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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/12/2021 - OVERVIEW OF LIGHT AND POWER UTILITYDATE: STAFF: October 12, 2021 Theresa Connor, Interim Utilities Executive Director Gretchen Stanford, Interim Deputy Director John Phelan, Energy Services Manager Adam Bromley, Director of Operations & Technology Lance Smith, Utilities Strategic Finance Director WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Overview of Light and Power Utility. EXECUTIVE SUMMARY The purpose of this item is to provide Council an overview of the Light and Power Utility, answer questions and receive feedback about direction of the utility. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does Council have any questions or feedback about direction of the Light and Power Utility? BACKGROUND / DISCUSSION Electricity powers our lives, the local economy, homes, and businesses that make Fort Collins the amazing place it is. Light and Power provides electricity to nearly 77,000 residential, commercial, i nstitutional, and industrial customers. Formed by community initiative in 1935, Light and Power has grown with Fort Collins, and boundaries will eventually extend to the entire growth management area. With an overall budget of over $140 million, Light and Power is part of the Utilities organization with 120 employees and the support of 100 Utilities employees from other service areas. It is the largest single service unit in the City. Light and Power is a municipally owned electric utility and a part owner with three other cities of Platte River Power Authority (Loveland, Longmont, and Estes Park). The electricity industry, around the globe and here in Colorado, is changing rapidly to envision a future electric system very different from the legacy systems in use for nearly 100 years. Solar panels, wind turbines, and batteries will support an interconnected system across many states. Individual homes and businesses will be able to choose to provide some of their energy directly. Our buildings and electric vehicles will become part of the system, adjusting use up or down to help align the demand with the supply. Light and Power is well-positioned to help lead this transition. The challenges Light and Power face today and tomorrow require new technology, innov ation, and foresight. Investments in our distribution system and customer programs will help Light and Power continue a legacy of highly reliable, affordable, and environmentally responsible electricity services. Fort Collins traditionally has been served by coal power plants and long-established hydro-electric sources. Light and Power is a municipally owned electric utility and a part owner (with three other cities) of Platte River Power Authority, giving us substantial influence and control over electricity supply options. Currently, non-fossil resources account for over 50% of our electricity sources, resulting in a sharp decrease in emissions from previous years. In October 2018, Council adopted a goal of 100% Renewable Electricity by 2030. Months la ter, Platte River Power Authority adopted a Resource Diversification Policy that includes a target of 100% non-carbon resources by 2030. Looking towards electricity emissions in 2030, Platte River has announced a new 150 -megawatt solar project to be online by 2024; plans to close Rawhide Unit 1 coal generator by 2030; and their Integrated Resources Plan calls for 90% non-carbon sources by 2030. Since electricity makes up about half of Fort Collins October 12, 2021 Page 2 community inventory, these commitments will contribute immensely toward reducing emissions. For over 100 years, Light and Power has been matching the production of electricity to the aggregate load shape of the demand. As we proceed to increase the amount of variable renewable electricity sources, such as wind and solar, we also will need to begin shaping and flexing the demand load to align with the supply. This transition will take years, with electricity supply, demand and storage working together to achieve a reliable, affordable, and clean energy system. None of this happens without the daily round-the-clock efforts of staff to operate and maintain the over 2,000 miles of underground cable, seven substations, and thousands of transformers and streetlights. Fort Collins residents and businesses experience extra ordinary, industry-leading, reliability. Each year, the customer service and billing staff support the administration of nearly 1 million bills. The Numbers (2020 data) • Residential customers - 68,505 ▪ 36% of electricity use • Commercial customers - 8,775 ▪ 31% of electricity use • Industrial customers - 14 ▪ 33% of electricity use • Community annual use - 150,000,000 kilowatt-hours • Community peak demand - 318 megawatts (2021) • Number of employees - 120 • 2021 Operating Budget - $143 million • 2021 Capital Budget - $12 million Customer Satisfaction Survey To continually improve services, Utilities requested feedback from residential electric customers about their experiences and quality of services they receive from Light and Power. Beginning in 2020 , Utilities contracted with J.D. Power, a global independent market research company, to conduct residential electric and water customer satisfaction surveys. The advantages of using J.D. Power are: 1. Utilities can compare our results nationwide to west mid-size utilities (143 of the largest electric utility brands across the U.S., representing more than 102 million households). 