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Home My WebLink AboutAgenda Packet 06/21/2013City of Port Angeles Joint Council /Utility Advisory Committee 2013 Electric Utility Strategic Planning Session Friday, June 21, 2013 City Council Chambers 9:00 AM -3:00 PM '= c r :° ,F r illle .12210 Ii scuss Ac i: ion , Phil Welcome :10 X X • Introductions- UAC members, facilitator & others 9:00 — • Want we want to accomplish today (pre -work) 9:10 • Gain agreement of direction for the day X Arnie Facilitator role and expectations :10 X X X 9:10- 9:20 Phil Review from 2009 & 2011 planning sessions — Develop a :30 X X Council /UAC report card on key activities discussed and actions taken 9:20 - Arnie • "What worked" and "what didn't go as planned" for each activity 9:50 • Lessons learned — applying to our future actions Shannon • Overview of BPA's FY 2014 -2015 Power and :20 X Greene, BPA Transmission Rate Case 9:50- 10:10 All Break :10 X 10:10- 10:20 , Phil, EES Group & All Key issues facing City's Electric Utility during the next three years; SWOT analysis overview :50 10:20- X X • Strengths 11:10 • Weaknesses • Opportunities • Threats Is there a priority to these key issues? FCS Group Cost of Service Studies: Policy should drive rates :50 X X • While the electric utility is the principal focus, what 11:10 - key policy issues should be addressed by the City's utilities? 12:00 All Catered Lunch Break :45 X 12:00- 12:45 Arnie & All High -level SWOT action plan :105 X X X 12:45- 2:30 All Deputy Director Action Plan :15 X X X • August Utility Advisory Committee 2:30- 2:45 Arnie & All Did we accomplish what we wanted to? :15 X X X What did we do well? What could we do differently or improve? Northwest Public Peer Association 2013 Electric Utility Strategic Planning Session For City Council and Utility Advisory Committee Members June 21, 2013, 9AM -3PM, Council Chambers, Lunch Provided The Bonneville Power Administration (BPA) began using the "Tiered Rate Methodology" on October 1, 2011. For all parties, this was more than a change in the cost of the City's wholesale power supply; it was a fundamental change in how the BPA accounts for revenue risk with its utility customers. In 2009 and 2011, the City began a strategic process to avoid using more expensive "Tier 2" wholesale power by encouraging greater levels of energy conservation. The City is meeting its objective, and any requirements for Tier 2 wholesale power will not likely happen until after 2019. The purpose of this 2013 workshop is to consider the key issues facing the City's Electric Utility over the next two years by completing a SWOT analysis. SWOT analysis is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It will involve specifying the Electric Utility's near -term key objectives and identify the internal and external factors that are favorable and unfavorable to achieving those objectives. This analysis must be made to continue to ensure a reliable and low -cost wholesale power supply. Presenters Include: Arnie Winkler, NWPPA Shannon Greene, Bonneville Power Administration Kevin Smit and Kelly Tarp, EES Consulting Angie Sanchez and Sergey Tarasov, FCS Group City Staff Comments or Questions? Contact Phil Lusk, 417 -4710 or plusk @cityofpa.us Electric Utility Strategic Planning Session Joint City Council /Utility Advisory Committee June 21, 2013 Port Angeles, Washington Philip D. Lusk Deputy Director of Power and Telecommunication Systems Department of Public Works & Utilities City of Port Angeles, WA Today's Major Discussion Topics ▪ Review of 2009 & 2011 Planning Sessions ■ BPA's FY 2014 -2015 Power and Transmission Rate Case is Electric Utility Key Issues & SWOT Analysis • Strengths, Weaknesses, Opportunities and Threats ■ Cost of Service Studies: Policy Should Drive Rates ▪ Develop High -level Action Plan for SWOT Issues ■ Review Deputy Director Action Plan ■ Did We Accomplish What We Wanted To? Review of 2009 & 2011 Planning Sessions 