Date post: | 26-Dec-2015 |
Category: |
Documents |
Upload: | alice-anthony |
View: | 217 times |
Download: | 1 times |
Boulder’s Energy Future Project and Municipalization Exploration Study
Update
www.BoulderEnergyFuture.com1
AGENDA
2
I. The Municipalization Exploration Project and Why It’s Important
II. Where We Are Now
III. Where We Are Going
1. Work Plan
2. Schedule
3. Key Engagement Points
4. Council Decision Points
Municipalization Exploration Project
3
Objective: To evaluate strategies for a city-owned utility which supports energy future goals and guiding principles, determines whether those strategies can meet the city charter test for municipalization, and to provide city council with a strategy and recommendation on whether or not to proceed with municipalization.
To answer the questions:
• Can we municipalize? – Meets metrics• Should we municipalize? - Adds value
Why Boulder is on this path.
4
• Expired franchise agreement with Xcel• Seeking new ways to achieve community
greenhouse gas reduction and climate change mitigation goals
• To give residents and businesses access to:• Reliable power that is increasingly clean
and competitively priced
• Local decision making authority on where power comes from and new investments in emerging technology
Energy Future Work Plan
6
Phase 1: Develop StrategiesPost Nov. 2011 Election to 1st Qtr 2013
Phase 2: Strategy Implementation1st Qtr 2013 to ? (1-5 years)
Phase 3: Operationalize StrategiesUpon Completion of Phase II
Formulating a StrategyWhat do we mean by strategy?
• How and where we get our energy resources• What business structure meets financial
targets• What assets do we need to serve our
community• What investments do we need to make in
electric infrastructure• How we achieve excellent reliability• Other components needed to support the
community goals 7
Where we are now: Work Plan
9
Objectives:• Roadmap for creating utility of the future• Gain community support for the ultimate
outcome• Ensure integrity of the process• Documentation for third party evaluation
Consultants, technical engineers, local academics, community stakeholders and other interested individuals all contributing to analysis
Where we are now
10
• Assembled state and federal legal teams• Hired Executive Director • Council approved work plan• Staffed Energy Future team • Retained financial, engineering, and
modeling consultants• Selected modeling tools and collecting data
for analysis• Formed project stakeholder work groups
Municipalization Exploration Study
11
Tour of Regional Utility Substation
Where are we now: Draft Metrics
• Quantitative measurements related to rates, reliability and renewables
• Used to determine whether the Charter requirements have been met
• Worked with stakeholder work groups to develop metrics– Business Community– Academic Community– Activists
• Council to approve next Thursday, November 1512
13
Charter Requirement & Proposed MetricsCharter Requirement Proposed Metric
Rates do not exceed Xcel’s at time of acquisition
Average cost per kWh
Revenue sufficiency Debt Service Coverage Ratio
Comparable equipment, facilities and services to achieve a SAIDI of 85 and SAIFI of .85; 15% reserve margin; and, NERC compliance
Reliability compared to Xcel
Reduce GHG emissions Short and long term plan to meet or exceed Xcel
Increased renewables Short and long term resource plan to meet or exceed Xcel
Legal
Legal– Hired FERC and Condemnation legal counsel– Evaluating various legal strategies, but to
maintain the city’s negotiation position, these have to be kept confidential
– Looking at options to mitigate litigation risks, including stranded costs
– Ongoing PUC involvement – Continue to be open to discussions with Xcel
Energy14
FinancialFinancial Evaluation
– Issued RFP and selecting financial advisor specializing in public power financing
– Acquired financial modeling tools and identified data requirements, moving forward with an Excel spreadsheet based format
– Formed stakeholder work group to vet model assumptions and assist in data collection
– Output = Revenue requirement and rate comparability
15
Reliability
• Identified experts• Formed stakeholder work group• Researching regulatory and legal
standards • Collecting data • Output = Reliability recommendations
for infrastructure and operations
18
Resource Mix
Resource Mix– Evaluated resource planning and optimization
tools, selected one that already has 70% of what we need
– Forming stakeholder work group to help develop electric resource options and cost• Recruiting experts in energy efficiency, demand
side management, renewables, distributed generation, and transmission
– Output = Optimum resource plan with cost to integrate into financial model
20
Asset Acquisition
Asset Acquisition and Reliability– Formed team of staff and technical experts
• Includes engineers, appraisers, GIS data analysts, former utility (including Xcel) experts
– Held kick-off meeting to vet plan and approach– Identified and collecting data for use in valuation, able
to leverage off existing records– Issued Engineering RFP and selected asset valuation ,
separation, and reliability engineers– Output = Separation plan to integrate with reliability
and resource plan
21
Communications and Outreach
• Website, newsletter and other traditional communication pieces created and updated frequently– www.BoulderEnergyFuture.com
• Formed stakeholder work group• www.InspireBoulder.com for idea
collaboration on specific topics• Neighborhood outreach
22
Evaluation of Risk & Benefits/Impacts
Risk Assessment is part of entire work plan and is critical to understanding impact of various strategies– Strategies will be vetted for economic and
community benefits/impacts– Risks will be identified, as well as ways to
mitigate– Modeling value and risk with assistance from
a top economic expert in this field
23
Evaluation of Risk & Benefits/Impacts
Part of Risk Assessment is looking at what other municipal operations have done, both successfully and unsuccessfully.
–Longmont, Ft. Collins, Colorado Springs and many others have successful municipal electric utilities
– Also look at places that have experienced issues with their municipal electric utilities for lessons learned
24
Where we are going
25
Work Plan• Intense work plan analysis by staff
and work groups over next 4 to 5 months• Finalize 20 year models and
integrate between financial, resource, and decision analysis
• Collect data and do projections of cost, load growth, etc.
Where we are going
26
• Work Plan• Review best practices and benchmark
with comparable municipal utilities• Develop risk matrix and prioritize
strategies• Synthesize work group
recommendations and rank using cost, risk, value criteria
Where we are going
27
Community review of strategy(ies):
Your chance to provide feedback • Follow progress on website – each
working group has a web page• Through representatives on working
groups• Public outreach to neighborhoods• Jan. 21 to 31 public input on
municpalization strategies• Review and comment electronically
Where we are going
28
Strategy presentation to City Council in the first quarter of 2013
• Council will advise on moving forward• Will be an “off-ramp” opportunity
Where we are going
29
Post March 2013• Independent third party evaluation of strategy• Develop plan for implementation of Strategy• Develop short- and long-term aspirational
goals• Legal filings, if required• Purchase power and resource development• Define energy services plan • Rate and incentive design • Evaluate governance structure
Get Involved TodayFollow along at www.BoulderEnergyFuture.com
• Sign up to receive E-News reports and the monthly “Energy Future Today” newsletter
• Use online comment form for questions/feedback• Invite us to present at your meeting
Provide feedback on specific questions/areas at www.InspireBoulder.com
• Strategies will be vetted here
Contact Heather Bailey with questions/comments• [email protected] or 303-441-1923
30