HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/02/2008 - RESOLUTION 2008-123 APPROVING AND ADOPTING AN UPDA ITEM NUMBER: 33
AGENDA ITEM SUMMARY DATE: December 2, 2008
FORT COLLINS CITY COUNCIL STAFF: Brian Janonis
Patty Bigner
Steve Catanach
SUBJECT
Resolution 2008-123 Approving and Adopting an Updated Energy Policy,
RECOMMENDATION
Staff recommends adoption of the Resolution.
EXECUTIVE SUMMARY
This Resolution adopts the 2008 Energy Policy,replacing the 2003 Electric Energy Supply Policy.
A draft of the Energy Policy was presented to City Council at the September 23,2008 work session
for discussion and comment. Council's comments have been incorporated and public outreach has
been completed.
BACKGROUND
In 2003,City Council adopted the Electric Energy Supply Policy by 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.
The Electric Board, together with Utilities staff, has drafted the 2008 Energy Policy for Council's
consideration. This policy is intended to replace the 2003 Policy.
The Draft 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 the City's carbon reduction
goals (Climate Action Plan);
• Emphasis on the need to protect the reliability of the distribution system;
• Focus on the importance of the relationship with Platte River Power Authority; and
December 2, 2008 -2- Item No. 33
• Addition of an economic component with the"affordability" concept rather than a"lowest
rates" target.
The 2008 draft policy was presented to City Council for discussion at a work session on September
23, 2008. Council provided feedback for staff,including changes to wording and the addition of a
goal related to Platte River Power Authority,the City's electricity provider.
Since September,staff have incorporated wording changes into the policy document and conducted
public outreach. In addition to a public open house on November 17,the Policy has been presented
to several community boards. A presentation was provided for commercial customers on November
1 Oth. Comments have been compiled and attached.
The Air Quality Advisory Board met on November 17, 2008. Its recommendation will be sent
directly to City Council. The motion adopted by the Board on November 17 is as follows:
"The Air Quality Advisory Board recommends that the City Council adopt the
proposed energy policy revision. We not that steps taken in the energy policy are in
alignment with the Climate Action Plan, which we also support. "
In summary, the proposed 2008 Energy Policy updates and replaces the policy adopted by City
Council in 2003. It provides strategic planning guidance in significant areas related to the provision
of electric service to the City of Fort Collins and aligns development of energy efficiency and
conservation programs with the City's Climate Goals. The 2008 Policy sets the targets for
implementation planning and directs annual reporting mechanisms.
ATTACHMENTS
1. Summary of September 23, 2008 City Council Work Session.
2. Summary of Public Comment.
3. Electric Board recommendation.
4. Natural Resources Advisory Board recommendation.
5. December 2, 2008 PowerPoint presentation.
Utilities
CityO f electric stormwater wastewater water
Fort Collins Fort Wood Street
PO Box 580
Fort Collins,CO 80622
970.221.6700
619—fax
970.224,6003—Too
utilities@fcgov.com
fcgov.com/utilities
ATTACHMENT 1
MEMORANDUM
TO: Mayor Hutchinson and City Councilmembers
THRU: Darin Atteberry, City Manager
Brian Janonis, Utilities Executive Director
FROM: Patty Bigner, Utilities Customer and Employee Relations Manager
CC: Steve Catanach, Light and Power Operations Manager
John Phelan, Energy Services Engineer
DATE: September 24, 2008
SUBJECT: September 23, 2008 Work Session Summary—Draft 2008 Energy Policy
On September 23, 2008, City Council held a work session for discussion and to provide direction
to staff on the Draft 2008 Energy Policy. Specific questions asked of Council:
1. The proposed 2008 Energy Policy reflects substantial changes to the 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?
Key Discussion Points
Brian Janonis provided context for the discussion, summarizing the importance of the draft
policy in providing direction to staff and a vision for provision of electric services to the
community. The Draft 2008 Energy Policy is intended to replace the 2003 Electric Energy
Supply Policy. He explained the adoption of the Policy would be followed by the development of
implementation plans, including rate impacts and funding strategies. The adoption of the Draft
2008 Energy Policy also supports the development of the City's Climate Action Plan, since
City of
rt,..i� ns
energy efficiency, conservation and renewable energy contribute to reaching carbon reduction
goals for the year 2020 policy goals.
