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HomeMy WebLinkAboutAgenda Packet 12/09/2008 Utility Advisory Committee Public Works Conference Room Port Angeles, W A 98362 December 9, 2008 3:00 P.M. AGENDA I. Call To Order II. Roll Call III. Approval Of Minutes For November 10, 2008 IV. Late Items V. Discussion Items A. Corrosion Control Report (Oral Report) B. Ordinance Revisions Required For Stormwater NPDES Compliance C. CFL Markdown Promotion Agreement Amendment D. Electric Utility Cost Of Service Study Consultant Agreement E. Green Motors Initiative Agreement F. Morse Creek License Amendment Update G. BPA Demand Response Pilot Program VI. Next Meeting Date: January 13, 2009 VI. Adjournment N:\UAC\FINAL\120908 Utility Advisory Committee Special Meeting Public Works Conference Room Port Angeles, W A 98362 November 10, 2008 3:00 p.m. D.94J:',. I. Call To Order Chairman Reed called the meeting to order at 3 :00 p.m. II. Roll Call Members Present: Chairman Reed, Betsy Wharton, Orville Campbell (3:35), Don Perry, Dan Di Guilio, Elizabeth Butler Members Absent: Karen Rogers Staff Present: Bill Bloor, Glenn Cutler, Ken Dubuc, Mike Puntenney, Larry Dunbar, Steve Sperr, Kathryn Neal, Phil Lusk, Cate Rinehart Others Present: Terry Mundorf - Western Public Agencies Group III. Approval of Minutes: Chairman Reed asked if there were any corrections to the minutes of October 14, 2008. Councilman Di Guilio moved to approve the minutes. Councilman Perry seconded the motion, which carried unanimously. IV. Late Items None V. Discussion Items: A. Proposed Medic 1 Utility Rate Adjustments Ken Dubuc, Fire Marshal, explained that the Medic 1 program is supported through an enterprise fund using transport charges, monthly utility charges, and a General Fund contribution. A rate adjustment of 6% was proposed by staff. Elizabeth Butler, who serves on the committee for Medic I utility issues, supported staffs recommendation. A discussion followed. Councilman Perry moved to recommend City Council proceed with the proposed rate adjustments for the Medic 1 Utility. Councilmember Wharton seconded the motion, which carried unanimously. B. Draft 2008 Comprehensive Water System Plan (WSP) UTILITY ADVISORY COMMITTEE November 10, 2008 Kathryn Neal, Engineering Manager, noted that the City was required to update the WSP every six years and the most recent was approved in 2002. A summary ofthe issues since the 2002 WSP was reviewed. Staff advised that the draft WSP would be available on the Internet. There was a brief discussion. Information only. No action taken. C. Port Angeles Water Treatment Plant Computerized Maintenance Management System Michael Puntenney, Deputy Director of Operations, advised that the City had signed a transfer agreement with the National Park Service and a computerized system will be procured to manage maintenance activities. A discussion followed Information only. No action taken. D. Bonneville Power Administration Power Sales Agreement Larry Dunbar, Deputy Director of Power Systems, gave a presentation reviewing the power sales contract and tiered rate methodology and explained the Tier 1 greenhouse gas emission averages. Therewas a lengthy discussion. Councilmember Wharton moved to recommend City Council 1) make a determination that the power resources comply with the State greenhouse gas emissions standard, 2) authorize the City Manager make minor modifications to the agreement, if necessary, and 3) authorize the Mayor to accept the agreement. Orville Campbell seconded the motion, which carried unanimously. E. Energy Independence Security Act Of 2007 Consideration Phil Lusk, Power Resources Manager, identified standards the City must consider which included an investment in a qualified "Smart Grid" system, providing grid information to electric customers, consider conducting integrated resource planning, and rate design modifications that promote energy efficiency. A discussion followed. Councilmember Wharton moved to recommend City Council 1) commence consideration of the standards, 2) set public hearing dates of November 17, 2009 and December 15, 2009 to consider the standards, and 3) make a determination on the standards no later than December 19,2009. Councilman Perry seconded the motion, which carried unanimously. F. Morse Creek License Amendment Phil Lusk, Power Resources Manager, advised that the City was required to have a new Clean Water Act 401 Certification