in Article IV, Section 2 concerning Robert’s Rules
of Order. He specifically questioned the use of the word “practical.”
Vice Chairperson Rothe questioned Article IV, Section 4 (Rules of Operation) concerning quorum.
He suggested setting quorum as six members.
A board member stated the role of the Council Liaison is not mentioned in the bylaws. He stated
even though the role is mentioned in the City Code, it seems odd that it is not mentioned in the
bylaws.
A board member stated attendance at the meetings is not required for the Council Liaison as per the
Boards and Commissions Manual. Ms. Lopez Filkins stated the relationship between the board and
the Council Liaison is not governed by the bylaws. The bylaws were created to state how the board
is to conduct their business.
A board member asked for clarification that the Council Liaison is not a member of the board. Ms.
Lopez Filkins stated this is a true statement.
A board member stated typos should be corrected on page 6 of the bylaws (Approval Section).
Chairperson Cunniff suggested the elections should be held in February (Article III, Section 2).
Vice Chairperson Rothe questioned the statement in Article V, Section 8 concerning Executive
Sessions, “Executive sessions may be called upon the affirmative vote of two-thirds (2/3) of the
quorum present for the stated purpose…” Vice Chairperson Rothe suggested “quorum” should be
changed to “members.” Ms. Lopez Filkins stated she would have to follow-up on this.
A board member questioned if the board can decide on this particular wording if it is part of the
City Code. Ms. Lopez Filkins stated either the City Charter or the City Code states that a meeting is
defined as three or more board members.
A board member questioned if an Executive Session can be called without quorum.
Vice Chairperson Rothe moved to adopt the bylaws as amended. Board Member Plate
seconded the motion.
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February 2, 2012
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Discussion on the motion:
A board member stated this changes the meaning of the sentence.
A board member stated if the word “quorum” is changed then a requirement should be added that a
quorum should be present at the meeting. The board member suggested a friendly amendment that
the requirement should be 2/3 of the members present at a meeting that has a quorum.
Vote on the first motion:
Yeas: Baumgarn, Behm, Cunniff, Kronkosky, Moore, O’Neill, Plate, and Rothe. Nays: none.
Board Member Wolley abstained from voting.
The motion carried.
Vote on the second motion:
Yeas: Baumgarn, Behm, Cunniff, Kronkosky, Moore, O’Neill, Plate, and Rothe. Nays: none.
Board Member Wolley abstained from voting.
The motion carried.
Board Discussion:
The board members discussed making the following changes to the bylaws:
• February 4, 2009 will be changed to February 2, 2012 in the document header.
• Article III, Section 2: remove “or March” from the first sentence.
• Article III, Section 9: remove the first comma (after the word “chairperson”) from the
fourth sentence.
• Change “thisth” to “this” on page 6. Change “2011” to “2012” (Approval Section).
• Add Ross Cunniff as Chairperson (Approval Section).
A board member suggested adding a sentence to the bylaws stating if there is no February meeting,
the elections would occur at the next regular meeting.
Vote on the motion:
Yeas: Baumgarn, Behm, Cunniff, Kronkosky, Moore, O’Neill, Plate, Rothe, and Wolley. Nays:
none.
The motion carried.
Vice Chairperson Rothe moved to amend Article V, Section 8 to replace the word
“quorum” with “members” in the first sentence. Board Member O’Neill seconded the
motion.
Amended Motion: Vice Chairperson Rothe moved to amend the motion to read as follows,
“Executive Sessions, which may only be called when a quorum is present…”Board Member
Moore seconded the motion.
Board Member Moore moved to step through the bylaws and make recommended changes.
Vice Chairperson Rothe seconded the motion.
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February 2, 2012
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2012 Work Plan (Draft)
Mr. Catanach stated he reviewed the previous Electric Board Work Plan and focused on policy level
items since City Council would like the Energy Board to stay at this level rather than the operational
level. Mr. Catanach noted the document needs to be reviewed by other staff members. Also,
Utilities Executive Director Brian Janonis would like to meet with the Chairperson and Vice
Chairperson to further align the document with Council’s intent.
Board Member Wolley, who also reviewed the draft work plan, stated he listed a timeline on the
document since it will take several months to learn more about the activities of the City.
A board member expressed his interest in obtaining practical knowledge about Utilities operations.
The board member would like to participate in tours to locations such as substations, Rawhide
Power Plant, etc. Mr. Catanach reminded the board that any time there are three or more board
members present for events such as tours; the tour must be posted as a public meeting.
The board members discussed attending events such as webinars and if these events would need to
be posted as public meetings. Ms. Lopez Filkins stated notice must be provided if there are three or
more board members present at a meeting if there is the possibility of a business discussion
occurring at the meeting.
A board member questioned if the Energy Board should invite members from other boards to the
board meetings. Mr. Catanach stated other board members can be invited to attend Energy Board
meetings.