Council supported the major shifts outlined in the Policy, including emphasis on affordability
rather than lowest cost, and the change to a carbon accounting framework for reporting progress
in reducing environmental impacts with energy efficiency programs and renewable energy
purchases. Council also emphasized the importance of the reliability and efficiency of our
electric system and acknowledged the "world-class" reliability metrics.
Council supported the inclusion of an additional goal related to the relationship with Platte River
Power Authority, in order to highlight the importance of Platte River to the City. Other areas of
agreement:
Annual reporting of progress toward meeting identified goals is important in maintaining
transparency and accountability in the future, and pointed out it is important for citizens to
understand Utilities programs are supported by utility rates rather than sales taxes.
Several suggestions were made for wording changes and additions.
In general, Council expressed support for public outreach prior to considering adoption of the
Policy and directed staff to begin preparing implementation for their review early next year.
Next Steps
October- November: Conduct public outreach and compile comments
November—December: City Council consideration of a Resolution adopting the Draft 2008
Energy Policy
November—January: Development of implementation strategies and programs
Early 2009: Presentation of strategies; Rate ordinance to fund programs
Attachment 2
2008 Draft Energy Policy Plan
Public Comments - November 17, 2008:
• 1 want a policy that rewards conservation and efficiency and discourages waste and
wasteful behavior. A tiered rate structure might be the way to do this.
• Use additional funds generated to subsidize conservation programs for those who claim
economic hardships
• Interest in local GHG reductions- 1st before buying renewable energy credits (REC's)
outside the community. For example; invest in energy efficiency improvements in homes
and businesses in Fort Collins, leveraging Fort Collins dollars in Fort Collins Businesses.
Purchase wind turbines at PRPA sites before buying GHE offsets elsewhere. Invest in
Natural area restoration and reap carbon sequestration credits using Fort Collins
businesses and contractors before investing in carbon sequestration.
• Building codes structure markets without warping them like tax credits and rebates (tax&
spend)(too bureaucratic for most; too chargeable for investment.
• Building code should require at least: day lighting to reduce electric consumption for
lighting; passive solar building orientation, so that it could be retrofitted; solar water
heating; more billboard advertising for home energy improvements-energy efficient
mortgages to insulate(example); How about a home energy library where I could check
out: 1)an infrared scan gum (GPS-chipped of course)2)a blower door 3)an EZ kilowatt
meter(excel customers) 4)a solar tracker to see my solar potential and maybe buy
cheap weather stripping.
• Suggestion for existing hot water solar panels: (build about 1978)We need help for some
leaking problems moving to Fort Collins 1992, after looking for a long time to find solar,
since we have 300 sunny days in Fort Collins we thought its the sensible thing around
here, so we found it in an older home, not all ideal otherwise, but solar panels and a big
window"solar room"down below. Since we are seniors(and we are having financial
problems right now)we can't afford to pay for the leaking problems, so what about
helping and not only for new homes. Like to mention we recycle all, compost, conserve
water, etc. Since living here! Thank you for considering green acting citizens.
• Thanks for the good informative open house. It'd be great if you could do mini-open
houses educational booths @Wal-Mart or Super Target or where folk's average go.
Policy Comments: 1) Invest in local renewable energy production rather than out of
town/state RE certifications-local investments help local economy. 2) Make a deal with
investors for some sort of demonstration project to help reduce costs. 3) Please do
better marketing of rebate &Green Power Programs to get more takers. 4) Focus more
attention on residential energy conservation retrofits. New construct will cover fewer
houses than are already here.
• Add emphasis regarding tax deductible aspect of the Colorado Carbon Fund
contributions. My expectation is that CO2 needs to be cut much more aggressively
before 2020. Hence, what contingency plans to cut fossil fuel use?
• Please lobby energy supplies&state legislature to increase renewable energy sources,
totally eliminate coal-fired generation &encourage dispersed energy generation.
