Public Utilities 2022/01/26CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
January 26, 2022
The agenda having been posted on Thursday, January 20, 2022, the Regular Meeting / Public Hearings of
the Public Utilities Board (Board) was called to order by Chairperson J. Seymour at 5:00 p.m. on
Wednesday, January 26, 2022, in the Gordon Hoyt Conference Center, 2nd floor, Anaheim West Tower,
201 S. Anaheim Blvd., Anaheim, California.
Board Members Present: Chairperson J. Seymour, Vice -Chairperson V. Baroldi, A. Abdulrahman,
R. Gaona, N. Campos Kurtz, M. Lee
Board Members Absent: R. Bhalla
City Staff Present: D. Lee, P. Starr, B. Beelner, J. Lonneker, A. Kott, J. Lehman, M. Moore, M.
Avelino -Walker, A. Nguyen, T. Mardikian, D. Bailin, B. Iglesias, T. Del
Rio, N. Heidel, J. Castro, E. Ramirez
Guest(s) Present: Marvyn Lindsey - Resident, Hai Nguyen - Resident, Patricia Varga -
Resident, Christina Bautista - Resident, Dumitrii Lazuran - Resident, Lisa A.
Augustine - Court Reporter, CSR # 10419, Maria Villegas - Orange County
Translation & Interpretation Services
AGENDA ITEM ACTION TAKEN
Prior to the opening of the meeting, D. Lee, Public Utilities General
Manager, recognized Board Member R. Gaona for his service on the
Public Utilities Board. R. Gaona participated in Board recognitions of
students and schools, and supported projects and programs that benefit
the community. R. Gaona thanked fellow Board members and staff for
the recognition and stated that he appreciates his time on the Board.
1. PUBLIC COMMENTS.
2. APPROVAL OF THE MINUTES OF THE PUBLIC
UTILITIES BOARD REGULAR MEETING OF DECEMBER
15, 2021. *
There being no electronic or
oral public comments,
Chairperson J. Seymour
closed the non-public
hearing portion of the public
comments of the meeting.
R. Gaona, moved the
approval of the Minutes of
the Public Utilities Board
Regular Meeting of
December 15, 2021. N.
2022-1
Campos Kurtz seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1 [R. Bhalla].
3. PRESENTATION: THANKSGIVING DAY WINDSTORM
RESTORATION.
J. Lonneker, Assistant General Manager - Electric Services,
presented to the Board details of the Thanksgiving Day wind storm
that resulted in extensive damage to the electric infrastructure
causing the power outage on November 25, 2022. J. Lonneker
shared with the Board that although extensive permanent repairs
took 12 days to accomplish, power was restored to the majority of
customers the same day, which was further described by B. Iglesias,
Senior Utilities Systems Scheduler. The overall cost of the
extensive repairs was approximately $1.3M, including the use of
contractors and material support from Southern California Edison
(SCE). J. Lonneker invited key field staff to be recognized by the
Board for their outstanding efforts in the restoration and recovery
efforts of this major wind event.
The Board inquired about the frequency of pole inspections, and J.
Lonneker explained that visual inspections are conducted every five
years and intrusive inspections that test pole integrity are conducted
over 10 or 20 year cycles, depending on their last test results. The
Board inquired about making arrangements with SCE for future
mutual aid and staff explained that there is an agreement in place
for reimbursement of costs. J. Lonneker then shared with the Board
that it is also important for Anaheim Public Utilities (APU) to
participate in assisting other utilities when there are calls for mutual
aid.
4. PUBLIC HEARING: PROPOSED INCREASES TO THE
APU presented prepared
WATER COMMODITY ADJUSTMENT (W-CA) AND
testimony and oral
WATER SYSTEM RELIABILITY ADJUSTMENT (W-SRA)
testimony in support of its
RATES AND CORRESPONDING REVISIONS TO
proposed (1) water rate
SCHEDULES W-CA AND W-SRA OF THE WATER RATES,
increase to the Water
RULESAND REGULATIONS"; APPROVAL OF PROPOSED
Commodity Adjustment (W-
MODIFICATIONS TO RULE NO. 11(DISCONTINUANCE
CA) and Water System
AND RESTORATION OF SERVICE) OF THE WATER
Reliability Adjustment (W-
RATES, RULES AND REGULATIONS; AND
SRA) and (2) the proposed
DETERMINATION THAT THESE MODIFICATIONS ARE
modifications to Rule No.
EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL
11.
QUALITY ACT (CEQA) PURSUANT TO THE PUBLIC
RESOURCES CODE SECTION 21080(B)(8), AND SECTIONS
Upon the completion of the
15061(B)(3) AND 15273(A) OF TITLE 14 OF THE
testimony and public
CALIFORNIA CODE OF REGULATIONS. *
comments, Chairperson J.
Seymour entertained the
The Public Hearing was called to order by Chairperson J. Seymour.
following motion from A.
2022 - 2
Kott, who moved that all
B. Beelner, Assistant General Manager - Finance and Energy
evidence, oral and written,
Resources, presented oral testimony explaining that APU is
submitted by staff, including
proposing to increase the Water Commodity Adjustment (W-CA)
the Prepared Testimony with
and Water System Reliability Adjustment (W-SRA) of the Water
exhibits from B. Beelner;
Rates, Rules and Regulations. The rate proposal will help to recover
the Affidavits of Publication
increasing wholesale water costs, primarily driven by a decrease in
of the Notice of Public
the amount of groundwater and a corresponding increase in the
Hearing; the Certificate of
amount of imported water used to serve APU customers, and
Mailing; the written protests
provide capital funding to address aging pipelines and other capital
filed with the Secretary of
infrastructure needs. B. Beelner also noted proposed modifications
the Board; and public
to Rule No. 11.
comments become part of
the record and submitted
D. Lee stated that approximately 83,456 Notices of Public Hearing into evidence. Chairperson
were mailed and, of those, 1,754 notices were in Spanish and
J. Seymour granted A.
81,702 notices were in English. He also shared that 15 written
Kott's motion.
protests were received as of the public hearing date.
Chairperson J. Seymour next
Upon conclusion of the foundational testimony, the Board asked
entertained A. Kott's request
whether APU should issue more bond indebtness rather than raise
to close the record of the
rates. B. Beelner responded to the question by indicating that staff is
public hearing because there
mindful that APU does not issue too much debt because of the
were no further witnesses or
consequences, including potential downgrades and impacts to
evidence to be submitted by
reserves.
APU for the Board's
consideration. Since no
After Board questions, Chairperson J. Seymour asked if there were
objections to A. Kott's
any members of the public who would like to speak either in favor
request were interposed,
of or in opposition to the proposed modifications to the Water
Chairperson J. Seymour
Rates, Rules and Regulation. Two members of the public spoke
closed the Public Hearing.
about (1) water quality and (2) whether the federal government
provides funding to the 130 million customers in Anaheim. Staff
Chairperson J. Seymour
addressed those comments by explaining how imported water is
summarized the prior
treated by the Metropolitan Water District of Southern California
testimony of D. Lee and
(MWD) and offering to speak to the water quality questions in
noted that the number of
greater detail following the rate hearing, and clarified that there are
protests received did not
about 60,000 water customers, and that minimal funds from grants
constitute a majority protest
are received from the government, but the majority of costs are
to the proposed increases to
borne by Anaheim water customers. Afterwards, D. Lee provided
the W-CA and W-SRA.
some closing remarks reminding the public that while APU is
Based on the forgoing,
required to recover its cost of service, it offers rebates and programs
Chairperson J. Seymour
to help residents conserve water and lower utility bills.
concluded that the increases
to the W-CA and W-SRA
are in effect on February 1,
2022 and April 3, 2022,
respectively, as guided by
applicable state laws.
