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Home My WebLink AboutAgenda Packet 10/13/2015 Utility Advisory Committee Jack Pittis Conference Room Port Angeles, WA 98362 October 13, 2015 AGENDA L Call To Order II. Roll Call III. Approval Of Minutes For June 9, 2015 IV. Late Items V. Discussion Items: A. Industrial Transmission Electric Rate Ordinance Amendment (PAMC13.12.071) VI. Information Only Items: A. Conservation and Renewable Energy Program Fund (PAMC 3.25) VII. Next Meeting Date: November 10, 2015 VIII. Adjournment N:AUAC\MEETINGS\UAC2015\UAC101315\101315 Agenda.docx Utility Advisory Committee Jack Pittis Conference Rooms Port Angeles,WA 98362 June 09,2015 3:00 p.m. L Call To Order Chairman Lynn Bedford called the meeting to order at 3:00 p.m. It. Roll Call UAC Assigned Councilmembers Present: Dan Gase Other Councilmembers Absent: Dan DiGuilio, Cherie Kidd,Patrick Downie,Lee Whetham, Sissi Bruch,Brad Collins UAC Members Present: Lynn Bedford,Rob Feller,Betsy Wharton UAC Members Absent: John Leclerc Staff Present: Craig Fulton,Phil Lusk, Sondya Wray, Gregg King,Heidi Greenwood Others Present: 2 Citizens Julia Shaughnessy—Bonneville Power Administration Marcus Perry—Bonneville Power Administration Tom Martin—Clallam County PUD Paul Gottlieb—Peninsula Daily News III. Approval Of Minutes Chairman Lynn Bedford asked if there were any corrections to the minutes of April 14,2015. Dan Gase moved to approve the minutes. Betsy Wharton seconded the motion,which carried unanimously. IV. Late Items: None V. Discussion Items: None VI. Information Only Item A. Residential Exchange Program Update(verbal report only) Information only. No action taken. B. Morse Creek Emergency Water Rights (verbal report only) Information only. No action taken. C. Morse Creek Hydroelectric Project Update(verbal report only) A recommendation to bring this Item back to City Council was approved. VII. Next Meeting Dates: Joint Meeting with City Council,July 07,2015 at 4:30 p.m. VIII. Adjournment: 4:21 p.m. Dan DiGuilio, Mayor Sondya Wray,Administrative Specialist II To% • 7FORT , ELES WASH INGTON, U. S. A. Utility Advisory Committee Memo DATE: October 15, 2015 To: Utility Advisory Committee FROM: Craig Fulton, PE., Director of Public Works &Utilities SUBJECT: Industrial Transmission Electric Rate Ordinance Amendment PANIC 13.12.071 Schedule IT-11—Industrial Transmission Summary: The Bonneville Power Administration Tiered Rate Methodology went into effect on October 1, 2011. The Bonneville Power Administration made changes to one of the City's allocations for the FY2016-2017 rate period, and a revision to the ordinance is necessary. Recommendation: Recommend that City Council proceed with a first reading and open the public hearing on the proposed Industrial Transmission utility rate ordinance amendment. Recommend that City Council waive the second reading and close the public hearing, and then adopt the ordinance. Background/Analysis: The Bonneville Power Administration Tiered Rate Methodology (TRM) went into effect on October 1, 2011. In late-September, the Bonneville Power Administration made changes to one of the City's allocations for the FY2016-2017 rate period, and a revision to the ordinance is necessary. Based upon an analysis using the BPA Rate Impact Model, this change would reduce the Industrial Transmission customer's power bill by $3.2 million during the current BP-16 rate period that runs from I October 2015 through 30 September 2017. These changes will have no adverse impacts to the City's Distribution customers (residential and commercial). The Utility Advisory Committee is requested to recommend that City Council proceed with a first reading and open the public hearing on the proposed Industrial Transmission utility rate ordinance amendment. The Utility Advisory Committee is also requested to recommend that City Council waive the second reading and close the public hearing, and then adopt the ordinance. Following Council's ratification, the ordinance shall take effect five (5) days after passage and publication of an approved summary thereof consisting of the title. Attachment:Draft Industrial Transmission Electric Rate Ordinance Amendment N:\UAC\Fina1\hidustria1 Transmission Ordinance Amendment.docx ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington amending electric rates by making changes to Chapter 13.12 of the Port Angeles Municipal Code. THE CITY COUNCIL OF THE CITY OF PORT ANGELES DO HEREBY ORDAIN AS FOLLOWS: Section 1. Ordinance 2054 as amended, and Chapter 13.12 of the Port Angeles Municipal Code relating to electric rates are hereby amended by amending Chapter 13.12.071 to read as follows: 13.12.071 - Schedule IT-11 Industrial transmission. 5. Load shaping charges and credits. The customer load shaping charge (Cu LSC) is the load shaping charges for a month to be paid by customer. The Cu LSC each month shall be calculated by the following formula: Cu LSC = (Cu AL — Cu SSL) X LSR Where: Cu LSC is the net of the load shaping charges and credits for a month apportioned to customer, with customer paying net load shaping charges to the City, and the City paying net load shaping credits to customer, less an amount calculated by the City using the load shaping adjustment true-up rate. Cu AL is customer's monthly HLH and LLH loads. Cu SSL is customer's shaped system load as set out below. LSR is the load shaping rate applicable to HLH and LLH periods. HLH SSL ............................ 