HomeMy WebLinkAboutAgenda Packet 06/14/2011I. Call To Order
II. Roll Call
III. Approval Of Minutes For May 10, 2011
IV. Late Items
V. Discussion Items:
A. Nippon Paper Industries USA Co., Ltd, Power Sales Agreement Update
(verbal report only)
B. Puget Sound Clean Cities Coalition Electric Vehicle Infrastructure Grant
Acceptance
C. Advanced Metering Infrastructure System Agreement Change Order No. 1
D. Residential Solid Waste Collection Route Revisions
E. Bonneville Power Administration Residential Exchange Program
Settlement Agreement Ratification
F. Bonneville Power Administration Commercial and Industrial Demand
Response Grant Amendment No. 1
G. Professional Services Agreement Amendment No. 3 for Commercial and
Industrial Demand Response Project Evaluation
H. Bonneville Environmental Foundation Solar4R Schools Project Update
VI. Information Only Items:
A. Northwest Public Power Association Tier 2 Power Supply Workshop
Update (verbal report only)
B. Advanced Metering Infrastructure System Agreement Update (verbal
report only)
C. Eagles Easement (verbal report only)
VII. Next Meeting Date July 12, 2011
VIII. Adjournment
N. \uac \final \061411
Utility Advisory Committee
Jack Pittis Conference Room
Port Angeles, WA 98362
June 14, 2011 3:00 PM
AGENDA
I. Call To Order
Chairman Dan DiGuilio called the meeting to order at 3:00 p.m.
II. Roll Call
UAC Assigned
Councilmembers Present: Dan Di Guilio, Cherie Kidd, Brooke Nelson
Other Councilmembers
Present:
Other Councilmembers
Absent:
Utility Advisory
Committee Members
Present:
Utility Advisory
Committee Members
Absent:
Staff Present:
Others Present:
III. Approval Of Minutes
Chairman Dan DiGuilio asked if there were any corrections to the minutes of April 12, 2011
Committee Member Dean Reed moved to approve the minutes. Paul Elliot abstained due to
absence of the prior meeting. Brooke Nelson seconded the motion, which carried unanimously.
IV. Late Items:
None.
City Council Special Meeting/Utility Advisory Committee
Jack Pittis Conference Room
Port Angeles, WA 98362
May 10, 2011
3:00 p.m.
Max Mania, Patrick Downie
Don Perry, Brad Collins
Dean Reed, Paul Elliott
None
Kent Myers (3:15), Glenn Cutler, Bill Bloor, Mike Puntenney,
Yvonne Ziomkowski, Larry Dunbar, Randy Brackett, Terry
Gallagher, Ernie Klimek, Joey Currie, Terri Partch, and Kathryn
Neal.
Tom Callis PDN
Bob Martin Clallam County (3:40)
Terry Mundorf Western Public Agencies Group
1
V. Discussion Items:
A. Bonneville Power Administration Revised Residential Exchange Program
Settlement Agreement
Larry Dunbar, Deputy Director of Power Systems, introduced Terry Mundorf who reviewed the
revised settlement agreement that has been offered with the Bonneville Power Administration's
Residential Exchange Program. A lengthy discussion followed.
The Councilmembers and Utility Advisory Committee members confirmed they do not
support the Residential Exchange Program Settlement Agreement.
B. Combined Sewer Overflow Archaeological Pre Clearance Exploration,
Project No. 06 -01
Kathryn Neal, P.E., Engineering Manager, discussed over the pre construction and
archaeological sampling effort for excavation within the Combined Sewer Overflow project. A
brief discussion followed.
Dean Reed moved to recommend City Council award and authorize City Manager to sign a
contract for CSO Archaeological Pre Clearance Excavation, based on satisfactory bid
results. Brooke Nelson seconded the motion, which carried unanimously.
C. 4` Street Stormwater Project and Public Outreach
Terri Partch, P.E., Civil Engineer, Stormwater Program Manager, provided information on
alternate approaches to solving flooding issues, as well as storm water treatment. Public outreach
has been conducted in the problem areas, along Fourth Street between H Street and Evans
Avenue. A lengthy discussion followed.
Following a staff presentation, the Utility Advisory Committee provided guidance to staff
to complete the design using a hard pipe alternative.
D. Broadband Technology Opportunities Program Professional Services
Agreement
Terry Gallagher, Police Chief, reviewed the evaluated consultant's qualifications in support of
the Wireless Mobile Data System project. Columbia Telecommunications Corporation's
qualifications were ranked as the top selection and price for the scope of work was within the
anticipated price range.
Dean Reed moved to recommend City Council authorize the Mayor to sign an agreement
with Columbia Telecommunications Corporation in an amount not to exceed, $65,400, and
authorize City Manager to make minor modifications to the agreement, if necessary. Paul
Elliot seconded the motion, which carried unanimously.
2
E. Advance Metering Infrastructure System Radio Frequency Field Opt -Out
Larry Dunbar, Deputy Director of Power Systems, provided a brief description of a customer's
voiced concerns about the radio frequency fields emitted by smart meters and an opt -out program
from the wireless data transmission component, during last month's Town Hall meeting. A
lengthy discussion followed.
The Utility Advisory Committee provided guidance to staff not to pursue an opt -out
allowance.
F. Elwha Valley Road Project City /County roadway Easement and Quitclaim
Deed
Glenn A. Cutler, Director of Public Works Utilities, stated the Lower Elwha Klallam Tribe has
proposed to create a new access road to their reservation. Requirements and construction plans to
achieve the Elwha Valley Road, was brought to attention. There was an extensive discussion.
Brooke Nelson moved to recommend City Council to: 1) accept the quitclaim deed and 2)
grant an easement to Clallam County to alter, repair, improve, and maintain for county
road purposes, and authorize City Manager to make minor modifications to the easement,
if necessary. Cherie Kidd seconded the motion, which carried unanimously.
G. Simple Steps, Smart Savings Promotion Services Agreement Project Order
03.3
Joey Currie, Residential Energy Analyst, discussed an amendment offered to our Simple Steps,
Smart Savings Promotion Agreement to deliver energy- efficient compact fluorescent lamps and
showerheads to low income senior citizens and low- income disabled customers. All City
expenses would be eligible for reimbursement under the Bonneville Power Administration's
energy conservation program. A lengthy discussion followed.
Dean Reed moved to recommend City Council to authorize City Manager to sign Project
Order -03.3 to the Simple Steps, Smart Savings Promotion Services Agreement, and make
minor modifications to the agreement, if necessary. Paul Elliot seconded the motion, which
carried unanimously.
Information Only Items:
A. Benefit Dump Day Report
Information only. No action taken.
B. Advance Metering Infrastructure System Update (Verbal Report Only)
Information only. No action taken.
3
C. Utility Rate Studies Calendar
Information only. No action taken.
D. Tier 2 Power Supply /Strategic Planning Workshop
Information only. No action taken.
