HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/23/2008 - DRAFT ENERGY POLICY DATE: September 23, 2008
STAFF: Brian Janonis WORK SESSION ITEM
Patty Bigner FORT COLLINS CITY COUNCIL
Steve Catanach
SUBJECT FOR DISCUSSION
Draft Energy Policy.
EXECUTIVE SUMMARY
The City of Fort Collins Electric Board, together with Utilities staff, has drafted the 2008 Energy
Policy for Council consideration. This policy is intended to replace the 2003 Policy.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. The proposed 2008 Energy Policy reflects substantial changes current policy. Are there
additional revisions to the proposed policy?
2. Staff plans to conduct public outreach prior to adoption of the Draft policy. What specific
information about community support for the concepts in the policy is needed for Council
consideration?
3. What additional information does Council need in order to consider adoption of the Draft
2008 Energy Policy?
BACKGROUND
In 2003, City Council adopted the Electric Energy Supply Policy, Resolution 2003-038,providing
direction and guidance in the areas of competitive rates, high system reliability, and the
environment—specifically related to Demand-Side Management (DSM) or energy efficiency and
renewable energy.
Following the adoption of the Policy, Council adopted an ordinance increasing rates 1% for
implementation of energy efficiency measures and 1%for renewable energy purchases.The Policy
directed staff to provide progress updates, since provided annually from 2004 to 2007.
Although this Policy integrated the three elements of rates,reliability and the environment,previous
Councils supported other related environmental programs that included energy efficiency, and
supported the development of the Medicine Bow Wind Farm in the late 1990s. Other programs
include:
September 23, 2008 Page 2
• In April 1997, the Council adopted Resolution 1997-051, reaffirming the need for
energy conservation in the operation of City facilities and City vehicles, and
promoting energy conservation for its customers,in order to reduce the consumption
of fossil fuels.
• In July 1998, the Council adopted Resolution 1998-103, authorizing an integrated
energy design assistance program to encourage the efficient use of energy.
• In November 1999,the Council adopted Resolution 1999-137,establishing a policy
to take cost-effective actions that benefit the community by reducing local
greenhouse gas emissions.
The City of Fort Collins Electric Board, together with Utilities staff, has drafted the 2008 Energy
Policy for Council consideration. This policy is intended to replace the 2003 Policy.
The Draft 2008 Energy Policy updates the concepts and language of the original policy, while
remaining true to the fundamentals of electric distribution system reliability and energy affordability
for the community. Some of the changes include:
• Updated metrics and calibration of the policy to align with industry best practices;
• Support for a shift in the language and framework to align with carbon reduction
goals (Climate Action Plan);
• Emphasis on the need to protect the reliability of our distribution system; and
• Addition of an economic component with the "affordability" concept rather than a
"lowest rates"target.
Next Steps
• Public Outreach: September—October.
• City Council consideration of the 2008 Energy Policy: Later this year,to be
determined.
• City Council consideration of Policy implementation strategies: January—February
2009.
ATTACHMENTS
1. Draft 2008 Energy Policy.
2. 2003 Electric Energy Supply Policy.
3. PowerPoint presentation.
ATTACHMENT
. Draft Energy Policy
September 2008
Background
The citizens of Fort Collins created the municipal electric utility in 1935. In 1973, Fort
Collins joined with Estes Park, Longmont and Loveland to create Platte River Power
Authority, a joint action agency charged with meeting the electric generation and
transmission needs of the four cities. These organizations have demonstrated
progressive long-term planning throughout their history. In 2003, City Council adopted
the Electric Energy Supply Policy which recognized the interrelated planning goals of
high reliability, low rates and minimizing environmental impacts.
This revised Electric Energy Policy reflects five years of experience implementing the
2003 policy, the evolving electric utility industry and the interests of Fort Collins citizens.
In May 2008, Fort Collins City Council adopted greenhouse gas emissions goals of 20%.
below 2005 levels by 2020 and 80% below 2005 levels by 2050.
The purpose of this policy is to provide strategic planning guidance for the Fort Collins
Utilities' Light & Power Service Unit and the Energy Services group. The policy
describes a mid-century vision and three goals, each with associated objectives and
• metrics.
2050 Vision
To serve the community with highly reliable, carbon neutral electric service, guided by
an ethic of sustainable, innovative and responsible management.
