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HomeMy WebLinkAboutMinutes 03/13/1995UTILITY ADVISORY COMMITTEE Port Angeles, Washington March 13, 1995 Call to Order: Chairman Myers called the meeting to order at 4:35 p.m. Roll Call: Members Present: Cathleen McKeown, Joe Michalczik, Bill Myers and Larry Schueler. Members Absent: Gary Braun Staff Present: C. Knutson, B. Titus, C. Hagar, and S. Kenyon. III. Approval of Minates February 13, 1995 Meeting Councilmember McKeown moved to approve the minutes of the February 13, 1995, meeting as written. The motion was seconded by Joe Michalczik. A vote was taken on the motion, which carried by a majority vote, with Councilman Schueler abstaining. IV. Discussion Items: A. Residential Electric Rate Comparison (Response to Violet Creeiman) Customer Service Manager explained how he arrived at the rate comparison for Ms. Creelman and noted that Port Angeles has the second highest base rate of any public utility in Western Washington. However, with the exception of Lewis County, the City of Centralia and Cowlitz County, who produce most of their own power, the City of Port Angeles has the lowest energy charge of any public utility in Western Washington. In reviewing the breakdown of the base charge, Light Director Titus pointed out that most of this is fixed costs from the Finance Department including data processing, accounting and meter reading. Director Titus then gave an explanation of the Administrative Allocation. Discussion followed regarding the breakdown of the cost components and cost categories. Ms. Creelman restated her original complaint, that the $11.00 per month base charge is unjust for those who attempt to keep their electric costs down through weatherization as well as frugal use of electricity. It was noted that Ms. Creelman's utility charges are not out of line with other utility districts in the area. -1- Utility Advisory Committee February 13, 1995 During the discussion, Councilmembers Schueler and McKeown requested that discussion of Senior Citizens Discounts he addressed at a future meeting. It was explained by Mr. Michalczik that there is a cost involved in simply having the wiring come into your home whether one uses the power or not. That is what the $11 base charge covers. Ms. Creelman still felt she was subsidizing others. Chairman Myers thanked Ms. Creelman for her input, but felt there was no way the base charge could be decreased at this time due to cost of service. He invited Ms. Creelman to address this issue again in the future in the event there was a change to cost of service. B. Changes to City Light Policy and Procedure Light Director Titus explained the need for changes to the City Light Policy and Procedure for Line Extensions. This item was discussed at a previous meeting, and it was agreed at that time that it needed to be modified to come into compliance with the Comprehensive Plan issues addressing undergrounding. There was a review of previous discussion. Further discussion followed, and the Committee felt this policy must be stronger in order to ensure compliance; however, there was also concern expressed over increasing the cost of building new homes. Joe Michalczik moved to anaend Section 3.1 of Policy No. S-02B to read "....exceed the cost of overhead facilities by more than 250%. The motion died for lack of a second. Councihnan Schueler moved to amend Section 3.1 of Policy No. S-02B to read "....exceed the cost of overhead facilities by more than 200%. Councilmember McKeown seconded the motion. After further discussion regarding underground line extensions, a vote was taken on the motion which resulted in a tie vote with Councilinembers Schueler and McKeown voting for and Joe Michalczik and Bill Myers voting against. Councilmember McKeown stated that she would have to leave shortly due to a previous commitment. Director Titus asked that item E. Land-Locked Facility Conversions be addressed next, as he would like input from the Councilmembers. E. Land Locked Facility Conversions Light Director Titus defined land-locked facilities and explained the current policy regarding them. He further stated that there is a situation where, in conjunction with a waterline replacement project, a land-locked area can be eliminated. Using a map included in the packet, Director Titus showed the area under discussion and how the conversion would take place. A discussion followed, and it was the general consensus of the Committee that the existing policy regarding land locked facilities should be maintained. -2- Utility Advisory Committee February 13, 1995 The Committee then returned to Item B. B. Changes to City Light Policy and Procedure Director Titus explained that Service Credits have been discussed in the past, and that eventually it is hoped to phase them out. If a customer needs water or sewer extended, they pay 100% of the cost. City Light currently still provides a service credit against the City's cost, which is currently $1013.00. Director Titus would like to start the process of eliminating this credit, and this amendment to the line extension policy would begin that process. Joe Michalczik moved to amend Section 4.2 of Policy No. S-02B as written. Councilman Schueler seconded the motion, which carried ulmnlmously. Light Director Titus explained that the final change to the Policy and Procedure involved Service Upgrades and Maintenance. He reminded the Committee, that at the last meeting, he had informed them of a potential industrial account at the airport which could cost $60,000+ in upgrades. There is a gray area that might be interpreted that the City would absorb this cost. The Light Department would like to amend the applicable Policy and Procedure to state that there will be no charge to the customer for an upgrade providing the service entrance is less than 400 amps. Discussion followed and Joe Michalczik moved to amend policy S-05B as recommended by City Light. Councilman Schueler seconded the motion. After further brief discussion, a vote was taken on the motion, which carried unanimously. C. Discussion on Joining WPAG and Dropping Out of PNUCC Light Director Titus reviewed the information provided in the packet, and explained that it would be more advantageous for the City of Port Angeles to be a member of the Washington Public Agency Group (WPAG) than the Pacific Northwest Utilities Coordinating Council (PNUCC), as WPAG consists of State of Washington public utilities, including other municipal utilities which share the size and concerns of Port Angeles. Discussion followed, and Director Titus further reviewed what he felt the benefits would be to joining WPAG. Councilman Schueler moved to agree with the recommendation of the City Light Department and change membership from PNUCC to WPAG. Joe Michalczik seconded the motion, which carried unanimously. D. Draft Resource Request for Proposals Director Titus explained that the Request for Proposals went out today, and there have been 31 responses by interested bidders before publication has even occurred. Director Titus noted that one of the parties interested in bidding is the BPA. -3- Utility Advisory Committee February 13, 1995 Joe Michalczik requested a meeting between staff and industry in the near future. This was agreed to, and the parties involved will be in much to set a date and time. E. Basic Changes as a Component of Electric Rates This item was addressed during the discussion of Item A. No further discussion was held, and no action was taken. F. Update on BPA Contract Negotiations and Rate Case This was an information only item. There was no discussion and no action taken. V. Late Items: None. VI. VII. The meeting was adjourned at 7:12 p.m. Chairman Next Meeting: The next meeting of the Utility Advisory Committee will be held on Monday, April 10, 1995, at 4:30 p.m. Adjournment: Deputy City Clerk -4-