A board member questioned the draft work plan that was provided in the January 23
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agenda
packet, specifically the grayed out items. The board member questioned why these items would be
removed from the work plan. Energy Services Manager John Phelan stated the grayed out items will
be part of a broader energy policy discussion.
A board member suggested looking at the public outreach process regarding certain energy
policies. The board member feels part of the Energy Board scope should be to ensure that citizens
receive information regarding rebates, specifically federal and state rebates relating to energy
related improvements.
Chairperson Cunniff expressed his interest in having a separate work session to discuss the
proposed work plan. He feels the Council Liaison should be present at the work session. The work
session should be scheduled before the next regular meeting in March.
A board member suggested subcommittees should be formed to review information before or in
place of a presentation to the full board.
* Board Member Moore departed the meeting at 6:30 p.m.
A board member questioned how the Energy Board can be useful to the large number of
departments within the City. The board member would like to establish a dialogue between the
board and other City departments besides Utilities. The board members discussed inviting
representatives from other departments to attend their meetings and also discussed visiting other
board meetings to share information. Chairperson Cunniff suggested “Board Member Reports”
should be added to the agenda to serve as a placeholder for board members to report attendance at
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February 2, 2012
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other board meetings and share information with the full Energy Board. Vice Chairperson Rothe
later suggested this be added after “Public Comment.”
A board member suggested other interests such as legislative and capitol news should be included
on the agenda (as similar to the Electric Board agenda).
Medical Life Support Discount Program
(Attachments available upon request).
Strategic Financial Planning Manager Lance Smith introduced the item. City Council asked staff to
develop this program so customers with medical devices would not be pushed into the second or
third tier of the three tier rate structure. This program, which is similar to a program in the City of
Longmont, covers durable medical equipment. There are three eligibility requirements for
participation in the program, including a household income limit, a physician’s affidavit that the
Medicare approved equipment is medically necessary, and a lawful presence affidavit. The net
effect of the discount is that the customer bill would be lowered. Utilities anticipates no major
impacts on revenue.
Board discussion:
A board member questioned what kind of equipment is included in the program. Mr. Smith stated
oxygen equipment and machines used to treat sleep apnea are included in the program.
A board member questioned if Utilities disconnects customers on life support if they have an
outstanding balance. Mr. Smith stated the customer is required to fill out a notification form if they
use life support equipment. Utilities Customer and Employee Relations Manager Patty Bigner stated
there is no system in place to keep Utilities from disconnecting these particular customers if they do
not pay their bill.
Chairperson Cunniff questioned if Council requested the list of medical equipment be listed on the
application form. He mentioned the concern with healthcare privacy issues. Ms. Lopez Filkins
stated this concern can be addressed in a confidential legal memo.
Chairperson Cunniff questioned if this item is brought before the Energy Board for action. Mr.
Smith stated no board action is requested on this item.
A board member questioned if there are provisions in case customers realize their bill has
increased. Is the program retroactive? Ms. Bigner stated that if customers are on a fixed income or
have a medical condition that create an economic hardship, Utilities would determine what kind of
program would fit their needs.
A board member asked if there is a mechanism in place that states if the customer moves, the rate
does not stay on the residence. Ms. Bigner stated customers have to apply once a year for this
program.
If the customer’s usage goes over one month and not the next month, when would they see a
discount? Mr. Smith stated Utilities is lowering the amount charged for the first 500 kilowatt hours
(kWh). As long as they are using more than 500 kWh a month, they will see a discount. Ms. Bigner
stated if Utilities can further develop the program, they would like to see the customers participate
in an energy audit to manage their efficiency.
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February 2, 2012
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Chairperson Cunniff questioned the process behind the item. Is this something that would have been
presented to the Electric Board? Mr. Catanach stated that typically this item would have been an
action item with a recommendation to Council.
Chairperson Cunniff stated it might be beneficial for Utilities to look at how many people applied
for this program and how much energy they used after the program has been in place for a year.
The Energy Board could then make policy-based recommendations after this data is reviewed. Ms.
Bigner stated when electric rates were presented to the Electric Board the anticipated impacts were
on those individuals with medical equipment and low income households. Utilities hopes to develop
a program around the low income customers after the medical life support program is in place.
What is the internal process to review the program for evaluation? Ms. Bigner stated programs are
reviewed on an annual basis. Mr. Catanach stated Utilities conducts Cost of Service studies every
three years to determine if programs are achieving their intended consequences.
Chairperson Cunniff stated he is appreciative of staff for presenting this item to the board and
would like rate change proposals presented to the board in the future if possible, even if they are for
information only. Ms. Bigner asked if the Energy Board is interested in reviewing community
benefit type of programs, regardless if they are high level or not. Chairperson Cunniff stated he
would like this type of information presented to the board since it impacts energy usage.
Mr. Smith stated staff will notify the board if Council desires the item brought before the board as
an action item at a later date.
