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6.1. ERMUSR 08-11-2009~// Elk Ri r ~ ~' ve Municipal Utilities 13069 Orono Parkway • PO. Box 430 Elk River, MN 55330-0430 August 6, 2009 To: Elk River Municipal. Utilities Commission John Dietz Jerry Gumphrey Daryl Thompson From: Troy Adams Subject: Staff Updates -Director of Operations Phone: 763.441.2020 Fax: 763.441.8099 Year to date, electric usage is up 1.73%. Comparing a rolling year block to a previous year block, electric usage is up 4.11 %. Late July, I had received word that Minnesota Power would be interested in discussing our future wholesale power supply needs. In a preliminary discussion of generalities, Minnesota Power would be interested in providing a 10 year all requirements or partial requirement contract starting in 2018. In order to keep Elk River Municipal Utilities on their radar, Minnesota Power would like a formalized request stating our mutual preliminary interest in a power contract with the intent of revisiting the discussion in a more serious nature at a future date. Minnesota Power currently provides power for a number of municipal utilities including: Grand Rapids, Brainerd, Hibbing, Virginia, Two Harbors, and Grand Marais. At the July 14th commission meeting, staff was directed to have Mark Mathison from Gray Plant Mooty review the ERMU Employee Handbook in it's entirety while incorporating in the newly revised policies. Mr. Mathison has been reviewing the handbook and tentatively will have his comments for the Commission at the September meeting. For you reading, please find the following enclosures: MMUA Resource APPA Public Power Weekly 7-27-2009 Public Power Weekly ~r~ k. ~ ::~- fY~ Public Power Weekly APPA July 27, 2009, No. 30 ~~ a ~~~~>~~~ ~~ trtim APPA's s~rcfi and r t~ g ant prc~grartt C)EEC) ~~ir~ e APPA, others recommend caution in regulating C?TC energy commodity markets Those in the Obama administration and in Congress who are working to prevent excessive speculation in over-the-counter energy commodities markets should be careful to avoid policies that would make energy more expensive and thus hurt consumers, a broad coalition of utilities, energy suppliers and businesses said in a letter to Congress. The July l O letter was signed by APPA, the Edison Electric Institute, National Rural Electric Cooperative Association, Large Public Power Council, American Gas Association, National Association of Manufacturers and U.S. Chamber of Commerce, among others. "While we support the goals of the administration and the Congress to improve transparency and stability in OTC derivatives markets and to prevent excessive speculation, it is essential that policymakers preserve the ability of companies to access critical OTC energy derivatives products and OTC energy commodities markets," said the coalition. "We rely on these products and markets to manage risks to help stabilize and keep energy costs low for consumers." Gary Gensler, the chairman of the Commodity Futures Trading Commission, ~-eW a .. _ ~. ~ E ARPIa ~e ,y ..,.. cerr~r ~ ~, ~~ ~~~r^ra { ,r http://www.naylornetwork.com/app-ppw/printFriendly.asp?projlD=3214 (1 of 21)7/28/2009 3:37:08 AM Public Power Weekly announced July 7 that the commission would hold hearings this summer on what it should do "to ensure the fair, open and efficient functioning of futures markets," including the energy commodities markets. Gensler said the commission would look at whether it needs additional powers from Congress to reach that goal. APPA and the others said they have concerns with recent proposals to impose mandatory clearing of all OTC transactions, as well as requirements that OTC derivative transactions be moved onto an exchange. The high cash margin requirements of a clearinghouse or an exchange "would significantly increase transaction costs, and tie up needed cash at a time when the cost of capital is high, access to capital markets is uncertain, and our industries need to invest billions in new energy infrastructure," the groups said. And because clearinghouses and exchanges require a high level of standardization and liquidity in the derivatives and commodities products traded, "we believe that such proposals would greatly reduce the ability of companies to find the customized derivative products they need to manage their risks," they said. "Ultimately these increased costs and risks will be borne by all consumers." "We believe that there are far better ways to accomplish the goals of greater transparency and effective regulatory oversight of OTC energy derivatives and commodities markets without mandatory clearing or forcing these products to be moved onto an exchange," they concluded. -JEANNINE ANDERSON White House wants to tighten oversight of credit rating firms The Obama administration on July 21 sent proposed legislation to Capitol Hill to increase transparency, tighten oversight and reduce reliance on credit rating companies. The legislation is designed to reduce conflicts of interest at credit rating companies-notably by barring the companies from providing consulting services to companies they also rate-while strengthening the Securities and Exchange Commission's authority over and supervision of rating agencies, the Treasury Department said. The draft bill also would require an issuer to disclose all of the preliminary ratings it had received from different credit rating companies so investors would see how much "ratings shopping" happened and whether there were discrepancies with the final rating, Treasury said. Companies would be required to provide a much fuller picture of the risks in .,, `'~~`~ Vice President, Publishing :Jeanne Wickline LaBella !202/467-2948 JLaBella(p~APPAnet.orp Editor :Robert Varela '202/467-2947 !RVarelaC~APPAnet.org http://www.naylornetwork.com/app-ppw/printFriendly.asp?projlD=3214 (2 of 21)7/28/2009 3:37:08 AM Public Power Weekly any rated security through the addition of qualitative and quantitative disclosure of the risks and performance variance inherent in any given security, Treasury said. Each rating would have to include a clear report containing assessments of data reliability, the probability of default, the estimated severity of loss in the event of default, and the sensitivity of a rating to changes in assumptions. In recent years, investors were overly reliant on credit ratings that "often failed to accurately describe the risk of rated products," Treasury said. "This lack of transparency prevented investors from understanding the full nature of the risks they were taking." -ROBERT VARELA Duke CEt~ calls on Senate to pass climate change legislation; Boxer says bill will be ready by Sept. 8 Duke Energy President and CEO Jim Rogers on July 16 called for federal legislation to restrict carbon emissions. The same day, the head of the Senate environment committee promised to have a Senate bill ready by early September. Congress needs to pass legislation this year "because we need certainty," Rogers told reporters at a Washington, D.C., press conference. "We