HomeMy WebLinkAbout2007-09-19 Agenda Packet - Board (14) Agenda Item # 6
Public
Utility District
Workshop
To: Board of Directors
From: Doug Grandy
Date: September 14, 2007
Subject: TDPUD Citizen Advisory Water & Power Conservation Committee
Monthly Report
September 2007
1) There have been two meetings since last month's report: August 16 and September 11.
Minutes for the 16th meeting attached.
2) Summary of accomplishments at those two meetings:
a) Developed a solid understanding of the District's load profile as it relates to energy
and/or demand reducing strategies. (Special thanks to Steve Hollabaugh)
b) Adopted a 12-month schedule for meeting milestones. (attached)
c) Formed Subcommittees to work on the details of program development.
i) Subs have each developed their own purpose statements and are meeting on
their own schedules, and have elected their own leaders.
ii) Three Subcommittees: Strategies & Tactics; Outreach; and Policy & Fiscal.
d) Elected a Vice Chair: Joanna Walters
e) Adopted unanimously a statement of "Charge to the Committee"
"The TDPUD Conservation Committee will reduce the consumption of electric
and water resources in the TDPUD service area through research, planning,
program development, community outreach and close cooperation with the PUD
Board of Directors. The Committee shall develop plans and programs to:
• satisfy the requirements of the public benefits program related to
conservation
• evaluate the cost/benefit ratio of various conservation methods and
recommend those practices that represent the best investment of the
District's limited resources
• reflect the District's preference for established and successful
conservation practices, avoiding those practices that are still in the
experimental or developmental stages
• give special attention to low income persons
• deal with the issue of irrigation water practices"
3) Approach for development of cost effective measures (2 slides):
a) Examine loads —where are the kWh and the costs?
b) Look at supplies — what is being offset?
Meeting Macro Schedule V 1.1 7/27/07
Meeting # Milestone Educational topic Comments
1 Introductory meeting, start Each other's
to get organized backgrounds
2 Elect Chair, start to Existing Conservation
formulate committees Program
3 Select subcommittees. TDPUD's supply,
Hold first meetings. loads
4 Subcommittees pick Load study—
leadership. Report to characterize loads
Committee. Outline of
report proposed in full
Committee — vision
statement
5 Subcommittees meet, District Budget, rates
report out to full committee.
Outline of report and vision
agreed upon.
6 Subcommittees do their Energy and water
work, report out to whole efficiency technology
group. Early obvious
opportunities identified
7 First draft portions coming Renewable energy
into the outline from technology
subcomms. Whole group
comments
8 Report beginning to take DG, Demand
shape, still has holes Response
9 Integrating the whole vision Smart Grids
conceptually
10 Report into readable, but TBD
still draft, form
11 Last working session on TBD
report -71
12 Finish report
CONSERVATION COMMITTEE
6:OOPM - 9:00 PM, Thursday, August 16, 2007
TDPUD Board Room
MINUTES
1. Call to order
2. Roll call—Members: Doug Grandy(Chair), Christa Finn, Ben Benson,Jim Booth,Susie Sutphin,Anna
Demm, Rolf Godon, Eric Perlman,Jim Booth,Tom Gorin,Joanna Walters(arrived 6:10p), Dan Dickerman
(arrived later)
Staff:John Ullrich (interim GM),Steve Hollabaugh, Scott Terrell
3. Approval of Minutes of July 12,2007 Meeting
Eric recommended both 7/12 and 7/24 minutes be approved.
All approved
4. Public input—No public attendees
5. Report from Chair Doug Grandy re: Board Mtg.of 8-15
Doug had basically two proposals for the Board to approve:a budget and the communication methods for the
Committee.
The Communication Proposal was approved as delivered with the following exceptions:
1. Notices of full committee meetings will be posted at Library in addition to TDPUD offices,
www.tdpud.org and http://groups.Yahoo.com/group/TDPUDConservation/
2. Instead of the meeting"schedule",we will post"notices"on yahoo group and TDPUD website.
3.The Board would also like us to be careful not to conduct meetings, make decisions,or even carry
out"deliberations"in cyberspace.
