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Home My WebLink AboutEnergy Board - Minutes - 06/07/2012Energy Board Meeting Minutes June 7, 2012 1 Fort Collins Utilities Energy Board Minutes Thursday, June 7, 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 Vice Chairperson Barrett Rothe, Board Members Steve Wolley, Britt Kronkosky, Peter O’Neill, Peggy Plate, Stacey Baumgarn, Greg Behm, and Margaret Moore Board Absent Chairperson Cunniff Staff Present Brian Janonis, Patty Bigner, Norm Weaver, Jenny Lopez Filkins, Lucinda Smith, and Harriet Davis Guests John Bleem (PRPA), John Graham, Phil Friedman, and Rick Coen Meeting Convened Vice Chairperson Rothe called the meeting to order at 5:32 p.m. Public Comment None Approval of May 3, 2012 Minutes Vice Chairperson Rothe moved to approve the minutes of the May 3, 2012 meeting. Board Member Moore seconded the motion. The board members discussed minor editorial changes to the minutes. Vote on the motion: Yeas: Baumgarn, Behm, Kronkosky, Moore, O’Neill, Plate, Rothe, and Wolley. Nays: none. The motion carried. The minutes will be revised to reflect the changes discussed. Utilizing Renewable Energy Credits to Meet the Colorado Renewable Energy Standard (Attachments available upon request). Customer and Employee Relations Manager Patty Bigner introduced the item and presented information on the following topics: • Evolution and current status of the program; • How the program relates to City policy; • How the program relates to the Colorado State Renewable Energy Standard (RES); • How the program reflects community values; • Challenges to developing a balanced portfolio approach; • How to use the solar multipliers; Energy Board Meeting Minutes June 7, 2012 2 • How to remove barriers to renewable energy; • How to support local policy objectives such as the Climate Action Plan; • How to disperse economic benefits; • How to provide options to customers who want to purchase more than what is provided in the rate-based program; • Proposed solutions such as community solar program options, utility-scale projects, and high quality Renewable Energy Certificates (RECs); and • Budget Offers. Questions for the Energy Board from staff: • What additional information can be provided? • What do you see as the strengths and weaknesses of our current thinking? • What else should be considered? Renewable Energy Planning Ms. Bigner introduced John Bleem with Platte River Power Authority (PRPA). Mr. Bleem presented information and graphs on the following topics: • Background information on PRPA; • Background information on wind power sites, including Foote Creek, Medicine Bow, and the Silver Sage Project; • Other purchases (RECs, bundled and unbundled purchases); • Historical Resource Mix; • Relative Cost of Sources; and • Historical Pricing – Premium (Premium = Costs – Benefits). Mr. Bleem presented a diagram showing Bundled Sources (Energy + RECs). This leads to less traditional generation and lower emissions. He also presented a diagram showing Unbundled Sources (RECs only). This diagram showed how this leads to less traditional generation, lower emissions, and lower transmission and integration costs. Mr. Bleem presented information and graphs on the following topics: • REC characteristics; • REC purchasers; • Pros and cons of RECs as reviewed by the Electric Board in 2003; • Balancing Key Attributes for New Renewable Sources; and • Renewable Supply and Demand Forecast (100 percent of 2015 need – meeting RES in Fort Collins) Mr. Bleem outlined the options for 2015 and beyond (wind, biomass, biogas, solar, small hydro). Highlights from the discussion: • Increase in the cost of wind; • Increase in component/commodity costs; • The potential for local interest and how this can be achieved without more rate increases; Energy Board Meeting Minutes June 7, 2012 3 • Using the best renewable resources where they exist; • Inventory of renewable resources within the PRPA area, including biogas from the wastewater plants; • Utilizing a prescriptive level of discussion to look at production sources; • Draft some overall guidance related to progress demonstrated on an annual basis; • Climate Action (Green Building Code and Energy Efficiency) versus the Renewable Energy Standard; • Rate increases; • “Piggyback” with large solar plants to meet the standard; • Solar at Rawhide Energy Station; • RECs/Carbon Dioxide (CO2) equivalent offsets and long term contracts; and • Discussion on the Climate Action Task Force. Staff would like a strong recommendation from the Energy Board on suggestions to meet the gap with the Renewable Energy Standard. BFO offers have been submitted and will be presented to the Budget Lead Team in July. The City Manager will make recommendations to Council in August. Staff’s strategy on meeting the standard can be presented to the board in