2. With J.D. Power national data and results, staff has access to key performance indicators that drive higher overall customer satisfaction. 3. Utilities receives expert reporting, analysis, and recommendations in relation to our data from J.D. Power experts. In the most recent survey during the pandemic, J.D. Power results say, “Open and frequent communication about policies and assistance programs has proven to be key in maintaining high customer satisfaction, especially during the pandemic.” It proves that timely responses and open communication are high priorities for excellent customer service. At this time, Utilities has residential results and will have feedback from our commercial accounts at the end of October 2021. It is important to note that JD Power acknowledges that Fort Collins Utilities has one of the lowest average bills when compared to utilities of similar size in the west. The average west mid-size utility bill is $125 and the Fort Collins’ average bill per JD Power’s evaluation is $91. October 12, 2021 Page 3 Residential 2020 • Wave 1 - April through May ▪ Responses: 1,048 ▪ Total surveys sent out via email: 22,224 • Wave 2 - October through November ▪ Responses: 808 ▪ Total surveys sent out via email: 22,334 • Total responses - 1,856 • Response Rate - 4.1% Commercial 2021 • One wave only - June through August ▪ Closed on 08/27/21 ▪ Findings received by the end of October ▪ Total surveys sent out via email: 2,334 ▪ Responses: not yet available In 2020, the Residential Electric survey achieved a response rate of 4.1%, which is a rate four times higher than our previous survey participation rate. In addition to Overall Satisfaction, the survey uses six factors for measuring customer satisfaction. Overall Satisfaction Fort Collins Utilities scored 742, which is below the industry average of 751 and below the mid -size west utilities average of 745. It is an excellent score for a newly participating utility. However, Fort Collins Utilities’ score of 742 was below the top quartile score of 816, which is an overall customer satisfaction greater than 75% of national utilities, e.g., a top-performing utility. Quality & Reliability Fort Collins Utilities scored 842, above the industry average of 782 and above the mid -size west utilities average of 782. Billing and Payment Fort Collins Utilities scored 811, just above the industry average of 803 and mid-size west utilities average of 799. Price Fort Collins Utilities scored 619, below the industry average of 700, and below the average of mid -size west utilities of 690. The average reported customer electric monthly bill in Fort Collins was $91, lower than the national average of $121 per month and lower than the average mid-size west utilities of $125 per month. Communication Fort Collins Utilities scored 663, below the industry average of 721 and below the average mid -size west utilities of 701. Corporate Citizenship Fort Collins Utilities scored 705, below the industry average of 708, and below the mid -size west utilities average October 12, 2021 Page 4 of 707. Customer Care Fort Collins Utilities scored 777, below the industry average of 809 and below the average of mid -size west utilities of 809. Customer service includes both the phone and digital experience. Overall, Utilities performed above average on the phone experience and below average on the digital experience. The chart below shows what drives overall satisfaction when a customer is responding to the survey, and provides us with the comparison between the mid-size west utility industry. In summary, the utility industry nationwide continues to respond to the needs and desires of our customers and scores continue to increase yearly. Partnering with J.D. Power enables Fort Collins Utilities to compare our performance within the evolving industry to measure and achieve outstanding customer service. Background of the Infrastructure System Light and Power operates and maintains the electric system that serves Fort Collins’ residential and commercial customers, as well as designs and installs all new electrical infrastructure. The utility is committed to delivering safe, reliable, affordable electric service while supporting the values of the community. It also is focused on the implementation of new technologies that support Our Climate Future goals and initiatives, more effective strategic planning, and more efficient business processes. Light and Power provides servi ce within the city limits and will eventually provide service to the entire Growth Management Area. In the 1960s, Council mandated that new electric facilities would no longer be allowed overhead. In the 1980s, Light and Power embarked on a 20+ year initiative to actively convert existing overhead facilities to underground. The forward thinking of the City and Light and Power leadership to proactively transform our electric utility in this way has far reaching effects on our