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HomeMy WebLinkAboutAgenda Packet 01/12/2010UTILITY ADVISORY COMMITTEE Jack Pittis Conference Room Port Angeles, WA 98362 January 12, 2010 I. Call To Order II. Roll Call III. Nomination and Election of Officers (Chairman and Vice Chairman) IV. Approval of Minutes for December 8, 2009 V. Late Items VI. Discussion Items A. Electric Utility Service Fee Ordinance Amendments B. Lighting and Conservation Fund Ordinance Amendments C. Energy Northwest Interlocal Agreement Modification No. 1 for the Morse Creek Hydroelectric Project D. Consultant Agreement Amendment No. 1 for Advanced Metering Infrastructure Project and Demand Response Grant Program VII. Information Only Items A. Industrial Water Metering (Verbal Report Only) B. Washington State Hydroelectric Generation Facility Legislation (Verbal Report Only) VIII. Next Meeting Date: February 9, 2010 IX. Adjournment N \uac \final \01122010 PRINT NAME ORGANIZATION a� C P DiA7 4 N: \PWKS \LIGHT \CONS \CATE \SIGNUP wpd UTILITY ADVISORY COMMITTEE GUEST SIGN UP SHEET Members Absent: Staff Present: Others Present: III. Approval Of Minutes IV. Late Items: None V. Discussion Items: Utility Advisory Committee Public Works Conference Room Port Angeles, WA 98362 December 8, 2009 3:00 p.m. L Call To Order Vice Chairman Rogers called the meeting to order at 3:00 p.m. II. Roll Call Councilmembers Present: Vice Chairman Rogers, Betsy Wharton, Dan Di Guilio, Paul Elliott Orville Campbell Kent Myers, Bill Bloor, Glenn Cutler, Yvonne Ziomkowski, Larry Dunbar, Phil Lusk, Cate Rinehart Peter Duncan TEFnET Shirley Nixon Citizen Vice Chairman Rogers asked if there were any corrections to the minutes of November 10, 2009. Councilmember Wharton moved to approve the minutes. Councilmember Di Guilio seconded the motion, which carried unanimously. A. Dry Creek Water Association Special Service Agreement Glenn Cutler, Director of Public Works and Utilities, advised that four years ago the City had entered into an Interagency Water facilities Agreement with the Dry Creek Water Association and explained that due to service area changes during annexations modifications needed to be made. There was a brief discussion. Councilmember Di Guilio moved to recommend City Council approve and authorize the Mayor to sign a Special Service Agreement with the Dry Creek Water Association. Councilmember Wharton seconded the motion, which carried unanimously. B. Public Utilities Regulatory Policy Act Mandatory Standards Determination Phil Lusk, Power Resources Manager, pointed out that the City was required by the Energy Independence Security Act of 2007 to consider four new Electric Utility standards embodied in the standards. There was a brief discussion. Councilmember Wharton moved to recommend City Council pass a resolution including added language for clarity regarding the Public Utility Regulatory Policy Act standards. Councilmember Di Guilio seconded the motion, which carried unanimously. C. Interagency Agreement For Performance -Based Contracting Amendment No. 2 Phil Lusk, Power Resources Manager, acknowledged that the City was a participant in a State sponsored performance -based contracting program to reduce utility costs at the City Hall Complex. A grant was received which in combination with the Conservation Fund will fund the project. A discussion followed. Councilmember Wharton moved to recommend City Council to: 1) authorize the Mayor to accept the Washington State Department of Commerce grant award in the amount of $135,000 for the City Hall Complex Energy Conservation Improvements project, and 2) Authorize the Public Works and Utilities Director to sign Amendment No. 2 (including a funding commitment) to the existing Interagency Agreement with the State of Washington to proceed with the a City Hall Complex Energy Conservation Improvements project in an amount not to exceed $435,000. Paul Elliott seconded the motion, which carried unanimously. D. Enron Settlement Agreement Phil Lusk, Power Resources Manager, noted that the City had been offered the opportunity to participate in the Attorney General's Enron energy restitution program which assists low- income energy or weatherization programs. A discussion followed. Councilmember Di Guilio moved to recommend City Council authorize the City Manager to sign the Enron Settlement Agreement with the State of Washington. Councilmember Wharton