• Thank you for the public open house for the presentation of the 2008 Energy Policy. My
comments include: 'Catastrophic failure backup planning- Goal 1 or 4 should include
verbiage and measure for developing a backup plan and system for a catastrophic failure
to the supply grid to the city supply.
Page 1 of 5
Attachment 2
Public Comments Continued - November 17, 2008:
What happens if PRPA experiences some sort of supply problem?
Need to think about how we city folk deal the greater city wide outages. 'Remove carbon
foot print emphasis and refer to supporting the clean air imitative dept. For carbon
footprint reduction -It is very confusing which department has the carbon footprint
objective and responsibility and when we get there, who gets the credit? Make goal 2
read something like: Lead the way in efficient use of electric resources while supporting
the CAI in carbon foot print objectives. Add measures and metrics in building efficiency
improvements, kw/sq ft. Add objective to have city buildings be the model for new and
existing building efficiency. Make special mention of the Fort ZED effort and supporting
those objectives. 'Affordability emphasis is perfect method to create a "savings" base
utility rate as opposed to"consumptive"based. This will create the proper mindset for a
better future. You sort of do this now in demand rates and Hot shot programs. But there
needs to be an emphasis on being "savers"of electricity as opposed to"consumers".
Conservation will have a far greater impact on our future than any renewable
development. And conservation will magnify the impact of the few percent of renewable
in the portfolio. So Goal 3 should include getting x customers on savings programs,
developing a rate system bases on usage/sq ft. or efficiency....the higher the efficiency
the lower the rate. Use x% of the rate to get other customers to higher efficiency. Make
it a rule that new construction be on savings programs or meet efficiency stds. Create
"savers rates"- If you the customer is on this program and that program and use less
than y kw/sq ft.,then your rate is.....Congrats! You are a Silver Saver Customers!l! Hope
this helps. Give me a call if you would like my help here. As you can read, efficient
energy consumption is my passion.
• 1 was unable to attend Monday's energy policy open house, so I am providing comments
now. I am providing comments now. I am in full agreement with the energy policy and
have some suggestions for implementation: Offer a free consultation for homeowners to
help them understand how to reduce electricity consumption. I did this myself after
attending a environmental program series meeting and borrowing a kill-a-watt meter. We
cut consumption by 50%with only minor lifestyle changes. Eliminate street lighting after
10 pm except at major intersections. Most people I know don't like it and Fort Collins is
not a high crime area,so its not needed. Or can we use technology to intelligently turn
off lights when the traffic patterns and police statistics show it's not needed? Raise
prices! I pay less for electricity for a single family home ($25/month)than for Internet or
phone. Prices haven't gone up significantly for at least 20 years; I consider electricity
"almost free". Use additional revenues to invest in renewable energy and conservation.
These are the major points, but a couple of minor points need to be addressed:
Aggressively enforce the noise ordinance, including barking dogs(these are currently
enforced only after a complaint is filed, unlike weed, trash, etc.) We are currently
considering installing air conditioning because we can't stand the noise in the summer. I
know others that have AC just because they need to close windows to eliminated noise.
Quiet neighborhoods encourage open windows! Shut off electric service when bills go
unpaid. Renters learn that they can consume all they want and the service will not be
shut off as long as they pay something. We had one tenant consuming $400/month-this
is not conservation! Thanks for all the great work-keep it up!
Rebates Comments:
• Thanks for putting on the expo! I hope the city of Fort Collins does implement a rebate
program regarding replacing regular toilets with low water use toilets. It would also be
nice to have some sort of rewards regarding energy-efficient water heaters.
Program Request:
• Move rebates for green home improvements. Free energy audits to help people
recognize energy most in their homes. Larger loan programs for green improvements.
Page 2 of 5
Attachment 2
Program Request Continued:
• Good Information: I like the focus on conservation, renew ability&efficiency. I would like
to see Fort Collins continue to be a leader in the new energy economy. I was surprised
not to see anything about Fort Zed.
• Would have been nice to have more information on worms and composting.