2009 and 2011 Planning Session Review ■ Under the "Tiered Rate Methodology ", the City is responsible for periodically choosing how it will provide for future energy growth with the BPA • In 2011, key performance objectives were also added ■ For 2013, develop a narrative report card on "what worked" and "what didn't go as planned" • Lessons learned — applying to our future actions 2009 Planning Session Review ■ 2010 -2014 Tier 2 Power Supply Options N7 Select BPA Short -Term Tier 2 alternative for all rate classes ✓ Expand residential, commercial, and City facility conservation programs consistent with the Conservation Potential Study ✓ Expand conservation program by doubling the proposed 2010 -2014 budget, paid for using cash versus debt ✓ Facilitate industrial transmission rate class conservation programs that qualify for BPA program funding ✓ Continue to have a wholesale rate structure for the industrial transmission rate class 2011 Planning Session Review • Explored City's 2015 -2019 Tier 2 Power Supply Options -/Maintain the BPA Short -Term Tier 2 rate alternative for the distribution system and industrial transmission rate class / Adopt an ordinance for new "large" incremental Toads / Review energy sales growth and City funded conservation program activities, performance targets, and funding sources to ensure avoidance of Tier 2 power supply - Complete demand response installations in 2011, evaluate the cost and benefits of demand response in 2012, and if appropriate consider expanding demand response in 2013 - Revisit City's Tier 2 power supply election in June 2016 for the 2019- 2024 Tier 2 power supply 2011 Planning Session Review • Conservation Objectives /Maintain high staff performance to acquire energy conservation through City electric customers / Prepare for an increase in BPA energy conservation funding beginning October of 2011, which is anticipated to continue for at least the next five years. / Continue to identify and implement energy conservation projects at municipal facilities, and participate in the resource conservation manager program through 2011 /Continue to seek additional BPA funding to implement energy conservation activities within the City 2011 Planning Session Review • Telecommunications Objectives /Explore need for a Telecommunications Utility ordinance in 2011 for the future City -owned wireless mobile data system /Explore ways to leverage telecommunications capability - Prepare a Request for Qualifications (RFQ) in 2013 for consultant services for the Cable Television Franchise formal renewal proceeding • Include a community survey and a future needs and interests report 2011 Planning Session Review • Electric Utility Rates & Finances Objectives /Anticipate wholesale power cost increases in the Fall of 2011 /Communicate 2011 BPA wholesale power rate increase to the public /Return to City Council to evaluate options for retail rate increases that reduce retail rate revenue risk (basic vs. consumption charge) /Mitigate utility discount customer impacts prior to September 2011 2011 Planning Session Review • Electric Utility Rates & Finances Objectives (Con't) - Consider retail rates that rebuild the unrestricted cash balance - Consider conducting a separate customer survey on green retail rate alternative in 2013 - Consider continuing the communications plan incorporating AMI System benefits in 2012 (e.g., time of use rates, customer portal, high usage alerts, water leak alerts, etc.) - Evaluate the effect on weekday (Monday through Friday) Time -of -Use retail rates if Saturdays are made into either a low or medium rate in 2013 Review of 2011 Planning Session • Other Objectives /Infrastructure Plan: Complete cost/benefit evaluation of pole replacement to determine future use of City crews or contractors in 2012 /Landfill Flare Facility: assess gas quality and quantity in 2011, then proceed with a RFP for beneficial use development in 2012 / Transportation Sector