seconded the motion, which carried unanimously. E. Clallam County Shared Resource Conservation Manager Program Phil Lusk, Power Resources Manager, explained that this is a new program created by the Washington State Department of Commerce to assist cities and counties in establishing and implementing long -term energy efficiency strategies. There was a lengthy discussion. Councilmember Wharton moved to recommend City Council support Clallam County's initial proposal under the Shared Resource Conservation Manager Program. Paul Elliott seconded the motion, which carried unanimously. VI. Information Only Items F. Department Of Health Agreed Order Information only. No discussion or action taken. G. Network Needs Assessment And Public Safety Considerations Update Information only. No discussion or action taken. H. Councilmember Rogers And Councilmember Wharton Appreciation Glenn Cutler, Director of Public Works and Utilities noted that this was the last meeting of the year and thanked the outgoing councilmembers for their efforts on major issues, dedication, and challenges to staff. A cake and coffee was enjoyed in appreciation for this service. VII. Next Meeting Date: January 12, 2010 VIII. Adjournment: 4:55 p.m. Karen Rogers, Vice -Chair Cate Rinehart, Admin. Spec. N \pwks \light \cons \cate \dec8meet PORT NGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: January 12, 2010 To: Utility Advisory Committee From: Terry Dahlquist, P.E., Electrical Engineering Manager Subject: Electric Utility Service Fee Ordinance Amendments Summary: The Port Angeles Municipal Code does not adequately address procedures for refunding electric service fees on cancelled projects. Revisions to Chapters 3.70 and 13.12 are being prepared to ensure most City expenses are recovered on cancelled projects. Recommendation: Forward a favorable recommendation to City Council to conduct a first reading of the proposed amendments to Chapters 3.70 and 13.12 of the Port Angeles Municipal Code and continue the matter to the February 2, 2010 Council Meeting. Background /Analysis: During the last six months, two proposed subdivisions within the City have been cancelled due to market conditions. No construction work had been performed on the sites. The developers requested and received City refunds totaling over $50,000 for electric service extension costs they had initially paid according to the Port Angeles Municipal Code (PAMC). The City spent an estimated $25,000 in design time and material purchasing in preparation for these subdivisions. These costs are normally recovered through rates and transformer fees later in a project when individual homes are constructed. If a project is cancelled, there is no opportunity for the City to recover those costs. The City Attorney determined that the City has no authority to withhold from a refund any costs other than those specifically billed for under the current Chapter 13.12 of the PAMC. It is proposed to amend Chapters 3.70 and 13.12 of the PAMC to include a $250 cancellation fee per residential lot for projects that are cancelled by the developer prior to completion. The intention is not to increase initial fees required of developers, but to recover most of the City's expenses if a project is not completed. The cancellation fee would be withheld from any potential City refund. Staff recommends that the Utility Advisory Committee forward a favorable recommendation to City Council to conduct a first reading of the proposed amendments to Chapters 3.70 and 13.12 of the Port Angeles Municipal Code and continue the matter to the February 2, 2010 Council Meeting. N \UAC\Final\Electric Utility Service Fee Ordinance Amendments doc Chapter 13.12 Sections: 13.12.010 13.12.020 13.12.021 13.12.025 13.12.030 13.12.040 13.12.041 13.12.042 13.12.043 13.12.060 13.12.071 13.12.072 13.12.073 13.12.080 13.12.100 13.12.110 ELECTRICITY SERVICES AND CHARGES General Provisions Applicable to All Service. Electric Rate. Point of Delivery. °RAPT Rate Class Assignment. Schedule R -03 Residential Service. Schedule GS -03 General Service. Schedule GD -03 General Service Demand. Schedule NP -03 Nonprofit Tax Deductible. Schedule GD -04 General Service Demand Primary Metered. Schedule PS -03 Primary Service. Schedule IT -03 Industrial Transmission. Schedule L -03 Lighting. Schedule MW -03 Municipal Water Pumping. Contract Sales and Purchases. Electrical Work Permits and Fees. Contract and Administration Charge. 