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Home My WebLink AboutMinutes 2000EVANSTON ENERGY COMMISSION MINUTES Friday - December I, 2000 'Room 2404 — 7:15 a.m. CIVIC CENTER MEMBERS PRESENT: David Grumman, Jackie Brown, Ray Doolin, David Kraft, Del Leppke, Kerry McKenna, Roy Warmington, MEMBERS ABSENT: Ronald Nayler, Rudy Wolfson PRESIDING OFFICIAL: ' David Grumman, Chair STAFF PRESENT: Dennis Marino, Mary Baaske OTHERS PRESENT: Bud Nesvig, Paul Morse CALL TO ORDER David Grumman, Chair of the Energy Commission, called the meeting to order at 7:20 a.m. WELCOME NEW MEMBERS Da, -id Grumman welcomed Jackie Brown and Kerry McKenna, two new Energy Commission members. lie asked the new members to give the Commission a brief summary of their professional background. Kerry McKenna said that he has lived in Evanston three years. For approximately the last eighteen years he has lived in Japan, Indonesia and, most recently, Thailand. He said he was always involved in utility development projects, fuel sales, and new power plants. Mr. McKenna is currently finishing the development of a 100-megawatt renewable fuel power plant he owns outside of Bangkok, and is scheduled for operation in 2005. lie said that plant runs on 70? o coal and 30% biomass (waste products from a pulp mill). Mr. McKenna said that he has spent his professional life negotiating with utility companies by selling them fuel, building power plants or getting power purchase agreements from them. Evanston Energy Commission Meetine -Minutes December 1.2000 1`.we Tvva He felt that a municipality like Evanston has a grrut deal of rtc,,loliating litmer, and be could be helpful to the Committee giving them an international tin what Fvanston's market is worth, and what the City can expect in negotiation with .1 variety kil utilitir•. Jackie Brown stated that she is the Suburban Director tier C0ngttsa\V0jtuut Jatt SchaIcowsky. After receiving a mechanical engineering degree twit [lake l tniversity, :let,.vas employed at a fiber optic company that sold fiber optic cable to varioua telephoto• companies. She %►ent back to school and received an MBA in Finance from the Fuqua School of Business. Ms. Brown worked as a financial manager/financial analyst for several contpattics. She has livid in E,6=ston for six years. David Grumman also welcomed observers Paul Morse and former Energy Commission chair Bud Nesvig. CONSIDERATION OF THE NOVEMBER 10, 2000 MINUTES David Kraft moved approval of the November 10, 2000 minutes. Del Leppke seconded the motion. With minor corrections, the minutes were approved 5 ayes and 2 abstentions (Jackie Brown and Kerry McKenna). Derry McKenna said that on page four, first paragraph, the comment about how much electricity costs to generate was not correct. He said that coal plant energy costs approximately S.05 a kilowatt hour, and he didn't know of any other energy, be it wind. solar or anything else that is Iess than 300% of the cost of'electricity generated by a coal plant_ (The Chair pointed out that if that figure, even if incorrect, is «hat the person said, then it should remain as is in the minutes.) PROPOSED 2001 MEETING DATES Dennis tilarino said that the Commission has always met in the first week of each month. alternating "fuesday through Friday. There are exceptions to this for January, July and September of next year. This was done because major holidays occur in the first week of the month Usually, a number of Commission members travel on the holidays and are not always back in time to attend an Energy Commission meeting if held in the first week. Del Leppke moved to accept the following meeting dates for 2001: Friday, January 12 Wednesday February 7 Thursday. March 1 Friday. April G Tuesday. May 1 Wednesday. June 6 Thursday, July 12 Friday, August 3 Evanston Energy Commission Meetint' - Ns inutes December 1.2000 p. 'lVe T@trce Tuesday, September 1 1 Wednesday, October 3 Thursday, November 1 Friday, December 7 All meetings start at 7:15 a.m, and are held in room 2404 in the Civic Canter. David Kraft seconded the motion; motion passed unanimously. SUNUNIIARY OF THE TECHNICAL REVIEW GROUP (TRG) QUARTERLY REPORT AND MEETING WITH A&PW COINEMITTEE For the new members, Dave Grumman explained that the Technical Review Group consists of two Energy Commission members (Del Leppke and Rudy Wolfson) and two consultants (Jerry Hoppe and David Metz). This is an independent technical review group for the purpose of monitoring and reviewing ComEd's commitment, under their franchise agreement, to update the Evanston electrical distribution system. Del Leppke stated that in 1999 the City agreed to a letter of agreement with ComEd that extended the existing franchise three years. During this time Evanston would review ComEd's progress and give ComEd an opportunity, to improve the distribution system and to prove that they are really willing to invest in improving that system. I -le explained that, at this point, Evanston is almost halfway into that three-year period. Referring to ComEd's latest progress report, Mr. Leppke-reported that, as of this time, projects 5 through 12 are essentially complete:. Those projects were mostly tree trimming, improvements of lightning arrestors and additional wildlife protectors on insulators in substations. Project 13 deals with trees that ComEd made available to the City to replace some trees that ComEd had cut down. He further stated that currently Projects I through 4 are significant long-term projects. Project 1 dealt with installation of SCADA systems at each of the substations within Evanston. Mr. Leppke explained that SCADA is a supervisory control and data acquisition system; it has been installed in 9 of the 13 substations. Project 2 is the upgrading of the distribution system in the south central part of Evanston. This project has been completed. but the: "I RG is waiting for information on what reduction in load actually occurred. Project 3 is improving, the backup of feeder circuits in Evanston. This project was due f'or completion in December, 2000, but probably will not be completed until early 2001. Dennis Marino mentioned that he has documentation for a planned outage for Evanston on November 8, jc� Evanston Energy Commission Meeting - Minutes December 1 2000 Pave Four November 14, and November 15. and the reason stated for the outages is a 4 KV to 12 KV conversion, which would be part of this project. Project 4 requires that ComEd examine all circuits that are loaded above 90% and inform the City what they will do to reduce that loading_ Mr. Leppke said that Project 4 Nvas broken down into two sections: one lists six circuits that .vould be studio and reported on, and the second part of the project is a blanket requirement that ComEd study all circuits loaded above 90% and inform the City what will be done. Fie added that ComEd is in the process of reorganizing its planning operation. In response to a question from Kerry IMcKenna.. Dennis Marino stated that the structtiri of the agreement with ComEd is in a Letter Of Exhibit attached to the Franchise extension. This %vas approved in July 1999. and that exhibit includes the 13 or so items that Mr. Leppkc referred to: ComEd is under obligation contractually to perform on those items. Project 4 is the City's major concern at this time, and ComEd's obligation is to do a study of feeders and to remedy situations where feeders have been overloaded. fr, its quarterly diicussions with ComEd, the TRG discusses numerous issues specifically involving these 13 projects. Secondly, tha TRG discusses other issues that have emerged either from ComEd or the City that either party feels needs to be remedied. Del Leppke mentioned that the Commission was monitoring ComEd according to the original Letter of Agreement. Mr. McKenna suggested that Commission members make a list of where ComEd is deficient, where they are late and have the City attorney draft a document to them stating that they are out of compliance in the following areas and serve them v6th this document. He felt this should be done quarterly so a paper trail can be made. Del Leppke explained that the TRG has expressed its concerns to ComEd about projects being late and pushed back. Del Leppke reported that the A&I1W Committee suggested that the 'l'echnical Review Group (TRG) meet with them independently of the quarterly report and spend more time talking with them to bring them tip to date. The A&PW Committee suggested that the TRG may want to go to the City Council titter the next quarterly report. 