HomeMy WebLinkAboutAgenda Packet 06/21/2013City of Port Angeles
Joint Council /Utility Advisory Committee
2013 Electric Utility Strategic Planning Session
Friday, June 21, 2013
City Council Chambers
9:00 AM -3:00 PM
Piscpss
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Phil
Welcome
:10
X
X
Introductions- UAC members, facilitator others
9:00
Want we want to accomplish today (pre -work)
9:10
Gain agreement of direction for the day
X
Arnie
Facilitator role and expectations
:10
X
X
X
9:10-
9:20
Phil
Review from 2009 2011 planning sessions Develop a
:30
X
X
Council /UAC
report card on key activities discussed and actions taken
9:20
Arnie
"What worked" and "what didn't go as planned" for
each activity
9:50
Lessons learned applying to our future actions
Shannon
Overview of BPA's FY 2014 -2015 Power and
:20
X
Greene, BPA
Transmission Rate Case
9:50-
10:10
All
Break
:10
X
10:10-
10:20
Phil, EES
Group All
Key issues facing City's Electric Utility during the next three
years; SWOT analysis overview
:50
10:20-
X
X
Strengths
11:10
Weaknesses
Opportunities
Threats
Is there a priority to these key issues?
FCS Group
Cost of Service Studies: Policy should drive rates
:50
X
X
While the electric utility is the principal focus, what
11:10
key policy issues should be addressed by the City's
utilities?
12:00
All
Catered Lunch Break
:45
X
12:00-
12:45
Arnie &All
High -level SWOT action plan
:105
X
X
X
12:45-
2:30
All
Deputy Director Action Plan
:15
X
X
X
August Utility Advisory Committee
2:30-
2:45
Arnie All
Did we accomplish what we wanted to?
:15
X
X
X
What did we do well?
What could we do differently or improve?
City of Port Angeles
Joint Council /Utility Advisory Committee
2013 Electric Utility Strategic Planning Session
Friday, June 21, 2013
City Council Chambers
9:00 AM -3:00 PM
2013 Electric Utility Strategic Planning Session
For City Council and Utility Advisory Committee Members
June 21, 2013, 9AM -3PM, Council Chambers, Lunch Provided
The Bonneville Power Administration (BPA) began using the "Tiered Rate Methodology" on
October 1, 2011.
For all parties, this was more than a change in the cost of the City's wholesale power
supply; it was a fundamental change in how the BPA accounts for revenue risk with its
utility customers.
In 2009 and 2011, the City began a strategic process to avoid using more expensive "Tier 2"
wholesale power by encouraging greater levels of energy conservation.
The City is meeting its objective, and any requirements for Tier 2 wholesale power will not
likely happen until after 2019.
The purpose of this 2013 workshop is to consider the key issues facing the City's Electric
Utility over the next two years by completing a SWOT analysis.
SWOT analysis is a structured planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business venture.
It will involve specifying the Electric Utility's near -term key objectives and identify the
internal and external factors that are favorable and unfavorable to achieving those
objectives.
This analysis must be made to continue to ensure a reliable and low -cost wholesale power
supply.
Presenters Include:
Arnie Winkler, NWPPA
Shannon Greene, Bonneville Power Administration
Kevin Smit and Kelly Tarp, EES Consulting
Angie Sanchez and Sergey Tarasov, FCS Group
City Staff
Comments or Questions?
Contact Phil Lusk, 417 -4710 or plusk @cityofpa.us
Electric Utility Strategic Planning Session
Joint City Council /Utility Advisory Committee
June 21, 2013
Port Angeles, Washington
Philip D. Lusk
Deputy Director of Power and
Telecommunication Systems
Department of Public Works Utilities
City of Port Angeles, WA
Today's Major Discussion Topics
Review of 2009 2011 Planning Sessions
BPA's FY 2014 -2015 Power and Transmission
Rate Case
is Electric Utility Key Issues SWOT Analysis
Strengths, Weaknesses, Opportunities and Threats
Cost of Service Studies: Policy Should Drive Rates
Develop High -level Action Plan for SWOT Issues
Review Deputy Director Action Plan
Did We Accomplish What We Wanted To?
