Public Utilities 2015/08/26August 26, 2015
The agenda having been posted on Wednesday, August 19, 2015, the Regular Meeting of the Public Utilities
Board (Board) was called to order by Chair J. Machiaverna at 5:02 p.m. on Wednesday, August 26, 2015, in the
11`" Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, California.
Board Members Present: Chair J. Machiaverna, Vice Chair S.E. Faessel, B. Hernandez,
D. Wain, L. Cahill, A. Abdulrahman
Board Members Absent: None (one vacancy)
Staff Present: D. Lee, B. Beelner, J. Wei, M. Moore, C. Cuss, J. Lehman, A. Kott,
L. Quiambao, P. Oviedo, M. Scifen, R. Gomez, M. Lopez, C. Dalton,
A. Nguyen, L. Davis, C. Thompson, A. Mezzacappa
Guest(s) Present: None
2. APPROVAL OF THE MINUTES OF THE REGULAR
MEETING / PUBLIC HEARING OF THE PUBLIC UTILITIES
BOARD MEETING OF JULY 22,201-5. *
It was suggested that the unapproved Minutes be amended to insert
"Anaheim's" in front of Metropolitan Water District Director.
3. HANNUM SUBSTATION TRANSFORMER REPLACEMENT
PRESENTATION.
L. Davis, Substation Engineering Manager, shared a presentation with
the Board regarding the Hannuin Substation Transformer
Replacement Project that was recently completed. This project is part
of the Public Utilities Department (Department) ongoing Substation
Equipment Replacement Program that prioritizes transformer
replacements based on age, maintenance history, capacity, reliability
considerations, and budget allocation.
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There being no public
comments, Chair J.
Machiaverna closed the public
comments portion of the
meeting.
L. Cahill moved approval of
the amended Minutes of the
amended Regular Meeting /
Public Hearing of the Public
Utilities Board Meeting of July
22, 2015. S.E.Faessel
seconded the motion, with the
amendment as noted,
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 0.
AGEND,AITEM ACTION TAKEN
This project replaced a 32 -year-old substation transformer at Hannum
Substation. The project took 1.8 months to complete at a cost of $2.3
million. The new substation transformer is a larger transformer with
more capacity to accommodate future load growth. The new
transformer is equipped with controls that automatically adjust
voltage to improve power quality. A new steel structure and
foundation with integrated oil -containment system was installed as
part of this project.
C. Dalton, Revenue Protection Coordinator, shared a presentation
with the Board on the importance of Revenue Protection. He
highlighted the Fiscal Year 2014-2015 accomplishments, which
included projected savings of over $1.8 million for the
Department. He showed a variety of diversions that had been
discovered by the Revenue Protection Coordinators and corrected
through investigation efforts, C. Dalton concluded by sharing how
Revenue Protection has expanded its responsibilities into
collaborating with other City of Anaheim (City) departments to shut
down illegal businesses, including medical marijuana dispensaries,
online gambling, and unpermitted massage businesses throughout the
City.
Board Member Hernandez complimented the Revenue Protection
program, acknowledging the importance of billing customers
correctly for their water and electricity usage.
Following the presentation, D. Lee recognized R. Gomez, Utility
Services Super -visor and C. Dalton for their contributions in the
Customer Information System replacement prcject,
D. Lee shared an overview of the biannual success indicators with
the Board. fie shared updates with the Board on the Department"s
overall performance, including customer service, finances, reliability
and safety metrics. The high level indicators provide an overview of
the Department's performance in key areas over the past six months,
APPROVAL OF THE CERTIFICATION AND COMPLIANCE B. Hernandez moved approval
FILING FOR THE BOWr ERMAN POWER LFG, LLC
of the Certification and
LANDFILL GAS RENEWABLE POWER PURCHASE AND
Compliance Filing for the
SALE AGREEMENT.
Bowerman Power LFG, LLC
Landfill Gas Renewable Power
C. (hiss, Acting AGM - Power Supply, shared with the Board that
Purchase and Sale Agreement.
while the Board and City Council previously approved the Renewable
D. Wain seconded the motion.
Power Purchase and Sale Agreement with the Bowerman Power
MOTION CARRIED: 6-0.
Project, state certification is still required. The compliance filing is a
ABSTAINED: 0.
procedural requirement and does not affect project pricing.
ABSENT: 0.
AGENDAITEM ACTION TAKEN
7. APPROVAL OF A SECOND AMENDMENT TO THE LONG-
L. Cahill moved approval of a
TERM POWER PURCHASE AGREEMENT (WIND POWER)
Second Amendment to the
DATED AUGUST 11, 2003 BETWEEN THE CITY OF
Long -Term Power Purchase
ANAHEIM AND IBE ROLA RENEWABLES, LLC,
Agreement (Wind Power)
FORMERLY KNOWN AS PPM ENERGY, INC. AND
dated August 11, 2003 between
IBERDROLA RENEWABLES, INC.*
the City of Anaheim and
C. Guss shared that Department receives 6 MW of power from a
Iberdrola Renewables, LLC,
wind farm in Solano County California, owned and operated by
formally known as PPM
Iberdrola Renewables, which began commercial operation in 2003.