VI. Executive Session
Bill Bloor, City Attorney, announced the Executive session in accordance with RCW
42.30.110(1)(i) which was conducted as follows:
Session began: 4:15 P.M.
Session ended: 4:55 P.M.
VIII.
IX.
Dan DiGuilio, Mayor Janessa Hurd, City Clerk
Dan DiGuilio, Chair Utility Advisory ray, Adminfistrative S`
Committee
Next Meeting Dates:
June 7 -8, 2011 Tier 2 Power Supply /Strategic Planning Workshop
June 14, 2011 Regular Meeting
Adjournment: 5:05 p.m.
4
CITY OF
i 1 j M* T1
ORT s NGELES
W A S H I N G T O N U. S. A
Utility Advisory Committee Memo
Date: June 14, 2011
To: Utility Advisory Committee
From: Phil Lusk, Power Resources Manager
Subject: Puget Sound Clean Cities Coalition Electric Vehicle Infrastructure Grant
Summary: The City recently submitted a funding request under the Puget Sound Clean Cities
Coalition Electric Vehicle Infrastructure Grant program.
Recommendation: Forward a favorable recommendation to City Council to authorize the
City Manager to 1) sign the agreement with the Puget Sound Clean Cities Coalition for the
City's electric vehicle infrastructure project, 2) sign an interlocal agreement with the City of
Seattle for procurement of electric vehicle infrastructure, and 3) make minor modifications
to the agreement, if necessary.
Background /Analysis: A recent solicitation from the Puget Sound Clean Cities Coalition
sought proposals for alternative fuel technology vehicle acquisitions and infrastructure deployment
in Western Washington. Given our successful experiences with alternative fueled vehicles, the
City proposed to purchase four additional hybrid/electric vehicles. The City also proposed to
procure a total of 10 "Level 2" charging stations. Four of these charging stations would be placed
on City property, and two of these stations would be publicly available. A fifth station would be
placed at The Landing Mall, where it will be integrated into an existing commercial and industrial
demand response pilot project funded by the City and the Bonneville Power Administration. The
other five stations will be strategy placed in the City's downtown business corridor in cooperation
with locations being identified with the assistance of the city's business community.
The total funding sought from the Puget Sound Clean Cities program under this solicitation is
$131,780, with a total cost -share from of the City in the amount of $108,150. It is anticipated that
the procurement activities will be completed by mid August 2011, and the infrastructure
installations will be completed by mid October 2011. Staff recommends entering into an interlocal
agreement with the City of Seattle for procurement of electric vehicle infrastructure. A complete
sources and uses of funds statement is attached.
Although a formal award notice has not yet been received from the funding agency, staff is
requesting that the Utility Advisory Committee forward a favorable recommendation to City
Council because the grant has a very tight timeline, and the requirement that our proposed project
meet a funding dispersement deadline of November 30, 2011.
N \UAC \Final\Puget Sound Clean Cities Coalition Electric Vehicle Infrastructure Grant docx
Puget Sound Clean Cities Coalition Electric Vehicle Infrastructure Grant
June 14, 2011
Page 2
USES OF FUNDS STATEMENT
Level 2 Charging Stations (Turn -Key Installed)
Chevrolet 1500 Silverado, Two Mode Hybrid Crewcab
STATE CONTRACT ORDER CODE 2311 118 -042
Automobile, Midsize 4 Door Hatchback, 2011 Toyota Prius Hybrid
STATE CONTRACT ORDER CODE 2311 935 -001
Small Utility /Crossover Ford Escape Hybrid Electric Vehicle
STATE CONTRACT ORDER CODE 2312- 962 -001
TORO Workman MDE
STATE CONTRACT 08506
TOTALS
Puget Sound Clean Cities Recovery Act Grant Budget
UNITS COST /UNIT TOTAL COST City Cost -Share Funding Request
10 13,550 135,500 24,000 111,500
1 39,580 39,580 25,300 14,280
1 24,500 24,500 22,500 2,000
1 30,200 30,200 28,200 2,000
1 10,150 10.150 8 150 2 000
239,930 108,150 131,780
SOURCES OF FUNDS STATEMENT
Puget Sound Clean Cities 131,780
City of Port Angeles Electric Utility Fund 12,000
City of Port Angeles Economic Community Development Fund 12,000
City of Port Angeles Equipment Reserve Fund 84.150
TOTALS 239,930
Vehicle
Due
replacement
#42
1999 2011
Oldsmobile
Cutlass
In Kind Life cycle
Replacement
2011 Ford 12 year
Fusion 120,000
miles
Proposed
Replacement Life cycle
2011 Toyota 12 years
Prius 120,000
miles
MPG
15
MPG
26
MPG
49
Fuel cost calculated $4.00 per gallon
2011 Prius Cost Comparison
Purchase Cost
N/A
Purchase Cost
$16,650.00
City Purchase cost
$22,500.00
Vehicle purchase
price difference
$5,850.00
120,000 mile Fuel Disposition of
consumption vehicle
8000 gallons
Cost
$32,000.00
120,000 mile Fuel
consumption
4,615 gallons
$18,461.00
120,000 mile Fuel
consumption
2,449 gallons
Cost
$9,795.00
Fuel cost
difference
$8,666.00
Surplus
dispose
120,000.`irile
price savings
Prius
$2,816.00
2011 1/2t Hybrid Pickup Cost Comparison
Vehicle Life Cycle MPG City Purchase 120,000 Fuel Disposition of
Cost consumption vehicle
Reassign to
#4400 15,000 gallons Street Div.
15 8 $14,007 Cost Carpenter
$60,000 shop
Standard T MPG City Purchase 120,000 Fuel
Pickup Life Cycle Cost consumption
Replacement
%2 t Extended 15 15 $20,570 8000 gallons
cab 2wd Cost
$32,000
Proposed Life Cycle MPG City Purchase 120,000 Fuel
Replacement Cost consumption
GMC K1500 15 20 $25,300 6,000 gallons
1/2t crewcab Cost
hybrid pickup $24,000.00
Purchase Fuel Cost 120,000 mile
Difference Difference savings
$4,730 $8,000 GMC hybrid
$3,270
Fuel cost calculated $4.00 per gallon
Vehicle
#05425
2005 Pontiac
Vibe
#05426
2005 Pontiac
Vibe
Standard
Replacement
2011 Ford
Escape
Proposed
Replacement
2011 Ford
Escape Hybrid
2011 Ford Escape Cost Comparison
Life Cycle
12 years
120,000 miles
12 years
120,000 miles
Life Cycle
12 years
120,000 miles
Life Cycle
12 years
120,000 miles
Fuel cost calculated $4.00 per gallon
MPG
29
29
MPG
24.5
MPG
34
Purchase Cost
$16,808
$16,808
City Purchase
Cost
$18,020
City Purchase
Cost
$28,200
Purchase
Difference
$10,180
120,000 Fuel
Consumption
4,139 gallons
Cost
$16,552
4,139 gallons
Cost
$16,552
120,000 Fuel
consumption
4,898 gallons
Cost
$19,592
120,000 Fuel
Consumption
3,529 gallons
$14,117
Fuel Cost
Difference
$5,475
Present
mileage
92,764 miles
86,821 miles
120,000 mile
savings
Standard
Escape
$4,705
Vehicle Due
replacement
#79
1994 Cushman 2009
Scooter
Standard Life Cycle
Replacement
John Deere 10
Gator cart
Proposed Life Cycle
Replacement
Toro Workman 10
MDE cart
2011 Work Cart Cost Comparison
Purchase cost
$,9,733
Purchase Price
$8,000
Purchase Price
$8,150
Purchase cost
Difference
$150
7 year maintenance
cost
$1,829
Projected 7 year
maintenance cost
$1,100
Projected 7 year
maintenance cost
$600
Maintenance cost
difference
$500
Disposition of
vehicle
Surplus dispose
Life cycle cost
savings
$350
W A S H I N G T O N U.S.A.