issued by the Washington State Department of Ecology as a UTILITY ADVISORY COMMITTEE November 10, 2008 component of its Federal Energy Regulatory Commission license amendment to use new minimum instream flows at the Morse Creek Hydroelectric Project. A draft order had been provided on October 31, 2008 which must be acted on by the Department of Ecology no later than December 23,2008. There was a brief discussion. Information only. No action taken. G. Capital Facilities Plan And Transportation Improvement Program Amendment Larry Dunbar, Deputy Director of Power Systems, requested adding four additional projects to the City's 2008-2014 Capital Facilities Plan which would include Conservation Voltage Reduction and three West UGA basin sewer extensions. A discussion followed. Councilman Di Guilio moved to recommend City Council 1) set a public hearing on December 2, 2008, and 2) pass a resolution that amends the 2008-2014 Capital Facilities Plan and Transportation Improvement Program to include four additional projects. Councilmember Wharton seconded the motion, which carried unanimously. H. Low4ncome Weatherization Phil Lusk, Power Resources Manager, gave a brief report on the utility discount program noting that some audits have been completed to determine if any energy conservation improvements are needed. There wasm.brief discussion. Information only. No action taken. I. Energy Northwest Quarterly Report Larry Dunbar, Deputy Director of Power Systems, shared that he attended a board meeting and that the City had been added to the Energy Northwest membership list. Committee reports were given, a role in energy conservation was considered, and it was noted that City participation in two wind projects was solicited. There was a brief discussion. Information only. No action taken. VI. Next Meeting Date: December 9,2008 VII. Adjournment: The meeting was adjourned at 4:48 p.m. Chairman Reed Cate Rinehart, Admin Spec II Date: To: From: Subject: ~ORTANGELES WAS H I N G TON, U. S. A. Utility Advisory Committee Memo December 9, 2008 Utility Advisory Committee Terri Partch, P.E., Stormwater Program Manager Ordinance Revisions Required for Stormwater NPDES Compliance Summary: Staff will provide a brief presentation summarizing the Stormwater National Pollutant Discharge Elimination System Phase 2 Permit requirements for 2009, including the development of three ordinances that must be approved and adopted by August 15,2009. Recommendation: For information only, no action requested. Background/Analysis: Staff will provide a brief presentation summarizing stormwater National Pollutant Discharge Elimination System (NPDES) Phase 2 Permit requirements for 2009, including the development of three programs that must be approved and adopted by ordinance no later than August 15, 2009. The proposed programs address the following: 1. Pollutant discharge into the stormwater system . Prohibit pollutants from being discharged into the City's stormwater system. . Illicit discharge detection and elimination. 2. Construction site runoff . Further control and regulate construction site stormwater planning, permitting, plan review, inspection and enforcement. 3. Private stormwater facilities . Permit and regulate maintenance and operation of private stormwater facilities, including detention/retention ponds and filters. In general, all of the programs will include formal adoption of technical manuals by ordinance, updated procedures and policies, formal documentation of actions taken, and staff training. Staff will return to the Utility Advisory Committee in the Spring of 2009 with the proposed ordinances for further consideration. N:\UAC\Final\Ordinance Revisions for Stormwater NPDES.doc {>JcQ:f~ P\';'WJ:,~n~ CJ rcJlfjsJfj C;~ F~ e/l sl CJfJ S P ~Cj ulr~cJ '[CJr StCJr[[j'HsJt8r j JP D ~ S PhsJS8 j j GCJffJ fjJlsjfJ C;~ ,,"/' ~ !F@mrll ~@mmo ~o~o Outline · NPDES Permit effective February 16, 2007 · Stormwater Management Program Overview (SWMP) · Three ordinances are required to be in place by August 15, 2009 1 Stormwater Management Program (SWMP) 1. Public Education & Outreach 2. Public Involvement and Participation 3. ~~~~_cnt[J)j~~~~lIrg)e lE~nmnll'Da1~n<o>1l'D ,:' ",tr< ' , ',.' " , ~. [J)~v~~(Q)[p)m~ll'D~ ~(UJIl'D(Q)~ <C(Q)Il'D~lr(Q)~ 5. (Q)[p)~rl'~~D(Q)Il'D$ ~ ~~nll'D~~Il'D~IJ'i}@~ Co" ~.,_ ~ '" _ 'IJ Illicit Discharge Detection and Elimination (IDDE) Program a. Mapping lb. (Q)If'<dInll'D~ll'D@ce IPIf'~V~Il'D~DIl'D~ m~@~~/Dm@D~ <dID$lCihlallf'~~$ ~(Q) ~ihl~ ~~(Q)lf'mWal~~1f' $w~~~m ~. 