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2009 and 2011 Planning Session Review
Under the "Tiered Rate Methodology the City is
responsible for periodically choosing how it will
provide for future energy growth with the BPA
In 2011, key performance objectives were also added
For 2013, develop a narrative report card on
"what worked" and "what didn't go as planned"
Lessons learned applying to our future actions
2009 Planning Session Review
2010 -2014 Tier 2 Power Supply Options
N Select BPA Short -Term Tier 2 alternative for all rate classes
Expand residential, commercial, and City facility conservation programs
consistent with the Conservation Potential Study
Expand conservation program by doubling the proposed 2010 -2014
budget, paid for using cash versus debt
Facilitate industrial transmission rate class conservation programs that
qualify for BPA program funding
Continue to have a wholesale rate structure for the industrial
transmission rate class
2011 Planning Session Review
Explored City's 2015 -2019 Tier 2 Power Supply Options
-/Maintain the BPA Short -Term Tier 2 rate alternative for the distribution
system and industrial transmission rate class
Adopt an ordinance for new "large" incremental Toads
Review energy sales growth and City funded conservation program
activities, performance targets, and funding sources to ensure
avoidance of Tier 2 power supply
Complete demand response installations in 2011, evaluate the cost and
benefits of demand response in 2012, and if appropriate consider
expanding demand response in 2013
Revisit City's Tier 2 power supply election in June 2016 for the 2019-
2024 Tier 2 power supply
2011 Planning Session Review
Conservation Objectives
/Maintain high staff performance to acquire energy conservation
through City electric customers
Prepare for an increase in BPA energy conservation funding
beginning October of 2011, which is anticipated to continue for at
least the next five years.
Continue to identify and implement energy conservation projects
at municipal facilities, and participate in the resource
conservation manager program through 2011
/Continue to seek additional BPA funding to implement energy
conservation activities within the City
2011 Planning Session Review
Telecommunications Objectives
/Explore need for a Telecommunications Utility ordinance in 2011
for the future City -owned wireless mobile data system
/Explore ways to leverage telecommunications capability
Prepare a Request for Qualifications (RFQ) in 2013 for consultant
services for the Cable Television Franchise formal renewal
proceeding
Include a community survey and a future needs and interests
report
2011 Planning Session Review
Electric Utility Rates Finances Objectives
/Anticipate wholesale power cost increases in the Fall of 2011
/Communicate 2011 BPA wholesale power rate increase to the public
/Return to City Council to evaluate options for retail rate increases that
reduce retail rate revenue risk (basic vs. consumption charge)
/Mitigate utility discount customer impacts prior to September 2011
2011 Planning Session Review
Electric Utility Rates Finances Objectives (Con't)
Consider retail rates that rebuild the unrestricted cash balance
Consider conducting a separate customer survey on green retail rate
alternative in 2013
Consider continuing the communications plan incorporating AMI System
benefits in 2012 (e.g., time of use rates, customer portal, high usage
alerts, water leak alerts, etc.)
