Board of Directors Meeting March 29, 2018 Headquarters Campus - - PowerPoint PPT Presentation

Board of Directors Meeting

March 29, 2018

Headquarters Campus

Project Update

Reevaluation

Following last month’s Board meeting, we have been reevaluating current efficiency design vs. LEED levels for the Headquarters campus project. Here’s what has taken place.

• Discussions have been held with:
• Senior staff
• Construction team
• Design team
• Owners representative
• Citizens
• Internal evaluations have been conducted

Agenda

• Sustainability Process
• Building and Site Features
• Recommended Enhancements
• Site Uniqueness
• Cost Updates
• Next Steps

Sustainability process

The Institute for the Built Environment as well as the City of Fort Collins Integrated Design Assistance Program (IDAP) have been actively engaged in the sustainability process from the beginning of the project. To date, the following concepts have been included:

• Providing input and recommendations to the design team
• Developing the sustainability guiding principles
• Monitoring the LEED program checklist
• Actively listening to public input

Current Building Design - Efficiency Features

• Daylighting
• Low flow water valves and fixtures
• Energy usage tracking
• Demand Response Programs

participation

• Efficient mechanical systems (geo-

exchange)

• High-quality, controllable LED

lighting

• Enhanced indoor air quality
• Acoustical enhancements

Current Building Design – Efficiency Status

• Group 14 – Outside Energy Modeling
• Current design is 16.3% more efficient than

modeled baseline

• Mechanical Systems
• Significantly more efficient than code
• Main building components exceed city code

Recommended Enhancements

• Target LEED Silver certification
• Approximately $350,000 and 3 months schedule impact
• Will include additional incremental sustainability features

and enhanced commissioning – still finalizing

• Will require additional documentation and materials handling
• Incorporate roof-top solar on substation garage,

warehouse, and fleet buildings

• Self-provide 48% of required electric consumption for site
• Work with the city to add additional electric vehicle

charging stations

• Request renewable tariff from the City of Fort Collins
• To ultimately achieve 100% of energy requirement from

renewable resources

Board Follow up Site Complexity

Unique Site Features

• Transmission control room
• Markets and generation control room
• SCADA hosting and maintenance on site
• Electrical and mechanical redundancies
• Microwave tower communications site
• Fiber optics infrastructure on site
• Utility industry security requirements
• NERC critical infrastructure protection requirements
• Fleet maintenance
• Storm water retention
• 24/7/365 operations

Fiber optics infrastructure

• 3.1 miles duct
• 9.2 miles of outside cabling
• ~13 miles of fiber in Estes Park

Cost updates

Still finalizing project costs based on subcontractor bids and working through additional value engineering

• ptions
• Steel prices are a primary cost driver
• Cost mitigation actions include issuing a Notice to Proceed

for purchase of steel prefabricated out buildings

• Value engineering exercise underway to manage project

costs

• Without impacting quality, appearance or energy efficiency

Next Steps

• Agreements on cost, scope and schedule for

selected project work:

• Site fiber infrastructure installation
• Communications building remodel
• Continue value engineering process
• Continue LEED evaluation process and final

selection of additional sustainability strategies

Questions?

Board of Directors Meeting

March 29, 2018

Energy Efficiency Program Evaluation

March 29, 2018

Topics

Energy Efficiency Update (2017) Energy Efficiency Evaluation (2014-2016)

A Collaborative Effort

• Program Admin
• Rebates
• Savings

Analysis

• Evaluation
• Regional

Marketing

• Trade Ally and

Retailer Management

• Trainings
• Customer Service
• Funding
• Program Planning
• Innovation &

Pilots

• City Specific

Program Administration

• Customer

Marketing

• Community

Outreach & Events Gas rebates and cost share

A Collaborative Effort

Adam Zipperer Melissa Wangnild Adam Perry Alaina Hawley Sarah Stanton Johnson Scott Suddreth Bryce Brady Adrien Kogut