1P1f'(Q)~If'~m 1R~<q!l!.nDIf'~m~Il'D~$ ~(Q) ~l!.nIPIP(Q)~ ~ihl~ (Q) rr-<dIDIl'D @l!l'D c,~., 'cP' "'.., d. Public Education "- e. Program Evaluation and Assessment / Annual Report q. ~fr~W Ulr~DIJ'i)DITIl~ 1R@~MUlr@m@lTIlfr~ ~ -.0 "'0 (~, 2 lODE Ordinance The ordinance must prohibit the following discharges unless certain conditions are met: · Waterline and fire hydrant flushing · Lawn vyatering .'~ '_'-' //.'-~wi~~ing pool water discharges' ""~, · Street and sidewalk wash water, water us~d to control -.. dust and external building wash down water · Other non stormwater discharges lODE Program Requirements to Support the Ordinance · Adopt "l/licit Discharge Detection and Elimination: A Guidance Manual for Program Development and Technical Assessments, "Center for Watershed Protection, October 2004 · Develop procedures, handbooks and forms for City field crews to help characterize, trace and remove sources of illicit discharge · Train City field crews to identify and remove illicit discharges 3 Runoff Control from New Development, Redevelopment, and Public and Private Construction Sites aI. Oll"tdIull1alll1ce to reduce pollutants in runoff from any site disturbance 1 acre or greater b. New !P>ell"mD~~Dll1g, !P>~alll1lRsvDew, ~m~iPleC~Dcm alll1td1 IEll1ff<<?ll"~emell1~ !P>ll"ocess ~o SVJiPliPloo:t~lh~j()ll"tdIDll1alll1ce / c~'''/Keep Records 6f Inspections and Enforcement Actions d. Make available DOE Permit forms, Le. NOI forms " ~. ~~~if(f 'f1f~ijlTilDlTil~ ~@~(!J]DIr@IM1@lTil~~ '" Implement a training program for all staff responsible for permitting, plan review, construstion site inspections and enforcement Construction Site Runoff Ordinance The ordinance must include: II The minimum requirements, technical thresholds and definitions in Appendix 1 of the Permit. II A site planning process, BMP selection and design criteria that will protect water quality to the Maximum Extent Practicable (MEP) Option: AdQpt 2005 DOE / _ ~.-:;pStormwater manual or develop an equivalent manual /.. II Give the City the legal authority to inspect private- stormwater facilities II Provisions which allow Low Impact Development (LID) techniques- complete · Evaluate and aClopt enforcement measures ( .,. z., 4 New Permitting, Plan Review, Inspection and Enforcement Process Permitting must include the following elements: · Require and review a stormwater pollution prevention plan (SWPPP). Option: limited waiver option · Inspect sites with a high potential for erosion before clearing and grading · Inspect sites during construction and upon completion of construction to verify proper installation of BMPs · Keep records of the inspection program. Achieve 95% of all scheduled inspections. · Develop an enforcement strategy. Operation and Maintenance Ordinance for Private Stormwater Facilities The ordinance must: · Clearly identify the party responsible for maintenance · Property owner " ,. Gity maintenance crew · Developer impact fee (maintenance contracted by City) , "" 1/'-" · Require regular inspection to DOE standards · Establish enforcement procedures 5 Operation and Maintenance Program Requirements for Public Stormwater Facilities · Establish maintenance standards by adopting Chapter 4, Volume 5 of the DOE Manual · Develop a program to annually inspect all stormwater treatment and flow control facilities · Develop a program to spot check all flow control facilities after major ( 3.3 inches of rainfall in 24 hours) storms · Document the City's inspection and maintenance program Operation and Maintenance Program Requirements for Public Stormwater Facilities · Establish and implement practices to reduce stormwater impacts from all City maintenance operations · Establish and implement practices to reduce pollutants from all City owned or maintained lands · Train City employees on how their job impacts stormwater quality and how to select BMPs to reduce or eliminate impacts · Develop SWPPPs for all City owned maintenance or industrial yards-complete 6 Coordination between Engineering and DeED DEVELOPMENT OF STANDARDS AND ORDINANCES - ~- ,;,f'P , "'~" /' 2008 ClEO Grant · Site coverage/stormwater Comp Plan changes -- done Incentives for density, affordable housing and less stormwater runoff · Amend Urban Services Standards and Guidelines - in progress For improved streetscapes, Low Impact Development, and