Board of Directors Meeting. April 27, 2017

Transcription

1 Board of Directors Meeting April 27, 2017

2 2016 Annual Report April 27, 2017

3 Project Team 2016 Annual Report Lead Kari Lynch Communications & Marketing Specialist Independent Auditors Subject Matter Experts (multiple departments) Financial Services Division Communications & Marketing Senior Management City Staffs Graphic Design and Website Development

4 2016 Annual Report Overview (Electronic Viewing Option)

5 Next Steps Board acceptance of 2016 Annual Report Printing of final bound hardcopy option Follow up on copies needed in each municipality Post final web view option PDF download options available Auditor s Report Full Report

6 Board of Directors Meeting April 27, 2017

7 HQ Campus April 27, 2017

8 Platte River Power Authority Board of Directors Meeting 27 April 2017 New Headquarters Campus

9 AGENDA Updated Project Timeline Site Diagram and City of Fort Collins Process Floor Plan Development Exterior Development Next Steps Platte River Power Authority Board of Directors Meeting 27 April 2017 New Headquarters Campus

10 PROJECT SCHEDULE Visioning Programming 10 weeks Thanksgiving Christmas Schematic Design 17 weeks Design Development 12 weeks Contract Documents 14 weeks Construction 78 weeks Thanksgiving Christmas Thanksgiving Christmas October 2016 October 2017 May 2019

11 SITE PLAN SHOPS VEHICLE STORAGE EQUIPMENT VEHICLE GARAGE WAREHOUSE POOL CARS

12 FLOOR PLANS

13 FLOOR PLANS

14 BOARD ROOM

15

16 A HORSETOOTH ENTRY

17 PUBLIC PARKING / MAIN ENTRY AERIAL VIEWS

18 CURRENT PROGRESS - Initialized City Review Process - Finalized the Interior Neighborhood Organization - Investigating the Building Systems - Engaged Construction Manager: FCI Constructors - Updating the Cost Model: To be presented at the May and August Board of Director s Meeting Platte River Power Authority Board of Directors Meeting 30 March 2017 New Headquarters Campus

19 NEXT STEPS May 25 th : Schematic Design Validation and Updated Cost Model August 31 st : (Tentative) DD Approval and Revised Cost Model Platte River Power Authority Board of Directors Meeting 27 April 2017 New Headquarters Campus

20 Platte River Power Authority Board of Directors Meeting 27 April 2017 New Headquarters Campus

21 Board of Directors Meeting April 27, 2017

22 Demand Response Pilot Update April 27, 2017

23 DR Pilot Overview DR introduction (brief) Existing DR resources - Platte River / Munis DR potential & cost effectiveness estimates DR opportunities DR pilot goals Pilot status & next steps

24 Demand Response FERC ( Changes in electric usage by demand-side resources from their normal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized. PJM ( Demand Response is a voluntary PJM program that compensates end-use (retail) customers for reducing their electricity use (load), when requested by PJM, during periods of high power prices or when the reliability of the grid is threatened. These customers receive payments from PJM members called Curtailment Service Providers.

25 TYPES OF DEMAND RESPONSE (NERC) From NERC s Demand Response Data Availability Data System (DADS): Phase I and II Final Report.

26 Existing Muni DR Resources APPROX. PRIMARY USE CAPACITY SUMMER WINTER 3 HRS CONTROL RESOURCE MUNI (MW) PEAK PEAK RESERVES DURATION BY Peak Partners AC Units FCU 1.7* X FCU Peak Partners Water FCU Heaters 0.6* X X FCU Peak Partners C&I FCU 5 X X? *** Coinc Peak Rate Passthru large C&I & LPC LWP? X X? *** Interruptible industrial LWP customer 8** X X PRPA Distribution Voltage Reduction LPC 1-2* X X X LPC Thermal Storage EPLP <1 X X ^ *Enrolled in Platte River Demand Response Pilot Program ** Contractual minimum capacity available, 24x7. *** Price responsive. Signal sent by FCU. ^ Price responsive to EPLP TOU rate.

