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HomeMy WebLinkAboutMinutes 01/13/1997L UTILITY ADVISORY COMMITTEE Port Angeles, Washington January 13, 1997 Call to Order: Chairman Michalczik called the meeting to order at 3:05 p.m. Roll Call: Members Present: Councilmen Braun, Campbell, and Doyle, Joe Michalczik, and Bill Myers. Members Absent: None. Staff Present: C. Knutson, B. Titus, J. Pittis, S. McLain, and C. Hagar. Public Present: Nick Schaefer. IIL Approval of Minutes: Bill Myers moved to approve the minutes of the December 9, 1996, meeting. Councilman Campbell seconded the motion, which carried by a majority, with Coun¢ilmall Braun abstaining due to his absence from that meeting. IV. Discussion Items: A. Election of Officers Councilman Doyle moved to nominate Gary Braun as Chairman. Councilman Campbell seconded the motion. There being no further nominations, a vote was taken on the motion, which carried unanimously. Couneilman Campbell moved to nominate Councilman Doyle as Vice Chairman. Bill Myers seconded the motion. Thexe being no further nominations, a vote was taken on the motion, which carried unanimously. B. Proposed Amendment to By-Laws to Change Meeting Time to 3:00p.m. Attorney Knutson explained that this serves as written notice of the intent to amend the UAC bylaw to change the time of the meetings from 4:30 p.m. to 3:00 p.m.; however, it cannot be enacted until the next meeting. If the UAC wishes to hold the February meeting at 3:00 p.m., it can do so by a majority vote. Bill Myers moved to hold a special meeting of the UAC at 3:00 p.m. on Monday, February 10, 1997. Councilman Campbell seconded the motion, which carried unanimously. C. Electric Rate Impacts Associated with Rayonier Closure Bob Titus, Deputy Director of Utility Services, distributed a chart showing a comparison of -1- Utility Advisory Committee January 13, 1997 energy utilization and cost differences associated with Rayonier closure scenarios and reviewed the information contained in the packet. Mr. Titus explained that the closing of Rayonier Mill will actually save money in the electric utility, as the City will decrease its power purchase from the BPA by about 30%, or approximately $150,000, per year. Of concern to staff is the equitable allocation of the fixed costs previously paid by Rayonier in the customer charge. Deputy Director Titus distributed two spreadsheets dated July 1996, and December 1996, which demonstrated how the fixed costs were originally allocated in the Industrial Transmission 3-Year analysis and the impact as a result of the mill closing. Lengthy discussion ensued, and Nick Schaefer of Daishowa expressed concern that his company was perceived as not paying a fair share of fixed costs. He stated that staff from the City and Daishowa held long meetings to discuss this very issue, and that rates had been set for the IT customer for the next three years. Mr. Schaefer felt that if there was a problem, it should have been discussed then. Councilman Campbell suggested that the Rayonier mill fixed cost issue be made part of the closure negotiations with Rayonier, and that the Council be kept updated on what impact the closure will have on City Light. After further discussion, Councilman Campbell moved to reconunend to City Council that all current rate schedules remain unchanged, that Council be provided with updated infonnation regarding the status of interim and post-closure impacts on City Light, and any power cost reductions to Rayonier or unrecovered costs to City Light be included in the closure negotiations with Rayonier. Bill Myers seconded the motion, which carried unanimously. Extension of Time for Commitment of BPA Flex Funds for Conservation Projects - Information Only No discussion and no action taken. V. Late Items None. VI. Next Meeting: The next meeting of the Utility Advisory Committee will be held Monday, February 10, 1997, at 3:00 p.m. VIII. Adjournment: The meeting adjourned at 4:35 p.m. Deputy City Clerk -2-