13.12.010 General Provisions Applicable to All Services. A. Any single motor of over ten horsepower, single phase; any single motor of over twenty horsepower, polyphase; any single electric load over fifty kVA; and welders and x -ray equipment shall not be placed in service without prior approval from the Public Works and Utilities Department. The Public Works and Utilities Department may require a customer to install reduced voltage motor starters or other mitigation if operation of customer equipment may interfere with the quality of service to other customers. B. When a request for service requires an extension, change, or re- arrangement of distribution facilities to serve new loads or customers, the Public Works and Utilities Department will determine the amount of service extension costs, if any, to be paid by the customer prior to actual construction. Non residential service extension costs shall include all design and construction labor, material, overhead, taxes, and transformer costs. Residential service extension costs do not include transformer material costs which are charged at the time of home construction according to Section 3.70.105, paragraphs (A) or (B). C. If a request for non residential service is canceled in writing after the service extension costs determined in Paragraph B above have been paid to the Public Works and Utilities Department, a refund may be issued to the original payer, less all service extension costs incurred by the City prior to cancellation. D. If a request for residential service is canceled in writing after the service extension costs determined in Paragraph B above have been paid, a refund may be issued to the original payer, less any actual construction costs incurred plus the cancellation fees in accordance with PAMC 3.70.105.J. E. It shall be the customer's responsibility to provide and clear at least a twenty -foot wide access to within seventy -five one hundred fifty feet of the metering point. Customer shall be responsible for all vegetation management on their property as required to maintain minimum safety clearances to overhead power conductors. F. All required rights -of -way and /or easements, properly executed, must be in the Public Works and Utilities Department's possession before construction is started. The Public Works and Utilities Department may require poles, wires and/or other equipment to be installed on his customer's property where necessary to serve overhead service drops of a -a greater greater than seventy -five feet from the Public Works and Utilities Department's supply facilities to the customer's meteEing delivery point, or as needed to maintain minimum safety clearances. G. GD. Metering shall be provided as specified by the Public Works and Utilities Department, which shall have the right to install such equipment as it finds necessary to determine any and all operating conditions. HE. The Public Works and Utilities Department may meter accounts in accordance with 13.12.041, 13.12.060 and 13.12.073 PAMC as it finds necessary for real power (kW), real and reactive power (kVAR), or apparent power (kVA). Billing demand may be based on real power, real and reactive power including power factor adjustment, or apparent power in lieu of power factor adjustment. Accounts only metered for real power shall be assumed to have unity power factor. The City shall have the right to refuse or discontinue service to any customer not maintaining a power factor of at least eighty percent. (Ord 3347 §2, 1/1/2009; Ord. 3271§1, 2/08/2007; Ord. 3098 §1 (part), 11/1/2001; Ord. 2417 §1, 12/1/1986; Ord. 2369 §2, 1/3/1986; Ord. 2137 §1, 5/15/1981; Ord. 2054 §1, 1/1/1980) 3.70.095 3.70.105 3.70.095 Fire Department Fees Medic I. The following rates are established for ambulance services performed by the City's Medic I Program: A. Medic I transports that involve advanced life support (ALS) services requiring either the administration of at least three different medications or the provision of a least one ALS procedure as identified as ALS -2 in medicare's current ambulance fee schedule. 