Energy Consumers Advisory Committee

Transcription

1 IMPERIAL IRRIGATION DISTRICT Energy Consumers Advisory Committee Regular Meeting Minutes of November 5, 2018 IID Boardrooms: 1285 Broadway, El Centro Avenue 58, La Quinta A. CALL TO ORDER / PLEDGE OF ALLEGIANCE / ROLL CALL Chairperson Michael Anderson called the meeting to order at 6:00 p.m. and the Pledge of Allegiance was recited. The following members were present: El Centro Chairman Michael Anderson and members Thomas Brinkerhoff, Chad Cooper, Gerald Gauna, Esther Gomez, Gil Perez and Jeffrey Plourd La Quinta Vice Chair Steven Bayard and members George Christopher, William Enos, Lupe Ramos Watson, Patricia Saleh and Steve Sanchez Members Jacob Alvarez, Philip Bautista, Becky Broughton, Guillermo Hermosillo, Shorty Hickingbottom and Eric Reyes were absent. B. PUBLIC COMMENT Member Perez asked why the ECAC was not informed of the electrical rate revisions [published] in Sunday s newspaper. Ms. Belen Valenzuela, chief financial officer, apologized and explained that staff asked the board for authority to hold rate hearings. Revisions to rate schedules would be made [in accordance] with regulation and would not result in bottom-line changes; [street]light schedules, on the other hand, would incorporate energy efficient lighting, resulting in a reduction. Nevertheless, staff plans to bring the item to the ECAC in December following the hearings. Mr. Gauna expressed certainty the board would not [support] a rate increase. Ms. Valenzuela reiterated a rate increase was not proposed; rather, cities that install energy efficient lighting would see a reduction. Mr. Frank Oswalt, general counsel, recounted the ongoing matters between the County of Riverside and IID. On July 17, 2018, the county passed Ordinance No. 943, requiring IID reinstate net metering in the Coachella Valley. IID has since filed a lawsuit against the county. A hearing will be held in Los Angeles County Superior Court on November 7 to determine if a preliminary injunction would be granted in favor of IID, which stays the application and enforcement of the ordinance until the matter can be heard. Along with the lawsuit, IID s attorneys made a Public Records Act Request, but there was no response until August 2. On August 12, IID sent a letter to the county demanding it rescind the ordinance as it violates the Brown Act. Mr. Oswalt shared a PowerPoint presentation outlining electronic communications between representatives of the County of Riverside and Mr. Vincent Battaglia of Renova Energy that were obtained through the Public Records Act Request. He stated that this is a separate and serious violation of the law and IID intends to amend the complaint or file a new lawsuit against the County of Riverside. Vice Chair Bayard deferred to counsel whether the matter could be discussed in open session. Mr. Oswalt advised that any issue on the closed session agenda must be properly discussed in closed session; if the item is not on the agenda, the committee is not entitled to discuss it, but can ask questions. Vice Chair Bayard asked whether he had the right to make a citizen s arrest and ask the sheriff or state attorney general to enforce [the law], if he had proof against those individuals who violate the penal code of the State of California. Mr. Oswalt counseled that he is entitled to talk to local law enforcement officials, but he did not recommend a citizen s arrest. Mr. Christopher inquired if there are guidelines to follow in asking questions. Mr. Oswalt explained he could ask questions about that which was stated during the public presentation, but he cannot divulge elements of the litigation going forward as there is litigation privilege. Mr. Christopher asked if the phrase in Slide 2, A majority of the members of a legislative body, defines the [Riverside County] Board of Supervisors. Mr. Oswalt answered in the affirmative. Mr. Christopher inquired whether IID knows how many people were actually in communication and Mr. Oswalt disclosed that IID does not know at this time, but would learn. Mr. Christopher remarked that in order for the [Brown] Act to be violated, they would have to speak with three [individuals], but it is quite possible they did not do so. Mr. Oswalt agreed anything is possible, but two s said, Let s count the votes, and an action was [executed] 5-0 in support of the ordinance on July 17 with virtually no discussion. With nothing more, one can draw an inference from that, but there will be additional discovery to learn if there were other communications, he concluded.