1'he suggestion was made that a large map of the City be brought to City Council to identify to the Council where ComEd has done work in the City. RECENT OUTAGES Dennis Marino reported that Max Rubin's records indicate that the only outages that he was informed about in they month of November were three planned outages in Southeast Evanston. He said that November continued the trend of recent months of no significant outages or period of outages except during two brief periods. The outage in \lay was due to a storm and there %'- s'a" A Evanston Energy Commission Meetine - Minutes December 1.2000 1`.tLe Five period in August %where there was storm -related damage and subsequent outages a day or t1rsa after the storm. ROY \VARMINGTON'S DRAFT PUBLIC RELATIONS `IENIORANUUM Roy Warmington said he did this memorandum at the request of Bud Nesvig. It was written so that, when a public relations person gets involved with the press or media. they %vouldi have something to look back on to give them a history of what this Commission is all about_ It was suggested that an introductory paragraph be done to state what this memorandum, is about. Dennis Marino said that he would write such an introductory paragraph and change the title of the memorandum. Dave Grumman asked the Commission to review this memorandum and send any changes or additions to Dennis .Marino. Mr. Marino asked that any changes be sent to him by December 15, 2000. The Commission thanked Mr. Warmington for dralling this memorandum. BUSINESS PARTNER CONCEPT Dennis Marino stated he has had two conversations with Steve Thomas, a former member of the Energy Commission. Mr. Thomas works for a subsidiary of Mission Electric and is verb: actively working in the power supply business and some related fields and is based in Boston. Several months ago laud Nesvig (former chair) invited Mr. Thomas to attend an Energy Commission meeting and make a presentation. Mr. Thomas is very enthusiastic about corning to an Energy Commission meeting. and a target date wws set for the January 12 meeting_. ACTIVITIES OF REGIONAL COUNCILS OF GOVERN,IIENT AND CITY OF CHICAGO Dennis Marino reported that he had spoken xvith Dave Bennett. Executive Director of the Northwest Municipal Conference. Mr. Bennett indicated that the City and various suburban groups have nmv interviewed all three respondents to the RFP for power supply (ComEd, Enron. and CEI). I le explained that Evanston was not a participant at this point but was monitoring this situation. MEMBERSHIP Dennis Marino said that several applications have been mailed out to names suggested lam, Commission members. it Evanston Energy Commission Mcctine -Minutes December 1.2000 %%t! •Six, DISCUSSION OF FUTURE FRANCHISE ISSUES Kerry McKenna stated that the City must develop a load profile because it will nL t bt possible to negotiate a franchise without one. Every city has a base load and a peak load. He recommended that the Technical Review Group work with ComEd as quickly as possible to, -set as accurate a load profile as possible so that some intelligent cuts in negotiations can be made. Del Leppke said there are certain rules regarding what goes in a franchise, and power supply may not be allowed. He was not sure what the ICC would allow the City to put in a franchise agreement and said that legal advice is needed. David Kraft suggested that the Commission invite former Energy Commission member Janet Goeltz Hoffman to a future meeting of the Commission to discuss legal aspects of a franchise. Mr. Kraft recommended that members bring in a list of what they «anted discussed about the franchise to the January meeting, and then take one hour of the February meeting for point by point discussions. COMMUNICATIONS Dennis Marino pointed out several articles of interest in the Communications. Communications were accepted into the record. ADJOUILNINIENT There being no further business before the Commission, the meeting was adjourned at 9:25 a.m. Respectfully yours, Mary E Qaaske Executive Secretary Community Development Department X EVANSTON E``ERCY COAIIIISSION MINUTES Friday - November 10, 2000 Room'_404 — 7:15 a.m. CIVIC CENTER MEMBERS PRESENT: David Grumman, Del Leppke, Ray Doolin, ' David Kraft, Roy Warmington, Rudy Wolfson MEMBERS ABSENT: Ronald Nayler PRESIDING OFFICIAL: David Grumman, Chair STAFF PRESENT: Dennis Marino, Max Rubin, Mary Baaske OTHERS PRESENT: Hans Detweiler, Policy Advocate, Environmental Law & Policy Center CALL TO ORDER David Grumman, Chair of the Energy Commission called the meeting to order at 7:25 a.m. Del Leppke mentioned that the Mayor would be presenting two names to the City Council for membership in the Evanston Energy Commission. Mr. Grumman asked Dennis Marino to request that an application for membership to the Energy Commission be mailed to an interested party. David Grumman welcomed I -fans Dctweiler, Policy Advocate with the Environmental Law and Policy Center. Mr. Grumman said that there would be a brief meeting of the Technical Review Group (TRG) today after the Energy Commission meeting. ACTIVITIES OF REGIONAL COUNCILS OF GOVERNMENT AND CITY OF CHICAGO. David Kraft said there were several things coming up in the nest year, one of which is franchise renegotiations with ComEd, and he thought that the City Council would be turning to the Energy Commission for ,%7able alternatives and recommendations. He thought that there were other kinds of negotiating activities that the Commission should investigate, including the solicitation of other North Shore communities to create an Evanston Energy Commission Minutes - November 10. 2000 Page Two access transmission corridor to other power supply sources. Mr. Kraft said that Mr. Detweiler had been investigating renewables and other kinds of Green Power options, and with deregulation, the City has the ability to consider some forms of aggregation, whether that is in the community or with outside partners. Dennis Marino asked David Draft to elaborate an the subject of the Green Power issue in the Chicago RFP. Mr. [~raft said in Chicago there would be 80 megawatts of power which will not come from traditional sources. Ile asked Mr. Detweiler to elaborate, Mr. Detweiler said that the City of Chicago coordinated a bid with 4-5 other municipalities, including Chicago, to buy pottier for the City's own usage. They have combined to purchase 400 megawatts capacity. Of those 400 megawatts, 80 megawatts are to be from renewable energy sources_ Mr. Detweiler said that the good thing about this project was that, because all these municipalities aggregated. it should allow- them to drive prices down. Because there has not been a history of large renewable energy purchases in the State of Illinois, this RFP was able to clearly demonstrate that there is no„, a market for Green Power. Mr. Detweiler said that, while Evanston had not participated in this initial RFP with Chicago, it might now be easier for Evanston and other municipalities to tag on with their own smaller arrangements. David Grumman asked if any bids had been received by Chicago. Dennis Marino said that there were three bids. one of which was from ComEd. David Kraft reported that, because of the coal plant sale that ComEd engineered, there would be a $200 million enerp- efficiency and renewable energy trust available for anyone: communities, businesses, individuals, etc. Ile added that the criteria would be established in January 2001. Mr. Detweiler said that the City of Chicago, as a result of its franchise negotiations, received $100 million for clean energy investments that is to be administered by the City of Chicago's Department of Environment_ In addition to the S 100 million, they secured an agreement with Spire Solar. a company that manufactures solar panels. Spire Solar is opening a factory in Chicago (which Will employ 100 people), and the City of Chicago and ComEd, as part of the franchise agreement, agreed to buy the first several years of output of the factory and are putting those panels up on highly visible public buildings. Del Leppke said that there is a legal commitment to reduce the amount of ozone producing materials and asked when the deadline was. Dennis Marino said that he was generally aware of such requirements, but would provide more specific information. Evanston Energy• Commission Minutes - Novemher 10. 2000 Page Three Dennis Marino stated that the City of Evanston was engaged in discussikons with architects and designers concerning how the Green Home Chicago Prag.atn could operate in Evanston. lie added that there is currently a prototype of a hcluse that would use a vrriety of rcne.vable resources and essentially is a demonstration project on a single-family-ltom4 basis. Mr. Marino said that a lot is now being searched for in Evanston where this hoticc can be built. David Grumman asked at what date the City would enter renegotiations.. Dennis Marino replied that the initial 3-year term lease agreement expires in July 2002 and at that point. the City has the option of making two one-year extensions. Mr. Detweiler said that the State of Illinois has created a Renewable Enea•t_v Sources program. This program has a 55-million-a-year budget, and that money is available in matching amounts f'or anyone who is a customer of an investor-o«ned t,61ity and wishes to invest in renewable equipment. I le added that the state provides matcLing grants of 50% to GU° o of the total project cost. This means that if the City of Evar—mon or any individual or company within the City of Evanston wants to buy solar pa-ziels, the State of Illinois voll pay 50% to 6V o of the cost. Mr. Detweiler said [he other source of funds is the Illinois Clean Energy Community foundation, which is a S225 million endowment for use for clean energy projects within the State of Illinois. Guidelines are expected to be released in January Mr. Detweiler said if anyone wanted to know what