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Public Utilities 2012/10/24CITY OF ANAHEIM PUBLIC UTILITIES BOARD MINUTES October 24, 2012 The agenda having been posted on Thursday, October 18, 2012, the Regular Meeting of the Public Utilities Board (Board) was called to order by Chairperson Jordan Brandman at 5:00 p.m. on Wednesday, October 24, 2012, in the 11 m Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, California. Board Members Present: J. Brandman, D. Morgan, J. Machiaverna, P. Carroll, C. Peltzer, B. Hernandez, S.E. Faessel Board Members Absent: None Staff Present: M. Edwards, D. Calkins, D. Lee, G. Bowen, B. Beelner, A. Kott J. Lehman, L. Quiambao, P. Oviedo, J. Coe, J. Wei, R. Shintaku, J. Motsick Guest(s) Present: D. Wain, Resident & Chairperson of the East District Neighborhood Council AGENDA ITEM 1. PUBLIC COMMENTS. No Public Comments. 2. APPROVAL OF THE MINUTES OF THE REGULAR PUBLIC UTILITIES BOARD MEETING OF SEPTEMBER 26, 2012. * 3. PRESENTATION ON PLUG -IN ELECTRIC VEHICLE READINESS UPDATE. J. Wei, Electric System Planning Manager, presented an update on Plug -in Electric Vehicle (PEV) Readiness. The focus of the presentation was to provide background on PEV technology, market projections, and to describe Anaheim's possible go- forward strategy. ACTION TAKEN J. Brandman closed the public comments portion of the meeting. B. Hernandez moved approval of the September 26, 2012, Public Utilities Board Minutes. S.E. Faessel seconded the motion. MOTION CARRIED: 7 -0 ABSTAINED: 0 ABSENT:O 54 4. APPROVAL OF AN AMENDMENT TO THE AURORAxmp D. Morgan moved approval SOFTWARE LICENSE AGREEMENT BETWEEN THE CITY of an Amendment to the OF ANAHEIM AND EPIS, INC. FOR PRODUCTION COST AURORAxmp Software MODELING. * license agreement between the City of Anaheim and The written, publicly available staff report detailing the item was Epis, Inc. for production cost verbally summarized by staff. modeling. J. Machiaverna seconded the motion. MOTION CARRIED: 7 -0 ABSTAINED: 0 ABSENT:O S. APPROVAL OF AMENDED AND RESTATED PURCHASE D. Morgan moved approval ORDER BETWEEN THE CITY OF ANAHEIM AND THE of an Amended and Restated METROPOLITAN WATER DISTRICT FOR SYSTEM WATER Purchase Order between the PURCHASES. * City of Anaheim and the Metropolitan Water District The written, publicly available staff report detailing the item was for System Water Purchases. verbally summarized by staff. C. Peltzer seconded the motion. MOTION CARRIED: 7 -0 ABSTAINED: 0 ABSENT :O 6. UPDATE ON WATER SYSTEM ISSUES D. Calkins, AGM of Water Services, shared with the Board that, although it is still early, several forecasters are predicting this winter in Southern California will have near normal levels of precipitation. Earlier, there were reports of an El Nino condition forming in the Pacific Ocean — which can contribute to a wet winter — but that condition has weakened over the last month or so. D. Calkins also shared, that early indications are that Northern California may have a winter that is somewhat drier than normal. However, it is still early and conditions may change. Monthly updates on winter precipitation and the water supply outlook will be provided to the Board as the winter progresses. 7. UPDATE ON ELECTRIC SYSTEM ISSUES D. Lee, AGM of Electric Services, shared information on two quarterly updates. The first report includes a detailed summary of the equipment purchases, construction contracts, and consulting projects. The second report includes maps of electric and water projects in various stages of design and construction. D. Lee also showed pictures from Public Power Week that included bucket truck rides, energy efficiency information, and electric vehicles on display for residents at the Downtown farmer's Market. Students from Salk Elementary, Maxwell Elementary, and Sycamore Junior High School participated. The plug -in electric vehicles included a Tesla Roadster, Fisker Karma, Chevy Volt, and Toyota Prius. 55 8. UPDATE ON FINANCE ISSUES B. Beelner, Acting AGM of Finance and Administration, invited the Board's attention to the September Financial Dashboard and shared that year -to -date through September, electric revenues of $112.1 million were $14.0 million over budget or approximately 14.3 %. Retail revenues were over budget by $4.0 million or 4.4 %, due to a significantly warmer than normal summer. Electric expenses, year to date through September, were $91.4 million, and were $4.4 million over budget or approximately 5.1 %. The primary reason for the over - budget condition was the need to purchase more power than expected due to higher retail demands than originally anticipated. B. Beelner then invited the Board's attention to the Water portion of the Dashboard, which showed year to date revenues through September of $18.1 million, which were $1.2 million over budget or approximately 7.1% due to warmer temperatures during that period. Water expenses for the same period of $13.2 million, which matched the budget for the year to date. 9. UPDATE ON JOINT SERVICES ISSUES G. Bowen, Acting AGM of Joint Services, shared three items with the Board, the first pertaining to a request by a Board member for more detailed information with respect to Canyon Power Plant (CPP) cost savings. G. Bowen