2 Mr. Christopher stated the topic of Net [Energy] Metering was kicked around the last several years. Many people are in favor of NEM and issues arose when the program was cancelled and replaced with Net Billing. He commented that IID could continue to fight in terms of [reinstating] NEM, but with a tremendous amount of consumers in favor of NEM, he wondered if the end game is in the overall best interest. Mr. Oswalt said he respected Mr. Christopher s opinion and asserted there are legal and illegal ways to have one s voice heard to get a response one feels is important. Mr. Oswalt voiced that did he not believe, at this point, the County of Riverside employed the former, but has chosen the latter. Mr. Christopher inquired if the matter would be heard at Los Angeles [County] Superior Court. Mr. Oswalt confirmed there would be a hearing at Los Angeles County Superior Court on whether or not a preliminary injunction should be granted to stay the enforcement of Ordinance 943 until there is a hearing on the merits. Mr. Perez asked about that which [prompted] the county to act on [the ordinance] when they did not [previously] do so. Mr. Oswalt replied that Mr. Perez was asking for speculation and the s show an indemnity agreement came into being that [did not exist] in The indemnity agreement said the county would not need to pay legal expenses, the board of supervisors would not incur personal legal expenses and Renova Energy would pay all legal expenses, if they adopted the ordinance. He expressed doubt the agreement was in place in 2017, but there may be other explanations. Mr. Gauna commented that the private company was complaining because they could not extend their business due to the program having ended. The five IID Board of Directors represent Imperial County and Coachella [Valley]. If the day comes they have a seat on the IID Board of Directors, they will have a valid complaint. Chairman Anderson requested that the ECAC be advised if there is a decision. Mr. Oswalt assured he would have that decision to the ECAC Wednesday as the judge does not always make an immediate decision. C. CONSENT AGENDA 1&3.ECAC ATTENDANCE REPORT OCTOBER 2018 AND ECAC SPECIAL MEETING MINUTES OF OCTOBER 2, 2018 Vice Chair Bayard pointed out an error in the minutes on Page 7, which demotes the Chair to Vice Chair. Motion was made by Ms. Gomez and seconded by Vice Chair Bayard to approve the ECAC Attendance Report Year-to-Date October 2018 and the ECAC Special Meeting Minutes of October 2, 2018, as corrected. Motion passed unanimously. Mr. Steve Sanchez stated for the record that he missed the last meeting due to the schedule change. 2. BUDGET & STRATEGIC PLANNING SUBCOMMITTEE MEETING MINUTES Motion by Vice Chair Bayard and second by Ms. Gomez to approve the Budget & Strategic Planning Subcommittee Meeting Minutes of October 10, Motion carried with members Cooper, Saleh, Perez and Plourd abstaining. D. ACTION ITEMS ENERGY DEPARTMENT OPERATING AND CAPITAL BUDGETS Ms. Belen Valenzuela, chief financial officer, recapped the discussions at the Budget and Strategic Planning Subcommittee Meeting and provided a brief overview of the 2019 Energy Department s $581 million budget and the anticipated overcollection in 2018, which will be refunded [to customers] through a rate reduction on the Energy Cost Adjustment. Ms. Saleh asked the CFO to point out the changes made to the budget after it was presented at the last meeting. Ms. Valenzuela revealed there were no changes to the budget, except a correction made to the final budget book to Page G-3, Line 8, Public Benefit Charge Fund Balance, which should include $1,607,428 to fund the egreen Program. Referencing Page D-61, Mr. Plourd inquired about the legislative consulting services for $170,000 listed under Contract Services for Governmental Affairs and Communications. Mr. Antonio Ortega, government affairs and communications officer, identified the item as the contract lobbying firm, Mannatt, Phelps & Phillips, and added that 2018 numbers were used as a reference to project the $170,000 budget. The item requires a new service agreement in December. Mr. Plourd asked about the Contract Services for Salton Sea Operations and Maintenance in the amount of $250,000 on Page D-79 for Regulatory and Environmental Compliance. Ms. Valenzuela mentioned she would need to obtain that information and would convey her response through Ms. Gonzales. Motion by Vice Chair Bayard and second by Mr. Christopher to recommend board approval of the 2019 Energy Department Operating and Capital budgets. Motion passed unanimously. ECAC Regular Meeting Minutes of November 5,