Goals
Goal #1 Provide highly reliable electric service
Highly reliable electric service is a core responsibility of the electric utility, defined by
reliability statistics, power quality and customers' perception of "up-time". Reliable
service is critical for the physical and economic welfare of the community. Long-term
planning, high standards and qualified staff responsible for the planning and
maintenance of the electric infrastructure are the primary drivers of high reliability.
Exemplary service from knowledgeable, responsive and courteous staff is a part of
customers' perception of Light & Power's reliability. Light and Power demonstrates the
value of skilled and qualified employees through long-term planning for hiring, retention
and succession. Continued financial health and adequate investment in Light and
Power supports the reliable electric service goal.
• Smart grid innovations are expected to have an increasing role in the electric system.
Smart grid is the integration of an electric transmission or distribution system, a
Page 1
communications network, software, and hardware to monitor, control and manage the
reliability and efficiency of the generation, distribution, storage and consumption of
energy.
Goal #1 Objectives and Metrics
• Demonstrate and communicate the high reliability of the Fort Collins electric
system by maintaining annual reliability metrics of:
o Average System Availability Index (ASAI) greater than 99.9886%
o Customer Average Interruption Index (CAIDI) less than 60 minutes
o System Average Interruption Frequency Index (SAIFI) less than 1.0
• Apply appropriate construction standards and material spec fications for long-
term reliability.
• Create an asset management plan by 2010 for the long-term integrity of the
electric utility infrastructure.
• Create a smart grid roadmap by the end of 2009, defining specific smart grid
objectives and implementation plans.
• Manage peak loads to reduce demands on the distribution system, optimize
infrastructure investment and reduce purchased power costs.
o Maintain energy efficiency and demand side management programs
targeting peak loads.
o Increase the power managed by loads management, smart grid and
distributed generation to at least 5% of 2005 system peak demand by
2015 and at least 10% by 2020. Develop a methodology for tracking load
management as a percentage of peak demand, considering utility
programs,.cu: tom?3r response and weather normalizativil
o Support customer efforts to reduce electric costs through managing peak
loads.
• Annually report on human resources benchmarks designed to sustain a skilled
and qualified Light & Power workforce.
• Coordinate with Platte River Power Authority in the design, operation and
maintenance of their electric transmission and generation system to minimize the
risk of system outages.
Goal #2 Support the community's carbon emissions goal of reducing the City's
carbon footprint 20% below 2005 levels by 2020 and 80% by 2050.
Fort Collins citizens place a high value on a healthy and sustainable environment. The
City of Fort Collins Utilities goal is to continuously move in the direction of sustainability,
reducing impact on ecological systems while improving the well-being of the community.
Energy use, water use and transportation are major components of the community
environmental footprint, and solutions which integrate the relationship between these
sectors will result in optimal long-term outcomes. All energy sources have
environmental impacts related to resource exploration, extraction, transportation,
emissions and land use. Carbon emissions related to the provision of electric energy,
Page 2
• including energy supply resources and operations, is a meaningful and pragmatic metric
for measuring the community environmental footprint.
Fort Collins Utilities are committed to first maximizing the benefits of efficiency and
conservation, moving toward clean and renewable energy sources, and adapting to the
opportunities brought by innovation and emerging technologies in the electric utility
industry.
Goal #2 Objectives and Metrics
• Develop a methodology for reporting carbon emissions and savings related to:
o Overall electricity consumption;
o Reductions in energy use from efficiency programs;
o Substitution of fossil fuel based electricity with renewable or clean
resources, and
o Increases in use of electricity for transportation.
• Continuously reduce energy use through verifiable energy efficiency programs,
independent of population growth and economic trends.
o Achieve annual energy efficiency and conservation program savings of at
least 1% of annual energy use (based on a three year average history).
• For renewable energy resource investments, balance the interrelated factors of
• carbon reduction cost-effectiveness, impact on power plant operations and local
economic benefits.
o Maintain a minimum fraction of renewable energy in compliance with State
of Colorado requirements. n coordination %with Plefte riiver Power
Authority,develop generation resources and the delivery of renewable
energy to meet minimum requirements.
o Offer voluntary renewable energy programs, fostering customer's
purchase of increased renewable energy and support for local renewable
energy projects.
o Increase the contribution of renewable energy to reach the 20% by 2020
carbon reduction goal, after accounting for the contributions of energy
efficiency, conservation, minimum renewable energy requirements and
voluntary renewable energy programs.
o Include dispatchable renewable resources as part of the portfolio to
maintain system stability and reliability.
