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HomeMy WebLinkAboutEnergy Board - Minutes - 11/09/2017Fort Collins Utilities Energy Board Minutes Thursday, November 9, 2017 Energy Board Chairperson Pete O’Neill, 970-223-8703 City Council Liaison Ross Cunniff, 970-420-7398 Energy Board Vice Chairperson Nick Michell, 970-215-9235 Staff Liaison Tim McCollough, 970-305-1069 Roll Call Board Present: Vice Chairperson Nick Michell, Alan Braslau, Bill Becker, Stacey Baumgarn, Margaret Moore, Amanda Shores, Greg Behm, John Fassler, Stacey Baumgarn Late Arrivals: Chairperson Pete O’Neill Board Absent: none Others Present Staff: Tim McCollough, Christie Fredrickson, Lance Smith, John Phelan, Coy Althoff, Bob Hover, Cyril Vidergar, Kevin Gertig PRPA: Paul Davis Members of the Public: Rick Coen, John Graham Meeting Convened Vice Chairperson Michell called the meeting to order at 5:30 p.m. Announcements and Agenda Changes None Public Comment None Approval of October 12, 2017 Board Meeting Minutes Board members suggested amendments to the October 12, 2017 minutes. The minutes were approved as amended. [5:45] Staff Reports (attachments available upon request) Broadband Vote Update Tim McCollough, Light and Power Operations Manager The broadband vote, Ballot Question 2B, officially passed with 57.14% of the votes. A City Council Work Session scheduled on November 28, and staff expects to receive clearer direction on how to proceed after the vote. Chairperson O’Neill asked if there is any more clarity on the construction schedule; Mr. McCollough said that more direction will come from Council after the work session, and reminded the board the vote does not require the City to move forward with broadband. Rather, it only amends the City Charter to allow Council to authorize utility-provided telecommunication facilities and services if they so choose. Battery Storage Pilot John Phelan, Energy Services Manager The purpose of the Battery Storage Pilot is to understand and demonstrate how utilities infrastructure and programs interact with battery technologies. The Battery Storage Pilot was a budget offer for 2017- 18, and it was allocated $100,000 each year for two years. The project is evaluating a range of use cases in both commercial and residential integration of solar plus storage. In the first half of 2017, staff developed a dual path approach—a single commercial project (likely to happen at the Utilities Administration Building), and a residential, rebate-driven model. Chairperson O’Neill asked if the project funding only covers staff time to work with customers, or if it also provides rebates to encourage participation. Mr. Phelan said the allocated $200,000 does not cover staff time (that is paid from their regular salaries), but the rebates are provided in exchange for information, monitoring, and control of the battery system. Board member Braslau asked if staff could share the different use cases in the future. Mr. Phelan said yes and they hope to come back and share their findings early next year. Vice Chairperson Michell asked if the funding does not cover staff salaries, how much how time is staff able to devote to this project; Mr. Phelan said Leland Keller was brought on in July 2017, and his focus is in two areas: the residential solar rebates program, and the battery storage pilot; so in the course of a year, he expects this project will be half of Mr. Keller’s time. Board member Becker said Poudre Valley REA is doing a battery pilot too, said Board member Becker, and suggested to consider their program as an additional data point. Mr. McCollough also suggested the Future State of the Electric System Design Subcommittee could meet regarding this topic. Reliability and Asset Management Bob Hover, Electric System Design & IT Manager Coy Althoff, Asset Manager (attachments available upon request) Mr. Althoff is the new Asset Manager for Fort Collins Utilities, covering Light and Power, Water, Wastewater, and Stormwater. He’s working to pull together a core team consisting of an Asset Data Scientist, Utilities Finance Director, as well as other stakeholders such as Operations Managers. He’s challenged with taking a localized approach to asset management and unifying it into an enterprise. Mr. Althoff is currently working on gaining knowledge, assessing existing asset management related practices, and benchmarking with similar utilities, such as Western Area Power Administration. This is the beginning of a three-part series: Substation Reliability & Maintenance with Bob Hover, Electric Distribution Maintenance Program (presenter TBD), and Utility Performance Indices (presenter TBD). Mr. Hover reviewed power delivery. We have three power sources, coal, hydro, and wind, which are brought through power transmissions. There are also some cogeneration sources on the grid. Electricity from all these sources is sent through the power substations, where the voltage is stepped down and transmitted out among the community. The City has used a standard design