shared that over the course of 2012, CPP ran 2000 hours and produced 82 GWHrs of electricity. Energy sales for Canyon totaled $1.6 million and $13.1 million in capacity revenue for the year. To date, CPP has saved $14.7 million over what would have otherwise had to be spent to serve electric ratepayers. When compared to the overall annual debt service on the plant, CPP has saved just over $400,000 for 2012 and is projected to save $4 million over the next four years. G. Bowen then shared information on the Olinda Landfill Gas to Energy Facility Ground Breaking Ceremony, held on October 19th, 2012, at the Olinda Landfill site in Brea, California. This is a renewable facility that uses landfill gas as the fuel source. Anaheim will take approximately 28 MW output of the facility and use it towards its Renewable Portfolio Standard (RPS) Plan to achieve 33 % renewable electricity serving its retail customers by 2020. The facility is expected to come on line at the end of October. Anaheim was represented by Board Members Charles Peltzer, Pat Carroll, and Chair - Jordan Brandman. In closing, G. Bowen shared with the Board that there is no new news on Cap- and - Trade. The November 14th date for the first auction is still moving forward. As a precautionary measure, the Department will not participate in the first auction, but will instead monitor the auction outcome before committing to any level of participation in future auctions. In December, the Department will present a more detailed report on the status of Cap - and - Trade, once it has had a chance to analyze the results of the auction. 56 10. UPDATE OF ENERGY RISK & LEGISLATIVE / REGULATORY AFFAIRS ISSUES J. Lehman, Chief Risk Officer, provided an update on both the Department's compliance related activities and legislative activities. In regard to the Department's compliance activities, she stated that the Quarterly Internal Compliance Report had been provided to the Board at their place settings and that for the reporting quarter, the Department was in compliance with the applicable regulations. In conclusion, she stated that next month the quarterly status report on Anaheim Public Utilities Energy Risk Management activities would be provided to the Board. 11. AGENDA ITEM(S) FOR THE NEXT PUBLIC UTILITIES BOARD MEETING ON NOVEMBER 14,2012: Approval of Amended & Reinstated Transmission Control Agreement with CAISO. * 12. ITEM(S) BY SECRETARY None. 13. ITEM(S) BY BOARD MEMBERS J. Machiaverna said it was a great meeting, and commented that because there are so many things out there that we don't know what's going to happen; hopefully after the election, the government, in general, will pull back a little bit. It will be interesting to see what will happen at the end of the year. B. Hernandez inquired about an article he read in the paper about Anaheim having a street car. He also asked about the type of power will be used for the street cars and the route foot print. D. Morgan would like the Public Works Department to brief the Board at some point in the future regarding the plan for Anaheim Rapid Connection (ARC). S.E. Faessel shared that while going through the Quarterly Capital Improvement Projects report, she noted that it is remarkable how busy the Department is with all the capital outlays and quick deployment as things need to be repaired. She further indicated that is amazing how many projects there are City -wide, and expressed kudos to the Department for thinking ahead about the PEVs and the new technology. C. Peltzer added to the ARC discussion, asking if the dedication of buses, for the same route, would have the same effectiveness. He also asked for clarification about the conversion method for charges on the electric vehicles. A presentation will be provided to the Board at a future meeting by Public Works Department regarding ARC. 57 P. Carroll shared that during Public Power Week, he gained more information about the electric vehicles. He also suggested that a presentation revisiting the Brea Power Plant to get an overview and how much energy Anaheim is getting and what we are paying for to obtain more information as it relates to energy and what Anaheim is paying for would be helpful and interesting. He also inquired about the percentage of dead lawns he's seen around the City and wondered if they are affecting water sales. J. Brandman shared that the Dedication of the Olinda Landfill site in Brea, California, was a great ceremony; he spent some time with Chairman Moorlach and expressed his opinion that Anaheim would like to have more such power plants. 14. ADJOURNMENT: (TO THE REGULAR MEETING ON NOVEMBER 14, 2012 AT 5 :00 P.M., IN THE 11 FLOOR LARGE CONFERENCE ROOM, ANAHEIM WEST TOWER, 201 S. ANAHEIM BOULEVARD, ANAHEIM, CALIFORNIA). Respectfully s tted, WLOP Marcie L. Edwards Secretary, Public Utilities Board J. Machiaverna moved to adjourn the Regular Meeting at 6:14 p.m. to the Board's next meeting date of November 14, 2012 at 5:00 p.m. P. Carroll seconded the motion. MOTION CARRIED: 7 -0 ABSTAINED: 0 ABSENT:O * Indicates item(s) that will be forwarded to City Council for action upon recommendation by the Board. ** Indicates item(s) that will be forwarded to City Clerk and City Council for informational purposes. 'M