• Promote sustainable practices in homes and businesses by supporting highly
energy efficient new and existing buildings.
• Participate in research, development and demonstration efforts to remain at the
forefront of emerging technologies and innovative solutions.
• Develop a plan for reporting and continuous improvement on the sustainability of
electric utility operations.
•
Page 3
Goal #3 Enhance local economic vitality
Fort Collins Utilities' Light and Power Service Unit supports local economic vitality with
highly reliable service, and a history of low and stable electric rates. Low cost electricity
and effective energy efficiency and conservation programs result in a lower community
energy bill, supporting economic activity in other arenas.
Fort Collins Utilities' Light and Power Service Unit business activities also support the
local economy as a direct and indirect employer, as a contributor to the City's general
fund, by leveraging customer investment for energy efficiency, acquiring funding for
research and demonstration projects and as a participant in clean energy
collaborations.
Goal #3 Objectives and Metrics
• Maintain the financial health of Fort Collins Utilities' Light and Power Service Unit
to support the vision of the Electric Energy Policy.
o Continue to meet the Utilities Light and Power fund financial policies.
o Maintain sufficient revenues through biennial budget planning for on-going
operation and maintenance of the electric system and meet the projected
requirements of the asset management plan.
• Maintain regionally competitive rates which promote energy efficiency and
conservation,
• Maintain programs and services that help customers maintain affordable energy
bills. Develop a metric reflecting the affordability of electric-bills for Fort Collins
cu< ;comers
• Promote the benefits of clean energy solutions to existing and potential
businesses.
Reporting and Policy Update
The Utilities Executive Director will provide the City Manager, Electric Board and City
Council with an annual status report on the goals and objectives included in the Electric
Energy Policy. The Electric Energy Policy will be reviewed and revised in the fifth year
after adoption.
Page 4
ATTACHMENT 2
City of Fort Collins
Electric Energy Supply Policy
March 25 , 2003
Introduction
Motivated by their concern for the welfare of the community, the citizens of Fort Collins
created the electric utility in 1935 . During the years that followed , the electric system grew both
in size and sophistication . In 1973 , Fort Collins joined with Estes Park , Longmont and Loveland
to create the Platte River Power Authority ( PRPA) , a joint action agency charged with meeting
the electric generation and transmission needs of the four cities .
The City now has a state of the art electric system that provides citizens with highly
reliable service at an affordable and competitive price . However, getting to this point did not
happen without a lot of effort and thoughtful guidance . The future will be no different . There will
be many challenges to overcome if the city is to continue to provide its citizens with a high level
of service . The most significant of these challenges will be addressing both important
environmental issues and increasing demand , while maintaining high system reliability and
competitive pricing . The purpose of this policy is to provide strategic objectives regarding
system reliability , rates and the environment to guide the electric utility into the future as it
continues to provide the citizens of Fort Collins with reliable and competitively priced electric
service , in partnership with PRPA.
System Reliability
System reliability is the core of providing electric service . It is critical for the welfare of
the community . It should not be compromised . The Utilities must continue to provide
businesses and residents with highly reliable electric service consistent with established
reliability goals .
Objectives for the Future
1 . Continue to design , build and maintain the electric system utilizing the high
standards that have been developed .
2 . Maintain an emphasis on system safety for the benefit of employees and citizens .
3 . Complete the electric system undergrounding program by the end of 2006 ( revised
from 2004 ) .
4 . Reduce peak electric use in order to minimize overloading of the electric system .
5 . Encourage Platte River Power Authority to design , operate and maintain their electric
transmission and generation system to minimize the risk of system outages .
6 . Encourage Platte River Power Authority to maintain a diverse source of electric
generation capacity .
7 . Investigate the merits of distributed generation as a method of reducing system peak
demands .
Electric Rates
For many years the citizens of Fort Collins have benefited from low electric rates .
During the past 18 years , there have been two electric rate increases and two electric rate
decreases . Electric rates today are only 0 . 2 percent more than they were in 1983 , while the
consumer price index has increased 77 . 8 % . The City's residential electric rates are lower than
88 % of the 51 Colorado utilities surveyed by the Colorado Association of Municipal Utilities .
