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HomeMy WebLinkAbout2006-12-13 Min - Board -- SPECIAL MEETING December 13, 2006 In accordance with District Code Section 2.08.010, the TDPUD minutes are action only minutes All Board meetings are recorded on audio tapes which are preserved perpetually and made available for listening to any interested party upon their request. The special meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order at 7:04PM in the TDPUD Board room by President Taylor. ROLL CALL: Directors Joe Aguera, Ron Hemig, Patricia Sutton, Tim Taylor and Bill Thomason were present. EMPLOYEES PRESENT: Sanna Schlosser, Steve Hollabaugh, Nancy Waters, Alan Harry, Kathy Neus, Peter Holzmeister and Barbara Cahill CONSULTANTS PRESENT: Steve Gross OTHERS PRESENT: Frank and Juanita Schneider, Christine Stanley, Norm Bolf, Don Battles, Jim Sloan, Jenny Ross, Garry Bowen, Joel Erickson, Jeff Weed, Ellie Hyatt, Don Hyatt, Michael Washington, Richard Cockrell, Lin Zucconi, Barbara Green, Marty Woods, Colin Terryton, Paul Veuereuissen, Peggy Towns, Jesse Getz, Tim Condon, Ronnie Colby, Brian Woody, Mike Kahlick, Kristen Colby, Mark Brown, Eric Perlman, Patrick Higgins, Ben Bensen, Dan Goeschl, Ann Davis, Tim McDermott, David Yardas, Judy Dowdy, Ben Milikien, Chris Worcester, Joanna Walters, Chris O'Malley, Mark Keim, Steve Batie, Karen Sessler, Sam Zabell, Gred Zabell, Kaitlin Backlund, Patrick Fleming, Delilah Fleming, Emersen Fleming, Colleen Dalton, Allen Frank, Patty Lomanto, John Eaton, Robert Mowris, Kyle Kessler, Danae Anderson, Helen Shadowens, Keaton Collery- Rieders, Julie Coole-Rieders, Rob Roulands, Chessie Cooley-Rieders, Parvin Darabi, Astrid Gulbrandsen, Mario Rey, Nicole S. and John Willstrom. PUBLIC INPUT There was no public input. CONSIDERATION OF A RESOLUTION ADOPTING A POWER SUPPLY PORTFOLIO Item was pulled from the agenda. CONSIDERATION OF ADOPTING A RESOLUTION AND APPROVING A CONTRACT WITH THE UTAH ASSOCIATED POWER SYSTEMS FOR PURCHASE OF ELECTRIC POWER FROM THE IPP-3 POWER GENERATION PLANT. Director Hemig was asked to chair the meeting. He gave a little history that the board has heard from two groups and would like to move forward in a collaborate way that is better for the commu- nity. Director Hemig stated there appears to be the following choices: don't sign the contract, sign the original contract with the heavy base or achieve the goal by a plan in between. We all want a portfolio with principally green power - but how do we get there. The District plans to accelerate green power- this will cost money, but will happen over time with investment and effort. The District can reduce the base to UAMPS where it becomes a piece rather than a chunk. In this case, the District will have the risk of going to the open market to cover the rest of the power needs. Or the District could diversity for the long run and take the savings to invest and aggressively pursue re- newables. 1 Minutes: Dec. 13, 2006 Agenda Item # 8 Director Hemig said the District needs to change its mission statement regarding "environmental manner" as it is be too vague. It should be accompanied with benchmarks- take the newest state portfolio standard and beat it. The District should form a committee of professionals, consultants and staff to earmark dollars to support renewables and provide an accelerated effort. Public input: John Eaton • Work out something to omit PUD liability regarding carbon dioxide and dollars. • 1/3 of original Kwh is a significant improvement • Supports the community to put together a real plan for green energy with dollars from customers and a wide range of citizens • Recognize there will be use of coal in the beginning and there is a limited dependence on carbon based energy. The community needs to come together to provide a solution for cleaner energy Robert Mowris • Global warming stats per Dr. Hanson • Get rid of coal plant that do not have sequester • Carbon sequester could push the price of this power up to $90 • Least cost is energy efficiency: lighting, hospital chiller • Alternatives: biomass, bio-diesel, gas turbine, solar Al Farrantine • Where was this 50 year coal contract issue during the election debates • 60 days to weigh in on this issue is not enough time • Board has been put in situation where they can't vote with so little public input Tim Condon • No reason to adopt a portfolio except only the most ambitious- shoot for the best standard • Sierra Club has challenged the IPP3- so a lawsuit could begin • Possible carbon tax in the future • Set an example- if this were a 50 year solar contract- would the meeting have as many people Scott Terrell • Opposes the project and does not agree with coal. • Environmental regulation could impact the price and UAMPS will not guarantee a rate with a cap • The District should invest in Truckee and not send dollars to Utah- invest here in equipment building and efficiency • Charge a conservation rate • Use market rate power for the short term so can pursue renewables- can switch to greener Brian Woody • Utah has high levels of lung cancer • Truckee should produce their own power • Intermountain Power costs have been up the last 2 years • National Geographic article on Nano Solar • Do not make this contract decision in haste- can't do in 2 weeks- need an energy task force Mike Kahlich • Thanks to Director Sutton for making the Board accountable • If the District does not enter in this contract, what will happen to the rates? • How will the power gap be filled between 2009 and 2012? 