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HomeMy WebLinkAboutAgenda Packet 02/10/2009 Utility Advisory Committee Public Works Conference Room Port Angeles, W A 98362 February 10, 2009 3:00 P.M. AGENDA I. Call To Order II. Roll Call III. Approval Of Minutes For January 13, 2009 IV. Late Items V. Discussion Items A. Parametrix Contract Close-Out B. Changes To Upper Golf Course Road Sanitary Sewer Connection Charges C. Web-Based Geographic Information System Upgrades D. BP A Accord And Satisfaction Agreement E. BP A Tier 2 Power Supply Planning Workshop F. Interagency Agreement For Performance Based Contracting G. Conservation Potential Study H. Power Generation Preliminary Feasibility Studies I. BP A Smart Grid Demonstration Project J. Western Climate Initiative VI. Next Meeting Date: March 10, 2009 VII. Adjournment N:\UAC\FINAL\02JO09 UTILITY ADVISORY COMMITTEE GUEST SIGN UP SHEET PRINT NAME ORGANIZATION (l~JV1I~ {] I ~-,ihl\., i V ~L.Je op IA.J I, '" ^. - IJS V D~n. s N: \PWKS \LIGHT\ CONS \ CA TE \ SIGNUP, wpd Utility Advisory Committee Public Works Conference Room Port Angeles, W A 98362 January 13, 2009 3:00p.m. ~~A ,~,. L Call To Order Chairman Reed called the meeting to order at 3:00 p.m. II. Roll Call Members Present: Chairman Reed, Orville Campbell, Karen Rogers, Dan Di Guilio (3:04) Members Absent: Betsy Wharton Staff Present: Kent Myers, Bill Bloor (3:07), Mike Puntenney, Larry Dunbar, Steve Sperr, Cate Rinehart Others Present: None IlL Approval of Minutes: Chairman Reed asked ifthere were any corrections to the minutes of December 9,2008. . Councilmember Rogers moved to approve the minutes. Orville Campbell seconded the motion, which carried unanimously. IV. Late Items Awe Stormwater Legislative Effort Nippon Power Outage Power Generation Feasibility Studies V. Discussion Items: A. Bonneville Power Administration Wholesale Transmission Services Larry Dunbar, Deputy Director of Power Systems, advised that BP A had recently proposed a partial settlement agreement for wholesale transmission services for their fiscal years 2010 and 2011. BP A will be able to determine support for its proposal based on the number of electric utilities that accept the agreement. There was a brief discussion. Information only. No action taken. B. Bonneville Power Administration Demand Response Pilot Project Update Larry Dunbar, Deputy Director of Power Systems, noted that BP A had announced the availability UTILITY ADVISORY COMMITTEE January 13, 2009 of a Demand Response Pilot Project related to advanced metering infrastructure, which was included in the Electric Utility's 2008 - 2014 Capital Facilities Project. A project schedule was included. The schedule included a request for proposal in 2009 and contract award considered in early 2010. There was a brief discussion. Information only. No action taken. C. Morse Creek License Amendment Update Larry Dunbar, Deputy Director of Power Systems, explained that the City had received a Clean Water Act 401 Certification issued by the Washington State Department of Ecology as a component of its Federal Energy Regulatory Commission license amendment for it Morse Creek Hydroelectric Project on December 17,2008. The amendment should be issued by FERC within the next two to three months. A discussion followed. Information only. No action taken. D. Port Angeles Water Treatment Plant Computerized Maintenance Management System Michael Puntenney, Deputy Director of Operations, pointed out that the City had advertised, received, and conducted evaluations for the procurement and implementation of a Computerized Maintenance Management System for the Port Angeles Water Treatment Plant. It was noted that some liability legal issues needed to be addressed in the contract. There was a lengthy discussion. Councilmember Rogers moved to recommend City Councill) award and authorize the Mayor to sign a contract with Weston Solutions, Inc. for a Computerized Maintenance Management System for the Port Angeles Water Treatment PlantJRanney Well Systems and the Water Utility in the amount of 490,014.00, including tax, and authorize the City Manager to make minor modifications to the contract, if necessary, and 2) authorize the City Manager to sign a planned modification to the contract to exercise pre-priced optional task 8 in the amount of $12,000.00, expected for summer 2009. Councilman Di Guilio seconded the motion, which carried unanimously. E. Additional Easements For The Elwha Dam Removal Project Steve Sperr, Engineering Manager, gave a presentation based upon the packet information noting various additional easements needed to address construction of a new Tribal pipeline adjacent to the City's existing Industrial Waterline. A discussion followed. Councilmember Rogers moved to recommend City Council authorized the Mayor to sign easements and related documents for the construction, operation, maintenance, implementation, repair; and inspection of pipelines associated with the Elwah Dam UTILITY ADVISORY COMMITTEE January 13, 2009 Removal Project pending legal review. Councilman Di Guilio seconded the motion, which carried unanimously. F. Interagency Agreement For Performance-Based contraction Lany Dunbar, Deputy Director of Power System, advised that the City had recently been offered participation in the state sponsored performance-based contracting program for reductions in the use of cost of energy, water, wastewater, and solid waste. Services would include assistance in selecting an Energy Service Company and identifying potential projects. A discussion followed. Staff was directed to table this item until the February 10,2009 meeting to allow time to brief the new City Manager on this topic. G. A we Stormater Steve Sperr, Engineering Manager, gave a brief overview on a survey that had recently been done noting maintenance costs had increased. Information only. No action taken. H. Nippon Power Outage Dean Reed, Nippon Paper Industries representative, informed the committee that at approximately 8 a.m. an unknown person hit a utility pole on Valley Street and fled causing a 45 minute power outage. The outage resulted in a $10,000 loss to the mill. City crews responded rapidly and a police investigation is underway. L Power Generation Preliminary Feasibility Studies Lany Dunbar, Deputy Director of Power Systems, announced that Energy Northwest representatives had offered to conduct preliminary technical/financial feasibility studies for cogeneration at Port Angeles Hardwood regarding waste steam and generation using the landfill gas collection system. There would be no cost to the City unless a project was completed. There was a brief discussion. Information only. No action taken. VI. Next Meeting Date: January 13, 2009 VIL Adjournment: The meeting was adjourned at 4:14 p.m. Chairman Reed Cate Rinehart, Admin Spec IT Date: To: From: Subject: ~I..'.' )0: iR' )T' I'.P;.'.....'.'.'....... N.' rG.r 'E' iLl Er :'8' I, ! "..,.7 "".// "I"',, , / ,,', !",,)..!, ,[ .,'"l,') ",/f , ;' C -: i t M ...........; .", .,..J .........