In order for the City to continue being a viable provider of electric service , it will be
essential to maintain competitive rates in the future .
Objectives for the Future
1 . Continue to design and implement electric rates that allocate costs between
customer classifications in an equitable manner.
2 . Design and implement electric rates that encourage conservation (e . g . market based
incentives , block pricing ) and demand side management .
3 . Maintain rates that are regionally competitive and are below Xcel Energy .
4 . Maintain long-term rate stability .
5 . Establish alternative cost based rate structures that reflect the community's interest
in and benefit from renewable energy (green pricing , net metering , system benefit
charges ) .
6 . Increase productivity and efficiency throughout the Utilities .
7 . Work with Platte River Power Authority to delay or mitigate the expected rate impact
associated with the construction of new base load generation facilities .
8 . Work with Platte River Power Authority to develop a process whereby the avoided
generation capacity costs , associated with demand side management ( DSM )
programs developed by the City, can be passed along to the City .
The Environment
Fort Collins 2000 Greenhouse Gas Audit
There is a growing awareness of 2.04 million tons CO2
and concern about global climate change solid
and the harmful contributing effects of Natural
greenhouse gases . In 1999 , the Fort Gas Waste
°
Collins CityCouncil adopted a local action 20% °
p Electricity
plan to reduce greenhouse gas emissions . 44%
In the City's 2000 Climate Protection Status
Report , the use of electricity, generated *ii i
from facilities fueled with either coal or Transport
natural gas , was identified as the largest 35%
contributor of carbon dioxide (CO2 ) to the
environment . Although there are new and
evolving technologies to reduce fossil fuel pollutants such as sulfur dioxide and nitrogen oxides
( NOX ) emissions , there are presently no feasible methods of reducing CO2 emissions at the
generating facility . However, CO2 emissions could be reduced by decreasing the consumption
of electricity generated with CO2 producing fuels and/or generating electricity with energy
sources that do not produce CO2 , such as wind , solar, and water. Decreasing consumption and
using these energy sources would also reduce the negative environmental impacts (e . g . habitat
destruction , air and water pollution ) associated with fossil fuel exploration , mining and
transportation .
Objectives for the Future
1 . Reduce per capita electric consumption 10 % , from the baseline of 2002 , by the year
2012 . The10 % per capita consumption reduction target will reduce overall electric
2
consumption approximately 17% by 2012 (see the following graph ) . During this time
period (2002-2012 ) , the overall reduction in electric consumption amounts to
approximately 1 . 7 billion kilowatt- hours of electricity and the avoided production of
over 1 . 8 million tons of CO2 .
Energy Consumption Policy Target, 10% Per Capita Reduction
13 , 000
11 , 000
U 9 , 000
w " 10% Decrease
U CL
7 , 000 in 2012
E
a N Historical Data Projected Data
c 5 , 000
� o Base Case
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Q 3 000 — Policy
Target
1 , 000
OD O N � (.0 CO O N � f0 00 O (N �
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M M M O M O O O O O O O O O
N N N N N N N N
Year
2 . Reduce per capita peak day electric demand 15% , from the baseline of 2002 , by the
year 2012 . The 15 % per capita demand reduction target will reduce the peak
demand by approximately 80 MW by 2012 (see the following graph ) . This projected
reduction in peak day demand is approximately equal to the output of one
combustion turbine , which presently costs about $25 million .
3
Peak Demand Policy Target, 15% Per Capita Reduction
2 . 5
2 . 0
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0
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R
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Year
3 . Develop and implement effective demand side management ( DSM ) programs .
4 . Develop a strategic plan by July 1 , 2003 for reaching the consumption and demand
reduction targets outlined in this policy . The approaches to be evaluated will include ,
without limitation , a systems benefit charge , efficiency programs , incentive programs ,
educational programs , revolving loan programs and innovative rate structures .
5 . Increase community awareness and understanding of DSM and renewable energy
programs .
6 . Encourage Platte River Power Authority to continue reducing emissions from fossil
fuels and to avoid the use of coal in any new generation facilities ( Rawhide Unit 2 or
other potential generation facilities that PRPA may pursue) .
7 . Work with Platte River Power Authority to continue to diversify the portfolio of energy
sources that serve the City .