Questions:
• 1 would like to know if my surge protections are older than 10 years. Will we replace it to
renew the warranty? How about lawn mower rebates too.
• Carbon footprint reduction:20% below 2005 levels by 2020-Is this on a per Capita
basis? What is the projected growth (population)of Fort Collins by 2020? By 2050? If
the 44% growth from 1992 to 2007 is sustained Fort Collins will approach 200,000, by
2025. There is a lack of connection with CSU's "Green"initiatives. Fort Collins should
take advantage.
• Are there grants available for solar panels to be installed on apartment compressors?
Other Comments:
• Shouldn'tthis read: "Electric Energy Policy?" (Many people heat by gas, so the big % of
home energy use is not addressed).
• Would have been nice to see plans or schedule of replacing old style electric service
posts in alleys/back yards to new service distribution systems located on street.
Page 3 of 5
Attachment 2
Comments on the Draft Energy Policy
By the Fort Collins Sustainability Group
November 17,2008
The Fort Collins Sustainability Group(FCSG)has reviewed the Draft Energy Policy
discussed at the City Council Work Session on September 23rd, 2008. We believe that
the Policy should be strengthened by making one addition and one change,as described
below:
1. Goal#2 should include a reference to the City's 2012 greenhouse gas
reduction intent.
a. The City's 2020 and 2050 greenhouse gas emissions goals referred to in
Energy Policy goal 42 were established in Council Resolution 2008-051.
That resolution also establishes a 2012 greenhouse gas reduction intent to
limit emissions in that year to no more than 2.466 million tons. In order to
be in alignment with Resolution 2008-051 and the Fort Collins Climate
Plan,the Energy Policy should also refer to the 2012 reduction intent.
2. Under Goal#2 objectives and metrics,Fort Collins Utilities should commit to
achieving energy efficiency and conservation program savings of at least
1.75% of annual energy use for the period 2010 through 2020. Electric
energy used to charge electric vehicles should be exempted from this
requirement.
a. The Draft Energy Policy only calls for 1.0%annual electric energy
savings through 2020. This goal should be contrasted with the goal set by
the Sacramento Municipal Utility District of a 1.5%annual decrease in
electric energy use for ten years,and with the goal set by Efficiency
Vermont of a 1.75%decrease in electric energy use for two years. The
goal we propose would establish Fort Collins Utilities as a(if not THE)
national leader in reducing customer energy consumption. It would also
help realize City Council's goal of stimulating the local economy,
expressed in Resolution 2007-015,by promoting business activity focused
on delivering energy efficient products and services.
b. The FCSG recognizes the desirability of shifting from gasoline powered
vehicles to hybrid or electric vehicles, and therefore believes that
electricity used to charge electric vehicles should be exempted from the
annual reduction goal. The benefit in lower overall greenhouse gas
emissions associated with the use of electric vehicles should be quantified
in the annual Climate Plan progress reports to be prepared for Council.
c. The FCSG acknowledges that it will take some time to put public and
private programs in place to realize this aggressive savings goal. We
therefore believe that the 2009 electric energy savings goal should be
1.0%to allow public and private programs to ramp up to meet the goal for
2010 through 2020.
Page 4 of 5
ATTACHMENT # 2
We urge Fort Collins Utilities to make the change and addition outlined above in the final
version of the Energy Policy.
Respectfully submitted by:
The Fort Collins Sustainability Group
John Anderson
Kevin Cross
Phil Friedman
Deanna Kowa]
Eric Levine
Reiner Lomb
Page 5 of 5
city of Utilities-Electric Board
Fort Collins 700Wood Bt.
PO Box 580
////YY'VV''�y���y�� fort Collins,CO 60522-0580
/� 970.416.2202
970.416.2208-fax
fcgov.com/utilities
ATTACHMENT
MEMORANDUM
Date: November 19, 2008
To: Wade Troxell, City Council Member and Electric Board Liaison
From: Fort Collins Electric Board
Re: FCU 2008 Energy Policy
In 2003, City Council adopted the Electric Energy Supply Policy that recognized the interrelated
planning goals of high reliability, low rates and minimizing environmental impacts. The 2003
plan set the framework for effective actions to meet these goals; however, the Electric Board felt
that it was time to update the plan and associated goals.