Electrification: Seek grant opportunities for electric vehicle infrastructure and charging station(s) in 2011 / Public Power: Maintain a positive relationship with BPA, and memberships in trade associations (i.e., PPC, WPAG, and NWPPA) that preserve public power benefits - Infrastructure Plan; Maintain renewals and replacements at or above depreciation 2011 forward - Future Annexations: Engage the Clallam County Public Utility District in a discussion to consider electrical customer transfer by wheeling arrangement versus acquisition of assets in 2012 Review of 2011 Planning Session • Advanced Metering Infrastructure System Objectives - Consider additional demand response efforts in 2013 - Integrate the AMI system into the Conservation Voltage Optimization and SCADA Systems in 2012 - Consider annual meter inspection to review meter condition, check for tampering, and ensure clearances are maintained, beginning 2012 - Utilize the outage management system beginning 2012 - Consider redundant fiber optic connections to AMI system collectors in 2012 to ensure high network reliability - Correlate consumption with meteorological data to predict next day peak hour in 2012, and use for demand response scheduling - Begin optimization of electrical transformer right sizing, commercial water meter right sizing, and water system main leak detection in 2013 - Consider future distribution automation and smart grid efforts as they become available (timing unknown) Review of 2011 Planning Session • Advanced Metering Infrastructure System Objectives - Consider additional demand response efforts in 2013 - Integrate the AMI system into the Conservation Voltage Optimization and SCADA Systems in 2012 - Consider annual meter inspection to review meter condition, check for tampering, and ensure clearances are maintained, beginning 2012 - Utilize the outage management system beginning 2012 - Consider redundant fiber optic connections to AMI system collectors in 2012 to ensure high network reliability - Correlate consumption with meteorological data to predict next day peak hour in 2012, and use for demand response scheduling - Begin optimization of electrical transformer right sizing, commercial water meter right sizing, and water system main leak detection in 2013 - Consider future distribution automation and smart grid efforts as they become available (timing unknown) Review of 2011 Planning Session • Advanced Metering Infrastructure System Objectives - Review of these objectives will occur at the August 2013 Utility Advisory Committee Meeting ' • • 90,000 80,000 70,000 60,000 50,000 2 40,000 30,000 20,000 10,000 0 FIGURE 6: Electric Utility Resources for the City of Port Angeles January 2002 - December 2022 . ' ;./ , ,/' ' c*'> ' c>'> `')•> ") ">..> ' (;),› . A. . A „ A '..: „„A , ,> : A• f. a . a '' , a, , a s0,c) sq3j ' r ' ' se, 'sos.:: 1:2., ‘C,....j ' ' . 06) Os, ,,, .i " ; . 41, v 1s: :lc s 19 O. 0 Morse Creek 0 Wheeled M Conservation 0 Demand Response C3 BPA Tier 1 100` 90 80 70 60 2 50 ro '40 30 20 10 0 Op Total Electric Utility Loads Before Conservation Effects for the City of Port Angeles, 2002 -2022 I: I..:.A•., i.M 1 -00 � Tier 1 HW M. :; Total Load' Before Conservation Total Electric Utility Loads After Conservation Effects for the City of Port Angeles 2002-2022 „Total Load After Conservation BPA FY 2014-2015 Power and Transmission Rate Case $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 Port Angeles: Average Annual BPA Power Costs wP=1O ($5,000,000) 13 Tier 2 Charges Load Shaping Charges • Demand Charges ■ Customer Charges ® Energy Charges LDD • Lookback Credit Et Customer Refund • • • Load Characteristics Load = 85.4 aMW Avg. Monthly LF = 73% HLH Energy % = 55% CDQ /Peak = 22% BPA Gen CF = 63% Total Costs ($ /MWh) WP -10 = $27.40 TRM -12 = $29.30 TRM -14 = $31.90 Rate Increases TRM -12 = 6.7% TRM -14 = 9.0% Total = 15.8% Calculations based on FY14- 15 load forecast applied to three BPA rate