their individual housaold emissions are, he suggested they go to www.polutionealculator.org, enter in the dollar value of your ComEd bill, enter ComEd as the name of your power company and it wiJ show how much carbon dioxides, sulfur dioxide generated by the power that is being used for your home creates, Del Leppke mentioned that he had the opportunity to be in western and did not realize how extensive wind farms are in that part of the state. Mr. DezWeiler added that each tower generates enough electricity for 300 homes. Rudy Wolfson asked if facilities such as wind and solar are totally stand -None productive, or if are they subsidized. Mr. Detweiler said that wind ener4 k costs about 3 to 6 cents per kilowatt-hour compared to coal generation of 2 ! : to 3 cem:- per kilowatt- hour. He stated that where the winds are vigorous and you can do it ecorirymically, it could be competitive; where the winds are Iess vigorous, it still requires some added subsidy. Evanston Energy Commission Minutes -'November 10.2000 "Pa eg F4orr TECHNICAL REVIEW GROUP: DISCUSSION OF OCTOBER QUARTERLY 2000 MEETING WITH COMED Del Leppke reported that ComEd's completion progress looked good in all cases excep4 for Project 4. He reminded the Commission that Project 4 is the project in which Corrrfd promised to do studies on the feeders that were loaded above 90° c and, to come up with a plan for reducing the load to something closer to 809o. Mr. Leppke said that ComEd was not proceeding with that reduction as rapidly as hoped and they are behind schedule in relieving load on targeted circuits. He said that two circuits were identified that ComEd had not included in their circuit diaerams: feeders C4713 and C4716 had a high level of interruptions compared to the other circuits. Mr- Leppke said that ComEd reported they have taken a look at those circuits, attribute the high level of interruptions to tree problems and are schedule another tree -trimming session. He said he had a little difficulty with that report because four of the interruptions in one of those circuits .vere attributed to loose connections. Mr. Leppke thought that ComEd should focus on improving the loose connections rather than pointing to tree - trimming as the sole problem. The Commission discussed appearing before the A&PTV Committee on Monday, November 27. Dennis Marino stated that fie would be sending a communication to be included in the packet indicating that the Technical Review Group (TRG) will not be formally reporting because the TRG needed more time to review ComEd's response. Del Leppke asked if the Technical Review Group was an independent committee or a subcommittee of the Energy Commission. Mr. Marino responded that it was an independent committee. which includes two Energy Commission members, that grew out of the franchise negotiating team. COMED: OCTOIJER 31 REPORT Mr. Marino listed the following to-do list lbr ComEd, as a product of the October I I meeting: 1. Install a lighting arrestor in the transformer at the St. Francis office building. ComEd has put in writing that they will do that and would like to involve the City of Evanston in that process. 2. Initiate another round of tree -trimming. 3. Provide more timely information about recent loading experience. 4. Explain reliability issues with feeders C4713 and C4716 that are not on the circuit map and have the greatest number of interruptions. 5. Agreed to confirm the actual number of feeders that are ser%ing Evanston. 6. Will add a check mark in another column on quarterly reports when tasks in Exhibit A have actually been completed. 91 Evanston Energy Commission r f c 1„F)r.,... . Nfirintes - November 10. 2000 Pn eft' RECENT OUTAGES Max Rubin reported that there were four outages in the last month. He said that the outages wcrc minor in duration. ComEd stated that several of these outages were caused by wildlife contact. Max Rubin listed the buildings in Evanston that have emergency generators. In response to a suggestion by members of the need to begin discussing ideas and issues for the neat franchise, it was agreed that an outline of franchise agreement ideas should be an afienda item for the next Energy meeting. NEW COMED COMMUNITY RELATIONS MANAGER Dennis Marino reported that Mike Radzicwicz is the new Community Relations Manager for ComEd. I le explained that Greg Fetro retired. hIEtiIBERSHIP Dennis Marino reported that there would be two names submitted membership by Mayor Morton for in the Energy Commission at the next City Council meeting. Commission members discussed the need for more Energy Commission members, and reviewed progress on obtaining additional candidates. CONSIDERATION OF MINUTES OF OCTOBER 4, 2000 David Kraft moved approval of the October 4, 2000 minutes. Motion seconded by Del Leppke. D. Kraft wanted it stated in the October minutes that, until the Commission got a replacement, he would be happy to continue to serve on the Commission. With minor corrections, the motion passed 5 ayes and I abstention. COMMUNICATIONS Communications were discussed and entered into the record. OTHER BUSINESS Del Leppke reminded the Commission of an invitation for Mr. Steve Thomas to come to the December 1, 2000 meeting. Dennis Marino said he would extend that invitation this week. Mr. Leppke said that ComEd holds an annual regional update of what is being done in the region. Dennis Marino said that ComEd has held updating meetings in the last couple of years, but he is not sure it is an annual meeting. He said he would check into this issue and report back to the Commission. X Evanston Energy Commission .I ;;,;;:�, > ,''i F,. m" I Minutes -,November 10.2000 PaeeSiar ADJOURNMENT There being no further business before the Commission, the rmeeting adjourned at 9:25. Respectfully submitted Mary E Baaske Executive Secretary Planning Division Community. Development Department. il':r',� �, !' 'ja i � 2 i� I . f ! ! if i� 1C] I• �'. i Y k ENERGY COMMISSION MINUTES Wednesday, October 4, 2000 Room 2404 — 7:15 a.m. CIVIC CENTER MEMBERS PRESENT. DOOLIN, GRUMMAN, LEPPKE, NESVIG, WARMINGTON, WOLFSON MEMBERS ABSENT:' KRAFT, NAYLER STAFF PRESENT: MARINO, RUBIN, BAASKE CALL TO ORDER The meeting was called to order at 7:21 a.m. TECHNICAL REVIEW COMMITTEE: INITIATION OF QUARTERLY MEETINGS WITH COMED Rudy Wolfson reported that there would be a meeting of the Technical Review Committee (TRC) on Wednesday, October 11, 2000 at 9:30 a.m. Dennis Marino added that Dave Metz, Jerry I-loppe and representatives from ComEd would also be attending the Technical Review Committee meeting. lie said that the purpose of the meeting is to hear from ComEd regarding things they have done in terms of construction and whether or not they are on schedule. He added that ComEd and the TRC will discuss issues that have emerged that were part of the agreements, i.e.; reliability performance reports, design standards, issues related to loading of circuits especially with regard to back up feeders, and backup capability. Another issue to be addressed at this meeting is critical loads in areas around hospitals, police, fire stations, nursing homes, etc. Dennis Marino asked the Commission members to let himself or Del Leppke know if they plan to Attend the meeting Wednesday with ComEd. Evanston Energy Commission October 4.2000 - Minutes RECENT OUTAGES lltwtr Turn Max Rubin reported that there had been few outages in the precious month. Those that did,,incur were weather related. OTHER BUSINESS Bud Nesvig reported that he had attended a meeting at EIwood to see their new energy complex, He explained that the complex consisted of four new turbines built on the old Peeples Gas facility property. The purpose of this meeting was to get approvrl to operate fivz more turbine units. When the five additional turbines arc operating Elwood «ill have a capacity of 1330 megawatts - which is more than a ComEd nuclear plant. Roy W mungton mentioned that Elwood Energy is a subsidiary of People's Energy. Discussion ensued. CONSIDERATION OF MINUTES OF SEPTENTI3ER 8, 2000 Del Leppke made a motion to approve the minutes of September S. 2000. Ray Deolin seconded the motion. With minor corrections, the minutes were approved 6-0. MEMBERSHIP AND SELECTION OF TEMPORARY CHAIR Dennis Marino reported on his follow-up about an interested applicant for membership suggested by Del Leppke. The Mayor's office has faxed an application to this potential applicant. Del Leppke mentioned that he knew additional people who are interested in joining the Energy Commission. Del Leppke moved that Vice -Chair Dave Grumman serve as the Chair of the Energy Commission until there is a full Commission. Motion passed un-animously. At this time the new Chair, David Grumman presided over the meeting. Bud Nesvig mentioned that he has spoken with Steve Thomas. hl;r. "Thomas stated he would like to come to an Energy Commission meeting and discuss supplying power to the City. Del Leppke asked if it would be possible to talk about the range of pricing with Mr. Thomas. He thought it would be very useful if the Commission could understand from the private ventures at what price they would sell their electricity. I le thought that then. ;.ome economic studies could be started to