Loading...
HomeMy WebLinkAboutAgenda Packet 10/13/2009 Utility Advisory Committee Public Works Conference Room Port Angeles, W A 98362 October 13, 2009 3pm AGENDA I Call to Order II Roll Call III Approval Of Mmutes For September 9,2009 IV Late Items V DISCUSSIOn Items A Bonneville Power AdmmlstratlOn Notice for Tier 2 Power Supply B Energy Northwest Interlocal Agreement for the Morse Creek Hydroelectnc Project C Western Public AgenCies Group Direct Load Control Feasibility Study D Compact Fluorescent Lamp Markdown PromotIOn Agreement E Utility AdvIsory Committee Industnal Customer Member ReSignation FUtility Retall Rate and Fee Adjustments G lndustnal Customer Power Sales Agreement H ConservatIOn Loan Deduction VI Information Only Items A US Department of Energy Advanced Waterpower Grant ApplicatIOn B Northwest Power and ConservatIOn Council's Draft Sixth Northwest Power Plan C Energy Independence Secunty Act of2007 Mandatory ConSideratIon of Standards D Network Needs Assessment and Public Safety ConsideratIOns Update VII Next Meetmg Date November 10, 2009 VIII Adjournment N \uac\final\I01309 UTILITY ADVIi~Y COMMITTEE }o I~ 09- GUEST SIGN UP SHEET PRINT NAME ORGANIZATION "S...O-\~ \ , , N \PWKS \LIGHT\ CONS\ CATE \ SIGNUP wpd Utility AdvIsory CommIttee Public Works Conference Room Port Angeles, W A 98362 September 8, 2009 1 30 P m ~~.A .,~,.. I. Call To Order ChaIrman Reed called the meetmg to order at 1 30 p.m II. Roll Call Members Present ChaIrman Reed, Dan DI GUlllO, OrvIlle Call1pbell )omted the meetmg at 1 48, Betsy Wharton, Karen Rogers Members Absent None Staff Present Kent Myers )omed the meetmg at 3 30, BIll Bloor, Glenn Cutler, Yvonne ZIomkowskI, Steve Sperr, Larry Dunbar, Kathryn Neal, PhIl Lusk, Cate Rmehart Others Present DIane C Nelson - League Of Women Voters III. Approval Of Minutes ChaIrman Reed asked If there were any correctIOns to the mmutes of August 11,2009 CouncIlman DI GUllio moved to approve the mmutes CouncIlmember Rogers seconded the motion, whIch carned unanImously CouncIlmember Wharton abstamed due to absence ChaIrman Reed asked If there were any corrections to the mmutes of August 25, 2009 CounCIlman DI GUllio moved to approve the mmutes CouncIlmember Rogers seconded the motion, whIch carned unammously CouncIlmember Wharton abstamed due to absence IV. Late Items: None V. DiSCUSSIOn Items: A. Post-Closure Landfill Consultant Agreement Amendment No.1 Kathryn Neal, Engmeenng Manager, adVIsed that It was necessary to amend the agreement to cover unforeseen costs such as addItlOnal groundwater wells and reqUIrements for momtonng the seawall and beach morphology There was a bnef dlscusslOn Councilmember Rogers moved to recommend City Council authorize the Mayor to sign Amendment No. I to the consultant agreement with Aspect Consulting for Landfill UtilIty AdvIsory CommIttee September 8, 2009 Engineering in an amonnt not to exceed $12,000 in 2009 and $115,100 in 2010, which increases the maximum compensation under the agreement from $58,000 to $185,100, and authorize the City Manager to make minor modifications to the agreement, if necessary Councilman Di Guilio seconded the motion, which carried unanimously. B. Bonneville Power Administration Energy Conservation Agreement PhIl Lusk, Power Resources Manager, advIsed that BP A offered the CIty an agreement whIch covers a five-year penod allowmg a smooth transItion between rate penods and would provIde addItIOnal fundmg to the CIty for local conservatIOn efforts A dISCUSSIOn followed Councilmember Rogers moved to recommend City Council authorize the Mayor to accept the Energy Conservation Agreement with the Bonneville Power Administration. Councilmember Wharton seconded the motion, which carried unanimously. C. Bonneville Power Administration Wholesale Power Rate Adjustments Phll Lusk, Power Resources Manager, pomted out that BPA released It'S final record of deCISIOn on wholesale power rates and that the CIty was offered a new "stepped-rate" optIOn to Implement half of the rate mcrease thIS October and the remamder next October It was the consensus of the group to proceed WIth the posted rate and declme the "stepped-rate" optIOn There was a bnef dISCUSSIOn Councilmember Wharton moved to recommend City Council accept the Bonneville Power Administration's posted ~holesale power rates. Councilman Di Guilio seconded the motion, which carried unanimously with the exception of Council member Rogers who opposed. D. Utility Retail Rate And Fee Adjustments Larry Dunbar, Deputy DIrector of Power Systems, dlstnbuted a handout and gave a presentatIOn based upon that mformatlOn There was a lengthy dISCUSSIOn Councilman Di Guilio moved to recommend City Council proceed with a public hearing on utility rate and fee adjustments for the Electric, Water, Wastewater, Solid Waste collection, and Transfer Station Utilities. Councilmember Rogers seconded the motion, which carried unanimously. E. Northwest Energy Efficiency Alliance Contribution Phll Lusk, Power Resources Manager, explamed that the ConservatIOn Rate Credit program ends on September 30, 2009 and that the resIdual balance needs to eIther be returned to BonneVIlle or contnbuted to the Northwest Energy EffiCIency Alhance to spend m a regIOnal conservatIOn UtIlIty AdvIsory CommIttee September 8, 2009 effort A dIscussIOn followed. Councilmember Wharton moved to recommend City Council authorize a contribution to the Northwest Energy Efficiency Alliance in an amount up to $150,000. Orville Campbell seconded the motion, which carried unanimously. F. Western Public Agencies Group consulting Agreement Amendment No.1 Larry Dunbar, Deputy DIrector of Power Systems, adVIsed that due to the complexIty of several key Issues that reqUIred more consultmg tIme than antIcIpated the CIty's cost of membershIp wIll mcrease A dIscussIOn followed Council member Wharton moved to recommend City Council authorize the City Manager to sign an amendment to the agreemeut with EES Consulting, Inc., and Marsh Mundorf Pratt Sullivan & McKenzie in an amount not to exceed $4,056, which increases the maximum compensation under the agreement from $10,365 to $14,421. Councilmember Rogers seconded the motion, which carried unanimously. G. Bonneville Power Admmistration Power Sales Agreement Amendment No.1 Larry Dunbar, Deputy DIrector of Power Systems, noted that the CIty had been offered an optIOnal amendment to the Power Sales agreement whIch IS consIstent WIth the TIered Rate Methodology There was a bnef dIscussIon Councilmember Rogers moved to recommend City Council authorize the Mayor to accept amendment No.1 to the Power Sales Agreement with the Bonneville Power Administration. Council member Wharton seconded the motion, which carried unanimously. H. Transmission Agreement For The Morse Creek Hydroelectric Project Larry Dunbar, Deputy DIrector of Power Systems, explamed that the TransmIssIOn Agreement for the Morse Creek Hydroelectnc Project and Clallam County PUD had expIred and a new agreement would contmue to provIde servIces There was a bnef dIscussIOn. Orville Campbell moved to recommend City Council authorize the Mayor to accept the Transmission Agreement for the Morse Creek Hydroelectric Project with the Clallam County Public Utility District No.1, and authorize the City Manager to make minor modifications to the agreement, if necessary. Councilmember Wharton seconded the motion, which carried unanimously. 1. Bonneville Power Administration Tier 2 Power Supply Update. Larry Dunbar, Deputy DIrector of Power Systems, confirmed that the CIty needed to make a Commitment to the BonnevIlle Power AdmmlstratIon for TIer 2 power supply by November I, UtilIty AdvIsory Committee September 8, 2009 2009 PublIc presentations will contmue to be offered and conducted and a power sales agreement will be negotiated with the City's mdustnal transmiSSIOn customer Information only. No action taken. VI. Next Meeting Date: October 13, 2009 VII. Adjournment: The meetmg was adjourned at 4 18 p m Chairman Reed Cate Rmehart, Admm Spec II N IPWKSILIGHTICONSICA TEIsept8meet wpd ~ORTANGELES WAS H I N G TON, USA Utility Advisory Committee Memo Date: October 13, 2009 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Bonneville Power AdmmlstratlOn Nol1ce for Tier 2 Power Supply Summary: The City IS reqUired to make a commitment to the Bonneville Power AdministratIOn for ItS Tier 2 power supply by November 2,2009 The attached Iron Man proposal Includes selectIOn of the Tier 2 Short-Term Rate for the penod of October 2011 through September 2014 for 100% of the City's above High Water Mark loads greater than 1 average megawatt Recommendation: Forward a favorable recommendation to City Council to authorize the Director of Public Works and Utilities to notify the Bonneville Power Administration in accordance with Section 2.4.1.1 of Exhibit C of the Power Sales Agreement that the City selects the Tier 2 Short-Term Rate Alternative for the period of October 2011 through September 2014 for 100% of its above High Water Mark load greater than 1 average megawatt. Background/Analysis: On June 3-4, 2009, a power supply planmng workshop was held for City Council and Ul1lIty AdvIsory Committee members As part of the workshop, the Bonneville Power AdmmlstratlOn (BP A) and other power supply alternal1ves were presented and conSidered Dunng the workshop, a Straw Man proposal was made that mcluded selectIOn of the BP A Short- Term Tier 2 rate alternal1ve On July 14, 2009, the Ul1lIty AdvIsory Committee received a response from staff on SIX suggestIOns that were received at the workshop, and a Stone Man proposal On September 8, 2009, staff presented addll10nal mformal1on to the UtilIty AdvIsory Committee about the Short-Term and Load Growth Tier 2 rate alternatives Dunng the last few months, staff updated the Straw Man and Stone Man proposal (see attached Iron Man proposal) that mcludes selectIOn of