distribution system safety, f inancial health, and reliability. Following is a summary of our distribution system at a very high level, highlighting the attributes: • Seven substations • 2,000 miles of conductor - 99.8% is underground • 8,600 transformers - 385 Art in Public Places Transformer Installations • 12,000 streetlights - 40% are Light Emitting Diode (LED) lights October 12, 2021 Page 5 • 318.6 MW peak load Reliability Light and Power operates and maintains a system that is 99.8% underground. The underground equipment installed to run the electric system dates as far back as the early 1970s and, in rare cases, the 1960s. As the equipment reaches the end of its operating life, Light and Power personnel perform analyses, record failure analysis, and use that data to understand trends in how well our f acilities are meeting their expected lifetime. This historical data paired with recent outage information, the environment in which the equipment is installed (e.g., soil and water chemistry), and time installed are all used in a statistical analysis to pr edict where future outages are most likely to occur. These predicted locations make up the list of prioritized capital replacement projects as part of our ongoing asset management program. The data drives where we make monetary investments, so we can keep reliability high while ensuring good stewardship of our rate payers’ money. Light and Power reports on three different reliability metrics: • SAIDI - how long, on average, each customer was without power in the last year • SAIFI - how many times per year the average customer experienced a power outage • CAIDI - how long, on average, it takes to restore power to a customer experiencing a power outage Considering these metrics, on average, a customer in Fort Collins can expect to experience a single outage about every 5.5 years, which will last 62 minutes on average. Our reliability performance is among the best in North America. Electric Resources and Goals Fort Collins is a member-owner of Platte River Power Authority, a joint action agency providing electr icity generation and transmission services. Platte River provides 100% of the electricity to Fort Collins, and we are a 47% equity owner of Platte River. All four owner cities have recognized Platte River’s Resource Diversification Policy goal of a 100% noncarbon resource mix by 2030. This policy was adopted by Platte River’s Board of Directors in 2018 to proactively work toward achieving a 100% noncarbon resource mix by 2030, while maintaining three pillars of safely providing reliable, environmentally responsible, and financially sustainable energy and services. When adopting this policy, the board also recognized certain external requirements related to technology evolution and market development. In the most recent Integrated Resources Plan (2020), the Platte River board endorsed a portfolio path where Platte River retires all its coal-fired generation by 2030 while continuing to reliably meet the owner communities’ load obligations by economically adding new resources and continuing to meet or exceed all environmental regulations. The recent announcement of plans to retire Rawhide Unit 1 by 2030 aligns well with this portfolio. Platte River also has committed to exiting their partial ownership of two coal units in the Craig complex. In March 2021, with the adoption of the Our Climate Future plan, Council reaffirmed the community carbon emissions and renewable electricity goals. Our Climate Future also includes these additional goals related to energy for the community: • Provide 5% of community electricity from local distributed renewable sources by 2030. • Achieve a 20% reduction in forecast electricity use between 2021 and 2030 through efficiency and conservation programs in all building types and industrial processes . The City’s role as the community’s electricity provider and energy code authority, and a recognition of the importance of natural gas use, drive the following additional energy objectives: • Annual reliability metrics of Customer Average Interruption Duration Index (CAIDI) is a measure of how long, on average, it takes to restore power to a customer experiencing an electric outage. Target is less than 45 October 12, 2021 Page 6 minutes. • System Average Interruption Duration Index (SAIDI) is a measure of how long, on average, each customer was without power in the last year. Target is less than 30 minutes. • System Average Interruption Frequency Index (SAIFI) is a measure of how many times per year the average customer experiences a power outage. Target is less than 0.66 annually. • Achieve a 10% reduction in forecast natural gas use between 2021 and 2030 through efficiency, conservation and electrification programs in all building types and industrial processes. • Advance efficiency, indoor environmental quality, installed performance and readiness of distributed energy resources through adoption and enforcement of updated energy codes on a three -year cycle. Adopt current International Energy Conservation Codes (IECC) with local amendments within one year of issuance. • Support the deployment of distributed energy resources to achieve bi-directional demand flexibility capacity