need a road map. We need to make investments. We need to make the transition to a low-carbon world. And I say that as someone who stands before you with a large carbon footprint." Of all U.S. companies, Duke Energy is the third- largest emitter of carbon dioxide, he said. Rogers, who met with a group of senators at a luncheon earlier that day, said they had discussed a number of issues related to acap-and-trade approach to restricting carbon. "We talked about the need to have a price on carbon and cap on emissions," Rogers said. "We talked about the importance of getting the transition right. But the most important thing we talked about is the importance of getting started now." Sen. Barbara Boxer, D-Calif., who chairs the Senate Environment and Public Works Committee, said last week that she plans to have a carbon dioxide cap- and-trade bill ready by Sept. 8, after Congress returns from its August recess. At a July 16 hearing of the environment committee, witnesses said companies from China and other countries would beat the United States in the race to find clean energy technologies unless Congress gives U.S. businesses a strong incentive in the form of carbon dioxide restrictions. Managing Editor 'Jeannine Anderson '.202/467-2977 UAnderso n(a~APPAnet. arg !production Editor ,David L. Blaylock .202/467-2946 DBlaylockCa'}APPAnet.org Circulation Susan Lynch 202/467-2970 SLvnch APPAnet org Mali Liu :202/467-2987 'MLiu APPAnet.ory 'Public Power Weekly is published weekly except the ;last week of the year by the American Public Power :Association, 1875 'Connecticut Ave. N.W., !Washington, D.C. 20007- -5715. Copyright ©2009, !American Public Power Association. '.Advertising -For information on ',advertising, contact Erik :Henson at Naylor LLC; 800/369- 6220 or EHensonCa~ Navlor.com. Classified Advertising Go to Careers in Public ;Power at APPAnet.org or contact David L. Blavlock at APPA, 202/467-2946 http://www.naylornetwork.com/app-ppw/printFriendly.asp?projlD=3214 (3 of 21)7/28/2009 3:37:08 AM Public Power Weekly "China will sweep us out" if the United States waits 10 years to cap greenhouse gas emissions, said John Doerr, an attorney with Kleiner Perkins Caufield & Byers, a venture capital firm. "Global climate change is more than an urgent scientific imperative, it is an economic opportunity of enormous consequence to our country," said Sen. John Kerry, D-Mass., at the July 16 press conference. He said Siemens CEO George Nolan and Dupont CEO Chad Holliday, as well as Rogers, had traveled to Capitol Hill to discuss climate change legislation with senators. "China is outpacing us in what is really the space age, space race if you will, of this century," Kerry said. China is moving into the lead, worldwide, in wind and solar energy, he said. Kerry said the Senate will take H.R. 2454, the climate change bill passed by the House, as a starting point. "There is room for some tweaking" of that bill, he said, but "we're not going to reinvent the wheel here." "And for everybody who is worried-and it is all of us-about what China [will do] and how well China will participate and can they be held accountable, there is absolutely no prayer of getting them to be held accountable or making them be part of the solution unless we move to do this now," Kerry said. "If we move, China and the rest of the world will have to move." -JEANNINE ANDERSON 1~'IL~ti'~', TVA. offer cash for energy efficiency Memphis Light, Gas & Water and the Tennessee Valley Authority have teamed up to offer cash incentives for homeowners to make energy efficiency improvements to their homes. MLGW and TVA will reimburse homeowners up to 50% of the costs, with a maximum of $500. These improvements may also qualify for up to $1,500 in federal energy tax credits. Participants must pay $150, which is refundable, to aTVA-certified evaluator, who will identify needed improvements including the installation of EnergyStar-rated windows and storm windows, repair and sealing for HVAC systems, rehabilitation work, HVAC replacement, insulation, air sealing, and do-it-yourself caulking and weather-stripping. More information is available on the MLGW Web site. http://www.naylornetwork.com/app-ppw/printFriendly.asp?projID=3214 (4 of 21)7/28/2009 3:37:08 AM Public Power Weekly Bonne~°ille to raise wholesale po~~-er rates rou ;hly 7°~~ i Jctober The Bonneville Power Administration will raise its rates by an average of 6% for customers who buy power and transmission and 7% for power only. Transmission rates will stay the same. The rate changes are expected to take effect Oct. 1 and will remain in place until October 2011, BPA said. The average priority firm rate for wholesale power will be $28.77 per megawatt-hour. That compares to the previous rate of $26.90/MWh. BPA said the power rate increase is its first since 2002 and is driven by both rising costs and decreasing surplus revenues. Power customers will also receive $163 million in returned overcharges due to a 2007 decision by the U.S. Court of Appeals for the Ninth Circuit on BPA's residential exchange program. Financial benefits for residential and small farm consumers of investor-owned utilities, which are based on BPA's power rates as well as other factors, will be $173 million, the utility said. "Nobody wants a rate increase, and we have worked very hard to keep the increase as low as possible," BPA Administrator Steve Wright said. "We tightened our belt and worked with stakeholders to keep the increase to a minimum, while honoring our commitments to fish, wildlife and maintaining system reliability." The primary causes of rising costs are actions to improve the safety and reliability of the Columbia Generating Station nuclear plant and actions to protect threatened and endangered salmon. BPA initially proposed a 9.4% increase in February, and in early April said a 15% to 20% increase looked likely. At that time, BPA said its financial picture had deteriorated significantly due to below-average water for hydro generation and the poor economy. Once the threat of a higher rate increase became clear, BPA said it identified more than $100 million in cost reductions. Those cost reductions, combined with an innovative agreement with the U.S. Treasury Department to provide an expanded line of credit, allowed the power rate increase to be brought back down to 7%, Bonneville said. BPA has instituted a wind integration rate of $1.29 per kilowatt per month, which was reduced from the initial rate proposal of $2.72. The decline is due primarily to actions taken by wind generators to reduce their use of BPA generation for reliability when wind power ramps up or down unexpectedly, http://www.naylornetwork.com/app-ppw/printFriendly.asp?projID=3214 (5 of 21)7/28/2009 3:37:08 AM Public Power Weekly Bonneville said. "The wind integration rate is part of a larger agency strategy to bring more of this renewable resource into the system that would otherwise not occur," Wright said. "There's been an explosion of wind power on the BPA system, especially since 2005. We're proud of this accomplishment, but it has led to operational challenges, including risks to reliability and substantial costs." BPA continues to have the largest ratio of wind relative to load of any transmission provider in the United States. -ROBERT VARELA if the name fits, wear the boot The West Coast Shoe Co. of Scappoose, Ore., is looking for a good, catchy name for two new styles of electrical hazard boots and is offering two pairs of the heavy-duty leather boots as prizes in a contest called "Name That Boot." Lineworkers and others are invited to enter. There will be two winners, and ~~ ~ ~~~ each will receive a free pair of boots valued at $500, the company said. ~- ~ ,,~~~ ~ ~~ ~ ~-,~ One of the new boot styles is a 10-inch 'ground boot. The other is designed for - ; ""Larrxt~ 1~I2at ~~~rt' _ 'climbing and is available as a 10- or 16- ~~ ~.