see whether aggregation makes sense for the City. Dennis Marino said he %would be happy to contact Steve Thomas and ask hint to attend an Energy meeting, if this was the desire of the Commission. Members concurred they %would be interested in hearing from Mr. Thomas. Evanston Energy Commission October 4.2000 - Minutes Pace Three As their term on the Energy Commission had expired, Del Leppke made a motion to thank Roy Warmington, David Kraft, and Bud Nesvig for their years of service. Rudy Wolfson seconded the motion. Motion passed unanimously. COMMUNICATIONS Communications were discussed and accepted into the record. ADJOURNMENT There being no further business before the Commission, the meeting adjourned at 9:24 am. Respectfully submitted Mary E. Baaske Executive Secretary Planning Division ENERGY COMMISSION MINLiTEC Friday, September 8, 2000 Room 2404 — 7:15 a.m. CIVIC CENTER MEMBERS PRESENT: MEMBERS ABSENT: STAFF PRESENT: INVITED GUEST: CALL TO ORDER The meeting was called to order at 7:22 a.m. DOOLIN, GRUMMAN, KRAFT, LEPPKE, NESVIG, WARMINGTON, WOLFSON NAYLER MARINO, BAASKE Richard Mathias, Chair, Illinois Commerce Commission ILLINOIS COMMERCE COMMISSION (ICC) REPRESENTATIVE Mr. Mathias explained that the ICC is the public utility commission for the State of Illinois and has been in existence since 1914. The ICC has the authority to regulate, to a great extent, the electric, gas, and telephone industries as well as the investor -owned water companies. The ICC also has some vestige of control over transportation such as trucking, and railroads. Mr. Mathias stated that the initiatives the ICC undertook in 1998 and 1999 continue today with intense discussions with ComEd senior management and others concerning their obligations to serve, including increasing spending and resources allocated to their basic infrastructure, including generation. The ICC staff monitors ComEd on a daily basis. He added that there have been two very complete management audits. The Illinois Public Utility Act allows the Commission to hire and obtain outside consultants that go into a company and review its operation. One of the things learned from one audit was that some cables of ComEd seemed to be unreliable and, at the present time, there is an inadequate way of testing whether or not those cabins are viable. They also found that over the past years there has been continual overload of the distribution system. There is an ongoing report called the Liberty Report which was completed by the Liberty Group, a consulting firm that is in the process of reviewing the entire management structure of ComEd. cvmstun Eat,-67 Con-: , _=- Mr. Mathias said that the current management of ComEd is certainly trying and has made a huge effort, and is very responsive and receptive to suggestions. He added that ComEd also undertook their own internal audit and has an aggressive program working with municipalities. Since December of 1997, every major electric company in Illinois has been sold to an out of state company. David Grumman asked what was driving the sale of the electric utilities. Mr. Mathias replied it was consolidation within the electric business. The reason Illinois utilities are being bought by out-of-state companies is that the restructuring law encourages it. There is a very traditional type of approval process if an IIlinois company buys another Illinois company. It has to go through the ICC ' for approval; but if an Illinois company is bought or buys an out of state company, the ICC has no statutory or regulatory authority. Generation plants that used to be owned by the electric utility are almost universally being moved out of the regulated arena to a non -regulated arena or they are being sold tois third party. ComEd sold all" of its fossil fuel plants to Mission Energy but retained the nuclear facilities because nuclear facilities are in the non -regulated area. Mr. Mathias said that eventually the ICC would regulate only the so- called "wires" distribution company. The generation company will be in a unregulated entity and be able to pass their costs through to the customer. The State does not have any regulations for siting of peaker plants, but the EPA has regulations as far as the operation of peaker plants. Dennis Marino asked if Mr. Mathias saw a changing Federal role in terms of the regulation of bulk power. He said the White House had issued an executive order related to California in terms of asking FERC to more thoroughly investigate the bulk power market there. He asked if Mr. Mathias saw that kind of role escalating. Mr. Mathias said that it could, althouzh FERC is not unlike other regulatory agencies: it has several members and those members have to agree for the agency to do anything. Del Leppke said that he understood that the ICC had held sort rate -making sessions on distribution. Mr. Mathias said that the ICC had held Delivery Tariff Service Proceedings. Mr. Leppke asked the status of those proceedings. Mr. Mathias reported that the Delivery Tariff Service Proceedings have largely been concluded, and there would be another round whtzn they go to customer choice or residential customers in 2002. This only applies to those customers who exercise choice and have a new supplier. Del Leppke asked about the rate -making procedure when you have a bundled service and an unbundled service covering the same distribution system. Mr. Mathias said that these were hotly contested proceedings. Del Leppke asked if there is any rule of thumb that the ICC u_cs as to the allocation of funds for continued maintenance and preventative maintenance. Mr. Mathias replied that there is not. David Kraft asked if, currently under the law, there is any recourse in the case where Edison allocated a certain amount for improvements and distribution and then failed to construct these improvements. Mr. Mathias said that if he meant that ICC saw that ComEd Lmderspent and fined them, the answer is *A' Sv"cnrton l;^_a-Fy '_o : dss:1s:i Z. 2CC.i pap."-, Three no. He added that the penalties were set in 1914 when the El.ctric Utility Law was enacted.' The' ` : ` ' penalty provisions that were enacted in 1914 arc basically the identical penalty provisions that we have today. $2.000 per day is the maximum tine. David Grumman asked if the [CC would rely on any input from the Energy Commission. Mr. Mathias replied tha. the [CC would welcome such input. David Kraft said he was concerned about a decision being rr,sde that service is provided on the number of dollars spent. Historically, ComEd spent hundreds of millions of dollars on its nuclear plants in the 1990's. A few years back, the ICC concluded a fairly compc_hensive initial survey of quality of product and quality of delivery and standards. He asked if tberc are going to be any further refinements on that survey, and if there are areas where communities can add to that mix ofse:tting those standards. D. Kraft inquired if can start looking at delivery in terms of quality of product instead of dollars spent; Mr. Mathias said "absolutely". Mr. Mathias said that the role of the ICC has got to be better at its monitoring performance and making certain that the performance measures we use as a Commission are up-to-date. There have been intense internal discussions about whether or not those standards are appropriate, and clearly they arc not. The difficulty with the electric restructure is that it has placed huge work burdens on the small staff of the ICC. Del Leppke said that the ComEd service territory is very large and that it is very difficult to get adequate data to look at a specific segment. He asked if the ICC could be of assistance to the Energy Commission in getting information on a segment rather than a broad -based report. Mr. Mathias said that the [CC could help. He added that until recently ComEd didn't know who had power and who didn't. The only way ComEd knew that you didn't have power was when you called and told them your power was out. ComEd has made new improvements, and that is no longer true. CONSIDERATION OF THE MINUTES OF DULY 28, 2000 Del Leppke moved to approve the minutes of July 28, 2000 with the clarification by Roger Crum. Ray Doolan seconded the motion. Dave Grumman suggested that Roger Crum's memo be attached to the July 28, 2000 minutes and an asterisk be placed in the minutes explaining the attachment. Motion passed. (6 ayes and one abstention (Dave Grumman) Dennis Marino said he would draft a letter to Mr. Mathias thanking him for appearing before the Commission. MEMBERSHIP, ELECTION OF OFFICERS AND FUTURE OF ENERGY COMMISSION Bud Nesvig mentioned that as of September 15. 2000 three of the members' terms would expire and they would no longer be on the Commission, leaving the Commission with five members, which is not enough for a quorum. After much discussion, Dennis Marino suggested that, instead of taking significant action today, this discussion be held until the October 4 meeting. Evens+.on Energy Cfl=ission Mil-lUtES - S---Jisr":;er 2. 