Utility Advisory Committee Memo
Date: June 14, 2010
To: Utility Advisory Committee
From: Larry Dunbar, Deputy Director of Power Systems
Ernie Klimek, Water Superintendent
Subject: Advanced Metering Infrastructure System, Project WTO1 -2008, Change Order No. 1
Summary: Mueller Systems, LLC was awarded a contract to construct the advanced metering
infrastructure system for the Electric and Water Utilities. As part of the implementation plan,
Mueller Systems recommended the City consider the use fire rated meters for commercial
customers with fire suppression systems.
Recommendation: Forward a favorable recommendation to City Council to authorize the
City Manager to approve Change Order No. 1 to the contract with Mueller Systems, LLC for
the Advanced Metering Infrastructure System, Project WTO1 -2008, in the amount of
$78,550.00 for a total contract amount of $4,468,314.00, including applicable tax.
Background /Analysis: On December 21, 2010, City Council awarded a contract to construct
the Advanced Metering Infrastructure (AMI) system for the Electric and Water Utilities. As part of
the Implementation Plan that was completed in February, Mueller Systems, LLC recommended the
City consider the use fire rated meters for commercial customers with fire suppression systems.
The Fire Department supports the need for fire rated meters to ensure that the water flow and
pressure are not negatively affected when a fire suppression system is activated.
The work entailed in Change Order No. 1 includes changes to water meters for commercial
customers with fire suppression systems, including adjustments to the unit charges (all dollar
amounts in this memo include applicable tax). The contract is structured to pay based on the
actual installed quantities. Therefore, the final contract amount may vary up or down from the
authorized amount. It has been confirmed that sufficient funding for this Change Order No. 1 is
available within the existing budget for the AMI System. The negotiated amounts are fair and
reasonable. Below is a summary of the meters that need to be fire rated.
Meter Description
Commercial 3 Inch 1
1 Commercial 4 Inch 1
Commercial 6 Inch 1
Contract Unit
Charge
N \UAC \Final \AMI System Charge Order 1 doc
713.00 1
990.00
1,853.00 1
Change Order Estimated Change Order
Unit Charge Quantity
3,321.00 1 15
3,975.00 1 7
5,560.00 1 5 1
Totals 1 27 1
39,120.00
20,895.00
18,535.00
$78,550.00
Advanced Metering Infrastructure System, Project WTO1 -2008, Change Order No. 1
June 14, 2011
Page 2
Change Order No. 1 addresses fire rated meters and the cost is based on the estimated quantity, for
a total increase to the contract of $78,550.00. Staff evaluated the need for residential and
commercial fire meters and a memo is attached providing further information. In accordance with
the Implementation Plan the City has until June 30, 2011 to take action on this issue, which will
provide Mueller Systems adequate lead time to have the appropriate meters manufactured for the
City's project. A summary of the contract and change order is provided below.
Original Contract Change Orders (1)
Amount
1 $4,389,764.00 1 $78,550.00
Summary of Contract and Change Order
Final Cost Project Cost Variance
1 $4,468,314.00
1.8%
Staff recommends that the Utility Advisory Committee forwards a favorable recommendation to
City Council to authorize the City Manager to approve Change Order No. 1 to the contract with
Mueller Systems, LLC for the Advanced Metering Infrastructure System, Project WTO1 -2008, in
an amount of $78,550.00 for a total contract amount of $4,468,314.00, including applicable tax.
Attachment: Memo titled "Residential and Commercial Fire Meters AMI System Project"
Residential Fire Annlications
Commercial Fire Annlications
r
WASHINGTON, U.S.A.
PUBLIC WORKS UTILITIES DEPARTMENT
DATE: March 18, 2011
To: Mike Puntenney, City Engineer
From: Eric Walrath, Engineering Projects Supervisor
Ilia
Subject: Residential and Commercial Fire Meters AMI System Project
Mike,
Subsequent to our conversation regarding the subject water meters, I have discussed the matter with the Water
Superintendent, the Fire Marshal, and reviewed the specifications of the various meters. Below is the
summary of the information obtained and recommendations.
The standard water meter size for single family residences is 5/8 Single family residences with fire
suppression systems are served by a standard 3/4" meter and are billed at the 5/8" rate. The Fire Marshal has
no objection to the continuation of this practice. Based on my review of the meters currently specified for the
project, the Model MVR has identical flow characteristics to the residential fire meter for sizes 3/4" to 2
Both meters are built to meet the same standard; ANSI/AWWA C701, Class 1. Flow characteristics of the 400
Series IIS meter, also currently specified for the project, are virtually identical to both of the above meters.
The only substantive difference appears to be reduced accuracy as flows approach the maximum.
Based on the above, it is recommended that the currently specified 3/4" Model MVR or 3/4" 400 Series IIS be
deployed at locations with fire suppression systems currently served by a 3/4" meter. Cost and accuracy are
the determinant factors regarding selection for this application.
Most, if not all, commercial fire suppression systems which use large combined fire and domestic water
service are currently metered with compound meters. The currently specified Model MVR is suitable for
commercial applications up to 2 The MVR may be suitable for applications from 3" to 6 This would be a
function of the requirements of the particular system. Maximum flows for the FM3 Fire Service Meter,
available in sizes from 3" to 10 are approximately double the MVR.
Based on the above, it is recommended that the currently specified Model MVR be deployed for commercial
applications up to 2 3" to 6" Model MVR meters may be used where flow characteristics meet or exceed
those of the existing compound meter and meet or exceed the requirements of the existing fire suppression
system. Unit priceshould be obtained for 3 6" FM3 Fire Service Meters for deployment at locations where
the Model MVRs bt adequate for existing system requirements.
Reviewed: II Xl Date: 3/11/2,0 f I
J )ORT A NGELES
W A S H I N G T O N U.S.A.
