HomeMy WebLinkAboutEnergy Board - Minutes - 03/09/2017Energy Board Minutes
March 9, 2017
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Energy Board Minutes
March 9, 2017
Fort Collins Utilities Energy Board Minutes
Thursday, March 9, 2017
Energy Board Chairperson City Council Liaison
Pete O’Neill, 970-223-8703 Ross Cunniff, 970-420-7398
Energy Board Vice Chairperson Staff Liaison
Nick Michell, 970-215-9235 Tim McCollough, 970-305-1069
Roll Call
Board Present: Chairperson Pete O’Neill, Vice Chairperson Nick Michell, Alan Braslau, Bill Becker,
Stacey Baumgarn
Late Arrivals: Margaret Moore
Board Absent: Phil Friedman, Greg Behm
Others Present
Staff: Tim McCollough, Christie Fredrickson, John Phelan, Cyril Vidergar, Justin Fields, Kevin Gertig,
Lance Smith, Lisa Rosintoski, Paul Sizemore, Ryan Mounce, Timothy Wilder, Randy Reuscher
PRPA: Paul Davis
Members of the Public: Mark Houdashelt
Meeting Convened
Chairperson Pete O’Neill called the meeting to order at 5:30 p.m.
Announcements and Agenda Changes
None
Public Comment
None
Approval of February 9, 2017 & February 23, 2017 Board Meeting Minutes
Amendments to the February 9, 2017 & February 23, 2017 minutes were made by the Board Members
and the minutes were accepted as amended.
Staff Reports
Executive Director Update
Kevin Gertig, Utilities Executive Director
(attachments available upon request)
The Utility is hosting many supervisor-taught safety courses and Mr. Gertig is very pleased with the
Utility’s safety culture and progress. Interviews to fill the vacant Asset Manager position will begin the
week of March 20, and Mr. Gertig hopes to introduce the new person very soon. Mr. Gertig is very proud
of the work Light and Power staff is putting into primary high voltage underground vault inspections.
Though the inspections are not going as quickly as the Utility initially hoped, but they are committed to
completing all remaining 7,100 by the end of the year, aiming for about 700 a month. They are
dedicating additional labor resources to ensure this goal is met. Chairperson O’Neill asked what the
Utility defines as an asset and what kind of schedule is in place to repeat the inspections. Mr.
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McCollough clarified that the 12,100 inspection points are primary high-voltage underground enclosures,
such as a vault, and the goal is to touch each inspection point on a rotating frequency. Since this is the
first round of systematic routine inspections, the frequency hasn’t been defined yet.
Ms. Rosintoski highlighted several Customer Connections operational results. She advised there were
some telecommunications issues that caused hold times to escalate, which pushed their average wait time
just over their target of 2:00 minutes (or less). Ms. Rosintoski noted they are disappointed in the Utility’s
survey score in “Opportunities to Participate in Conservation Programs,” (58% residential, 64%
commercial) and plan to do more research into how customers are interpreting that question. Overall
Satisfaction remains high, 86% residential and 84% commercial, which is above the target of 80%.
Board member Becker asked if the time period from solar application to power-on is currently measured.
Mr. McCollough advised that metric is not tracked at this time but he will look into potentially bringing it
to the Board in the future date.
Quarterly Financial Report
Lance Smith, Utilities Strategic Finance Director
(attachments available upon request)
Mr. Smith presented year -end Light and Power budget numbers for 2016. Compared to 2015, revenues
were up in 2016; operating revenues were up 6.5% in 2016, which exceeded the 3.2% retail rate increase
due to increased energy sales. With regards to expenses, 2016 was up over 2015 and much of this was
due to system additions and replacements. Operating expenses increased 9% in 2016, and the 2017
budget reflects a 10% reduction in operating expenses, partially due to a shift of capital work out of
operating expenses. However, overall Light and Power was 5.1% below budget in 2016.