2000 OUTAGES R e�-- Four Dennis Marino said that the report, in terms of recent outages, continues to be positive. Th= have been very few outages, and those that have occurred have been of short duration -- consist of ten minutes or less with a few exceptions. During the period of August 6 - August 9, there %N=e some outages that were in the range of two hours in duration. There was another one that was approximately 3 & 1/2 to 4 & 1 /2 hours. August 6 outages were due to heavy storms. Outages occurring on August 7 and 8 were not related to the storm. These outages vdll be focused upon when the Technical Review Group meets with ComEd in October. COMED REPORT TO THE CITY OF EVANSTON OF JULY 31, 2000 AND PLANS FOR REVIEW BY THE TECHNICAL REVIEW COMMITTEE Bud Nesvig stated that he reviewed the July 31 report and checked it Against the two previous reports. The only changes between them is that one percentage of completion changed from 30% to 40% and one changed from 40% to 50%. Dennis Marino stated that this report is required under a franchise agreement and is the first of several steps for the Technical Review Group when it meets with ComEd in October. The goal is to start that process in October and get at those issues mentioned. BUSINESS PARTNER EFFORT Bud Nesvig mentioned that he had spoken with Steve Thomas of Citizens Energy (which has been merged with Mission Energy); Mr. Thomas would Iike to meet with the Energy Commission and discuss providing electric power to the City of Evanston. Del Leppke thought that the Commission should invite a speaker who is knowledgeable about aggregation to come to one of the Energy Commission meetings. Dennis Marino said he would find a speaker to come to a Commission meeting. DRAFT "PUBLIC RELATIONS OUTLINE" PREPARED BY ROY WARMINGTON This agenda item was held over until the October 4, 2000 meeting OTHER BUSINESS Bud Nesvig mentioned that on September 14 at 3 p.m., the Pollution Control Board for the State of IIlinois will hold a meeting at Joliet Junior College, K Building Auditorium, 1215 Humble Road, in Joliet and urged Commission members to attend. EVF.ai.,st-on Energy C-oini moil Minutes - Sn+em'.-v—, 8. 2440 ADJOURNMENT Pwr$ ' ~ Ve There being no further business before the Commission, the meeting adjourned at 9:06 a.m. Respectfully submitted, Mary E. $aaske Executive Secrctary ENERGY COMMISSION MINUTES Friday, July 28, 2000 Room 2404 — 7:15 a.m. CIVIC CENTER MEMBERS PRESENT: DOOLIN, KRAFT, LEPPKE, NES1'IG, WARMINGTON, WOLFSON MEMBERS ABSENT: GRUMMAN, NAYLER STAFF PRESENT: MARINO, BAASKE. F CALL TO ORDER The meeting was called to order at 7:15 a.m. MEETING CANCELLATION Because the July meeting was held the last week of July, the Energy Commission canceled the August meeting. The next meeting date was set for September 8, 2000 and discussion ensued regarding the September agenda. TECHNICAL REVIEW COMMITTEE: REPORT TO A&PW FOR PERIOD ENDING 3-31- 2000. Del Leppke stated that the written report was included in the packet sent to Commission members and asked if there were any questions. Dennis Marino added that the minutes of the A&PA' meeting where the presentation was made, primarily by Del Leppke, were also enclosed. Mr. Leppke summarized the report by saying that the Review Group has concluded that ComEd is complying with the agreement and has demonstrated satisfactory progress. However, because there has not been any major storms during the period represented by the outage and outage duration report, he felt the report did not give a complete picture. He added that the appropriate loading of circuits and the backup capacity requires the continuous focus and attention of the Technical Review Group. Del Leppke mentioned that there would be a new distribution system planning supervisor at ComEd at the end of this planning cycle (November 2000). and that they would have a written policy for planning. k Energy Commission Minutes -.Ialy 28.2000 Pa e� Two CONSIDERATION OF MINUTES OF MAY 2, 2000 AND JVNE 7, 2000 The minutes of May 2, 2000 were approved with minor changes. (i ayes. I abstention) The minutes of June 7, 2000 were approved with minor changes. (5 ayes, I abstention) FEEDER LOADING AND SUBSTATION CAPACITY Because ComEd has not shown a willingness to provide information regarding the feeder loading and substation capacity of the distribution system in Evanston without charge, Bud Nesvig asked for a motion to ask what ComEd would charge to give the City that information. Motion passed r t unanimously. BUSINESS PARTNER STATUS } David Kraft made a motion to contact those power suppliers that said they were going to submit ti i reply and ask why the reply was not submitted. Del Leppke seconded the motion. Motion passed unanimously. Mr. Kraft stated that if the Commission keeps burning bridges with frivolous requests that are not backed by City action, there is no purpose in proceeding. AGGREGATION Del Leppke asked what the City of Evanston's relationship was with the Northwest Municipal Conference (NWMC) Alliance Group. Dennis Marino replied that the City has been involved with NWMC on many issues related to energy. The City has deviated with them in the past, particularly on the adoption of the Northwest Municipal Franchise Agreement, which they adopted and we did not. He said this current effort has evolved from a three or four year effort of Chicago to aggregate load among its major governmental agencies (Board of Education, Chicago Housing Authority, the City and other entities). They have now bonded with some in the northwest suburbs to see what they can do in terms of this RFP and get a response from power suppliers. The City has decided to monitor that carefully and not participate at this point_ The City is also vcry interested in aggregation, but is interested in terms of taring districts in this town. He added that the City is monitoring what other things are going on around the country in terms of aggregation. Del Leppke said his main concern was that the City establishes a relationship with other municipalities, especially North Shore communities that have a common interest. That relationship would be principally reliability focused, but not exclusively. REPORT OF MEETINGS INVOLVING ENERGY COMMISSION Bud Nesvig reported that he and Del Leppke had a meeting with Roger Crum. Nir. Nesvig said that the City Manager said he did not see any alternative to ComEd providing power, and was continuing to have interest in aggregation. r Energy Commksston Minutes _July 19,2000 Pace Three Del Leppke read from his minutes of that meeting which included his understanding that the City Manager felt that the electric system is not a high priority on the Cite agenda, the City sh-,-suld not subsidize electric system innovations, and the Business Partner Project was a waste of et[ort. lic added that the City Manager said there is a need for consolidation or cooperation among municipalities in order to get the clout to get a hearing at the 1CC. Mr. Leppke said that the City Manager felt NNVNIC was too broadly based and that the Conference of Suburban ;Mayors is now more effective. David Kraft said there are opportunities in the future where the City and other communities could get substantial grants. He added within a month or month and a -half the Energy Efficiency and Renewable Energy Trust will have its guidelines in place for applying for programming and that amounts to $225 million dollars. Mr. Kraft asked how much of the original $300,000 that the Evanston City Council allocated for inspection of energy alternatives is still available. He asked for an accounting of what the money has been used for so far. * A copy of Mr. Crum's memo clarifying his comments is attached. MEMBERSHIP Commission members discussed the fact that in September, the final terms of Bud Nesvig and David Kraft expire leaving the Commission with only live members, not enough for a quorum. David Kraft asked who was responsible for appointing members to the Energy Commission. Mr. Nes%ig replied that the Mayor was responsible for appointing members to Commissions. Mr. Kraft stated that it was not in the best interest of the City to Iet the Energy Commission fall below quorum. ADJOURNMENT There being no further business before the Committee, they adjourned at 9:21 am. Respectfully submitted, Mary E Baaske Executive Secretary Planning Division ENERGY CONEMISSION MIN 3TE5 Wednesday, June 7. 2000 Room 2404 — 7:15 am. CIVIC CENTER MEtiIBERS PRESENT: DOOLIN, GRUMMAN, LEPPKE, NESVIG, WARIVIF NGTON, WOLFSON MEMBERS ABSENT: KRAFT, NAYLER E' 3 � r i'i . ,• r i I rt i f STAFF PRESENT: MARINO, RUBIN, BAASKE CALL TO ORDER The meeting was called to order at 7:20 a.m. OUTAGES Bud Nesvig distributed a letter he received from Greg Fetro regarding overloading of circuits. He explained that this letter was in answer to a letter he had sent to Mr. Fetro in which he had listed the feeders that are used for backup, and asked for additional information. Dennis Marino stated that to better understand the outage problem that existed a few weeks ago and the duration issues involved, it would not be unreasonable to request information from ComEd on the feeders that interconnect between Evanston and Wilmette. Dave Grumman mentioned that since ComEd is not giving the Commission information needed to make an independent judgment. ComEd should be asked for a guarantee that the backup circuits are adequate. Dennis Marino thought that the Technical Review Group should talk to ComEd on June 13 and ask for a synopsis of what happened beyond the trees coming down. and ask them to explain how they are able to put circuits back together. Del Leppke thought that the Technical Review Committee and the Energy Commission should address policy issues and make sure there is a clear understanding of ComEd's policy on the use of backup circuitry. Max Rubin reported on the outages caused by the storm an May 18. Commission members discussed duration, location and ComEd's performance resolving outages caused by that storm. Mr. Rubin distributed the ComEd Outage report for 1999. I1 Evanston Energy Commission Meeting - June_7. 