[see attachment at end of what Doug G.proposed for communication]
The budget proposal[see attachment at end]was met with the expected reaction that it was too high. Doug G.
thinks in future he'll leave off'in-kind'costs, such as staff time and building use. . This item will probably be at
every Monthly Board Report as it evolves.
Rolf G. attended the meeting as well. He noted that Director Ron Hemig was very supportive of the committee
and wanted to provide what we felt was really needed. Staff time spent on the Committee work will be
accounted for in their objectives.
Steve H.commented that his department and other's are looking forward to helping the committee be as
productive as possible.
Eric P.thought we should promote that conservation will save the District money, and we should have
presented a minimal budget, rather than ask for a lot up front.
John U.wants to reassure Committee that he thinks its work is important and he will give as much support as
possible. He noted the Board doesn't have much appetite for spending more money above and beyond what is
in budget already. Good communication between the Committee and staff will be key for utilizing resources
already available.
Board Agenda Item #5—Conservation Goals: Doug G.told board we would not ask to stop the progress with
setting goals. Got assurance that the proposed goals are not a"ceiling",from staff, including NCPA,but nothing
especially clear from the Board was stated.
Board Item#15—New General Manager search: Doug asked if the Board want to hear from us as a
Committee?Mike(from the search firm Ralph Andersen&Associates)talked with Doug after his comments
and said he was very interested in hearing from us,as we represent much of the public. Please contact him
directly—either as a group or individually. Doug G. has his contact info and will give it to whoever is interested.
This topic will be on the Board Agenda for the regular Sept 5 meeting. Board handed out a draft of the
"recruitment brochure'. Doug and Rolf have copies.
John U. noted that the description reflects almost exactly the PUD Mission statement is so any changes may
need to be addressed at that level.
Eric: In the GM description, Item #6 should read,"...recognize that conservation and renewable energy are the
most cost-effective resource" In the Ideal Candidate section, it should read,"... proven commitment to
renewable energy and conservation oriented policies."
6. Presentation by Steve Hollabaugh:TDPUD's Electric&Water Supply Portfolios(started at 6:40p)
Actual Topic: Electric&Water load,customer and usage data
[large handout from Steve with data for Jan-Jun 2007 and Jan-Dec 2006]
Biggest Users:
Water company,TTSA,Tahoe Forest Hospital, Safeway
Scott T.: Can get full list in handout from last meeting.
After going through the data and graphs, Steve noted that the TDPUD peaks are weekends and holidays
because second homeowners are here then.This summer's peak was July 5"'. In winter, it is from Dec 25"'—
Jan 1st.The growth of secondary residential customers is faster than primary—Jan 06 ratio was 42%primary v.
58%secondary.Jun 07 ratio was 40%v.60%
Jim B.:Will new developments change PUD supply plans significantly?
Steve H.: PUD doesn't make planning or land use decisions,so the PUD has no influence on whether or not
developments go in, or how they get developed.We forecast load and prepare to meet that as best possible.
Our district is the best conservation tool for the Bay Area, because when it's peak down there,we have 2`d
homeowner coming up here and not using energy at their primary residence when the rest of California is under
peak pressure.
Scott T.:The best way to approach the issue of over development is to meet with Town's building committees.
Eric P. requested Steve send us a memo with his opinion of the best targets for conservation. It doesn't have to
be fully detailed,just what he thinks is the'low hanging fruit'for conservation in the district?
Steve H.: Peaks for summer are not very extreme(unlike the rest of CA),winter on average is higher than all of
summer.Truckee's load factor is about 70%(load=average kWh/peak kWh).Truckee has a narrow range,e.g.
3'd Qtr Truckee swing is only 2 MW,which is when CA has highest demand and power is the most expensive.