Evaluate the effect on weekday (Monday through Friday) Time -of -Use
retail rates if Saturdays are made into either a low or medium rate in
2013
Review of 2011 Planning Session
Other Objectives
/Infrastructure Plan: Complete cost/benefit evaluation of pole
replacement to determine future use of City crews or contractors in 2012
/Landfill Flare Facility: assess gas quality and quantity in 2011, then
proceed with a RFP for beneficial use development in 2012
Transportation Sector Electrification: Seek grant opportunities for
electric vehicle infrastructure and charging station(s) in 2011
Public Power: Maintain a positive relationship with BPA, and
memberships in trade associations (i.e., PPC, WPAG, and NWPPA)
that preserve public power benefits
Infrastructure Plan; Maintain renewals and replacements at or above
depreciation 2011 forward
Future Annexations: Engage the Clallam County Public Utility District
in a discussion to consider electrical customer transfer by wheeling
arrangement versus acquisition of assets in 2012
Review of 2011 Planning Session
Advanced Metering Infrastructure System Objectives
Consider additional demand response efforts in 2013
Integrate the AMI system into the Conservation Voltage Optimization
and SCADA Systems in 2012
Consider annual meter inspection to review meter condition, check for
tampering, and ensure clearances are maintained, beginning 2012
Utilize the outage management system beginning 2012
Consider redundant fiber optic connections to AMI system collectors in
2012 to ensure high network reliability
Correlate consumption with meteorological data to predict next day
peak hour in 2012, and use for demand response scheduling
Begin optimization of electrical transformer right sizing, commercial
water meter right sizing, and water system main leak detection in 2013
Consider future distribution automation and smart grid efforts as they
become available (timing unknown)
Review of 2011 Planning Session
Advanced Metering Infrastructure System Objectives
Consider additional demand response efforts in 2013
Integrate the AMI system into the Conservation Voltage Optimization and
SCADA Systems in 2012
Consider annual meter inspection to review meter condition, check for
tampering, and ensure clearances are maintained, beginning 2012
Utilize the outage management system beginning 2012
Consider redundant fiber optic connections to AMI system collectors in
2012 to ensure high network reliability
Correlate consumption with meteorological data to predict next day peak
hour in 2012, and use for demand response scheduling
Begin optimization of electrical transformer right sizing, commercial water
meter right sizing, and water system main leak detection in 2013
Consider future distribution automation and smart grid efforts as they
become available (timing unknown)
Review of 2011 Planning Session
Advanced Metering Infrastructure System Objectives
Review of these objectives will occur at the August 2013 Utility Advisory
Committee Meeting
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$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
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($5,000,000)
Port Angeles: Average Annual BPA Power Costs
wP=1O
13 Tier 2 Charges
Load Shaping Charges
Demand Charges
Customer Charges
Energy Charges
LDD
Lookback Credit
Et Customer Refund
Load Characteristics
Load 85.4 aMW
Avg. Monthly LF
73%
HLH Energy 55%
CDQ /Peak 22%
BPA Gen CF 63%
Total Costs /MWh)
WP -10 $27.40
TRM -12 $29.30
TRM -14 $31.90
Rate Increases
TRM -12 6.7%
TRM -14 9.0%
Total 15.8%
Calculations based on FY14-
15 load forecast applied to
three BPA rate schedules
Port Angeles Jan 2012
Port Angeles Jan 2013
Mason County PUD #3
Mason County PUD #1
Arlington
Bainbridge Island
Clallam County PUD #1
Puget Sound Energy
Grays Harbor PUD
Snohomish County PUD
Tacoma Public Utilities
Seattle City Light
WA State Average
Average Residential Electric Rate Impact by Utility
$/1500 kWh Excluding Taxes
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Key Discussion Topics
Where does Port Angeles get its energy and
how do we use it?
