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HomeMy WebLinkAboutAgenda Packet 06/12/2007 Utility Advisory Committee Public Works Conference Room Port Angeles, W A 98362 June 12,2007 3:00 P.M. AGENDA I. Call To Order II. Roll Call ill. Approval Of Minutes For May 8, 2007 Approval Of Minutes For May 15, 2007 IV. Late Items V. Discussion Items A. Update On Conservation Programs B. Update On WECC VI. Next Meeting Date: July 10, 2007 VII. Adjournment N:\UAC\Final\061207. wpd UTILITY ADVISORY COMMITTEE C::,~ { ~ GUEST S GN UP SHEET PRINT NAME ORGANIZATION - . . ~ONJ lA€>lYrnEYL 3 C.r ~ r/I; nv''(J Tc ~s C6>J j , <!..(..\.MA~ Qlt.\...s \."::> <:.oAL.\'t1.ofJ . 1b~ N: \PWKS \ LIGHT \ CONS \ CATE \ SIGNUP.wpd Utility Advisory Committee - Special Meeting Public Works Conference Room Port Angeles, W A 98362 May 8, 2007 3:00 P.M. I>~~~ ,. AGENDA L Call To Order Councilman Larry Williams sitting in for Mayor Rogers became Acting Chairman due to the absence of both Mayor Rogers and Chairman Reed. Acting Chairman Williams called the meeting to order at 3:05 p.m. IL Roll Call Members Present: Acting Chairman Williams, Orville Campbell, Grant Munro (3: 1 0), Betsy Wharton, Members Absent: Dean Reed, Karen Rogers Staff Present: Mark Madsen, Bill Bloor, Glenn Cutler, Mike Puntenney, Scott McLain, Gary Kenworthy, Steve Spem, Tom McCabe, Larry Dunbar, Rick Hostetler, Jim Klarr (4:08), Cate Rinehart Others Present: Brian Gawley - Daily News IlL Approval Of Minutes: Acting Chairman Williams asked ifthere were any corrections to the minutes of April 9, 2007. Councilmember Wharton moved to approve the minutes. Orville Campbell seconded the motion, which carried unanimously. IV. Late Items: Public Power Council Ninth Circuit Court Of Appeals Ruling On IOU Settlement Agreements V. Discussion Items: A. Storm water Utility Rates This is a continuation of discussions started in May 2006 regarding the need for added funding for the Stormwater Utility. Gary Kenworthy, City Engineer, identified November 2007 as the deadline for the 2008 tax mailing, proposed a two year budget revision, and provided a calculation model for various scenarios. There was a lengthy discussion. Staff was given general UTILITY ADVISORY COMMITTEE May 8, 2007 guidance to continue exploring base rates of $6 to $10, the equivalent residential unit area, and the possibility of a rebate program for those who make environmental improvements. B. Benefit Dump Day Tom McCabe, Solid Waste Superintendent, reviewed the information contained in the packet, responded to questions, and provided clarification. A total of713 vehicles participated with 223 tons received. There was a brief discussion. No action taken. Information only. C. GridWise Project Electric Meter Transfer Agreement Larry Dunbar, Power Resources Manager, advised that the City had participated in the US Department of Energy's Olympic Peninsula GridWise Appliances Demonstration Project. As part of the project advanced metering equipment was provided. Now that the project is complete, it is proposed that ownership of the advanced meters be transferred from the federal government to the City. There was a brief discussion. Councilman Munro moved to recommend City Council accept the agreement to transfer ownership of advanced meters to the City. Councilmember Wharton seconded the motion, which carried unanimously. D. Electrical Interconnection And Net Metering Standards Scott McLain, Deputy Director of Power Systems, explained that 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 determine ifit is appropriate for the electric utility. Staffwill present its findings at the June 2007 meeting. There was a brief discussion. No action taken. Information only. E. Time-Based Metering And Communications Larry Dunbar, Power Resources Manager, reminded the committee that the City was required to complete an investigation and issue a decision by August 8, 2007 on whether or not it is appropriate to provide and install time-based meters and communications devices for each electric customer. A hearing schedule was discussed. No action taken. Information only. UTILITY ADVISORY COMMITTEE May 8, 2007 F. NERC/WECC Entity Registration Scott McLain, Deputy Director for Power Systems, announced that new regulations contained in the Energy Policy Act of2005 mandate increased reliability and accountability of the bulk power system. A brief explanation of standards was given. There was a brief discussion. No action taken. Information only. G. Public Power Council Ninth Circuit Court Of Appeals Ruling On IOU Settlement Agreements Scott McLain, Deputy Director for Power Systems, noted he had just received paperwork that indicates the Bonneville Power Administration had violated a law when it made settlement agreements with IOU's. More will be given on this subject when it becomes available. There was a brief discussion. No action taken. Information only. H. Information Glenn Cutler, Director of Public Works and Utilities provided the following items: The Landfill Closure bid opening had been held with the engineer's estimate of$2,458,101.00 and the low bid by Del Hur Industries of $1 ,867,584.31. The Lower Elwhat Tribe has accepted the sewer agreement. A Street Utility transportation item will be on the June agenda involving a $20 vehicle registration fee. This is Gary Kenworthy's last UAC meeting with a celebration at the end of the month. Thank you to Gary for 19 years of vital contributions to the City. VI. Executive Session - To be continued to a date and time to be announced. Orville Campbell moved to continue the session. Councilman Munro seconded the motion, which carried unanimously. VIL Next Meeting Date: May 8, 2007 VIIL Adjournment: The meeting was adjourned at 5:45 p.m. UTILITY ADVISORY COMMITTEE May 8, 2007 Acting Chairman Williams Cate Rinehart, Admin Spec II N :\PWKS\LIGH1\CONS\CA TE\may8meet. wpd Utility Advisory Committee - Continued From May 8, 2007 Public Works Conference Room Port Angeles, W A 98362 May 15,2007 4:30 P.M. AGENDA /)J:J~~,. L Call To Order Vice Chairman Rogers called the meeting to order at 4:30 p.m. IL Roll Call Members Present: Vice Chairman Rogers, Larry Williams, Orville Campbell, Grant Munro Members Absent: Betsy Wharton, Dean Reed Staff Present: Mark Madsen, Bill Bloor, Glenn Cutler, Mike Puntenney, Scott McLain, Terry Dahlquist, Jim Klarr, Jim Harper IlL Executive Session Adjourn to executive session - 4:35 p.m. Executive session under RCW 42.30.11 O(i) to consider the terms on which real estate will be offered for sale. Executive session concluded at 5: 19 p.m. Meeting resumed in regular session. Orville Campbell moved to recommend City Council (a) Accept the proposal from Family Medicine of Port Angeles in response to RFP #07-09 subject to: (1) successful negotiation of a purchase and sale agreement and (2) securing a facility into which Light Operations Division can relocate; (b) direct the City Manager to negotiate terms of a purchase and sale agreement with FMPA; (c) direct staff to locate and negotiate contract terms for a suitable replacement facilitY for Light Operations. Councilman Munro seconded the motion, which carried unanimously. IV. Next Meeting Date: June 12, 2007 v. Adjournment: The meeting was adjourned at 5 :22 p.m. Vice Chariman Rogers Scott McLain, Deputy Director Date: To: From: Subject: ORTAN ELES WAS H I N G TON, U. s. A. Utility Advisory Committee Memo June 12, 2007 Utility Advisory Committee Larry Dunbar, Power Resources Manager Conservation Rate Credit Program Options Summary: Customer participation in the Bonneville Power Administration's new Conservation Rate Credit program is substantially below targeted spending levels. There are several options that can be considered to utilize the available funding. Recommendation: Provide guidance on conservation rate credit program options. Background/Analysis: On October 1, 2006, the Bonneville Power Administration's (BPA) new Conservation Rate Credit (CRC) program began, which requires higher energy efficiency (cdst) and provides lower incentives (rebates). The program will be available through September30, 2009 and will provide a total of$I,050,000 in conservation funding. As anticipated, the cost of conservation projects has substantially increased, incentives have substantially decreased, and customer participation has dramatically fallen. During the first six months of the CRC, customer participation and spending has only resulted in use of 10% of the available CRC. In the event the City does not utilize the CRC by the end of the program it must return it to BP A, which will not provide any local economic benefits. Although City performance is similar to most utilities, BP A is not planning to make any significant revisions to program requirements or incentives at this time. Staff prepared a list of twelve options that can increase CRC spending (below). It is not anticipated that any single option will result in utilization of the CRe. Staff will briefly describe each option and request guidance from the Utility Advisory Committee at the meeting. 1. Prepare and implement a marketing strategy with an emphasis on commercial customers. 2. Support BP A efforts to provide technical service providers (TSP) to prepare conservation project proposals for our industrial, primary and largest commercial customers. 3. Offer our industrial, primary and largest commercial customers loans to fully fund BP A approved conservation projects. N:\UAC\Final\CRC Program Options.doc Conservation Rate Credit Program Options June 12,2007 Page 2 4. Participate in the BP A SmartGrocer program through Portland Energy Conservation, Inc. 5. Pursue development of a community-based renewables generation project. 6. Pursue incorporation of renew abIes energy system education and demonstration projects into the Future Builders curriculum for the 2007-2008 school year. 7. Implement lighting give-away events through local retailers. 8. Implement a low-income weatherization program for customers that receive a utility discount. 9. Identify and implement cost-effective energy conservation projects at City facilities. 10. Pursue multiple year purchases ofBPA's renewable products such as Environmentally Preferred Power (EPP) or Alternative Renewable Energy (ARE). 