V. Baroldi moved that the
Board recommend to the
City Council, by resolution,
2022-3
5. PUBLIC HEARING: APPROVAL OF THE PROPOSED
MODIFICATIONS TO SCHEDULE GS-2 (GENERAL
SERVICE), SCHEDULE TOU (TIME -OF -USE), SCHEDULE
TES (THERMAL ENERGY STORAGE), SCHEDULE FIT
(FEED -IN TARIFF), DEVELOPMENTAL SCHEDULE D-
TOU-2 (DEVELOPMENTAL DOMESTIC TIME -OF -USE),
DEVELOPMENTAL SCHEDULE D-TOU-L
(DEVELOPMENTAL TIME -OF -USE -LARGE),
DEVELOPMENTAL SCHEDULE D-NEM
(DEVELOPMENTAL NET ENERGY METERING),
DEVELOPMENTAL SCHEDULE D-EV (DEVELOPMENTAL
DOMESTIC ELECTRIC VEHICLES), AND
DEVELOPMENTAL SCHEDULE D-EV-2
(DEVELOPMENTAL NON -DOMESTIC ELECTRIC
VEHICLES) OF THE ELECTRICRATES, RULESAND
REGULATIONS; APPROVAL OF NEW RULE 25 (GREEN
POWER OPTION) AND PROPOSED MODIFICATIONS TO
RULE NOS.11 (DISCONTINUANCE AND RESTORATION
OF SERVICE) AND 29 (SOLAR POWER PROGRAM) OF
THE ELECTRIC RATES, RULESAND REGULATIONS; AND
DETERMINATION THAT THESE MODIFICATIONS ARE
EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT (CEQA) PURSUANT TO THE PUBLIC
RESOURCES CODE SECTION 21080(B)(8), AND SECTIONS
15061(B)(3) AND 15273(A) OF TITLE 14 OF THE
CALIFORNIA CODE OF REGULATIONS. *
The Public Hearing was called to order by Chairperson J. Seymour.
R. Gaona left the meeting.
B. Beelner presented oral testimony explaining that APU is
proposing rate and rule modifications to the Electric Rates, Rules
and Regulations.
that it (1) determine that the
modifications to the Water
Rates, Rules and
Regulations are exempt
under CEQA; and (2)
approve the proposed
modifications to Rule No.
11 of the Water Rates, Rules
and Regulations. A.
Abdulrahman seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1 [R. Bhalla].
APU presented prepared
testimony and oral
testimony in support of its
proposed rate and rule
modifications to the Electric
Rates, Rules and
Regulations.
Upon the completion of the
testimony and public
comments, A. Kott moved
that all evidence, oral and
written, submitted by staff,
including the Prepared
Testimony with exhibits
from B. Beelner; and the
Affidavits of Publication of
the Notice of Public Hearing
become part of the record
and submitted into evidence.
Chairperson J. Seymour
granted A. Kott's motion.
Chairperson J. Seymour next
entertained A. Kott's request
to close the record of the
Public Hearing because
there were no further
witnesses or evidence to be
submitted by APU for the
Board's consideration.
Since no objections to A.
Kott's request were
interposed, Chairperson J.
2022 - 4
B. Beelner discussed a new program called the Green Power Option
which he noted was a voluntary program for APU residential and
commercial customers who want to purchase more renewable
energy above APU's current state -mandated target to achieve their
sustainability goals. The opt -in program does not impact the
balance of customers.
B. Beelner discussed other proposed modifications which adjusted
three of the time -based rate schedules to better align with current
power market conditions. Over the last several years, B. Beelner
mentioned electricity prices have typically peaked in the evening
hours between 4pm — 9pm, when there is less solar energy available
and when people return home from work and turn on their
appliances. He also stated that proposed modifications would
change the APU summer period from June through September to
July through October, as APU has also seen more power consumed
in October (instead of June) because of warmer weather.
B. Beelner clarified that these changes are intended to align time
periods and seasons with market conditions so that demand and cost
for energy are better aligned for cost recovery. These changes are
not projected to materially impact electric revenue, and less than
1% of APU customers will be impacted as the majority of APU
residential customers are on a standard domestic rate.
Upon conclusion of the foundational testimony, Chairperson J.
Seymour asked if any member of the Board had questions for staff.
No member of the Board had any questions.
Chairperson J. Seymour then asked if there were any members of
the public who would like to speak either in favor of or in
opposition to the proposed modifications to the Electric Rates,
Rules and Regulation. There were no public comments. D. Lee
provided some closing remarks.
A verbatim transcript of the public hearings with all testimony and
exhibits that were a part of the public hearings was prepared by the
Court Reporter. The certified original transcript is on file in the 11t'
floor Department Records, Public Utilities Department, Anaheim
West Tower. A certified copy of the original transcript is on file in
the City Clerk's Office, 2nd floor, City Hall.