8 . Work with Platte River Power Authority to increase the City's percentage of
renewable energy (in addition to the existing large hydro from WAPA) to 2 % by the
end of 2004 and to 15 % by the year 2017 .
9 . Develop and implement policies and programs that support :
• the development and use of renewable resources ,
• sustainable practices ,
• the City's effort to reduce global warming , and
• the design and construction of energy efficient buildings
10 . Develop and implement policies that require the use of energy efficient design
principles in the renovation and construction of all City facilities .
11 . Whenever possible , integrate efforts related to energy efficiency , renewable
resources , green buildings (energy code ) , sustainable practices and education .
Annual Report
On an annual basis , the City Manager will provide the City Council and the Electric
Board with a status report on the objectives included in the Electric Energy Supply Policy .
4
DRAFT 2008 ENERGY POLICY
CITY COUNCIL WORK SESSION
SEPTEMBER 23 , 2008
Patty Bigner
Utilities Customer and Employee
Relations Manager
[tins
QUESTIONS FOR CITY COUNCIL
• Are additional revisions to the proposed policy
needed ?
• What public input is needed for Council
consideration ?
• What additional information is needed for Council
consideration for adoption of the Draft 2008 Energy
Policy?
F� [tins
Tonight' s Discussion Continuing from
April , August and September
Work Sessions
• April discussion of renewable energy purchases with
Platte River Power Authority
• August Climate Action Plan discussion included staff
and consultant review of Climate Task Force
recommendations related to Energy Policy
implementation
• September presentation on Energy Efficiency and
Renewable Energy Certificates ( RECS )
• Tonight' s discussion on concepts in new draft policy
F�t
Development of Draft 2008 Energy Policy
• Process included Electric Board sub-committee and
Utilities staff
• Discussion of policy concepts linked to Climate Task
Force process through Electric Board and staff
participation
• Initial public review included Electric Board , Air
Quality Board , Natural Resources Advisory Board —
with favorable comments
F� [tins
Tonight's Review of Draft 2008 Energy
Policy
• 2003 Electric Energy Supply Policy
• Summary of changes within 2008 Draft policy
• Brief update on progress with current policy
implementation
• Discussion of next steps
F�t
Highlights of Major Changes
• Updated metrics and calibration of the policy to align
with industry best practices
• Support for a shift in the language and framework to
align with carbon reduction goals ( Climate Action
Plan )
• Emphasis on the need to protect the reliability of our
distribution system
• Addition of an economic component with the
"affordability" concept rather than a " lowest rates"
target
F� [ins
Work Session Discussion . Key Points
• Moving from an energy reduction to carbon reduction
framework
• Emphasis on energy efficiency , reliability and
affordability
• Focus on local investments — both energy efficiency
and renewable energy — when cost effective
• Focus on meeting the Colorado Renewable Portfolio
Standard ( RPS ) in the short term , rather than a Fort
Collins RPS
Ilins
Work Session Discussion — Key Points
• Emphasis on achieving and maintaining best- practice
level leadership
• Coordinated development of low income energy
efficiency projects
• Regional collaboration with Platte River members
and others to optimize energy use reduction across
electric and gas utilities
• Long -term and short term programs — improving both
existing and new buildings
• Renewed focus on community education and
participation Frt�1
Next Steps to Consider - Collaboration
Since 2004, Fort Collins has rapidly increased savings from
energy efficiency programs.