When we use energy is more important today
than in the past
Conservation and voluntary demand response
remain the City's preferred fuels
City of Port Angeles 2011 Fuel Mix Disclosure
The electric energy the City of Port Angeles provides to its customers comes from the following resources
Oil, 0,01%
Biomass, 0.17%
tura! Gas, 0.68%
Other*, 0.01%
SOU RCE: Washington State Department of Commerce Other contains blast furnace gas, other biomass gas, and purchased steam
Port Angeles' Dual Challenge
Bonneville Power Administration's "Tiered Rate
Methodology" became effective on October 1,
2011
Better manage contract demand quantity, load shape,
and critical peak periods
City's electric and water meters are wearing out
Many under measure what people use
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
Residential Demand Example Home #1
Customer Peak Day Costs and Sales (March 2012 Worst- Case)
City Peak Period
13.10
12.30
Peak Day Consumption
kWh 67.70
kW 13.10
Cost Us
$2.54
$119.21
Sold For
$4.10
$0.00
P /(L)
$1.56
($119.21)
$121.75
$4.10
($117.65)
8.80
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6.70
6:@6
3.90
3.60
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Actual kW Average kW
City of Port Angeles Demand Response History
Pacific Northwest Gridwise Testbed Program (2005 2007)
Internet based remote control of water heaters, grid-friendly clothes dryers, and smart
thermostats
Residential DR Pilot (installation in-progress)
AMI dispatched remote control of water heaters and smart thermostats
Wind Integration Pilot Project (2010-2013)
Remote control of thermal energy storage systems to match BPA balancing reserves
Commercial Industrial DR Pilot
Internet communication/control of imbedded load control devices on up to 41MW of load
for Peak Shaving, INC, and DEC dispatch
•Residential DR
e, `,40,
Windlintegration Rilot
4
Gridwise Test Be
2005
C
DiKommercial
Demonstration
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Voluntary DR Load Control Switch Overview
Reduces peak demand while limiting
customer impact
During a DR event, the water heater
will be turned off
Water heater reheats to set -point
after DR event completion
Load control switch can also be used
to control other devices
DR credits based on participation
Equipment will be installed at no -cost
to customers
Voluntary Response Demand Efforts
Customer -Side*
Residential DR Pilot (600 customer units)
Water heaters, smart thermostats
Residential Wind Integration Pilot (41 customer units)
Water heaters, thermal storage
Commercial Industrial DR Pilot (8 customers)*
Open Automated Demand Response Communication Standards
(OpenADR) communications protocol
Industrial Wind Integration Pilot (1 customer)
Utility -Side
Voltage Optimization (VO) using manually adjusted line -drop
compensation
Will deploy fully automated system to monitor and report lowest end -of -line
feeder into City's SCADA system in 2014
Made possible with the support of the Bonneville Power Administration
Conservation Project Examples
2012
Free weatherization for qualifying customers
Wind integration pilot project
Commercial industrial demand response pilot
New single large -load ordinance for better managing
customer growth
2013 -2014
Update Conservation Potential Study
Ductless heat pump pilot project
Heat pump water heaters
LED lighting
Customer survey on "green- rate" alternatives
Time -of -Use rate schedule
Energy eJ is
a great investrnent 111
especially when you don't have to pay for its
That's why the City of Port Angeles is offering
Free Weatherization for qualifying City Electric Utility customers.
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City Council Priorities
Seek all cost effective conservation and
demand response measures as the favored
resources for meeting future loads
Conservation's cumulative effects reduced City's 2011
power purchases by 3.2 directly saved customers
$750,000 and created a multiplier effect of more than
$1.7 million
Conservation represents least -risk strategy
Continue City support
Continue to seek more BPA funding
Ramp Up Efforts
Reinforce conservation program efforts in areas
such as heat pumps and lighting
Voluntary DR projects for all customer classes
Avoid exceeding contract demand quantity, maintain
load shape similar to BPA, and mitigate critical peak
periods
Seasonal rate structure so that energy is priced
correctly in the winter months
Higher winter energy rate sends a rate signal
2012 Resource Plan Summary
Strengths
Conservation program, demand response and wind integration
pilot projects
High reliability of power delivery by BPA transmission system
Weaknesses
Limited current generation resources on the Peninsula
BPA transmission line voltage stability
Opportunities
Further infrastructure automation, enhanced conservation, BPA
rate incentives for demand response and wind integration
Non -wires approach to BPA's transmission line voltage stability
Threats
Strong potential for significant increases in wholesale power and
transmission costs and decreases in BPA "Tier 1" power system
Disruptive technologies
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2013 -2016 Power Supply Recipe
Use conservation to hold the average load
growth to meet regional goals
Use DR and energy storage to flatten the peaks
Offset remaining new load growth and selected
existing capacity with strategic conservation
Could targeted savings be potentially freed for
other more productive uses?
