HomeMy WebLinkAbout2016CV144 - FARVER V. CITY OF FORT COLLINS - 048F - EXHIBIT GGThis unofficial copy was downloaded on Feb-09-2017 from the City of Fort Collins Public Records Website: http://citydocs.fcgov.com
For additional information or an official copy, please contact City Clerk's Office City Hall West 300 LaPorte Avenue Fort Collins, CO 80521 USA
EXHIBIT GG
DATE FILED: February 9, 2017 4:29 PM
FILING ID: 9B5E9BDEA737B
CASE NUMBER: 2016CV144
This unofficial copy was downloaded on Feb-09-2017 from the City of Fort Collins Public Records Website: http://citydocs.fcgov.com
For additional information or an official copy, please contact City Clerk's Office City Hall West 300 LaPorte Avenue Fort Collins, CO 80521 USA
EXHIBIT GG
This unofficial copy was downloaded on Feb-09-2017 from the City of Fort Collins Public Records Website: http://citydocs.fcgov.com
For additional information or an official copy, please contact City Clerk's Office City Hall West 300 LaPorte Avenue Fort Collins, CO 80521 USA
EXHIBIT GG
This unofficial copy was downloaded on Feb-09-2017 from the City of Fort Collins Public Records Website: http://citydocs.fcgov.com
For additional information or an official copy, please contact City Clerk's Office City Hall West 300 LaPorte Avenue Fort Collins, CO 80521 USA
EXHIBIT GG
This unofficial copy was downloaded on Feb-09-2017 from the City of Fort Collins Public Records Website: http://citydocs.fcgov.com
For additional information or an official copy, please contact City Clerk's Office City Hall West 300 LaPorte Avenue Fort Collins, CO 80521 USA
EXHIBIT GG
This unofficial copy was downloaded on Feb-09-2017 from the City of Fort Collins Public Records Website: http://citydocs.fcgov.com
For additional information or an official copy, please contact City Clerk's Office City Hall West 300 LaPorte Avenue Fort Collins, CO 80521 USA
EXHIBIT GG
This unofficial copy was downloaded on Feb-09-2017 from the City of Fort Collins Public Records Website: http://citydocs.fcgov.com
For additional information or an official copy, please contact City Clerk's Office City Hall West 300 LaPorte Avenue Fort Collins, CO 80521 USA
EXHIBIT GG
This unofficial copy was downloaded on Feb-09-2017 from the City of Fort Collins Public Records Website: http://citydocs.fcgov.com
For additional information or an official copy, please contact City Clerk's Office City Hall West 300 LaPorte Avenue Fort Collins, CO 80521 USA
EXHIBIT GG
This unofficial copy was downloaded on Feb-09-2017 from the City of Fort Collins Public Records Website: http://citydocs.fcgov.com
For additional information or an official copy, please contact City Clerk's Office City Hall West 300 LaPorte Avenue Fort Collins, CO 80521 USA
EXHIBIT GG
This unofficial copy was downloaded on Feb-09-2017 from the City of Fort Collins Public Records Website: http://citydocs.fcgov.com
For additional information or an official copy, please contact City Clerk's Office City Hall West 300 LaPorte Avenue Fort Collins, CO 80521 USA
EXHIBIT GG
This unofficial copy was downloaded on Feb-09-2017 from the City of Fort Collins Public Records Website: http://citydocs.fcgov.com
For additional information or an official copy, please contact City Clerk's Office City Hall West 300 LaPorte Avenue Fort Collins, CO 80521 USA
EXHIBIT GG
This unofficial copy was downloaded on Feb-09-2017 from the City of Fort Collins Public Records Website: http://citydocs.fcgov.com
For additional information or an official copy, please contact City Clerk's Office City Hall West 300 LaPorte Avenue Fort Collins, CO 80521 USA
EXHIBIT GG
This unofficial copy was downloaded on Feb-09-2017 from the City of Fort Collins Public Records Website: http://citydocs.fcgov.com
For additional information or an official copy, please contact City Clerk's Office City Hall West 300 LaPorte Avenue Fort Collins, CO 80521 USA
EXHIBIT GG
This unofficial copy was downloaded on Feb-09-2017 from the City of Fort Collins Public Records Website: http://citydocs.fcgov.com
For additional information or an official copy, please contact City Clerk's Office City Hall West 300 LaPorte Avenue Fort Collins, CO 80521 USA
EXHIBIT GG
1
11
DRAFT 2008 ENERGY
POLICY
CITY COUNCIL MEETING
JANUARY 6, 2009
22
Electric Energy Business Environment –– the
Big Picture
• Technology Advances – metering, load management,
distributed generation resources
• Regulatory Environment – political changes and
growing interest in regulation to reduce greenhouse
gas emissions
• Carbon market development
• Funding – increased funding for development of new
ways to manage electric generation, transmission
and distribution, demand reduction and energy
conservation
EXHIBIT GG
2
33
At the local level
