HomeMy WebLinkAboutAgenda Packet 05/08/2007
Utility Advisory Committee
Public Works Conference Room
Port Angeles, W A 98362
May 8, 2007
3:00 P.M.
AGENDA
1. Call To Order
II. Roll Call
III. Approval Of Minutes For April 9,2007
IV. Late Items
V. Discussion Items
A. Stormwater Rate Discussion:Continued
B. Benefit Dump Day
C. GridWise Project Electric Meter Transfer Agreement
D. Electrical Interconnection and Net Metering Standards
E. Time Based Metering and Communications
F. Western Energy Coordinating Council (WECC) Entity Registration
VI. Next Meeting Date: June 12, 2007
VII. Adjournment
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Utility Advisory Committee - Special Meeting
Public Works Conference Room
Port Angeles, W A 98362
April 9, 2007
3:00 P.M.
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AGENDA
I. Call To Order
Chairman Reed called the meeting to order at 3:08 p.m.
II. Roll Call
Members Present:
Chairman Reed, Orville Campbell, Grant Munro, Betsy Wharton,
Karen Rogers
Members Absent:
None
Staff Present:
Mark Madsen, Bill Bloor, Glenn Cutler, Mike Puntenney, Scott
McLain, Gary Kenworthy, Steve Spem, Tom McCabe, Ernie
Klimek, Helen Freilich, Cate Rinehart
Others Present:
Jenny Bailey - Parametrix
Brian Gawley (3:48) - Daily News
Paul Lamoureux - Citizen
Bob Martin - Clallam County
Mike Doherty - Clallam County
III. Approval Of Minutes:
Chairman Reed asked ifthere were any corrections to the minutes of March 13,2007.
Councilman Munro moved to approve the minutes. Orville Campbell seconded the motion,
which carried unanimously.
Chairman Reed asked if there were any corrections to the minutes of March 16, 2007. Orville
Campbell moved to approve the minutes. Councilmember Wharton seconded the motion, which
carried unanimously.
IV.
Late Items:
None
V. Discussion Items:
UTILITY ADVISORY COMMITTEE
April 9, 2007
A. Comprehensive Solid Waste Management Plan (CSWMP) Update
Tom McCabe, Solid Waste Superintendent, introduced Jenny Bailey ofParametrix who gave a
presentation highlighting the goals and objectives of the plan guideline. There was a brief
discussion. Staff was requested to have a complete copy ofthe plan available in the City
Manager's office and to include a copy of the executive summary with the Council memo.
Councilmember Wharton moved to recommend City Council adopt the CSWMP. Orville
Campbell seconded the motion, which carried unanimously.
B. EWTP Easement For The Ebvha Dam Removal Project
Steve Sperr, Engineering Manager, noted that the City, as part of the Memorandum of
Understanding with the National Park Service, agreed to grant an easement over portions of its
properties adjacent to the Elwha River. This easement will allow the National Park Service to
construct the Elwha Water Treatment Plant facilities, and operate and maintain the Elwha Water
Treatment Plant during the dam removal impact period. There was a brief discussion.
Orville Campbell moved to recommend City Council authorize the City Manager to sign an
easement and related documents for the construction, operation, maintenance,
implementation, repair, and inspection of the Elwha Water Treatment Plant by NPS.
Mayor Rogers seconded the motion, which carried unanimously.
C. Consumer ConfidencelWater Quality Report For Calendar Year 2006
Glenn Cutler, Director of Public Works and Utilities, introduced Ernie Klimek who replaced
retired Bill Beverford as the W ater/W astewater Collection Superintendent. Mr. Klimek reviewed
the information in the packet, responded to questions, and provided clarification. It was noted
that the Notice To Water System Users About Your Drinking Water public statement required by
law had caused some concern by customers. Staff was requested to revise the 2006 report to
diffuse the issue. A discussion followed.
No action taken. Information only.