the Tier 2 Short-Term Rate for the penod of October 2011 through September 2014 Staff provided presentatIOns on the Tier 2 power supply needs and recommended alternal1ves, and a presentatIOn for the general public IS scheduled for October 12, 2009 at 6PM m the Council Chambers Staff recommends that the Ul1lIty AdvIsory Committee forward a favorable recommendatIOn to City Council to authonze the Director of PublIc Works and Utlhl1es to nol1fy the Bonneville Power AdmmlstratlOn In accordance With SectIOn 2 4 I 1 of Exhibit C of the Power Sales Agreement that the City selects the Tier 2 Short-Term rate alternal1ve for the penod of October 2011 through September 2014 for 100% of ItS above High Water Mark load greater than I average megawatt Atachment Tier 2 Power Supply Iron Man Proposal N IUAC\FmaIIBPA Tlcr 2 Powcr Supply doc Tier 2 Power Supply Iron Man Proposal City of Port Angeles Electric Utility The City needs to nolify BPA of Its above-High Water Mark elecllon by November 2, 2009, which IS reqUIred by the Bonneville Power Administration Power Sales Agreement Page 1 10/13/2009 Tier 2 Power Supply Iron Man Proposal City of Port Angeles Electric Utility 1 Straw-Stone-lron Man Proposal Purpose This IS a business proposal that generated a large number of Ideas for the solution of our Initial Tier 2 power supply problem The Straw and Stone Man proposals were Intended to generate discussion of ItS advantages and disadvantages and to provoke the creation of a new and better proposal As part of the June 3-4, 2009 workshop, the "Straw Man" proposal was refined Into a "Stone Man" proposal by group consensus Based on additional Utility AdvIsory Committee gUidance on July 14, 2009 and September 8,2009, the Straw and Stone Man proposals evolved Into this "Iron Man" proposal 2 Tier 2 Power Supply Problem Statement On November 18, 2008, City Council approved a Power Sales Agreement with the Bonneville Power Administration (BPA) The new Power Sales Agreement will commence on October 1, 2011 and conclude on September 30, 2028 The pnmary change In the new Power Sales Agreement IS a shift from average embedded melded rates to a Tiered Rate Methodology (TRM) TRM IS composed of a two-level pnclng construct In which Tier 1 supply IS limited to the output of the federal based system, and the rates for which are based on the cost of those resources The output of the federal based system IS anticipated to diminish dUring the term of the agreement which Will have the same effect as Increasing the City's Tier 2 power supply needs Tier 1 Will serve the City'S current load Tier 2 serves load In excess of that served by Tier 1 at a rate (or rates) based on the cost of new resources At the time of execution of the new agreement It was anticipated that about 97% of the City's power supply would Initially be provided by BPA under the Tier 1 rate It was understood that Tier 1 costs would be similar to average embedded costs at that time We expected the remaining 3% of the City's power supply needs could be provided by BPA under a Tier 2 rate alternative Based on the most recent BPA load forecast and transition period high water marks, the City's Tier 2 power supply needs Will begin In October of 2011 In the amount of 0 145 aMW or 0 2% , Increasing to 0 569 aMW In October of 2012, and 1 026 aMW or 1 2% of the City's power supply In October of 2013 Tier 2 loads below 1 0 AMW Will be covered under load shaping charges Note the significant difference between what was anticipated upon execution of the new Power Sales Agreement and the recent BPA load forecast The City'S Tier 2 exposure was delayed two years and IS about one-third of the Initially anticipated amount Anticipating histOrical customer growth rates, It IS anticipated that within twenty years 8% of the City's power supply may fall under the Tier 2 power supply with a projected wholesale power supply cost Increase of 11 % A Tier 2 commitment to BPA must be provided by November 2, 2009, which would cover the 3-year period from October 2011 through September of 2014 or a longer term depending on the rate alternative selected Power supply resources other than BPA can be used to serve all or part of the City's Tier 2 loads Page 2 10/13/2009 Tier 2 Power Supply Iron Man Proposal City of Port Angeles Electric Utility Similar considerations need to be made In the future with the next decIsion due pnor to September 30, 2011 for the 5-year penod of October 2014 through September 2019 3 Tier 2 Power Supplv Options There are three general options available to the City to satisfy ItS Tier 2 power supply Including. 1) continued reliance on SPA, 2) diversify all Tier 2 load to non-SPA supply; and 3) do a portion of Tier 2 with SPA and the remainder with non-SPA power supply The options are recommended to be separately applied to the City's dlstnbutlon customers (e g , residential and commercial rate classes) and the Industnal transmission rate class Although the SPA Power Sales Agreement does not reqUire the City to allocate Tier 1 or 2 power supply to ItS residential, commercial, and Industnal transmission rate classes, allocations are considered In the following options and altematives. 3 A Continue Reliance on SPA for Part or All of Tier 2 Power Supplv This option can Include the Short-Term, Load Growth, and Vintage rate alternatives If the Short-Term rate alternative IS selected, a future deCISion Will need to be made pnor to September 30, 2011 to diverSify or continue With that selection or the Load Growth or Vintage rate alternative The main advantage of this alternative IS that It'S simple and SPA would have more capability than the City to obtain favorable pnclng This alternative limits the City's nsk to the rates that SPA sets every two years The key disadvantage IS that similar to the approximately $20 million expense for today's purchased power, the future Tier 2 wholesale power purchases Will flow out of Port Angeles providing no local economic benefits The estimated net present value of this option based on SPA Indlcatrve pnclng and a market forecast for the contract term IS $30 8 million, which need to be allocated to dlstnbutlon customers and the Industnal transmission rate class The anticipated cumulative wholesale Tier 2 power supply Increase IS estimated to be 11 2% In year 2028 The anticipated wholesale Tier 2 power supply Increase IS estimated to be 0 9% In 2014 The Initial Tiered Rates Will not be set by SPA until some time In 2011 Another disadvantage IS that there would be minimal, If any, wholesale rate signal for conservation since the majority of costs would be take/don't take but pay However, a load shaping credit may be available, which SPA Will be set every two years, that could provide a conservation rate signal After each two year rate penod conservation could reduce Tier 2 needs The Tier 2 rate alternatives could be the same, different or a combination for the City's dlstnbutlon customers (e g , residential and commercial rate classes) and Industnal transmission rate class For example, the City could select 0 622 aMW for Short-Term and 0.300 aMW for Load Growth for dlstnbutlon customers and o 104 aMW for Short Term for the Industnal Transmission rate class Page 3 10/13/2009 Tier 2 Power Supply Iron Man Proposal City of Port Angeles Electric Utility 3 B Diversify from BPA This option can Include a combination of any BPA rate alternative (1-3 below) with any other alternative (4-8 below) For example, the City can select the Short-Term Tier 2 rate alternative for part of ItS Tier 2 needs and additional conservation within the City for the balance of ItS Tier 2 needs All loads above Tier 1 In excess of 1 0 aMW must be either served by a non-federal resource, a Tier 2 rate alternative, or a combination of both There are several altematlves that should be carefully conSidered as part of decIsion-making A bnef summary of each alternative and ItS advantages and disadvantages IS proVided below. The alternatives are not mutually exclUSive, combining alternatives to form a resource portfolio are pOSSible 3 B 1 BPA Short-Term Tier 2 Rate Alternative This rate altematlve mayor may not prOVide the least cost approach In the long-run and Will depend on the market Selection of this alternative could proVide the City until October of 2014 to develop ItS Initial 0 922 aMW Tier 2 resources for the dlstnbutlon system The main advantage of this BPA alternative IS that It proVides the most fleXibility of all BPA Tier 2 rate alternatives and additional time 3 B 2 BPA Load Growth Tier 2 Rate Altematlve Depending on market conditions at the time of selection, which Will Include BPA resetting the rate every two years In a rate case proceeding, thiS rate alternative may proVide the least cost approach In the long run If the Short-Term rate alternative IS Initially selected the City could deCide to select the Load Growth alternative as part of ItS September 30, 2011 deCISion If thiS alternative IS Initially selected for some or all of the City's Tier 2 needs, the City can elect to use other options at a later date but cannot remove load actually served by BPA under thiS option through the term of the Power Sales Agreement ending In year 2028 With proper notice the City could exercise a one-time termination of future new purchases under thiS alternative LiqUidated damages may apply 3 B 3 BPA VlntaQe Tier 2 Rate Altematlves This Wind based resource alternative should only be conSidered If the City was required by Federal or State law to develop a renewable resource portfolio The Vintage alternatives (market With least cost resource and least cost resource) are not gOing to be initially available. Selection of the Short-Term rate altematlve would preserve future conSideration of Vintage rate alternatives 3 B 4 Additional Conservation Perhaps the most fleXible, least nsk, and lowest cost power resource IS pursUit of additional