Agenda. Utility Business Model, Energy Technology and Cost Trends; Staff. Draft Scope, Considerations, Deliverables and Schedule; Committee

Transcription

1 Utilities Policy Advisory Committee (UPAC) Wednesday, February 6, :00 a.m. 10:30 a.m. Blue River Board Room 5th Floor, Plaza of the Rockies, South Tower, 121 S. Tejon Agenda 1. Call to Order 2. Approval of January 23, 2019 UPAC Meeting Minutes Decision 3. New Energy Vision Assignment Assignment Introduction; Staff 4. New Energy Vision Assignment Utility Business Model, Energy Technology and Cost Trends; Staff 5. New Energy Vision Assignment Community Input, Communications Plan; Staff 6. New Energy Vision Assignment Draft Scope, Considerations, Deliverables and Schedule; Committee Discussion Discussion Discussion Decision 7. General Discussion and Citizen Comment Discussion 8. Adjournment Decision Next Meeting: Wednesday, March 6, 2019, 8:00 a.m. 10:30 a.m. Note: UPAC Bylaws, Rule 6: Customer and Public Comment: (b) At the discretion of the Chair, or the majority of the Committee Members present, customers and members of the public will be allowed to comment or ask questions concerning items discussed at regular meetings or concerning matters discussed at special meetings. Comments or questions by individuals will be limited to five minutes each, and all customer or public comments will not exceed twenty minutes on any agenda item unless time is extended by the Chair or majority of the Committee Members present.

2 Minutes Utilities Policy Advisory Committee (UPAC) Wednesday, January 23, :00 a.m. 10:00 a.m. Blue River Board Room 5th Floor, Plaza of the Rockies, South Tower, 121 S. Tejon Committee Members present: Chair Rex Adams; Vice Chair Scott Harvey; Rich Kramer; Balu Bhayani; Gary Burghart; Larry Barrett; Alternate Members Reggie Ash and Nicole Inabinet Committee Members Excused: James Colvin Staff Members present: Cindy Newsome; Jessica Thiel; Dave Grossman; Bethany Burgess; David Beckett; Sharon DeWitt 1. Call to Order Chair Adams called the meeting to order at 8:02 a.m. Chair Adams thanked Committee Member Kramer for his service as 2017 and 2018 chair of the Utilities Policy Advisory Committee. Chair Adams also recognized new alternate member Nicole Inabinet s first meeting and requested that she introduce herself to the committee. Committee Member Inabinet summarized her personal and professional background for the committee. 2. Approval of December 5, 2018 UPAC Meeting Minutes Committee Member Kramer moved to approve the December 5, 2018 meeting minutes of the Utilities Policy Advisory Committee. Committee Member Bhayani seconded the motion. The minutes were approved unanimously. 3. Utility Infrastructure for an Urban Planning Area Finalize Recommendation to the Utilities Board Mr. Dave Grossman, Strategic Planning and Governance supervisor, introduced the draft presentation. Committee Member Kramer took committee members through the draft presentation, which will be put forth at the Utilities Board meeting on February 20, Mr. Kramer asked for committee member input on presentation. Committee Members provided the following input: Move map to the beginning of the presentation. Add and strategies in the presentation and white paper to the proposed guideline addition to existing Infrastructure Policy (I-6) as well as in other places where master plan scope and principles are discussed.

3 Remove special utility district and surplus payment rebate from the first funding slide. The plan should ensure flexibility to address unforeseen circumstances. Emphasize that Colorado Springs Utilities leads the utilities infrastructure master plan components. List the measurement component in the presentation. Utilities Policy Advisory Committee s assignment recommendations will be presented to the Utilities Board at the February 20, 2019 meeting. 4. Utility Infrastructure for an Urban Planning Area Finalize Recommendation White Paper, Committee/Utilities Staff Mr. Grossman reviewed the draft white paper and asked the committee for their feedback and direction. Committee Members provided the following input: Add Council of Neighbors Organizations and Pikes Peak Regional Transportation Authority as stakeholders Add and plan review after performance measurements Strike in the long term at the bottom of page four Summarize successful peer cities master plan approaches 5. Ethics, Open Records, Open Meetings: 2019 Update City Attorney s Office Utilities Division Mr. David Beckett, City Attorney s Office Utilities Division, provided the annual advisement regarding ethics guidelines, rules of conduct, gifts, open records and open meeting laws. Mr. Beckett provided clarification on questions from the committee. 6. General Discussion and Citizen Comment There was no committee member discussion and no citizen comment. 7. Adjournment Next Meeting: Wednesday, February 6, 2019, 8:00 a.m. 10:30 a.m. A motion was made and seconded to adjourn the meeting. The motion passed unanimously and the meeting was adjourned at 9:49 a.m.