~ - k ~ ° ~ ~~ ~ inch-high boot. Weseo wants names that will differentiate the two styles. The boot is designed for lineworkers, electricians, arborists and others who need a heavy- duty, nonconductive boot that will "stand ^~~;; -_ 'the gaff and endure the test of time," said ~~r ~., .. , .s, :. Wesco President Roberta Shoemaker. Entries for the contest will be accepted through July 31. Winners will be notified by Aug. 15. To enter the contest, you can fill out an online form at www.wescoboots.com, or send a letter to Wesco with your boot name suggestion. Details are available on the Wesco Web site. -JEANNINE ANDERSON US electricity demand expected to drop 2% this year, EIA says http://www.naylornetwork.com/app-ppw/printFriendly.asp?projID=3214 (6 of 21)7/28/2009 3:37:08 AM Public Power Weekly With industrial sales slumping, total U.S. electricity demand is expected to drop 2% this year and then rise by 0.8% in 2010, the Energy Information Administration said in its July Short-Term Energy Outlook. Retail sales of electricity in the industrial sector were down 12% during the first quarter of 2009 compared with first quarter 2008 levels, the EIA said. The agency last month had projected a 1.8% drop in demand for 2009 and a 1.2% increase in 2010. Total natural gas consumption is projected to decline by 2.3% in 2009 and remain unchanged in 2010, EIA said. Poor economic conditions are expected to prolong the current slump in natural gas demand over the coming months, led by an 8.2% drop among industrial users in 2009. While consumption is expected to fall in the residential and commercial sectors as well this year, competitive natural gas prices relative to coal are projected to lead to a 2.4% increase in electric power sector consumption in 2009, EIA said. Natural gas consumption in the electric power sector is expected to decline by 1 % in 2010 as natural gas prices rise and coal regains a larger share of the baseload generation mix, EIA said. Natural gas prices are expected to recover in early 2010 as the market balance tightens, EIA said. The Henry Hub spot price is expected to average $4.22 per Mcf in 2009 and $5.93 per Mcf in 2010. Residential electricity prices rose by 8% during the first quarter of 2009 compared with the first quarter of 2008. EIA expects lower generation fuel costs to be passed through to retail consumers later this year, keeping the annual average growth in prices at around 4.7% and 3.3% in 2009 and 2010, respectively. 2009 would be the first year since 2002 that electric power sector consumption would drop below a billion short tons. It is projected to be 990 million short tons this year, EIA said. The 5.2% decline in coal consumption in the electric power sector is the result of lower total electricity generation coupled with projected increases from other generating sources, including natural gas, nuclear, hydroelectric and wind. Coal consumption in the electric power sector is expected to increase by 1.6% in 2010 as natural gas prices rise and coal regains a larger share of the baseload generation mix. -ROBERT VARELA R.W. Beck to be acquired by SAIL' R.W. Beck Group Inc. signed an agreement to be bought by Science Applications International Corp., pending shareholder approval. SAIC is a http://www.naylometwork.com/app-ppw/printFriendly.asp?projlD=3214 (7 of 21)7/28/2009 3:37:08 AM Public Power Weekly Fortune 500 company serving customers in national security, energy and the environment, critical infrastructure and health markets. R.W. Beck will join SAIC's Infrastructure, Logistics and Product Solutions Group, which provides technical and engineering services for a variety of clients and mission areas, including all hazards preparedness and logistics; energy management services; and environmental support. R.W. Beck's core consulting and engineering organization will join the group's Energy, Environment, and Infrastructure business unit. Beck Disaster Recovery, Inc., of which R.W. Beck Group Inc. is the majority owner, will join the SAIC group's Homeland Protection and Preparedness business unit. The acquisition is expected to close in early August. Efficiency efforts in Burlington yield 'compellin;' results otiTer t~~~o decades Annual electricity consumption in Burlington, Vt., last year was only 1% higher than it was 19 years ago, Mayor Robert Kiss told a Senate hearing. The results of the Burlington, Vt., Electric Department's energy efficiency programs over the last 19 years "are compelling," Burlington Mayor Robert Kiss told a Senate hearing July 21. Annual electricity consumption in 2008 was about 1% greater than in 1989, he told the Senate Environment and Public Works Subcommittee on Green Jobs and the New Economy. "Even with substantial local economic growth over the last 19 years, Burlington has met demand with about the same amount of electricity used in 1989." Energy efficiency investments save Burlington consumers over $8.9 million http://www.naylornetwork.com/app-ppw/printFriendly.asp?projID=3214 (8 of 21)7/28/2009 3:37:08 AM Public Power Weekly of retail electric costs annually, Kiss said. Including a 1990 energy efficiency bond issue of $11 million and direct investments by customers, about $30 million has been invested in energy efficiency efforts sponsored by BED over the last 19 years, he said. During 2008, the municipal utility spent a total of $1.5 million on energy efficiency programs and participating customers spent an additional $ l . l million to fund energy efficiency investments in their facilities, Kiss said. Burlington's energy efficiency efforts "have been matched by a commitment to renewable electricity generation," Kiss said. "Currently 67% of Burlington's electricity is generated through renewable energy sources." Last year, with approval of Burlington voters, BED installed a nitrous oxide reduction unit at its 50-MW wood-burning McNeil Generating Station, which has allowed the utility to sell renewable energy credits, he said. The sale of the credits is expected to pay for the costs of installation of the nitrous oxide reduction unit within about three years. Burlington is actively working toward establishing a Clean Energy