•21st Century Utilities focus on reducing environmental
impacts
• City Council support for programs and services that
help the community reduce greenhouse gas
emissions
• Increasing opportunities to support the local economy
and business development through the “new energy
economy”
• New opportunities for renewable energy development
• State funding for expansion of renewable energy and
energy efficiency programs
44
Highlights of Major Changes
• Updated metrics to align with utility best practices
• Adopting a framework to align with carbon emissions
reduction goals
• An economic focus on affordability, local economy
and Utilities’ financial health
• Priorities:
– Energy efficiency
– Local investments
– Maintaining the reliability of the distribution system
EXHIBIT GG
3
55
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
• Preparation for December 2 work session
66
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
EXHIBIT GG
4
77
What we expect for
energy and demand savings
• Energy efficiency program results from 2009 through
2020
– Annual energy reduction in 2020 of 200,000
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
88
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
EXHIBIT GG
5
99
Energy Efficiency Goals Compared
Draft Energy
Policy
Energy Policy
Scenario 1
Energy Policy
Scenario 2
Energy Policy
Scenario 3
Efficiency Annual Goals 1.0% per year 1.25% per year 1.5% per year 1.75% per year
2009-2020 MWh avoided 199,510 245,562 291,615 337,668
2009-2020 CO2e tons avoided 175,568 216,095 256,621 297,148
Annual FC Utilities Cost $1,539,000 $2,124,000 $3,410,000 $4,931,000
Cost of Conserved Energy, $/kWh $0.019 $0.019 $0.023 $0.026
Additional Annual Rate Impact 1.0% 1.5% 3.0% 5.0%
Benefit / Cost ratio 2.9 2.9 2.4 2.1
1010
Implementation Strategies
• Energy Efficiency Implementation Plan
– 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
– Mid-line strategy planned to start implementation with careful
attention to new opportunities
• Renewable energy, includes Platte River plans for new utility
scale development
• Integrated into budgeting-for-outcomes process for 2010/2011
EXHIBIT GG
6
1111
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
Authority
EXHIBIT GG
This unofficial copy was downloaded on Feb-09-2017 from the City of Fort Collins Public Records Website: http://citydocs.fcgov.com
For additional information or an official copy, please contact City Clerk's Office City Hall West 300 LaPorte Avenue Fort Collins, CO 80521 USA
EXHIBIT GG
This unofficial copy was downloaded on Feb-09-2017 from the City of Fort Collins Public Records Website: http://citydocs.fcgov.com
For additional information or an official copy, please contact City Clerk's Office City Hall West 300 LaPorte Avenue Fort Collins, CO 80521 USA
EXHIBIT GG
December 2, 2008 Page 1
2008 Energy Policy
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 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.
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.
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,
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
EXHIBIT GG EXHIBIT A
December 2, 2008 Page 2
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)
99.9800%
99.9810%
99.9820%
99.9830%
99.9840%
99.9850%
99.9860%
99.9870%
99.9880%
99.9890%
99.9900%
99.9910%
99.9920%
99.9930%
99.9940%
99.9950%
99.9960%
99.9970%
99.9980%
99.9990%
2003 2004 2005 2006 2007
Year
System Reliability
Objective
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.
• 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 load management, smart grid and
distributed generation to at least 5% of 2005 system peak demand by
EXHIBIT GG
December 2, 2008 Page 3
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
industry.
EXHIBIT GG
December 2, 2008 Page 4
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
1992 1994 1996 1998 2000 2002 2004 2006 2008
Year
Percent Increase
Population Energy (MWh) Demand (MW)
Fort Collins, 1992 to 2007
* 44% more people
* 75% more energy
* 115% higher peak demand
The Policy
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
EXHIBIT GG
December 2, 2008 Page 5
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
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
-
500
1,000
1,500
2,000
2,500
3,000
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
$110
$120
$130
$140
$150
$160
$170
$180
$190
$200
Average monthly bill
# of customers
Average monthly bill = $55
Figure 3: Fort Collins Average Residential Electric Bills (2007)
EXHIBIT GG
December 2, 2008 Page 6
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.
EXHIBIT GG
December 2, 2008 Page 7
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.
EXHIBIT GG