of 5% of peak loads by 2030. Distributed Energy Resources Distributed energy resources, or DERs, are increasingly important aspects of the electric system. From an old - fashioned thermostat to a rooftop solar system or an electric car, these devices and systems will be essential to optimizing and operating a clean renewably powered grid. DERs are physical or virtual devices or systems that can be deployed on the electric distr ibution system or on customer premises to provide value to all customers through electric system optimization and/or individual customer benefits. The general types of DERs include: • Distributed generation - Technologies located on the distribution system that generate energy, such as rooftop solar; • Energy efficiency - Methods of reducing energy used by equipment, appliances or processes while still providing the same beneficial results; • Beneficial electrification - Replaces fossil fuel use with electricity to reduce emissions and energy costs, including greater use of electric vehicles and electric heat pump technology; • Demand response - Also known as responsive load, refers to shifts in energy usage to better align with times that energy supply is more readily available; and • Distributed energy storage - Includes technologies like batteries that can store energy from the electric system when it’s plentiful or inexpensive and return it to the system when needed. Programs and Services Utilities offers a comprehensive set of services to help all customer segments manage their use and bills. These efforts leverage programs, pricing, and education to support overall outcomes of efficiency, conservation, grid flexibility, carbon savings and affordability. The programs accumulate savings over time - in fact, our overall community electricity use would be 15% higher without the programs implemented since 2005. This reduction in use is saving Fort Collins customers over $20 million in lower utility bills th is year, with associated lower wholesale costs. Fort Collins helped to establish the American Public Power Association (APPA) Smart Energy Provider program and continues to be designated. Efficiency offerings are one of the performance areas scored in t his program. Programs and services to help manage energy use and utility bills include: ● Residential ▪ Time-of-Day (TOD) pricing (conservation, EV friendly) ▪ Epic Homes (streamlined efficiency with loans and real estate documentation) ▪ Efficiency Works Marketplace (online store) ▪ Solar and battery incentives ▪ MyEnergy home energy reports and online portal ▪ Peak Partners demand response (thermostats, water heaters) ● Low income October 12, 2021 Page 7 ▪ Income Qualified Assistance Program, Medical Assistance Program, Payment Assistance ● Commercial, institutional, industrial ▪ Efficiency Works Business ▪ Solar rebates ▪ Peak Partners with coincident peak notification ▪ Integrated Design Assistance Program (new construction) Looking ahead to 2030 and beyond, Energy Service s will shift the design and implementation of customer programs with three co‐optimized outcomes: ● Carbon reduction ● Customer load shaping ● Grid flexibility The overall goal is to improve the energy productivity of buildings while improving occupant c omfort, safety, and health, as well as enhancing the purpose and performance of the activities taking place in buildings. An additional goal is to use energy more productively and efficiently while improving outcomes for historically underserved groups and supporting other sustainability objectives. Challenges, Opportunities, Innovation The electric utility industry, and Fort Collins Light and Power, are facing unprecedented change in the coming decades. We know there will be more variable wind and solar generation sources, new technologies and business models that together mean evolving risks and opportunities. Fundamentally, solving these challenges involves a set of dynamic and changing relationships between customers and Utilities, between Utilities and Platte River, and between Platte River and the regional electric system. History of Innovation Light and Power has a long history of innovation and adoption to a changing Fort Collins and now, a changing world. From our underground distribution syst em to the formation of Platte River to the rapid adoption of air conditioning and implementation of advanced metering and TOD pricing, each step has prepared us for what comes next. Looking ahead, we see rapid increases in renewable energy, electrification of building and transportation uses, and the integration of Connexion as opportunities for innovation. A partial list of these utility challenges includes: ● Customer DERs ▪ Electrification - building heat and transportation ▪ Solar and batteries ● Growing climate risks ▪ Extreme heat ▪ Smoke ▪ Reliability for safety and emergency management ● Efficiency and conservation ▪ Improving comfort, health and safety ▪ Reaching historically underrepresented groups ▪ Updated financial models ▪ Residential and commercial rates which align with scaled-up solar ▪ Wholesale and retail rate alignment over time as the system evolves ▪ Capital planning over the next decade October 12, 2021 Page 8 ▪ Electric capacity fees