200C1 _ Pa=.%z Two TECHNICAL REVIEW COMMITTEE. EVALUATION OF COMED PERFORMANCE Dennis Marino shared information and material gl%cn to the Tcchn3czl Review Committec by CocnL-d al their last mcetinc. He informed the Commission that the Tccha- zal Review Committee --voutd be meeting with ComEd on June 13. with the principal activity bring 3 tour of sites «hrrc there is construction underway or where the Committee or Davc,\tctz hass;1mviousli identified issues to be addressed. CONSIDERATION OF MINUTES OF MAY 2, 2000 Minutes were discussed, but consideration of minutes was postponed to the July, meeting d6c to hell: of a quorum. CONiED INITIATIVE TO COMPENSATE CUSTOMERS FOR OUTAGES Dave Grumman mentioned that information concerning reimbursement for outages was included in the latest electrical bill. AGGREGATION STRATEGIES NATIONWIDE Dennis Marino stated that a report on monitoring aggregation approaches in different parts of the country would be available at the July Energy Commission meeting_ Mr. Marino said that the City of Chicago had organized an Aggregation Alliance and invited communities in the Northwest Municipal Conference to be part of that alliance. Jay Larson {a staff person in Planning} did attend such a meeting in Chicago, and while no commitment to participate %vas made, staff did want to monitor it carefully. Del Leppke said that Chicago was putting together a buying alliance. and his thought was that there should be a consortium of north shore municipalities that would form- an organization that would be a po,.%-er buying alliance. He said that there are systems outside of Ev; -rston that influence the reliability Nsithin Evanston, Mr. Leppke said that the other communities could be contacted and told that if an alliance could be formed, that alliance could influence the reliability of the entire area because we would have all the components of what influences reliability under one entity. In reply to a question from Ray Doolin, Del Leppke said that looking st Evanston's system, there is a - high voltage line that comes from Waukegan and serves the Northbre,^i: substation, Skokie substation, and goes down into Chicago to one more substation. All (hose substa ions are on one transmission system. Most of the feeders that serve the northern area come out of those substations. Mr. Leppkc's thought was to start aggregating all of those substations because then you have all of the elements of reliability under one entity. Dave Grumman asked that Commission members monitor aggregation. , Evanston Energy Commission Meeting - June 7.2000 Fame Three RELATIONSHIP AND COMMUNICATION WITH ILLINOIS COMMERCE COMMISSION Ray Doolin advised the Commission that he had taken on another project and so would not hank the time to devote to this subject as he thought; however, he volunteered to assist someone else. l3crinis Marino said he was going to try to get a speaker to address reliability issues and is monitoring the web site and when there are significant events occurring, staff will try to get someone to speak: to the, Commission. Del Leppke's concern was that included in the rate for the distribution system_ tbcre is an adequate assignment of dollars for maintenance and upgrade. He was concerned that COrnF...d put back into Evanston an appropriate amount for maintenance and upgrading and that E%=ton's irevenue is not siphoned off to upgrade the rest of the system. COMMUNICATIONS Communications were discussed and accepted into the record. ADJOURNMENT There being no further business, the Committee adjourned at 9.20 a.m. Respectfully Submitted Mary E Baaske Executive Secretary Planning Division MEMBERS PRESENT: MEMBERS ABSENT: STAFF PRESENT: CALL TO ORDER ENERGYCOMMISSION ii1INUTES Thursday. May 2, 2000 Room 2404 — 7:15 a-m. CIVIC CENTER i ; +;, f : ;1l1 i i'. , l:i'i DOOLIN. GRUMMAN, LEPPKE, NAYLER, NESVIG, NVARMINGTON, WOLFSON KRAFT MARINO, RUBIN, BAASKE 'llic meeting was called to order at 7:20 a.m. CONSIDERATIONS OF MINUTES OF MARCH 2, 2000 AND APRIL 11,, 2000. With minor corrections [lie minutes of March 2, 2000 \%,ere approved (5 ayes, I abstention). The minutes of April I 1 were approved with minor corrections (5 ayes, 1 abstention). COMED PERFORMANCE Dennis Marino said that the following reports would be the basis for the initial review by the Technical Review Committee scheduled to meet .May 12, 2000: ComEd Outage Report for the period of , 01199 -3/31/2000, A Briefing on ComEd's Delivery System, ComEd's Reliability Work Activity for Evanston as of 1/i/98, as well as documents previously received. A meeting with ComEd is tentatively scheduled for May 17''. STATUS OF BUSINESS PARTNER PROJECT Max Rubin reported that there have been no responses to the RFQ sent out by the Purchasing - Department. He added that Purchasing called the companies that were sent the RFQ and some said they were not interested and others said they were interested and would be submitting a reply. NET. Rubin added that, to date there have not been any submittals. Commission members discussed %ways to proceed. COMED PERFORMANCE Commission members discussed the ComEd reports (A Briefing on ComEd's Delivery System.- ComEd April, 2000, ComEd's Reliability Work Activity for Evanston as of I/I/9S, ComEd's Capacity r, Evanston Energy Commission Minutes - Mav 12000 Paae Tw-o Work Activity for Evanston as of 1/1/98, and ComEd -1999 & 2000 - Overhead Triage Progress Report by Town) included in their packet. PROGRAM FOR PUBLIC RELATIONS SPECIALIST Del Leppke mentioned that he was interviewed by Beth Demers of the Round Table for an article she is intending to do on the status ofE-vanston's relationship with ComEd. Dennis Marino added that he had also spoken with Ms. Demas. Bud Nesvig asked Roy Warmington and Rude Wolfsoti to draft an outline listing the Energy Commission's accomplishments. (Rudd- Wolfson respectfully- declined.) This outline would be published at a later date so that all of the electric rate payers in Evanston can be aware of what the Energy Commission is accomplishing. ISSUANCE OF WORK PERMITS TO NON CITY OWNED UTILITIES AND INSPECTION TO ASSURE WORK IS SATISFACTORY Del Leppke said it was his understanding that the City's issuance of a permit ai-as not related to technical standards, but only related to the permission to use an area. Dennis Marino stated that the City's concern is the governance and quality of right-of-way. UNDERGROUND CABLES Commission members discussed the pros and cons of undergrounding electric cables. RELATIONSHIP AND COMMUNICATION WITH ILLItiOIS COMMERCE COMMISSION, ILLINOIS STATE LEGISLATURE, UNITED STATES DEPARTMENT OF ENERGY Dennis Marino mentioned that the Illinois Commerce Commission has a revised web site that lists all the documents, notices, meetings, minutes, etc. lie distributc-i a two -page printout from that site. At the request of the Energy Commission. Mr. Marino said he mould arrange for a staff person from the Illinois Commerce Commission to give a presentation at one of the Energy Commission's meetings. STATUS OF CRITICAL FACILITIES PROJECT Bus Nesvig read from a section of the City of Chicago's Department of Envi-onment report titled "Critical Facilities for Possible Outages." The section of thas report is as follows. "Because fixing ComEd's system is a multi -year task. the risk of summer outages remains. There are two programs being initiated by the City of Chicago to prepare critical facilities for possible outages. City owned critical facilities: Over two hundred city facilities including ;%olice, tire. fleet and water that must be operable during extended power outages. Field investibatiors are being conducted to determine electrical modification needed for generator hookup. This m-ork will be completed by this summer. Evanston Energy Commission Minutes - Mav 2.2000 Pale Three Procedures for rapid deployment of emergency generators to affected facilities wilt be in place by this summer". "Non -City owned critical facilities: City grant programs to pay for eleictrie- ] modifications necessary for generator hookup during potential summer outages. Applications with electrical plans and specifications will be submitted to and processed by the City. Grants will be 50% ufthe cost required to make electrical modifications up to a maximum disbursement. Final payment will be based on city inspection of work completed". Max Rubin explained that the City of Evanston does not have the money to do what the City of Chicago does_ He said that he and Jay Terry met with owners of critical facilities in