4 New Energy Vision Assignment Dave Grossman, Strategic Planning and Governance Supervisor Michael Avanzi, Energy Planning and Standards Manager Leslie McKiernan, Customer Experience Insights Supervisor Amy Trinidad, Senior Public Affairs Specialist Utilities Policy Advisory Committee February 6, 2019

5 Agenda 1. Assignment Introduction 2. Utility Business Model 3. Energy Technology and Cost Trends 4. Community Input 5. Communications Plan 6. Draft Assignment Scope, Considerations, Deliverables and Schedule Colorado Springs Utilities 2

6 Assignment Introduction Colorado Springs Utilities 3

7 UPAC s Energy Vision Assignment UPAC has been tasked with developing a new Energy Vision for Colorado Springs Utilities as a precursor to the Electric and Integrated Resource Plans assignment that will begin in June Colorado Springs Utilities 4

8 Strategic Plan Strategic Foundation Colorado Springs Utilities Vision Colorado Springs Utilities is a treasured community partner, well known for providing responsible and dependable services that are vital to the future of our region. Colorado Springs Utilities 5

9 Draft Strategic Plan Strategy Map Colorado Springs Utilities 6

10 Draft Strategic Plan Strategic Initiative - Energy Vision/Integrated Resource Plans Responsible Division: Energy Services Key Deliverable: Energy Vision and Integrated Resource Plan Timeframe: The Electric Integrated Resource Plan is a long-term strategic plan used to guide resource acquisition, conservation and demand side management decisions to meet consumer electric demand over a 20-year period. The Natural Gas Integrated Resource Plan (GIRP) is a long-term strategic plan used to guide natural gas resource acquisition needed to meet long-term customer demands, taking into account existing resources, the distribution system, electric generation, and efficiencies. The plan identifies when supply deficiencies may occur and the potential resources that could be built or acquired to meet the deficiencies. The initiative will be guided by the Utilities Board Energy Vision and the combined plan will include a thorough technical analysis, public process and considers anticipated regulations, cost of service, new technologies and customer preference. Focus: Reliability Perspective: Internal Objective: Plan, Build and Maintain Assets and Infrastructure Colorado Springs Utilities 7

11 Draft Strategic Plan Strategic Initiative - Grid Modernization Responsible Division: Energy Services Key Deliverable: Timeframe: Innovations in utility technology, such as new storage battery options, two-way smart meters and smartphone-based energy and water usage apps, are advancing at a rapid pace. Consumers are increasingly looking to Colorado Springs Utilities for new tools and data that provide more options and help them manage their energy and water usage and save money. These changes will drive the need to partner more closely with customers as we leverage both customer-owned and Utilities-owned resources to develop products and services that customers expect. The initiative leverages Advanced Metering Infrastructure to manage distribution systems more efficiently, reduce costs, examine additional revenue sources, improve service reliability, and offer customers more options to control their utilities use and conveniently manage their account. Focus: Relationships Perspective: Internal Objective: Deliver Utility Solutions Colorado Springs Utilities 8

12 Draft Strategic Plan Strategic Initiative - New Electric Business Model Responsible Division: Energy Services Key Deliverable: New electric business model Timeframe: Over the next 30 years, significant transformation of the electric utility industry will occur as technology drives more cost-effective renewable energy resources, distributed generation, demand side management, energy storage, electrification opportunities and customer expectations regarding modern grids. At the same time, electric sales are declining and environmental regulations are expected to increase. The initiative examines customer expectations for renewable energy, demand-side management and options for services and pricing. The Electric Business Model will recognize innovations in utility technology, such as new storage battery options, electric vehicles and advanced meters, while managing flat energy sales and meeting the demands of our technology-conscious consumers. Focus: Relationships Perspective: Stakeholder Objective: Benefit Citizens and Customers Colorado Springs Utilities 9