To compare, Redding has a range from 50 MW to 200 MW(25%load). His point is—to get the biggest bang for
the buck,the PUD needs programs that save kWh—not just shift the time of use.All the excel sheets with data
for the handout was sent to Tom Gorin.
Anna D.:what effect will new development have on load requirements?
Steve H.:AB2021 requires energy efficiency as the 1s`source of energy. Historical data shows use for new
development,which was at 4.5%rate in the last 5 yrs. Previous historical average is 3%.Steve H. has used just
1%for future forecasts,assuming 2%will be covered with conservation needs.The 2%is higher than RMI
study estimate.
Doug G.:What is marginal cost for power at each qtr, month,day,time of day?
Steve H.:Currently the PUD is under contract with Constellation power source for blocks by month for light load
(10p-6a)and high load(6a-10p) .The block is at a fixed price--$49/MWh.The Put&Call prices(for actual
variations above and below the blocks)are at market prices. Only 2%of the overall portfolio is bought at market
rates.50%of the customer's bill is power purchase costs.The other 50%is fixed operational costs.
Now,the Board has set 21%RPS(Renewable Power Supply?)target by 2010.As of 1/1/08 that contract with
Constellation ends. For future supply,we'll have
• Stampede Reservoir:small hydroelectric,share with Fallon
• Rye Patch:geothermal, 1-6 MW,supply starting at end of 2008
• In negotiation with another geothermal generator for an additional 2 MW
• WAPA:secure supply but we don't get it directly. PUD sells it in that area and re-buys it in our area at
lower-than-market cost
• UAMPS:signed up for all-in pool. Members assign resources and loads to pool and then it's
redistributed as needed at cost of the members who supplied it, not at market rates. Members are all
public utility agencies.Cost works out to$.06/kWh,or$52-$54/MW
Steve H. expects to have power supply be 50%renewables by 2010, not just the 21%target set by the Board.
Transmission—we're connected to NV(as well as Mountain/MidWest)which has geothermal resources.This
makes it easier for us to get it than other CA utilities.
Wind—This is harder for the PUD to integrate because we have to take the power when it comes, but we can't
predict it at all.Average for wind is 15%load, so PUD isn't large enough on its own to absorb the supply
variations.We'd need to partner with other utilities to make wind power work.
The first source of power eliminated when demand drops is COAL-sourced power(Mountain/Midwest supply).
If the money spent to conserve 1 kWh is less than$.06/kWh,than conservation program will be cheaper than
the power. If it is more than$.06, it might still be worth doing but will have to take in other factors than power
supply costs.
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Eric P:Will cost of coal power change with "carbon tax"?
Steve H.: Isn't settled HOW"carbon tax"will be calculated. If it's done based on past history,we may not have
extra costs.
Jim B.:What effect does Natural Gas use have on electric use and `green'power?Should we concentrate on
converting electric water heaters or getting rid of baseboard heating?
Steve H.: Natural gas availability in Truckee has shaved most of the peaks off the electric use.There used to be
a high peak in early morning,for heating, but that is gone now.
Scott T:With Title 24,there are no new homes built with electric space or water heating. However, new
electronics are getting huge and sucking a lot more power,so some use is being shifted, not eliminated. For
example,an LED TV is more expensive than plasma, but it uses a lot less energy.
Tom G:What would be helpful from Steve H. is the use data by age of home(meter connection date). Is it
available?
Steve H.:That's not easily accessible, if at all. Most data is not tracked by the date of original connection.
Eric P:What if we cross reference PUD information with the tax assessor's info?
Jan U:Will this data be really useful? Is it worth the time spent getting it? Board approved transfer of public
benefit funds for installing more efficient water pumps.That is 8%of total load.
Now, can you give us your opinion on what needs the most attention?
Steve H: Look at programs we have now and figure out how to enhance those.
[Steve H. and John U. left the meeting.]
Doug H:The Board Agenda item that transferred funds was for a project that is already completed.The funds
were from the 2.85%revenue allocated for conservation.