Assessment District, which will allow homeowners to fund energy efficiency and renewable energy projects with 15- or 20-year loans, where repayment is connected to the property, not the owner, Kiss said. The program would significantly strengthen the incentive for homeowners to make energy improvements, which give a return on investment over a longer period of time than the typical five- or seven-year home improvement loan, he said. Burlington received a grant of $34,250 from APPA's DEED program for the effort to form the Clean Energy Assessment District. If the home is sold, both the benefit and the obligation to repay go with the property. The city also is proposing to establish the Burlington District Energy Service, which would capture waste heat from the McNeil wood-fired plant to provide heating, hot water (and potentially cooling) to residences, institutions and businesses, Kiss said. A Senate climate change bill "should provide for direct funding of municipalities, including full funding of the [Energy Efficiency Community Block Grant] program, to ensure continued and sustained funding for local energy efficiency and conservation efforts," Kiss said. -ROBERT VA_R.ELA DQE announces more stimulus fundin opportunities The Energy Department has issued two more funding opportunity announcements for stimulus funds that may be of interest to public power communities. One is for $22 million for utility-scale community renewable energy projects in up to four communities, and the other offers $10.5 million http://www.naylornetwork.com/app-ppw/printFriendly.asp?projlD=3214 (9 of 21)7/28/2009 3:37:08 AM Public Power Weekly to cities to develop new or modify existing local energy assurance plans modeled after the Public Technology Institute's Luca( Enerw~ Assarrance Gccidelines. The renewable energy announcement (DE-FOA-0000122) is intended to support communities with existing renewable energy technology plans that are ready to move into implementation through readily deployable renewable energy installations. Applicants are encouraged to partner with other state and local governments and agencies, utilities (including municipal, rural electric cooperatives and investor-owned utilities), and renewable energy project developers to identify and leverage additional project funding and financing mechanisms, DOE said. Applications are due Sept. 3. DOE anticipates making approximately 50 awards of between $60,000 and $300,000 under the local energy assurance announcement (DE-FOA- 0000098). Cost sharing is not required. Eligibility is restricted to U.S. cities, which are defined as acity-equivalent unit of local government, such as a town, village or other municipality. Consolidated city-county governments will be eligible. The deadline for applications is Oct. 8. -ROBERT VARELA FERC smart grid priorities: security, interactivity The Federal Energy Regulatory Commission on July 16 issued a policy statement designed to speed up the development of a smart grid that would provide long-term savings for consumers by improving the grid's efficiency. The policy sets priorities as the industry develops smart grid standards. It also adopts an interim rate policy to encourage early investment in smart grid systems. FERC Chairman Jon Wellinghoff said the policy closely tracks the priorities that FERC proposed in March and protects consumers while providing cost- recovery assurances to utilities that invest early in smart grid technologies. The smart grid policy "will guide the transformation of the old grid into the grid of the future, while providing for fair regulatory treatment to consumers and utilities," said Commissioner Suedeen G. Kelly. The policy "is a step toward smarter rates that will enable customers to control their personal use of electricity," said Commissioner Marc Spitzer. "The grid needs to take advantage of technical innovations. At the same time, consumers need to be protected from unnecessary costs," he said, adding, "I frankly think this is one of the most exciting aspects of the work we're doing." Moeller agreed, saying the smart grid "has fantastic promise for consumers." http://www.naylornetwork.com/app-ppw/printFriendly.asp?projID=3214 (10 of 21)7/28/2009 3:37:08 AM Public Power Weekly However, he said, much work remains, and "we're going to be working on it for a while." The new policy adopts as a FERC priority the early development by the industry of smart grid standards to: . Ensure the cyber security of the grid; . Provide two-way communications among regional market operators, utilities, service providers and consumers; . Ensure that power system operators have equipment that allows them to operate reliably by monitoring their own systems as well as neighboring systems that affect them; and . Coordinate the integration into the power system of emerging technologies such as renewable resources, demand-response resources, electricity storage facilities and electric transportation systems. As it adopts standards for smart grid technologies, the commission said it will not interfere with any state's ability to adopt advanced metering or demand- response programs. The commission said it "continues to abide by the Federal Power Act's jurisdictional boundaries between federal and state regulation of rates, terms and conditions of transmission service and sales of electricity." The smart grid policy statement is posted on FERC's VVeb site. JEANNINE ANDERSON Municipal utilities lvin transmission rate, ownership provisions in ~Tid-American's l~1IS0 membership bid In a series of July 16 orders, the Federal Energy Regulatory Commission approved MidAmerican Energy Co.'s request to join the Midwest Independent Transmission System Operator. The commission addressed concerns raised by the Midwest Municipal Transmission Group and Municipal Energy Agency of Nebraska and for the most part ruled in favor of the public power groups. The commission sided with MMTG-MEAN in rejecting a proposal by MISO and Mid-American to base transmission rate credits for network customers on the network customer's cost of debt. In keeping with previous orders, FERC said, network customers who receive credits for their integrated transmission facilities are entitled to earn equity returns at the same rate as other transmission owners. Mid-American failed to support its proposal to revise or omit provisions in its tariff on joint planning and joint ownership, the commission ruled. The http://www.naylornetwork.com/app-ppw/printFriendly.asp?projlD=3214 (11 of 21)7/28/2009 3:37:08 AM Public Power Weekly existing planning provisions, which Mid-American negotiated with MEAN and the Iowa Association of Municipal Utilities, required the company to consult and share information with MEAN and MMTG. Mid-American also has an obligation to allow MMTG and MEAN to participate in investments in transmission line extensions. The commission ordered Mid-American to correct a transmission template error that would have greatly reduced transmission payments to some municipal utilities. Neither