conservation The Conservation Potential Study Indicates there are Significant conservation "negawatts" available that have the same effect as traditional generation resources ThiS alternative by Itself could prOVide the Initial 0 922 aMW Tier 2 resources for the dlstnbutlon Page 4 10/13/2009 , Tier 2 Power Supply Iron Man Proposal City of Port Angeles Electric Utility system Conservation by Itself may not be able to satisfy all of the City'S Tier 2 power supply needs dunng the term of the new Power Sales Agreement 3 B 5 Enerov Northwest Purchase Power Aoreements The advantage of this altematlve IS nsk shanng and development, operation and maintenance of large commercial facilities by an expenenced provider Possible disadvantages could be transmission, no local economic multiplier benefits, and reliance on a single generation source 3 B 6 Enerov Northwest Landfill Gas Generation The key advantage of this alternative IS City ownership and control of a resource within the City that provides local economic benefits The City could partner with Energy Northwest to develop, operate and maintain this facIlity, which would provide renewable energy credits The main disadvantages are that gas production declines over time, the cost of integrating the resource Into the BPA supply, and the City would have capital and operating nsk similar to ItS Morse Creek hydro project 3 B 7 Biomass Cooeneratlon The advantage of this alternative may be non- City Investment In a project that could provide local economic benefits The main disadvantages of cogeneration IS a pnmary focus by the customer to serve production load versus utility load, and capital, operating and fuel nsks The City could partner with Energy Northwest to further consider a project 3 B 8 Market Purchases Compared to the Short-Term and Load Growth rate alternatives, the main disadvantage of this alternative IS that the City's Tier 2 needs by Itself have little market influence, Bonneville's rate alternatives would likely provide better pnclng 4 Stone Man Proposal Staff recommends that the City minimizes ItS Tier 2 power purchases from the BPA The proposal would require several City actions between now and September 30,2014 As part of the recommendation, staff believes that time IS needed to develop a "no regrets" resource portfolio, hence a continUing need for Tier 2 Short-Term power supply from the BPA Several strategic goals should be conSidered for the Electnc Utility to maXimize local benefits and minimize nsks of the Tier 2 power supply High High Benefit Low Risk "No Regrets" High Benefit High Risk "A Big Bet" - ;;:: Gl C Gl III Low Benefit Low Risk "Bad Outcome" Low Benefit High Risk "Worst Outcome" Low High Risk Page 5 10/13/2009 I Tier 2 Power Supply Iron Man Proposal City of Port Angeles Electric Utility The Iron Man proposal Includes the follOWing 4 A Selection of the BPA Short-Term Tier 2 rate alternative for the dlstnbutlon system and Industnal transmission rate class This Will continue to satisfy the City's overall Tier 2 power supply through September of 2014 4 B Proceeding with expanded residential, commercial, and City facIlity conservation programs consistent with the Conservation Potential Study "Base" recommendation (0 32 aMW per year) to satisfy remaining Tier 2 power supply needs for the dlstnbutlon system through 2014 Staff Will Include an expanded conservation program that would double City efforts In the 2010 proposed budget, and would be maintained through 2014 at the same level Staff also recommends that the City facIlitate any Industnal transmission rate class Initiated conservation programs that qualify for BPA program funding Anticipating the expanded conservation program costs through 2014 are paid uSing cash versus debt financing, the anticipated rate Impact IS estimated to be 1 8% or $1 55 per month per residential customer The anticipated cost of conservation IS $30 per MWh and the BPA Indicative pnce for the Tier 2 Short-Term rate alternative IS $54 per MWh 4 C Continue to have a wholesale rate structure for the Industnal transmission rate class that's similar to today A power sales agreement has been negotiated with the Industnal rate class The agreement Includes the Short- Term Tier 2 rate alternative and other Items such as customer charges, payment assurances, and billing procedures Similar to the November 2, 2009 deadline, the City must make another Tier 2 power supply decIsion by September 30, 2011 for the penod of October 2014 -September 2019 Staff recommends that a power supply workshop be held In early 2011 to reassess ItS Tier 2 power supply needs The Initial Tier 1 & 2 rates and Resource Support Services should be known at that time, which could be a gUidepost for a future strategy At that time we should reassess 4 0 The costs, nsks, and benefits of avoiding BPA Tier 2 rate alternatives for the penod of October 2014 and beyond for ItS dlstnbutlon customers 4 E To revIsit the opportunity of a City owned Landfill Gas Generation project Including the evaluation of other local generation alternatives Other options to the Landfill gas Generation project Will be evaluated Including possible sale of the landfill gas or ItS use for fueling some of the City's fleet Staff has Included consulting services In the 2010 proposed budget to further study alternative uses of landfill gas Page 6 10/13/2009 , Tier 2 Power Supply Iron Man Proposal City of Port Angeles Electric Utility 4 F To reVIsit biomass cogeneration opportunities within Port Angeles through a purchase power agreement as needed to satisfy the City's Tier 2 power supply needs Staff believes the follOWing Items are crucial to the success of diversifying ItS Tier 2 power supply from SPA 4 G Acknowledge that the City IS becoming responsible for ItS Tier 2 power supply and that power supply should be "long" versus "short" The Washington State renewable portfolio standard does not apply to the City and that the City would continue to voluntarily support conservation In the absence of any current State or federal mandate The Westem Climate Initiative does not Include any mandates at this tIme, but the State IS developing mandatory greenhouse gas reporting requirements that may be applicable In the future 4 H That future City sponsored conservation programs should be maintained at a consistent and predictable level 4 I That renewable energy credits aSSigned to the City's Tier 1 power purchases should be resold by the City and the revenues used to offset the City's cost of developing ItS Tier 2 power supply The preliminary Tier 1 Renewable Energy Credit (REC) estimate IS about 2 5 aMW which has a current annual market value In the range of $5 to $10 per REC, and may prOVide from $100,000 to $200,000 per year 4.J That consulting services are Included In the 2010 proposed budget for designing new retail rates based on wholesale tiered rates antIcIpatIng changes Will be needed In 2011 As part of thiS effort conservation rate designs Will be evaluated that help create economic momentum toward conservation and energy effiCiency As part of the future Tiered rates the power supply Will need to be allocated to distribution customers and the Industrial rate class The potential for fuel SWitching for water heating, space heating, and cooking Will also be explored Customer communications about retail rate design changes Will need to begin In 2010 4 K Technology needs are Included In the 2010 proposed budget such as Advanced Metering Infrastructure (AMI), Supervisory Control and Data AcquIsition (SCADA) upgrades, conservation voltage reduction, and peak demand management SPA programs for Smart Grid and Demand Response Will also be pursued 4 L There are other local power resources that may be commercially feaSible In the future such as biomass energy development In Clallam County, solid Page 7 10/13/2009 , Tier 2 Power Supply Iron Man Proposal City of Port Angeles Electric Utility waste converSion, hydrokinetic (wave/Mallin-stream, off-shore wind), community solar, and Incremental generation at Morse Creek Hydro Upon commercial feasibility, the City should provide a preference for local power resources that are either below or similar to the avoided cost of other non- local resources 4 M There may be legislative Issues that the City may want to consider such as Washington State House Bill 1811 , which could have Increased the benefits of the City's Morse Creek hydro project 5 Staff GUidance Staff requested and received gUidance from the Utility AdvIsory Committee on the Straw and Stone Man proposals Staff will request City Council consideration no later than the October 20, 2009 to ensure compliance with the November 2, 2009 BPA Tier 2 notice deadline Page 8 10/13/2009 95.00 90.00 ~ 85.00 ~ ~ "tl :g 80.00 ..J 75.00 Port Angeles -- - -- C I::] r'"" -==-~Cl""'c::l CI C 1:::1 C C C . - -- ". - " tJ' ...... ~-.. - -forecast - / Ii actual x CY 2008 Ii Wea AdJ - Est HWM c c Esl HWM + 1 MW , , 70.00 2004 Loads Port Angeles 2009 FY 2014 2019 Forecasle Forecasted Forecasted Forecasted Forecasted Forecasted Forecasled d Forecasled Forecasted Load Load Load Load Load Load Load Load Load FY 2010 2012 2013 2014 2015 2020 2024 2028 2014 Load (MWa) 8529 87.51 87.94 88.39 8886 9124 9335 9528 8839 Annual Growth Rate 13% 10% 09% 08% 07% 06% 06% Above HWM amount N/A 015 058 1.03 1.50 3.88 5.99 7.92 1.03 Tier 2 amount Port Angeles Projected Customer Loads and Forecast High Water Marks for Regional Dialogue Forecast Forecast Adj Load 1/, Transition AdJ Load 2/ HWM 1/,2/ 2010 2012 TOTAL Projected Sales 1/ 6,920 7,088 7,238 Tl System Fmn Crztlcal Output (2 year average) --LaRIS Study 55 3/ 0 7,088 7,088 Forecast Impiled AUGMENTATION for Tier 14/ 0 0 0 Total Prolected Tiler I System Capability 0 7,088 7.088 Total MaXImum Projected Tier 2 (BP A servIng all load above Tier I) 0 0 144 Total Maximum Prolected BPA Purchases (TICr I & Tier 2) 0 0 144 Port Angeles TranslUon Penod Forecast Forecast Total Load 1/, Adj Load 1/, Forecasted Above HWM Forecasted Above HWM Forecasted Above HWM Forecasted 2/ Resources 5/ 2/ Transition Load load Load load Load load Load 2010 2010 2010 HWM 2012 2012 2013 2013 2014 2014 2019 8529 0 8529 87361 8751 0,15 8794 058 88.39_ 9064 1 3% ann Growth Rate 07% VerSiOn Date 03/02/2009 Name NOTES 1/ These projectIons reflect BPA Load ForecastIng's latest offiCial TRL customer specific forecasts (Study 54) 2/ These loads do not Include load adjustments (nonnalIzatIon) descnbed In the RegIOnal DIalogue policy 3/ Tier 1 System Finn Cntlcal Output assumptIOns Include 2008 BIOp w/Adj, No Four MIle HIlL no WNP3 Settlement return ThIs figure represents the average of the projected T] SFCO for FY2012 and 20] 3 to reflect the CGS refuelIng cycle 4/ Projected augmentatIOn does not Include any for new publics or DOE-Rlchland Of this amount 15 aMW have already been secured (KlondIke lll) 5/ Resources by customer reflect the EXistIng Resources for CHWM and 128 6 aMW of estimated NLSL (NLSLs . Pend Orellle - 63 6 aMW EWE - 35 aMW, Cowlitz - 25 aMW and Flathead - 5 aMW net after Green ExceptIOn) 6/ Reflects removal of Centralla Replacement Resource consistent With RegIOnal Dialogue Policy 7/ If Above HWM load IS less than I aMW BPA WIll serve under Its Load ShapIng charges No actIon by Customer IS reqUired ~~.. ~..