__< WAS H I N G TON, U. S. A. Utility Advisory Committee Memo February 10, 2009 Utility Advisory Committee Stephen Sperr, P.E., City Engineer Parametrix Consultant Agreement for Landfill Services Summary: City staff negotiated a final close-out ofParametrix Consultant Agreement 07-11, addressing additional design and construction management work completed in support of two Solid Waste Landfill construction projects including: 02-21 Landfill Shoreline Stabilization; and 06-22 Landfill Closure. Recommendation: Forward a favorable recommendation to City Council to approve Amendment No.1 to Consultant Agreement 07-11, increasing the total amount by $66,325.00, from $694,491.00 to $760,816.00. Background/Analysis: Parametrix provided engineering design, construction, and environmental monitoring support services for the Solid Waste and Wastewater Utilities since 1992. The subject agreement, signed in April 2007, was for an amount not to exceed $694,491.00. The major tasks for the agreement included final cell 3 closure design and construction support, shoreline stabilization (Revetment Wall) construction support, solid waste operations support, and related permitting and compliance activities. Parametrix completed additional work outside the original scope of work under the terms of the agreement. The understanding at the time of a contract extension granted to Parametrix in January of 2008, extending the contracting through March 31, 2008, was that the additional effort would not result in the need to increase the total agreement amount. However, subsequent to this time extension, Parametrix realized that their understanding of the total contract amount erroneously assumed a not to exceed amount of $844,491. They had included in this amount $150,000 that had been added to a previous agreement with Parametrix in February 2007, while the terms of the current agreement were still being negotiated. The end result of this clerical error was the wrong assumption that there was enough money in the current agreement to cover the costs associated with additional work either directed by the City, or necessary in the completion ofParametrix's construction management efforts associated with the completion of the Closure of Landfill Cell 3 and Revetment Wall construction projects in 2007- 2008. N:\UAC\Final\Parametrix Consultant Agreement for Landfill Services.doc Parametrix Consulting Agreement for Landfill Services February 10,2009 Page 2 Parametrix originally identified and billed the City for work in the amount of $135,280 over the "not to exceed" amount of $694,491.00. The City denied payment for this additional work in excess of the agreement amount. Discussions with Parametrix in the following months, July through December of 2008, clarified the reasons why this work was completed without an amendment adding additional funds to the agreement at the appropriate time. City staff agreed with Parametrix that the additional work was necessary, but disagreed with the method by which some of it was executed. Ensuing negotiations between City staff and Parametrix reduced the amount in questions to $66,325.00. A description of the additional work is as follows: 1. Three months of additional Project Management, which includes all contract activities for the three-month extension to the period of performance from December 31, 2007 to March 31, 2008. Specific scope elements included client correspondence, financial tracking, responding to client requests for information, monitoring schedule of deliverables, coordinating and implementing staffing. The proposed fee agreement for three months of project management is $11,111. 2. Preparing a new Sampling and Analysis Plan for post-closure maintenance. This work was in response to Department of Ecology (DOE) requests for updated, instead of amended plans, which was assumed in the original scope of work. The proposed fee agreement for the revised Sampling and Analysis Plan is $6,552. 3. Additional effort for revising Well Installation plans and overseeing the installation of an additional monitoring well. This work was in response to DOE and Clallam County Environmental Health requests for a third monitoring well and expanded well monitoring. The proposed fee agreement for this additional work is $1,090. 4. Completing a Tidal Study and subsequent Tidal Study Report in response to requests from the DOE for more information than was anticipated in the original scope of work. The proposed fee agreement for this additional work is $12,513. 5. Parametrix's effort in responding to, and negotiating with, regulatory agencies, overseeing the cleanup of an Oil Spill that occurred during final excavation activities on the Revetment Wall. This work was in response to unanticipated conditions. The proposed fee agreement for this additional work is $35,059. City staff does recognize that Parametrix has played a critical role in assisting the City in its management of solid waste activities over the past 17 years. Parametrix has provided high quality services that have resulted in significant cost savings to the City during that time, and has consistently and pro actively managed budgets and changes in scope with City staff. The misunderstanding of the budget available for the aforementioned activities is unfortunate, but the value received by the City for this additional effort is real. The proposed fee adjustment totals $66,325.00. The remaining amount billed of $68,955 for Parametrix effort associated with TBH Claim support, completing permitting applications for the Corps of Engineers, or the full extent of Construction Monitoring provided during the Closure of Landfill Cell 3 or Revetment Wall construction was denied during negotiation with City staff. Staff recommends that the Utility Advisory Committee forward a favorable recommendation to City Council to approve Amendment No.1 to Consultant Agreement 07-11, increasing the total amount by $66,325.00, from $694,491.00 to $760,816.00. Funds would come from the Solid Waste Post-Closure fund, which received sufficient funds from the now-closed Solid Waste Closure fund to cover this amount. . ~ORTANGELES CITY OF WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: February 10,2009 To: Utility Advisory Committee From: Stephen Sperr, P.E., City Engineer Subject: Changes to Upper Golf Course Road Sanitary Sewer Connection Charges Summary: The Upper Golf Course Road Sanitary Sewer Connection Charges established by Ordinance 3038 should be updated, to reflect current development and zoning standards. The proposed change in fee structure would encourage additional connections, increase development opportunities, and reduce the cost for development as compared to when the ordinance was passed in 1999. Recommendation: Forward a favorable recommendation to City Council to proceed with a public hearing and approve the proposed changes to PAMC 13.72. Background/Analysis: In 1999, the City Council passed Ordinance 3038, establishing a charge for connection to the Upper Golf Course Road sanitary sewer. This charge is applied to any new connection to the sanitary sewer facilities constructed by the City for Utility Local Improvement District (UUD) 215. The Upper Golf Course Road sewer connection charge applies to all properties outside UUD 215, as well as to sewer service connections for properties within UUD 215 for which equivalent service connections were not assessed under Ordinance 3037 and pursuant to UUD 215. Ordinance 3038 was premised on 52 potential connections. The goal of the ordinance was to recover $369,270.72 in construction costs. To date, there have been no connections subject to this charge. Therefore, no funds have been collected. The number of potential connections based on the law as it applies today is calculated to be 188. The 188 connections is based on current data regarding parcels in the area, and applicable zoning and other development standards. Based on 188 potential connections, the resulting per connection fee would be $1,964.20, in contrast to the $7,101.36 under the current ordinance. City staff supports the proposed change to Port Angeles Municipal Code 13.72, with the acknowledgement that an immediate benefit of this change will be a reduction in the costs associated with the development of low-income housing by the Housing Authority of Clallam County in the vicinity of Golf Course and Lindberg Roads. Staff recommends that the Utility Advisory Committee forward a favorable recommendation to City Council to proceed with a public hearing and approve the proposed changes to PAMC 13.72. Attachments: Map ofUUD 215 and surrounding area Draft Ordinance N:\UAC\Final\Upper Golf Course Rd Sewer Connection Charges.doc "'cd. '\~~. , .