schedules Average Residential Electric Rate Impact by Utility $/1500 kWh Excluding Taxes Port Angeles - Jan 2012 Port Angeles - Jan 2013 Mason County PUD #3 Mason County PUD #1 Arlington Bainbridge Island Clallam County PUD #1 Puget Sound Energy Grays Harbor PUD Snohomish County PUD Tacoma Public Utilities Seattle City Light WA State Average 1 r 1 l $0 $20 $40 $60 $80 $100 $120 $140 $160 Cost of Service Studies: Policy Should Drive Rates Key Issues & SWOT Analysis Key Discussion Topics • Where does Port Angeles get its energy and how do we use it? • When we use energy is more important today than in the past • Conservation and voluntary demand response remain the City's preferred fuels City of Port Angeles 2011 Fuel Mix Disclosure The electric energy the City of Port Angeles provides to its customers comes from the following resources Oil, 0,01% Biomass, 0.17% tura! Gas, 0.68% Other*, 0.01% SOU RCE: Washington State Department of Commerce * Other contains blast furnace gas, other biomass gas, and purchased steam Non-Profit Yard Lights 0.44% 0.03% Street Lights 0.15% Water Pumping 0.33% City of Port Angeles Electric Utility Loads All Major. Rate Classes in 2011 Water Pumping 0.87% Non-Profit 1.15% City of Port Angeles Electric Utility Loads Major Distribution Rate Classes in 2011 Yard Lights 0.07% Streetlights 0.40% Residential End-Uses in the City of Port Angeles Refrigerator, 5.0% Dishwasher, 0.5% Stove /Oven, 2.0% Clothes Washer, 0.5% Port Angeles' Dual Challenge • Bonneville Power Administration's "Tiered Rate Methodology" became effective on October 1, 2011 • Better manage contract demand quantity, load shape, and critical peak periods • City's electric and water meters are wearing out • Many under measure what people use 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 Residential Demand Example Home #1 Customer Peak Day Costs and Sales (March 2012 Worst- Case) City Peak Period 13.10 12.30 Peak Day Consumption kWh 67.70 kW 13.10 Cost Us $2.54 $119.21 Sold For $4.10 $0.00 P /(L) $1.56 ($119.21) $121.75 $4.10 ($117.65) 8.80 NET - { 6.70 6:@6 3.90 3.60 1.40 0 0 t, . I 0.70 ..•.. rI.40 1.bU 0.40 1 1.10 1 0.30 1 1 I 1.bU 1 0.50 1 .20 0 1 1 2 E 3 1 4 I 5 f I I 6 7 8 1 I 1 1 I 9 10 11 12 13 14 15 16 ,1 17 ' 18 19 20 21 22 23 Actual kW Average kW City of Port Angeles Demand Response History • Pacific Northwest Gridwisem Testbed Program (2005 — 2007) - Internet based remote control of water heaters, grid-friendly clothes dryers, and smart thermostats • Residential DR Pilot (installation in-progress) - AMI dispatched remote control of water heaters and smart thermostats • Wind Integration Pilot Project (2010-2013) - Remote control of thermal energy storage systems to match BPA balancing reserves • Commercial & Industrial DR Pilot - Internet communication/control of imbedded load control devices on up to 41MW of load for Peak Shaving, INC, and DEC dispatch Gridwise Test Be C •Residential DR e, f44, Windlintegr,"ation Rilot P'1•L'""„ DiKommercial Demonstration 2005 W4.4'',.itat' • 3??.4. '• , ,;. . ° - • - City of Port Angeles Voluntary Peak Power Project First-come first-served! Be one of 600 volunteers that get free energy-saving equipment—and a $10 monthly credit on your electricity bill! Voluntary DR Load Control Switch Overview • Reduces peak demand while limiting customer impact • During a DR event, the water heater will be turned off • Water heater reheats to set -point after DR event completion Load control switch can also be used to control other devices • DR credits based on participation • Equipment will be installed at no -cost to customers Voluntary Response Demand Efforts • Customer -Side* • Residential DR Pilot (600 customer units) - Water heaters, smart thermostats Residential Wind Integration Pilot (41 customer units) • Water heaters, thermal storage • Commercial & Industrial DR Pilot (8 customers)* • Open Automated Demand Response Communication Standards (OpenADR) communications protocol • Industrial Wind Integration Pilot (1 customer) • Utility -Side • Voltage Optimization (VO) using manually adjusted line -drop compensation - Will deploy fully automated system to monitor and report lowest end -of -line feeder into City's SCADA system in 2014 * Made possible with the support of the Bonneville Power Administration Conservation Project Examples • 2012 • Free weatherization for qualifying customers • Wind integration pilot project • Commercial & industrial demand response pilot • New single large -load ordinance for better managing customer growth • 2013 -2014 • Update Conservation Potential Study • Ductless heat pump pilot project • Heat pump water heaters • LED lighting • Customer survey on "green- rate" alternatives • Time -of -Use rate schedule Energy efficiency is a great investment especially when you don't have to pay for it! That's why the City of Port Angeles is. offering Free Weatherization for qualifying City Electric Utility V isit theVort Ang'eles City bootliat the county Fair and 1 4t4, customers. • learn more: .4* ,r74 Ductless Systems Have 3 Main Components iricloc.r ti nit,, rtrr ;:initE4On centrafiy- Art 1,-,11.4.0cMi 2:11,J .iiLri;L I. ground ings, or an.0p4alppf cp,„ includihij a re tdcparani:. trtosb cabi3Os-fo:rily,:requir the. wall or ins:tatiatiOili, without' pXpeni'Ve or InVasrive cfflcwork City Council Priorities ▪ Seek all cost - effective conservation and demand response measures as the favored resources for meeting future loads • Conservation's cumulative effects reduced City's 2011 power purchases by 3.2 %, directly saved customers $750,000 and created a multiplier effect of more than $1.7 million • Conservation represents least -risk strategy - Continue City support - Continue to seek more BPA funding Ramp Up Efforts • Reinforce conservation program efforts in areas such as heat pumps and lighting • Voluntary DR projects for all customer classes • Avoid exceeding contract demand quantity, maintain load shape similar to BPA, and mitigate critical peak periods • Seasonal rate structure so that energy is priced correctly in the winter months • Higher winter energy rate sends a rate signal 2012 Resource Plan Summary • Strengths • Conservation program, demand response and wind integration pilot projects • High reliability of power delivery by BPA transmission system • Weaknesses • Limited current generation resources on the Peninsula • BPA transmission line voltage stability • Opportunities • Further infrastructure automation, enhanced conservation, BPA rate incentives for demand response and wind integration • Non -wires approach to BPA's transmission line voltage stability • Threats • Strong potential for significant increases in wholesale power and transmission costs and decreases in BPA "Tier 1" power system • Disruptive technologies Cost of Service Studies: Policy Should Drive Rates High -level Action Plan for SWOT Issues 2013 -2016 Power Supply Recipe ■ Use conservation to hold the average load growth to meet regional goals ■ Use DR and energy storage to flatten the peaks ■ Offset remaining new load growth and selected existing capacity with strategic conservation ■ Could targeted savings be potentially freed for other more productive uses? 2013 -2016 Power Supply Example ■ Use infrastructure automation and voltage optimization to reduce internal power losses ■ Install 4000 ductless heat pumps in homes ■ Install 2000 heat pumps water heaters in homes ■ Use LED lighting in homes and businesses ■ Capture current high -water mark headroom Strength, Opportunity or Threat? kWh 1 aMW 0.969 1.615 0.3721 0.135' Distro Efficiency Ductless Heat Pumps HP Water Heaters r; Comm & Res Lighting !Current Headroom 814851840 14,150,869 3,254,341 1,185,078 9,92111271 36, 997,255 TOTAL 1.133, 4.223 Strength, Opportunity or Threat? Distro Efficiency Ductless Heat Pumps HP Water Heaters kWh 8,485,840 14,150,869 3,2541341 1,185,078 9,921,127 36.997.255 Comm & Res Lighting Current Headroom TOTAL aMW 0.969 1.615 0.372 0.135;. 