11. Provide donations of up to 20% of the City's total CRC credit ($200,000) to qualified non- profit organizations promoting renewable resource development, such as the Bonneville Environmental Foundation (BEF): . . " .J; 12. Provide'donations to qualified orgartizations implementing cost-effective conservation such' as Northwest Energy Efficiency Alliailce (NEEA). ' .' t-,'.. .'. Community Renewables Generation Project - Expressions of Interest The City of Port Angeles may submit a grant request to the Bonneville Power Administration for up to 50% of the cost of constructing a community solar powered electrical generation facility. The estimated cost ofthe facility is $400,000, of which 50% ($10,000 per year for 20 years) would required by the grant to be contributed by Port Angeles electric customers. A financial contribution may entitle you to a proportional share of the energy output of the facility. Port Angeles electric customers that are seriously interested in financially contributing towards this project can express interest by providing their name, address and the amount they may be willing to contribute below. Name (First, Last) Address Up front Contribution MontWy Contribution o $2500 $500 0 $750 o $5 0 $10 0 $15 o $1,000 0 $ o $20 0 $ o $2500 $500 0 $750 o $5 0 $10 0 $15 o $1,000 0 $ o $20 0 $ o $2500 $500 0 $750 o $5 0 $10 0 $15 o $1,000 0 $ o $20 0 $ o $2500 $500 0 $750 o $5 0 $10 0 $15 o $1,000 0 $ o $20 0 $ o $2500 $500 0 $750 o $5 0 $10 0 $15 o $1,000 0 $ o $20 0 $ .<<.~ o $2500 $5000 $750 o $5 0 $10 0 $15 o $1,000 0 $ o $20 0 $ ~~~ o $2500 $500 0 $750 o $5 0 $10 0 $15 - o $1,000 0 $ o $20 0 $ ~v o $2500 $500 0 $750 o $5 0 $10 0 $15 0-. o $1,000 0 $ o $20 0 $ ~ o $2500 $5000 $750 o $5 0 $10 0 $15 o $1,000 0 $ o $20 0 $ o $2500 $500 0 $750 o $5 0 $10 0 $15 o $1,000 0 $ o $20 0 $ o $2500 $500 0 $750 o $5 0 $10 0 $15 o $1,000 0 $ o $20 0 $ o $2500 $500 0 $750 o $5 0 $10 0 $15 o $1,000 0 $ o $20 0 $ o $2500 $500 0 $750 o $5 0 $10 0 $15 o $1,000 0 $ o $20 0 $ o $2500 $500 0 $750 o $5 0 $10 0 $15 o $1,000 0 $ o $20 0 $ This is only an expression of interest and the City is not accepting payments at this time. The City may contact customers on this list to confirm interest. The City of Port Angeles is under no obligation to submit a grant request. The terms and conditions of a formal City offering (if any) will vary. The City may receive expressions of interest related to this project by July 2,2007. For more information contact Bob Kajfasz, Commercial Energy Analyst at 417-4718 or Rkajfasz@citvofpa.us or visit the City's web site at www.cityofpa.us City of Port Angeles Public Works & Utilities Department, P.O. Box 1150, Port Angeles, W A 98362 FORTANGELES WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: June 12,2007 To: Utility Advisory Committee From: Scott McLain, Deputy Director for Power Systems Subject: Update on NERC/WECC Entity Registration Summary: The City has been required to register as a responsible entity by NERCIWECC as both a Load Serving Entity (LSE), and a Distribution Provider (DP). This memo will provide an update on the progress of registration and compliance. Recommendation: Information Only. Background/Analysis: Since the last informational UAC memo in May, (attached for reference), staff has been performing a compliance self-evaluation, and developing mitigation: plans for those standards for which the City is not currently compliant. The original date that the standards would become mandatory was June 4, 2007, but on May 31, 2007, FERC announced that the date would be moved to June 18,2007. The City was required to register as a LSE and DP. FERC has approved 83 standards at the current time. Of these 83 standards, 26 apply to LSE's and DP's. Of the 26 standards that apply to the City, there are 43 requirements contained within these standards. Staffhas done a self- evaluation ofthese 43 requirements to evaluate whether we are in compliance, or if we are not in compliance, what needs to be done to come into compliance. Many of the standards for which we are not currently in compliance rely on the Bonneville Power Administration for performance of the various requirements. Mitigation plans for these standards were coordinated with BP A for compliance. Staffwill continue to develop the procedures, processes, and information required to become fully compliant within the schedules of the mitigation plans. Staff is also continuing its protest to the requirements for registration and has formally filed our protest with NERC. They have requested additional information which the City has provided. N:\UAC\Final\WECC update. doc n..:........ .,0.'" 'R' olT'..... ^.r.... ....1 N..' ' I=- }, ".f"'r ELES 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 of2005 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" (ERa) 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 standards 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\UAC2007\UAC050807\ 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 ofWPAG, PPC, and NWPPA to formulate our mitigation plan and to become compliant with the requirements we are ultimately responsible for.