1. Base Charge $650.00 2. Disposable equipment charge 33.00 3. Mileage 13.00 per mile B. Medic I transports that involve advanced life support services not covered by Section A above: 1. Base Charge $600.00 2. Disposable Equipment Charge 33.00 3. Mileage 13.00 per mile C. Medic I transports that involve only basic life support services: 1. Base Charge $450.00 2. Disposable Equipment Charge 33.00 3. Mileage 13.00 per mile D. Paramedic intercept service charge $600.00 E. Advanced Life Support Services, no transport $600.00 (Ord. 3372, 8/14/2009; Ord. 3268, 1/12/2007; Ord. 3221 §1, 11/11/2005; Ord. 3170, 10/1/2004; Ord. 3143 §2 (part), 7/25/2003) 3.70.100 Light Utility Inspection Review Fees A. The fee for inspection of the installation, alteration, extension, and repair of electrical winng, matenals, appliances, apparatus, devices, and equipment of services and feeders shall be as set forth in the current edition of the State of Washington Department of Labor and Industries fee schedule as adopted in WAC 296 -46 -910 as amended. B. The fee for special permits issued pursuant to PAMC 14.05.180E shall be $35.00. (Ord. 3177 §1 (part), 1/01/2005; Ord. 3034 §1 (part), 11/26/1999; Ord. 2932 §8 (part), 10/11/1996) 3.70 105 Light Utility Service Fees. The following service charges shall apply to service performed by the Light Utility: A. Connection of previously unserved residential lot with underground electric service $713.00 B. Connection of previously unserved residential lot with overhead electric service $410.00 C. Installation and removal of a temporary service $145.00 D. Service calls on customer's equipment $145.00 E. Service calls on customer's equipment after regular working hours $250.00 F. Labor billing rate for line crew personnel per hour $55.00 plus $27.00 billing charge Over time per hour $85.00 plus $27.00 billing charge. G. Contract and administration charge 1. Projects less than 500 kw $405.00 2. Projects 500 kw and larger $1,350.00 H. Paragraphs A B above apply to all lots established after January 1, 2005, and to lots established prior to January 1, 2000, with no prior history of electric service. I. Installation of a single or three phase smart meter. $375.00 J. Cancellation of residential service extension request after payment for an extension or rearrangement of distribution facilities $250.00/Lot (Ord. 3271 §2, 2/08/2007; Ord 3261 §1, 1/1/2007; Ord. 3177 §1 (part), 1/01/2005; Ord. 3169, 10/1/2004; Ord. 3034 §l (part), 11/26/1999; Ord. 2970, 10/17/1997; Ord. 2932 §8 (part), 10/11/1996) pORTANGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: January 12, 2010 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Lighting and Conservation Funds Ordinance Amendments Summary: The City is planning to increase its energy conservation programs using Electric Utility funds. There are a few clarifications that should be made by to the Lighting and Conservation Fund ordinances. Recommendation: Forward a favorable recommendation to City Council to conduct a first reading of the proposed amendments to Chapter 3 of the Port Angeles Municipal Code and continue the matter to the February 2, 2010 Council Meeting. Background /Analysis: As a result of the 2009 Northwest Public Power Association's workshop for Utility Advisory Committee and City Council members, the City is planning to increase its energy conservation programs using Electric Utility funds (in addition to funding provided by the Bonneville Power Administration). The 2010 City budget includes $300,000 of Electric Utility funds to supplement Bonneville Power Administration (BPA) funds to acquire electric energy through the installation of cost effective conservation measures, renewable energy systems, and distributed generation resources in order to minimize or eliminate future BPA Tier 2 power supply purchases. There are a few clarifications that should be made to the Lighting and Conservation Fund ordinances including: Acknowledging the Electric Utility's legal authority to fund conservation measures, renewable energy systems, and distributed generation resources to acquire electric energy pursuant to R.C.W. 35.92.050, and Authorizing the Public Works and Utilities Director to administer the program, including the determination of cost effective activities, and to enter into agreements with Electric Utility customers to fund cost effective activities within the City. Staff recommends that the Utility Advisory Committee forward a favorable recommendation to City Council to conduct a first reading of the proposed amendments to Chapter 3 of the Port Angeles Municipal Code and continue the matter to the February 2, 2010 Council Meeting. N \UAC \Final \Conservation Fund Ordinance Amendment doc ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, amending the Lighting Fund and the Conservation Fund, and Chapter 3 of the Port Angeles Municipal Code. WHEREAS, the City Council does hereby find that provisions of the Lighting Fund and Conservation Fund need to be updated and clarified; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ANGELES do hereby ordain as follows: Section 1. Ordinance 374 and Chapter 3, Revenue and Finance, of the Port Angeles Municipal Code are hereby amended by amending PAMC 3.24 to read as follows: LIGIITINC ELECTRIC FUND Sections: 3.24.010 Created. 