1.133;= 4.223 1K-Ply Usage �k1yquwa i ents Consulting June 20, 2013 To: Phil Lusk FROM: Kelly Tarp, Kevin Smit SUBJECT: Understanding DR Benefits — Draft Results The objective of this project is to help clarify both to the City and its customers the potential benefits of the demand response projects currently underway (or under study) in the City, and to understand the possible impacts of city -wide installation of heat pump water heaters and ductless heat pumps. The primary goals involved in assisting the City are to: ® Quantify the City's hourly loads and power supply expenses • Illustrate the time and dollar value of potential peak savings to the City • Develop an assessment of the impact of city -wide installation of heat pump water heaters and ductless heat pumps • Develop a method to quantify the potential peak savings for selected individual customers and illustrate their contribution to the City's peak Conservation Potential Update for Specific Residential Programs A high level assessment of the impact of installing ductless heat pumps and heat pump water heaters in all applicable homes city -wide was conducted. EES used some of the assumptions from the City's conservation potential assessment performed in 2009 to quantify this impact. Current savings estimates from the RTF were used for the equipment savings. Tables 1 -4 summarize the assumptions and results of this estimate. 570 Kirkland Way, Suite 100 Kirkland, Washington 98033 Telephone: 425 889 -2700 Facsimile. 425 889 -2725 A registered professional engineering corporation with offices in Kirkland, WA and Portland, OR Page 2 of 9 'Table 1-;General Data and Assumptions Residential Customers (2013) Residential Building Growth Rate Population Residential Customers (2032) 8,900 1 3% 18,500 10,723 Tablet Residential Characteristics Type Single Family Multi - Family: 4 units or less Multi- Family. more than 4 units Mobile Homes Single Family Basement Type Crawlspace 1/2 Basement Full Basement Vintage Pre -1980 1980 - 1990 Post 1992 74% 0% 23% 3% 55% 15% 25% 74% 15% 11% Heat Fuel Type Natural Gas Homes Electric Homes Other Fuel Homes Electric Heat System Type Forced Air Furnace Heat Pump Zonal (Baseboard) Other Water Heating Electric Natural Gas Clothes Dryers Electric Natural Gas 0% 88% 12% 30% 11% 56% 3% 100% 0% 100% 0% Table 3V-Measure Data •Savings (kWh /yr) Heat Pump Water Heater Ductless Heat Purr'. 1,62717 3,816.00 1,234 56 3,407 11 Table 4 Savings Estimates for Full HPWH and DHmplementatixon Baseboard - Heated Forced -Air Electric Electric Water- Heated Total Numberof Annual Savings Homes t.. Per Home ,s- 4,366 2,339 8,900 S avings }(kWh Savings per (aMW) 3,816 3,816 1,627 16, 660, 595 8,925,319 14,481,818 40,067,732 nit Peak Savings (kW)' 1 90 1 02 1 65 4 57 2.78 2 78 0.65 This high -level analysis shows that an overall 4.57 aMW of energy efficiency savings can be achieved through this city -wide adoption of heat pump water heaters and ductless heat pumps. In addition, this application has more significant impact in the heating dominated months, as shown in Figure 1. Page 3 of 9 Figure 1— Monthly Savings for HPWH and DHP (a MW) 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 .9 .9 tJa.6 air PQ�\ �aJ >��¢ ,J \A ��4c �6 O�6 �6 6 peso PJ Q�� o`er � ffi DHP HPWH The annual energy efficiency savings from this prospective program would be 4.57 aMW, or over 40,000,000 kWh. This is enough to power over 2600 new homes (assuming 15,000 kWh per home). Another estimate of conservation potential that assumes in the near term 4,000 DHP's and 2,000 HPHW's can be installed, in addition to some commercial and residential lighting. The distribution CHWM is 33.423 aMW, which is the balance after taking Industrial Transmission customer's CHWM from the total amount allocated to the City. Table 5 shows the results of these slightly modified estimates along with the corresponding CHWM offset. Table 