• 2008 results put Fort Collins at the utility best practices level ,
with energy efficiency program savings reaching approximately
1 % of retail electricity sales
• Platte River is an critical partner for energy efficiency programs
(funding , planning , implementation )
• Other partnerships offer additional benefits — natural gas
savings , emphasis on low income sector, greater program
participation : ex. Clean Energy Cluster, FortZED , Department of
Local Affairs ( DOLA) , Governor's Energy Office (GEO)
Next Steps to Consider - Funding
Next year's electricity use (2009) will be nearly 3 %
less than it would have been without savings
from energy efficiency programs
• Savings equivalent to approximately 40 , 000
megawatt- hours
• Purchased power cost savings will be approximately
$ 1 . 6M
• Savings are achieved with existing staff and funding
levels , but not expected to be sustainable without
additional staff and program funding
F� [tins
Next Steps to Consider — Overcoming
Barriers to Community Participation
• Increase customer awareness of energy efficiency
benefits through education and program incentives
• Assist in development of community capacity —
especially training needed to increase the ability to
deliver energy efficiency services
[tins
Next Steps to Consider — More
• New technologies such as Advanced Meter
Infrastructure (AMI ) offer many benefits for reliability ,
smart grid integration and energy efficiency
• Continued opportunities to improve Energy Code in
collaboration with Neighborhood and Building
Services
• Federal and State Legislation will continue to involve
local efforts
• Evolving customer-sponsored programs and projects
will offer more opportunities for City collaboration
F� [ins
We look forward to answering your
questions on September 23 , 2008
• John Phelan from our Energy Services staff will
provide additional background on the Draft 2008
Energy Policy
Fit, [tins
Draft
2008 Energy Policy
City Council
September 23 , 2008
City Of
Fort Coltins
Agenda
• Compare current and proposed
policy goals , objectives and
metrics
• Provide 2007 and 2008
year-to -date energy policy update
�t11
Energy Policy History
• 2003 : policy adopted March ,
• Strategic Plan for Demand Side Management ( DSM ) ,
rate ordinance authorizing 2 % increase ( December)
• 2004 through 2008 : Energy efficiency and renewable
energy funding , new programs and services , annual
reporting
• 2007 and 2008 : Electric Board and Utilities staff
develop new policy
• 2007 and 2008 : Coordination of Climate Task Force
and Energy Policy efforts
Fit,f
Energy Policy : Big Picture
1 1 ' .
Fort Collins , 1992 to 2007
111 ' . 44% morepeople
% more energy
co
4 1 1 '
IL
1 1 ' . +�
1992 1994 1996 1998 2000 2002 20062004 11 '
1 1 ' .
PopulationYear
Energy Policy Review
Electric Energy Supply PolicyElectric Board 2007 work plan
2007 Annual Update 4+ years of implementation
• Kickoff meeting , November
2007 , five formal meetings ,
numerous informal
• Current trends overview
• Develop vision , goals , objectives
� �' , and metrics
. ;�:v� Close collaboration between staff
and E-board sub-committee
` Alignment with Climate Task
.._. �,. Force
• Draft 2008 Energy Policy
16
J
Energy Policy Overview
Reliability Climate Economic Vitality `,
. Industry metrics Efficiency Financial health
. Asset management Conservation Competitive rates
. Smart grid Smart grid Affordable bills
Peak demand Rates Clean energy economy
Renewables
FL tf�
Comparing Current and Proposed Policies
• For the 2003 policy (current ) and revised policy ( proposed )
— Vision
— Goals
— Objectives
• Reliability
• Environment
• Economics
— Metrics
• What does a carbon based energy policy look like?
• Includes 2007 and 2008 year to date results
[tins
Energy Policy : Current and Proposed
Current Proposed
Vision Vision
• No formal vision articulated 2050 Vision
—"to guide the electric utility into the future" . To serve the community with
highly reliable , carbon neutral
electric service , guided by an
ethic of sustainable , innovative
and responsible management .
F� [tins
Energy Policy : Current and Proposed
Current Proposed
Goals Goals
• More "themes" than "goals" • Provide highly reliable electric
—System Reliability service ;
— Electric Rates • Support the community' s
carbon emissions goal of
—The Environment reducing the City' s carbon
• Energy efficiency and footprint 20 % below 2005 levels
demand side by 2020 and 80 % by 2050 , and
management • Enhance local economic
• Renewables vitality .
Fit,f
Energy Policy : Current and Proposed
Current Proposed
Objectives - Reliability Objectives = Reliability
• Continue to design , build and • Reliability statistical metrics
maintain the electric system • Construction standards and
utilizing the high standards that material specifications
have been developed • Asset management plan
• Complete the electric system . Smart grid roadmap
undergrounding program
• Reduce peak electric use • Reduce peak demands
• Encourage . . . — Efficiency programs target peak
• Encourage . . . — Load management targets
• Investigate . . . • 5 % of 2005 peak by 2015
• 10% of 2005 peak by 2020
• Skilled and qualified workforce
* Coordinate with PRPA
F�t
Electric Energy Policy : Reliability
• 2007 Reliability Highlights
— Electric system reliability was 99 . 9965% (goal 99 . 9886% ) ;
— The average outage duration was 26 minutes (goal <60 min . ) , and
— On average , individual customers experienced 0 . 7 interruptions .