City Plan, Transportation Master Plan, Transit Plan Updates
Ryan Mounce, City Planner
Paul Sizemore, FC Moves Program Manager
Timothy Wilder, Service Development Manager
(attachments available upon request)
Mr. Mounce explained that a comprehensive plan is a high level plan for the future to articulate the City’s
vision and goals. It also provides policy guidance and recommended courses of action. Traditional
topics in a comprehensive plain include land use, housing, transportation, economic development, parks
and open spaces as well as sustainability. Some topics to emerge in the the last 15-20 years are: equity,
health and wellness, cultural resources, urban design, resource supply, and resiliency.
The City’s comprehensive plan was adopted in 1997 and is now known as City Plan. Typically City Plan
is updated every five to seven years. Mr. Mounce noted that in 1997 the population in Fort Collins was
roughly 105,000, and today it is closer to 165,000—that means approximately one third of today’s
population was not present when the City Plan was adopted, which is why it’s so important to update the
plan to match the forward thinking ideas of the community today.
Mr. Mounce discussed growth and community buildout in the 1990s and 2000s (garden style apartments
in greenfield, park-like locations), as opposed to the current style of multifamily projects (taller, infill and
redevelopment sites). Vice chairperson Michell mentioned that at one point, the City had a goal to
increase the density of single-family homes, and he asked how that metric is doing today, throughout the
City and specifically along the Mason Corridor. Mr. Mounce advised originally the goal in the
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comprehensive plan was to have a minimum of five dwelling units per acre, so as City Plan is updated
they will measure performance against that goal over the last twenty years.
The City currently operates under the 2011 Transportation Master Plan (TMP). Over the last six years,
the City has seen several successful Outcomes from the 2011 TMP, such as the Mason Corridor/MAX, a
flourishing bicycle culture (Platinum Bike Friendly Community status), safety (multiple year over year
improvements in serious injury crashes), innovative infrastructure, and enhanced travel corridor plans.
Looking forward at the next iteration of the TMP, potential topics could include alignment with the
Climate Action Plan, ongoing system efficiencies (adaptive signals or spot intersection improvements),
travel behavior and patterns (reducing single occupancy vehicle use), creating a balanced transportation
system, accommodating growth, and moving towards zero (deaths).
Enhanced Travel Corridors (ETCs), like the Mason Corridor, provide connections between major activity
centers. Individual corridors have unique ways to provide connections, and some may focus on
enhancing travel time to connect primary destinations. Other ETCs may focus on enhancing infill and
redevelopment along the corridor. The City will be revisiting ETCs to make sure they are focusing on the
right areas and that they have the right tools in place for that specific corridor’s needs.
The City also faces many ongoing transportation challenges, such as congestion, accommodating all
modes of transportation (bicyclists, walking, public transit, and people driving), parking, funding, and the
impact of projects (like property impacts).
Mr. Wilder reviewed the Transit Master Plan against national ridership and investments. Nationally,
transit usage has seen a dip in the last two years, in spite of increased investments. Contrastingly,
Transfort annual ridership has steadily increased over the last three years (78% growth), partially due to
the Max opening, as well as CSU student enrollment increases, and increases in their on-campus parking
permitting. Board member Braslau asked if ride sourcing services like Uber and Lyft are impacting Fort
Collins, like they are in larger metro areas such as New York City. He said ride sourcing companies do
impact transit in some cities, especially during underserviced times like late at night or Sundays.
The Transit Master Plan is responsive to the future and considers a few drivers of change, such as
demographic transitions, data-driven mobility innovations (i.e. using apps for real time bus arrivals, Uber,
Lyft), and an emerging autonomous age (top cost is the cost of operators). The City also needs to find the
right balance between Coverage, meaning dispersed service everywhere, versus Productivity, frequency
and speed where there’s demand.
Some potential opportunities or issues to consider are: funding and the decline of general or federal
funding, the community’s transportation priorities, regional partnerships, and technology and innovation.