^'~ l:.:~e;:::::::;:::;p~:t..;:::;:q~Y~~====::l:===::;~.....,....,..,.~;:;;~ir~~l;l.~:.~t:l===::.T~C:::::;c::::::::::it.'c::::::=p:::::::-t;;~====r::r:::::::;"':''====P:::;:::;~::;===~-_ + ~~- -~ Tier 2 Indicative Pricing John Wellschlager BPA Account Executive - Bulk Hub leVA September 17, 2009 . SPA Renewable RFI 19 d eve opers. renewa e prolects Technology Location Total MW First Year Pnce - Range ($/MWh) Geothermal OR/WA < 20 $90 PV BC 30 TBD Biomass BC,MT 102 - 110 $115 Biogas OR/WA < 20 $140 Solar OR/WA,NV 182 - 268 $180 - 220 Hydro BC 314 $57*-150 Wind BC, OR, UT, WA, 3,880 - 4,285 $65 -198 AB, MT 52 bl . All prices Include the cost of RECs with the exception of one particular hydro proposal DI,CUS'lOn PUlpose, Only Slide 3 . . Summary of Tier 2 Rate Alternatives ;,,';IP(StentL~lt~1~~'~"~'tE'~J!I~!lq~~t,ed' :"~:~~'ft~Qf~\~r~~!~~~~1:,' :;: to~1;'~r(2~~Bat~~Rool,~,::" ' ~t'l~'~'l;i'~~'!Mi:,~~'~f~'~:' ":~~; . 1 , ,..Ii"'...."" lJ.>"\, ~~- "'Jo,..l q,"_.::.' ~ i' "1, ,'~ ~..".., ~ " r'( .\ ",,#"'l;~^'~ a~!",,",~1<-;'~41:"'M\''\-' '''.: ~,.-.J;", ' .' 4~_ ~. "~.k, I'" V '"it'"''''' "15. .,.'lI:'V "t' ' ", ,''J~,O -" ". , "', evo ve ave Ime as we ge ,more'!,:'\/ ~ ' I " '," ,: 'i' 1\';#"'~-"t'0~'C~/jt,,"0Pkl't:V':ki.,}i4/j'/ltJt'J"''o/ ,~~'t; ~ 'dtf" .I,....,J ii, l ~;:'J: "I , m,orma Ion a ou 'avatla le'resources'an ',^', ,J' "', ',,~,'l" : ,." ,< " ;,~: ,1j';i~&:"","f;tc"u's'to'"m',Je"r"n"'e'e""'s"~a'n' tdt'n"te";e' s"ts)' +: ,"~'- "";' " ' ,f, '/'1,~~~. '-'\~~ "':,.' J<.~\l;";~ ~ ,U"~~._ 'I : ,~, ." Short-Term (3-5 yrs) Short-Term market purchases (5 years or less in duration) Purchases dnven by lowest cost market opportunities Load Growth (14 or 17 yrs) A mix of short & long term purchases (examples could Include, Renewables, CCCT, Waste Energy Gen, Market Purchases) Resource selection pnmanly dnven by lowest life cycle cost Vintage (upt017yrs) Based on customer Interest (Wind, Geothermal, Solar, Waste Energy Generation, CCCT) Resource selection dnven by targeted resource & lowest life cycle cost D,SCUSSion PLIrpose~ Only Unlikely Potential that some level of RECs could be provided over the course of the contract Yes, for most renewable- based Vintage Rate Alternatives Slide 4 What's in our fully loaded cost? · Power Purchase Price · Resource Support Services - Diurnal Flattening service - Forced Outage Reserves - Transmission Scheduling Services · Resource Shaping Charge - varies by resource · Tier 2 Overhead · Risk Adder or Bond Cost · Transmission Costs - Third Party PTP - as applicable - Ancillary Services - such wind integration rates for Regulation, Following & Imbalance - Operating Reserves - Losses DISCUSSion Purpo,es Only Slide 5 Tier 2 Levelized Indicative Pricing 1 sl year Fully Tier 2 PF Rate Resource Cost Busbar Loaded Alternative REC's Basis Cost Cost Short-Term (3 yrs) No Market Quote $ 49 $52 Vintage - Market (8 yrs) No Market Quote $ 49 $ 55 Vintage - Wind A (17 yrs) Yes RFI - PPA $78 $113 Vintage - Wind B (17 yrs) Yes RFI-PPA $100 $124 Vintage - Biomass (17 Market - PPA yrs) Yes Not In BA $94 $118 PPA - carbon Vintage - CCCT (17 yrs) No cost pass thru $68 $86 Load Growth A (17 yrs) Possible Modeled NA $59 Load Growth B (17 yrs) possible Modeled NA $85 DISCU~Slon Purposes Only Slide 7 - =-'= . ~ ~-~~~~l'4 -~\f ,..............,.,'~~.".,...,......===:JB_'"\.~~~-.:J,........,..... ~ ,- ~. < ~ Important considerations for any long- term acquisitions - Fuel cost & supply uncertainty (and volatility) - Construction cost cycles (currently on the downturn) - Financing costs & capital structure - Expected utilization & operating profile - Overall portfolio structure & diversity (how will this resource fit in with your existing supply mix) - Creditworthiness & counterparty risks - Power Management overhead costs - Experience & Supplier relationships - Purchase Contract Construct (efficient risk allocation, flexible dispatch, future growth) DISCUSSion Purpose, Only Slide 10 ~ORTANGELES WAS H I N G TON, USA Utility Advisory Committee Memo Date: October 13, 2009 To: Utility Advisory Committee From: Terry DahlqUIst, P E , Electncal Engmeenng Manager Subject: Energy Northwest lnterlocal Agreement for the Morse Creek Hydroelectnc Project Summary: Energy Northwest possesses expertIse that can be used to upgrade the SupervIsory Control and Data AcqUIsItIOn (SCADA) System for the Morse Creek Hydroelectnc Project Recommendation: Forward a favorable recommendation to City Council to authorize the Mayor to sign an interlocal agreement with Energy Northwest in an amount not to exceed $45,000, and authorize the City Manager to make minor modifications to the agreement, if necessary. Background/Analysis: On July 15, 2008, CIty Councll approved a resolutIon to become a member of Energy Northwest Energy Northwest has the authonty to acqUIre, construct, operate and own plants, systems and other faclhtIes for the generatIOn and/or transmIssIon of electnc energy and power The mam reason the CIty became a member of Energy Northwest was to consIder power resource alternatIves under the BonneVIlle Power AdmmlstratlOn's Tiered Rates Methodology The recent Federal Energy Regulatory CommiSSIOn hcense and Department of Ecology 401 Water Quahty CertIficatIOn created new rampmg and water temperature momtonng reqUIrements for Morse Creek Hydro The rampmg reqUirement IS to ensure that the depth of water (downstream of the generator) IS not reduced by more than 2 mches per hour after generator startup The water temperature momtonng requIrement IS to ensure that the generator discharge water temperature does not exceed 16 degrees CelclUs (60 8 degrees FahrenheIt) Energy Northwest possesses expertise that can be used to upgrade the controls and the SupervIsory Control and Data AcqUIsItIon (SCADA) System for the Morse Creek Hydroelectnc project The proposed system upgrades mclude design of an mterface to the eXlstmg electnc dlstnbutIon SCADA System, mcorporatlon of eXlstmg control pomts, additIOnal temperature and water flow sensors, mstallatlOn of a programmable logic controller and commumcatlOns to allow remote operatIOn The upgrade Will mcrease generatIOn and reduce operatmg costs SuffiCIent funds for the project are avallable m the Morse Creek Contmgency & Replacement reserve Staffrecommends that the UtIhty AdVISory CommIttee forward a favorable recommendatIOn to CIty CounCil to authonze the Mayor to sign an lnterlocal Agreement With Energy Northwest m an amount not to exceed $45,000, and authonze the City Manager to make mmor modIficatIOns to the agreement, If necessary. N \UAC\Flnal\Energy Northwest InterlocaI Agreement doc ~ORTANGELES WAS H I N G TON, USA Utility Advisory Committee Memo Date: October 13, 2009 To: Utility Advisory Committee From: Larry Dunbar, Deputy Duector of Power Systems Subject: Western Public AgencIes Group DIrect Load Control FeasIbilIty Study Summary: The CIty recently receIved a proposal from the Western Public AgencIes Group to conduct a Direct Load Control FeasIbIlity Study for the Electnc UtilIty Recommendation: Forward a favorable recommendation to City Council to authorize the City Manager to sign an agreement with EES Consulting, Inc., and Marsh Mundorf Pratt Sullivan & McKenzie in an amount not to exceed $5,000 for a Direct Load Control Feasibility Study. Background/Analysis: The Electnc Utllity IS a member of the Western Public AgencIes Group (WP AG) along wIth twenty-two other publicly owned electnc utllitles WP AG members serve more than one mIllion customers and purchase more than 6 billion kilowatt hours from the BonnevIlle Power AdmmIstratlOn (BP A) EES Consultmg, Inc , provIdes WP AG techmcal and financIal servIces and legal servIces are provIded by Marsh Mundorf Pratt Sullivan & McKenZIe Begmmng October I, 20 II, the pnmary wholesale cost savmgs opportumty under BP A TIered wholesale rates will be peak demand management Peak demand IS the maxImum rate of energy consumptIOn durmg one hour that occurs dunng each month Wholesale peak demand rates are expected to mcrease from today's range of$1 to $2 per kilowatt to a rate range between $8 and $10 per kIlowatt under the TIered Rate Methodology The CIty recently receIved a proposal from WP AG to conduct a DIrect Load Control FeasIbIlity Study Although DIrect Load Control IS not a new practLce for electnc utllitles, It has not been deployed at most utllitles purchasmg wholesale power from the BP A due to low demand rates The scope of work and schedule mcluded m WPAG's proposal IS sum man zed below