3.24.020 Receipts and Expenditures. 3.24.030 W Disbursements. 3.24.040 S uiplu Administration of Fund. 1 3.24.010 Created. There is created a fund known and designated as the "Lightmg Electric Fund." 3.24.020 Receipts and Expenditures. All money received for electric power and light from all sources of the electnc irghtmg plant of the City shall be paid into the "Lighting Electric Fund." All expenditures incurred in running and maintaining the li electric plant of the City and for all extensions and necessary outlays in connection therewith shall be paid out of the "Li Electric Fund" upon wairants disbursements issued against the same. 3.24.030 Waiiaii tsDisbursements. Wail an ts againstDisbursements out of the "Li Electric Fund" shall be made upon reauest of the City Manager or Director of Public Works and Utilities for all current expenses and for all expenses for extensions and maintaining and for improvements shall be paid as current expenses in the order of their issue. Ot CXtCriSlOuS an v Ci 'aiming vi cUifCllt 12wwoaiy 1u1piOVCi o f t l iglit tug p lant au t of all laW fnfwaiiaul c aiid v an jug ct,liiv 1181it plant -IJI tlk OIJL of thti 3.24.040 Administration of Fund. The Director of Finance is charged with the administration of said fund. Section 2. Ordinance 3311 and Chapter 3, Revenue and Finance, of the Port Angeles Municipal Code are hereby amended by amending PAMC 3.25 to read as follows: CONSERVATION AND RENEWABLE ENERGY PROGRAM FUND Sections: 3.25.010 Created. 3.25.020 Receipts and Expenditures. 3.25.026 030 Disbursements. 3.25.030 040 Administration of Funds. 3.25.010 Lstabli Created. There is hereby established created in the City treasury a special revolving fund known and designated as the "Conservation and Renewable Energy Program Ffund." 3.25.020 Receipts and Expenditures. The Conservation and Renewable Energy Program Fund shall be used for the fiscal administration and accounting of monies received or appropriated by the City Council for funding the acauisition of energy by the installation of energy conservation measures. renewable energy systems. and distributed generation resources. which funding is in addition to the funding received by the City from the Bonneville Power Administration for such purposes. These acauisitions are made pursuant to RCW 35.92.050. Expenditures incurred by the City. in addition to the funding provided by the Bonneville Power Administration. for the acauisition of energy by the installation of energy conservation measures, renewable energy systems. and distributed generation resources shall be paid out of the Conservation and Renewable Energy Program Fund." Cvu ii�il. 2 1 I 1 1 3.25.926 030 Disbursements. Disbursements shall be made out of =et the "Conservation and Renewable Enemy Program Fund" upon the request of the City Manager or Director of Public Works and Utilities for payment, reimbursement or guarantee of costs or expenses for the acauisition of energy by the installation of conservation measures. renewable energy systems. and distributed generation resources within the service area of the City Electric Utility. The Director of Public Works and Utilities. or his designee. is authorized to enter into contracts and agreement with City Electric Utility customers to fund the acauisition of energy by installation of conservation measures. renewable energv systems. and distributed generation resources the Director of Public Works and Utilities determines to be cost effective. Cost- effective shall have the meanine given such term in RCW 80.52.030(7)4Lugi Y u�di 3.25.939 040 Administration of Funds. The Director of Finance is charged with the administration of said fund. Section 3 Severabilitv. If any provisions of this Ordinance or its applications to any person or circumstances is held to be invalid, the remainder of the Ordinance or application of the provisions of the Ordinance to other persons or circumstances is not affected. Section 4 Effective Date. This ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum. This ordinance shall take effect five (5) days after passage and publication of an approved summary thereof consisting of the title. Section 5 Corrections. The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of the scrivener's /clerical errors, references, ordinance numbering, section/subsection numbers and any references thereto. