HomeMy WebLinkAbout2009-002-01/06/2009-ADOPTING AN UPDATED ENERGY POLICY RESOLUTION 2009-002
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING AN UPDATED ENERGY POLICY
WHEREAS,on March 25,2003,the City Council approved and adopted the current Electric
Energy Supply Policy(the "2003 Policy"); and
WHEREAS, City staff has prepared a revised energy supply policy entitled"Energy Policy
2009,"a copy of which is attached hereto as Exhibit"A"and incorporated herein by this reference
(the "2009Policy"); and
WHEREAS, the provisions of the 2009 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 2009 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 health 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 the City continuing to work closely with its
electric generator,Platte River Power Authority to further the other identified
goals.
WHEREAS,the Electric Board,Air Quality Advisory Board and Natural Resources Advisory
Board each reviewed and recommended a prior version of the 2009 Policy and recommended that
the City Council approve and adopt that prior version of the 2009 Policy which has since been
modified in response to Council comments.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the Fort Collins Utilities Energy Policy 2009 is hereby adopted by the Council.
Passed and adopted at a regular meeting of the C c' of the City of Fort Colli this 6th
day of January A.D. 2009.
Mayor
ATTEST:
C
City Clerk
EXHIBIT A
Fort Collins
Utilities
2009 Energy Policy
Backaround
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, the Energy Services group and the entire City
government. The policy describes a mid-century vision and four goals with associated
objectives and metrics.
2050 Vision
To ensure for the Fort Collins community highly reliable, competitive, carbon neutral
electricity supplies, managed in a sustainable, innovative, responsible and efficient
manner.
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.
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Utilities
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.
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
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
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Fort Collins
Utilities
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.
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.
• Adopt pricing policies that reflect the short term and long term costs, both direct
and indirect, of generating and delivering electricity.
• 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 1.5% 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
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 requiring highly
energy efficient new buildings and supporting increased efficiency in existing
buildings.
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Utilities
• 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 health.
Fort Collins Utilities' Light and Power Service Unit has supported our local economy
with highly reliable service, and a history of low and stable electric rates. Going forward,
competitive rates should be combined with energy efficiency and conservation
programs to result in low and sustainable community energy bills, supporting economic
activity in all 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.
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 efficiency and conservation programs to help keep customers' energy
bills affordable. 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.
• Strive to invest climate improvement monies locally in programs that have long-
term positive impacts.
Goal #4: Work closely with Platte River Power Authority members and Platte River staff
to further City of Fort Collins' Energy Policy goals.
Platte River provides a strong means for furthering the energy goals of Fort Collins and
the other Platte River members. 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. Platte River is controlled by a
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Utilities
board of directors comprised of two representatives from each of the four cities,
typically the utilities director and mayor.
Goal#4: Objectives and Metrics
• Develop closer working relationship with the other Platte River cities.
• With other member cities, provide policy guidance to Platte River to:
o Design, operate and maintain the electric generation and transmission
system to minimize the risk of system outages.
o Develop long-term planning policies for Platte River that facilitate
innovative solutions to future energy challenges.
o Design, operate and maintain the electric generation, transmission and
distribution system to maximize system efficiency.
o Avoid the construction of new base load generation facilities.
o Reduce impacts from fossil fuel use in current and future generation
facilities.
o Diversify the portfolio of energy sources that serve the City.
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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