2 Minutes: Dec. 13, 2006 Bob Johnston • Global climate change is a moral issue- more important than economics • California says coal burning is unacceptable- the laws were made after years of information to the legislation and much deliberation • Demographic in Truckee has changed • The District Conservation program is weak and inadequate. Other utilities spend dollars on conservation. • Cost of coal plant will rise a lot- new regulations could raise costs between 20-40% • Contract too open-ended, costs could triple, price illusion Tim Wagner (Sierra Club) • This is a difficult decision and he respects the Board • This is a national global issue and everyone needs to work together • Pulverized coal technology is archaic in the 21 st century and will be obsolete in 20 years • Utilities are moving toward cleaner more sustainable energy • IPP3 could be shut down, it is not a done deal, Sierra Club has filed an appeal. • Tax for CO2—concern for external costs • District should have more programs in energy efficiency- conservation programs are the cheapest way to access power • New technologies and lots of new research: biomass, wind, concentrated solar • Be a good neighbor to Utah and not spew CO2 Paul Vercruyssen • Choose between economic and environmental benefits • Use public conservation • IPP is old technology- has not improved- plant by Pyramid Lake abandoned • Wind and solar coming to maturity- new advances are being made to store power • Don't want to finance a new coal project • One and a half months was not enough time for public input Colin Taylor • In favor of the contract and part of the silent majority. • Many things the board is being told by the audience are not true • Combined cycle plant is only 50% efficient—waste is 50 % natural gas • When the wind does not blow, cannot get wind power • Need to sign contract for low cost power, so the District can access green power- need to look at in a business sense • If the Board does not sign the contract, there will be less money to spend on renewable energy • Can build a cogeneration, but have to have the money Lin Zucconi • Why wouldn't public utilities want to be responsible? • Would gladly pay start up cost for renewable power- pay now to save later- will pay less in the long run Mike Washington • Concern about global warming/ice melting in Artic • Have to be responsible • Coal fire will create more CO2 Neal Mock • Put solar on houses- it is a solution- state rebate can offset cost • Need to subsidize renewables- PUD should not subsidize coal by signing this contract 3 Minutes: Dec. 13, 2006 Sam Zabell • Signing the contract will increase the effects of global warming. • By 2050, there could be no snow • He wants to be proud of what the Board decides • The future is always in motion- so make the move in the right way Karen Sessler • Lived in Long Island near the nuclear power plants that never did run- the rate payers had to absorb the cost • Tonight, the Board has the ability to see what is coming: carbon tax, law suites, health class actions, may never be built—PUD cannot afford to be involved at all Kaitlin Bocklund • Conservation advocate in Nevada- policies happen in increments • Hopes the contract gets voted down- but the Board may do better with a compromise • Build consensus and collaboration —work on policy- define a path to move to an end point Richard Cockrell • Make an effort to get off coal —talk renewables and conservation • Incorporate agencies • New buildings need to have renewable energy requirements Brigita Kaneda • New York times articles states 47 resorts in 14 states use renewable energy-solar, wind and 19 ski resorts rely on wind power • Feels we should shop around and find alternatives for renewables Barbara Green • There needs to be discussion on flat rate or guaranteed price in the contract • Request for clarification of the $35 stated by a director in the Sacramento Bee Marty Woods • Does not want the PUD to sign a 50 year contract for a plant based on old technology • Youth of today should not have to deal with this long term contract • Listen to the community—be responsible Ronnie Colby • Has grave