Utility Advisory Committee Memo
Date: June 14, 2011
To: Utility Advisory Committee
From: Randall C. Brackett, P.E., Deputy Director of Operations
Subject: Residential Solid Waste Collection Route Revisions
Summary: The Solid Waste Division recently reviewed the residential collection routes. The
Friday route has 1,755 customers, which is 400 more than any of the other collection routes. To
improve service efficiencies, 340 customers along the Penn Hill and Harbor Crest area route will
be switched from Friday and collected on Tuesdays beginning July 19th. A customer notice and
transition period will be provided to assist affected customers.
Recommendation: For information only, no action requested.
Background /Analysis: Over the last 10 years, the west end of the City has grown and has
significantly increasing the number of customers serviced on Fridays. The Friday route now has
400 more customers than any other collection day. The Friday route is also split up between the
west and east ends of the City. Furthermore, traffic congestion, beginning on Fridays through
Sunday and especially over summer months has increased along Hwy 101, which is also a large
portion of the east end route.
The Tuesday route is the lightest with 1,107 residential customers. Fortunately, an easy
rebalancing of collection routes can be accomplished by changing the Penn Hill and Harbor Crest
area route from Friday to Tuesday. Waste Connections is pleased to participate with the City in
this revision. Their recycling and yard waste collection schedule mirrors the City routes, so they
will also see a smoothing across their collection service days.
The first day of revised service will be July 19, 2011. The only affected customers will be those in
the Penn Hill and Harbor Crest areas. Staff will notify customers of the change in the service day
beginning June 22. Staff will also place informational hangers on customer doors and mail a post
card regarding the transition. Contact numbers for Waste Connections and the Solid Waste
Division will be provided to all customers to help answer any questions. The City web site will
also have information regarding the transition and an updated map of the collection areas.
N. \UAC\Final \Waste Collection Route Change.docx
Waste Collection Route Change
June 14, 2011
Page 2
As a courtesy during the transition period, residents will not be charged if they request an extra
pick -up (return collection service). The transition period will extend until August 2, 2011. After
the two -week transition period, a $15 fee may be charged for return collection services. Residents
on extended vacation or leave from the area may be considered, on a case by case basis, by the
Solid Waste Supervisor for any further fee waivers.
By making this service day change from Friday to Tuesdays for 430 customers, the community
will benefit by more efficient service, less fuel consumption, successful service coordination with
our contract handler for recycling and yard debris collection and reduced traffic congestion on
Fridays. A summary of the current and revised collection routes is provided below, highlighting
the changes to Tuesdays and Fridays in bold.
CURRENT WASTE COLLECTION ROUTE SUMMARY
ROUTES
Current Mon Tues Wed Thurs Fri Sat
RESIDENTIAL 1,023 1,107 1,390 1,339 1,755
Garbage
Recycling 737 797 1,001 964 1,278 115
Yard Waste 327 354 445 428 636 115
REVISED WASTE COLLECTION ROUTE SUMMARY
ROUTES
Beginning July Mon Tues Wed Thurs Fri Sat
19th
RESIDENTIAL 1,023 1,447 1,390 1,339 1,415
Garbage
Recycling 737 1,041 1,001 964 1,019 115
Yard Waste 327 463 445 428 452 115
*Penn Hill Harbor Crest Friday service moved to Tuesday.
Services the City contracts with Waste Connections
pORTANGELES
W A S H I N G T O N U. S. A
Utility Advisory Committee Memo
Date: June 14, 2011
To: Utility Advisory Committee
From: Larry Dunbar, Deputy Director of Power Systems
Subject: Bonneville Power Administration Residential Exchange Program Settlement
Agreement Ratification
Summary: A settlement agreement regarding the Bonneville Power Administration's Residential
Exchange Program has been accepted by more than 75% of consumer owned utilities. Staff is
seeking guidance on whether the City should join an effort to influence congress not to ratify the
agreement.
Recommendation: Provide guidance to staff.
Background /Analysis: A settlement agreement regarding the Bonneville Power
Administration's Residential Exchange Program has been accepted by more than 75% of consumer
owned utilities.
Staff received the attached message from Grays Harbor County Public Utility District seeking our
interest in cosigning a letter to members of congress expressing concerns about the ratification of
the agreement.
Staff is seeking guidance on whether the City should join an effort to influence congress not to
ratify the agreement.
N \UAC\Final\BPA Revised Residential Exchange Program Settlement Agreement docx
Larry Dunbar
From: Liz Anderson [lnderson @ghpud org]
Sent: Monday, June 06, 2011 10:27 AM
To: Larry Dunbar
Subject: RE: Letter to the Delegation
Good morning Larry,
It would be great to have the City sign! I believe the timing will be okay. We are waiting
for another Board as well. I'd like to get the letter to the Delegation as soon as possible
but think we can wait until the 14th.
Thank you!
Liz Anderson
Original Message
From: Larry Dunbar rmailto:LdunbarOcitvofpa.usl
Sent: Friday, June 03, 2011 4:25 PM
To: Liz Anderson
Subject: RE: Letter to the Delegation
Liz, the earliest that we can get direction from our policymakers is June 14th, is that OK?
Original Message
From: Liz Anderson Finailto:landersonOehaud.orel
Sent: Wednesday, May 25, 2011 3:05 PM
To: mmichelOcanbvutilitv.ore; vmolamphvOcanbyutility.ore; Mark Burlingame; Larry Dunbar;
paul.roeersOkittitasoud.com; Mark Johnson; Pend Oreille BoB Geddes
Subject: FW: Letter to the Delegation
Importance: High
Good afternoon,
As you are aware, the deadline is approaching for consumer -owned utilities to decide whether
or not to sign the proposed REP Settlement, part two. Grays Harbor PUD voted to reject the
agreement and drafted the attached letter to members of the Northwest Delegation expressing
our concerns about possible ratification should the 75% approval threshold be met.
We are inviting representatives of other utilities who share our concerns to add their
signatures to the letter in hopes that a unified message will resonate with lawmakers as they
consider possible new legislation. You are receiving this request because your utility
decided not to sign the last Settlement agreement.
We are hoping to gather signatures by EOB June 3, 2011. If your utility would like to sign,
please send me an email along with a copy of the electronic signature(s) to be added. I will
be happy to format the signatures so they appear on one page. If you are aware of other
utilities that may be interested in signing, please feel free to forward this information. If
you are interested in signing but cannot provide a signature prior to June 3, just let me
know and we will see what we can do to accommodate you. We would like to get as many
signatures as possible but understand that the Memorial Day holiday may make it a bit
challenging to get everyone's signature in by the end of next week.
Thank you very much for your consideration. We hope to hear from you soon!
1
June 3, 2011
Dear Members of Congress:
We are writing on behalf of the ratepayers we represent to urge you to not take any
action to pass federal legislation that would authorize the Residential Exchange
Program Settlement Agreement (REP Settlement) notwithstanding provisions of
existing law. Congressional ratification of the REP Settlement would require
members of Congress to commit ratepayers across the region to 17 years of REP
payment obligations whether or not their locally elected utility boards agreed to the
terms of the REP Settlement.