July. Suggestions from the board members: • The strategy should include meeting the state Renewable Energy Standard, impact of rate increases, and connection to the climate action goals; • The suggestions should be tied to multiple goals, not only to the bottom line related to cost; • The benefits of RECs should be considered in the mix; • The Energy Board should make a clear and concise statement to Council regarding meeting the RES goals; and • A memo should be drafted and reviewed by the board members prior to submitting to Council. Plan Fort Collins and Transportation Master Plan Update (Attachments available upon request). Ms. Bigner introduced the item and introduced Transportation Planning Director Kathleen Bracke. This item is presented to the board as a follow-up to the Plan Fort Collins presentation from the May meeting. Ms. Bracke presented information on the following topics: • Transportation Planning Multimodal Solutions; • Keys to success: Collaborative and Innovation; • Major update to City Plan; • Plan Fort Collins Structure; • Vision for a World Class Community; • Sustainability Framework; • Transportation Master Plan (Purpose and Component Updates); • Transportation Master Plan Visions, Principles, and Policies; • Transportation Master Plan Structure; • Transportation Master Plan “New” Ideas (Innovate, Sustain, Connect); Energy Board Meeting Minutes June 7, 2012 4 • New Policy Area for Transportation Master Plan: Reshaping Streets, New/Alternative Vehicles; • Master Street Plan Update/Pedestrian Plan Update; • Multimodal Capital Improvement Plan Update; and • Transportation Master Plan Implementation Chapter Highlights from the discussion: • A board member questioned sidewalk budgets (i.e. who is responsible for installing and improving sidewalks); • Sidewalk improvements can be done in conjunction with street maintenance projects; • Property owners have the option to improve sidewalks; and • Grant funding is also available. Mid-Term Work Plan Assessment (Attachments available upon request). Vice Chairperson Rothe introduced the item and gave the board members the opportunity to discuss the work plan and agenda items. Highlights from the discussion: • A board member would like the Energy Board to be more proactive; • A board member would like the Energy Board to operate at a “higher level” in regards to policy issues; • A board member would like the issue of leasing water for fracking added to a future agenda; • How would the board like to approach the discussion related to the fracking issue; • Specific action the board would like to take on the issue of fracking; • Does this particular item fall within the board’s functions; • Listing the item under ‘Other Business’ on the agenda; • Specific issues related to adding an item to the agenda not on the work plan; • Clarification from the Boards and Commissions Manual on how to approach items not on the board’s work plan; • The Annual Report should be submitted to Council summarizing completed items from the 2012 work plan; • A board member felt it is not too early for the board to look ahead to a 2013 Work Plan; • Prioritizing items due to impacts on the Budgeting for Outcomes (BFO) process; • The board’s impact on the next budget cycle; • The issue of rate structures; and • Fort ZED and the impact on the City of Fort Collins; Mr. Janonis would like to see a memo from the Energy Board on the REC/RES issue. He suggested the board members look at the “Reinventing Fire” video on the Rocky Mountain Institute website before preparing their memo to Council. Staff Reports Energy Policy 2011 Annual Update Ms. Bigner introduced the item. This report was originally presented to the board at the May meeting. This item is presented to inform the board that the final report was submitted to Council in May. Board Member Reports Air Quality Board (Board Member Behm,): Board Member Behrn attended the May meeting. The board drafted a memo regarding air quality impacts of regional oil and gas extraction. The board secretary will request a copy of this memo. Land Conservation and Stewardship Board (Board Member Baun’igarn): Board Member Baumgarn attended the May meeting. The board discussed oil and gas, as well as land conservation issues. Water Board (Board Member Plate): Board Member Plate attended the May meeting. She noted the Water Board did not discuss the issue of water for fracking. Natural Resources Advisory Board (Board Member Baumgarn,): Board Member Baumgarn attended the May meeting. BFO offers were presented. * Board Member O’Neill departed the meeting at 8:22 p.m. Other Business Mr. Janonis encouraged the board members to attend a public session for the BFO process. The next meeting is scheduled for June 13, 2012. Adjournment The meeting was adjourned at 8:30 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 5 June 7, 2012