Mid-American nor MISO disputed that there was an error, but MISO wanted the issue addressed in a different proceeding. The commission ruling that MidAmerican will not have horizontal or vertical market power in the Midwest ISO and therefore can sell electricity at market- based rates in the region. "Having MidAmerican join the Midwest ISO will strengthen the Midwestern energy markets," FERC Chairman Jon Wellinghoff said. -ROBERT VARELA Hometown Connections selects GridPoint as smart grid provider Hometo«m Connections, APPA's utility services subsidiary, has selected smart grid company GridPoint as its exclusive smart grid solutions platform provider. The marketing agreement will allow APPA utility members to purchase GridPoint's software platform under favorable commercial terms and deliver energy savings programs to public power customers, Hometown said. GridPoint Platform 3.0 software allows utilities to integrate and customize smart grid solutions, including energy efficiency, load management, renewable integration, storage management and electric vehicle management. Hometown Connections and GridPoint will begin marketing software that meet public power utilities' immediate program needs such as demand response and energy efficiency, which will enable utility customers to reduce energy consumption and costs through an online energy management portal. GridPoint's smart grid infrastructure will provide economies of scale to public power utilities, said Hometown Connections President and CEO Tim Blodgett. "GridPoint's software provides public power with a roadmap to a comprehensive smart grid deployment, reducing the risk and time required to integrate new technologies as they come to market." The platform delivers smart grid applications through the integration of http://www.naylornetwork.com/app-ppw/printFriendly.asp?projID=3214 (12 of 21)7/28/2009 3:37:08 AM Public Power Weekly distributed energy resources, including plug-in electric vehicles, solar panels, advanced storage technologies, and household devices such as thermostats, electric water heaters and pool pumps. Based on open standards, the platform aggregates these new energy technologies from multiple manufacturers into a single manageable resource that utilities control via the GridPoint Utility Portal. The platform provides control, measurement and verification of events, Hometown said. It also increases flexibility and reduces costs for utilities to operate disparate systems, data and home devices, Hometown said. More information is available at www.hometownconnections.com and www. gridpoint.coln. Customer accounting and services and information technolo~v topics to be highlighted at Business & Financial Conference Topics in customer accounting and services and information technology are among the subjects to be explored at APPA's 2009 Business & Financial Conference in Savannah, Ga., Sept. 13-16. The Business & Financial Conference offers more than 45 concurrent sessions, including: . How the economy has changed your customer service policies and procedures, . Tools to help customers achieve energy efficiency, . Preparing customer service for AMI, • Customer service morale, . How the Red Flags Rule is affecting customer service, . Practical considerations for IT outsourcing, • Are you smart enough to implement smart grid?, • Caught in the Web: challenges with e-discovery, • Keeping your data secure, and . A study in disaster planning. In addition to these and other customer service and information technology sessions, the conference will include roundtable discussions and other opportunities for networking. Conference fees are $645 for APPA members and $1,290 for nonmembers who pay before Aug. 23. Attendees can save an additional $50 on their registration fee by re~isterin~ for the conference online. http://www.naylornetwork.com/app-ppw/printFriendly.asp?projID=3214 (13 of 21)7/28/2009 3:37:08 AM Public Power Weekly The conference program also includes concurrent sessions in the areas of accounting and finance, human resources and training, and pricing and market analysis. For complete program and registration information, visit the Events Calendar at www.APPAnet.ol-~ or contact 202/467-2973 or businessandfinance(~ AP PAnet.or~. Los Angeles mayor calls on L~D~'~'P to phase out coal Los Angeles Mayor Antonio Villaraigosa has directed the Los Angeles Department of Water and Power to eliminate the use of coal by 2020. "It's now time to meet the carbon challenge," Villaraigosa said in his second inaugural address July 1. "Breaking the coal habit is a long-term proposition demanding along-term commitment. It's going to require investment from ratepayers. Our future depends on pricing power in relation to the environmental cost." Currently, LADWP gets 40% of its power from coal plants located in Utah and Arizona but Villaraigosa said he envisions a city weaned of coal energy. LADWP will make up for this by using 40% renewable power, with the remainder coming from natural gas, nuclear and large hydroelectric, he said. Villaraigosa spent his first term pushing for carbon reductions from the city utility and said he expects to meet his 20% renewables goal by 2010. By 2020, the mayor predicted carbon emissions will have been cut by up to 60% of 19901evels. Carbon-heavy coal and natural gas are currently 76% of LADWP's generation. The mayor admitted that meeting this goal will mean higher electricity rates for LADWP customers. "The rates are going to go up," said Deputy Mayor David Freeman, who ~~ previously headed LADWP, to Reuters. There is no way you can bring in renewable energy and not have some rate impact when you replace coal. But the value to society, even aside from global warming, is going to be positive." Critics of the plan worry that ratepayers will face major rate increases if LADWP breaks from its Utah and Arizona coal plants, both of which deliver power at less than 5 cents per kWh. "We recognize that we have to do something because California utilities will not be allowed to build new coal plants or renew their contracts," said Jack Humpreville, a member of the LADWP Oversight Board, to the Daily Breeze. http://www.naylornetwork.com/app-ppw/printFriendly.asp?projID=3214 (14 of 21)7/28/2009 3:37:08 AM Public Power Weekly "The question is what can we do to protect ratepayers." Freeman said LADWP rates would remain competitive with Southern California Edison, which serves neighboring counties and the rest of Los Angeles County. The average LADWP rate today is 3.5 cents less than the SCE rate, he said. Freeman said dropping coal from the LADWP energy mix would be tempered by rises in coal power costs due to future regulations on carbon dioxide. "We are facing a day where [coal power] won't be available to us or the cost will be so high that it makes sense to invest in the renewable infrastructure," he said. -DAVID L. BLAYLOCK FfJR THE REC{JRD We are using this section to share feedback from our readers. The following is a response to an article in the July ?U