reservations about 50 years of coal • Control greenhouse gas emission • Mr. Hunter of UAMPS cannot guarantee the price analysis • Have a low income assistance program- lifeline program Kristen Colby • She is a nurse and has facts regarding the health ramifications of coal-asthma, emphysema • Not happy with 50 year contract • Hear facts and do homework on all sides of the issue- apathy can kill • Thanks the Board to open their minds to solutions coming out now. Ellie Hyatt • Sacramento Bee article states Utah coal promises cheap and stable price • What has the PUD spent on IPP3 to date? • Concerned with future litigation if the Board approves the contract Kyle Kessler • Implied right- the PUD has the right to impose a 50 year contract for the coal plant. • This would affect his young generation- decisions are being made by people who will not be here in 50 years • The deal should be voided- don't think about it. 4 Minutes: Dec. 13, 2006 Garry Bowen • Sustainable design projects • Mining coal is unsustainable • Transmission lines are in bad shape • There could be a 25-30% rate increase regardless of signing the contract Chris Worcester • Use renewable energy system- being off the grid makes a difference • 56 years ago, solar was not there- today solar can produce 835 mg pv in Ca. • Where is future leading us? Wind is not a bad answer- tie into the west. • No reason to go 50 years of coal- a lot of progressive things happening Peggy Towns • Sierra Sun had a poll on the editorial page and many people are against the coal contract • When do the other members of UAMPS have to sign the contract? What is some default? This could make our share go up. • State of California implemented a law so utilities would come up with alternatives- limit con- tracts to 5 years. California is leading the way in alternative energy- positive thing Beth Ingalls • Opposed to the contract- 50 years is scary • Contract makes a statement about joint venture benefits UAMPS- how does this do any good for the PUD? • Transmission is unknown • There a pending lawsuits, referendums, etc • PUD is limited in power of action if UAMPS defaults Nicole Sachse • Can't believe this 50 year contract is being considered- risk is huge- does not make financial sense- what is the return and the savings- the loss potential • Put an action committee together to work out a portfolio Board comments: • Natural gas drives the price of our power- meaning a lot of volatility which we want to avoid • A director should look at the stats and make sure they are dealing with facts • Looking at the future will always be a risk • Heard from many groups and each day changed the way to vote • Want to do the best for the District- best for the ratepayers- aware of the effect on all in the community- every rate increase affects other things in the community- a domino effect • Want green power- have 13% now- but there is nothing else available • This contract will be less than market • 50 years is a long time- but it is a wholesale power rate; not a 5 year contract at a retail rate • Thanks for all the passion • Reality needs to be addressed- board checked facts, power, generation • The PUD proposes a contract we can afford and pursue green power (16.4% in 2007) • Cannot ignore that coal power must be part of our portfolio- need a sound portfolio • Debate should be how much to sign for- not whether to sign- need firm resources to back the public plan- a road map over time. • Truckee can combat global warming by doing a small part • Decision is based on money and time- not just coal • $35 MH rate is artificially inflated • Republican administration may get away from the coal subsidies and tax credits to invest in new coal power plants • Legal issues on Counsel Steve Gross's memo 5 Minutes: Dec. 13, 2006 • Contract goes against laws that the state of California has passed- this is not right • Conservation power plants • Contribute dollars toward renewable energy • Set up an advisory committee • The District should pursue more renewable energy- wind through SMUD or Plumas Sierra; biomass from Loyalton; geothermal from Honeylake • Opportunities are not far away- need public participation to make sure renewables happen • Explore upgrading power lines from the west Director Sutton moved and Director Thomason seconded, a motion to not sign and decline to ap- prove the 50 year contract with UAMPS having to do with the purchase and participation in the IPP3 coal fire plant near Delta Utah. ROLL CALL: Director Taylor, no (there was a decent solution as the modified approach and a benefit to the community); All other Directors, aye. SO MOVED. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 10:50 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Tim F. Taylor, Presid nt Prepared by �, De�puty w `(�� Barbara Ca District Clerk 6 Minutes: Dec. 13, 2006