Scope of work I LIterature and revIew of prevIOus pilots 2 Detenmne demand response potentIal 3 EqUipment and technology revIew 4 Benefit-cost analysIs 5 Develop scope and actIOn plan for pIlot study Schedule November 2009 November 2009 November 2009 December 2009 January 2010 N \UACIFmaIIWPAG Load Control Feaslblhty Study doc Western Pubhc AgenCles Group DIrect Load Control FeasIbIlIty Study October 13,2008 Page 2 Based on the mterest expressed by other WP AG members wtlhng to share III the cost of the study, it is antIcipated that the CIty'S cost would be less than $5,000 out ofthe $57,900 total cost A copy of the WPAG Load Control Feaslbthty Study mcludmg a descnptlOn of the scope of services tS attached Sufficient funds for the study are avmlable wlthm the current Electnc UtIhty budget Staff recommends that the UtIhty AdVisory Committee forward a favorable recommendatIOn to City Counctl to authonze the City Manager to sign an agreement with EES Consultmg, luc , and Marsh Mundorf Pratt Sulhvan & McKenzie m an amount not to exceed $5,000 for a Direct Load Control Feasibihty Study Attachment WP AG DIrect Load Control Feaslblhty Study . , II Consulting September 14, 2009 Mr Charles Dawsey Benton Rural Electnc Association Post Office Box 1150 Prosser, WA 99350 Mr Doug Nass C1allam County P U 0 Post Office Box 1090 Port Angeles, W A 98362 Mr Wayne Nelson Clark PublIc UtilitIes Post Office Box. 8900 Vancouver, WA 98668 Mr Mark KJe1land K1ttltas Cowuy PUD 1400 East Vantage HIghway EUensburg, W A 98926 Mr Lany Dunbar City of Port Angeles PO Box.1l50 Port Angeles, W A 98362 \if Dave Muller leWIS COunty P U 0 Post Office Box 330 Chehahs, W A 98532 Mr Bob Wittenberg Skamaru3 County PUD PO Box-500 Carson, WA 98610 Mr Bob Titus Clty of EUensburg 50 I N Anderson Street Ellensburg, WA 98926 Ms Steve Taylor MasonCountyPUD No 1 North21971 Highway 101 Shelton, WA 98584 Ms Wyla Wood MasonCountyPUD No 3 Post Office Box 2148 Shelton, W A 98584 Mr Doug Miller Pacific County P U 0 Post Office Box 472 Raymond, W A 98577 Mr Ray Gnnberg Penmsula Light Company Post Office Box 78 Gig Harbor, WA 98335 Mr Steve Walter Tanner Electnc cooperanve PO Box 1426 North Bend, WA 98045 Mr David Trambhe Wahklakum County POO No I POBox 248 Cathlamet, WA 98612 Mr RICk Lovely Grays Harbor County PUD POBox 480 Aberdeen, W A 98520 Mr Terry Huber Pierce County Cooperative Assoclanon clo Town of Steilacoom 1030 Roe Street Stellacoom, W A 98388 SUBJECT Proposal to ASSISt m a DIrect Load Control FeasibilIty Study Dear WP AG Managers DIrect load control m a method of demand response that utilIzes a control deVice to bnefly curtail major applIances or space condltlonmg umts - namely hot water heaters and BV AC eqUIpment m the Northwest. Wlule dIrect load control Isn't a new Idea, Jt IS gammg momentum from better technology, successful pilot programs and BP A support As utilIties plan for load growth and mcreasmg BP A demand rates, usmg controllers to shave consumer applIance load has become an Important option for demand response Additionally, these programs can proVIde enhanced system relIabilIty and reduce pnce volatilIty Demand response control can benefit both Load Followmg and SlIce customers Load Followmg customer can trumtruze potential demand charges under TRM, wluch vary from $805/kW-mo m the summer to a lugh of $957/kW-mo m the wmter by Implementmg direct load control Wlule SlIce customers Will not aVOid BP A's demand 570 KIrkland Way, SuIte 200 KIrkland, WashIngton 98033 Telephone 425 889-2700 FacSlmlle 425 889-2725 A regIstered profeSSIOnal engmeenng corporatIOn WIth offices In Kirkland, W A, Portland, OR, IndlD, CA, and Belhngham, W A 1 WPAG Managers September 14, 2009 Page 2 charge under TRM they Will be hedgmg their nsk agamst market pnces Shce customers Will be reducmg the amount of power that they need to acquue m the market dunng peak load penods when Shce/Block IS less than peak loads Demand response can be an excellent hedgmg mstrument agamst hIgh market pnces dunng cold snaps Tlus study will also provide valuable mput mto the rust TRM wholesale rate case as It Will give a valuable proxy for the proper level of the TRM demand charge Based on your request at the last WPAG meetmg, EES Consultmg has drafted thIS project scope to explore the real savmgs potential for WP AG utIhtles Scope of Services Several different tasks are requued for deslgnmg a pilot study EES Consultmg proposes the followmg tasks 1) Literature and Review of Previous Pilots a) EES Consultmg Will first perform a comprehensive hterature reVIew of available reports and pubhcatIons Tlus Will be mcluslve ofpromment programs m the regIOn, such as the Seattle City Light OpenADR program, Power Shift Program on the OlympIC Pernnsula and the GoodWatts Program m Oregon The review Will focus on the predicted vs actual demand savmgs, unplementatlOn process, program and eqUipment costs and suggested Improvements for future pilots b) AdditIonally, ESS Will contact program managers at regIOnal utIhtles and diSCUSS the practIcal expenence from theIr pIlot programs We WIll SUlllffianze the successes, ImplementatIon concerns and lessons learned from each project 2) Determine Demand Response Potential a) PreVIous pilot studies demonstrated a potentIal savmgs of 0 2-0 8 kW per household from duect load control of water heater operatIOn m the Northwest However, the savmgs a utlhty can expect wlthm thiS range depends m large part on theIr service temtory and load DIfferent segments of the electnclty consumer market produce Widely varymg savmgs from load control programs A utlhty mterested m demand response programs must have an accurate predictIon of savmgs potentIal before movmg forward WIth a program Therefore, EES Consultmg Will assess the potentIal for duect load control programs m an mdlvldual utlhty's service temtory We will compare the utIlity's dally and seasonal load shapes to past programs and determme the expected savmgs AdditIonally, EES will determme the number of households a utIhty can target by gathenng apphance saturatIons and apphcablhty rates , WPAG Managers September 14, 2009 Page 3 3) Equipment and Technology Review a) EES will mvestlgate the mam components to a direct load control system and provide a descnptlOn of each Tlus will mclude the controller, commumcatlons eqUlpments and load scheduling platform b) Cost IS an lffiportant and often varymg factor m direct load control projects Smce the market for control deVices IS devOid of standard technology and largely m ItS mfancy, prevIOus projects have used slightly different products Therefore, this sectIOn will mclude a review of potential technology optIOns and a companson of their costs WhIle the Imtlal cost of the eqUipment IS Important, mstallatlOn and mamtenance costs can also be substantial We Will mvestlgate different system deSigns (two-way commumcatlOns, automated, GE ZlgBee/Homeplug) and products from manufactures like GndPomt, AscentIQ, Inc and others used m BP A programs c) Additionally, we will conSider how standards are evolvmg at the natIOnal level EES would like to ensure that early adaptors of direct load control use technology and eqUipment that match future standards Tlus Will allow pilot programs to be scalable m the future 4) Benefit-Cost Analysis a) EES will perform a detailed benefit cost analYSIS of direct load control m a utility's service temtory The potential savmgs calculated m Task 2 Will be combmed With the required data to monetize values for these benefits If the utility IS a BP A load followmg customer, this Will speCifically address the benefits direct load has to dally load shapmg For BP A slice customers, the analYSIS will address how direct load control can offer Insurance agamst exceeding therr Tier 1 allocatIOn and thus market rate power Additionally, EES Will analyze how drrect load control Will mmrrmze potential demand charges under TRM, wluch vary from $8 05/kW-mo m the summer to a lugh of $9 57/kW-mo m the wmter, and calculate potential savmgs In addition to the demand charge savmgs, we Will mvestlgate the benefits beyond the kW demand savmgs These may mclude energy savmgs (kWh) both drrectly from the program and mdlrectly from mcreased customer awareness and subsequent changes m behaVIOr Other non-energy benefits such as water savmgs may also occur These non-demand benefits Will be defmed, discussed, and quantified where pOSSible WPAG Managers September 14, 2009 Page 4 b) EES will create different scenanos to compare how program optIOns change the benefit-cost results Tlus will detemnne . If water heater controls alone can make a demand response program cost effective, or If other space condltlOrnng urnts must be mcluded . The number of partlclpatmg households needed to make the program cost effective . What are the key pnce pomts for cost-effective programs? 5) Develop Scope and Action Plan for Pilot Study a) EES will help draft an action plan and recommendatIOns for program ImplementatIOn This will define how the utlhly's contnbutes to the "development and demonstration pdot programs" goal suggested for demand response pdots under The Council's 6th Power Plan Tlus will Include . Settmg mcentlve levels for partlclpatmg households . Estlmatmg staff time to adrmmster the program . Detemnne a target sample size . Deslgrnng marketmg and advertiSIng approaches . Evaluation and data collection Schedule and Budget The overall project will take apprmumately 4 months to complete With a start date of October 1, 2009, the project would be completed by January 31, 2010 The followmg schedule IS recommended Task I}uration Literature and ReVIew of PreVIOUS PIlots Determme Demand Response Potentlal EqUIpment and Technology ReView Benefit-Cost AnalYSIS Develop Scope and ActIOn Plan for PIlot Study October - November October - November October - November November - December January On budget, EES Consultmg bills on a time and matenals basts Our standard btllIng rates are as follows PreSident Managmg Director Manager Sernor Project Manager Project Manager $165 per hour 160 per hour 155 per hour 150 per hour 145 per hour .i . WP AG Managers September 14, 2009 Page 5 Semor Analyst Analyst or Engmeer Clencal 140 per hour .. 