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HomeMy WebLinkAboutMemo - Mail Packet - 7/12/2022 - Memorandum From John Phelan Re: June 28, 2022 Work Session Summary: Solar 120% Sizing Rule And Rates Utilities electric · stormwater · wastewater · water 222 Laporte Ave. PO Box 580 Fort Collins, CO 80522-0580 970.212.2900 V/TDD: 711 utilities@fcgov.com fcgov.com/utilities M E M O R A N D U M DATE: July 1, 2022 TO: Mayor Arndt and City Councilmembers THRU: Kelly DiMartino, Interim City Manager Kendall Minor, Utilities Executive Director FROM: John Phelan, Energy Services Manager and Policy Advisor RE: June 28, 2022 Work Session Summary: Solar 120% Sizing Rule and Rates The purpose of this memo is to summarize the discussion from the work session regarding the solar 120% sizing rule and associated electric utility rates. Councilmembers Arndt, Francis, Pignataro, Peel, Gutowsky and Ohlson were present. The overall objectives for local solar policy and practice are twofold: 1) to support scaled up adoption in alignment with Our Climate Future and resource planning targets; with 2) a sustainable and equitable funding for Utilities customer service, operations, and infrastructure. The existing sizing requirement articulated in City Code limits new solar systems to provide no more than 120% of Combined with replacement of the 120% rule, proposed changes to several components of the current rate structure align with accomplishing these outcomes. Feedback from Council included: Several Councilmembers expressed support for all five of the primary recommendations presented by staff. Staff responded to several questions related to how solar sizing may impact requirements related to Platte River Power Authority. Councilmembers expressed support for continued collaboration with Platte River and the other member cities towards accomplishing community energy goals. A Councilmember asked about the role of community solar in addition to rooftop solar. A Councilmember asked questions about several rate components, expressing: o An interest to re-examine the base rate o Strong support for the tier component of the time-of-day rate o Support for replacing the 120% sizing rule, and o Pointed to the staff proposed next step of a written summary of potential benefits and risks of removing the tier component from the current rates Next steps: Bring forward ordinance language to revise City Code with regards to the Solar 120% Rule with replacement by an administrative model for flexibly managing solar sizing, including coordination with Platte River Deliver a written summary to Council regarding the potential benefits and risks of removing the tier component of the TOD rate regarding electrification, customer service, and solar Prepare related options for the fall electric rate ordinances that support solar and electrification goals CC: Gretchen Stanford, Utilities Deputy Director Customer Connections Lance Smith, Utilities Finance Director Randy Reuscher, Utilities Rate Analyst