HomeMy WebLinkAboutMinutes 07/28/19973528
CITY COUNCIL/UTILITY ADVISORY COMMITTEE
SPECIAL MEETING
Port Angeles, Washington
July 28, 1997
CALL TO ORDER - Mayor Ostrowski called the regular meeting of the Port Angeles City Council to order at
REGULAR MEETING: 3:15 a.m.
ROLL CALL: Members Present: Mayor Ostrowski, Councilmembers Braun, Campbell, Hulett,
and Wiggins.
Members ,4 bsent: Councilmembers Doyle and McKeown.
Utility Advisory Committee
Members Present: B. Myers and J. Michalczik
Staff Present: Manager Pomeranz, Attorney Knutson, Deputy Clerk Hagar,
J. Pittis, B. Titus, B. Collins, and T. O'Neill.
Public Present: P. Ripley, N. Schaefer.
Presentation from Mayor Ostrowski explained the purpo~ of this meeting was to hear a presentation from the
Bonneville Power Bonneville Power Administration regarding utility deregulation. At Mayor Ostrowski's
Administration re. request, Deputy Director Titus introduced Mr. Joe Michalczik, industrial customer
Deregulation representative to the Utility Advisory Committee (UAC); Mr. Bill Myers, residential and
commercial customer representative to the UAC; Chuck Forman, BPA Account Executive;
Ruth Bennett, Mr. Forman's Supervisor; and Jan Brady, who gave the presentation.
Chuck Forman explained that the BPA wished to share the information they have received
regarding retail access pilots. Several areas have tried experimental pilots on retail access
which allowed consumers to choose their electricity supplier. Jan Brady, Administrative
Economist for the BPA, used the overhead projector to review the handout she had
distributed regarding deregulation changes to the electric utility industry and pilot programs
taking place in the Northwest. She explained that New Hampshire had been one of the first
states to undertake a pilot program. A survey was sent to the New Hampshire residents
eligible to participate in the pilot program. Of those who responded, 71% named price as
the primary reason for changing utility providers, 52% felt it easier to stay with current
provider than switch, and 84% felt competition was good.
Residential customers want retail choice, but no reduction in service and/or reliability. Of
Washington residents polled, 61% say yes to customer choice. Customers want price cuts
of between 5% and 20%, although an unhappy customer may switch for as little as 5%.
Commercial and industrial customers felt the top priority was to reduce the energy bill, and
that is what they expect from competition. However, they also consider trust in their
supplier to he as important as a low price. Commercial/industrial customers want the
energy supplier to he on firm financial footing and ready for deregulation, but they will not
switch for minor savings.
Ms. Brady went on to discuss marketing strategies that work, such as being the incumbent
utility, blunting the competition by contacting customers early, and being competitive on
price. She advised staff to think outside the box and provide custom solutions for
commercial/industrial problems, and to consider offering risk management services to
them. Ms. Brady reviewed the right media mix and stated mail brochures and bill stuffers
are an important information source.
Ms. Brady concluded by saying the time to start preparing for competition is now. Utilities
should make early customer contact, capi'talize on good customer relations, explore value
added scnMces and consider marketing alliances. The City Council and UAC must decide
what kind of business the City wishes to be,involved in and move in that direction. The
presentation was followed by a brief question and answer period, with limited discussion
of stranded costs.
ADJOURNMENT: The meeting was adjourned at 4:4~ p.m. ~- ...... ~,
/
- I -