Evanston and they (the owners) are responsible for keeping their buildings running. Mr. Rubin explained that he is buying two more generators this year for two of the fire stations. This means that three out of Eve fire stations will have backup generators. Commission members discussed various facilities in Evanston and the need for backup generators. MEMBERSHIP Bud Nesvig said he didn't believe there were any applicants for membership in the Energy Commission. Del Leppke mentioned that Mr. Kastilahn has had an application in the Mayor's office for three months, but to date has not been contacted. COi1iMUNICATIONS Commission members discussed the communications included in their packet. David Grumman brought copies of articles printed in the New York Times regarding deregulation. Del Leppke mentioned that he noticed in the communications that several cities are looking at how to accomplish aggregation. He said that there is one city in New York that has formed a municipal utility, not for the purpose of buying the distribution system, or for putting in gene-mtion, but to get itself ready for aggregation. The Commission members agreed that Evanston should take a closer look at aggregation. Dennis Marino said that he would discuss this with Dave Metz and others with expertise in this emerging area. AWOURNMENT ]'here being no further business before the Committee, the meeting adjourned at 9:14. Respectfully submitted, Mary E. Baaske Executive Secretary Planning Division X . MEMBERS PRESENT: MEMBERS ABSENT: STAFF PRESENT: CALL TO ORDER ENERGI' C011i1lISSION MINUTES Tuesday. April 11. 2000 Room 2404 — 7:1 5 am. CIVIC CENTER GRUMMAN, LEPPKE, NESVIG, WARNiIN'GTON, WOLFSON DOOLIN, KRAFT, NAYLER MARINO, RUBIN, BAASKE The meeting was called to order at 7:19 a.m. PROCESS FOR MEETINGS WITH COMED TO DISCUSS CONSTRUCTION PROJECT REPORT AND RELIABILITY REPORT DUE APRIL 15, 2000. Dennis Marino stated that, with ConiEd's reliability report due April 15, there would be one set of meetings with the Technical Review Group to discuss both the construction and reliability reports. He explained that one set of meetings would save both time and money. Having both ofthose reports at the same time, a more beneficial discussion could be had with ComEd as well as a more efficient use of our consulting dollars with Dave Metz and Jerry Hoppe. fir. Marino added that Dave Metz has retired from Stanley Consultants, Inc., but is willing to continue consulting for the Energy Commission. Bud Nesvig • oiced his frustration with getting requested information from Co1nEd. Dennis Marino stated that the issue of overloaded circuits continue to be part of the discussion with Coml:d in terms of what they are doing in that arena. He thought that the report reflects some of the things ComEd is doing, Mr. Marino added that there is also a difference ofopinion as to what is overloaded and what is not, Del Leppke said that the Commission received a statement from ComEd about their philosophy regarding overloaded circuits. He added that the statement did not include any guidelines as to what they do about backup circuits, which is one of the issues that needs to come out at the next review process. Mr. Leppke stated that the Commission needs to tell ComEd that the guidelines they presented to us are not adequate. He asked what the next step should be. Mr. Marino said that a second series of meetings and reviews will be set up as an opportunity to have a dialog with ComEd concerning issues in the franchise. He added that it is also an opportunity to raise I Evanston Energy Commission Meeting► — April 11. 2000 Pane Two additional issues that the Commission or Technical Review Group feels are important. Discussion ensued regarding meetings with ComEd and the information expected. RECENT OUTAGES Dennis Marino reported that there have bet:n a very limited number of outages. The most significant outage occurred April 8. Del Leppke mentioned he was in the area where the outages occurred. He said that there: were two outages, one lasting about twenty minutes and the second lasting approximately 45 minutes. It was mentioned that the most likely reason for the outages was 50-mile- an hour winds. ENERGY POLICY Dennis Marino stated that David Kraft had expressed some concerns and that he was waiting on Mr. Kraft's comments. Mr. Marino said he ,011 contact Mr. Kraft directly and get his written comments. As soon as his comments are received, staff will report back to the Commission. RELATIONSHIPS AND COMMUNICATIONS WITH ILLINOIS COMMERCE COMMISSION, ILLINOIS STATE LEGISLATURE AND UNITED STATES DEPARTMENT OF ENERGY Bud Nesvig asked who in the City was responsible for contacting the Illinois Commerce Commission, Illinois State Legislature and United States Department of Energy. Dennis Marino replied that it depends on the issue. There is not one staff person that contacts all three agencies. Del Leppke said he understood that the Illinois Commerce Commission (ICC) either has or is about to issue rate settings for distribution systems and asked if anyone else had more information. Dennis Marino said there was an article in the newspaper regarding the ICC issuing rate settings. He said that staff would follow up on ►%-fiat has transpinM so far. A more sismificant study and analysis of what the ICC is doing and what others may be doing related to the broader question is something that should be done by a consultant. PUBLIC RELATIONS Bud Nesvig asked if public relations staff person had been hired. Dennis Marino replied that the City has in its budget a public information staff position, but that to his knowledge no one has been hired. OTHER BUSINESS Roy Warmington showed the Commission two flexible hoses and connectors for gas ranges or gas dryers. fie said one connector and hose was the old style of bare brass. The other was the new style of plastic coated brass. Mr. Warmington stated that Peoples Gas recommends that hoses and connectors be replaced every ten years. lie added that Gas Companies would send a serviceman to your home to inspect and possibly replace the hoses and connectors for a small fee. Evanston Energy Commission Meetine — Anril 11.2000 pave Three COMED REIMBURSEMENT TO GLENVIEW/RELEVANCE TO EVANSTON Dennis Marino stated that he and Max Rubin would be meeting v%ith Glenview in the near future. MEMBERSHIP David Grumman mentioned that the Energy Commission -eems to be having a problem lately in reins able to have a quorum in attendance. Commission membm discussed various solutions to the problem. COMMUNICATIONS Commission members discussed the Wichita information included in their packet. Dennis Marino said he would continue to have staff monitor Wichita's energy program. After a brief discussion, the remaining communications were accepted into the record. ADJOURNMENT There being no further business before the Committee, the: meeting adjourned at 9:15 a.m. Respectfully submitted, Mary E. aaske Executive Secretary Planning Division ENERGY COMMISSION MINUTES Thua:,,day, March 2, 2000 Rocim 2404 — 7:15 am. CIVIC CENTER MEMBERS PRESENT: DOOLIN. GRUMMAN, LEPPKE, NESVIG, WARMINGTON, WOLFSON MEMBERS ABSENT: KRAFT. NAYLER STAFF PRESENT: MARINO. RUBIN, BAASKE CALL TO ORDER The meeting was called to order at 7:2I am. BUSINESS PARTNER STATUS A. Meeting with Administration and Public Works Committee/Approval of RFQ Del Leppke reported that on February 28, he gave a presentation to the A&PW - - _ v ' ` � ' Committee giving the reasons %hy the City should proceed with an RFQ. He said that after much discussion, the A&PU' Committee gave their approval to proceed with the RFQ. In response to a question from Bud Nesvig, Max Rubin replied that the Evanston Purchasing Agent had the RFQ and was reviewing it for clarification. He said that the RFQ would be mailed out in the next few days. Del Leppke said he had more names to be added to the list. Del Leppke asked if Wichita had disclosed who responded to their RFQ. Dennis Marim replied that they had not, but that he would call them. CONSIDERATION OF MINUTES OF FEBRUARN' 11, 2000 Roy Warmington moved approval of t1je February 11, 2000 minutes. Dave Grumman seconded the motion. Discussion ensued. The minutes were passed unanimously with a few minor corrections. Evanston Energy Commission Minutes — March 2. 