2013 -2016 Power Supply Example
Use infrastructure automation and voltage
optimization to reduce internal power losses
Install 4000 ductless heat pumps in homes
Install 2000 heat pumps water heaters in homes
Use LED lighting in homes and businesses
Capture current high -water mark headroom
Distro Efficiency
Ductless Heat Pumps
HP Water Heaters
Comm Res Lighting
Current Headroom
TOTAL
Strength, Opportunity or Threat?
8,485,840
14,150, 869
3,254,3413
1
9,921,127
36, 997,255
kWh
1
aMW
0.969
1
1.615
0.372
0.135'
1.133
4.223
Current Headroom
TOTAL
1K-Ply Usage
Strength, Opportunity or Threat?
�K Ply Equivalents
kWh
8,485,840
14,150,869
3,254,341
1
9, 921,127
36.997.255
Distro Efficiency
Ductless Heat Pumps
HP Water Heaters
Comm Res Lighting
aMW
0.372
0.135
1.133
4.223
1.310
June 20, 2013
Consulting
TO: Phil Lusk
FROM: Kelly Tarp, Kevin Smit
SUBJECT: Understanding DR Benefits Draft Results
The objective of this project is to help clarify both to the City and its customers the potential
benefits of the demand response projects currently underway (or under study) in the City, and
to understand the possible impacts of city -wide installation of heat pump water heaters and
ductless heat pumps. The primary goals involved in assisting the City are to:
Quantify the City's hourly loads and power supply expenses
Illustrate the time and dollar value of potential peak savings to the City
Develop an assessment of the impact of city -wide installation of heat pump water heaters
and ductless heat pumps
Develop a method to quantify the potential peak savings for selected individual customers
and illustrate their contribution to the City's peak
Conservation Potential Update for Specific Residential Programs
A high level assessment of the impact of installing ductless heat pumps and heat pump water
heaters in all applicable homes city -wide was conducted. EES used some of the assumptions
from the City's conservation potential assessment performed in 2009 to quantify this impact.
Current savings estimates from the RTF were used for the equipment savings. Tables 1 -4
summarize the assumptions and results of this estimate.
570 Kirkland Way, Suite 100
Kirkland, Washington 98033
Telephone: 425 889 -2700 Facsimile. 425 889 -2725
A registered professional engineering corporation with offices in Kirkland, WA and Portland, OR
Page 2 of 9
Table 1:General Data °wand Assumptions
Residential Customers (2013)
Residential Building Growth Rate
Population
Residential Customers (2032)
8,900
1 3%
18,500
10,723
Tablet Residential Characteristics
Type
Single Family
Multi Family: 4 units or less
Multi Family. more than 4 units
Mobile Homes
Single Family Basement Type
Crawlspace
1/2 Basement
Full Basement
Vintage
Pre -1980
1980 1990
Post 1992
74%
0%
23%
3%
55%
15%
25%
74%
15%
11%
Heat Fuel Type
Natural Gas Homes
Electric Homes
Other Fuel Homes
Electric Heat System Type
Forced Air Furnace
Heat Pump
Zonal (Baseboard)
Other
Water Heating
Electric
Natural Gas
Clothes Dryers
Electric
Natural Gas
Table 3V-Measure Data
Savings
(kWh /yr)
Heat Pump Water Heater
Ductless Heat Purr'.