13 What is an Electric Integrated Resource Plan (EIRP)? The EIRP is a long-term strategic plan, combining technical analysis and public input, to ensure customers have reliable and environmentally conscious electricity at a reasonable cost. The EIRP is a guide for resource acquisition, conservation and demand-side management (DSM) decisions to meet customer electric demand through the next 20 years. It is used for business development, and it meets the requirements of the Energy Policy Act of 1992, requiring all Western Area Power Administration (WAPA) customers to submit an integrated resource plan every five years. Colorado Springs Utilities 10

14 What is a Gas Integrated Resource Plan (GIRP)? The GIRP is a long-term strategic plan used to guide natural gas resource acquisition needed to meet customer demands, taking into account existing resources, the distribution system, electric generation, and efficiencies. The GIRP employs rigorous technical analysis to ensure safe, reliable and cost effective natural gas supply. The goal is to evaluate all resource requirements in order to economically determine the natural gas supply and delivery options for the forecasted annual, peak-day and peak-hour demands. Colorado Springs Utilities 11

15 Why do an Integrated Resource Plan? Provides rigorous analysis for good business decisions in a changing economic environment Is a foundation for short and longer term budgets Maintains eligibility for WAPA s hydro power (EIRP) Enables utilities to adapt to changing forecasts and assumptions Colorado Springs Utilities 12

16 Elements of an Integrated Resource Plan Load forecast Existing resource portfolio Demand side management (DSM) Renewable energy strategy Conventional and new technologies Public process Metrics to track Energy Vision achievement Colorado Springs Utilities 13

17 What is an Energy Vision? An Energy Vision is the guiding principles Colorado Springs Utilities uses to plan resources for future needs of the community. Current Energy Vision By 2020, Colorado Springs Utilities will provide: 20 percent of its total electric energy through renewable sources with at least 1 percent from distributed generation sources with a maximum electric bill impact of 1 percent. DSM programs that: reduce electric energy use by 12 percent reduce electric peak demand by 12 percent provide a maximum electric bill impact of 2 percent Colorado Springs Utilities 14

18 An Energy Vision Should Be Truly a vision statement - inspirational Bold and relevant to industry trends Clear and concise Supported by specific actions and activities in the Integrated Resource Plans A partnership with customers, employees, the community and the region Flexible and adaptable to uncertain future The Energy Vision will inspire and guide our customers, employees and the community with pride and ownership into the new energy landscape. Colorado Springs Utilities 15

19 Example Energy Vision Statements To deliver clean and sustainable energy that adds value to customers lives, contributes to the prosperity of the community and enhances our quality of life for generations to come. To deliver dynamic and sustainable energy solutions that add value to our customers lives, make our businesses more successful and improve quality of life in the Pikes Peak region. To provide sustainable energy solutions that complement the natural environment making our community one of the most preferred places to live in the country. By creating a dynamic, clean energy future we will add value to the community, make our businesses more successful and improve the quality of life in the Pikes Peak region. Colorado Springs Utilities 16