135 per hour 120 per hour Based on the scope of work descnbed above, the estImated total cost of tlus study IS provided below It IS assumed that tlus budget IS allocated to study participants based on the standard WP AG allocatIOn methodology Proposed Project Cost Task # Task Title Estimated Labor Cost ($) Task 1 LIterature and ReVIew of PrevIOus PIlots $11,800 Task 2 Detenmne Demand Response Potential 13,300 Task 3 EqUIpment and Technology Review 9,700 Task 4 Benefit-Cost AnalYSIS 9,600 Task 5 Develop Scope and ActIOn Plan for Pilot Study 4,500 Meetmgs 9,000 Total $57,900 We hope tlus summary proposal's scope of work, budget and schedule are responsive to your needs Please call Anne or me If you would like to participate m tlus study Thanks for tlunkmg of EES Consultmg and we look forward to hearmg back from you on tlus mterestmg project at your earliest convemence Very truly yours, j~ Gary Saleba President cc Dan Sharpe, Alder Mutual Light Company Jamleson Van Eaton, Town of Eatonvllle Daniel Brooks, Elmhurst Mutual Power & Light RoblO Rego, Lakevlew Light & Power Company Katnna Asay, CIty of Milton Isabella Dedltch, Ohop Mutual Light Company Mark Johnson, Parkland Light & Water Company Mark Burlmgame, Town of Stella co om Terry Mundorf, MMPS&M ~ORTANGELES WAS H I N G TON, USA Utility Advisory Committee Memo Date: October 13, 2009 To: Utility Advisory Committee From: Philip Lusk, Power Resources Manager Subject: Compact Fluorescent Lamp Markdown PromotiOn Agreement Summary: The City was offered a new agreement for the "Change a Light, Change the World" compact fluorescent lamp Markdown Promotion Agreement with Portland Energy ConservatiOn, lnc All City expenses under the Agreement Will be eliglb]e for reimbursement under the Bonneville Power AdmmlstratiOn's new rate credit program Recommendation: Forward a favorable recommendation to City Conncil to authorize the Pnblic Works and Utilities Director to sign the agreement and any subsequent amendments to the CFL Markdown Promotion Agreement. Background/Ana]ysis: Smce 2007, the CIty has partIcipated m the "Change a LIght, Change the World" compact fluorescent lamp (CFL) Markdown PromotiOn operated by Portland Energy Conservation, lnc (PECI) PECI recently offered the City a new agreement to extend the project's term through Apn] 30, 20]0 In the past, City payments to PECI were used to markdown CFL pnces at local retailers, whICh u]tlmately reduced the cost of CFLs purchased by CIty Electnc Utlhty customers City Electnc Utlhty customers were estimated to have purchased more than 2] ,200 specialty CFLs through the penod endmg August 3], 2009 Energy savmgs from these CFLs are estimated to be around 750,000 kWh per year, roughly enough to power 43 "average" homes m the City A specialty CFL IS any bulb other than a standard tWister-type of less than 25 watts, and IS defined as screw-m CFL, mcludmg A-lamp, candelabra, G-lamp (globe), reflectors, torpedo, dlmmab]e, three-way bulb and tWIster that IS greater than 25 watts The sIx-month extended term IS anticipated to result m additiOnal City payment of up to $25,000 to PECI All City expenses under the proposed amendment are eligIble for reimbursement under the BonneVille Power Admmlstratlon's new rate credIt program Staff requests that the Utility AdVISory Committee forward a favorable recommendatiOn to City CouncIl to authonze the Pubhc Works and UtilIties Director to SIgn the agreement and any subsequent amendments to the CFL Markdown Promotion Agreement N \UAC\Fmal\CFL Markdown PromotIOn Agreement doc ~ORTANGELES WAS H I N G TON, USA Utility Advisory Committee Memo Date: October 13, 2009 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Utlllty AdVisory Committee Industnal Customer Member Resignation Summary: The Utlllty AdVisory Committee's mdustnal customer representative has announced his resignatIOn at the end of thiS year Recommendation: Staff requests guidance on how to address the upcoming Industrial Customer member vacancy on the Utility Advisory Committee. Background/Analysis: On August 17, 2009, staff was adVised that Mr Dean Reed With Nippon Paper Industnes USA CO ,LTD Will conclude his appomtment on the Utll1ty AdVisory Committee at the end of 2009 Mr Reed has served on the Utlllty AdVISory Committee as the Industnal customer representative smce January 1,2000 He also served one term as a Planmng CommiSSIOner and was part of the group that produced the City's Shorelme Master Program Mr Reed's Ideas, mput, enthusJasm and leadership have helped gUide the City's electnc, telecommumcatlOns, water, wastewater, solld waste and stormwater utlllt1es on pollcy and operatIOnal Issues dunng the last ten years Staff smcerely appreciates his service to the committee and expertise on electnc power, mdustnal water, and Elwha water mitigatIOn Accordmg to City CounCil's Rules of Procedure, the first step to fillmg the vacancy IS to sollclt for volunteers For thiS vacancy, staff would contact the City's only Industnal TransmissIOn electnc rate class customer, Nippon Paper Industnes USA CO , L TO, requestmg they designate a representative that would submit an appllcatlon to serve on the Utlllty AdVISory Committee Staff requests guidance on how to address the upcommg Industnal Customer member vacancy on the Utlllty AdVisory CommIttee N \UAC\Fma]\UAC Membership Vacancy doc ~ORTANGELES WAS H I N G TON, USA Utility Advisory Committee Memo Date: October 13,2009 To: Utility Advisory Committee From: Larry Dunbar, Deputy DIrector of Power Systems Subject: Ulihty Retail Rate and Fee Adjustments Summary: Durmg the last year FCS Group completed comprehensIve rate studIes for the ElectrIc, Water, Wastewater, Sohd Waste CollectIOn and Sohd Waste Transfer StatIOn ulihlies Staff wIll seek a recommendatIOn from the Ulihty AdvIsory Committee on the recommended retal! rate and fee adjustments at today's meetmg Recommendation: Forward a favorable recommendation to City Council to proceed with the proposed rate and fee adjustments for the Electric, Water, Wastewater, Solid Waste Collection, and Transfer Station Utilities. Background/Analysis: DUrIng the last year, FCS Group completed comprehenSIve rate studIes for the ElectrIc, Water, Wastewater, Sohd Waste CollectIOns, and Sohd Waste Transfer StatIOn ulihlies The studIes for Water, Wastewater, Sohd Waste CollectIOns and Sohd Waste Transfer StatIOn ulihlies were completed a year ago and the comprehenSIve rate study for the ElectrIc Ulihty was recently completed On September 8, 2009, the Ulihty AdvIsory CommIttee recommended that CIty CounCIl proceed wIth a pubhc hearIng The CIty CounCIl pubhc hearIng was held on October 6, 2009 The proposed rate and fee adjustments would be effeclive January 4,2010 At today's meetmg staff wl!l summarIze the mput receIved at the October 6, 2009 pubhc hearIng and any addItIOnal mput receIved smce then Staffrecommends that the Utlhty AdvIsory CommIttee forward a favorable recommendatIOn to CIty CounCIl to contmue the pubhc hearmg, close the pubhc hearIng, then adopt rate and fee ordmance amendments N \UAC\Fmal\Utlhty Rate & Fee RecommendatIOns doc October 13, 2009 Utility Advisory Committee Utility Rate Study Presentation O,~ORTAN ,,-\ ~_ C,,( <> ,tf"" '",,~~ "^ <r I ~);,. ~',,_ /*-- ". ~ ~~~"~;tr\-;; fO.. <..' .'_, b.9 ,...,...~, ,~_; ':'" ,,~_ ~~i~=~~.,,,~ "J: '" ~ Larry Dunbar, Deputy Director of Power Systems Proposed Agenda 1 Review current & proposed rates & fees 2 Review public comments 3. Recommendations 1 2010 Proposed Rate Adjustments Port Angeles Utility Customers 2010 2009 Proposed FCS Residential Rate Monthly Group Utility Rates Adjustment Increase Report Electnc. Base $11 OO/month 00% $ - 00% Electnc. Consumption o 0582/kWh 00% $ - 00% Stormwater 6 OO/month 00% $ - N/A Collections - Weekly Pickup 27 20/month 00% $ - 35% Collections - EOW Pickup 1975/month 00% $ - 35% Water - Base 24 65/month 85% $ 210 85% Water - Consumption 1 92/100 CF 85% $ 107 85% Wastewater 38 35/month 40% $ 150 40% Wastewater - eso 1025/month 301% $ 310 301% Average Customer Total $19823/month 39% $ 777 1,300 kWh & 655 CF Without CSO 25% $ 467 2 2010 Proposed Rate Adjustments Transfer Station Utility 2009 2010 Proposed FCS Rates Rate Increase Group Transfer Station (per ton) Adjustment (per ton) Report Transfer Station - Collection Entities $91 35 45% $411 105% Transfer StatIon - Self Haulers $11490 45% $517 105% Yard Waste - Collection Entities $25 75 45% $116 105% Yard Waste - Self Haulers $43 00 45% $194 105% BlOso)lds - CoJJectlon Entlues $45 00 45% $203 105% Blue Mountain - Self Haulers $204 65 00% $000 105% 3 2 2010 Proposed Rate Adjustments Transfer Station Utility 2009 2010 Proposed FCS Rates Rate Increase Group Transfer StatIon (per yard) Adjustment (per yard) Report Compost 1-3 Yards $20 00 00% $000 105% Compost 4-49 Yards $17 00 00% $000 105% Compost 50-99 Yards $1500 67% $100 1051)/0 Compost 100-299 Yards $1400 71% $1 00 105% Compost 300 Yards or More $1300 77% $100 105% Compost 4 Yards or More $1500 00% $000 105% (Schools, Non-Profit, or Governmental Agencies) 4 2010 Proposed Electric Utility Fee Adjustments 2009 Fees I 2010 Tolal 2010 Proposed 2010 Proposed FCS Group ElectncUtlht Pm sed Fee Fee Increase Taxes 2010 Pro osed Electncal Work Permits $9375 $11990 279% 167% $15661 87% $1049 250% $10941 Pole Attachments $1150 $1380 200% 96% $110 I 87% $120 378% $1585 Construction Contnbutlon Vanes Vanes 96% 00% $000 87% Vanes NIA NIA Transformer Fees $410 S440 73% 00% $000 75% $3000 75% $440 (Overhead/Under round $713 $nO 60% 00% $000 75% $5700 75% $770 a er I I[Y ee ljUS men s 2010 Total 2010 Proposed 