We are not opposed to a settlement, but do not want to be committed by the actions
of other utilities to something we do not find acceptable. We respect the rights of
other public utility boards to waive their rights and commit their ratepayers to the
terms of the REP Settlement. However, we strongly oppose any attempt by some
public utility boards to eliminate the rate protections established under the
Northwest Power Act for their fellow public utility boards that do not agree to the
settlement terms.
Section 8 of the proposed REP Settlement obligates signers to seek new federal
legislation that would in essence substitute the provisions of the REP Settlement for
the rate protections contained in the existing law. This new legislation would do so
by immunizing the REP Settlement from judicial review. We are opposed to this
because it would take away the rights of non signers to the rate protections
contained in the Northwest Power Act rate protections that they seek to retain for
their ratepayers. Further, it would take away the rights of those utilities who do not
sign the REP Settlement to continue to pursue their legal claims.
There is no need for legislative language to implement the terms of the REP
Settlement. Utilities who wish to abide by the REP Settlement terms can do so
without federal legislation. BPA and other settlement proponents have stated that
the REP Settlement is fully functional in the absence of federal legislative action.
As publicly owned utilities, the decision whether or not to waive our statutory rights
is a matter that should be decided by local governing boards that are accountable to
the ratepayers in our community. Whether or not to sign the REP Settlement that
waives statutory rights and obligates ratepayers to 17 years of payments is a
decision each public utility board needs to make for its own community. It is not a
decision that should be made for us by elected officials of other utilities outside of
our service area who do not live, work and pay power bills in our community.
We would be happy to discuss with you the issues that the REP Settlement poses,
and answer any question you have about our community's position on this
important issue. We thank you for your attention to the power issues at stake in the
Northwest and appreciate your leadership on behalf of Northwest ratepayers.
PORTANGELES
W A S H I N G T O N U.S.A.
Utility Advisory Committee Memo
Date: June 14, 2011
To: Utility Advisory Committee
From: Phil Lusk, Power Resources Manager
Subject: Bonneville Power Administration Commercial Industrial Demand Response Grant
Amendment No. 1
Summary: The City is participating in a Commercial and Industrial Demand Response Pilot
Project with the financial support of the Bonneville Power Administration. Due to an addition to
the scope of work, Amendment No.1 to the current Agreement is necessary.
Recommendation: Forward a favorable recommendation to City Council to authorize the
City Manager to sign Amendment No.1 to the agreement with the Bonneville Power
Administration for the City's Commercial and Industrial Demand Response Pilot Project,
and make minor modifications to the agreement, if necessary.
Background /Analysis: Earlier this year, the Utility Advisory Committee supported and City
Council approved the acceptance of an award from the Bonneville Power Administration (BPA) to
participate in a Commercial and Industrial (C &I) Demand Response (DR) Pilot Project. The City
submitted a proposal, and the BPA issued a formal notification of its intent to award an agreement
to the City, with the BPA cost -share not to exceed $384,520.
In late 2010, and early 2011, the City and its largest customer, Nippon Paper Industries USA Co.,
LTD (Nippon), engaged in two distinct streams of work associated with the execution of DR
strategies that can benefit both the City and the BPA. One of those work streams, led by members
of BPA's Cross Agency Demand Response Team, is exploring Nippon's ability to manipulate
production- sensitive equipment to provide an energy load building resource (through the City) to
assist BPA in its efforts to integrate wind power on the regional electrical grid. An initial proof -of-
concept test indicated that Nippon can likely provide support to BPA to meet the wind integration
challenge. However, the proof -of- concept has only identified what production equipment can
respond, but has yet to determine if load building resources can be fully automated, which load
building resources require supervision or "semi- automation," and which load building resources
will require human intervention. In addition, there is a need to identify a transparent
communication architecture that will provide all stakeholders with real -time visibility of the
available resources, real -time feed -back of the load building responses, and an automated signal
(end -to -end) to dispatch the resources. These additional steps are necessary to translate the proof
of- concept into a commercially viable product(s).
N \UAC \Flnal\BPA C &I DR Grant Amendment #1 doc
BPA Commercial and Industrial Demand Response Grant Amendment No.1
June 14, 2011
Page 2
In March 2011, Nippon, the City, and the BPA, agreed to work together to integrate both efforts
under the C &I DR Pilot Project in order to inform and facilitate the translation of the proof -of-
concept efforts into commercially viable products by leveraging the technology infrastructure
being used by that project.
The goal of this project is to enable and test Nippon's ability to provide multiple capacity products
to the City for potential sale to the BPA in the future, including:
Product 1: Voluntary reduction of non production related electrical loads with a day -ahead notice;
Product 2: Voluntary reduction of production related electrical loads with a 10- minute notice;
Product 3: Voluntary reduction of production related electrical loads with a day -ahead notice; and
Product 4: Voluntary increase of production- related electrical loads with a 10- minute notice;
If the goals to enable and test the four products noted above are successful, the BPA anticipates
that a commercial demonstration project would follow the proof of concept process. More
specifically, the proof of concept pilot is now scheduled to run through September 30, 2012. A
follow -on commercial demonstration may require an additional 12 -month period to conduct, which
would be through the period ending September 30, 2013. Assuming both processes prove out and
each party (i.e., Nippon, BPA, and the City) desire to proceed, a longer -term contract might then
be struck beginning in BPA's FY14, which starts on October 1, 2013. While there may be avenues
that could allow for acceleration of this process (or cause it to slow down), this appears to be the
approximate timeline given what staff knows at this time.
The financial impact to the City for the added proof of concept will be a slight increase in our in-
kind contribution of staff support. All other direct cost increases, if any, will be funded by the
BPA. Any project efforts beyond the current proof of concept will likely require an additional
amendment to the Agreement.
Staff requests that the Utility Advisory Committee forward a favorable recommendation to City
Council to authorize the City Manager to sign Amendment No.1 to the Agreement with the
Bonneville Power Administration for the City's Commercial and Industrial Demand Response
Pilot Project, and make minor modifications to the agreement, if necessary.
170RTANGELES
W A S H I N G T O N U.S.A.
Utility Advisory Committee Memo
Date: June 14, 2011
To: Utility Advisory Committee
From: Phil Lusk, Power Resources Manager
Subject: Professional Services Agreement Amendment No. 3 for Commercial Industrial
Demand Response Project Evaluation
Summary: The City is currently engaged in a Commercial and Industrial Demand Response Pilot
Project with the Bonneville Power Administration. An amendment to the professional services
agreement with EES Consulting is proposed to provide essential support services.
Recommendation: Forward a favorable recommendation to City Council to authorize the
City Manager to sign Amendment No. 3 to the Professional Services Agreement with EES
Consulting for an amount not to exceed $20,000, and to make minor modifications to the
Agreement, if necessary.
Background /Analysis: Demand response (DR) is a practice that cycles or shuts down
customer equipment during peak electric utility demand events to reduce Bonneville Power
Administration (BPA) wholesale demand charges. At its simplest, DR uses a control device to
briefly curtail major appliances or space conditioning units. Peak demand is measured as the
maximum rate of energy consumed during one hour each month.