~ : : ~l., , . . <.,-., ~ '. - -, - - J! ; . '-...' .' J I .. f!:1. - ~~'_JJ l I, , ~ ; " - _4 - ... ."-J ....."'....... ---1 . i 1 I j : I j i t I i ..-......-......-.."'..-....-.......--.;--..-......-......-..---...--........-....... I- Ii -, . -- .-. ..."., - I I' Maddock Rd. .: 1 · 'ci, 1 n: --, f. ~, '::1' o ,C,) Connect;..- "S"--- C~~;ge { - -OUts' ----11 -- lete 0' _(jlID 215 - ~- ..... ,- - --_!~._. ',-....... .. -- ~~ - This map is not intended to be used as a legal description. This map/drawing is produced by the City of Port Angeles for its own use and purposes. Any other use of this map/drawing shull not be the responsibility of the Ory. Vertical Datum = NA VD 88 Horizon/al Datum = NAD 83/9 J 6 N 500 Feet Area map of ULlO 215 Map Legend WW Manhole ULlO 215 . WWater main ULlO 215 WW Manhole . WW main City Boundary r"'....--l r--I I r- 1 ; ,'," r.........J L___, : 1___, UGA Boundary Edge of road /v/ Alley Driveway ~Street Parcels Building ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, revlSlng Chapter 13.72 of the Port Angeles Municipal Code relating to Upper Golf Course Road Sanitary Sewer Connection Charges. THE CITY COUNCIL OF THE CITY OF PORT ANGELES DO HEREBY ORDAIN as follows: Section 1. Ordinance 3038, and Chapter 13.72 of the Port Angeles Municipal Code are hereby amended by amending PAMC 13.72.030 and 13.72.090 to read as follows: 13.72.030 - Upper Golf Course Road Sewer Connection Charge - Amount. The Upper Golf Course Road sewer connection charge shall be $7,101.36 $1.964.20 per connection. 13.72.090 - Upper Golf Course Road Sewer Connection Charge - Interest. Pursuant to RCW 35.92.025, a charge for interest shall be added to the Upper Golf Course Road sewer connection charge. When a connection is made to a lot that was in existence on November 26. 1999. and has not been subdivided since that date. Such interest shall be from the date of final formation of UUD 215 until payment of the Upper Golf Course Road sewer connection charge, not to exceed ten (10) years. When a connection is made to a lot that was created bv subdivision after November 26. 1999. such interest shall be from the effective date of this ordinance; provided however. that no interest shall be charged for connection fees paid within 120 days after the effective date of this ordinance. The interest charged shall be calculated at a rate commensurate with the rate of interest applicable to the City at the time of construction of the sewer facilities, not to exceed ten (10) percent per year; provided that the aggregate amount of interest shall not exceed the amount of the Upper Golf Course Road sewer connection charge unless authorized by amendment of applicable state law. Section 2 - Corrections. The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of the scrivener' s/clerical errors, references, ordinance numbering, section/subsection numbers and any references thereto. -1- Section 3 - Severability. If any provisions of this Ordinance, or its application to any person or circumstances, are held invalid, the remainder of the Ordinance, or application of the provisions of the Ordinance to other persons or circumstances, is not affected. Section 4 - Effective Date. This Ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum. This ordinance shall take effect five days following the date of its publication by summary. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the _ day of February, 2009. MAYOR ATTEST: Becky J. Upton, City Clerk APPROVED AS TO FORM: William E. Bloor, City Attorney PUBLISHED: ,2009 By Summary G:ILegaL BackupIORDINANCES&RESOLUTIONSIORDINANCES.2009\3-GoltcourseSewerConnChgs.Chap.13. 72.020509. wpd -2- Date: To: From: Subject: ~:..' .0........ R..'. .'.T. '.'Pt.' N...... i.G.... iE; !L..'......E...' is.'...' !) I)? I' / .! II); i; I d'::' ,~! i t...... N ! r ,....,......., "',, ....; p.-.-.-........., WAS H I N G TON, U. S. A. Utility Advisory Committee Memo February 10, 2009 Utility Advisory Committee Stephen Sperr, P.E., City Engineer Web-Based Geographic Information System Upgrades Summary: Phased upgrades to the City's electronic systems, including its Geographic Information System, are needed to enhance access to utility, zoning, parcel, and other information by both the public and City Departments. The scope of these upgrades necessitates them being considered a capital project so that the work can be capitalized after implementation. Recommendation: Forward a favorable recommendation to City Council to authorize the Web-based GIS upgrades using existing utility funds, for a total amount estimated at $63,537. Background/Analysis: One of the Public Works and Utilities Department goals in 2008 was a phased upgrade of the City's Geographic Information System (GIS), so that it would be Web- based. This would have a number of advantages, including the following: · Allowing public access to most of the GIS information through a website link, · lOx faster access to the same information by Public Works and Utilities personnel located at the Corporation Yard, Wastewater Treatment Plant and Light Operations building, · Enable integration of a Computerized Maintenance Management System (CMMS) being developed for the Port Angeles Water Treatment Plant (P A WTP) into the City's GIS, · An upgrade to the City's Laserfiche public document recording system, · Expansion of storage/backup of the City's electronic files, and · Enabling easier access by HTE (the City's financial software) to GIS data on City facilities through Looking Glass software. However, funds to cover these upgrades were not originally budgeted in the 2008 City budget. Toward the end of 2008, staff revisited the issue and identified sufficient funds available in the 2008 Water, Wastewater and Stormwater Utility budgets to implement the first phase of these upgrades, which included a software version upgrade to the existing GIS system for $10,800 and the system design and purchase of proxy server hardware for the web-based system upgrade for $21,876. The total cost of this first phase was $32,676. N:\UAC\Final\Web-based GIS upgrades. doc Web-Based Geographic Information System Upgrade February 10, 2009 Page 2 The second phase includes the fiber connection, server hardware, remote server harddrives for data storage and backup, and SQL and operating system upgrades for our existing GIS and Laserfiche servers. The second phase of this will is estimated to be $30, 861 which will be funded from utility funds. The total cost of phases one and two total $63,537. Due to the total cost of hardware and software, the proposed Web-based GIS upgrades should be considered a capital project, so that it can be capitalized after full implementation. The recommended funding sources and amounts are as follows: Funding Sources Amount Phase 1 (2008) Water Utility $18,676 Wastewater Utility 8,000 Stormwater Utility 6,000 Subtotal, 2008 32,676 Phase 2 (2009) Water Utility (P A WTP fund) 14,401 Wastewater Utility 8,230 Light Operations Utility 8,230 Subtotal, 2009 30,861 Total $63,537 Staff recommends that the Utility Advisory Committee forward a favorable recommendation to City Council to authorize the purchase of Web-based GIS upgrades using existing utility funds, for a total amount estimated at $63,537. ~' O' R' T":A;.' N'Gm'E' 'L" E' 'S" , ...'