Average System Availability Index (ASAI)
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Energy Policy : Current and Proposed
12
Current Proposed
Objectives - The Environment Objectives - Reduce Footprint
• Reduce per capita electric • References new City carbon
consumption 10% , from the baseline emissions goal
of 2002 , by the year 2012 • Develop carbon methodology
• Reduce per capita peak day electric • Efficiency programs reach 1 . 0% of
demand 15% , from the baseline of annual retail energy sales
2002 , by the year 2012 • Renewables to reach carbon goal ,
• Develop and implement DSM after effects of resource mix,
• Increase community awareness efficiency, rates, RPS and voluntary
• Work with PRPA . . . renewables
• Increase renewables to 2% in 2004 • Green building
and 15% by 2017 • Research & demonstration
• City policies and programs . . . • Sustainable Utility operations
Energy Efficiency Highlights
• 8 , 200 megawatt-hours annual energy savings from 2007
programs , at a cost of 1 . 3 cents per kilowatt- hour
• 11 , 500 megawatt-hours annual energy savings from 2008
year-to-date programs
• Electric energy savings in 2009 will be approximately 40 , 000
megawatt- hours (2002 through 2008 programs )
• Electric peak demand savings , our conservation power plant ,
in 2009 will be approximately 7 . 5 megawatts
(2002 through 2008 programs )
• 2008 year-to-date electric consumption is 1 % lower than 2007
• 2008 summer peak electric demand was 4 . 6 % lower than 2007
Fit,f
Fort Collins Demand Side
Energy Efficiency Results
Management,Annual MWh Saved
, , .
, , , .
: 111
. 111
----- N
. , „
El LighterUP Program
TurbineElectric Efficiency • .
94 Integrated Design Assistance Program
Refrigerator and Freezer Recycling Program
Cooling Rebate Program
E:1 Clothes Washer Rebate Program
14 ■ Residential Lighting Program
Fort Collins Demand Side Management,
Annual kW Saved (Summer Peak)
3000
2500
3
a 2000
c
CO
1500
E
E
0
1000
c
C
Q
500
0
2002 2003 2004 2005 2006 2007 2008
■ LightenUP Program
Z CSU Steam Turbine
B Electric Efficiency Program
® Integrated Design Assistance Program
IF Refrigerator and Freezer Recycling Program
m Cooling Rebate Program
❑ Clothes Washer Rebate Program
❑ Residential Lighting Program
Fort Collins Utilities Efficiency Energy Savings and Percent of Retail
Sales
15,000 1 .00%
O Industrial
0 Commercial
rn 12,500 Residential
t EE energy savings - % of retail sales m
a 0.75% N
t
10,000 v
o:
0 H
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t C a
> 7,500 0.50% w
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s
E
5,000
m c
T O
025% u
M 2,500 w
0 p 40.00%
2002 2003 2004 2005 2006 2007 2008
Year
8
Year Utility Electric EE EE EE Energy
Revenue Expenditures Expenditures Savings - %
as % of of Retail
Revenue Sales
2002 $67 ; 162 ,688 $ 113 , 515 0 .2% 0 . 1 %
2003 $68 , 960 ,447 $ 175, 047 0 . 3% 0 . 1 %
2004 $72 , 959 , 272 $448, 885 0 . 6% 0 . 3%
2005 $78 , 875 ,097 $ 1 , 014 , 755 1 . 3% 0 . 5%
2006 $80 , 2347143 $ 1 , 139,414 1 .4% 0 .4%
2007 $81 , 883 ,286 $ 1 ,622 ,459 2 . 0% 0 . 5%
2008" $81 , 058 ,532 $2 , 312 , 918 2 .9% 1 . 0%
* estimated through the end of the year
Fort Collins Demand Side Management,
Cumulative Annual MWh Saved
45,000
40,000
r
35,000
m
m
30,000
y
T
T 25,000
d
C
W
20,000
C
C
m 15,000
E 10,000
0
U
5,000
0
2002 2003 2004 2005 2006 2007 2008
Year
9
Energy Efficiency Results
Management,Fort Collins Demand Side
Cumulative Annual kW Saved
: . , ,
Conservation Power Plant »»
7.5 megawatts
. � � �
� � �
� � �
� �
100 0 -
\ �\
Renewable Energy Results
• 2007 Renewable Energy Reporting
— 93 , 000 megawatt-hours , total renewable energy purchased electricity
— 57 , 660 MWh rate based renewables
• 62 % of total renewables purchased electricity
is
19 Year
• 3 . 9 % renewable electricity for all customers
— 35 , 340 MWh voluntary program renewables
• 38% of total renewables purchased energy
• 3 . 9 % up to 100% renewable electricity for voluntary green energy
customers (depending on subscription level )
— Informational reporting of carbon benefits based on marginal regional
emissions rate .