Board member Braslau asked if the City is being aggressive enough in its planning to achieve the goals of
the Climate Action Plan. Mr. Wilder explained that the city is still in “make up mode,” because the City
was not aggressive enough in the initial planning in 1997, but that has afforded the City some flexibility
to grow and change as they need to.
Vice Chairperson Michell commented that when the light rail was built in Denver, suddenly commercial
and residential buildings popped up alongside the tracks for miles, an idea of build it and they will come –
he wondered if Max could be marketed similarly. He also commented that residents of nearby
communities like Wellington and Timnath have to commute into Fort Collins because there aren’t
transportation options available to those communities. Ultimately those commuters aren’t helping the
City’s energy usage or greenhouse gas emissions. Mr. Sizemore noted that the City puts out a travel
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pattern survey; the first year focuses on residents’ travel patterns, and the second year will focus on
employee travel patterns, which should capture the commuting patterns of Fort Collins’ surrounding
communities.
Board members also commented that it is difficult to access or use the transit system effectively, or get
around safely as a pedestrian or a bicylist, in Southeast Fort Collins. Mr. Sizemore said a lot of the
infrastructure in that area was put in place at a time when the City wasn’t really thinking about complete
streets, or how residents would get around those areas without getting in their cars. He agreed Southeast
Fort Collins has been, and will continue to be, one of the challenge areas in the City.
Board member Baumgarn asked about the timeline of the plan updates. Mr. Mounce explained that they
haven’t started yet, but hope to select a team of consultants very soon and then begin public kickoff and
engagement events later this spring. Overall, they expect it to be an 18-24 month process once kickoff
begins.
Time of Use Pilot Study
Lance Smith, Utilities Strategic Finance Director
Randy Reuscher, Utility Rate Analyst
Justin Fields, Utility Rate Analyst
(attachments available upon request)
Mr. Reuscher compared the City’s current tiered rates to the Time of Use (TOU) tiered rates used in the
pilot study. The off-peak hours on TOU came out less than the current Tier 1 rate.
Board members commented that the public might view the on-peak hour charges as a way to upcharge
rate-payers in the middle of summer when rates are highest. Mr. Reuscher explained on-peak hours are
framed around historical peaks, and they didn’t want to make the window too wide in order to allow
customers to have the opportunity to adjust their energy usage behavior, or to shift outside of the peak
window. Board member Braslau mentioned the City should be creating any rate structure that incents
people to conserve, and one that will help the City meet its goals, whatever those goals are, as long as the
overall revenue corresponds to the costs. Mr. Smith also explained the proposed rates for residential
customer rate class’ portion of the Platte River demand charge is in the on-peak charge, the energy
efficiency cost is also put into the on-peak charge, and the rest of the distribution facilities and energy
cost are within both the on-peak and the off-peak.
Board member Becker noted there should be some educational technology available to rate payers, and he
thinks he would enjoy being on this structure because he’d like to make an impact on his bill.
Chairperson O’Neill said it would also be appropriate to roll out a new demand response program in
conjunction with the roll out of TOU rates to enable customers to change their usage patterns accordingly.
The pilot study ran for 12 months, beginning in November 2015. At the conclusion of the study, a survey
was sent to participants, and at the end of 2016 the City began a statistical analysis. The study had four
objectives: determine energy conservation impact, measure potential demand reductions, gauge customer
preference for different rate structures, and ensure revenue requirements are met. There were 1,200
customers on two different TOU rate structures: the first model was a standard on-peak and off-peak
charge, and in the second model the energy efficiency dollars were removed from the on-peak and off-
peak charges and rolled that into a tiered overlay. The study also included four control groups, awareness
of study, peak pricing info, weather normalize, and best bill guarantee. There were 7,200 customers in
the control groups and 1200 opted out right away, which left about 850 customers per each control group.