..l... .U i i ~ ': .....1........ l[ ( ~ ;",:' j ;.. ji i I, j..."V - __ 'J~ ""1,,. .. ____1___ _! _ ,\ "i _ ,,},1'i! ___..1 __~,..i,~ j / ~ '_'__"_' I . __ _".,.....: WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: February 10, 2009 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Bonneville Power Adminstration Accord and Satisfaction Agreement Summary: The Bonneville Power Administration and staff are interested in terminating the billing credit agreement and fulfilling the City's responsibilities under a legacy conservation agreement. If the agreements remain in effect the City will continue to be required to prepare quarterly reports, invoices and payments for at least an additional fourteen years. Recommendation: Forward a favorable recommendation to City Council to approve and authorize the Director of Public Works and Utilities to sign the Accord and Satisfaction Agreement. Background/Analysis: Approaching 30 years ago the City entered into a zero interest weatherization loan agreement with the Bonneville Power Administration (BP A). Under the agreement BP A provided the City capital to loan to its customers, which are repaid to the City then to the BPA upon the sale of the customer's home. Although the agreement has been terminated, the City's financial responsibilities will continue until approximately $284,200 in outstanding customer loans are repaid to BP A. Almost 20 years ago the City entered into a billing credit agreement with BP A, which expires in year 2022. Under the agreement the City made energy efficiency improvements to its electrical distribution system in exchange for receiving billing credits from BP A. The billing credit is calculated quarterly based on a variety of determinants and rates, which is anticipated to provide $249,200 in total revenues through year 2022. Staff in cooperation with BP A has sought termination of the billing credit agreement in conjunction with satisfaction of the City's financial responsibilities for conservation loans. Based on calculating the net present value of the City's expenses and revenues under both agreements, the City would have to pay $24,100 to BP A for weatherization loan expenses that exceed billing credit revenues. Adequate cash reserves exist within the conservation fund for that expense, which were provided by BP A. Staff recommends that the UAC forward a favorable recommendation to City Council to approve and authorize the Director of Public Works and Utilities to sign the Accord and Satisfaction Agreement. N:\UAC\Final\BPA Accord and Satisfaction Agreement.doc ~ORTANGELES WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: February 10,2009 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Bonneville Power Administration Tier 2 Power Supply Planning Workshop Summary: The City must make a commitment to the Bonneville Power Administration for Tier 2 power supply by November 1,2009. A workshop is being planned to provide the Utility Advisory Committee with more information about BP A Tier 2 products and other power supply options. ,Recommendation: Select the date of the NWPP A Tier 2 power planning workshop. Background/Analysis: On November 18,2008, City Council approved a Power Sales Agreement with the Bonneville Power Administration (BP A). The new Power Sales Agreement will commence on October 1,2011 and conclude on September 30,2028. The primary change in the new Power Sales Agreement is a shift from average embedded melded rates to a Tiered Rate Methodology (TRM). It is anticipated that about 97% of the City's power supply will be provided by BP A under the Tier 1 rate, which includes the federal based system. Tier 1 is anticipated to be similar to today's wholesale costs. The remaining 3% of the City's power supply needs could be provided by BP A under the Tier 2 rate. A Tier 2 commitment to BP A must be provided by November 1,2009. Other power supply alternatives should also be considered as part of a Tier 2 commitment to BP A. As part of the City's membership with the Northwest Public Power Association (NWPPA), staff is organizing an on-site Tier 2 power supply planning workshop. The workshop will be held over two consecutive days, beginning at 9AM and concluding by 3PM each day (lunch provided). The purpose of the workshop will be to provide the Utility Advisory Committee with more information about BP A Tier 2 products and other power supply options. Other power supply options include but are not limited to conservation, generation within our service area, renewable resources, power purchase agreements with Energy Northwest, and market purchases. The NWPP A workshop will be lead by Mr. Bryan Singletary, who is a nationally recognized lecturer and trainer in utility strategic planning. Staff requests that the members of the Utility Advisory Committee review their availability for the months of June and July 2009 so that a date can be set for a two consecutive day workshop. Mr. Singletary's current availability is as follows: June 2-4, 9-11, and 23-26; and July 7-10. A draft of the workshop agenda is attached for more information. Attachment: Draft workshop agenda N:\UAC\FinaI\Tier 2 Power Planning Workshop. doc 2/10/2009 DRAFT NWPPA Power Supply Planning Workshop City of Port Angeles Item Milestones Tentative Dates Power Supply Considerations - Workshop A Topics Electric utility & tiered rates - setting the stage Power supply strategic planning Distribution utility competencies Tiered Rates Overview 1 Tier 2 Options A & B Bryan Singletary Tier 2 Power Supply Options - Workshop A Topics BPA HWM Forecast, Tier 2 FY2012-2028 Load Forecast BPA Shared Rate Plan Option BPA Power Sales Agreement Notices & Committments BPA Presentation 2 BPA Tier 2 Product Options (Short-Term, Vintage, Load Growth) Shannon Greene 3 Energy Northwest Options Within/Outside of Service Area EN Presentation Conservation Potential Assessent (residential, general service, general service demand) EES Consulting 4 City Facilities, Primary & Industrial Conservation Potential Phil Lusk 5 Market Purchase Option Phil Lusk 6 Peak Demand Management - Existing Stand-By Generation Terry Dalhquist 7 Peak Demand Management - Future AMI Demand-Response Larry Dunbar 8 Renewable Resource Portfolio Standard Considerations Larry Dunbar 9 Western Climate Initiative & GHG Emission Standard Larry Dunbar Tier 2 Power Supply Direction - Workshop B Topics A Tier 2 Diversification from BPA - Option A BPA Short-Term Product Selection Resource Long Position Strategy Bryan Singletary Resource Preferences (e.g., Local, Publicly Owned, Green?) Group Facilitation Resource Portfolio Resource Attributes & Development Timelines Resource Economic Analysis & Rate Impacts Resource Risk Assessments & Mitigation Bryan Singletary Resource Portfolio Selection Group Facilitation B Tier 2 Long-Term Reliance on BPA - Option B Bryan Singletary Vintage or Load Growth Product Selection Group Facilitation UAC recommendation to City Council (A or B) 10/13/2009 City Council BPA Tier 2 Product Decisions 10/20/2009 BPA Tier 2 Product Decisions Deadline 11/1/2009 D'Of .Ri 'T'. il; ^ lNrGt iE"iLi E"iS' i .i~ '),/i:rl. ,. J " 'e':, " WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: February 10, 2009 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Interagency Agreement For Performance-Based Contracting . Summary: The City was recently offered participation in a State sponsored performance-based contracting program for reductions in the cost of energy, water, wastewater and solid waste. Staff proposes to initially use the program for the City Hall Complex Energy