2010 Proposed FCS Group Water Utlhtv - Residential 2009 Fees Pro DOsed Fee Fee Increase Taxes 2010 Prooosed Connection 5/8 Inch I $900 $1,160 184% 50% $4900 115% $13100 214% $1190 Connection 3f41nch $980 $1,160 184% 50% $4900 115% $13100 214% $1190 Connection 11neh $1060 $1260 189% 50% $5300 115% $14700 217% $1290 2010 Fee 2010 ReVised Fee I WUGA Connection $3500 $3950 129% 00% $000 115% $450 00 NIA NIA S tern Develo ment $1755 $1980 128% 00% $000 115% $22500 I NIA NIA 2011 Fee 2011 ReVised Fee S tern Develo ment $20001 $2260 130% 00% $000 115% $26000 NIA NIA 2010 Total 2010 Proposed 2010 Proposed FCS Group Water Utthtv - Commercial 2009 Fees ProDOsed Fee Fee Increase Taxes 2010 PTQoosed Connectlon 1 Inch $1515 $1710 129% 00% $000 115% $19500 00% $1515 Connec\Jon 1-1/2Ineh $2700 $3,200 185% 50% $13500 11 5% $365 00 228% $3315 Connection 21nen $2700 $3,200 185% 50% $13500 115% $36500 228% $3315 201QFee 2010 ReVIsed Fee WUGA Connecllon $5600 $6330 130% 00% $000 115% $73000 000% $0 Wt urn F Ad' t t 3 2010 Proposed Wastewater Utility Fee Adjustments 2010 Total 2010 Proposed 2010 Proposed FCS Group WastewalerUtllltv 2009 Fees PrODOsed Fee Fee Increase Taxes 201QPronosed Sa IIC Hauler Fee $701 $80 143% 12% $0841 115% $916 NfA NfA Sewer Permits $135 $150 111% 16% $216 115% $1284 NfA NfA WUGA Connection I $4 600 $5,200 130% 00% $000 115% $60000 NfA NfA WUGA Connection $1900 $2,150 132% 00% $000 115% $25000 NfA NfA 201QFee 2010 Revised Fee S stem Develo men! $1755 $1,980 128% 00% $000 I 115% $22500 NfA NfA 12011 Fee 2011 ReVised Fee I S temDevelo men! I $2000 $2260 130% 00% $000 I 115% $26000 NfA NIAI Utility Service Fee Adjustments SeJ'VIce Fees ElectncUtl1l WalerUllllt WastewaterUtlll1 Collection Utility 2010 Total 2010 Proposed 2010 Proposed FCS Group 2009 Fees Pro sed Fee Fee Increase Taxes 2010 Pro ased $25 $30 200% 65% $1 63 11 4% $338 N/A NIA $25 $30 200% 63% $1 58 11 5% $343 N/A NIA $25 $30 200% 63% $1 58 11 5% $343 N/A NIA $25 $30 200% 20% $0 50 151% $4 50 NIA NIA Service Fee IS ro osed to not a I to Yard Waste containers be ond the first contamer $25 $30 200% 43% $108 131% $393 N/A NIA Service Fee IS proposed to also apply to reader card and transponder card replacement not due to normal wear and tear TransferStallon Ullhty Utility Rate Study Summary Fee adiustments proposed: Electric work permits, pole attachments Fee adlustments proposed (Citv/State taxes)' ElectriC work permits, pole attachments, water connectIOn & system development, wastewater permit & system development, service fees Retail rate adlustments proposed Water 8 5%, wastewater 4 0%, CSO 30. 1 %, transfer statIon 4.5% No retail rate adiustment proposed. ElectriC, sol1d waste collection, stormwater 7 4 Public Hearing Comments 1. Utility rates are complicated, and rate ad/'ustments have not been considered for all uti Itles at the same time 2 Meter readers should be cross-trained for water utility and leak detection 3. The transfer station utility should consider barging solid waste 4. The Elwha industrial water line should have a source meter and leaks repaired 5.lndustnal water rate equity concern 8 Public Hearing Comments (Continued) 6 The Irrigation rate avoids wastewater charge 7. City Council should allow more time to consider proposed water rate adjustments 8. Necessity of water utility contnbution to economic development fund, economic development fund could be used for water capital projects to reduce debt service 9. Pleased that no electnc rate Increase is proposed 10.Peninsula college should be congratulated for their geothermal project 9 5 Public Hearing Comments (Continued) 11 The electric utility should consider SPA incentives for distributed generation such as solar water heating and photovoltaic 12. Local industry should consider biomass cogeneration 13.The upgrade of the electric utility gnd on the peninsula could be reduced or delayed by dlstnbuted generation & cogeneration. 14.Water rate Increases from 1981 to present have been sizeable 10 Water Utility Cost & Consumer Price Index $500 $400 $300 $200 $100 l $- ~<) ,,<)" ~'l, ~"J st ~~ ~Io ~ ~co ~ ~ ~ ~ ~ ~ ~ ~ ~ - Average Water Cost - Adjusted for CPI" 6 Total Utility Cost & Consumer Price Index $2,500 l $2,000 $1,500 I $1,000 ] $500 I $- -- .--- -= ,,\:)\:) ,,\:)" ~'),. ~":> ~~ ~<:, ~'o ~ ~'O ~ ~ ~ ~ ~ ~ ~ ~ ~ - Average Total Utility Cost - Adjusted for CPI 12 Recommendations . Continue public hearing Close public hearing Consider adoption of 9 ordinance amendments . . Chapter 3 70 PAMC Chapter 1312 PAMC Chapter 1340 PAMC Chapter 13 44 PAMC Chapter 13 54 PAMC Chapter 13 57 PAMC Chapter 13 65 PAMC Chapter 13 69 PAMC Chapter 13 75 PAMC 13 7 Date: To: From: Subject: ~ORTANGELES WAS H I N G TON, USA Utility Advisory Committee Memo October 13, 2009 Utility Advisory Committee Larry Dunbar, Deputy DIrector of Power Systems Industnal Customer Power Sales Agreement Summary: A Power Sales Agreement IS bemg negotiated wIth the CIty's Industnal customer at the dIrectIOn of CIty Councll and the Utlhty AdvIsory CommIttee Recommendation: Forward a favorable recommendation to City Council to authorize the Mayor to sign a Power Sales Agreement with Nippon Paper Industries USA CO., and authorize the City Manager to make minor modifications to the agreement, if necessary. Background/Analysis: As part of the June 2009 CIty Councll/UtIhty AdvIsory CommIttee TIer 2 Power Supply workshop, staff was dIrected to negotiate a Power Sales Agreement wIth the CIty's Industnal customer A summary of the proposed terms and condItions of the proposed Power Sales Agreement are proVIded below I) Contmuatlon of the CIty's current approach to Industnal customer access to BonnevIlle Power Admmlstratlon (BP A) wholesale power rates under the TIered Rate Methodology and wholesale transmIssIon rates, begmmng October I, 2011, 2) Allocation of a portIOn of the power resources the CIty wlll receIve from BP A to the Industnal customer m accordance wIth the TIered Rate Methodology and the Elwha Act, 3) MItigation of the CIty's wholesale power cost nsk for the Industnal customer under the TIered Rate Methodology, whIch IS take/don't take but pay, 4) A proposed term from November 1,2009 to September 30, 2028, whIch IS Identical to the term of the CIty's Power Sales Agreement wIth the BPA, and 5) Power blllmg payment due dates that comclde wIth the CIty's obhgatlOn to pay BP A for wholesale power purchases Staff recommends that the Utlhty AdvIsory Committee forward a favorable recommendatIOn to CIty CouncIl to authonze the Mayor to sIgn a Power Sales Agreement wIth NIppon Paper Industnes USA CO , and authonze the CIty Manager to make mmor modificatIOns to the agreement, If necessary N \UAC\Flllal\lndustnal Customer Power Sales Agreement doc ~ORTANGELES WAS H I N G TON, USA Utility Advisory Committee Memo Date: October 13, 2009 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: ConservatIOn Loan DeductIOn Summary: Earlier this year the City assumed ownership of the balance of the Bonneville Power Admmlstral10n legacy conservatIOn loan agreement Staff IS mterested m recovenng the outstandmg loan balance as soon as possible to help fund the City's energy conservatIOn program Recommendation: Forward a favorable recommendation to City Council to authorize the Director of Public Works and Utilities to make a limited offer of up to a 40% deduction on conservation loans that are paid off. Background/Analysis: About 30 years ago, the City entered mto a zero mterest weathenzatlOn loan agreement with the Bonneville Power Admllllstral10n (BP A) On June 2, 2009, City CouncIl approved the Accord and Sal1sfactlOn Agreement with the BP A, and smce then loans that are paid off are the CIty's property and are no longer remitted to the BP A At this l1me a total of 64 customers are m compliance with the 30 year old loan terms with a residual balance of slightly more than $193,000 Given that the typical famIly's home needs change every 5-7 years, It IS uncertam when the remammg loans wIll be paid off There IS also an mcreased need to fund the CIty's energy conservatIOn program, and staff IS mterested m recovenng the outstandmg loan balance as soon as possIble to mmlmlze Electnc Ul1l1ty rate Impacts Staff proposes that the City make a limited offer of up to a 40% deductIOn to customers that are m compliance With the loan terms that rel1re theIr conserval1on loans If all of the customers took part m the early retIrement, recovered loans would total slightly more than $116,000 The recommended loan deductIOn IS based on the esl1mated net present value of the average loan amount, the CIty's current dIscount rate, and a 20 year antiCipated remammg loan term A summary of the evaluatIOn to determme an appropnate conservatIOn loan deducl10n IS below AntICIpated Remammg Loan Term Recommended Loan DeductIon (%) o 5 12% 10 22% 15 I20l 31%~ 25 46% 30 52% 0% Staffrequests that the Utility AdvIsory CommIttee forward a favorable recommendatIOn to City Council to authonze the Director of Public Works and Ul1l1l1es to make a limited offer of up to a 40% deducl10n on conservatIOn loans that are paid off N \UAC\Fma]\ConservatlOn Loan Deduction doc ~ORTANGELES WAS H I N G TON, USA Utility Advisory Committee Memo Date: October 13,2009 To: Utility Advisory Committee From: PhJl Lusk, Power Resources Manager Subject: US Department of Energy Advanced Waterpower Grant ApplIcatIOn Summary: The City, m a consortIUm with the Clallam County PUD, the PaCIfic Northwest NatIOnal Laboratory operated by Battelle Memonal Inslitute, and others, was not successful with the grant applIcalion to the U S Department of Energy to perform an environmental study related to the mstallatlOn, testmg, and operatIOn of a manne hydrokmelic energy conversIOn device Recommendation: For information only, no action requested. Background/Analysis: The City was not successful wIth the grant applIcatIOn to the US Department