multi. modal transportation connectivity 7 Changes to Urban Services Standards · Chapter 3, Transportation · Chapter 5, Stormwater · Chapter 6, Clearing, Grading, Filling and Drainage · New chapter on Urban Forestry Timeline · Update Standards, February 28 · Consult with Clallam County, March 15 · Planning Commission review, March 25 · Draft PAMC Title 11, 13, 15 amendments · Planning Commission and City Council Public Hearings, June 3 · PAMC Amended, June 15 8 Date: To: From: Subject: FORTANGELES WAS H I N G TON, U. S. A. Utility Advisory Committee Memo December 9, 2008 Utility Advisory Committee Philip Lusk, Power Resources Manager CFL Markdown Promotion Agreement Amendment Summary: The City was offered an amendment to extend the term of the "Change a Light, Change the World" compact fluorescent lamp Markdown Promotion Agreement with Portland Energy Conservation, Inc. All City expenses under the Agreement are eligible for reimbursement under the Bonneville Power Administration's Conservation Rate Credit program. Recommendation: Forward a favorable recommendation to City Council to authorize the Public Works and Utilities Director to sign the amendment and any subsequent amendments to the CFL Markdown Promotion Agreement. Background/Analysis: Since 2007, the City has participated in the "Change a Light, Change the World" Compact Fluorescent Lamp (CFL) Markdown Promotion operated by Portland Energy Conservation, Inc. (PECI). City payments to PECI are used to markdown CFL prices at local retailers, which will ultimately reduce the cost of CFLs purchased by Port Angeles electric utility customers. City utility customers purchased an estimated 20,000 CFLs through the period ending September 30, 2008. PECI recently offered the City an amendment to the existing agreement to extend its term through September 30,2009. The extended term is anticipated to result in additional City payment of up to $30,000 to PECL All City expenses under the proposed amendment are eligible for reimbursement under the Bonneville Power Administration's Conservation Rate Credit program. Staff requests that the Utility Advisory Committee forward a favorable recommendation to City Council to authorize the Public Works and Utilities Director to sign the amendment and any subsequent amendments to the CFL Markdown Promotion Agreement. The City Attorney reviewed the proposed amendment. N:\UAC\final\CFL Markdown Promotion Agreement Amendment nO"' R"T': A IN'G' "E' 'L" E" 'S" .i=::: ():;'J..i:t I r; I'; i ! I', ) WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: December 9,2008 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: Electric Utility Cost of Service Study Consultant Agreement Summary: Every three years a consultant is retained to assess and evaluate the cost of services and rates for each City utility. The study for the electric utility study is scheduled for completion in 2009, and staff recommends that FCS Group be used to perform the proposed scope of work. Recommendation: Forward a favorable recommendation to City Council to 1) authorize the City Manager to make minor modifications to the agreement, and 2) authorize the Mayor to sign an amendment to the agreement with FCS Group for financial services in an additional amount not to exceed $40,000 for the electric utility cost of service study. Background/Analysis: Every three years, a consultant has traditionally been retained to independently assess and evaluate the City utility services, including such topics as cash reserve requirements, cost-of-service, and rate structures. The City's electric utility is due to be evaluated, with the result of that study anticipated to be available in June 2009. In 2007, as part of the consultant, selection process for the recently completed utility rate studies, staff conducted a formal request for proposal process. A total of fourteen consultant inquiries were received and three consultants submitted proposals including EES Consulting, FCS Group, and MuniFinancial. The City's prior utility financial consultant, HDR/EES chose not to submit a proposal because of an anticipated conflict of interest. Staff determined that FCS Group submitted the most responsive proposal and negotiated a scope of work and budget for the project. The duration of the executed FCS agreement is through the period ending January 31,2010, which will allow the City to use this firm for the 2009 electric utility cost of service