1,62717
3,816.00
1,234 56
3,407 11
0%
88%
12%
30%
11%
56%
3%
100%
0%
100%
0%
Baseboard Heated
Forced -Air Electric
Electric Water- Heated
Total
Table 4 Savings Estimates for Full HPWH and DHmplementati
Numberof Annual Savings
Hom!° ss t Per Home ,s-
4,366
2,339
8,900
3,816
3,816
1,627
Savings (kWh Savings
per year) (aMW)
16, 660, 595
8,925,319
14,481,818
40,067,732
1 90
1 02
1 65
4 57
nit Peak
Savings
(kW)'
2.78
2 78
0.65
This high -level analysis shows that an overall 4.57 aMW of energy efficiency savings can be
achieved through this city -wide adoption of heat pump water heaters and ductless heat pumps.
In addition, this application has more significant impact in the heating dominated months, as
shown in Figure 1.
Page 3 of 9
10.00
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
Figure 1— Monthly Savings for HPWH and DHP (aMW)
Ja 6 t Ja.6 air PQ�\ cN ¢O y �c o �t o e t e t
ffi DHP
HPWH
The annual energy efficiency savings from this prospective program would be 4.57 aMW, or
over 40,000,000 kWh. This is enough to power over 2600 new homes (assuming 15,000 kWh
per home).
Another estimate of conservation potential that assumes in the near term 4,000 DHP's and
2,000 HPHW's can be installed, in addition to some commercial and residential lighting. The
distribution CHWM is 33.423 aMW, which is the balance after taking Industrial Transmission
customer's CHWM from the total amount allocated to the City. Table 5 shows the results of
these slightly modified estimates along with the corresponding CHWM offset.
Table 5 Impact of Energy on CHWM Offset,'.
Current Headroom
Distro Efficiency
Res DHP
Res HPWH
Comm Res Lighting
TOTAL
System Analysis
kWh
992,113
8,485,840
14,150,869
3,254,341
1,185, 078
28,068,240
System Hourly Loads (10/1/2011 5/31/2013)
a. Meter 152 Out
aMW
1.133
0.969
1.615
0.372
0.135
4.223
CHWM Offset
3.4%
2.9%
4.8%
1.1%
0.4%
12.6%
The following data sources were used to assess the City's demand and energy use profile in
relation to the City's power supply expenses:
Page 4 of 9
b. Meter 251- Out
c. Meter 1564 In
d. Meter 459 Out
e. Meter 158 In
BPA Power and Transmission Bills (10/1/2011 5/31/2013)
Figure 2 shows the City's 2012 high water mark (HWM) and the system load with and without
the residential programs discussed above. An additional 9% of headroom under the TIER 1
pricing would be available to the City for new load.
300„4
90.00
moo
PortAngelespotential additional haadroom from savings (aMW)
Figure 2
F<ttmated }.5 aMW adriAirn ad
nM,y
N +ua+y
February Morn APN Mry Arno 30Jy Aig..st Septenber October tovamber Oe•C,ber
Ad/Yrnaf HI.* OCT bang Headrooa -HWM -C,ty System uotl 1).4P .PWH Say.n3s. at 0W -CSy System toad. akAW
Figure 3 illustrates the City's hourly system loads in 2012. In addition the monthly customer
system peak (CSP) and the sum of the City's average heavy load hour energy (aHLH) and
contract demand quantity (CDQ) are shown.
As noted in February, the difference between the CSP and the sum of the aHLH and CDQ is the
demand billing determinant on the BPA power bill. The resulting demand charge is shown.
Based on this chart, in the month of February there were just two occasions that the City's
demand exceeded the sum of the aHLH and CDQ. If the City was able to target those periods, a
reduction of nearly $55,000 could be achieved in the single month. Figure 4 shows February in
more detail.
In 2012, the City's demand exceeded the sum of the aHLH and CDQ a total of 25 hours or 0.28
percent of the year.
Page 5 of 9
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Figure 3
2012 City Hourly Loads with CSP and CDQ
This chart shows a single year only, and may not be predictive of the City's future Toad.