Public Power Dcrily (see story in this week's Public Power Weekly) that reported on remarks made by Sen. John Kerry, D-Mass., about the possibility of China accepting limits on carbon emissions. -editors I read Senator's Kerry's statement on climate change legislation ("If we move, China and the rest of the world will have to move. ") to be either naive or disingenuous. Both readings are alarming. However, if that belief is honestly held, I ask that Senator Kerry and others who share the belief consider the following modest proposal: Make the effective date and enforceability of any U.S. legislation on climate change contingent upon countries such as China and India enacting and enforcing similar restrictions on carbon dioxide. By making the legislation conditional, the United States can still be a leader without risking our economy upon predictions about the behavior of other countries. Raymond A. Hayward Executive Director and CEO Southern Minnesota Municipal Power Agency PEOPLE The Obama administration named Indiana Municipal Power Agency Manager http://www.naylornetwork.com/app-ppw/printFriendly.asp?projID=3214 (IS of21)7/28/2009 3:37:08 AM Public Power Weekly of Economic Development and Member Service Philip Lehmkuhler as state director for rural development in Indiana for the Department of Agriculture. He has been with IMPA since 2005. Power Management Manager Ted Coates will serve as the new superintendent of Tacoma, Wash., Power. He succeeds Gary Armfield, who will retire on July 31. Coates spent 25 years at Seattle City Light before moving to Tacoma. Director of Electric Utility Charles R. Burgett retired from the city of Edmond, Okla., after 17 years with the utility. The Sacramento, Calif., Municipal Utility District named Paul Lau assistant general manager of customer, distribution and technology. Lau has worked at SMUD for over 25 years in the distribution services and customer services departments. He most recently worked as deputy assistant manager of customer, distribution and operations. Joe Prazen retired from the position of electric superintendent of Peru, Ill. Jim Potthoff, formerly foreman, will take over as electric superintendent. Members of the Florida Municipal Electric Association elected Kissimmee Utility Authority vice president and general counsel Arthur J. Lacerte Jr. as secretary-treasurer of the association's board of directors. Lacerte has more than 18 years of experience in public utility, regulatory and legislative practice, including serving as attorney adviser to the Federal Energy Regulatory Commission. The Florida Municipal Power Agency re-elected Thomas W. Richards, director of electric and gas systems for Fort Pierce Utilities Authority, as FMPA's executive committee chairman for 2009-2010 and elected Vince R. Ruano, city manager of Bushnell, as chairman of the board of directors. Two senior executives from Snohomish County, Wash., Public Utility District have been elected to advisory roles to help shape policies for national energy organizations. Craig Smith, assistant general manager of customer and corporate services, has been elected to a program advisory committee for the Consortium for Energy Efficiency. Jessica Matlock, government relations director, will serve on an advisory board for the National Hydropower Association. Meghan McLaughlin was hired as grass roots coordinator for the APPA government relations department. She previously worked for Seattle City Light as strategic adviser to the superintendent. APPA welcomed a number of interns this summer. JD Lavallee, a media studies major from Gordon College in Wenham, Mass., joined the publishing http://www.naylornetwork.com/app-ppw/printFriendly.asp?projID=3214 (16 of 21)7/28/2009 3:37:08 AM Public Power Weekly department; Brendan Heath, a politics major at Princeton University in Princeton, N.J., joined the information services department; Nana-Akua Adam-Bawuah, an accounting major at Coppin State University in Baltimore, Md., joined the finance and human resources departments; and Michelle Klassen, an economics major from Virginia Tech in Blacksburg, Va., joined the government relations and economics and research departments. -DAVID L. BLAYLOCK Engineering General manager-The Board of Public Works in Hannibal, Mo., seeks a general Energy services system manager for the electric, water and engineer-City of Monroe - wastewater utility. Complete job Perform intermediate description and application may be professional and responsible obtained from Web site at w~vw. administrative work hannibalbpw.org. Send resume to 'obslii~ coordinating and participating hannibalbpw.o~ or mail to Board of Public in the design, maintenance, Works, Human Resources Department P. operation and future planning of a variety of public utility , O, Box 1589, Hannibal, MO 63401-6049. facilities. For details and to The Board of Public Works is an equal apply, go to www monroenc opportunity employer. Applications . . accepted until Aug. 31. org and click on "Employment Link." Electric program supervisor, energy management-The city of Redding Energy Delivery Engineering Electric Utility is seeking a qualified and Director-Seattle City Light is motivated individual who, under the conducting a national search general direction of the electric manager, for the position of energy will provide supervision and leadership for delivery engineering director. the functions within the Electric Utility Ideal candidates will be highly Power Operations Group encompassing skilled electrical engineers with power prescheduling, real-time scheduling, successful track records energy trading, and the reconciliation of managing energy delivery for completed energy-related transactions. large and complex public or Interested individuals must submit a city of private utilities. The next Redding employment application to the energy delivery engineering Personnel Department by the closing date director must have strong and time in order to be considered. leadership and interpersonal Postmarks may not be accepted. skills with a broad background Applications received after the closing date http://www.naylornetwork.com/app-ppw/printFriendly.asp?projlD=3214 (17 of 21)7/28/2009 3:37:08 AM Public Power Weekly in transmission and distribution may be rejected. To obtain an application lines and substation design and complete job announcement, please engineering, including support call 530/225-4069 or download from our for the utility's systems Web site at www.ci.reddin~.ca.us. Apply operations. Requires a by 4 p.m. July 31. EOE/FAAE. bachelor's degree in electrical engineering and valid registration as licensed Meterin professional engineer with ability to obtain a Washington Journeyman meterman-Mason County state professional engineering pUD No. 3, located in Shelton, Wash., has license within one year. A an immediate opening for a journeyman master's degree or specialized meterman. Qualifications include a high education in power generation school diploma or equivalent; must have technology or