and EV charging Utilities is fortunate to have a wide range of tools in the toolbox for addressing these challenges, including: ● Physical system ▪ Substations, transformers, cable (reliability prioritization) ▪ Advanced metering ● Software and controls ▪ Advance distribution management system (ADMS) ▪ Distributed energy resources management system (DERMS) ● Manage, forecast, control and monitor distributed assets ● Broadband infrastructure alignment ● Planning ▪ Coordinated capital and budget planning ▪ DER Strategic Plan with Platte River and cities ▪ Integrated Distribution System Planning ● Programs and services ▪ Designed for equity, carbon savings and grid flexibility For over 100 years, Utilities has been matching the production of electricity to the aggregate load shape of the demand. As we proceed to increase the amount of variable renewable electricity sources, such as wind and solar, we also need to begin shaping and flexing the demand load to align with the supply. This transition will take years, with electricity supply, demand and storage working together to achieve a reliable, affordable, and clean energy system. The alignment of our customer pricing with that from Platte River and eventual markets, will be critical to the integration of DERs and the financial sustainability of Utilities. Light and Power can leverage investments of time and money in our electric system, pricing structures, software, planning, programs and broadband to deliver on clean energy and equity goals while meeting our community’s needs for reliable and affordable electricity. Financial Outlook The Colorado Association of Municipal Utilities (CAMU) conducts semi-annual rate comparisons across the state. The three charts below show how customers in Fort Collins benefit from the long -term planning and maintenance of infrastructure through lower rates than other Coloradoans while enjoying higher than average reliability. October 12, 2021 Page 9 Light and Power Capital Improvement Plan The Capital Improvement Plan (CIP) for the Light and Power utility includes capital improvements to meet new growth through development and annexations, as well as a significant increase in asset renewal of the distribution system. The Light and Power CIP is currently being updated and will be presented to the Council Finance Committee this winter. Light and Power Operations Operating revenues have grown modestly over the past decade with rate increases often not being fully realized. Modest rate adjustments will be necessary to increase revenues in this utility service over the coming decade to October 12, 2021 Page 10 meet the anticipated increase in the level of capital investment. The colored area represents the 95% confidence band around the expected operating expense. Light and Power Operations & Maintenance expenses have increased 2.5% over the past decade. If this can be maintained over the coming decade, this Enterprise Fund will be well -positioned to meet the anticipated increase in capital investments. The colored area represents the 95% confidence band around the expected operating expense. The combination of operating revenues increasing very modestly and O&M increasing at a slightly faster rate will, over time, reduce the operating income being generated for this utility. However, operating income is expected to remain adequate to meet all operating requirements, climate goals and debt service needs with modest rate adjustments. October 12, 2021 Page 11 Light and Power Rate and Debt Forecasts As the table below shows, very modest rate adjustments are anticipated along with the issuance of $20 -30 million of debt over the coming decade to provide adequate financial resources to complete the anticipated $150 -225 million of capital improvements. ATTACHMENTS 1. Powerpoint Presentation (PDF) Fort Collins Light & Power Utility OverviewOctober 12, 2021Sustainable, Safe, Reliable and Affordable Electric Service City Council Work SessionATTACHMENT 1 2Question for CouncilAre there any questions or feedback about the direction of Fort Collins Light & Power? Overview1 | Strategic Alignment2| Customer Overview & Voice 3| System Overview & Challenges4| Innovation & Opportunities5| Financial Considerations6| How it Happens 7| Questions, Comments & Discussion3 4City Strategic Plan AlignmentEconomic Health 3.5Environmental Health 4.1 High Performing Government 7.1 Our Climate Future Goals• Reduce 2030 greenhouse gas emissions by 80% below 2005 baseline levels• Provide 100% renewable electricity by 2030 with grid and local sources• Additional targets for local renewables, electricity and natural gas efficiency, grid flexibility, electric reliability and energy codes Our Customers5Customer Accounts68,505 residential8,775 commercial14 industrial 6J.D. Power ThemesReliable Utilities Service• Underground lines• Few outagesCare for the Environment• Renewable energy focus• Conservation programsGreat Customer Service• Well informed/responsive• Sense of community J.D. Power ThemesElectric Rates • Time-of-Day pricing• Pricing changesCommunication• Conservation tips, rebates• Utility scamsBilling & Technology• Billing system• Text messaging7 Overhead Power LinesTrimmed TreesLess Security Underground Power LinesArt in Public PlacesIncreased SecuritySome SolarAdvanced MetersUnderground VaultsTree Growth Electrified HeatingIncreased SolarElectric VehiclesBattery Storage‘Smart’ Homes Distribution System and Service Area137 substations8,600 transformers2,000 miles of cable12,000 streetlightsOver 318-megawatt peak load this year 14Infrastructure Overview - Electricity Sources• 100% non-carbon• 2020 integrated resource plan for zero-coalElectric carbon emissions are down 38% from 2005.Solar – 4%Fossil (coal, natural gas, purchases) – 54%Wind – 23%Hydro – 19%Fort Collins 2020 ResourcesPlatte River Power Authority 2030 Goals 15Reliability - Data Driven Investment and PrioritiesTrasAllCSULoadCat3_4CriteriaMet")3"4MODOHgrt40yrs_Water_OptHSGi_Bin!