The revised Energy Policy reflects five years of experience implementing the 2003 policy, the
evolving electric utility industry and the interests of Fort Collins citizens. The purpose of the
revised policy is to provide guidance for Fort Collins Utilities' Light and Power Service Unit and
the Energy Services group.
The vision of the new policy is: "To serve the community with highly reliable, affordable,
carbon neutral electric service, guided by an ethic of sustainable, innovative and responsible
management." The policy describes four goals with associated objectives and metrics. These
four goals are:
1. Provide highly reliable electric service.
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.
3. Enhance local economic vitality.
4. Maintain Fort Collins Utilities' collaborative relationship with Platte River Power
Authority.
The 2008 Energy Policy will be reviewed and revised as needed the fifth year after adoption.
At the November 19, 2008, Electric Board meeting the Electric Board unanimously endorsed the
revised policy and respectfully, yet strongly, recommends that City Council adopt the new
Energy Policy.
Cc: Mayor and City Council Members
Darin Atteberry, City Manager
Brian Janonis, Utilities Executive Director
ATTACHMENT
MEMORANDUM
FROM THE CITY OF FORT COLLINS
NATURAL RESOURCES ADVISORY BAORD
Date: November 19, 2008
To: Mayor and Council Members
From: Alan Apt on behalf of the Natural Resources Advisory Board
Subject: Draft 2008 Energy Policy recommendations
The Natural Resources Advisory Board recommends that City Council adopt the Draft 2008
Energy Policy.
The board acknowledges the coordination and interrelationship between this policy and the Draft
Climate Action Plan.
NRAB voted 4-1 (including 1 abstention) in favor of this resolution.
Please feel free to contact me regarding the NRAB's recommendation on this issue.
Respectfully Submitted,
Alan Apt, Chair
Natural Resources Advisory Board
cc: Darin Atteberry, City Manager
John Armstrong, Staff Liason
ATTACHMENT 5
DRAFT 2008 ENERGY POLICY
CITY COUNCIL MEETING
DECEMBER 2, 2008
Brian Janonis
Utilities Executive Director
Energy Policy Public Process
• Council discussions in April, August and September
relating to renewable energy, energy efficiency and
climate plan
• Energy Policy work session September 23
• Open house November 17
• Web and email comments
• Review of policy by Electric, Air Quality and Natural
Resources advisory boards
1
ATTACHMENT
Energy Policy Goals
1. Provide highly reliable electric service
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
3. Enhance local economic vitality
4. Maintain Fort Collins Utilities collaborative
relationship with Platte River Power Authority
X ,
�a
What we expect for
energy and demand savings
• Energy efficiency program results from 2009 through 2020
— Annual energy reduction in 2020 of over 233,000
megawatt-hours
— Peak summer demand reductions of nearly 50
megawatts
• Active load management results
(shifting summer peak demand)
— 15 megawatts by 2015
— 30 megawatts by 2020
2
ATTACHMENTS
Alignment with the City's Climate Goals
• 2020 Energy Policy emissions reductions
— 1/3 from energy efficiency
— 1/3 from automated metering infrastructure (AMI),
smart grid and conservation
— 1/3 from renewable energy
• Energy Policy is referenced by the Climate Plan
— Provides 25% of 2012 estimated reduction
— Provides 57% of 2020 estimated reduction
� r
Implementation Strategies
• Energy Efficiency Implementation Plan, early 2009
— Provides an overview of the potential for efficiency savings
— Offers levels of implementation, costs and associated energy
reduction
— Aggressive level planned to maximize outcomes
• AMI/Smart Grid, implementation plans and roadmap in 2009
— Mid-line strategy planned to start implementation with careful
attention to new opportunities
• Renewable energy, includes Platte River plans for new utility
scale development
— Updated strategy to replace renewable energy certificates
with wind, support local solar, allow carbon market to
develop and identify new opportunities
• Integrated into budgeting-for-outcomes process for 2010/2011
3
ATTACHMENT 5
Expected Energy Policy Outcomes
• Continued high electric system reliability
• Modernization of the electric metering system
• Long-term asset management of the electric distribution system
• Greenhouse gas emissions reductions from efficiency,
conservation and renewable energy
• Affordable electric bills, through competitive rates, efficiency and
conservation