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Since institution in 2012, the current tiered rate structure showed no reduction in energy consumption. In
the TOU pilot study, customers on the TOU rate structure reduced their energy consumption by an
average of 2.5% annually; however, adding a tier to TOU rate had no statistical impact on energy
consumption. During an on-peak window on a summer day, customers on a TOU rate averaged a 7.5%
energy usage reduction; however, the TOU group also used slight more energy during off-peak hours.
The Customer Survey was sent to all 7,200 participants (including everyone who opted out) and they had
roughly 1,450 responses (20%). The survey showed that 47% of customers infrequently or never seek out
energy consumption information, but 51% seek information when they receive their monthly bill. 42% of
customers agree rates should balance equitable cost recovery with environmental concerns. 25% of
customers can accurately identify their rate structure. 38% of customers are conscious of their energy
usage, 8% of customers had no concern for cost, and 31% use energy efficient bulbs and/or appliances.
Vice Chairperson Michell asked if the Utility could distribute mailers to show ratepayers how much
energy they used during peak and off peak hours. Mr. Reuscher agreed that the Utility could utilize the
Opower reporting to circulate key messages like that.
On the TOU and TOU tiered rates, most residential customers reduced their energy consumption, so they
saw a slight savings each month. Both all-Electric and Solar Net Metering customers saw increases on
their monthly bills on the TOU and TOU tiered rate structures.
Staff recommends transitioning to a standard TOU rate structure for all residential customers, including
residential demand and solar net metering customers. The standard TOU rate saw an overall reduction in
energy consumption (2.5%), and better aligns benefits of solar production with costs. TOU also
encourages the use of electric vehicles and charging during off-peak hours, which is consistent with the
community’s climate goals. Staff also considers this to be a more fair and equitable rate structure.
Council would like to reconvene with Staff in May, and Staff is hoping for their approval to kick off a
six-month rollout and public outreach campaign.
Board member Becker commented that it’s natural for people to not understand, but with the right
education it will be easy to coach ratepayers to make decisions about their usage. Mr. Becker encouraged
Staff to give the Utility the flexibility to evolve with peak-time energy usage, especially as solar becomes
more prevalent. Mr. Smith advised they looked at 10 years of historical data to determine the peak and
off-peak windows, and reiterated they wanted a window that was narrow enough to shift behaviors and
flatten the load curve. Mr. Becker inquired if there will be an opt-out plan, and Mr. McCollough advised
there is no recommendation for an opt-out program. Board members commented that this is the
beginning of a more intelligent metering system.
Chairperson O’Neill moved the Chairperson write a letter to Council in support of a residential
Time-of-Use rate structure and would like Staff to develop a detailed education and implementation
plan to bring to the Board at a future meeting.
Board member Baumgarn seconded the motion.
Discussion of the Motion:
Board member Moore asked if single-metered customers in multifamily dwellings are also on TOU rates.
Staff advised that they are on a different structure based on demand, but that is not considered normal and
is a very small service group.
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Vote on the Motion: It passed unanimously, 6-0, with 2 absent
Board Member Reports
The Energy Board Expanded Roles memo was received by Ross Cunniff. Chairperson O’Neill is on the
interview panel for the Strategic Asset Manager.
Board member Braslau mentioned that the City’s current projections show we will come up short on the
Climate Action Plan goals.
Future Agenda Review
Mr. McCollough reminded the Board that the April Board meeting will be held at 117 N Mason in the
Board Room. He also advised Reliability and Asset Management discussion should be delayed until the
new Strategic Asset manager has been on boarded.
Board member Braslau asked about Broadband; Mr. McCollough explained that until Council decides
what is happening with a third-party option, it will not actively be discussed at the Board. If Broadband
goes underneath the City as a Utility, it may or may not be under the purview of the energy board.
Adjournment
The meeting adjourned at 8:41 p.m.
Approved by the Energy Board on April 13, 2017
________________________________ ______________
Board Secretary, Christie Fredrickson Date
4/14/2017