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the day of January, 2010. MAYOR ATTEST: APPROVED AS TO FORM: Janessa Hurd, City Clerk William E. Bloor, City Attorney PUBLISHED: 2010 By Summary G \Lcgal_Backup\ ORDINANCES &RESOLUTIONS \ORDINANCES 2009 \47 Lighting Conservation Funds 122809 wpd December 29, 2009 3 u tno� �z J W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: January 12, 2010 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Energy Northwest Interlocal Agreement Modification No. 1 for the Morse Creek Hydroelectric Project Summary: Energy Northwest possesses expertise that can be used to prepare the plans required by the Federal Energy Regulatory Commission for the Morse Creek Hydroelectric Project. Recommendation: Forward a favorable recommendation to City Council to authorize the Mayor to sign Modification No. 1 to the Interlocal Agreement with Energy Northwest in an amount not to exceed $10,945, and authorize the City Manager to make minor modifications to the agreement, if necessary. Background /Analysis: On July 15, 2008, City Council approved a resolution to become a member of Energy Northwest. Energy Northwest has the authority to acquire, construct, operate and own plants, systems and other facilities for the generation and/or transmission of electric energy and power. The recent Federal Energy Regulatory Commission license and Department of Ecology 401 Water Quality Certification created additional unfunded mandates for Morse Creek Hydro including: 1. Spill Prevention Containment and Control plans (SPCC), which will include an on -site spill cleanup material inventory. 2. Stormwater Pollution Prevention plan (SWPPP). Energy Northwest possesses expertise that can be used to prepare the necessary plans for operation and maintenance of the Morse Creek Hydroelectric project. Sufficient funds for the project are available in the Morse Creek Contingency Replacement reserve. Staff recommends that the Utility Advisory Committee forward a favorable recommendation to City Council to authorize the Mayor to sign Modification No. 1 to the Interlocal Agreement with Energy Northwest in an amount not to exceed $10,945, and authorize the City Manager to make minor modifications to the agreement, if necessary. N \UAC \Final\Energy Northwest Interlocal Agreement Modification 1 doc pORTANGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: January 12, 2008 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Consultant Agreement Amendment No. 1 for Advanced Metering Infrastructure Project and Demand Response Grant Program Summary: Staff negotiated additional scope of work and pricing for consulting services in support of the Advanced Metering Infrastructure project and the Bonneville Power Administration Demand Response grant program. EES Consulting provides high quality professional services and their proposal was favorably below the anticipated cost for these types of projects. Recommendation: Forward a favorable recommendation to City Council to authorize the City Manager to 1) amend the consulting services agreement with EES Consulting in an additional amount not to exceed $24,900 to assist staff in preparing the Advanced Metering Infrastructure Project Request for Proposals and a proposal that would be submitted to the Bonneville Power Administration under their Demand Response Grant Program, and 2) make minor modifications to the agreement, if necessary. Background /Analysis: As background, the Electric and Water Utilities have postponed meter replacement. As a result, more than 60% of all City revenue meters are now greater than fifteen years old and well beyond their service life. Staff has monitored meter automation opportunities since 2006, which enhance efficiency and effectiveness and provide new customer service benefits. A staff prepared business case evaluation demonstrated