• Local economic benefits of a healthy municipal utility, high
reliability, affordability and investments in efficiency and
renewable energy
• On-going collaborative relationship with Platte River Power
MEW-!";
4
RESOLUTION 2008-123
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING AND ADOPTING AN UPDATED ENERGY POLICY
WHEREAS,on March 25,2003,the City Council approved and adopted the Electric Energy
Supply Policy (the "2003 Policy"); and
WHEREAS, City staff has prepared a revised energy supply policy entitled"Energy Policy
2008," a copy of which is attached hereto as Exhibit"A" and incorporated herein by this reference
(the "2008 Policy"); and
WHEREAS, the provisions of the 2008 Policy are consistent with the fundamental goals
previously established in the 2003 Policy to maintain electric distribution system reliability and
energy affordability for the community; and
WHEREAS, in addition,the 2008 Policy contains language intended to:
• incorporate related carbon reduction goals adopted by the City Council in May 2008
in Resolution 2008-051, as well as renewable portfolio standards set by the State of
Colorado for municipal utilities to achieve ten percent renewable energy of total
energy resources by the year 2020;
• update metrics and calibrate goals to align with electric industry best
practices;
• support local economic vitality by focusing on providing highly reliable
electric service while maintaining competitive electric costs and effective
energy efficiency and conservation programs; and
• emphasize the importance of maintaining the City's relationship with its
electric generator, Platte River Power Authority; and
WHEREAS, on November 19, 2008, the Electric Board considered the 2008 Policy and
unanimously recommended that the City Council approve and adopt the 2008 Policy; and
WHEREAS, on November 19, 2008, the Air Quality Advisory Board considered the 2008
Policy and unanimously recommended that the City Council approve and adopt the 2008 Policy;and
WHEREAS,on November 19,2008,the Natural Resources Advisory Board considered the
2008 Policy and recommended that the City Council approve and adopt the 2008 Policy.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the Fort Collins Utilities Energy Policy 2008 is hereby approved and adopted.
Passed and adopted at a regular meeting of the City Council held this 2nd day of December,
A.D. 2008.
Mayor
ATTEST:
City Clerk
City of
Fort Collins
Utilities
EXHIBIT A
Fort Collins Utilities Energy Policy
November 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 ti
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 that recognized the interrelated planning goals of high
reliability , low rates and minimizing environmental impacts .
This revised 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 .
j
The purpose of this policy is to provide strategic planning guidance for Fort Collins
Utilities ' Light and Power Service Unit and the Energy Services group . The policy
describes a mid -century vision and four goals with associated objectives and metrics .
2050 Vision
To serve the community with highly reliable , affordable , carbon neutral electric service ,
guided by an ethic of sustainable , innovative and responsible management .
i
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 and Power' s reliability . Light and Power demonstrates
the value of skilled and qualified employees through long -term planning for hiring ,
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City of
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I Utilities
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
communications network , software and hardware to monitor, control and manage the
reliability and overall system efficiency of the generation , distribution , storage and
consumption of energy .
Average System Availability Index (ASAI)
99. 9990% -
99 . 9980% - - - - - -
99 . 9970% - - - -
99 . 9960% - - -
99 . 9950% - - -- ---
99 . 9940%
99 . 9930% -
99 . 9920% --
L 99 . 9910%
� 99 . 9900%
E 99 . 9890%
a� 99 9880% Objective
u 99 . 9870%
CO 99 . 9860% -
99 . 9850
99 . 9840%
99 . 9830%
99 . 9820%
99 . 9810%
99 . 9800%
2003 2004 2005 2006 2007
Year
Figure 1 : Fort Collins Utilities Reliability (2003-2007)
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 ; and
o System Average Interruption Frequency Index (SAIFI ) less than 1 . 0 .
• Apply appropriate construction standards and material specifications 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 objectives and
implementation plans .