Platte River Efficiency Team

John Phelan Brian Tholl David Suckling Diana Royval Crystal Shafii Michael Authier Lisa Schroers Gary Schroeder Kim DeVoe Todd Musci Lucas Mouttet Liesel Hahn Gretchen Stanford Lisa Gardner John Robson Wendy Serour Peter Iengo Tony Raeker Dustin Main Kirk Longstein Abbye Neel Leland Keller Loveland Water and Power Tracey Hewson Lindsey Bashline Allison Bohling Longmont Power & Communications Anne Lutz Chuck Finleon Robert Love Tracie Tovar Platte River Paul Davis Kari Lynch Steve Roalstad Alyssa Clemsen Roberts Estes Park Susie Parker Kate Rusch Rueben Bergsten Fort Collins Utilities

Extended Efficiency Team

Higher Efficiency & Savings

Rebates Home Efficiency Rebates Income- Qualified Multi-Family Program Efficiency Advising & Facility Assessments Efficiency Advising & Audits EW (Online) Store Building Tune- Ups Lighting & Appliance Rebates Refrigerator Recycling

Business Homes Efficiency Works

Efficiency Results for 2017

2017 Budget 2017 Actual New Energy Savings (MWhs) 25,000 25,900 New Demand Savings (MW) 5.0 4.1 Platte River Spending*($ million) $5.25 $5.25 Municipalities’ Spending** ($ million) $3.87 $3.34 Combined Spending ($ million) $9.12 $8.59 Levelized Cost of Energy Saved (4 percent discount rate, $/MWh) $42 $38

* Does not include staff costs, which adds approximately $0.6 million annually. ** Includes only municipality funding provided to and spent by Platte River. Does not include costs for the municipalities’ individual EE programs or municipality staff costs.

Efficiency Results for 2017

• New record for EE savings and investment
• Over 1,200 businesses and over 800 homeowners participating
• Launched new pilots for efficient products, refrigerator recycling

and income qualified programs

• Hired new staff to administer EW Homes program
• 2nd Annual Contractor Appreciation Event and Awards

Energy Efficiency Program Evaluation

$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000

5,000 10,000 15,000 20,000 25,000

New Energy Saving (MWh)

PRPA spending ($) Muni spending ($) Incremental energy savings (MWh)

forecast

Energy Efficiency Evaluation

Common Programs

• Efficiency Works Business (audits & rebates)
• Building Tune-Up (retro-commissioning)
• Efficiency Works Homes (audits & rebates)
• Midstream Retail Lighting

Additional Fort Collins Programs

• Home Energy Reports
• Residential Appliance Rebates
• Refrigerator Recycling

27

2014-2016 Evaluation

Research Questions

• Savings attribution
• Benefit-cost ratio
• Improvement opportunities
• Savings accuracy
• Customer satisfaction
• Program influence

28

2014-2016 Evaluation

29

2014-2016 Evaluation

Methodology

• Engineering estimates review
• Database & project review
• Site visits
• Surveys
• Cost effective analysis
• Benchmarking to other utility programs

30

2014-2016 Evaluation

Results

• 55,300 MWh (12 percent higher)
• Benefit-cost ratio

– 1.1 (systemwide), 4.1 (participants)

• Improve tracking deemed savings
• New targeted outreach channels
• 95 percent customer satisfaction
• 85 percent said that the program was influential

Efficiency Works 2018 and Beyond

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% Program Cost as Percent of Retail Revenue Energy Saved as Percent of Load Program cost, Muni (% retail revenue) Staff costs, Muni directive (% retail revenue) Program cost, PRPA (% retail revenue) Staff costs, PRPA (% retail revenue) Incremental energy savings (% of load)

Assumes retail rates rise at 3.5%/yr and loads grow at 0.4%/yr.

Planned Energy Efficiency Growth

New Website

Online Store and Instant Rebates

Questions?

https://efficiencyworksstore.com/[efficiency worksstore.com] http://efficiencyworks.hyptx.com/

EW Store and Website Links

Board of Directors Meeting

March 29, 2018

Resource Planning

Post-ZNC

March 29, 2018

Prior planning efforts used a variety of approaches to evaluate modifications to Platte River’s resource mix