Energy, Inc. and Iberdrola
The Department has been purchasing renewable energy frorn the
Renewables, Inc.
project since its commercial operation completion.
B. Hernandez seconded the
regulations. C. Guss shared that over the years, not only has the
motion.
This agreement was originally approved by City Council on July 8,
MOTION CARRIED: 6-0.
2003 and is being amended to allow Iberdrola ability to curtail power
ABSTAINED:O.
from the project when there is excess power on the grid caused by
ABSENT. 0.
intermittent resources, in order to maintain grid reliability.
S. APPROVAL OF THE AUTHORIZATION TO PREPARE,
D. Wain moved approval of the
CERTIFY, EXECUTE, AND SUBMIT CALIFORNIA ENERGY
Authorization to Prepare,
COMMISSION REPORT FORM 1386 FOR WIND
Certify, Execute, and Submit
GENERATING FACILITIES AND UTILITY COMPLIANCE
California Energy Commission
SUBMITTALS.
Report Form 1386 For Wind
C. Guss shared with the Board that each year the Department is
Generating Facilities and
C. Guss explained that the Department is seeking authority to submit
Utility Compliance submittals.
routine compliance reports to federal, state and regional agencies. He
A. Abdulrahman seconded the
shared that electric and water utilities must validate compliance and
motion.
report on energy efficiency, greenhouse gas, power plant emissions,
MOTION CARRIED: 6-0.
drinking water quality, recycled water, and drought response
ABSTAINED: 0.
regulations. C. Guss shared that over the years, not only has the
ABSENT: 0.
volume and complexity of reports increased, the procedures change
periodically, and tirneframes have been compressed with electronic
submittals. This authorization will provide further assurance that
deadlines continue to be met and compliance penalties for late report
submittals are avoided.
ENERGY COMMISSION OF THE ANNUAL POWER
of the Submission to the
CONTENT LABEL, ENERGY SUPPLYRE, PORTS AND
California Energy Commission
ATTESTATIONS IN ACCORDANCE WITH ASSBEMBLY
of the Annual Power Content
BILL 162.
Label, Energy Supply Reports
and Attestations in accordance
C. Guss shared with the Board that each year the Department is
with Assembly Bill 161
required by the California Energy Commission (CEC) to report data
L. Cahill seconded the motion.
on energy sales to retail customers by resource and fuel type. The
MOTION CARRIED: 6-0.
reports presented to the Board for consideration provide the CEC and
ABSTAINED: 0.
Anaheim customers, a snapshot of the resources within our generation
ABSENT: O.
portfolio supplying their energy needs.
C. Guss shared that the Department remains in compliance with
California's Renewable Portfolio Standard, and is incrementally
investing in renewable projects that are in-state, and will continue to
seek cost-effective projects to meet the needs of Anaheim residents
and businesses.
2015 -50
M. Moore, AGM -Water Services, shared with the Board that the
Metropolitan Water District (MWD) shared that due to high levels of
rainfall in May, shortage conditions will not go into effect, and MVVD
will be able to deliver the full entitlement of the Colorado River
supply to its member agencies this year.
He also shared that water conservation in the City is achieving better
than anticipated results. Conservation for July was 32% and in
August is about 25%, which is above Anaheim's 20%
requirement. The Department is looking closely at the effect of the
lower water sales on the budget.
M. Moore also shared that the Walnut Canyon Reservoir (Reservoir)
water level is still at a lower level and that repairs to the Reservoir
slope drain is required. Be shared that the Reservoir is being lowered
to about 1/3 capacity, and is currently at about 1/2 capacity; however,
staff has temporarily stopped lowering the level to, make
modifications to the water treatment process. Once the Reservoir
reaches about 1/3 capacity, a contractor will begin the repairs, which
are anticipated to be completed iby the end of October, at which point
the Reservoir can then be filled back to non -nal levels,
J. Wei, Acting AGM - Electric Services, shared all update on the
recent heat wave with the Board. Overall, the electric system
pet -formed very well during the high temperatures over the mid-
August timeframe, The Department responded to four heat waves
related outages that affected only a small number of customers.
B. Beelner, AGM - Finance and Administration, invited the Board's
attention to the monthly dashboard in their packets. He shared that
both electric and water revenues were below budget for the month of
July., however, expenses were also below budget so that there was no
material impact to the Department's financial position due to the drop
in revenue, D. Lee highlighted that continued reduction in water
revenue will need to be addressed as the water division's financial
situation is not sustainable if the drought continues and customers
continue to conserve.