other advanced completed a recognized apprentice degree will be considered a meterman program and hold an official plus. This position requires journeyman meterman card or its minimum of 10 years equivalent; must have or be able to obtain a substantial management and valid Washington state driver's license leadership experience in within six months of hire; must have a engineering and public thorough knowledge of electrical and administration gained through electronic metering principles gained progressively responsible through formal education and/or practical assignments. Seven years as experience; and must have the physical manager or supervisor in large, ability to perform the essential duties complex, multicultural and required of a j ourneyman meterman. diverse organization preferred. Current rate of pay: $33.73 per hour. Involvement with hydroelectric Individuals interested in applying for this generation facility will be position, please complete a Mason County considered a plus but is not pUD No. 3 application and submit to required. Salary range up to Human Resources, P.O. Box 2148, $208,925 with outstanding Shelton, WA 98584, e-mail to benefits package. Placement thedraf(~%masonpud3.or~ or send via fax to within stated range based upon 360/426-8547. Applications may be the selected candidate's obtained at PUD offices in Shelton and experience and salary history. Belfair or online at www.masonpud3.or~. This position is open until position will remain open until filled. filled; however, first review of resumes will begin the week of Aug. 17.Only the most highly products & Services qualified candidates will be presented. Confidential FTTP Triple Play Software Solutions- inquiries encouraged to Robert For utilities offering Cable TV and Internet Burg at 916/ 630-4900. services or Triple-Play with FTTP. ETI Interested candidates can provides software for customer care, http://www.naylornetwork.com/app-ppw/printFriendly.asp?projlD=3214 (18 of 21)7/28/2009 3:37:08 AM Public Power Weekly download a detailed brochure or apply online at www. ralphandersen.com. Management Assistant general manager- The Clarksville, Ark., Light & Water Commission is accepting resumes for the position of assistant general manager until close of business Aug. 21. Salary DOQ, plus excellent benefits. This position promotes to general manager upon retirement of current manager. Reports to general manager and is responsible for running utility in the absence of general manager. The utility consists of 50-megawatt peak electric system, 12-MGD water treatment facility and 2-MGD waste water treatment. The utility is owned by the city of Clarksville and is operated by a five-member utility commission. There are 74 employees and the annual budget is in excess of $25 million. Clarksville is situated in the Arkansas River Valley between Little Rock and Fort Smith. Minimum qualifications are afour-year college degree in business administration, electric engineering, civil engineering or related field, plus 10 years experience in upper management of operation of an electric distribution utility. Experience managing a water or waste water utility is helpful. Successful candidate billing, community access and local ad insertion. ETI provisions television, telephone and high-speed access with all major manufacturers. Call Sabrina Porter at 800/332-1078 ext. 301, or e-mail sporter(i% etisoftware.com. http://www.naylornetwork.com/app-ppw/printFriendly.asp?projlD=3214 (19 of 21)7/28/2009 3:37:08 AM Public Power Weekly would ultimately have to obtain an Arkansas Health Department Grade 4 water operators license and live in the city of Clarksville. Candidate must submit to a drug test and criminal background check. Clarksville is a drug-free workplace and an equal opportunity employer. Resumes should be mailed to: Clarksville Light & Water Co., P.O. Box 1807, Clarksville, AR 72830, ATTN: Hugh Harrison. Check out APPA's new career services on the Web Visit the Career Center of A:PPAnet.or> or Careersinpublicpower.com and take advantage of APPA's new recruiting services for 2009. Our Career Center now allows job seekers to upload resumes-and recruiters to obtain resumes from job seekers. Employers can create employer accounts and will find the ad placement process much faster. APPA members can post online ads for $175 fora 30-day posting or $225 fora 60-day posting (rates are $275 and $325, respectively, for nonmembers). Ads in Public Power Weekly cost 70 cents per word for members and 80 cents per word for nonmembers. Job posting subscriptions are available in packages of five or 10-or unlimited for a full year. If you have questions about classified ads in Public Power Weekly, APPAnet.or~ or Careersinpublicpower.com, write or call David L. Blaylock, DBlaylock(c .APPAnet.org or 202/467-2946. Event Calendar http://www.naylornetwork.com/app-ppw/printFriendly.asp?projID=3214 (20 of 21)7/28/2009 3:37:08 AM Public Power Weekly 2009 Customer Connections Conference Business and Financial Conference Oct. 25 - 28 Sept. 13 - 16 Colorado Springs, Colo. Savannah, Ga. Re" i Contact: LeAnne Nienhuis lnienhuis iaAPPAnet.org Fall Education Institute 202/467-2973 Nov. 2 - 6 12e_gister Savannah, Ga. Leal Seminar 2010 Oct. 11 - 14 Savannah, Ga. Legislative Rally Re I~•ster Feb. 22 - 25 Washington, D.C. Constructing, Operating and Maintaining Underground CEO Roundtable Distribution Systems Course March 14 - 16 Oct. 19 - 22 Phoenix, Ariz. Braintree, Mass. For a full APPA Events Calendar, visit APP.q net. ord. http://www.naylornetwork.com/app-ppw/printFriendly.asp?projID=3214 (21 of 21)7/28/2009 3:37:08 AM J Elk River -~ Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 Aug 7, 2009 To: Elk River Municipal Utilities commission John Dietz Jerry Gumphrey Daryl Thompson From: Theresa Slominski Re: Staff Update -Office Phone: 763.441.2020 Fax: 763.441.8099 The PCA accumulated charges from Connexus are $209,641.94. A spreadsheet showing their accumulations is attached. (July's PCA number we have not yet been invoiced for, but we have been given notification of the dollar amount we will be invoiced for.) I have also included the PCAs from 2008 for reference. GRE's dispatch office currently answers phones for us during the hours when we are not open, 4:30pm to 8:OOam, and we roll the phones to their dispatch office to handle this. During business hours, office staff will answer phones and assist walk-in customers at the counter. The only time office staff currently meets as a group is the morning following the commission meetings for an update. At these meetings, we have someone from the plant come down and help answer phones and help assist the walk-in customers (and usually office staff is still pulled from the meeting to help at some point.) We have tried to discuss office items at the end of these meetings, as much as time would allow. Staff needs to meet more regularly than this, with time and an agenda that allows us to discuss office items. In order to have a meeting with staff in the office where