D. Amendment No.1, Brown And Caldwell Consultant Agreement 06-05
Steve Sperr, Engineering Manager, pointed out that the amendment was needed to finalize
technical memos on odor control and a re-rating report for the Wastewater Treatment Plant,
complete septage receiving station design work, review specialized equipment that the City will
be installing, and provide construction support services for the East Urban Growth Area sewer
extension contract. There was a brief discussion.
Councilmember Wharton moved to recommend City Council authorize the Mayor to sign
UTILITY ADVISORY COMMITTEE
April 9, 2007
Amendment No.1 to Agreement 06-05 with Brown and Caldwell, increasing the maximum
compensation amount under the agreement by $187,000, from $850,000 to $1,037,000.
Orville Campbell seconded the motion, which carried unanimously.
E. Public Works Trust Fund Loan Application For CSO Phase 1 Projects
Steve Sperr, Engineering Manager, confirmed that the City was pursuing two additional
Washington State Public Works Tmst Fund loans to assist in funding $19 million in Combined
Sewer Overflow Phase 1 Projects. Applications for both loans are due on or before May 7,2007.
There was a lengthy discussion. Staff was advised to modify their original recommendation and
to revisit the issued should either or both loans be approved.
Councilman Munro moved to recommend City Council authorize the Mayor to sign a
PWTF Pre-Construction Loan Application certification, in an amount not to exceed
$885,000, and sign a PWTF Construction Loan Application certification, in an amount not
to exceed $10,000,000. Councilmember Wharton seconded the motion, which carried
unanimously.
F. Detailed Design Of Phase 1 CSO Projects, Brown And Caldwell Consultant
Agreement Amendment No.2, Project 06-01
Steve Sperr, Engineering Manager, reported that the pre-design effort for Phase 1 had been
'completed and detailed design of the Phase 1 CSO Projects needed to begin to meet DOE
compliance schedules. Various tasks were reviewed and discussed.
Councilman Munro moved to recommend City Council authorize the Mayor to sign
Amendment No.2 to the Agreement with Brown and Caldwell for the detailed design of
Phase 1 CSO Projects, increasing the maximum compensation amount under the
agreement by $1,320,000, from $425,000 to $1,745,000. Councilmember Wharton seconded
the motion, which carried unanimously.
VI. Executive Session
Adjourn to executive session - 4:45 p.m.
Executive session under RCW 42.30.110(1)(c) to discuss with legal counsel potential litigation,
(i) to consider the terms on which real estate will be offered for sale, and (d) contract negotiation.
Mayor Rogers left at 5:35 p.m. Executive session concluded at 5:48 p.m. Meeting resumed in
regular session.
G. 2007 Consultant Agreement With Parametrix, Inc. For Engineering Services
Gary Kenworthy, City Engineer, confirmed that Parametrix had been selected to continue to
provide engineering services related to the Solid Waste Utility and Landfill including directed
UTILITY ADVISORY COMMITTEE
April 9, 2007
services. Major tasks for 2007 include operations support, final closure design and construction
support, and shoreline stabilization construction support. There was a brief discussion.
Councilmember Wharton moved to recommend City Council approve and authorize the
Mayor to sign an agreement with Parametrix for 2007 Engineering Services for an amount
not to exceed $694,491, which includes $50,000 for directed services that can only be used
with staff's prior approval. Orville Campbell seconded the motion, which carried
unanimously.
H. Stornnvater Rate Discllssion
Delayed to a later meeting.
VIL Next Meeting Date: May 8, 2007
VIIL Adjollrnment: The meeting was adjoumed at 5:45 p.m.
Chairman Reed
Cate Rinehart, Admin Spec II
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~ORTANGELES
WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
Date:
Apri19,2007
To:
Utility Advisory Committee
From:
Gary W. Kenworthy P.E., Deputy Director of Public Works/City Engineer
Subject:
Stormwater Utility Rates Continued, Additional Requested Information
Summary: This is a continuation of discussions started in May 2006 regarding the need for added
funding for the Stonnwater Utility.