3 Chairman Anderson thanked the members of the Budget & Strategic Planning Subcommittee including Mr. Christopher, Mr. Gauna, Ms. Gomez and Mr. Brian Macy, who has taken a position with Elsinore Valley Municipal Water District. He also thanked Ms. Valenzuela and her staff. E. REPORTS AND INFORMATIONAL ITEMS 1. CUSTOMER ASSISTANCE PROGRAMS Mr. Robert Fugett, general superintendent, Customer Service, outlined the three customer assistance programs IID offers: the Residential Energy Assistance, Emergency Energy Assistance and the Medical Equipment Energy Usage Assistance programs. He reported that REAP s average number of participants was 11,816 per month for the first nine months of the year. With actual costs at $2.9 million of the $3.9 million budget, REAP is currently 20 percent under budget due to lower unemployment and poverty rates. The EEAP has averaged 971 participants per month and the year-to-date budget is 15 percent under budget at $953,215. On the other hand, MEEUAP s average participation has grown significantly to 396 average monthly participants. With a $62,136 budget, the actual cost is overbudget at $74,618, a difference of $12,482. Nevertheless, the customer assistance programs will be under budget, overall. Mr. Fugett assured he would discuss expanding the 2019 program at the next meeting. Ms. Saleh asked if underutilization of the programs caused the program to come in under budget. Mr. Fugett said the assumption is the economy has improved such that employment rates have risen and poverty rates are down. Some participants are now gainfully employed and no longer qualified to participate. Ms. Saleh questioned why MEEUAP has risen. Ms. Fugett indicated that all 38 customer service representatives are now marketing the program so participation has increased. Ms. Saleh added that some people, who really need help are not able to ferret how to participate because they are too ill and she asked if staff has addressed that problem. Mr. Fugett answered that the situation has greatly improved. Ms. Ramos Watson voiced that some applicants have expressed concern about the difficult [renewal] process. She asserted that if [customers] are disabled, they are disabled and if [customers] need life support that will not change from one year to the next. She inquired if IID could be more flexible with the length of [the renewal process] and consider a longer period, given that something could happen within a year or two to the individual. She added that a year comes and goes quickly, especially when one must make a [doctor] appointment three months ahead of the expiration of the program to have the application renewed. Mr. Fugett assured it would be a recommendation staff would bring to the ECAC. Mr. Christopher asked whether IID conducts outreach to members or former members of the armed services that may need assistance. Mr. Fugett said that representatives are typically talking to customers who contact the call center or customer service centers and/or are at events. Staff works with the Communications office to [participate] in 12 to 15 events during the course of the year, but most work for MEEUAP is conducted over the phone, mail or . Vice Chair Bayard inquired whether any attempt has been made to contact the local Veterans Affairs offices. Mr. Fugett indicated they had not done so in the past, but the bill stuffer is [distributed] quarterly in which the customer assistance programs are marketed. Vice Chair Bayard recommended a poster be sent to the local VA to [expose] the programs to those who may [visit] the offices. Mr. Fugett conveyed that staff would follow up on the item. Chairman Anderson revealed he made a note concerning the MEEUAP and the difficulty with doctor visits. Staff previously advised that two or three months would be added and Mr. [Kevin] Kelley, general manager, also noted this was being repaired. Mr. Fugett indicated his recommendation would be to expand the program from 12 to 18 months to make that accommodation. 2. GENERATOR INTERCONNECTION AGREEMENT BETWEEN IID AND ORNI 33 LLC FOR THE 20 MW WISTER SOLAR PROJECT Ms. Jamie Asbury, deputy manager, Critical Business and Regulatory Transactions, explained that ORNI stands for Ormat Nevada, Inc. She prefaced her presentation with an explanation of why the item was being presented as informational. Ormat had certain requirements with regard to this project. ORNI has a power purchase agreement with San Diego Gas & Electric, which required them to have this agreement in place by October 31 or risk losing the PPA; therefore, staff opted to request board approval and then take the item to the ECAC as an informational item. Although staff preferred not to handle the approval process in this manner, they did so in order to ensure the project s commercial viability. She described that the interconnection agreement is for a 20 MW solar project located east of the Salton Sea and west of Niland in northern Imperial County, which ECAC Regular Meeting Minutes of November 5,

4 will export to SDG&E. The total interconnection cost for this project is $2.81 million. In this circumstance, the total cost of the interconnection is just the cost of ORNI s and IID s interconnection facilities, which ORNI will bear. [ORNI] plans to be in service by December 2019 so IID will bring additional items to the ECAC in which the district will need to expend funds to interconnect [the project]. Mr. Gauna referred to Page 23, Section 5.3.1, which states, The Transmission Provider shall design, procure and construct Interconnection Facilities, and he asked who would be doing the work. Ms. Asbury disclosed that both ORNI and IID would do the work. Then, Mr. Gauna inquired who would be paying IID to do the work and Ms. Asbury indicated ORNI would pay and would deposit funds to the IID. She added that Appendix A, the core part of agreement, is where the deal