that Advanced Metering Infrastructure (AMI) is economically beneficial compared to an investment in a legacy system. The AMI project is in the Capital Facilities Plan (CFP), was included in last year's cost of service studies, and $5,003,000 was included in the 2010 budget. A Request for Proposals (RFP) needs to be prepared by the City to procure the AMI system. The future Bonneville Power Administration (BPA) Power Sales Agreement includes a new wholesale Tiered Rate Methodology (TRM), which will be in effect beginning October 1, 2011. The TRM creates a need for AMI to fairly and equitably establish future retail electric rates. A retail TRM study will also be completed this year. Completion of the study will require involvement by the Utility Advisory Committee and City Council to consider alternatives on how to allocate Tier 1 and 2 wholesale power to customers, and options for retail rate designs. A Request for Qualifications is being prepared by staff to retain a consultant to conduct the study. N \UAC \Final \Consultant Agreement Amendment No 1 for AMI Project DR Grant Program doc 1 Utility Advisory Committee January 12, 2010 Consultant Agreement Amendment No 1 for AMI Project and DR Grant Program Staff previously provided presentations to the Utility Advisory Committee about the BPA Demand Response (DR) Grant Program. DR provides an opportunity to reduce wholesale peak demand costs. Wholesale peak demand rates are expected to increase from today's range of $1.30 -$2.30 per kilowatt to a rate range between $8.00- $10.00 per kilowatt under TRM. DR can easily be incorporated into an AMI system and typically includes rate incentives to customers to manage peak demand and to shift the time period when electricity is consumed. DR also offers benefits to both utilities and customers in the form of enhanced electric system reliability. BPA recently announced that later this month it will release its second annual Request for Proposals (RFP) to its customer utilities to conduct an additional two to four residential DR projects. Up to $1.5 million in BPA funding may be provided. The 2010 City budget includes a $500,000 DR project. BPA's DR program objectives are: 1) Integrate DR technologies with AMI systems in the residential sector; 2) Evaluate residential customer recruitment strategy, education and program participation persistence; 3) Quantify costs and impacts of leading DR technologies in the residential sector, and; 4) Evaluate cost effectiveness and value of DR in residential applications. Staff will return to the Utility Advisory Committee and City Council if BPA offers a grant to the City. Because of time constraints and the complexity and interrelationships of the AMI and DR projects, staff recommends that consulting services be obtained to prepare both the City's DR grant proposal to the BPA and its AMI RFP. As a result of their experience in working with the City on efforts in 2009 such as the Conservation Potential Assessment, Smart Grid Investment Grant application, and their current work on a regional DR evaluation for the Western Public Agencies Group, staff recommends that the services of the EES Consulting be retained for this effort. Staff and EES Consulting negotiated a $24,900 proposal for necessary services, which is favorably below the anticipated cost for these types of projects. Funding for the consulting services is proposed to be paid from the Electric Utility CFP budget. A summary of the proposed scope of work, schedule and not to exceed prices for services are provided below. A. Advanced Metering Infrastructure Request For Proposals 1 Completion by I Price Task 1 Prepare request for proposal Task 2 Administrative support to evaluate proposals and assist in March 31, 2010 $11,960 contract negotiation B. Demand Response Grant Program 1 Task 1 Prepare grant proposal 1 February 28, 2010 I 12,940 Total (A B) 1 $24,900 Staff requests that the Utility Advisory Committee forward a favorable recommendation to City Council to authorize the City Manager to 1) amend the consulting services agreement with EES Consulting in an additional amount not to exceed $24,900 to assist staff in preparing the Advanced Metering Infrastructure Project Request for Proposals and a proposal that would be submitted to the Bonneville Power Administration under their Demand Response Grant Program, and 2) make minor modifications to the agreement, if necessary.