6. QUARTERLY STATUS REPORTS ON CAPITAL
IMPROVEMENT PROJECTS, MASTER AGREEMENTS,
GENERAL SERVICES AGREEMENTS, AND SPOT BID
AWARDS.
D. Lee explained to the Board that the quarterly report includes
additional metrics for both the Water and Electric Design -Build
Master Agreement in the form of a table with the number of
projects awarded and the expenditures to date for the fiscal year.
Seymour closed the public
hearing.
A. Abdulrahman moved that
the Board recommend to the
City Council, by resolution,
that it determine that the
modifications to the Electric
Rates, Rules and
Regulations are exempt
from CEQA and approve the
proposed rate and rule
modifications to the Electric
Rates, Rules and
Regulations. N. Campos
Kurtz seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 [R. Bhalla, R.
Gaona].
2022 - 5
The reporting for Electric began this quarter with the recent
approval by the Board and City Council of the Electric Design -
Build Master Agreement, which the Water Division had in place in
previous years.
J. Lonneker reviewed the quarterly CIP Report with the Board,
noting that expenditures to date align with the approved budget. J.
Lonneker noted there is a delay in the construction phase of the
transformer replacement program for this fiscal year due to the
awarded contractor withdrawing their bid. Construction is estimated
to begin by April 2022.
M. Moore, Assistant General Manager - Water Services, provided
an overview of the Water Capital Program. The amended budget for
this fiscal year is $172.1M. Most of the budget is for the
Groundwater Treatment Program that will be mostly reimbursed by
the Orange County Water District (OCWD). M. Moore updated the
Board on the drilling of two new wells for the Groundwater
Treatment Program. It is rare to have two wells being drilled at the
same time. The operation began at the beginning of January and has
been under construction 24/7. The Board inquired if there will be
treatment at this location, and M. Moore confirmed that treatment
will be added after the wells are constructed.
7. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker updated the Board regarding a power outage on
December 31, 2021, affecting 108 customers for approximately 11
hours. Temporary generators were used to shorten the outage
duration while crews made extensive repairs to damaged
equipment; positive comments received by a resident impacted by
the outage were shared with the Board.
8. UPDATE ON WATER SYSTEM ITEMS.
M. Moore provided an update on Water Supply. The watersheds
that supply water to Anaheim experienced dry conditions for
January and are about halfway through their wet period of the year.
Metropolitan Water District (MWD) still has strong water storage
accounts in case the drought continues. APU will monitor the
weather conditions in February to determine if an increase to the
Water Shortage Contingency Plan to Level 2 is advisable. Staff will
come back to the Board in March with a recommendation.
Customers are still encouraged to limit water waste and participate
in efficiency programs.
M. Moore provided an update on the Indiana Street pipeline, which
is an 80 year old water line that has broken several times. APU is
using the Design -Build Master Agreement to accelerate
replacement with a new ductile iron pipeline. The project began
2022 - 6
several weeks ago, and customers have expressed their appreciation
for the waterline replacement.
M. Moore shared that APU Maintenance staff conducted an annual
shutdown, cleaning and inspection of the Lenain Water Treatment
Plant. The shutdown was performed the week of January 17 and is
now back in service. The cleaning and inspection removed less
quagga mussels than previous years due to new mitigation measures
made by APU and MWD.
9. UPDATE ON FINANCE & ENERGY RESOURCES ITEMS.
B. Beelner discussed the monthly finance dashboard with the Board
indicating that the year to date electric revenue through December,
2021 was 2.2% above budget ($4.8M). Electric costs for the fiscal
year to date fell below budget by 7.0% ($13 AM) causing a net
positive budget variance of $8.6M. B. Beelner then mentioned that
year to date water revenue was 2.4% ($1.3M) below budget.
However, water operating costs fell below budget by 9.8% ($4.2M)
causing a net positive budget variance of $2.9M.