Recommendation: Continue the discussion regarding the funding needs, capital program,
and rate options and provide direction to staff for future action.
Background/Analysis: At the March 13,2007 only limited time was available for discussion of the
Stormwater Utility rates. It was decided to continue the discussion at the next regular UAC meeting
and it was requested that additional information be provided regarding: 1. When the rates need to be
set in time to be included in the 2008 tax mailing; 2. Possible Mitigation Credits; 3. Proposed 2 year
budget for the Stormwater Utility; and 4. Develop a model to allow investigation of various rate
options.
The deadline for the 2008 tax mailing is November 2007. A rate analysis model has been developed
to allow UAC members the opportunity to investigate revenue impacts of various combinations of
base rates, cap limits, and impervious area changes.
Weare preparing a proposed two year budget and investigating rate adjustments for stormwater
runoff mitigation measures installed by property owners. These will be distributed at the meeting if
requested information from other municipalities regarding these items are received in time.
Additional copies ofthe March 13, 2007 UAC memo on Stormwater Utility Rates will be available
at the meeting.
Stormwater Rates 2007
March 13,2007
Page 2/3
Stormwater Revenue Calculator
Model Current
Residential Customers 6,589 6,589
Non-Residential Customers 1,546 1,546
Monthly Rate per Res. ERU $3 $3
Monthly Rate per Non-ResERU $3 $3
Impervious ERU area (s.t.) 4,000 4,000
~otal Residential Impervious Area 14,455,923 38% 14,455,923 38%
otal Non-Residential Impervious Area 23,417,675 62% 23,417,675 62%
trotallmpervious Areas 37,873,599 100% 37,873,599 100%
HH! """".,,!J.,rea ER!J CE1'O 1n 10
Estimated Annual Residential Revenue $237,204 61% $234,842 65%
Estimated Annual Non-Residential Revenue $149,684 39% $125,238 35%
Total Estimated Annual Revenues $386,888 100% $360,080 100%
Less Utility(8%) & Proc.(1 %) $34,820 $32,407
Net Revenue '$ :'iPf~'i...OrJO $327,673
Sample Model Runs
$3 $4 $5 $6 $3 $3 $4 $4 $4 $<1 $4 $4
$3 $4 $5 $1[; $3 $3 $4 $4 $4 $4 $4 $4
4,000 4,000 4,000 4,000 3,000 2,000 2,000 2,000 2,000 2,000 2,500 3,000
38% 38% 38% 38% 38% 38% 38% 38% 38% 38% 38% 38%
62% 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% 62%
10 10 10 10 10 10 10 20 50 1,000 1,000 1,000
61% 61% 61% 61% 57% 51% 51% 46% 42% 36% 41% 45%
39% 39% 39% 39% 43% 49% 49% 54% 58% 64% 59% 55%
I~')&:::') .- 1..__- iF '", A"'''' ,017 1lt~r.>A ....."',0'14 ~~A;, "Q~
IfU4,TJl
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Stormwater Rates 2007
March 13, 2007
Page 3/3
Stormwater Utility Budgets, Current, 2007 Proposed Revision, and 2008.
Stormwater Utility Budgets Table
Description Current 2007 Proposed 2008
Personnel $0 $100,000 $200,000
Services $18,756 $30,000 $50,000
Intergovernmental $98,900 $98,900 $50,000
Construction $280,000 $280,000 $400,000
Totals $397,656 $508,900 $700,000
The increases shown for 2007 reflect the Council authorized engineering position to assist in the
implementation of the NPDES Phase II Stonnwater requirements. In 2008 the increases reflect
anticipated additional personnel efforts required in planning and street maintenance. In addition we
will need to show added efforts in construction towards water quality at stream and marine outfalls.