9. Conservation Committee&Sub-Committee Formation/Operation
Joanna read proposal for Committee policies and operations[see attached document]
General discussion of how to add new Committee members.We weren't sure if we needed to have the Board
approve new members or not. Decided to strike out section 4 and address this later,when it is needed.
Recommended for adoption by Rolf G.,seconded by Christa F.and Anna D.Approved by Committee.
Macro Schedule
Doug G: Does anyone have any additions or changes to the Macro Schedule? He met with most of the TDPUD
Executive Staff. He will ask Mary Chapman, Budget Manager,to make a presentation about all the different
funds and rate design of TDPUD, how financing works,what the public benefits money amounts are,etc.for the
Fiscal Subcommittee. Most other utilities have tiered rates so that last kWh used is most expensive.This makes
the users make greater efforts to use less.
Should all monthly meetings have a section for the subcommittees to meet? If so,then each member can only
be on 1. It was agreed we would keep a section of the agenda for Subcommittees for now. Each Subcommittee
is free to meet whenever they feel necessary between meetings.
At the Board Meeting, Director Tim T.discussed conservation as a cost. Doug suggested he should view it as
an investment. Money spent on conservation will reduce future supply costs.The Board currently thinks they will
just spend money on conservation until it hurts,then stop.This will be an ongoing effort to shift the view of
conservation.
7. Election of Vice Chair
Joanna Walters was nominated by Rolf G. Seconded by Eric P. Committee elected Joanna Walters as Vice
Chair.
8. Load Study&Other Budgetary Needs-Discussion
This item was addressed during Doug's Board Meeting report. Further discussion will be moved to another
meeting.
9b.Subcommittee Formation
Three committees were approved: Strategies&Tactics, Outreach,and Fiscal&Policy
Doug G: Each should elect a lead and come up with a statement of purpose. Request that Chair and Vice Chair
are not leads.
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10. Break into Sub-Committees(start at 8:25p)
11.Sub-Committee Reports(start at 8:50p)
Scott has a full package of all ideas submitted to him in the past months.A copy was given to each
subcommittee lead.
Strategies&Tactics
Lead: Christa Finn.This is likely to change soon.
Purpose:To collect conservation ideas of the full committee,to prioritize those and work on most promising.
Insure there is a continued focus on renewable energy options.
Members:Christa Finn, Dan Dickerman, Ben Benson,Jim Booth
Doug G.At next month's Board meeting, he will proposed adding renewable power supply to the Committee's
charter.At least 4 current members applied onlyto the power supply committee that was combined with this
one.
Policy&Fiscal
Lead:Tom Gorin
Purpose:Analyze and collect energy and water use data. Standardize formats for use by other Subcommittees.
Collect and analyze District income and expense data. Interpret local application of statutes.
Members:Tom Gorin, Doug Grandy,Joanna Walters
Outreach
Lead: Rolf Godon(initially)
Purpose:To significantly increase the number of customers using energy efficient measures.Create networks
and partnerships which result in energy efficiency policies and programs being implemented.
Members: Susie Sutphin,Anna Demm, Rolf Godon, Eric Perlman
Doug G.: Members can move around,join more than 1 subcommittee and rotate,as desired.
12. Set Next Meeting Date/Adjournment
Tuesday September 11,2007.6-9
We'll have a period of that meeting for subcommittees. Doug will send draft agenda as earlier as possible.
Requests comments are sent as soon as possible. If it's too close to when the final needs to be posted and
mailed, it's harder to integrate them. Notes will be distributed to meeting attendees for approval first,then posted
on yahoo group. Final approval will be at next full meeting.
Adjourned: 9:17 p
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Proposed Communications for TDPUD Conservation Advisory
Committee
Full Committee Meetings:
publish agenda/notes on TDPUD website and on Yahoo! Group
email agenda/notes to Committee members
post at TDPUD office
Subcommittee Meetings:
publish schedule on TDPUD website and on Yahoo! Group
post at TDPUD office
Committee Members and roles(what subcommittee each is on)should be
published on TDPUD website,Yahoo Group and at TDPUD office.This
would include Name, Phone#(at least for the Chair and Vice Chair),
address and email.