EES Consulting, Inc. (EESC) is currently assisting the City with its Residential DR Pilot Project
by performing the economic evaluation of the cost effectiveness of DR and other technical project
related support services. Additional services of EESC are also required to assist the City and the
BPA with their Commercial and Industrial (C &I) DR Pilot Project. At the conclusion of its
evaluation, EESC will provide the City and BPA with a final report describing the data input, the
economic analysis and resulting cost effectiveness of the C &I DR strategies evaluated. This final
report will provide the information required to determine if further deployment of C &I DR is
warranted. The economic and technical support services are important to the BPA because they
plan to use the final report as part of its decision making for future regional programs.
The additional EESC contractual services will not exceed a total of $20,000, with a 100% cost
share to be provided by the BPA.
Staff requests that the Utility Advisory Committee forward a favorable recommendation to City
Council to authorize the City Manager to sign Amendment No. 3 to the Professional Services
Agreement with EES Consulting for an amount not to exceed $20,000, and to make minor
modifications to the Consulting Services Agreement, if necessary.
N: \UAC\Final\Professional Services Agreement Amendment #3 for C &I DR Project Evaluation.doc
Find out the latest
about the City of Port
Angeles' New Electric
and Water Meters
Get up -to -date information, ask questions and
join the discussion about the new Advanced
Metering Infrastructure (AMI) system
The City of Port Angeles has started installing the
AMI system and replacing water and electric meters,
which will give customers more information and
control over their electricity use —and help the City
and customers keep costs down. At this Town Hall
meeting we'll discuss
The upcoming Bonneville Power Administra-
tion's (BPA) rate increases and changes to the
way they charge for power
How the new meters work and the
advantages over our old system
And, introduce the Voluntary Peak Power
Project where customer volunteers can try
additional energy- saving technology
Town Hall Meetings
Thursday June 30th at 12:15 p.m.
Thursday June 30th at 6:00 p.m.
City Hall Council Chambers
321 East 5th Street
For more information about the AMI system:
Go to www.cityofpa.us /newmeters.htm,
Email us at newmeters @cityofpa.us or
C a l l 360 417 -4595.
Voluntary Peak Power Project info will be provided
in an upcoming utility bill and is available
now at www.cityofpa.us /drpower.htm.
AM A System
VoDaMary Pock Power
0
proiect Overvliew
A New Way to Reduce Your EQecthhdty Use
To help our residents and small businesses gain more control over their electricity bills, the City
of Port Angeles is starting the "Voluntary Peak Power Project" —for around 600 volunteers
Over a one -year period the City will test a system that occasionally shuts off water heaters or
turns down heating units for a short time during peak demand periods when electricity is most
expensive The goal is to reduce power use for participants, thereby lowering their bills, without
effort and with little, if any, discomfort
The project will help the City measure whether these small reductions in power usage, spread
through many homes and small businesses, are significant enough to lower Port Angeles'
wholesale power costs, positively impacting all customers It's a win -win customers can save
money, the City avoids having to pay the highest costs, and the region reaps the environmental
benefits of conservation Join your neighbors —and volunteers in similar projects taking place
across the region —in this very exciting new project
If the project is successful, the service will be made available to all our customers on a voluntary
and phased basis Every customer will get to decide for themselves if they want the Voluntary
Peak Power equipment —or not
If you volunteer, here's how it works:
1 We'll install a free control unit on your water heater, a "smart" thermostat or a thermal
storage unit in qualifying homes and small businesses These are yours to keep
2 Occasionally, during times of high electricity demand, we'll send a wireless message to
your device that turns off your water heater or adjusts your thermostat by a couple of
degrees for a period lasting a few minutes up to 3 hours You should not notice any
significant change in your hot water or space temperature as a result of these temporary
adjustments, and you can override thermostat changes if needed
3 Your feedback will be gathered through up to 4 online surveys so we can understand how
participants view the project and if you are impacted
4 We'll measure how these temporary power reductions, spread through all participants'
homes and businesses, affect overall power demand
Benefits of the Voluntary Peak Power Project:
Participants will receive up to $160 for being part of the one -year project
Devices installed in your home are yours to keep (up to a $1,000 value)
You'll be the first in our community to experience this new technology while helping
the City of Port Angeles manage energy use more efficiently
Interested in volunteering or finding out more? See the volunteer qualifications
and program details on the back of this sheet Interested customers can email
drpower@cityofpa.us or call 360- 417 -4595. All questions are welcome
cP' P,K
yowaL
What u.
peak demand?
The "peak demand period"
is the time during the
day when consumers'
demand for electricity is
at its highest (currently
6 a.m. to 2 p.m., except
for Sundays)
The Bonneville Power
Administration (BPA) is
changing its rate structure,
effective October, 2011,
so that electricity costs
more during peak
demand periods
Starting in early 2012,
the utility bills of City of
Port Angeles customers
will be based on the
BPA's new rates
Why peak
demand umportaMM?
If we don't conserve
during peak times the
City will have to pay higher
costs for electricity, which
in turn means higher costs
for our customers
PORTg
Do you qualify?
This voluntary project is available for up to 600 residential and small business customers who meet the fcllowing criteria
Own a single family home or small commercial building
To test the water heater control unit muss have a completely electric water heater that is less than 0 years old
To test the "smart" thermostat must have a completely electric central heating system that is less than 10 years old
Are able to complete online surveys using an Internet connection
Project timeline and details
We'II begin accepting volunteers for the project in May, 2011 and will continue until we have placed all the Voluntary
Peak Power equipment with qualified participants
The majority of participants will get a devi :e that shuts off their water heater briefly, 90 participants will get a "smart"
thermostat that turns down the central heating system, and 10 participants will test a thermal enerc y storage heater
We will schedule the installation of equipment with participants on an individual basis, after your new AMI electric meter
has been installed
The project testing will begin in January, 2012, after all participants' devices have been installed, and will
continue for one year
Participants will be asked to complete up to 4 online surveys during the project
Participants will receive up to $120 in utility bill credits ($10 for each month of program participator') At the end of
the project, participants will receive another payment of $10 for each survey completed during the cc urse of the project
(up to $40)
After the project concludes, the City will conduct a thorough technical and economic evaluation of these technologies to
verify if they offer significant value to the utility and its customers
If the evaluation concludes that the projec is a success, the service will be made available to all of our customers on a
voluntary and phased basis Participants in this project may continue to use the devices installed for his project if they wish
to enroll in future programs offered by the City Any future customer incentives are yet to be determined
The Voluntary Peak Power Project is made possible by our new AMI system
One of the benefits of installing the AMI system throughout the City is the ability to take advantage of new energy management
opportunities, such as those we're exploring in this project AMI enables the Voluntary Peak Power equipr tent (water heater
controls and smart thermostats) to send and receive data
Interested parties can email drpower@cityoipa.us or call 360 417 4595 to request an application All questions are welcome
AI [1 Synem
Flo un�trry Peak Power project
Frequently Asked Questions
What is peak demand, and how does it affect my bill? The "peak demand period" is the
time during the day when consumers' demand for electricity is at its highest (currently 6 a m. to
2 p m except for Sundays) The Bonneville Power Administration (BPA) is changing its rate struc-
ture, effective October, 2011, so that electricity costs more during peak demand periods As a
result of the BPA's rate increases, customers may see an increase in their bill starting in early 2012
Why is limiting peak demand important? With the Bonneville Power Administration's (BPA's)
new rate structure electricity prices will change according to how much demand there is If we
don't conserve during peak times the City will have to pay higher costs, which will then be
reflected in higher costs for our customers
What is the Voluntary Peak Power Project? The Voluntary Peak Power Project is an effort that
will help our residents and small businesses gain more control over their electricity bills and reduce
the demand for power during high priced peak demand periods With the help of up to 600 vol-
unteers, over a one -year period the City will test a system that occasionally shuts off water heaters
or turns down heating units for a short time during peak demand periods when electricity is most
expensive The goal is to reduce power use for participants, thereby lowering their electric bills,
without a lot of effort or discomfort
What do you hope to learn from the project? The project will help the City measure whether
small reductions in power usage, spread through many homes and small businesses, are significant
enough to lower Port Angeles' wholesale power costs, which lowers costs for all customers
The Citv's aoals are to:
Reduce demand for power during high priced peak demand periods
Lower the wholesale power supply costs the City pays the Bonneville Power
Administration (BPA) for electricity
Minimize customer effort and any discomfort while reducing individual power use
What are the City's plans for offering Voluntary Peak Power equipment to all customers?