N :\UAC\UAC2007\UAC040907\Stormwater Rates 2007 -I.doc
FORTANGELES
WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
Date:
March 13, 2007
To:
Utility Advisory Committee
From:
Gary W. Kenworthy P.E., Deputy Director of Public Works/City Engineer
Subject:
Stormwater Utility Rates
Summary: This is a continuation of discussions started in May 2006 regarding the need for added
funding for the Stormwater Utility. Further discussions were delayed in view of the pending DOE
decision on the inclusion of Port Angeles in the Phase II Municipal Stormwater pennit. Now that the
City has been included in Phase II an additional engineering position has been approved by Council
to support the City's implementation efforts.
Recommendation: Review the funding needs, capital program, and rate options and provide
direction to staff for future action.
Background/Analysis: The Stormwater Utility and associated rates were established in November
2003. The initial direction from Council was to focus on capital and small works projects and
provide training of field crews in proper maintenance procedures to meet regulatory requirements.
The basic rates established to fund the utility were $3.00 per month for single family and duplex
properties, and $3.00 per month per 4000 sq. ft of impervious area ($30.00 max.) for non-residential
properties. Two major projects have been completed since establishment of the utility, the Crown
Park Drainage Improvements Project and the Lincoln Avenue Stonnwater Separation Project. In
addition, Stormwater utility funds have been used to assist funding of street and sidewalk projects
with stormwater facilities. Street crews have attended classes on proper maintenance to meet
requirements of the Environmental Species Act (ESA) and Department of Ecology (DOE) best
management practices.
Since the establishment of the Stormwater Utility new unfunded mandate requirements have been
imposed on the City by DOE. In addition, rising material and construction costs have effectively
reduced the construction program. To meet these challenges, additional staff and funding are needed.
Last May and August, presentations were made to the UAC regarding the need to adjust the
Stormwater Utility Rates. In view of the uncertainty as to whether the City would be designated by
DOE as requiring a Phase II Municipal Stormwater permit, it was recommended in August to delay
action and revisit the issue in March 2007. Subsequently, the City has been designated by DOE as a
municipality requiring a Phase II Municipal Stormwater permit. The City has joined other designated
Cities in appealing some of the permit conditions. The City is also submitting a petition to DOE to
include the surrounding UGA and other Clallam County area to be covered by the permit. The City
is not challenging being included under Phase II and has submitted the Notice ofIntent (NOI), as
required by DOE, to be covered by the permit. Council recently approved the hiring of an additional
Stonnwater Rates 2007
March 13,2007
Page 2/3
full time engineering position in Public Works to assist in implementation of the Phase II
requirements. The estimated annual cost for this position is $100,000.
The original projection ofthe rates in 2003 was estimated to produce a net annual revenue for
projects in the amount of $225,000 per year. The Engineering News Record (ENR) Construction
Cost Index for Seattle in 2003 was 7713. The current ENR index is 8621. This construction cost
change since 2003 effectively requires $26,500 more now ($251,500 annually) to continue to fund
the Stormwater capital project program at the same levels as 2003.
Each $1 of base rate adjustment produces approximately $108,000 in net revenue. The estimated
Stormwater Utility base rate adjustment required to fund the new engineering position ($100,000)
and maintain a level construction program ($26,500) in the amount of $126,500 annually is $1.20.
This would result in a base rate of $4.20 under the current rate structure. This rate will not cover the
added efforts that will be required by Community and Economic Development for public
involvement, education, training, and permitting, nor will it cover any added work required by the
Utilities, Parks, and Street crews. Any added efforts which may be required of engineering beyond
the one authorize position are also not included.
Beyond the above staffing and adjustments for inflation discussion, the CFP for 2007 thru 2012
includes non-programmatic capital projects totaling $5,420,000 or $900,000 per year. To raise an
additional $650,000 per year beyond the $250,000 proposed above would require adding $6.00 to
the base rate for a total of $1 0.20 per month. This is not acceptable or affordable at this time for the
ratepayers. Additional funding for general area stormwater improvements will need to be provided
by developers, by formation of Local Improvement Districts, or by loans and grants when available.