terms are defined. ORNI s milestone payments are listed on Page 112 of the agreement, which indicates that out of the $2.1 million [cost of the project], ORNI pays IID $1.5 million to ensure the district is covered for construction costs. Mr. Gauna referenced Page 24 in which it states the transmission provider can be fined $1,000 per day in cash for up to 90 days. Ms. Asbury confirmed that was correct and elaborated it is for liquidated damages in the event IID does not meet its requirements. She explained that the pro forma documents are not negotiated, rather they are pulled from the Federal Energy Regulatory Commission and embedded in IID s Open Access Transmission Tariff with the terms and conditions upon which IID uses for all generators. Mr. Gauna directed Ms. Asbury to Page 29, Section 5.6, Construction Commencement, and asked about the benefit to IID. Ms. Asbury related [the benefit] would be in the next agreement. Ormat was not certain at the time it applied for transmission service that it would have a power purchase agreement. Under IID s OATT, it is considered long term if [a generator] takes service for one year and [the agreement] gives [generators] rights to roll over for an additional term, which is Ormat s intent. [The agreement] generates about $170,000 a year in revenue to the district from the day the plant achieves commercial operation. Chairman Anderson expressed his appreciation for the explanation of how the cart came before the oxen. 3. SERVICE AGREEMENT FOR LONG-TERM, FIRM POINT-TO-POINT TRANSMISSION SERVICE BETWEEN IID AND ORNI 33, LLC FOR THE 20 MW WISTER SOLAR PROJECT Ms. Asbury explained that this document defines how IID takes its power and moves it across the system and out through the Imperial Valley Substation. Upon commercial operation, IID will be exporting under the current Economic Development Rate, gaining about $177,000 per year, depending upon Ormat s actual use of the facility. The generator arranged [the service] for one year and has a rollover right. It was her understanding Ormat intends to push that right as soon as it comes up, probably for the remainder of the 20-year agreement. 4. PUBLIC BENEFIT BUDGET OVERVIEW Ms. Sabrina Barber, manager, Energy Regulatory and Strategic Marketing, reported she was following up on a request from the October ECAC and the budget subcommittee meetings to explain how the funding for the Public Benefits works. She conveyed the primary funding source for all public programs is from the Public Benefits Charge, allocated annually off the forecasted revenue. For example, this year staff anticipated roughly $12.8 million of [revenue] for the program year. Based on that budget allocation, [funding] was split for the energy efficiency and rate assistance programs. The Public Benefit Fund Balance is untouched, unless directed by the board for special programs or projects; any transfer requires special board approval. There is a $2.5 million floor recommended to remain in reserve. She explained the Public Benefit Fund Balance and the year-to-date 2018 balance in greater detail and outlined the budgeting process. Mr. Perez asked about the [increased] expenditures in September Ms. Barber explained it was an anomaly--large expenditures for board-approved PB-funded projects are represented in the month they were posted. Vice Chair Bayard inquired if there was any danger of the PB Fund running out of money in any of the current programs. Ms. Barber responded that staff anticipates expenditures will be very near 100 percent of the overall program budget and overruns are not expected. There are funds available in other programs that can be utilized, if necessary. Mr. Gauna questioned why the New Construction Energy Efficiency Program expended $9,000 from January through September and will use the remainder of its budget during the last three months [of the year]. Ms. Barber disclosed that NCEEP ECAC Regular Meeting Minutes of November 5,

5 projects can take up to three years to be completed and those are projects currently in the queue that are expected to be paid by the end of the year. Mr. Gauna inquired if the ECAC approved [the expenditures]. Ms. Barber stated [the expenditures] are for the NCEEP, which has not changed in 10 or 15 years. Mr. Gauna asked about the money invested in Research and Development and Ms. Barber explained [the money] is typically for new program design, pilot programs and any necessary marketing or consulting. Mr. Gauna voiced that there was already a marketing budget of $172,000. Ms. Barber reiterated that the funds are for programs that are in development, whereas the Marketing and Events budget is specific to existing programs and community events. Mr. Gauna inquired whether the marketing budget was provided and Ms. Barber advised that Ms. Gonzales sent the breakdown by [to the ECAC] prior to the start of the meeting. Mr. Christopher asked Ms. Barber to comment on the Energy Rewards Program as it appeared to be over budget and he asked if the program ended. Ms. Barber explained the program is still running and the [expenditures] should be $1,051,364 instead of $1,551,364. Then, Mr. Christopher inquired if the program is projected to hit 100 percent of the budget by year s end. Ms. Barber