Anyone interested will be allowed to join the Yahoo Group.The Chair
and or Vice Chair will also respond to any public requests for
information.
Other avenues for outreach that will be used,as we feel necessary,
but not required:
local newspapers
chamber newsletter
bill inserts
bill notes(printed on bills)
• Page 5
Proposed Budget for TDPUD Conservation Advisory Committee
Draft August 10, 2007
Staff Time 0.5 Person-year(-$100,000)
The need for staff time is apparent,as the activities directly impact on the programs being carried out daily by
staff. The nature of this activity is such that it does not cost the District net funds,but rather displaces program
priorities that were scheduled to be accomplished. Here we have estimated staff cost as though it were
additional just to give perspective. The estimate represents roughly half time fully loaded cost for Director level
personnel.
Consultants $110,000
Consultants will be needed for special studies,for ongoing support,and for presentations on areas requiring
specific expertise.We outline here a few, but point out that in such an early stage of the process,there is much
more to know than is currently known, and these are placeholders for more specific details to be developed as
the process unfolds.
Load Study $50,000
Analyze end users of electricity in the District and find kWh by end use device(appliance, process,etc.)
by rate class, by time of use,and note any other trends or groupings.
Ongoing meeting support $5,000/mo ($60,000 for one year)
Facilitation services as requested,handout document management,taking of minutes,drafting of report
sections under direction of Chair and Subcommittee leaders.
Special Presentations $9,000
We estimate 6 such presentations, @ $1,500 per presentation including all preparation,travel,
materials, etc.
Materials Support $5,000
Provision of minimal refreshments for Committee and Subcommittee meetings,flip charts, pens,other office
supplies, room use,copier use, paper for handouts and announcements, public notices,etc.
TOTAL $115,000+about 1/2 PY redirected
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Conservation Committee Policies and Operations
Proposed and Adopted August 16,2007
1. The Committee will annually elect a Chair and Vice-Chair from the current Members.
a. Chair Duties: lead monthly meetings, present progress reports to the Board monthly or as
needed, respond to any public requests for information, create agenda for monthly meetings
and distribute.
b. Vice-Chair Duties: fill in for Chair as needed at Committee monthly meetings and Board
meetings. Arrange for monthly meeting notes to be taken and published. Keep Committee
documentation current and publicly available, including meeting agendas, notes, Committee
contact list,email group, subcommittee reports,common committee file templates, etc.
2. Meetings will be held monthly at the TDPUD Board Room, 6-9 p.m. Each Subcommittee will give an
update at the monthly meeting. As needed, the Full Committee will vote to approve Recommendation
Reports.Other process and organizational items will be passed by a simple majority vote.
3. Each member must be on at least 1 Subcommittee. Each member must attend all monthly committee
meetings, with 3 absences per year allowed. At that time, the Committee has the option of voting the
member off the Committee. Members should contact the Chair or Vice Chair in advance if they will not
attend a meeting. If a member wishes to resign, they should send a written notice to the Chair or Vice-
Chair.
4. [This section was deleted.]
5. New Subcommittees will be created by a majority vote of the current Full Committee. Subcommittees
can be eliminated by a majority vote by the Full Committee. Each Subcommittee must have at least 1
current member at all times.
6. Subcommittees should each appoint a lead.
a. Subcommittee leads will perform the same duties as the Chair and Vice Chair for the
Subcommittee.They are responsible for giving a monthly update at the full committee meeting.
If the Subcommittee recommendations are approved by the full committee, the Subcommittee
Lead will assure that a Subcommittee member can present them to the Board, with the
Committee Chair.
7. Each Subcommittee should write a statement of purpose and set goals for each quarter and year.
8. These policies can be amended by a majority vote at any full Committee meeting.
• Page 7