study. Table 1 outlines the key tasks for the proposed amendment to the existing Agreement. The funding source for the electric utility cost of service study is from the approved 2009 electric utility budget. Staff recommends that the Utility Advisory Committee forward a favorable recommendation to City Council to authorize the Director of the Mayor to sign an amendment to the Agreement with FCS Group in an amount not to exceed $40,000 for the recommended scope of work. N:\UAC\Final\Electric Utility COSA.doc Amendment to Consultant Agreement for Electric Utility Cost of Service Study December 9,2008 Page 2 Table 1- Summary of 2009 Electric Utility Cost of Service Study Scope of Work TASKS 8) Data Collection 9) Fiscal Policy Evaluation 10) Capital Funding Plan 11) Multi-Year Operating Forecast (Revenue Requirement) 12) Cost of Service 13) Rate Design 14) Recommended Optional Tasks A. Pole attachment fees as delineated under RCW 54.04.045 and 47 CFR 99 1.1401-1.1408 B. Electrical work permit and inspection fees C. Line extension fees. 15) Optional Tasks Not Recommended D. Wholesale generation costs using Tiered Rates Methodology. E. Rate Design based on Tiered Rates Methodology. Staff recommends tasks 8-13 and optional tasks 14(A-C) are included in the approved scope of work. ~. ~ORTAN ELES CITY OF WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: December 9,2008 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: Green Motors Initiative Agreement Summary: The Bonneville Power Administration is proposing that the City join its Green Motors Initiative, whose purpose is to support an industry trade group of qualified motor service centers providing re-winds of energy efficient motors to maintain energy efficiency. Recommendation: Forward a favorable recommendation to City Council to 1) authorize the City Manager to make minor modifications to the agreement, and 2) to authorize the Public Works and Utilities Director to sign the Green Motors Initiative Agreement and any subsequent amendments to the Agreement. Background/Analysis: The Bonneville Power Administration (BPA) is proposing that the City join its Green Motors Initiative (GMI), whose purpose is to support an industry trade group of qualified motor service centers providing re-winds of energy efficient motors to maintain energy efficiency. The trade group, called the Green Motor Practice Group (GMPG), provides an incentive of $2.00 per horsepower (HP) to qualified service centers that re-wind energy efficient motors to their original nominal operating efficiency. Service centers will provide an instant rebate of at least $1.00 per HP on the customer's invoice. Qualified motors are 15-5000 HP NEMA Premium or equivalent. The Green Motors Initiative is a direct acquisition offering, which is a mechanism where the BP A, with the consent of a participating utility, contracts directly with a third party such as the GMPG to implement energy efficiency activities within a participating utility's service area. A utility participates by signing the consent agreement with the BP A. In 2001, the City participated in a similar program called the VendingMiser program. BP A will attribute all energy savings to the City, and a 75% conservation adjustment credit will count towards the City's upcoming High Water Mark. All incentives will be paid by the BP A and the City will not have to budget or spend any of its Conservation Rate Credit funds. Staff requests that the Utility Advisory Committee forward a favorable recommendation to the City Council to approve the Agreement and authorize the Director of the Public Works and Utilities Department to sign the Green Motors Initiative Agreement and any subsequent amendments to the Agreement. N:\UAC\Final\Green Motors Initiative Agreement.doc ~.......i.........O... R. .T.. ..'J1;.................. N.G.. ..EiL' E.. is"' I ....~ r~):j 'I / i' 1 .: :'ii i,i,' ..