(Cold Spot - 99% Confidence!(Cold Spot - 95% Confidence!(Cold Spot - 90% Confidence!Not Significant!(Hot Spot - 90% Confidence!(Hot Spot - 95% Confidence!(Hot Spot - 99% ConfidenceModified Overhead Transformers+40 Years Old, Water in VaultTransformers in Cable Replacement Areas, (Modified Overhead,+40 Years Old )CSU Loading Study: Transformer Load Criteria MetCable Replacement Area Boundaries Developed with Failure Data and Multivariate Geostatistical Analysis 16Infrastructure Overview – ReliabilityLoveland, CO (2019)Poudre Valley REA, CO (2019)Colorado Springs, CO (2019)City of Chattanooga, TN (2019)Fort Collins, CO (2019)Fort Collins, CO (Jul 2021)Austin Energy, TX (2019)Naperville, IL (2019)APPA 2nd Quartile (Median), SAIDI = 42.3APPA 3rd Quartile, SAIDI = 84.9APPA 1st Quartile, SAIDI = 20.80204060801001201401601800.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0CAIDI, MinutesSAIFI, Occurances2019, Utilities Reporting to EIA861 w/ >25k Cust (366)Desired Result:Utility ComparisonsData Source: Department of Energy’s Energy Information Office Survey on ReliabilityJul 2021Desired ResultData Source: Department of Energy’s Energy Information Office Survey on Reliability (EIA861)http://www.eia.gov/electricity/data/eia861/index.htmlJul 2021<-- Fewer Outages More Outages --><-- Shorter Outages Longer Outages --> CustomersCustomers• Residential• Low-income• Commercial, institutional & industrialToolsTools• Programs•Pricing• BehaviorOutcomesOutcomes• Efficiency• Conservation• Grid flexibility• Carbon savings• Affordability17Infrastructure Overview - Customer Energy Services Infrastructure Overview - Distributed Energy Resources18Distributed Generation Energy EfficiencyBeneficial ElectrificationDemand Response Distributed Energy StorageWhat are Distributed Energy Resources, or DERs?Devices or systems that provide value to all customers and help optimize the electric system 19History of Innovation and AdaptationLight & Power Utility FormedUnderground OrdinancePlatte River Power Authority Formed• Growth of Customers & A/C• Implementation of Energy ProgramsUndergrounding InfrastructureTime-of-Day Pricing & Connexion broadband• Electrification • Additional Renewable ElectricityAdvanced MeteringFirst Energy PolicyFuel Embargo No Natural Gas 20Challenges, Opportunities, Innovation2020More Wind& SolarEvolving RisksNewTechNew Business ModelsChanging Relationships with Customers and Platte River 21Challenges, Opportunities, InnovationCustomer DERsGrowing ClimateRisksEfficiency & ConservationComfort, Health& SafetyHistorically Under-Represented GroupsUpdated Financial ModelsSustainable &Scalable Local SolarElectrificationWholesale & RetailRate Alignment Challenges and Opportunities 22Challenges, Opportunities, InnovationSoftware & ControlsPhysical SystemPlanningPrograms & ServicesBroadband Infrastructure AlignmentTools for Innovation Changing RelationshipsPricing 23Financial Overview($50,000,000)$0$50,000,000$100,000,000$150,000,000$200,000,0002011 2013 2015 2017 2019 2021 2022 2024 2026 2028 2030Light & Power Fund Operating Income (2011-2031)OPERATING INCOMETotal Operating RevenueTotal Operating Expenses 24Capital Improvement Plan$0$5,000,000$10,000,000$15,000,000$20,000,000$25,000,0002022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032Light & Power Capital Improvement Plan(2022‐2032)StreetlightsSubstationsBuilding / FleetAnnexations / RelocationsTechnology / AMIDistribution InfrastructureNew Construction Ongoing Monthly BillsRecover costs to operate the utility, programs and distribution system to provide servicesRecoup expenses for ongoing maintenance & renewal of the distribution systemCollect for any associated wholesale costs25Rates & Fees‘One-Time’ Fees & ChargesRecover capacity costs to buy-in to the existing systemCollect for site-specific costsProvide funding for future growth-related capital investments 26Financially Affordable / Competitive Rates 27How It Happens 28How It Happens 29How It Happens 30How It Happens 31How It Happens 32How It Happens How It Happens33 34How It HappensAH37 Slide 34AH37 the picutre of link was probably meant to represent customer interaction, but replaced it with cogen.Aimee Housh, 9/20/2021 35How It Happens 36How It Happens 37How It Happens 38Are there any questions or feedback about the direction of Fort Collins Light & Power? Are there any questions or feedback about the direction of Fort Collins Light & Power? Undergrounding Power Lines For More Information:THANK YOU!fcgov.com/Light-Power