27 DR Potential & Cost Effectiveness 2015 Study 2017 Update DR potential (Dispatchable DR only) DR costs -System costs -Program costs (includes end-use devices) -Incentive costs DR benefits -Avoided generation type -Avoided generation capacity (2030+) -Supplemental/non-spinning reserves -Energy benefits (current market) Wholesale Coincident Demand Rate (2017) -Summer -Non-summer -Total MW (3% - 7.5% of peak) About 100 hours/yr 2,000-5,000 MWh/yr shifted (<0.2% of annual energy) $62 - $49 / kw-yr (levelized per kw) ~10% ~40% ~50% $42 - $43 / kw-yr Combustion turbine (peaker) 85% 6% 9% $71 - $73 / kw-yr Recip Int Comb Engine ~100% 0% ~0% $11.33/kW-mo x 3 mo = $34/kW-yr $8.64/kW-mo x 9 mo = $78/kW-yr $34 + $78 = $112/kW-yr Analysis assumes investment starts 5 years before capacity need (2025 investment for 2030 need). Analysis is present value over a 25 year period (DR program life).

28 OTHER OPPORTUNITIES FOR DR Value in RTO/ISO Market will provide value and set performance/measurement & verification requirements Electric vehicle charging Charging EVs will be a large, flexible load ideally suited to control Electric storage Similar to DR but bi-directional Time-varying rates and DR incentives What can rates achieve / what can DR incentives achieve? DR for distribution optimization DR & storage may have a role in distribution optimization / solar integration Some risks Interoperability: need to work towards DR solutions that work together Cybersecurity: expanding cyber footprint; security must be considered

29 DR Pilot: Goals Leverage existing Muni DR investments Maximize DR value to system Operate DR for system value (vs wholesale rate signal) Develop methods for allocating system value due to DR Test / prove DR as a system resource Improve operational awareness & visibility of DR Understand DR forecasting capability, snap-back, measurement & verification, and reliability Identify possible uses of DR Improve DR integration DR customers & DR vendors Municipality Platte River Balancing Authority Hardware / software / communications Rates / incentives / contracts / customer marketing & communications New: Consider how DR will function in a market environment

30 DR Pilot Update Phase 1: Monitoring (began Sep. 1, 2016) Required documents: Project Charter Fort Collins-Comverge Sublicense Agreement Phase 2: Control (planned launch Jun. 1, 2017) Required documents: Comverge Sublicense Amendment Operating Procedure Cost & revenue neutral to participating munis Report on findings monthly Total duration 1-2 years

31 DR Pilot Phase 1: Fort Collins Fort Collins Utilities DR Event: June 21, 2016 Demand Response Thermostats: 1,940 Water Heaters: 1,716 Overrides: 47 14:00 17:00

32 DR Pilot Phase 1: Longmont kv Voltage Reduction Effects Voltage: ~1% Power: estimated % kw Longmont Power & Communications VR Event: June 21, Average Substation kv* *Note: data for Fordham Substation not available during event.

33 DR Pilot Phase 2 Controls Possible scenarios for dispatching DR: Testing Avoid a market purchase Enable a market sale Avoid/delay starting a peaking unit Ancillary services and/or renewable energy integration.

34 DR in Organized Markets LMP < $0/MWh LMP > $1000/MWh SPP Real-Time Price Map: January 2017

35 Questions / Discussion

36 Board of Directors Meeting April 27, 2017

37 March Operational Results Variance Key: Favorable: >2% Near budget: +/- 2% Unfavorable: <-2%

38 Board of Directors Meeting April 27, 2017

39 Financial Summary Category March Variance from Budget ($ in millions) Year to Date Variance from Budget ($ in millions) Net Income $0.5 $1.8 Debt Coverage.17x.20x Revenues $(0.7) $(2.4) Operating Expenses $1.1 $4.0 Capital Additions $1.9 $5.7 > 2% Favorable 2% to -2% At or Near Budget < -2% Unfavorable

40 Board of Directors Meeting April 27, 2017