Conservation Improvements and Conservation Voltage Reduction projects. Recomm~ndation: Forward a favorable recommendation to City Council to 1) adopt a resolution in accordance with RCW 39.35A for a performance-based contract, 2) authorize the Public Works and Utilities Director to sign the Interagency Agreement with the State of Washington and subsequent amendments to add and amend projects where utility cost savings, conservation program incentives, and conservation fund are used to pay all project costs, and 3) submit a notice of intent and credit form under the Washington State LOCAL lease/purchase program. Background/Analysis: The City was recently offered participation in a State sponsored performance-based contracting program for reductions in the use or cost of energy, water, wastewater and solid waste. Performance-based contracts are allowed by RCW 39.35A for improvements to City facilities without capital outlay. This approach is worth considering for needed improvements where the utility cost savings, Bonneville Power Administration conservation program incentives, and the conservation fund are used to pay all project costs. As part of the performance-based approach, the Energy Service Company (ESCO) guarantees both the maximum project cost and the minimum utility cost savings. Under this program the State will provide project management services for each City project. Project management services will include: assistance selecting an ESCO and identifying potential improvements, project costs, and utility cost savings; negotiating the scope of work and fee for an audit of a City facility by an ESCO; reviewing and approving the ESCO audit and project proposal; and assistance during ESCO design, bid, construction and final project acceptance. The City would have to pay the State a termination fee in the event it does not implement a project. The State offers the Local Option Capital Asset Lending Program (LOCAL) as a funding source. The first step in the LOCAL program is to submit a non-binding notice of intent and credit form. Staff proposes to initially use a performance-based contract for the City Hall Complex Energy Conservation Improvements and Conservation Voltage Reduction projects, which are part of the 2008-2014 Capital Facilities Plan. N: \U AC\Final\Performance- Based Contract.doc Date: To: From: Subject: D.,.... 'OrR' 'T" ^......IN'G/ 'E; 'L: E: 1ST; 1:::: .,j...i.,X. mi.rt,.i '.)::,' i.i:{ i,j B.________..., ,.__......, r......,...; WAS H I N G TON, U. S. A. Utility Advisory Committee Memo February 10,2009 Utility Advisory Committee Phil Lusk, Power Resources Manager Conservation Potential Study Summary: The City recently contracted with EES Consulting to perform a Conservation Potential Study. The project will consider characteristics unique to the City's electric utility service territory and the available resources. Recommendation: For information only, no action requested. Background/Analysis: A Conservation Potential Study (CPS) is a method used to estimate the amount and cost of energy conservation available over a given timeframe. The essence of a CPS is to develop a "supply curve" of the competing options, so that rational decisions may be made when choosing between alternatives. Using this method, conservation can then be evaluated in a similar fashion as supply-side resources in regards to when the savings occur and for what cost over the life of the resource. Such a schedule will allow the City to rank choices in terms of their relative cost-effectiveness. This CPS will be used to help the City's electric utility determine its most cost-effective energy conservation opportunities and where to better target its future program efforts. EES Consulting has developed a Northwest-specific model to assist in defining where energy conservation potential exists using methods that are consistent with those used regionally. The target customer groups for this CPS are the City's residential and commercial customers. The City's primary, municipal and industrial rate classes will not be included in the CPS. The energy conservation potential will be presented in three ways: 1) technical, 2) economic, and 3) achievable. The technical potential is the amount of energy conservation that would be available regardless of cost. The economic potential is the remaining technical potential after screening for its cost-effectiveness. Achievability rates are applied to the economic potential to reflect impacts and factors that limit the amount of conservation that would be realistically accomplished. The CPS results will be presented to the Utility Advisory Committee at the upcoming Tier 2 Power Supply Planning Workshop. N:\UAC\Final\Conservation Potential Study,doc ~ORTAN ELES WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: February 10, 2008 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Power Generation Preliminary Feasibility Studies Summary: The City is required by the Bonneville Power Administration (BP A) to decide how it will satisfy its October 2011 Tier 2 power supply needs by November 1,2009. Staff requested that Energy Northwest proceed with the preliminary technical/financial feasibility studies for cogeneration at Port Angeles Hardwood and generation using the landfill gas collection system. Recommendation: For information only, no action requested. Background/Analysis: The City is required by the Bonneville Power Administration (BP A) to decide how it will satisfy its October 2011 Tier 2 power supply needs by November 1,2009. The City can choose a BP A Tier 2 product (i.e., short-term, vintage or load growth) and/or a combination of generation options within and outside of our service area, conservation within our service area, and market purchases. On July 15, 2008, City Council approved a resolution to become a member of Energy Northwest. Membership allows the City to selectively participate in generating projects and other services, which can be considered on a case-by-case basis. On January 6,2009, representatives from Energy Northwest visited the City to explore new generation options. Energy Northwest offered to conduct preliminary technical/financial feasibility studies for cogeneration at Port Angeles Hardwood and generation using the landfill gas collection system. As a membership benefit, Energy Northwest will conduct the feasibility studies at no cost to the City. Based on the support received from Port Angeles Hardwood, staff requested that Energy Northwest proceed with the studies for Port Angeles Hardwood and the landfill gas collection system. The study results will be presented to the Utility Advisory Committee at the upcoming Tier 2 Power Supply Planning Workshop. If the results are favorable, the City could consider a joint development agreement with Energy Northwest to develop, finance, construct and operate generation facilities. N:\UAC\Final\Power Generation Feasibility.doc ~I '0/ "Ri /T' i'}.l' . N'G/' rE,it' Ei,!S.i . i ~ j i' I !.. Ii. ii, i i j !~--~.