5 pact, of Energy'Effic en y on CHWM Offset Current Headroom Distro Efficiency Res DHP Res HPWH Comm & Res Lighting TOTAL System Analysis kWh 992,113 8,485,840 14,150,869 3,254,341 1,185, 078 28,068,240 aMW 1.133 0.969 1.615 0.372 0.135 4.223 CHWM Offset ( %) 3.4% 2.9% 4.8% 1.1% 0.4% 12.6% The following data sources were used to assess the City's demand and energy use profile in relation to the City's power supply expenses: • System Hourly Loads (10/1/2011 — 5/31/2013) a. Meter 152 - Out Page 4 of 9 b. Meter 251- Out c. Meter 1564 - In d. Meter 459 - Out e. Meter 158 - In • BPA Power and Transmission Bills (10/1/2011 — 5/31/2013) Figure 2 shows the City's 2012 high water mark (HWM) and the system load with and without the residential programs discussed above. An additional 9% of headroom under the TIER 1 pricing would be available to the City for new load. 100.40 Figure 2 Port Angeles potential additional haadroom from savings (aMW) 90-00 moo 0000 February Mare ApN Mry F<ttmatet! }.5 aMW adriAirn ad t ,0000 0' gxIrwi '50 Soot 3e3y aig..st Sty00' ber Octaber novembcr OtcyTber • Aditrnal HIMOCT bang 4000,0,55 -0Wt0 -C,tv System [MP & •WWB Sat.n35, at0W -COY System Wad, a0W Figure 3 illustrates the City's hourly system loads in 2012. In addition the monthly customer system peak (CSP) and the sum of the City's average heavy load hour energy (aHLH) and contract demand quantity (CDQ) are shown. As noted in February, the difference between the CSP and the sum of the aHLH and CDQ is the demand billing determinant on the BPA power bill. The resulting demand charge is shown. Based on this chart, in the month of February there were just two occasions that the City's demand exceeded the sum of the aHLH and CDQ. If the City was able to target those periods, a reduction of nearly $55,000 could be achieved in the single month. Figure 4 shows February in more detail. In 2012, the City's demand exceeded the sum of the aHLH and CDQ a total of 25 hours or 0.28 percent of the year. Page 5 of 9 Figure 3 2012 City Hourly Loads with CSP and CDQ 111111111111111 1 This chart shows a single year only, and may not be predictive of the City's future load. Page 6 of 9 Figure 4 February 2012 Hourly Loads with Results BPA Demand Charge Demand Charge ($) $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- ti� ti� ti� titi titi titi titi ti� titi (-N o oh\ �\ c' titi\ tip\ ti<,\ tip\ \,c1' ,oti\ ,r))\ ,,\ ,�3\ oti\ oti\ oti\ oti\ 6V oti\ oti\ oti\ oti\ oti\ oti\ oti\ oti\ oti\ oti\ 140,000 Feb -12 120,000 100,000 - 80,000 E 60,000 cu - 40,000 - 20,000 0 Demand Charge ($) System Demand, kW Sum of CDQ and aHLH -CSP Demand tn VI Figures 5 and 6 illustrate the City's heavy load hour (HLH) and light load hour (LLH) loads against the HLH and LLH load shaping charges or credits incurred by the City. Page 7 of 9 Figure 5 2012 Hourly Loads (HLH) and Monthly Shaping Charges $000,1105 p' 50500 0010 010501011 Load ill., Ow, ESE -10085000001. 0,0 Page 8 of 9 Figure 6 F2012 Hourly Loads (LLH) and Monthly Shaping Charges y Page 9 of 9 Customer Load Profile Tool EES is also working on a customer analysis tool that will take a single customer's annual hourly load information and show the impact of installing either a HPWH or a ductless HP, or both units, and quantify the customer's energy savings. Similar to the system level analysis, the demand charges from the BPA bills will be shown to illustrate to the customer the periods that induce higher power costs. Figure 7 shows an illustration of possible results from this tool. 8,000 7,000 . 