C. Cuss shared photos on the Bowerman Landfill Gas Project
(Project) in .Irvine with the Board. He shared that seven reciprocating
engines were delivered this month from Germany, and are being set
on their foundations. He indicated that the Bowerman Project is on
track for a January 2016 commercial operation date,
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In addition, C. Guss shared updates on two other renewable projects.
Those projects include the 4.5 Megawatt (MW) Anaergia project,
which is a trash to the renewable power project in Anaheim, and the 2
MW Westland solar project in Kings County. Anaergia is expected to
reach commercial operations in January 2018, while the Westlands
solar project is expected to be operational by June of 2016.
C. Guss invited the Board's attention to an article that appeared in the
Sunday, August 23rd edition of the Los Angeles Times regarding
Southern California Edison's (SCE) Big Creek Hydro
Electric/Pumped Storage Project in the Sierra Nevada mountain
range. During times of high energy demand, stored water can be
released to flow through turbines and generate electricity. In addition
to stockpiling clean renewable energy, pump storage projects can shift
between pumping and generating within minutes making them
extremely flexible resources and valuable tools for managing the
electric grid. However, pumped storage projects require water and,
due to the drought, SCE's Big Creek Hydroelectric project is in
danger of not being able to generate any electric4. As presented to
the Board in May, the California Independent System Operator
(CAISO) indicated in their 2015 Summer Assessment that, even under
extreme conditions, sufficient power supplies are available to, meet the
state's summer peak. Inaddition, there is minimal impact to the
Department as a result of Big Creek's lack of performance. At most,
the CAISO may call on gas units such as Canyon and Kraemer more
frequently.
The Department has coordinated with other City departments to
ensure they meet their water reduction goals. As an example, the
Community Services Department reduced their water consumption by
49% in June alone (as compared to the base case of June 2013), They
have achieved this through the replacement of old sprinkler systems
with drip irrigation systems, installation of drought tolerant
landscaping and by reducing their watering times to twice a week,
J. Lehman, Chief Risk Officer, shared that the Department -wide
annual drill for the Emergency Response Program (Program) is
scheduled for August 27, and invited Board members to observe the
event.
She shared several legislative issues, and highlighted that the PUB
Legislative Working Group met just prior to the meeting and
reviewed bills with the potential impact to the Department. She
mentioned that Friday, September I I th, would be the last day for a
bill to pass out of both houses.
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A 11110
�IIIYR 110
D. Lee mentioned the following upcoming agenda items:
0 Drought Update
0 Alternative Water Supplies
9 Department Finance
0 Public Power Week
01INT 111.1 1 V'N I I
D. Lee congratulated M. Moore on his promotion to AGM, Water
Services. He shared highlights from American Public Power
Association's annual statistics, including Anaheim's standing in
customers served and energy generated, He also shared upcoming
calendar items and requested the Board inform staff if they are
interested in attending any of the events. Lastly, lie shared that the
City website has been updated and showed the Board how to access
utility pages from the City homepage.
AB Abdulrahman thanked staff for the information provided in the
meeting.
D. Wain thanked staff for the information in the meeting, and stated
that he attended the water event where Felicia Marcus, Chair of State
Water Resources Control Board was the keynote speaker.
L. Cahill said the topics presented by staff were interesting.
B. Hernandez asked if there has been any resistance from Home
Owners Associations (HOA) regarding watering their landscaping.
Staff explained that a meeting has been held specifically for HLAs
and that there are ongoing discussions with individual HOA issues.
He also inquired about the open seat on the Board, and staff indicated
that the vacancy is agendized for the September 1,:2015 City Council
meeting.
S. E. Faessel congratulated M. Moore on his promotion to AGM -
Water. She shared that today's meeting was interesting and important
because of the information provided by staff regarding the substation
transformer project, the ability to recover revenue, and the bi- annual
success indicators.
J. Machiaverna congratulated M. Moore on his promotion. He
requested that thank you card be sent to D, Singer for her service on
the Board.
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2015, AT 5:00 P.M.,.IN THE I ITH FLOOR LARGE
CONFERENCE ROOM, ANAHEIM WEST TOWER, 201
ANAHE IM BOULEVARD, ANAHE IM, CALIFORNIA).
=0
Dukku Lee
Public LAilities General Manager
B. Hernandez moved to
adjourn the Regular Meeting at
6:52 p.m., to the Board's
Regular Meeting date of
September 23, 2015 at 5:00
p.m. S.E. Faessel seconded the
motion,
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 0.
Indicates item(s) that will, be forwarded to City Council for action upon recommendation by the Board.
Indicates items) that will be forwarded to City Clerk and City Council for informational purposes.
2015-54