B. Beelner presented the Power Supply dashboard and discussed the
ongoing fuel supply constraints at the Intermountain Power Project
(IPP) and discussed the decision by the project participants to shut
down one of the two units and operate the second unit at 35%
capacity to preserve the coal pile currently at the site. This shut
down and de -rating meant that APU only received 36 MW of its
contractually allowed allotment of 236 MW in December, 2021. B.
Beelner mentioned that the reduced production from IPP impacted
APU's wholesale revenue, and in all likelihood, would continue
through the end of the year.
The Board asked about the status of the coal pile. B. Beelner
responded that IPP currently has about 15 days' worth of coal on
site; however, the usability of the bottom of the pile could be
impugned due to dirt or other impurities so it could be less than 15
days.
B. Beelner then mentioned that APU is currently working on
mitigation strategies to prepare for peak summer demands if the
situation persists through the summer months and that those
strategies will be brought to the Board at its May, 2022 meeting.
10. UPDATE ON ADMINISTRATION & RISK SERVICES
ITEMS.
J. Lehman, Interim Assistant General Manager - Administration and
Risk Services, provided the Board with an update on the Wholesale
Energy Risk Management (ERM) Program's Quarterly Compliance
report for the first quarter of FY22, which was included in the Board
2022 - 7
packet. She indicated that all wholesale energy transactions met the
Program's requirements and that there were no violations of the
ERM during this period.
J. Lehman provided an update on the State's customer arrearage
assistance programs and reported that the funding for the applicable
electric services customers had been received, and that APU was still
awaiting the funding for the past due water services customers whose
arrearages met the State's criteria. She explained that the funding will
be applied to the eligible accounts, as required by the programs.
J. Lehman then provided an update on the status of the safety
program. J. Lehman shared that the safety metrics are similar to last
years and COVID-related illnesses are the main cause for the metrics
exceeding the targets.
11. ITEMS BY SECRETARY
D. Lee shared with the Board the items scheduled for the following
Board meeting. Proposed agenda items include:
0 Safety Services Presentation
• Water and Electric Bond Presentation
• Request for Bond Issuance
D. Lee mentioned that APU participated in the Anaheim Beautiful
Awards, 2021 Holiday Lights Contest where a number of residents
were recognized by the Anaheim Beautiful selection committee.
Two homes that participated in the contest utilized 100% LED
lights.
D. Lee mentioned that APU participated in a tour with the Southern
California Association of Governments (SCAG). The SCAG
President and Director looked at a number of Anaheim facilities.
APU participation consisted of taking them to an affordable housing
complex and sharing information about APU's Rideshare Pilot
Program. The pilot program allows property managers to lease two
electric vehicles and they are reimbursed monthly for the costs. The
residents can utilize the vehicles for low mile trips; this is a good
way to introduce electric vehicles and their use at affordable
housing complexes.
D. Lee shared that he attended a dedication of the Rick Gomez Park
located in Buena Park. Rick Gomez, who passed away several years
ago, was a former APU employee and an instrumental part of the
organization.
D. Lee explained the Welcome Kit program where kits are
distributed to new electric residential customers. The kits include
four LED lights and a Residential Resource Guide. There is an
2022 - 8
average of 720 Welcome Kits provided to residents each month.
The LED lights generate over 1 million kWh of savings annually,
which is enough to power nearly 100 homes for an entire year and
contributes to our sustainability goals.
D. Lee shared information about the COVID Recovery Update that
was presented at the January 11, 2022 City Council meeting and
explained the overall impacts of COVID on Anaheim employees.
12. ITEMS BY BOARD MEMBERS
N. Campos Kurtz thanked staff for the tour of the Customer Service
Call Center and shared that it was very informative. She indicated
that it was a good team of people providing excellent service to
Anaheim residents.
13. ADJOURNMENT: (NEXT REGULAR MEETING ON
FEBRUARY 23, 2022 AT 5:00 P.M.)
M. Lee moved to adjourn
the Regular Meeting / Public
Hearings in Gordon Hoyt
Conference Center at 7:21
p.m., to the Board's Regular
Meeting date of February
23, 2022 at 5:00 p.m. N.
Campos Kurtz seconded the
motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 [R. Bhalla, R.
Gaona].
Respectfully s bmitted,
Dukku Lee
Public Utilities General Manager
* 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.
2022-9