— Proposed Energy Policy calls for carbon methodology to be
developed , including for indirect emissions benefits from renewable
energy sources . Fit
10
Renewable Energy Results
. Renewable
100,000
90000
80,000 I
70,000
60,000 I
111
1 111
30,000 ,
10,00
I I/ #z
111 2001 200211 114 2005 2006 2007
iVoluntary MWh 0 Rate based
21
Colorado Renewable Portfolio Standard
22
for Fort Collins
• HB 07- 1281 establishes the standard for
electricity generation from eligible energy sources
for municipal utilities serving over 40 , 000
customers at:
— 1 percent for 2008 through 2010 ;
— 3 percent for 2011 through 2014 ;
— 6 percent for 2015 through 2019 ;
— 10 percent for 2020 and after.
F�tf
Energy Policy : Current and Proposed
Current Proposed
Objectives — Rates Objectives — Economic Vitality
• Continue to design and implement • Maintain the financial health of
equitable rates Fort Collins Utilities
•Design and implement rates that • Maintain regionally competitive
encourage conservation rates that promote energy efficiency
• Maintain rates that are regionally and conservation
competitive and are below Xcel Energy • Maintain programs and services
• Maintain long-term rate stability that help customers maintain
• Establish alternative cost based rate affordable energy bills (new metric)
structures for renewable energy • Promote the benefits of clean
• Increase productivity and efficiency energy solutions to existing and
throughout the Utilities. potential businesses.
• Work with PRPA . . .
FO�rt COI�'tns
Electric Energy Policy : Rates
• 2007 Rates Highlights
— No electric rate increases in 2007 , and
Table 3.11 : 2007 Electric Rates Comparison
PercentageRate Class Ranking of Fort Collins Fort Collins Utilities
ResidentialUtilities lower than Xcel Energy
• 1 ' 38% lower
CommercialSmall • - st 16% 38% lower
Large Commercial Lowest 8% 22% lower
Industrial Lowest 4% 25% lower
based on CAMU report, January 2007
CAMIJ Residential Electric Rate Comparison
January 2007 -- Cost for 700 kWh
00
8024
00
1
[I Municipal M REA 0 .
Electric Energy Policy : Rates
• 2008 residential rates compared
( Colorado Association of Municipal Utilities )
te Survey
July 1 , ,0 1 ,CAMU Residential kWh per month
$90 IOU
:,
,
,
,
,
0 ---
25
Energy Policy Metrics
Current Proposed
Metrics Metrics
• Reliability » continue to . . . ' Reliability
• Utility statistics
• Environment • Load management Is of peak
— Per capita energy • Workforce - - - - - - - -
It of energy
• Rates • Economic vitality
26
13
— Lower than Xcel • Utility financial health
• Rates benchmark
• Affordability
FL tf�
Carbon Based • Policy
What does the carbon goal look like?
2005 • . 1 , 250 , 000 tons
1 % reduction > > 2020 • • . 1 , 000 , 000 tons
- - • annual reductionsof 1 111 in 2020
. With projected growth , - - • 650 , 000 1 1
City of
IM&Fort Collins
000000
27
Fort Collins Utilities, Carbon Forecast (hypothetical)
1 ,800,000
2020 BAU
1 ,600,000 1 ,6507000 tons
❑ Energy
efficiency
1 ,400,000 ----_- reductions
■ Energy
c11200,000 conservation
reductions
w
01 ,001) 000 2005 ❑ Renewable
Baseline energy
y 800,000 1 ,250,000 reductions
c tons 2020 Goal
ao 1 ,000.000 ■ Additional
600,000 tons reductions to
U meet target
400,000 ❑ Annual
emissions
200,000
0
Oh 06 O'� 0^ ry0
�O �O (O rp (f, �O �O �O ry0 ry0 rp ry0 rp ry0
Year
14