20 New Energy Vision Pillars Colorado Springs Utilities 17

21 Utility Business Model Colorado Springs Utilities 18

22 Utility Business Model Colorado Springs Utilities 19

23 Utility Business Model (cont d) Colorado Springs Utilities 20

24 Utility Business Model (cont d) Colorado Springs Utilities 21

25 Utility Business Model (cont d) Colorado Springs Utilities 22

26 Energy Technology and Cost Trends Colorado Springs Utilities 23

27 Renewable Energy Colorado Springs Utilities 24

28 Renewable Energy (cont d) Colorado Springs Utilities 25

29 Battery Storage Colorado Springs Utilities 26

30 Battery Storage (cont d) Colorado Springs Utilities 27

31 Renewable Energy and Storage Pricing Colorado Springs Utilities 28

32 Natural Gas Colorado Springs Utilities 29

33 Natural Gas (cont d) Colorado Springs Utilities 30

34 Natural Gas (cont d) Colorado Springs Utilities 31

35 Resource Mix Colorado Springs Utilities 32

36 Resource Mix (cont d) Colorado Springs Utilities 33

37 Electric Vehicles Source: BNEF Colorado Springs Utilities 34

38 Electric Vehicles (cont d) Colorado Springs Utilities 35

39 Electric Vehicles (cont d) Colorado Springs Utilities 36

40 Electrification Colorado Springs Utilities 37 Source: NREL, Electrification Futures Study

41 Demand Response Colorado Springs Utilities 38

42 Demand Response (cont d) Colorado Springs Utilities 39

43 Demand Response (cont d) Colorado Springs Utilities 40

44 Community Input Colorado Springs Utilities 41

45 Community Input - Proposed Approach 1. UPAC develops multiple draft vision statements 2. Community provides feedback on the drafts Version preference Why a version is preferred Suggested changes 3. UPAC incorporates community feedback to develop one proposed statement Colorado Springs Utilities 42

46 Community Input Residential Business Online Employee Customer Counts Panel and Customer List Association and Organization Lists CSU.org Link Insights Newsletter Quantitative Qualitative Qualitative Qualitative Colorado Springs Utilities 43

47 Community Input Public Meetings UPAC meetings Community open house Business customer meeting Utilities Board meetings Colorado Springs Utilities 44

48 Communications Plan Colorado Springs Utilities 45

49 Communications Plan GOAL: AUDIENCES: STRATEGY: Encourage community involvement in the development of a new Energy Vision for Utilities Board approval by June Residents and businesses who count on electricity and natural gas services in Colorado Springs Utilities service territory. In March and April utilize communications channels to promote open house and direct customers to the survey. Colorado Springs Utilities 46

50 Communications Strategy Residential customers: Targeted invite Social/digital media Media pitch Connection newsletter Smart Home e-newsletter Change the Current e-newsletter Welcome Open House Business customers: First Source e-newsletter Key accounts outreach Business User Group meeting Colorado Springs Utilities 47

51 Key Messages The energy industry is transforming, and Colorado Springs Utilities is on the brink of creating a new energy landscape together with the community it serves. The setting forth of an Energy Vision that proactively and responsibly takes on challenges never seen before in the industry. Customers are the foundation of this effort and being asked for input on building a brighter future for the community. Colorado Springs Utilities 48

52 Draft Assignment Scope, Considerations, Deliverables and Schedule Colorado Springs Utilities 49

53 Draft Assignment Scope Develop a new Energy Vision, with public input, for the community s energy future based on four pillars: Economic, Environment, Resiliency, and Innovation. Draft Considerations How is a new Energy Vision developed that is flexible and adaptable to a transforming energy landscape and evolving customer expectations? How does Colorado Springs Utilities partner with the City of Colorado Springs and other stakeholders to develop the new Energy Vision? What community feedback is needed to development the new Energy Vision? What changes to the current energy business model should be considered? Draft Deliverables Responses to the assignment considerations Vision statement Colorado Springs Utilities 50

54 Assignment Schedule February 20 Utilities Board meeting Board reviews, provides input and approves UPAC s recommended scope, considerations, timeline and deliverables March 6 UPAC meeting Colorado Renewable Energy Standard, transmission project update, joint dispatch agreement, municipal government expectations, preliminary vision statement drafts April 3 UPAC meeting DSM potential study, residential customer feedback, draft responses to considerations, refine multiple draft vision statements April Surveys, community open house, business customer meeting May 8 UPAC meeting business customer feedback, finalize responses to considerations and finalize vision statement recommendation May 22: Utilities Board meeting - UPAC presents Energy Vision recommendations June 5 UPAC meeting Introduction to the Electric and Gas Integrated Resource Plan process June 19 Utilities Board meeting - Board decision on UPAC Energy Vision recommendations Colorado Springs Utilities 51

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