If Stormwater Utility rates are adjusted, a review of the commercial (35%) and residential (65%)
contributions to the overall revenues may be needed. Based on impervious areas for commercial
(52%) and residential (48%) customers, an adjustment may be needed to make the rates more
equitable.
Currently, monthly contributions from contiguous commercial properties are capped at 10 equivalent
residential units (ERU) or $30.00. Adjusting or removing the cap limits and/or modifying the ERU
impervious area from 4000 s.{ are alternate methods to bring the commercial and residential rates to
equity. Removing the cap would provide an estimated additional 2600 ERUs or $90,000 in annual
revenues at the current $3.00 ERU rate. Reducing the per ERU area from 4,000 s.f. to 3,500 s.f.
would not increase the residential revenues but would raise the commercial revenues by $142,200
with cap or $290,000 without cap at the current $3.00 ERU rate. These options are shown in the
following table:
o tion Descri tion Residential Commercial Total
1 No Change (Current) $232,500, 65% $124,500,35% $357,000, 100%
2 Remove ERU cap $232,500, 52% $214,500, 48% $447,000, 100%
3 Reduce ERU to 3500 S.F. with $232,500,47% $266,700,53% $499,200, 100%
ERU cap
4 Reduce ERU to 3500 S.F. $232,500, 36% $414,500,64% $647,000, 100%
without ERU cap
Measured Impervious areas 48% 52% 100%
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Stormwater Rates 2007
March 13,2007
Page 3/3
These proposals are presented here to enable discussion with the UAC on Stormwater Utility Rate
adjustments needed to meet the CFP program as well as pending NPDES Phase II unfunded
requirements.
For comparison the following table has been prepared showing the stormwater utility rates charged
by similar sized cities and how they have changed (Highlighted) since 2004 to meet the ever
increasing requirements:
Monthly System Monthly System
City Residential Development Residential Development
Rate Char e Rate Char e
2004 2006
Port Angeles $3.00 None $3.00 None
Anacortes $3.00 $1,126.00 $3.00 $1,126.00
Blaine $4.00 $200.00 $4.00 $200.00
The rates and system development charges shown in the table above are based on A WC 2004 and
2006 Surveys. The statewide average for all reporting cities is $9.00 per month.
The following is a summary of the non-programmatic Stormwater Utility capital projects in the
approved 2006 CFP (dollars in thousands):
Priority Project 2007 2008 2009 2010 2011 2012 Total
1 10th & N $50 $250 $300
2 Stream Outfalls $50 $50 $50 $50 $50 $50 $300
3 Campbell/Porter $50 $200 $250 $500
4 Lincoln Culvert $100 $100
5 Canyon Edge/ Ahlve $50 $200 $250 $500
6 Lincoln Park/Big Bo $30 $270 $300
7 Bluff Outfalls $70 $120 $120 $120 $120 $120 $670
8 C St. Extension $50 $200 $250 $500
9 Rose/Thistle $50 $200 $250 $500
10 Laurel/1 0 1 $50 $200 $250 $500
11 Upper Golf Course $50 $200 $250 $500
12 Milwaukee $50 $150 $500 $700
13 First Street $50 $50
Totals $300 $920 $990 $570 $1,170 $1,470 $5,420
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~ORTANGELES
WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
DATE:
May 8, 2007
To:
UTILITY ADVISORY COMMITTEE
FROM:
Tom McCabe, Superintendent, Solid Waste Division
SUBJECT:
Benefit Dump Day Report
Summary: The City of Port Angeles sponsors an annual Benefit Dump Day for all Clallam
County residents. This year's event was April 15, from 9:00 am to 3:00 pm with the same
restrictions on dumping as in previous years. Participants donated $4,304 to the Port Angeles
Food Bank, 713 vehicles participated, and 223 tons were received at the event. Of the total
tonnage, 36% was diverted to recycling.
