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
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UTILITY ADVISORY COMMITTEE
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Utility Advisory Committee - Special Meeting
Public Works Conference Room
Port Angeles, W A 98362
May 8, 2007
3:00 P.M.
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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
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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
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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.
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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): . . "
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12.
Provide'donations to qualified orgartizations implementing cost-effective conservation such'
as Northwest Energy Efficiency Alliailce (NEEA). ' .'
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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.
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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.
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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.