Page 6 of 9
Figure 4
February 2012 Hourly Loads with Results BPA Demand Charge
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
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140,000
Feb -12
120,000
100,000
80,000
E
60,000
cu
40,000
20,000
0
Demand Charge System Demand, kW Sum of CDQ and aHLH CSP Demand
tn
VI
Figures 5 and 6 illustrate the City's heavy load hour (HLH) and light load hour (LLH) loads against
the HLH and LLH Toad shaping charges or credits incurred by the City.
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Annual Bill Estimate
Current Equipment
New Equipment
w/ HPWH
w/ DHP
w/ All Measures
Customer Cost (from Basic Charge)
Energy Cost
$189
$1,109
$189
$1,006
$189
$867
$189
$763
TOTAL BILL
$1,298
$1,195
$1,056
$952
Estimated Annual Savings
$103
$242
$346
Page 9 of 9
Customer Load Profile Tool
EES is also working on a customer analysis tool that will take a single customer's annual hourly
Toad information and show the impact of installing either a HPWH or a ductless HP, or both
units, and quantify the customer's energy savings. Similar to the system level analysis, the
demand charges from the BPA bills will be shown to illustrate to the customer the periods that
induce higher power costs. Figure 7 shows an illustration of possible results from this tool.
8,000
7,000
6,000
5,000
4,000
d
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3,000
2,000
1,000
Jan -12
Figure 7
SAMPLE CUSTOMER
Potential Energy Savings by Month for Residential Customer
$54,431
System Load Shape, kWh (NOT TO SCALE)
Feb -12 Mar -12 Apr -12 May -12 Jun -12 Jul -12
City System Demand Costs Customer Load, kWh
Customer Load with DHP savings Customer Load with All Savings
Customer Load Shape, kWh
mm l
Customer Load Shape with All Savings, kWh $2.538
Aug -12 Sep -12 Oct -12
Customer Load with HPWH savings
--System Load, kWh NOT TO SCALE
Nov -12
$23,749
Dec -12
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•::}FCS GROUP
Solutions-Ork.nted Consulting
Notice to proceed May 8
Data received
Analysis initiated
Incorporate input from Council/UAC
Begin internal review of draft results
V' Solid Waste transfer station collection
v/ Water/sewer
v Electric/telecommunications
Page 2
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Final rates developed for each utility should align
with the City's policies and priorities and advance
the objectives identified for each utility
Discuss the issues, priorities and objectives that
should be considered during the rate study
process
Identify questions that need to be answered by
the rate study
PC S GROUP Page 4
S t<u 5 -O r nt ('c n
GehaI
Reserve levels targets
Level of depreciation funding
2 Level of debt funding
One-time rate increases or small annual increases
FJ Use of cash reserves to minimize rate impacts
Customer class cost of service adjustments one
time or phase-in
Meet fiscal targets year one or by end of planning
period
Others
FCS CROUP
So lutions-OL.nted Consu !brig
Page 5
ectives/Issues
Solid waste and yard waste minimum fees
Identify co-composting costs
Others
,7
r
FCS GROUP
Solution, Cgt,tiltIng memo(
Page 6
Ei Identify cost for curbside collection of
recyclables
Evaluate changes to frequency of pickups for
recycling
Yard waste cost of service/adequacy of rates
Others
FCS GROUP
Solullom-Orwrited Consulting
Page 7
jec Ives
4 FCS GROUP
ioluthons- Oriccntoci Consulting
Fixed and variable costs /revenue alignment
Water efficiency rule funding
Rate Design
✓Conservation rate effectiveness (rate blocks)
Evaluate fixed charge to limit revenue risk
Others
Page 8
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FCS CROUP
olutions-Oncnted Coniu long
Fixed and variable costs/revenue alignment
Rate Design
V Commodity (volume) based rate structure
s Evaluate fixed charge to limit revenue risk
Others
sf(
Page 9
.:.:>FCS GROUP
Solu Oric mod Cons' Itrng
Fixed and variable cost review
Utility discounts
Rate design
v Alternative rate design considerations (higher base fee with
energy included)
New or expanded loads
3 Others
Page 10
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