everyone can participate, I have worked out an arrangement with GRE to roll the phones forward on Thursday mornings at 8:30 instead of 8:00. GRE will take messages for us to follow up on, or if the customer prefers, they may call back at 8:30. We will still have to accommodate walk-in customers, but it will be a better scenario than what we currently have. I am sure that you can appreciate the need for staff to meet, and I feel this is an adequate compromise to still have a live person answer the phone to assist our customers. POWER COST ADJUSTMENT WORKSHEET I (Coll from)/Ref to ' 'Collected from/ customers less 2009 I Connexus (Refunded to) I Connexus chg Power Bill i Customers Balance Balance Forward - - -- - _ . - __ _ .._. --- - I- - --- --- _ ------- did not bring 2008 PCAs $184,898 forward _ --- January-09 0 --- February-08 demand 4,873.11 _ _- energy 15,821.19 -- ____ _ March-09 demand 37,699.55 _ - _ _ _ _ __ - energy_ (31,530.72). -- _ April-09 demand 18,111.05 -- energy 27,789.88 May-09 demand - -- 28,631.37 _ - --- - -_ _ - energy _ _ 89,335.01 - June-09 demand 37,281.53 , _ _' _ -- _ _energy__, (67,924.06) __ _ __ _ July-09 demand 49,554.03 energy __ _ _ _ _ August-09, demand _._ _ energy ____ __- September-09~ - demand : energy _ _ _ _ _ _. October-09 demand energy __ - -._ November-09 _ _ _ demand energy _ _ December-09 demand energy 209,641.94. - (209,641.94) (0.010)imils Page 1 POWER COST ADJUSTMENT WORKSHEET (Coll from)/Ref to Collected from/ customers less 2008 Connexus (Refunded to) Connexus chg _ Power Bill Customers Balance Balance Forward (199,903.86) (151,789.58)1 48,114.28 --- - January-08 _ _ ___ _ - __ - __ February-08 (2,077.40) _ _ - 118,392.92 - - March-08 (176.27) 69,663.84 - '4 mils -_ 180,165.08 -- - -_ _ April-08 77,357.14. 121,631.42 'J 4 mils i- --- 2,954.29 i - - -- __ May-08 61,849.54 111,566.24 ' 7.4 mils _ I 4,77 4.33 June-08 . - 90,652.66 _ 5.0 mils July-08 - - _ _ August-08 _- - -- 14,662.03 10,734.65 September-08 84,004.44 62,580.35 ' 3 mils October-08 103,574.39 53,415.81 ; 3 mils November-08 59584.1 89,419.93 5 mils 46,077.23 - _ _ _ _____ _ December-08 205,006.86 134,940.55 '~8 mils 766,979.47 - 582,081.22 (184,898.25) (0.009)jmils Page 1 Elk River .:~ Municipal Utilities Memorandum To: Elk River Utilities Commission Jahn Dietz J~'ry Ginnphrey Daryl TIlOIll~1 From: David Berg Date: 8/11/2009 Subject: Tower Antenna Rental Contract Details 1) Contract Provisions a) The Water Tower Antenna Rental Contract is currently being finalized by Peter Beck. We will not allow adjacent buildings to be erected to support antenna technology. Renters must house their equipment within the base of the water tower. Proper locks will be installed to prohibit access from unauthorized personnel entry. Elk River ,~ Municipal Utilities Memorandum To: Elk River Utilities Commission John Dietz Jeny~brey n~y~l~ny~n~ From: David Berg Date: 8/11/2009 Subject: Jackson Street Well House Removal Update 1) Well House a) The Jackson Street well house has been removed. The foundation will be removed with help from the City Streets Division. Elk River Municipal Utilities Memorandum To: Elk River Utilities Commission John Dietz Jen3'~'e3' ~~~ From: David Berg Date: 8/11/2009 Subject: SMART Irrigation Field Day Follow-Up 1) Field Day Events a) Associations were invited to view a SMART Irrigation audit. Sherburne County Soil & Water hosted the event with ERMU's water department. It took take place August 1S`, 2009 from 9:OOam-12:OOpm. The host site was Meadowvale Townhome Association. Great Northern Landscapes performed the audit presentation. Not many attended, but the information that was learned was extremely valuable. Those that attended realized how important an audit and proper system technology is to water conservation, which saves the customer a lot of money. Word is getting out to associations & they are starting to see the SMART controllers as beneficial. Several associations are planning to install their SMART controllers shortly. The associations who attended will be good advocates to this new technology & rebate program. 2) Items Checked For Audit a) Sprinkler heads i. Flow per head & direction - ii. Set to soiUvegetation type iii. Not sprinkling cementlsevere overlap, angles b) Control Settings i. Daily time restrictions set ii. Zone soil types set iii. ET transmission iv. Rain sensor working 3) Other Issue i. Consideration needs to be given to exempting SMART controllers from the odd-even watering restrictions. Elk River -=~ Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 August 5, 2009 TO: Elk River Utilities Commission John Dietz Jerry Gumphrey Dazyl Thompson FROM: Mazk Fuchs SUBJECT: Staff Update -Electric Department The following is a summary of projects and/or updates over the past several weeks: Phone: ?63.441.2020 Fax: 763.441.8099 1. Changed out a 3-phase transformer that was leaking at the Super America gas station at Highway 169 and 193`d Avenue. 2. Finished 191 %2 Avenue cable replacement job. 3. Started Simonet Drive rebuild. 4. Two underground house services went bad and were repaired. 5. A caz hit a pole on County Road 42 south of Highway 101; had to replace the pole. 6. Continued working on 193`d Avenue road job. 7. Continued working on County Road 1 feeder. 8. Installed two new electric services. 9. Getting area 23 taps ready to rebuild. We will be doing most of this work ourselves. We aze going to try out a pneumatic piercing tool to push driveways but may have to use a contractor for some of the pushes. 10. We have been doing some reorganizing of our inventory. We are selling items that we no longer use but aze in good condition. Other items will get us junk price 11. Continued changing out fuse pads. All have been completed on Otsego. Elk River Municipal Utilities 13069 Orono Parkway . P.O. Box 430 Phone: 763.441.2020 Elk River, MN 55330-0430 Fax: 763.441.8099 TO: Elk River Utilities Commission John Dietz Jerry Gumphrey Daryl Thompson FROM: Wade Lovelette SUBJ: Staff Update -Technical Services Department The following is a summary of projects and/or updates over the past several weeks: The Locating Department had a total of 2701ocate tickets for July. Some of them are meets which require several trips back to the same area as needed to mark utilities. 2. The Metering Department continues with weekly and monthly substation checks, changing out meters to the radio read meters, and doing the monthly power bill. 3. The Security Systems Department had a total of 67 phone contacts, 16 personal visits, 16 systems quoted, 18 sales made, 15 installs completed and 18 service calls for the month of July. Another great month! 4. Mapbooks continue to be updated daily as crews add or change something in them. 5. Power Plant staff has performed the monthly run of the generators and everything looked good. Steve Ziemer has been manufacturing some equipment for the wire and material in the shop to help straighten out the inventory. He also has been helping the Water Department on a couple of different projects.