• Clean Power Plan (CPP)
• The 2016 IRP established expectations for potential CPP

legislation and Platte River’s response

• Customized Resource Plan (CRP)
• Evaluated the separation of Platte River’s system into pools of

resources to satisfy differing community objectives

• Zero Net Carbon (ZNC)
• Evolution of the CRP to evaluate a resource mix where all four

municipalities work together toward a carbon-free outcome

Zero Net Carbon (ZNC) Study

Platte River Power Authority retained Pace Global to provide an independent assessment of the feasibility of Platte River achieving and maintaining a zero net carbon (ZNC or carbon- neutral) generation supply portfolio by 2030. Objectives: ▀ Determine the least-cost portfolio of generation resources that can achieve ZNC by 2030. ▀ Assess at a high level, the risks and risk mitigation measures associated with achieving or exceeding ZNC. This study was primarily designed to assess the production costs

• f a ZNC portfolio and aid in future planning decisions for

Platte River and its member-owners.

Presented to the Board of Directors in December 2017 Leads to the next steps for Platte River’s Resource Planning Department

• Outstanding and supportive feedback from the community
• Recognized as a positive step towards a lower carbon future
• Received community and industry press coverage
• Dozens of additional stakeholder presentations
• Recognition of the benefits of moving forward together

towards a lower carbon future without sacrificing reliability or financial sustainability

Community Reaction to ZNC Study

Prior planning efforts used a variety of approaches to evaluate modifications to Platte River’s resource mix

2017 2019 2020 2025 2030-50

150 MW Wind Enyo Roundhouse 20 MW Solar + Storage Closure of Craig Unit 1

• 428 MW

(Platte River share -77 MW) Over 30% Carbon-Free Generation Nearly 50% Carbon-Free Generation Carbon Reduction Path to be Determined by Joint Community Goals > 50% Carbon-Free Generation Not included in the ZNC study

• An integrated resource plan (IRP) will formalize an action

plan to pursue joint community objectives

• A revised baseline is needed because the current IRP

has become outdated

Recommended Planning Next Steps

CRP ZNC

≈2020 IRP

New Baseline and PR Goals

Platte River’s IRP Timeline

The next IRP due date is June 15, 2021

Energy Planning and Management Program takes effect

1997 2002 2007 2012

11/20/95 Platte River files its inaugural IRP 11/20/96 Platte River files 2002 IRP 6/12/02 Platte River requests approval to submit 2007 IRP in the fall of 2006 4/06 Platte River files 2012 IRP 6/10/2011

2016

Platte River files 2016 IRP on revised cadence on 6/7/2016; Western issued approval on 9/7/16

IRP Development Needs

Platte River

• Lead technical efforts including model development and analysis
• Develop supporting studies
• New resource options
• Congestion analysis/RTO impacts
• Regional economic model to capture the impacts of electric rate

changes

Municipalities

• Facilitate the stakeholder process
• Set goals/boundaries for analysis
• Set final resource mix trajectory based on analytical results

Conceptual IRP Schedule

• Schedule is dependent on Western’s approval of an out-of-

cadence submission

• Project will be high-profile and will need to focus on quality

versus the speed of delivery

Resource mobilization

2018

Stakeholder outreach Initial assumptions and model development Internal review Revisions and document development Final review and stakeholder presentations

2019 2020

Submission to Western ≈12 months ahead of schedule

Questions?

Board of Directors Meeting

March 29, 2018

February Operational Results

Variance Key: Favorable:  >2% | Near budget:  +/- 2% | Unfavorable:  <-2%

Category February Variance YTD Variance Municipal Demand 2.1%  0.2%  Municipal Energy (0.2%)  (0.4%)  Baseload Generation (10.6%)  (7.5%)  Wind Generation (9.4%)  (9.3%)  Solar Generation (4.4%)  (8.2%)  Surplus Sales Volume (2.0%)  (8.7%)  Surplus Sales Price (3.7%)  (6.2%)  Dispatch Cost 0.5%  (2.1%) 

Board of Directors Meeting

March 29, 2018

Category February Variance from Budget

($ in millions)

Year to Date Variance from Budget

($ in millions)

Net Income $0.5  $0.9  Debt Coverage .29x  .29x  Revenues $ -  ($0.6)  Operating Expenses $0.6  $2.0  Capital Additions $0.9  $2.3 

Financial Summary

> 2%  Favorable | 2% to -2%  At or Near Budget | < -2%  Unfavorable

Board of Directors Meeting

March 29, 2018