~" ,,,~___'__. ,__, _-~ ( _ ."',, 'oo") "":",,,,} ",'"""J ...:_____.j_~,y ! r........ 1 ! .,..",,,.., ..........; ............., WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: February 10, 2008 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Bonneville Power Administration Smart Grid Demonstration Project Summary: The Bonneville Power Administration recently announced the availability of a Smart Grid Demonstration Project related to advanced metering infrastructure, which was included in the Electric Utility's 2008-2014 Capital Facilities Project. This project is in addition to the recently announced Demand Response pilot project. Recommendation: For information only, no action requested. Background/Analysis: The Bonneville Power Administration (BPA) recently announced the availability of a new Smart Grid Demonstration Program related to automatic meter reading, which was included in the Electric Utility's 2008-2014 Capital Facilities Program. This project is in addition to the recently announced Demand Response pilot project. BP A plans to solicit utility interest in the Smart Grid Demonstration Project Program in February 2009 and non-utility entities in March 2009. It is anticipated that BP A will announce the utilities that will be participating in the project in June 2009. A copy ofBPA announcement of the Smart Grid Demonstration Project is attached for more information. Attachment: BP A Smart Grid Demonstration Project N:\UAC\Final\BP A Smart Grid Demonstration Program. doc .. BONNEVILLE POWER ADMINISTRATION SPA's Pacific Northwest Smart Grid Demonstration Project January 2009 -N::RG\' SMART INNOVATION SPA ENERGY EFFICIENCY v ~ BONNEVILLE POWER ADMINISTRATION SPA's Pacific Northwest Smart Grid Demonstration Project EXECUTIVE SUMMARY To help improve the region's power grid, the Bonneville Power Administration is initiating the Pacific Northwest Smart Grid Demonstration Project. The goal of the project is to determine if and how Smart Grid technology can advance the safety, reliability and efficiency of the network. Smart Grid is a system that uses digital technology to enhance delivery and electricity use through intelligent two-way communication. Power generators, suppliers and users are all part of the solution. Think of the Smart Grid as the internet brought to the electric system. With increased communication and information, Smart Grid can monitor activities in real time, exchange data about supply and demand, and adapt power use during given load requirements. Smart Grid technology includes everything from interactive appliances in homes to substation upgrades and sensors on transmission lines. Consumers, utilities and the environment can all benefit from Smart Grid technology. . Smart Grid allows industrial, commercial and residential users to act as both energy clients and suppliers through a variety of tools. By providing information for informed choices, this feature can save customers money because they decide how and when to use electricity. For example, users can operate equipment during light load hours when power tends to be cheaper or curtail their use during peak hours. In addition to cost savings, this feature helps stabilize the grid by managing supply and demand more effectively. Smart Grid also provides new resources through energy efficiency and helps integrate intermittent renewables such as wind. In this way, Smart Grid can help meet increasing load requirements, reduce greenhouse gasses, promote energy independence and help ensure national security. The applications of Smart Grid technology are seemingly endless and of national importance. The application will more than likely be developed over time in much the same way that digital technology has steadily enhanced the daily lives of Americans. Specifically, the Pacific Northwest Smart Grid Demonstration Project will test decentralized coordination of supply and demand using autonomous controls, advanced sensors and distributed intelligence. BP A will conduct the demonstration on a scale to ensure confidence in the results and provide a national model for utilities. BP A will partner with utilities; renewable energy generation sources; federal, state and local governments; and vendors to facilitate this project. During the project, BPA will build on the principles and lessens learned in the successful Pacific Northwest GridWise Demonstration Project. BPA has committed $10 million over the next five years to the project and will begin with a request for information in March of 2009. After a collaborative design process with partners, BP A will begin field installation in March of 20 1 O. 1 BONNEVILLE POWER ADMINISTRATION ABOUT THE DEMONSTRATION PROJECT The Pacific Northwest Smart Grid Demonstration Project will pilot the future electricity network, a network made more reliable, more flexible, and less costly using autonomous controls, advanced sensors, and distributed intelligence. The goal of the project is to actively test and demonstrate the benefits, issues and opportunities associated with the coming Smart Grid, on a scale that allows confidence in the results, while providing a robust learning environment which will help Pacific Northwest and North American utilities move appropriately from current grid configuration to the Smart Grid required for the coming wide-spread use of variable and decentralized generating resources. The project will test decentralized coordination and control of electric supply and demand while improving the network safety, reliability and efficiency. The Smart Grid tested in the project will empower consumers and allow homes and businesses to act as energy clients and suppliers through a variety of tools including intelligent appliances and local generation such as photovoltaic. The Project will also seamlessly integrate operational characteristics providing stability and reliability of a newly enabled distribution, transmission and generation system that must accommodate rapidly increasingly levels of wind resources. The project will build on the principles and lessens learned in the successful Pacific Northwest GridWise Demonstration Project. However BP A seeks to augment both the size and scope of Pacific Northwest GridWise Demonstration Project by upgrading up to three pairs of neighboring utilities' distribution feeder lines and their associated substations. As the prime sponsor BPA has committed $10 million over the next five years to the project. BP A will be seeking non-utility sponsors of the project in March. At this time BP A is gathering information from various entities operating within the smart grid space. BP A is also currently meeting with various Pacific Northwest Utilities served by BPA to discuss project potential. BPA expects to launch a utility recruitment effort in early February. Potential non-utility project sponsors must at a minimum: 1) demonstrate experience in developing Smart Grid related concepts and technologies, 2) a willingness to agree to abide by and advance the interoperability and other principles of the GridWise Architecture Council, 3) make a financial contribution of a minimum of $1 million per year or in kind contribution for at least four of the five years of the project, 4) provide staff experts to participate in all aspects of project development, conduct and analysis, and 5) provide all data streams to Pacific Northwest National Laboratory. The Project will Demonstrate: A scalable two-way hierarchical communications and controls pathway: A fully distributed system whereby decisions are made at various locations each with specific levels of information granularity. Nodal information will enable decisions improve situational awareness at all operational levels, from the neighborhood level, to the distribution 2 BONNEVILLE POWER ADMINISTRATION transformer, to the feeder, to the substation through the infrastructure chain to the transmission and generation operation suits; thereby enabling local electrical problems to be tracked and handled at the local level. The Pr9ject will Enable: Renewable Energy Integration: Whether as a large wind generation or small distributed generation, renewable energy requires capabilities from the current grid configuration to which it is not designed. Balancing and integrating intermittent renewable generation