~ : .' , ., i '."'''''''' ~ . .",..... ..; WAS H I N G T'O N, U. S. A. Utility Advisory Committee Memo Date: December 9,2008 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: Morse Creek License Amendment Update Summary: At Utility Advisory Committee's November meeting, a question was raised regarding the power production impacts that could result from using the new minimum instream flows at the Morse Creek Hydroelectric Project. A production impact model previously prepared during the Agency negotiations was updated, which indicated that the Project's avoided power purchases are practically identical. Recommendation: For information only, no action requested. Background/Analysis: As discussed at the November meeting, the City is required to have a new Clean Water Act 401 Certification issued by the Washington State Department of Ecology (DOE) as a component of its Federal Energy Regulatory Commission license amendment for its Morse Creek Hydroelectric Project (Project). This Certification will stipulate the new minimum instream flows as shown in Table 1. At this meeting, a question was raised regarding the power production impacts that could result from using the new minimum instream flows at the Project. A production impact model using an exceedence flow methodology previously prepared during the Agency negotiations was updated to include the power costs that the Bonneville Power Administration charges the City. As the Project operates on a net metering basis, the model indicated that the Project's avoided costs would be annually decreased from $73,921 to $73,747. This model estimated an increase in avoided costs of $174, a rise of only 0.24%. Given the accuracy of the model, this is a statistical "net-zero" impact to the City. N:\UAC\Final\Morse Creek License Amendment Update. doc TABLE 1: Morse Creek Minimum Instream Flow Rates in CFS Month Current Proposed January None 48 Feb 1-14 None 48 Feb 15-28 None 50 March None 50 April 85 55 May None 61 June None 61 July 1-15 None 61 July 16-31 None 50 August 1-15 90 50 August 16-31 90 58 September Operation Not Allowed October 1-15 100 69 October 16-31 100 60 November 65 48 December None 48 tn u. U Morse Creek Average Water Flow Rates 250 200 150 100 50 o Jan Feb May Oct Mar Apr Jun Sep Nov Dee Jul Aug 101966-76 USGS 11I2003-08 DOE OProposed Project Minimums I ~ORTANGELES WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: December 9,2008 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: BP A Demand Response Pilot Program Summary: The Bonneville Power Administration recently announced the availability of a demand response pilot program related to automatic meter reading, which was included in the Electric Utility's 2008-2014 Capital Facilities Program. Staff participated in a teleconference and completed a survey expressing interest in the pilot program. Recommendation: For information only, no action requested. Background/Analysis: The Bonneville Power Administration (BPA) recently announced the availability of a new Demand Response Pilot Program related to automatic meter reading, which was included in the Electric Utility's 2008-2014 Capital Facilities Program. Staff participated in a teleconference and completed a survey expressing preliminary interest in the pilot program. The future BP A power sales agreement includes a new tiered rates methodology, which will be in effect beginning October 1, 2011, and creates a need for automatic meter reading and provides opportunities to reduce wholesale generation purchases through a demand response program. The Demand Response Pilot Program will launch in early 2009 with additional pilots conducted through 2011. The City recently conducted an automatic meter reading pilot project and participated in the GridWise and Non-Wires Solutions programs, which are related to the Demand Response Pilot Program. The next step in the utility selection process includes preliminary interviews in December with BP A making their final selection of utility participants in their pilot program by January 15,2009. A copy of BP A announcement of the Demand Response Pilot Program is attached for more information. Attachment: BP A seeks Demand Response Pilot Program Partners N:\UAC\Final\BP A Demand Response Pilot Program.doc BPA Energy Efficiency Announcement: BPA seeks Demand Response pilot program partners November 25, 2008 Bonneville Power Administration (BPA) is seeking partners for Demand Response (DR) pilot programs. An Advanced Direct Load Control pilot program will launch in early 2009, with additional pilots conducted through 2011. Utilities interested in learning more or participating in the programs are asked to comolete a brief survey by Dee. 8, 2008. Why Demand Response? BPA forecasts a constrained capacity in the five-to-10 year planning horizon, which could result in higher market prices. BPA has integrated a demand charge in the post-2011 rate structure as a price signal reflecting the projected