Recommendation: For information only
Background/Analysis: The City of Port Angeles sponsors an annual Benefit Dump Day for all
Clallam County residents. This was the first year for this event at the new transfer station. Lines
developed before 9 am at the gate, by noon the wait was 20 minutes, and by 1 pm there was no
wait. The event closed at 3 pm. Dumping was restricted to one load per household with vehicle
sizes up to a 3/4 ton pick-up truck or a trailer measuring 5 ft. x 8 ft. There is also a maximum limit
of four tires and four appliances per customer. Commercial haulers are not allowed. Large
appliances, metals, and tires are collected for recycling.
A total of 40 staff and volunteers assisted with this 6-hour event. City staff checked vehicle loads,
managed the metal pile, and weighed vehicles at the scales. Police volunteers helped with vehicle
checking and traffic control. Two Food Bank staff collected donations. A total of20 Waste
Connection staff directed traffic and helped unload vehicles at the Transfer Station.
The City of Sequim held a collection event on April 19th , 20t\ and 21 st, from 8 :00- 3 pm at the
Public Works Utility Yard. Waste was accepted from City residents only. The total brought to the
Transfer Station was 71.86 tons. The City ofSequim is paying $40/ton for disposal per an
agreement with the City of Port Angeles.
N:\UAC\FinaJ\Benefit Dump Day.doc
Benefit Dump Day Report
May 8, 2007
Page 2
Summary Statistics for Past Events
Year Vehicle Solid Cash Food (Ibs)
Trips Waste Contribution Contribution
Tons
2002 1,444 567 $2,800 5,500
2003 1,400 581 $3,259 5,840
2004 706 251 $1,960 2,440
2005 841 300 $1,998 Not available
2006 677 234 $3,664 Not collected
2007 713 223 $4,304 Not collected
Demographic of Users
Location 2006 Vehicles 2007 Vehicles 2006 Tons 2007 Tons
City of P .A. 267 286 81.43 83.98
SeQuim 73 20 27.05 6.49
Forks 4 1 1.81 .74
East County 192 248 66.14 82.76
West County 141 158 57.47 48.92
Totals 677 713 233.9 222.89
2007 Transfer Station Total: 141.475 tons
Event Costs 2007
Expenditure Cost
Employees (City) $2,000
Advertising -Peninsula Daily News $400
Sani-Can Rental (2) $220
Freon Removal 84 units @ $15/unit $1,260
Tire Recycling (415 tires) 5.19 tons @ $90/ton $467.10
Hauling and Disposal Fee 141.48 tons @$47.52/ton $6,723.13
Total $ 11,070.23
~ORTANGELES
WAS H -I N G TON, U. S. A.
Utility Advisory Committee Memo
Date:
May 8, 2007
To:
Utility Advisory Committee
From:
Larry Dunbar, Power Resources Manager
Subject:
GridWise™ Project Electric Meter Transfer Agreement
Summary: The City participated in the U.S. Department of Energy's Olympic Peninsula
GridWise™ Appliances Demonstration Project. As part ofthe project advanced metering
equipment was provided. Now that the project is complete, it is proposed that ownership of the
advanced meters is transferred from the federal government to the City.
Recommendation: Forward a favorable recommendation to City Council to accept the
agreement to transfer ownership of advanced meters to the City.
Background/Analysis: The City and forty-seven of its electric customers participated in the U.S.
Department of Energy's Olympic Peninsula GridWise™ Appliances Demonstration Project. The
City's role in the demonstration project was limited to that of a host utility, we provided the
Department of Energy's research contractor, the Pacific Northwest National Laboratory, with a
residential customer base to conduct their experiment on and provided our customers the
opportunity to participate in an experiment of national significance. The final project report is
anticipated within the next few months.