141=14 SSI= k-W4} l-Wl} 1)e) 741 cnc 22 Oet6bef 20-_ � -TVz 22 03G 274 - 15,665,637 1 RT ., ti 1, ')ti ')'72 KAQ ')ti 21') '7n') z z-v r-r viz 2nd 26,120,220 20 30,525,934 n %i 7 c 2 � a�c�H}n T cccmb ,..... ZJT 7n� 7ti nQn 1 n� 7n� 26,307,469 �� , ')1 nc 1 '701) �1 nQn nnc o n 1 ti c n 12 T n„ r3 >� >,. , .., 1T 21,461,196 2W75 24,169,402 2 n 1 c n......... 23, 77ti 77Q 1 tic z' Iva t, 20 a - 71 7cc 2tic 2W75 21 n2Q 7cQ Apfi 20tG May 20�6 -1,629,442 21 tip°° c c on i airy z P ittly 201-6 2.7 °° ')c 2rr A,, „mot �n17 7G n � s pteffibef c �o„,io. 7 n 17 x9�ww- i9,8 om- ^ rr rah r rah WW4 WW4 Getebef 1 7 tine nQn n 7n1 ti n r.,� 01 cn t >, °T Oetebef 2016 pfil 1 n c7 ti17 12,214,819 5� T 4 Tz 701 crr,,.,o„,i.o.. 18,974,9 nn 1 c Q 2 n Q 7 7 T -°° pe 0 mbe 1 G 7n7 4'�G Tlo..o,,,1.0,- 1'7 71'7 4nti 2014 16,238,763 201 tir„„„ 2015 14,459,901 1 2 ti7n rnn r„r, �n17r„1., 1 c n1 nn2 a 15,270 2nn 25 � 1 n �n2 G71 1 7 ncn 71 n 4- 721 777 �� 2 13,68:7,5:7:7 12,429,569 1:7,565 14,169 Jtme 20�6 14,43 Att-��ttst 2016 14,4 604-3-7 ................................................................................................................................................................................. i2,37 12,715449 24�6 241-7 13.12.071 Schedule IT-11-Industrial Transmission FY2016 SSL Allocations SSL October 2015 13,160,101 October 2015 7�497 434 November 2015 �15517 976 November 2015 �9384.108 December 2015 14,975,218 December 2015 9�277 495 January 2016 12,965,362 January 2016 February 2016 11,891,421 February 2016 March 2016 13�727 485 March 2016 —AULI 2016 11413739 6970947 May 2016 18681263 10374760 June 2016 15,066,430 June 2016 8�527 869 July 2016 August 2016 14,989,654 AuFust 2016 September 11,703,943 September 2016 Based on REVISED Bonneville Power Administration's BP-16 Record of Decision . . . . 3 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. 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 (5) days after passage and publication of an approved summary thereof consisting of the title. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the day of October,2015. Dan Di Guilio, Mayor APPROVED AS TO FORM: William E. Bloor, City Attorney ATTEST: Jennifer Veneklasen, City Clerk 4 To% El N, • 7FORT , ELES WASH INGTON, U. S. A. Utility Advisory Committee Memo DATE: October 15, 2015 To: Utility Advisory Committee FROM: Craig Fulton, PE., Director of Public Works &Utilities SUBJECT: Conservation and Renewable Energy Program Fund PANIC 3.25.030 -Disbursements Summary: The City's energy conservation program has identified that some areas of PANIC 3.25 that require clarification. Recommendation: Information only, discussion on potential action to be taken if any. Background/Analysis: PANIC 3.25 created the Conservation and Renewable Energy Program Fund, which is used for funding the acquisition and installation of energy conservation measures, renewable energy systems, and distributed generation resources by City electric utility customers. PANIC 3.25 authorizes the City Manager, the Director of Public Works and Utilities, or their designee to approve disbursements and enter into contracts with City electric utility customers. Two questions regarding the intent of the ordinance were recently raised. PANIC 3.25.30 authorizes payments to electric utility customers, but it is silent on the matter of payments to contractors who provide energy conservation measures benefiting electric utility customers. For example, of 19 similar projects with a budget of$25,000 of more that have been conducted since 2010, 17 projects made direct payments to electric utility customers and two payments were made to contractors on behalf of electric utility customers. PANIC 3.25.30 is also silent on the scale of payment authorized. For example, PANIC 3.25 authorizes payments in excess of$25,000 to electric utility customers for a single conservation method. However, bulk energy conservation measures, where the cost to each individual electric utility customer is small but the unit volume could make the payment exceed $25,000, occur from time to time. Specifically, a recent bulk-mailed energy conservation project provided energy efficiency light bulbs to each City residential electric utility customer at a cost of$29.06 per unit. However, because almost 8,540 units were delivered, a $248,000 payment was issued to the vendor that was selected using a competitive process. Conversely, Staff could have ordered and delivered the 8,540 units individually rather than in bulk, and the transaction would have met all applicable standards for payment as they are now defined. While meeting the standards, such a transaction would have been a waste of City resources due to the nature of processing the 8,540 individual payment requests. N:\UAC\FinaI\PAMC 