value of capacity. Demand Response is one tool utilities can use to mitigate this charge. BPA has initiated a Resource Program to develop a plan, to be completed in September 2010, which uses a forecasting model to look at both supply-side and demand-side options to meet the region's future load growth. The plan will identify BPA's least-cost, least-risk portfolio of supply- and demand-side options for the 20-year planning horizon. The Resource Program will evaluate Demand Response as one option to address the projected capacity shortage. Pilot Program Overview Demand Response is a new initiative for most utilities in the region. BPA would like to collaborate with selected utility customers in a series of pilot projects with substantial engagement on the local level, including program design and verification, outreach to customers and coordination with Trade Allies and other stakeholders. The pilot projects will be conducted in multiple sectors. In addition to the Advanced Direct Load Control pilot launching in early 2009, additional pilot programs under consideration include Emergency/Capacity Market (large commercial/industrial), Dynamic Energy Use and Wind Integration. About the Survey BPA is currently seeking utility partners for the Advanced Direct Load Control (DLC) pilot. Utilities interested in participating in the 2009 Advanced DLC future DR pilots are asked to complete a brief, 10-minute survey by Dec. 8, 2008. The responses to this survey are for information-gathering purposes only and are considered non-binding. The survey can be found at: www.survevmonkeV.com/s.asox?sm=t2oPxaZ 2bWVI 2fDh2v 2bflT5Q 3d 3d Contact Pam Sporborg (503-230-3170, oisoorborg@boa.qov) if you have difficulty accessing the online tool. If you are unable to complete the survey by Dec. 8, please contact Pam Sporborg by Dec. 5, 2008. Selection Criteria Because BPA expects utility partnership interest in the Advanced DLC pilot to exceed current ability to staff and fund such projects the following selection criteria will be used to identify pilot partners: . Dedicated Staff. Utility partners must be able to contribute in-house staff for local project management. · Co-Funding. BPA expects utility partners to co-fund a portion of the project costs. However, BPA recognizes that many utilities have already set their 2009 budgets; therefore, BPA will consider co-funding over a 2-year project timeframe. · Commitment to a 50% installation rate by July I, 2009, with 100% installation by Sept. 30, 2009. BPA will conduct preliminary test events during the 2010 winter heating season in January/February, gathering a full year of data for FY 2010. This will require a significant utility partner commitment of time and resources in winter/spring 2009 to recruit customers, train contractors and install equipment. . Advanced Metering Infrastructure (AMI) or Communications System. Utility partners must have the ability to communicate with their customers in hourly increments (at a minimum) through either a 2-way AMI system or other communications medium (radio, wireless, etc). Technologies that allow communication closer to real-time will be prioritized for selection as a pilot participant. · Geographic Diversity. If more than one utility is selected, BPA will implement this pilot program in a variety of heating and cooling zones. BPA will work collaboratively with the selected utility partner(s) to finalize program design and identify appropriate technology vendors and installation contractors. BPA and the utility partner will sign a Memorandum of Understanding detailing these decisions and conditions. Projected Timeline: Dec. 4, 2008 Brown Bag Q&A. Noon. Contact your Energy Efficiency Representative for additional information. Survey of interest due Preliminary interviews completed Final selection of utility partners Design phase Advanced Direct Load Control pilot program implementation phase begins Dec. 8, 2008 Dec. 15, 2008 Jan. 15, 2009 Jan. 15-Mar. 1, 2009 Mar.1, 2009 For more information contact Pam Sporborg (503-230-3170, oisoorborq@boa.qov) or your Energy Efficiency Representative: Tom Hannon, 509-625-1360, tkhannon@lboa.gov Margaret Lewis, 503-230-7552, mllewis@boa.qov Lloyd Meyer, 503-230-7557, Icmever@lboa.gov Rosalie Nourse, 509-625-1368, rnourse@lboa.qov Melissa Podeszwa, 206-220-6772, mjpodeszwa@lboa.qov Mark Ralston, 503-230-3175, mdralston@boa.qov Boyd Wilson, 509-527-6217, bwilson@boa.qov "