for all substations for many years, which helps to keep engineering and staff time costs down, especially for maintenance. Substation assets are very expensive, and have long lead times prior to delivery, typically 40-52 weeks. There are seven substations in Fort Collins, and the transformer capacity is 800 MVA. The substations serve 940 circuit miles of underground cable, and approximately 78,000 customers. Per a 2014 Risk Management report, the net worth of the seven substations is $53,071,024, while the average time to design, procure equipment, construct, and commission a new substation is two years. Mr. Hover noted that many years ago, a former engineer had the foresight to size all the substation infrastructure equipment to handle twice the required capacity, so accommodating growth is as simple as changing out a transformer. Because of this foresight, Fort Collins is well equipped for the future, which is a luxury many communities don’t have. The Electrical Substation Maintenance group’s responsibilities include: Transformers, Electrical Switchgear & Capacitor Banks, Power Circuit Breakers, Protective Relays, Control and Power Cable Terminations, DC Battery Banks, Supervisory Control & Data Acquisition (SCADA), Oil Spill Prevention Control & Countermeasure plans (SPCC), Substation Security, National Energy Reliability Council (NERC) Compliance. Manufacturer’s recommendations for maintenance and testing are followed, as well as NERC guidelines, which dictate fixed interval testing for specific equipment. Many tests are completed in conjunction with Platte River Power Authority. NERC audits are completed every six years, and the last two audits were successful (2008 and 2014) with no violations. Other testing or inspection intervals are completed ranging between quarterly (battery inspection/maintenance) and up to six years (battery load bank tests, relay tests). Mr. Hover reviewed some of the security features and practices for the substations. Board members inquired about false trips by wildlife, and Mr. Hover said those trips do happen periodically. Vice Chairperson Michell asked what happens if a substation gets struck by lightning; Mr. Hover said a simulation of a full lightning strike is performed at the factory, which is part of the reason why they only use a select group of manufacturers. Substations also have several lightning masts around the grounds, but as far as Mr. Hover knows, lightning strikes have never affected the operation of a Fort Collins Substation. Fort Collins maintains high standards in safety, equipment, application, and operational practices in the substations, which is what makes them world class. Mr. Hover said his staff is excellent, composed of experienced and dedicated employees who take personal ownership and pride in what they build and operate, with a management team that supports their mission. Board member Baumgarn said he is very impressed with the degree of quality and standardization Fort Collins uses; he is curious if that same level is utilized across the all four municipalities under Platte River. Mr. Hover said the City has always been willing to spend money in that area, but each community has different practices, so it is difficult to share equipment. Mr. McCollough added that the City does have an intergovernmental agreement within Platte River for additional services, so there is some standardization with Platte River and the other distribution utilities with regards to sharing staff and other resources, in spite of the varying equipment. Board Member Reports Chairperson O’Neill went to the CSU Energy Transitions Conference; Board members Baumgarn, Shores and Braslau were also there, along with several other City Staff members. Former Governor Ritter gave a presentation with three other current Governors from Colorado and neighboring states (Wyoming, and Montana). Vice Chairperson Michell watched that particular panel’s livestream, and Board member Baumgarn suggested sharing the symposium’s broadcast tape link when it becomes available. Board Member Shores said one thing she found particularly interesting was the process of decarbonizing fossil fuels and how it’s most efficient at the utility scale. Chairperson O’Neill noted one of the big takeaways from the conference was that over half of the existing coal-power capacity in the western US will be decommissioned over the next 10 years, and the remaining plants will be over 50 years old and on the way out anyway due to the age of the plant. Chairperson O’Neill also noted City Council approved Time of Use on first the reading, but they selected Option 3. Future Agenda Review The December Agenda is very full. Board member Braslau suggested two future agenda items, Utility Owned Electric Vehicle Supply Equipment legislation, and Low Income Programs. Adjournment The meeting adjourned at 7:36 p.m. Approved by the Energy Board on December 14, 2017 ________________________________ ______________ Board Secretary, Christie Fredrickson Date 12/15/2017