If the project is successful, the service will be made available to all of our customers on a voluntary
and phased basis Every customer will then get to decide for themselves if they want to have the
Voluntary Peak Power equipment installed —or not
If I volunteer, will my heat and hot water be available when I need it? Yes, you should
not notice any significant change in your hot water or space temperature as a result of these
temporary adjustments, and you have the control to override thermostat changes if needed
Do I have to participate? No, participation in the Peak Power Project is entirely voluntary If
you do join, you may opt out at any time and you may override the changes to your "smart"
thermostat if needed
How does the
project work?
First we'll install a free
water heater control
and /or a "smart"
thermostat in the homes
and small businesses of
qualifying volunteers.
Occasionally, during
times of high electricity
demand, we'll send a
wireless message to each
volunteer's system that
turns off the water heater
or adjusts the thermostat
by a couple of degrees
for a period lasting a few
minutes up to 3 hours.
Participants should not
notice any significant
change in hot water or
space temperature as a
result of these temporary
adjustments, and they
will have the control
to override thermostat
changes if needed.
Participant feedback will
be gathered through
several online surveys so
we can understand how
individuals are impacted.
f PORT
How does the Voluntary Peak Power Project equipment work? FOR PROJECT VOLUNTEERS ONLY, the City will send
occasional wireless signals to each participant's electric meter which will in turn signal their Peak Power equipment to make an
adjustment The meters of customers who do riot volunteer for the proiect will not receive these signals For customers who
volunteer to test the "smart" thermostat, the equipment includes a Home Area Network (HAN) display that delivers information
about the participant's overall electricity usage from their outside meter
What do project volunteers receive for taking part?
Participants will receive up to $120 in utility bill credits ($10 for each month of program participa ion)
At the end of the project, participants will receive another $10 for each survey completed during the project (up to $40)
Devices installed in homes and small businesses are theirs to keep (up to a $1,000 value)
Be the first in our community to try this lew technology while helping the City manage energy LP e more efficiently
Are there any qualifications to participate:' This voluntary project is available for up to 600 residential and small business
customers who meet the following criteria
Own a single family home or small commercial building
To test the water heater control unit mi. st have a completely electric water heater that is less tha 10 years old
To test the "smart" thermostat must have a completely electric central heating system that is les! than 10 years old
Are able to complete online surveys using an Internet connection
Can renters or tenants participate in the project? Yes, we welcome renters' participation if they ren a single- family home
or small commercial building and the building owner enrolls them in the project on their behalf
What other cities are participating in the Peak Power Project? The BPA is helping to sponsor six diffilent Peak Power projects
throughout the region, including efforts on Orcas Island and in Shelton, WA, as well as in Eugene and Redmond, OR
Does this have anything to do with the new AMI meters? is the City paying for two different ;ystems? One of the
benefits of installing the AMI system throughout the City is the ability to take advantage of energy management opportunities,
such as these The Voluntary Peak Power equip 'nent (water heater controls and "smart" thermostats) se Ids and receives data
using the new AMI system infrastructure, we ale not installing a new system for this project
Is my personal energy use information confidential? Yes, your personal energy use information will remain confidential The
wireless signals generated for this project are t ansmitted over secure networks to and from the City A; is true now, your utility
usage information will be protected and secure The City must also comply with federal laws regarding the privacy, protection and
disclosure of personal information.
I want to volunteer for the Voluntary Peak Power Project. Whom do I contact? If you're interest( d in participating, or just
want to find out more, email drpower @cityofpa.us or caII 360 417 4595 All questions are welcome
Didn't see an answer you were looking for?
Please contact drpower @cityofpa.us or call 360- 417 -4595.
J
W A S H I N G T O N U.S.A.
Utility Advisory Committee Memo
Date: June 14, 2011
To: Utility Advisory Committee
From: Phil Lusk, Power Resources Manager
Subject: Bonneville Environmental Foundation Solar4R Schools Project Update
Summary: The Bonneville Environmental Foundation, the Feiro Marine Life Center, and the City
have been implementing a Solar 4R Schools renewable energy demonstration and education
project at the Feiro Marine Life Center. Staff will provide an update on the project's status.
Recommendation: For information only, no action required.
Background /Analysis: In July 2009, the Feiro Marine Life Center (FMLC) requested support
from the City of Port Angeles for a renewable energy education program. The City agreed to
provide up to $18,739 from Bonneville Power Administration Conservation Rate Credit for the
renewable energy education program. The FMLC also applied to the Bonneville Environmental
Foundation (BEF) under the Solar 4R Schools program for additional funding support for the
renewable energy education program. BEF approved the FMLC application and entered into a
Funding Agreement with the City to provide teacher training, science kits, renewable energy
guides, and the installation of a 2kW photovoltaic (PV) system and monitoring equipment at the
FMLC and to cover all project costs in excess of $18,739.
BEF provided educational materials, curriculum and support during the 2010 and 2011 school year
that allowed FMLC to introduce renewable energy and its concepts to more than 300 students.
BEF has also conducted a site survey at the FMLC and the surrounding area on the City pier for an
appropriate location of the demonstration PV system. However, a suitable location for the PV
system was not identified and the PV system will not be installed. Alternatively, BEF has
proposes to install PV system performance and weather monitoring at the existing PV system at
the Serenity House of Clallam County's Maloney Heights apartment complex in Port Angeles to
be incorporated into the Solar 4R Schools program. BEF is preparing a new Funding Agreement
to include the Maloney Heights project component.