is a challenge. BPA's project will study and establish balancing capabilities by leveraging DER assets and distributed intelligence. Valuation Streams: Nodal valuation schemes will enable customers and operators to make usage judgments based on locational value signals. Valuation factors include: congestion, constraints, generation mix, carbon expense, wildlife and fish impacts, and current grid stability. Microgrid: Significant steps will be taken through the implementation of the Smart Grid to enable microgrids such as identifying opportunities for self reliant circuits, feeders and substations. Signaling constructs will notify entities of opportunities for micogrid operation and investment. Utility Planning: Locational information provided by the Smart Grid will help utilities with infrastructure, tariff and regulatory planning. Reduced I Better Targeted Distribution and Transmission Capital Investments: By making local controllability and generation observable, smaller and better targeted capital investments should be feasible. Information Sharing across Operational Boundaries: The Smart Grid will enable information sharing across operational boundaries which have been traditionally closed. Information can be shared between the distribution utility and transmission and generation wholesaler(s) or between neighboring utilities to help with contingency response. Essential Elements the Project will Implement: Development of Use Cases: The projects host utilities will have differing interests and goals to consider the project successful. Furthermore technical challenges will be presented by the infrastructure to be upgraded by the project. Therefore collaborative development of a use cases must be accomplished once all parties (sponsors, utilities and vendors) are identified and established. Distributed Communication and Control System: A scalable interoperable communications system which informs operators, allowing manipulation of the distribution grid and all assets connected to that grid. This will involve the creation of a monitoring and automation system capable of reacting in real-time to contingencies. A transactive control system is envisioned, wherein supply and demand resource responses are dynamically induced by a single, shared value signal. 3 BONNEVILLE POWER ADMINISTRATION Information Systems: A virtual enterprise information system will be created through interoperation of information systems. at all levels of the Smart Grid. This will enable the situational awareness required by system operators and the ability to manage cost needed by consumers. The system will enable the creation of value streams for energy generation or consumption and associated environmental considerations such as carbon footprint, fish runs, etc. These value streams will support the implementation of existing and future smart-grid services through which entities at levels throughout generation, transmission, distribution, and end use communicate and cooperate to achieve their energy objectives. The information made available within the virtual enterprise will also support economic and energy use forecasting by consumers, utilities, and other interested parties. User interfaces within the information system will be tailored to provide consumers and other end-users with as much or as little detail as they desire. Cyber Security: It is anticipated that the distributed communication and control system will be implemented using web services and other communication technologies. Consideration of confidentiality, integrity and availability of the data and information for communication and control will be addressed at all stages of the project. Project participants will be expected to work together to implement interoperable communications using existing or emerging standards. Security requirements for the entire system, including web services, will be developed and implemented cooperatively by the participants. Security controls will be designed to minimize risk to the control functionality and risk to the existing power grid. Implementation will be verified initially through acceptance testing. Vulnerability assessment and auditing will be used to assure the continued performance of security functionality. Potential Elements of Study: a. PHEV: Whether the infrastructure upgrade created by the Smart Gird is capable of handling the migratory load associated with the full commercial adoption of plug-in electric hybrid vehicles? b. Electricity Storage: What added benefits does local storage bring to the Smart Grid and where is the best place to locate such devices? c. Grid Friendly: Can the installation autonomous demand side management controls in end-use devices help stabilize the grid without causing end-use customer discomfort? Can these same devices help with other grid issues such as wind integration, voltage and frequency control. d. Smart Grid Ready: Smart appliances are on the horizon. Will customers readily adopt this new technology? At what cost? Will customers find smart appliance to be a benefit? Can smart appliances react to grid contingency and grid needs without compromising consumer comfort? e. Smart Grid SCADA: At what interval will information be passed along the Smart Gird will four second interval data be adequate are will greater visualization be required from SCADA. 4 BONNEVILLE POWER ADMINISTRATION f. SynchroPhasor Integration: How will additional information streams and increased capabilities of the smart distribution grid affect SynchroPhasors? What integration m~asures will need to be taken to alleviate potential destabilization events. g. Atitomated Demand Response Technologies: Can advanced automated demand response technologies increase the capabilities of the demand side to act as a resource for aU needed products and services such as ancillary services, voltage and frequency control and generation. h. Distributed Generation: Is disbursed, non-dispatchable and generally non-locatable. Will the Smart Grid allow greater use of these potential assets? Can a plug-n-play protocol be created for adding these systems onto the distribution grid? Can a monitoring and control system be created that uses these assets to help stabilize the grid function. i. Cyber Security: How is a balanced system created whereby increased functionality is available to operators while ensuring informational and operational security? j. Customer behavioral studies: How will customers react to a Smart Grid? Will customer electric consumption behaviors and patterns differ under a new set of valuation streams? Will customers utilize the capabilities of the Smart Grid? Will customers find value in adopting smart appliances or grid friendly technology? What is the adoption rate? k. Many vendors, many operating protocols, one goal: Can the Smart Grid survive the needs of individual businesses to promote their technology and services while ensuring seamless operation and information sharing while protecting intellectual property rights and business interests? I. Regulatory Barriers: What are the regulatory barriers and can they be identified through a pilot project. How do they differ between the different utilities 5 ~..i:...... iOr'R' ~T' i'P;.f.............I......N..,... :Gr iE' tL..' E,[iS,. i I,~ .. ,~}i..i / . i : ..,; i " 'ii',) . c.. ! ! WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: February 10,2009 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: Western Climate Initiative Summary: There has much recent debate on the emissions of anthropogenic greenhouse gases and their possible impact on the global climate. This memo provides information on the current status