3.25 Clafification.docx Ordinance 3.25 Update October 13,2015 Page 2 Staff requests guidance from the Utility Advisory Committee to help resolve these areas requiring clarification regarding PANIC 3.25.030 - Disbursements. The current section is written, "In accordance with programs and policies approved by the City Council, disbursements shall be made out of the `Conservation and Renewable Energy Program Fund' upon the request of the City Manager or Director of Public Works and Utilities for payment, reimbursement or guarantee of costs or expenses for the acquisition of energy by the installation of conservation measures, renewable energy systems, and distributed generation resources within the service area of the City Electric Utility. The Director of Public Works and Utilities, or his designee, is authorized to enter into contracts and agreement with City Electric Utility customers to fund the acquisition of energy by installation of conservation measures, renewable energy systems, and distributed generation resources the Director of Public Works and Utilities determines to be cost-effective. Cost-effective shall have the meaning given such term in RCW 80.52.030(7)." A revision could be written, "In accordance with programs and policies approved by the City Council, disbursements shall be made out of the `Conservation and Renewable Energy Program Fund' upon the request of the City Manager or Director of Public Works and Utilities for payment, reimbursement or guarantee of costs or expenses for the acquisition of energy by the installation of conservation measures, renewable energy systems, and distributed generation resources within the service area of the City Electric Utility. The Director of Public Works and Utilities, or his designee, is authorized to enter into contracts and agreement with City Electric Utility customers "and contractors providing energy conservation measures benefiting electric utility customers" to fund the acquisition of energy by installation of conservation measures, renewable energy systems, and distributed generation resources the Director of Public Works and Utilities determines to be cost-effective. Cost-effective shall have the meaning given such term in RCW 80.52.030(7)." The Utility Advisory Committee is requested to provide any guidance in determining if an amendment to PANIC 3.25.30 be considered by the City Council. For example, should an addition of "and contractors providing energy conservation measures benefiting electric utility customers"be made to reduce any ambiguity regarding the intent of the enabling PANIC? N:AUAC\Fina1\PAMC 3.25 Clarification.docx Port Angeles, WA Code of Ordinances Page 1 of 1 CHAPTER 3.25 - CONSERVATION AND RENEWABLE ENERGY PROGRAM FUND 3.25.010 - Created. There is hereby created in the City Treasury a special revolving fund known and designated as the "Conservation and Renewable Energy Program Fund." (Ord. 3391 § 2, 2/12/2010; Ord. 3311, 12/14/2007) 3.25.020 - Receipts and expenditures. The Conservation and Renewable Energy Program Fund shall be used for the fiscal administration and accounting of monies received or appropriated by the City Council for funding the acquisition of energy by the installation of energy conservation measures, renewable energy systems, and distributed generation resources, which funding is in addition to the funding received by the City from the Bonneville Power Administration for such purposes.These acquisitions are made pursuant to RCW 35.92.050. Expenditures incurred by the City, in addition to the funding provided by the Bonneville Power Administration, for the acquisition of energy by the installation of energy conservation measures, renewable energy systems, and distributed generation resources shall be paid out of the Conservation and Renewable Energy Program Fund," in accordance with programs which may be authorized by City Council. (Ord. 3391 § 2, 2/12/2010; Ord. 3311, 12/14/2007) 3.25.030 - Disbursements. In accordance with programs and policies approved by the City Council, disbursements shall be made out of the "Conservation and Renewable Energy Program Fund" upon the request of the City Manager or Director of Public Works and Utilities for payment, reimbursement or guarantee of costs or expenses for the acquisition of energy by the installation of conservation measures, renewable energy systems, and distributed generation resources within the service area of the City Electric Utility.The Director of Public Works and Utilities, or his designee, is authorized to enter into contracts and agreement with City Electric Utility customers to fund the acquisition of energy by installation of conservation measures, renewable energy systems, and distributed generation resources the Director of Public Works and Utilities determines to be cost-effective. Cost-effective shall have the meaning given such term in RCW 80.52.030(7). (Ord. 3391 § 2, 2/12/2010; Ord. 3311, 12/14/2007) 3.25.040 -Administration of fund. The Director of Finance is charged with the administration of said fund. (Ord. 3391 § 2, 2/12/2010; Ord. 3311, 12/14/2007) about:blank 10/6/2015