N \UAC\Final\Bonneville Environmental Foundation Solar4R Schools Project Update doc
j ORT
W A S H I N G T O N U.S.A.
Utility Advisory Committee Memo
June 14, 2011
Date:
To: Utility Advisory Committee
From: Larry Dunbar, Deputy Director of Power Systems
Subject: Northwest Public Power Association Tier 2 Power Supply Workshop
Summary: On June 7 -8, 2011, City Council and Utility Advisory Committee members attended
the Northwest Public Power Association Tier 2 Power Supply Workshop. The purpose of the
workshop was to consider the City's Tier 2 power supply and key performance objectives for the
Electric Utility.
Recommendation: For information only, no action requested.
Background /Analysis: On June 7 -8, 2011, City Council and Utility Advisory Committee
members attended the Northwest Public Power Association Tier 2 Power Supply Workshop. The
purpose of the workshop was to consider the City's Tier 2 power supply (for October 2014
September 2019) and key performance objectives for the Electric Utility (through June 2014).
On the first day of the workshop there were several presentations made by City staff and energy
professionals, and on the second day ofthe'workshop City Council and Utility Advisory
Committee members reviewed and refined a Tier 2 power supply strategy and key performance
objectives. Based on the direction provided at the workshop, staff will request a recommendation
from the Utility Advisory Committee to City Council before the September 30, 2011 deadline to
select the Bonneville -Power Administration short-term Tier 2 rate alternative. With the imminent
BPA wholesale power rate increase beginning this October, staff will also be returning to the
Utility Advisory Committee and City Council in August to evaluate options to reduce retail rate
revenue risk such as applying the increase only to the customer charge versus consumption
charges, and ways to mitigate utility discount customer impacts.
A copy of all presentations is now available on the City's ftp website under the "NWPPA
Workshop" folder from htto: /olvoen.com /cona/. A copy of the Tier 2 power supply strategy and
key performance objectives which were refined during the workshop are attached for more
information. Please contact me if you were not able to attend or if you have any questions.
Attachment: Electric Utility Tier 2 Power Supply Strategy
Electric Utility Key Performance Objectives
N \UAC \Flnal\NWPPA Tier 2 Power Supply Workshop docx
NGE LES
Electric Utility Tier 2 Power Supply Strategy
Policymaker Consensus June 8, 2011
1. Continue reliance on BPA power supply for future Tier 2 needs (not landfill gas,
cogeneration, market purchases, etc.).
2. Maintain selection of BPA short -term rate alternative and notify BPA by September 30,
2011 (for October 2014 September 2019 deliveries).
3. Consider adoption of an ordinance for incremental Toads in 2011 (use a name other than
"new large single loads" to avoid confusion with BPA terminology).
4. Annually review energy sales growth compared to BPA and City funded conservation
program activities, performance targets, and funding sources to ensure avoidance of Tier 2
power supply needs. Complete BPA required Conservation Plan in 2012.
5. Complete demand response installations in 2011, evaluate the cost and benefits of demand
response in 2012, and if appropriate consider expanding demand response efforts in 2013.
6. Revisit Electric Utility strategic planning in June of 2014 and the City's Tier 2 power supply in
June of 2016 (for October 2019 September 2024 Power Supply)
Electric Utility Key Performance Objectives
Policymaker Consensus June 8, 2011
1. Conservation
a. Maintain high staff performance to acquire energy conservation through City electric
customers.
b. Prepare for a 2 /3 increase in BPA energy conservation funding beginning October of
2011 due to the Northwest Power and Conservation Council's 6 Power Plan, which is
anticipated to continue for at least the next five years.
c. Continue to identify and implement energy conservation projects at municipal facilities,
and participate in the resource conservation- manager program through 2011.
d. Continue to seek additional BPA funding to implement energy-'conservation activities
within the City.
2. Advanced Metering Infrastructure (AMI) System
a. Consider additional demand response efforts in 2013.
b. Integrate the AMI System into the Conservation Voltage Optimization and SCADA
Systems in 2012.
c. Consider annual'Meter inspection to review meter condition, check for tampering, and
ensure clearances are maintained, beginning 2012.
d. Utilize the outage management system beginning 2012.
e. Consider redundant fiber optic connections to AMI System collectors in 2012 to ensure
high network reliability.
f. Correlate consumption with meteorological data to predict next day peak hour in 2012,
which will be used for,demand response scheduling.
g. Consider.future distribution automation and smart grid efforts as they become
available (timing unknown).
h. Begin optimization review of electrical transformer right sizing, commercial water
meter right sizing, arid consider water system main leak detection via the AMI System
in 2013.
3. Telecommunications
a. Explore need for a Telecommunications Utility ordinance in 2011 for the future City
owned wireless mobile data system.
b. Prepare a Request for Qualifications (RFQ) for consultant services in 2013 for the Cable
Television Franchise formal renewal proceeding, which includes a community survey
and a future needs and interests report.
c. Explore ways to leverage telecommunications capability.
4. Electric Utility Rates Finances
a. Anticipate wholesale power cost increases in the Fall of 2011 (that shift from variable
cost to high fixed and low variable cost) that necessitate a retail rate increase. Return
to City Council to evaluate options for retail rate increases that reduce retail rate
revenue risk such as applying the increase only to the customer charge versus
consumption charges, and ways to mitigate utility discount customer impacts prior to
September 2011.
b. Consider retail rates in the Fall of 2011 that include rebuilding unrestricted cash
balance.
c. Consider continuation of the communications plan incorporating AMI System benefits
in 2012 (e.g., time of use rates, customer portal,high usage alerts, water leak alerts,
etc.). Timely communicate final 2011 BPA wholesale power rate increase to the public.
d. Consider conducting a separate customer survey on green retail rate alternative in
2013.
e. Evaluate the effect on weekday (Monday through Friday) retail rates if Saturdays are
made into either a low or medium rate in 2013.
5. Future Annexations
a. Engage the Clallam County Public Utility District in a discussion to consider electrical
customer transfer by wheeling arrangement versus acquisition of assets in 2012.
6. Infrastructure Plan...
a. Maintain renewals and replacements at or above depreciation 2011 forward.
b. Complete cost /benefit evaluation of pole `replacement to determine future use of City
crews or contractors in
7. Landfill Flare Facility
a. Conduct to,assess gas quality and quantity in 2011.
b. Proceed with a request for proposal (RFP) seeking development of a beneficial use in
2012.
8. Electrification of the Transportation Sector
a. Seek grant opportunities for electric vehicle infrastructure and charging station(s) in
2011 forward.
9. Public Power
a. Maintain a positive relationship with BPA, and memberships in trade associations (i.e.,
Public Power Council, Western Public Agencies Group, and Northwest Public Power
Association) that preserve public power benefits.
1 4
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