affirmed. Mr. Christopher asked if budgets for highly successful programs can be increased if there are [other program] budgets that are not used. For instance, could the annual budget for the Quality AC Maintenance Program be increased and receive funds from the Energy Assessment program [budget]. Ms. Barber stated that at the end of the year, staff does not roll over funds; those funds go back into the fund balance as part of a true-up and staff starts with a new, clean cycle for the next program year. Staff could potentially reallocate among programs, if there was a need. Going back to Energy Rewards, she clarified that rather than $500,000, it would be $50,000. Mr. Christopher inquired if the $2.5 million floor was mandated and Ms. Barber disclosed it was a recommendation by the committee that was approved by the board. Mr. Christopher asked if Energy ever entertains changing [the fund balance] to a lower number so that IID could provide more public benefits to consumers. Ms. Valenzuela revealed that the district has never been in the predicament of having less than $2.5 million, but would entertain pulling from that fund balance if there was a recommendation by the committee for board approval to allocate more money to a successful program. 5. ENERGY DEPARTMENT GENERAL MATTERS Mr. Henry Martinez, energy manager, reported the following: On October 26, the district took over the purchase of the SunPeak Solar Project, a 23MW solar facility located outside of Niland next to the [Niland Gas Turbine] Plant. Dispatchers and operations personnel have been working to integrate that new facility into IID s system, which is the first solar plant the district owns outright. On the same day, Assemblyman [Chris] Holden visited Hudson Ranch [Geothermal Plant] to discuss geothermal development, marketing and [transmission]. IID is changing its operation from peak days, when there is demand of over 1,000 MW of load during the summer, to the low-load period, which is roughly half of the peak [500 to 550 MW] per day, thus causing a change in the way IID operates its transmission and generation systems. IID is also [observing] unusual loads heading north and is adjusting its system to accommodate the exports of energy. Ms. Barber and her staff, [in conjunction] with Citizens [Energy Corporation], orchestrated grants that were awarded to 60 schools in 20 school districts in the Coachella and Imperial valleys. Last month, the board awarded the grants to schools to modernize/replace air conditioning systems. Chairman Anderson requested an updated list of the schools that received grants. Mr. Martinez advised that Ms. Barber would send the list through Ms. Gonzales. Mr. Perez conveyed there are solar panels installed on both sides of Interstate 8 in El Centro and asked if IID is buying any electricity from them. Mr. Martinez articulated that there are several solar fields south towards the border and most of that energy is going to SDG&E, but IID does not buy electricity directly from those plants. ECAC Regular Meeting Minutes of November 5,

6 6. MEMBER COMMENTS Chairman Anderson announced that next month the ECAC will be seeking nominations for officers for the ensuing year. The chair also informed the committee that Ms. Gonzales has been working on the new [agenda] format and commented that the new format was not working for him. Vice Chair Bayard echoed his sentiment and added that the agenda lacks item page numbers, causing a headache. Ms. Gonzales apologized for the headache and explained that staff just transitioned to a webbased system that allows the online input of agenda items and agenda packet assembly. She is still tweaking the agenda and she has asked Granicus, the company with whom she is working, to incorporate page numbers. She will be massaging [the format] further to make the agenda easier to read. Mr. Christopher asked if the PowerPoint presentation, which was presented by the staff attorney will be made available to the committee. Ms. Valenzuela indicated it would be shared with the committee, per the general manager. Ms. Saleh requested a report on the legal matter presented today. She recounted the [issue] started with a particular problem people who signed up for the solar program were no longer receiving NEM benefits because IID stopped [the program]. All of the sudden, it has become a general rule that all people have NEM payoffs available to them, but those who cannot [install] solar rooftops would have to bear the brunt of keeping the normal electricity going. She said she saw no explanation of that in the description. Somehow, IID must make the point that it does not want its lower-income patrons bearing the brunt of keeping the electricity going when solar fails. Nothing [included] in the report today would resolve that. Chairman Anderson listed all the deliverables gleaned from the meeting, including the Superior Court ruling, the rate hearing notice, the list of schools provided grants and the final tweaking of the agenda. Then, he thanked staff for their presentations. 7. ANNOUNCEMENTS: The next ECAC Regular Meeting will be held Monday, December 3, ADJOURNMENT There being no further business, the meeting was adjourned at 7:35 p.m. ECAC Regular Meeting Minutes of November 5,