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City of
Fort Collins
Utilitiees
• 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 .
c Increase the power managed by load 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 , customer response and weather normalization .
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 and Power workforce .
• See Goal #4 for reliability related coordination with Platte River Power Authority .
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 . 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 that 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 ,
including energy supply resources and operations , is a meaningful and pragmatic metric
for measuring the community environmental footprint .
Fort Collins Utilities is 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 s
industry .
3
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City of
Fort Collins
tDRAFTJ Utilities "* `
120.0%
Fort Collins , 1992 to 2007
100. 0% * 44% more people
* 75% more energy
* 115% higher peak demand
y 80. 0%
d
V
C 60. 0%
C
N
i
n� 40. 0% -
The Policy
20. 0%
0.0%
1992 1994 1996 1998 2000 2002 2004 2006 2008
Year
-+- Population tEnergy (MWh) Demand (MW)
Figure 2 : Fort Collins Population , Energy and Peak Demand Growth ( 1992-2007)
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 . In coordination with Platte River Power
Authority, develop generation resources and the delivery of renewable
energy to meet minimum requirements .
o Offer voluntary renewable energy programs , whereby customers can
support renewable energy and local renewable energy projects through
opt- in premium pricing .
o Increase the contribution of renewable energy to reach the 20% by 2020
carbon reduction goal , after accounting for the contributions of resource
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Fort Collins
a �t utilities
mix, energy efficiency, conservation , minimum renewable energy
requirements and voluntary renewable energy programs .
o Include renewable energy sources that can be scheduled 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 .
Goal #3 : Enhance local economic vitality i
s
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 . Competitive
electricity costs and effective energy efficiency and conservation programs result in a
lower community energy bill , supporting economic activity in other areas .
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 in energy efficiency, supporting research and
demonstration projects and as a participant in clean energy collaborations .
FC Utilities Residential Customers Monthly Average Electric Bill
Non-electric Heat Homes 2007
3,000
2,500 —
` 2,000 Average monthly bill = $55
d
E
o
W 1 ,500
n � i
o ' �
1 ,000
i
i
500 '
i I
°o °o °o ,%o 0 0 0 0 0 0 0 0 o J
Average monthly bill i
Figure 3: Fort Collins Average Residential Electric Bills (2007)
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a
City of
Fort Collins
Sftao Utilities
Goal #3: Objectives and Metrics
• Maintain the financial health of Fort Collins Utilities ' Light and Power Service Unit
to support the vision of the 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 that 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
customers .
• Promote the benefits of clean energy solutions to existing and potential
customers .
Goal #4 : Maintain Fort Collins Utilities collaborative relationship with Platte River
Power Authority
Platte River Power Authority and Fort Collins Utilities have a long history of working
closely together to meet the needs of electric customers . Platte River provides
generation and transmission level electric services , while Utilities provides distribution
service , metering and direct customer services . Fort Collins contracts with Platte River
for all of the electricity delivered to customers , including renewable energy. The Platte
River board of directors is comprised of two representatives from each of the four cities ,
typically the utilities director and mayor.
Goal #4: Objectives and Metrics
• Encourage Platte River Power Authority to design , operate and maintain the
electric generation and transmission system to minimize the risk of system
outages .
• Work with Platte River Power Authority to design , operate and maintain the
electric generation , transmission and distribution system to maximize system
efficiency .
• Work with Platte River Power Authority to delay the construction of new base
load generation facilities .
• Encourage Platte River Power Authority to continue reducing emissions from
fossil fuels in current and future generation facilities .
• Work with Platte River Power Authority to continue to diversify the portfolio of
energy sources that serve the City .
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City of
i
Fort Collins
Utilities+`''!
Reporting and Policy Update
In order to provide transparency and document progress , the Utilities Executive Director
will provide the City Manager, Electric Board and City Council with an annual status
report on the Energy Policy . The report will document progress on the goals and
objectives included in the policy , report policy related costs and benefits of policy
initiatives and update plans for the next year.
The Energy Policy will be reviewed and revised in the fifth year after adoption .
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