of program and regulations being developed for greenhouse gases that may impact the City. Recommendation: For information only, no action requested. Background/Analysis: In 2007, the State of Washington entered into an agreement with six states and four Canadian provinces called the Western Climate Initiative (WCI), which has a goal of reducing regional greenhouse gas (GHG) emissions 15% below 2005 levels by 2020. To accomplish this goal, WCI participants have agreed to three specific tasks: 1) Join a multi-state GHG emissions registry; 2) Develop a regional GHG reduction goal consistent with their own state and provincial goals; and 3) Design a regional cap-and-trade program. The cap-and-trade program will include about one-third of Washington State's emissions and about 50% ofthe emissions in the region when the program is slated to start in 2012. By 2015, the program will expand to include about 90% of the emissions in the state and in the region. Electricity generation is one sector to be covered in 2012, and this includes emissions from electricity generated outside the WCIjurisdictions (or generated by a federal entity or on tribal lands) that are delivered to a WCI jurisdiction for consumption in that jurisdiction. The WCI has not adopted final language on its proposed First Jurisdictional Deliverer (FJD) approach, but the current proposal is that the first entity to take title to the electricity imported into the WCI is the FJD and is consequently responsible for any reporting and compliance obligations. Thus, if power is imported into the State through the Bonneville Power Administration (BP A) and if the BP A does not voluntarily become part of WCI, then the FJD responsibility most likely will flow to the next entity having title to the electricity, such as the City's electric utility. The Department of Ecology (DOE) is promulgating a mandatory annual reporting rule for owners or operators of: 1) On-road motor vehicle fleets emitting at least 2,500 metric tons (MT) of GHG; or 2) Source or source combinations emitting at least 10,000 MT of GHG. A draft rule will likely be issued for public comment in the spring, with the final rule being adopted in summer 2009. In 2007, the City's electric utility had C02 emissions estimated to be 22,850 MT, which is above the proposed DOE reporting level and just below WCI compliance obligation levels of25,000 MT. N:\UAC\Final\Westem Climate Initiative. doc ~ashingtonState Recycling Association PRESS RELEASE February 3, 2009 For further information, contact: Steve McGonigal (206) 244-0311 State Recycling Association Issues Key Points on Markets Troubled global markets for recycled commodities are tied to general economic conditions and will recover with the broader economy. Recent market fluctuations led a drop of 65 percent in three months in prices for used cardboard and big cuts in prices for other recycled materials. The basic connection between recycling markets and other economic trends was emphasized in a statement issued today by Steve McGonigal, executive director of the Washington State Recycling Association. According to McGonigal, "WSRA's experience with recycling markets over many years indicates reason for long-term optimism combined with practical day-to-day commitment to maintaining a strong supply of high quality materials for those markets." He listed the following key perspectives and strategies for stabilizing and strengthening recycling markets: · Markets for recycled materials are closely linked to local, national and international economies and other commodity markets, and they will very likely recover together. · The current market downturn followed a historically long period of record high market pricing, magnifying the drop in commodity prices. Commodity markets always have and always will fluctuate. · The fundamental solid waste management, resource conservation and economic incentives for recycling are still sound. In fact citizens, companies and public agencies alike are continuing to recycle. . Clean, quality recycled commodities are key to fueling the market for new recycled-content products, and many of these commodities are still in demand. Some plastic and paper grades are not currently fmding markets, but we expect demand to increase as the economy strengthens. . A balance of export and domestic markets optimizes recycling. Supporting local manufacturers that use recycled materials increases market stability while promoting green jobs in the Northwest. · The success of recycling depends on consumers, companies and government agencies purchasing recycled-content products. Purchasing recycled products fuels the demand for recycled materials like paper, metal, plastic and wood. . When manufacturers design products for greater recyclability and higher recycled content, recycling markets are strengthened. Founded in 1976, WSRA is one of the longest-standing state recycling associations in the nation, with a diverse membership of 260 companies, agencies and organizations including over 700 individuals involved in all phases ofthe industry. WSRA's mission is to provide leadership and education in order to foster the expansion, diversity and economic vitality of recycling as part of sustainable resource management. 130 Andover Park East, Suite 303, Tukwila, W A 98188 Phone: (206) 244-0311 J.. fax: (206) 244-4413 A. www.wsra...et projects) in lieu of the PTC. In addition, the House version of the legislation enables developers to receive a Department of Energy grant for the value of the subsidy. Potential Value: Continuation of the PTC can reduce the costs of purchase power agreements or partnerships with private developers. Potential Program Limitations: Only available to private developers. , Program Requirements: General d~tails are outlined in the legislation, but DOE (and maybe Treasury) would need to issue rules for exchanging the tax credit into a grant if that House feature of the program element survives. How to Pursue Funds: Private developers would need to follow the existing process for collecting PTCs, or follow the rule development and apply for any grants. Key Government Contact: Assistant Secretary (Tax Policy), Department of the Treasury, 1500 Pennsylvania Ave., NW, Room 3120 Washington, DC 20220 Smart Grid/Meter Grants Program Overview: The 2007 Energy Independence and Security Act authorizes two grant programs for smart grid investments. One provides a 50% matching grant for five demonstration programs. The other provides grants equal to 20% of the costs of qualified "smart grid and smart meter" investments. Both the House and Senate provide $4.5 billion for these programs. The Senate bill directs that no less than $200 million of the funds shall be for energy storage technologies to improve renewable integration. Potential Value: Funding source for qualified "smart" communication, control and management investments in the transmission system, as well as distribution system investments (like "smart meters"). Potential Program Limitations: While the funding level seems significant, given the breadth of technology investments, actual awards may be limited. Program Requirements: General details are outlined in the EISA of 2007 (http://thomas.1oc.gov/cgi-bin/query/F?c110: l:./temp/~cllOTOaeVx:e929784). It should be noted that grant recipients cannot "double-dip" and receive other federal assistance for the same equipment. How to Pursue Funds: DOE will need to publish grant award requirements and processes. Key Government Contact: Office of Electricity Delivery and Energy Reliability, U.S. Department of Energy, 1000 Independence Avenue, SW,Washington, DC 20585,202-586- 1411.