Now that the project is complete, the U.S. Department of Energy is offering to transfer ownership
ofthe advanced metering equipment to the City. A1tho~gh the City is not likely to use the
advanced features of the metering equipment at this time, the meters can continue to be used to
record energy consumption for utility billing purposes.
N:\UAC\Original\GridWise Meter Transfer Agreement.doc
Date:
To:
From:
Subject:
~ORTANGELES
WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
May 8, 2007
Utility Advisory Committee
Scott McLain, Deputy Director of Power Systems
Electrical Interconnection and Net Metering Standards
Summary: In accordance with the Public Utility Regulatory Policies Act as amended by the
Energy Policy Act of2005, the City is required to conduct an investigation on interconnection and
net metering standards, and detemline if it is appropriate for the electric utility. Staff is in the
process of completing an evaluation and will present its findings at the June 2007 Utility Advisory
Committee meeting.
Recommendation: Information Only.
Background/Analysis: The Public Utility Regulatory Policies Act of 1978 was amended by the
Energy Policy Act of 2005, which requires the City to complete an investigation and issue a
decision by August 8, 2007 on whether or not it is appropriate to adopt interconnection and net
metering standards. Interconnection standards apply generation facilities that are connected to the
City's distribution facilities. Net metering standards apply to offsetting a customer's total energy
consumption by the energy generated on-site for utility billing purposes. As part of the
investigation, PURP A requires the consideration and determination to be made after public notice
and a public hearing. A Council determination must be in writing, available to the public, and be
based upon evaluation findings and evidence presented at the hearings. The proposed schedule is
as follows:
June 5, 2007
June 12,2007
June 19,2007
City Council public hearing to receive evidence; continue public hearing to
June 19,2007.
Staff seeks recommendations from the Utility Advisory Committee to City
Council.
City Council continues and closes public hearing. Consider, then determine
if an interconnection and net metering standard is appropriate for the electric
utility.
N: \U A C\Final\Interconnection Standards. doc
Date:
To:
From:
Subject:
~ORTAN ELES
WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
May 8, 2007
Utility Advisory Committee
Larry Dunbar, Power Resources Manager
Time-Based Metering and Communications
Summary: In accordance with the Public Utility Regulatory Policies Act as amended by the
Energy Policy Act of2005, the City is required to conduct an investigation on time-based metering
and communications, and determine if it is appropriate for the electric utility. Staff is in the
process of completing an evaluation and will present its findings at the June 2007 Utility Advisory
Committee meeting.
Recommendation: Information Only.
Background/Analysis: The Public Utility Regulatory Policies Act of 1978 was amended by the
Energy Policy Act of 2005 to require the City to complete an investigation and issue a decision by
A~lgust 8, 2007 on whether or not it is appropriate to provide and install time-based meters and
communications devices for each electric customer. As part of the investigation, PURP A requires
the consideration and determination to be made after public notice and a public hearing. A
Council determination must be in writing, available to the public, and be based upon evaluation
findings and evidence presented at the hearings.
The proposed schedule is as follows:
June 5, 2007
June 12,2007
June 19,2007
City Council public hearing to receive evidence; continue public hearing to
June 19,2007.
Staff seeks recommendations from the Utility Advisory Committee to City
Council.
City Council continues and closes public hearing. Consider, then determine
if time-based metering and communications is appropriate and mandatory
for all customers the electric utility.
N:\UAC\Final\Time-Based Metering and Communications.doc
~ORTANGELES
WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
Date:
May 8, 2007
To:
Utility Advisory Committee
From:
Scott McLain, Deputy Director for Power Systems
Subject:
NERC/WECC Entity Registration
Summary: New regulations contained in the Energy Policy Act of2005 will require the City of
Port Angeles to register as a responsible entity as a "distribution provider" (DP), and a "load
serving entity" (LSE), and comply with requirements set forth by the North American Electric
Reliability Corporation (NERC).
Recommendation: Information Only.