Vote on the motion:
Yeas: Baumgarn, Behm, Cunniff, Kronkosky, O’Neill, Plate, Rothe, and Wolley. Nays: none.
The motion carried.
Pilot Electric Vehicle (EV) Rate
(Attachments available upon request).
Mr. Catanach introduced the item. He stated staff has concerns that the recently adopted residential
seasonal tiered rates could provide a disincentive to customers considering the purchase of an
electric vehicle. This may send a signal to consumers that an electric vehicle will cost more. This
item is presented to the board for their thoughts on whether an electric vehicle rate should be
brought before Council at this time or should the discussion wait until Time of Use (TOU) rates are
available for all customers.
Board discussion:
A board member stated this should not be of concern since the cost of electricity is considerably less
than the cost of gasoline. However, Utilities should be concerned about the precedent they may be
setting with how the rates affect the distribution system. The board member suggested rates should
be more strategically set in the future.
A board member asked if Utilities is providing customers a lower rate for charging the vehicle after
a certain time of day. The board member expressed concern about those customers who are not
Board Member Wolley moved the Energy Board is in favor of programs such as the Medical
Life Support Discount Program that provide relief to customers that need it. Board Member
Rothe seconded the motion.
Energy Board Meeting Minutes
February 2, 2012
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concerned with TOU rates and the impact of that on Utilities versus the impact of the public’s
perception with buying electric vehicles. Mr. Catanach stated the impact is varied. There may be
issues with increased load on transformers, especially during peak summer periods when customers
are running air conditioning in addition to charging electric vehicles. Part of the function of the
TOU rate encourages customers to shift charging to the off-peak periods. The intent is to help
customers make decisions through a price signal.
A board member questioned if Utilities should be in a position to encourage the adoption of electric
vehicles by making a favorable TOU rate. Mr. Catanach stated Utilities does not want to discourage
with the tiered rates; however, they want to send a price signal to encourage shifting to the off-peak
periods.
A board member asked for clarification regarding if Utilities is going ahead with the pilot program.
Mr. Catanach stated with the Automated Metering Infrastructure (AMI) system, Utilities will have
the ability to gather usage data and design a rate on how customers utilize energy. Data is available
for the City of Longmont; however, Fort Collins has different programs and pricing signals.
Mr. Catanach presented information on a TOU rate with several options including paralleling with
Platte River Power Authority (PRPA) Seasonal Rates (September – May). The intent is to push
electric vehicle usage to off-peak periods. If Utilities can better balance the peaks with the valleys,
the infrastructure is better utilized. He asked the board for their thoughts regarding if this item
should be carried forward to Council, even though it will create another rate discussion.
A board member stated that collecting data is important. Mr. Catanach stated data will be collected
starting in March and a rate can be designed in mid 2013.
Why does Utilities need a special EV Rate? The EV Rate is proposed as a way to not discourage the
adoption of electric vehicles.
A board member asked for clarification that this is a pilot program. Mr. Catanach stated this is a
pilot program because accurate data is not available yet. Since Utilities needs a year’s worth of data
to implement new rates, 2014 rates will be presented to Council in 2013.
A board member expressed concern that Utilities may be subsidizing individuals who can afford a
more expensive vehicle. The board member suggested Utilities provide more educational
information for consumers who are considering the purchase of an electric vehicle. Mr. Catanach
stated this is a valid point and that educating consumers is critical. Utilities Financial Operations
Manager Ellen Switzer stated the rate is a cost of service based rate. It does not provide a discount
to the customer. It is simply pricing the off-peak electricity differently than the on-peak electricity.
A board member stated he does not want to discourage the use of electric vehicles, but he feels
Utilities is not ready technology-wise with the TOU rates. In the interim, Utilities can ensure they
are not discouraging the use of electric vehicles since there is already a huge incentive to using
them.
Chairperson Cunniff stated it may be premature for Utilities to make a rate change; however, he is
interested in seeing future usage data. Utilities should encourage individuals to move charging to
off-peak time periods. He also asked the board members to consider the bigger picture and the
impact of a larger energy portfolio.
A board member stated switching to electric vehicles is a good choice; however, it is still a mode of
isolated transportation. The board members discussed the fact that electric vehicle usage also has
an impact on Utilities.
Staff Reports
Mr. Catanach gave an update on AMI. A test system has been implemented at the Utilities Service
Center. This will allow Utilities to make changes on the test system before mass deployment. In the
initial deployment area, a basic skeleton of the Wi-Fi and mesh network has been installed. The
initial deployment will start on March 5 and is scheduled for completion at the end of April.
Other Business
Mr. Catanach suggested offering the board members an “Electricity 101” training class.
Adjournment
The meeting was adjourned at 7:53 p.m.
Submitted by Harriet Davis, Administrative Assistant, Fort Collins Utilities
Approved by the Board on
2012
Signed
Board Secretary Date
Energy Board Meeting Minutes 8
February 2, 2012