6,000 • 5,000 3 L Y 4,000 d W u 3,000 2,000 Figure 7 SAMPLE CUSTOMER Potential Energy Savings by Month for Residential Customer $54,431 System Load Shape, kWh (NOT TO SCALE) Customer Load Shape, kWh $23,749 1,000 --$ Jan -12 Customer Load Shape with All Savings, kWh $2.538 Feb -12 Mar -12 Apr -12 May -12 Jun -12 Jul -12 =City System Demand Costs($) — Customer Load, kWh — Customer Load with DHP savings — Customer Load with All Savings Aug -12 Sep -12 Oct -12 — Customer Load with HPWH savings — System Load, kWh - NOT TO SCALE Nov -12 Dec -12 Annual Bill Estimate Current Equipment New Equipment w/ HPWH w/ DHP w/ All Measures Customer Cost (from Basic Charge) Energy Cost $189 $1,109 $189 $1,006 $189 $867 $189 $763 TOTAL BILL $1,298 $1,195 $1,056 $952 Estimated Annual Savings $103 $242 $346 City of Port Angeles Joint City Council /Utility Advisory Committee Meeting Cost of Service Discussion r ..4.4,...:, • . . , ..... ..1. . .--..,.. ii- .., ,.,: ., ; , . ... .. ... z . . . . .:::: , el ..•.:.., .., . -. ... ....:: ...• N. .• • .,...... . ... .. .. ... . ... . , , . .. . a' .....,,, A . II,Nt . . . ........ .... , ‘,...... .........., .... . .......:..,.... ..... . .. ,... .,.... .... , ,. . ... Notice to proceed May 8 Data received Analysis initiated Incorporate input from Council/UAC Begin internal review of draft results V' Solid Waste transfer station & collection v/ Water/sewer v' Electric/telecommunications •::}FCS GROUP Solutions-Ork.nted Consulting Page 2 V Validate & forecast revenue •-v!'. Forecast •O&M• • *Taxes I v/„. Debt service,' (existing/new) Capital Facility Plan.' • Identify funding V: :Annual depreciation funding !,( Evaluate revenue sufficiency Annual rate strategy ■/ Monitor Reserve Levels • • • • • .1 • • • FCS GROUP Colutions-Orienled Conculting ✓ Review functionalization, classification & allocation ✓ Industry standard methodologies ■' City specific customer/ operating & planning data • Identifies cost to serve each customer class Page 3 Final rates developed for each utility should align with the City's policies and priorities and advance the objectives identified for each utility �� Discuss the issues, priorities and objectives that should be considered during the rate study process Identify questions that need to be answered by the rate study • S <u 5 -Gr RntOUP �ttlttng Page 4 Reserve levels targets Level of depreciation funding 2 Level of debt funding One-time rate increases or small annual increases FJ Use of cash reserves to minimize rate impacts El Customer class cost of service adjustments - one time or phase-in Meet fiscal targets year one or by end of planning period Others • FCS GROUP solutions-OL,nted Consulbrig gil Page 5 Solid waste and yard waste minimum fees Identify co-composting costs Others ,7 FCS GROUP Con,ultIng Page 6 Ei Identify cost for curbside collection of recyclables Evaluate changes to frequency of pickups for recycling Yard waste cost of service/adequacy of rates Others 11# FCS GROUP Solulions-Orwrited Consulting Page 7 t� :s • «. _ :: ''y o\ -:•. \\ate vim'..` r'" z \ - \\ 4•^' „ tM �. '�.,,:, fir /Vfl ��` i S z .sec =': � "'' x � � � a is \ ••� r y �. � Fixed and variable costs /revenue alignment Water efficiency rule funding Rate Design ✓Conservation rate effectiveness (rate blocks) Evaluate fixed charge to limit revenue risk Others FCS GROUP ioluttons- (lricntc`ei Consulting Page 8 Fixed and variable costs/revenue alignment Rate Design V Commodity (volume) based rate structure Evaluate fixed charge to limit revenue risk Others sf( FCS CROUP • olutions-Oncnted Comulong Page 9 %.. iv ii, , , ..,wri 0:-- rififfies:;. .ec .1v..e.0 e,, .. .. _ , ,,,,,,,,::_:],:t:,,,/;‘,...,..„,,,, . . .... ... , ‘ : . ,,,,,,.., .*:,,x,,:, ,..,.. . ....... ,,,, . :,.... ....,. .4,, ., ... .. , Fixed and variable costs/revenue alignment Rate Design V Commodity (volume) based rate structure Evaluate fixed charge to limit revenue risk Others sf( FCS CROUP • olutions-Oncnted Comulong Page 9 Fixed and variable cost review Utility discounts Rate design v7 Alternative rate design considerations (higher base fee with energy included) New or expanded loads 3 Others .:.:>FCS GROUP - Solu Oric, mod Cons' Itrng Page 10 IL Incorporate discussion and input into analyses El Complete draft analyses (July) Finalize analyses (August) • FCS GROUP Page 11 Solutions-Omnivd CorNtilting •