Background/Analysis: On August 14,2003, a major blackout on the east coast precipitated
language in the Energy Policy Act of 2005 that mandated increased reliability and accountability
of the bulk power system, to be overseen by the Federal Energy Regulatory Commission (FERC).
NERC was certified as the "Electric Reliability Organization" (ERO) by FERC in July of2006.
NERC is in the process of developing reliability standards for various operators and users of the
bulk power system.
After the blackout, NERC began a standards process that converted existing policies and planning
standarcis into an organized set of enforceable standards in 14 functional areas. Providers of
various functions are called "responsible entities" and are required to register with NERC. NERC
also created a functional model with three main sections including standards and compliance,
reliability service functions, and planning and operating functions. Port Angeles has been
identified in the last category as both a "load serving entity" (LSE), and a "distribution provider"
(DP).
NERC has passed responsibility for entity registration and compliance to the regional reliability
coordinators, which for western North America is the "Western Electricity Coordinating Council"
(WECC). WECC will be responsible for the compliance program and assessing any penalties
associated with non-compliance.
N:\UAC\Final\WECC summary.doc
NERC/WECC Entity Registration
May 8, 2007
Page 2
Because many of the functions required under the LSE and DP designation are currently being
provided by BP A, we will be working with BP A to develop a delegation agreement, where
Bonneville will continue to perform the requirements and be responsible for any non-compliance
Issues.
June 4 is the deadline for compliance or the submittal of a mitigation plan. No utilities, including
BP A, will be fully compliant by that date. We will be working with Bonneville, and with the
assistance of WP AG, PPC, and NWPP A to formulate our mitigation plan and to become compliant
with the requirements we are ultimately responsible for.
Public Power Council
825 NE Multnomah, Suite 1225
Portland, OR 97232
503.595.9770
Fax .503;239.5959
Public Power Council Talking Points
Ninth Circuit Court of Appeals Ruling on IOU Settlement Agreements
May 2007
· In two long-awaited and major decisions the Ninth Circuit Court of Appeals ruled
May 3rd on key disputes with the Bonneville Power Administration (BP A) related
to the Residential Exchange Settlement Agreements the agency entered into with
the Investor-Owned Utilities (lOUs) in 2000.
· The Court ruled that BP A's authority to "settle" contracts and disagreements is
limited by its other legal obligations, and that the 2000 Residential Exchange
Settlements violated provisions of the law establishing the method for calculating
IOU benefits and the "rate ceiling" for service to public power systems. These
rulings can be found in Golden Northwest Aluminum v. BPA at 4909-10 and in
Portland General Electric v. BP A at 4872.
· We recognize the intent of Congress in the Northwest Power Act that residential
customers in the region be eligible for federal benefits. However, the Act created
a balance that needs to be respected in any proposed settlements.
· Congress stipulated that the costs ofthe residential exchange program should not
create rate impacts to public power systems that would not have occurred in the
absence ofthe Northwest Power Act. In strong terms, in both of the cases decided
May 3rd, the Court cited clear violations of section S(c) and sections 7(b )(2) and
(3) of the Northwest Power Act.
· The Court noted that although Congress may have provided BP A the ability to
sign contracts and to settle claims, that authority is specifically limited. The Court
found that "BP A proceeded from a flawed legal premise about its settlement
authority," and that BP A is "insisting on greater flexibility in designing a
[residential exchange] program than Congress was willing to give it."
. PPC is pleased that the Court affirmed our interpretation of the statute. The
Settlement and subsequent rate case distorted congressional intent, and created
instances where many public power systems were left paying money to
neighboring IOUs that have lower rates.
. The steps needed to implement these decisions are not yet clear. But, regardless
of the implications here, parties in the region will need to continue to work
together in the Regional Dialogue to define the basic roles and responsibilities for
BP A and its customers with respect to future power supply and transmission.
. PPC will constructively engage with BP A and the other parties in the ensuing
process to ensure that electric consumers of Northwest public power systems are
treated fairly and that the requirements of the Northwest Power Act are respected.