of Energy (DOE) to conduct an envIronmental study related to the mstallatlOn, testmg, and operatIOn of a manne hydrokmetIc energy conversIOn deVIce The Clallam County PUD, Battelle Memonal Inslitute (Battelle), which operates the PaCific Northwest NatIOnal Laboratory, and Powertech Labs, Inc , m partnershIp wIth a pnvate hydrokmetlc technology developer, were members of the consortIUm that developed the applIcatIOn The research proposed to mvesligate the effects of electromagnelic fields (EMF) generated by manne and hydrokmelic generatIon deVIces, and the associated underwater cables, on aqualic orgamsms Among other Items, the effects of expected level of EMF on mdlgenous manne orgamsms from a hydrokmelic mstallatlOn m Morse Creek and Port Angeles Harbor were to have been exammed In September, the City was advised that ItS proposal did not receive an award from the DOE The DOE's debriefing analysIs suggests that whJle the proposal was very competitIve, ItS ullimate weakness was there was no hardware m the water The consortIUm members dIscussed this deficiency at the lime the proposal was submitted, the DOE's notmg of the weakness did not come as a surpnse For example, the DOE dId award $600,000 to the Snohomlsh County PUD for a related environmental study, and that ulilIty has planned five lidal energy sItes m the Puget Sound that could launch as soon as 20 I 1 WhIle rejectIOn does stmg, stafflearned from the consortIUm about a potential manne hydrokmetIc energy site located about four mJles off the northern Olympic Penmsula coast While ItS feaSIbIlIty and produclion capacIty IS currently unknown, usmg rules-of-thumb developed for the wmd mdustry It may be capable of productIOn m the range of 125-175 megawatts somelime in the future N \UAC\FlOal\USDOE Advanced Waterpower Grant Apphcahon doc FORTANGELES WAS H I N G TON, USA Utility Advisory Committee Memo Date: October 13, 2009 To: Utility Advisory Committee From: PhIlip Lusk, Power Resources Manager Subject: Northwest Power and ConservatIOn Council's Draft Sixth Northwest Power Plan Summary: Energy conservatIOn and renewable energy form the resource cornerstones of the Northwest Power and ConservatIOn Council's Draft Sixth Northwest Power Plan, now out for public comment through November 6, 2009 Recommendation: For information only, no action requested. Background/Analysis: Energy conservatlon and renewable energy form the resource cornerstones of the Northwest Power and ConservatIOn Council's (NWPCC) Draft SIxth Northwest Power Plan, now out for public comment through November 6, 2009 The draft plan, which also explores other supply-side optIOns, comes from a regIOnal perspectlve wIth an eye toward mmimizmg costs and rIsks for the Northwest power system The resldentlal retall electriC rate Impacts of the draft plan are estlmated to be at a real annual rate of between I 5% - I 9% from 2010-2030, along with mcreased costs from lowerIng carbon dIOXide emiSSIOns and potentlally removmg the lower Snake River damsl ConservatIOn emerges as the top resource chOice The NWPCC's recent analysIs for thiS plan "strongly affirmed that energy effiCiency Improvements proVIde the most cost-effective and least rIsky response to the regIOn's growmg electrICity needs," the draft plan states "Further, accelerated acqmsItlon of cost-effectlve efficIency reduces the contrIbutIOn of the power system to greenhouse gas emiSSIons," It contmued "WIth greenhouse gas reductIOn polICies m flux, and many new sources of carbon-free electrICity expensive or lackmg capacity contrIbutions to go with their energy, accelerated acqmsItlon of cost-effectlve effiCiency can buy tlme to develop polICies and Identlfy alternatlve sources of carbon-free generatIOn 2" In addltlon to ItS take on speCific resources, the NWPCC's draft plan also highlIghted a shift m emphasIs It notes that "focusmg regIonal power system planmng solely on annual energy reqUIrements IS no longer adequate," and that mcreasmg attentIOn must now be paId to changes m "the seasonal shape of Northwest load, mcreasmg constramts on the operatIOn of the hydro system to meet fish reqmrements, and rapidly mcreasmg amounts of varIable generatlon, espeCIally wmd," factors that are "makmg mcreased system capaCIty and fleXIbIlity a new prIOrIty" I Energy News Data Clearing Up, September 28, 2009 No 1409, Page 9 2 Energy News Data Clearing Up, September 21, 2009 No 1408, Page 11 N \UAC\Fmal\NWPCC Draft Plan doc Ullhty AdvIsory COlTIlmltee October 13,2009 Northwest Power and Conservallon CouncIl's Draft SIxth Northwest Power Plan The NWPCC reVises Its plan every five years The Admmlstrator of the BonnevIlle Power AdmmlstratlOn IS reqUIred to make decIsIOns about future electnclty supplIes that are consIstent WIth the plan ThIS plan also serves as a regIOnal bluepnnt to assIst electnc utIlItIes m theIr own plannmg wlthm their servIce terntones The CIty IS a member of the Western PublIc AgencIes Group, the PublIc Power CouncIl and the Northwest PublIc Power AssocIatIOn These groups represent the City and WIll provIde comments to the NWPCC on the draft plan For more mformatlOn about the draft plan, please VISIt hHo //www nwcouncIl org FORTANGELES WAS H I N G TON, USA Utility Advisory Committee Memo Date: October 13,2009 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: Energy Independence Secunty Act of 2007 Mandatory ConslderatlOn of Standards Summary: The City IS reqUired by the Energy Independence Secunty Act of 2007 to consider four new Electnc Utility standards The first step 10 the process was to formally commence the conslderatlOn, which the City Council authonzed on November 18, 2008 Recommendation: For information only, no action requested. Background/Analysis: In accordance with the Public Utility Regulatory PoliCies Act (PURPA) as amended by SectlOn 1307 of the Energy Independence Secunty Act of2007 (EISA), all electnc utilities 10 the Umted States of Amenca must consider four new standards The new standards that must be considered mclude I) an mvestment 10 a qualified "Smart Gnd" system, 2) provldmg Smart Gnd mfonnatlOn to electnc customers, 3) If the should City conduct mtegrated resource plannmg, and 4) rate design modlficatlOns that promote energy effiCiency Although PURP A reqUires the City to consider the standards, It allows the City Council to detennme If It IS appropnate to Implement or decline each standard The City commenced ItS consideratIOn of the four standards upon the approval of City Council on November 18, 2008 As part of this commencement, a public notice was published 10 the Penmsula Dally News and the notice was posted on the Clty'S webslte1 A staff evaluation of each standard, mcludmg findmgs and concluslOns, Will be presented to the Utility Advisory Committee (UAC) on November 10,2009 City Council will be requested to open a public heanng to receive wntten comments and testimony by the public and staff at ItS November 17,2009 meetmg Staff will then return to the UAC on December 8, 2009 to make ItS final report on the four PURP A standards and ask for a recommendatlOn to City Council At the December 15, 2009 meetmg, City Council Will be asked to contmue/close the public heanng, conSider final testimony by the public and staff, and make a determmatlOn on whether or not each standard IS appropnate for adoption by the Electnc Utility on behalf of ItS customers 1 httpJlwwwCltyofpa lls/PDFsJPWorksfPURPANotlce pdf N \UAC\Fmal\EISA07 Mandatory ConslderJtlOn of Standards doc ~ORTANGELES WAS H I N G TON, USA. Utility Advisory Committee Memo Date: October 13, 2009 To: Utility Advisory Committee From: Larry Dunbar, Deputy DIrector of Power Systems Subject: Network Needs Assessment and PublIc Safety ConsIderations Update Summary: The reports are completed for the network and securIty needs assessment and a PolIce and FIre Department wIreless moblle data needs assessment The request for proposal for InstitutIOnal Network Services IS about a month behmd schedule Staff delayed notice to proceed to ColumbIa TelecommumcatlOns Corporation to prepare a desIgn, cost estimate, bus mess plan and grant applIcatIOn for a wIreless moblle data system Recommendation: For information only, no action requested. Background/Analysis: On March 17,2009, CIty CouncIl approved an agreement With Columbia TelecommumcatlOns CorporatIOn (CTC) to conduct a network and securIty needs assessment and a PolIce and FIre Department wireless mobile data needs assessment A total of three separate reports have been recently completed mcludmg I MetropolItan Area Network ReqUIrements Assessment and StrategIc RecommendatIOns, 2 PublIc Safety WIreless Data Commumcatlons ReqUIrements Assessment and Strategic RecommendatIOns, and 3 Executive Summary of RecommendatIOns for the ImplementatIOn of an Institutional Network Services Agreement On July 21,2009, City Council authOrIzed an amendment to the agreement WIth CTC for a request for proposal and a grant applIcatIOn Due to CTC's workload, the request for proposal for InstitutIOnal Network ServIces IS about a month behmd schedule It IS now anticIpated that the request for proposal wIll be advertised m November or December 2009 Staff IS deiaymg notice to proceed to CTC to prepare a desIgn, cost estimate, busmess plan and grant applIcation for a wIreless mobIle data system under the AmerIcan Recovery and Remvestment Act The Illltlal grant opportumty targeted was later found not to be a good fit for the project and there are currently no grant opportumtles to conSider CTC anticIpates the next grant opportumty should be III February 2010 If that grant opportumty IS worthy of purSUIt we Will proceed With the scope of work m the next month or so Otherwise, the wireless grant applIcatIOn scope of work Will contmue to be on hold untll the next worthwhIle opportumty surfaces N \UAC\Fmal\Network Needs Assessment & Public Safety ConsideratIOns Update doc