2000 Pag2 COMED REPORT DATED JANUARY 31, 2000 Dennis Marino said that the Tcchnic_-J Review Group and outside consultants (Dave Metz and Jerry Hoppe) would begin to review the ComEd report during the month of March. Dave Grumman mentioned that the circuit maps attached to the January report did not have dates on them. He added that diagrams were not included in the report. D. Marino said he would ask ComEd for the diagrams. Commission members discussed the January 31 ComEd report. Bud Nesvig said that he has spoken to Man Poole, Director of Public Utilities, and Mark Curran, Assistant Director of Public Utilities in Naperville, and that they were quite %tilling to talk to the Commission. I le added that Commission members have been invited to go to Naperville and tour the system. Naperille, which owns its distribution system, is currently putting that system underground, the rest being approximately $1,250,000 per mile of streets. Commission members discussed the process of putting an electric system underground. Bud Nesvig asked %vhen the data for the 1999 outages would be available. Del Leppke said that information is usually available March 3I. At the previous Energy meeting, Bud Nesvig asked Ray Doolan to lead the relationship and communications with the Illinois Commerce Commission, the IIlinois State Legislature, and the United States Department of Energy. Ray Doolan said that he would not be able to assume these duties until after April 15, 2000. COMED REIMBURSEMENT TO GLENVIEWRELEVANCE TO EVANSTON Bud Nesvig asked about the matter of the reimbursement from ComEd for the outage in 1995 in relationship to Glenview. Dennis Marino said that he wanted to speak to the people in Glenview directly to get a better understanding of the specific situation in which they were involved. Bud Nesvig inquired about the lilting of a public information officer. Dennis Marino replied that it had been approved in the current budget, but he was not aware when the public information officer would be hired. ENERGY POLICY Del Leppke said that, at the last meeting, it vms said that Item 7 was too prescriptive to be a policy statement. Item 7 currently reads -The City shall conduct regular meetings..." He proposed that Item 7 read "The City, on behalf of its resident energy users, shall actively interact with the providers of energy to facilitate high quality service and monitor the upkeep of its energy distribution systems." r Evanston Energy Commission Minutes — March 2.2000 Pace 3 Dave Grumman suggested the Environmental Board be asked if it would like to c%imntent on the revisions to the Energy Policy. Del Leppke said that where Item 41 states "The City shall strive for the goals of=Iiability." he would like it to say "high reliability". COMMUNICATIONS Communications were accepted_ Dennis Marino highlighted several of the communications including the articles "Utility Deregulation and Zoning: An Illinois Case Study" Zonina News, November 1999 and "Deregulation: myth vs. reality" Urban Land, January 2000. Del Leppke mentioned that ComEd does not want to put in large-scale plants, bus is looking for others to develop smaller scale plants. He added that there is a lot of activity in the Chicago area setting up new smaller generator plants. Dave Grumman reported that he attended a meeting in Dallas where several papers were presented on micro -turbines, including the results of a prototype installation, which is quite small in terms of capacity but very efficient. Dennis Marino said that the Presbyterian Home is putting in a cogeneration facility. He will ask someone in from that entity to talk to the commission. OTHER BUSINESS Regarding the recent gas explosion in Chicago, Del Leppke asked if the Energy Commission should issue some kind of communication to the community regarding gas explosions caused by old connectors. Dennis Marino replied that Max Rubin, Director of Emergency Services, would be the person to issue that communication. ADJOURNMENT There being no further business before the Commission, it adjourned at 9:20 a.m HE.aaske bmitted, Planning Division x MEMBERS PRESENT: MEMBERS ABSENT: STAFF PRESENT CALL TO ORDER E`'ERGY COMMISSION MINtrTES Tuesday. February 11. 2000 Room 2404 — 7;15 a.m. CIVIC CENTER DOOLIN, GRUMMAN, LEPPKE, NESVIG, WARMINGTON, WOLFSON KR.AFT, NAYLER NIARINO, RUBIN, BAASKE The meeting was called to order at 7:20 a.m. REVIEW OF WINNETKA ELECTRIC DISCUSSION R7TH BRIAN hICINTURFF Commission members discussed the January I I meeting «7th Brian Mc[nturff, the Director of Water and Electricity for the 'Village of Winnetka. Bud Nesvig showed overhead graphs of electric usage of Winnetka thrt he received from Mr. Mclnturff. Discussion ensued. CONSIDERATION OF MINUTES OF.IANUARY 11, 2000 Del Leppke moved approval of the January 11, 2000 minutes. Ray Doolin seconded the motion. Discussion ensued. With corrections, the motion was approved unanimously. PENDING ENERGY COtiINIISSION RECOMMENDATIONS A. Business Partner Status Meeting with Administration and Public Works Committee, February 14, 2000 — Civic Center room 2404. 7: 00 p.m. Max Rubin stated that the Energy Commission was first on the Council Agenda for the February- 34. 2000 meeting. x Energy Commission Meeting* — February 11. 2000 Pate 2 Bud Nesvig said that he planned to highlight the Commission's accomplishments in 1999 and what the Commission intends to accomplish in the Year 2000. He suggested that Del Leppke and Max Rubin present the Business Partner Status report. Dennis Marino mentioned that at the last Energy Commission meeting he was asked to contact Wichita. Kansas regarding their issuing an RFP concerning Power Supply. He did speak to someone in %Wichita and was told that they woarld send a copy of the RFP in a few days. REPORT: EVANSTON COMED REVIEW GROUP In response to a question from Del Leppke, Dennis Xlarino said that the latest quarterly report had not been received from ComEd. Del Leppke reported that ComEd has been ,-vorking on the items they agreed to work on and that he has seen good progress. He added that ComEd has been forthcoming in giving information on what they arc doing and gave the Review Group an opportunity to go out and inspect their current projects. Mr. Leppkc felt that ComEd was well on their way to meeting their obligations. ENERGY POLICY Dennis Marino gave the Commission members copies of his memorandum "Suggested Revisions to the City's Energy Policy," along with copies of Resolution 33-11-95 "Establishing an Energy Policy." He said that these revisions were based on previous suggestions and wort: done by Del Leppke. Mr. Marino explained that, when the Energy Policy %vas adopted years ago, it did not give adequate emphasis to issues of service reliability that are now our principal priority. When these revisions are completed, they will be recommended to the AB:P«' in terms of changing the resolution that adopted the energy policy. Commission members discussed revisions to Resolution 33-R-95. Dennis Marino stated that he would incorporate the revisions and bring the revised resolution back at the next meeting. OUTAGES FOR EVANSTON FEEDERS Max Rubin reported that ComEd has provided a new updated system for outages: new soft%%are with more detail. He invited Commission members to his office to review the new system. Commission members discussed ComEd's outage reporting. Max Rubin said ComEd had a website listing outages, where the outages were, and how many customers were affected. In response to a question from Dave Grumman, Mr. Rubin replied you had to have a password to access this website, but he would print the report for the Commission members. Energy Commission Meetine -- I=ebruary 11. 2000 ftee 3 RELATIONSHIPS AND COMMUNICATIONS WITH THE ILLINOIS COMMERCE COMNIISSION, THE ILLINOIS STATE LEGISLATURE, AND THE UNITED STATES DEPART\TENT OF ENERGY Bud Nesvic proposed to have one of the Enern- Commission members make contact with ahe Illinois Commerce Commission (ICC), the Illinois State Legislature, and the Department cT Energy to keep up to date on what is currently being done. Ray Doolin volunteered to conauct the agencies. Del Lcppke mentioned that the ICC Ibas a web page that lists what hearings are scheduled. what rules and regulations are beinz modified or amended, and the text of new trules. Del Leppke felt that the City is headed into a pL=iod where the relationship,.ith the ICC amd the Illinois State Legislature is going to be very si=ificant. He said lie was not certain the Cin, was going to get a developer to build a new distribunon system. fir. Leppke said that one of tie only alternatives was to get the ICC to enforce new franchise commitments on ComEd so they would keep upgrading our system. The ICC m y need legislative authority to do that, so tffie only real option to getting a developer to put in. a new distribution system is to get the IeLL-1ature and the ICC to enforce a franchise that has corrsnitments for upgrading the system. He felt that the problem is that the ICC does not require ComEd to provide details of improvements in local areas. Dennis Marino said that it seems that two issue are being raised: (1) information about what is going on at the ICC, and (2) advocacy for ceruin issues. He said that the Commission has, not been specific enough in their requests to the ICC for information. Mr. Marino added that if the Commission was more specific, it might help es-tablish effective channels of communicaticm. He suggested that when the Commission is ready to recommend advocacy of specific legislate and regulatory issues, it should raise these topics,A&PW. Dennis Marino suggested that the Commission invite someone from the ICC to periodically come to the Energy Commission and give an u . erview of what is happening. - ADJOURNMENT There being no further business before the Corr_mittee, they adjourned at 9:22 a.m. Respectfully submitted, o =V,, �: Mary E. Baaske Executive Secretary Planning Division EN. • DRAFT— NOT APPROVED ENERGY COINIMISSION MINUTES Tuesday, January 11.2000 Room 2404 — 7:15 a.m. CIVIC CENTER MEMBERS PRESENT: DOOLIN. GRUMMAN. LEPPKE, MICHAELS, NAYLER. NESVIG. WARMINGTON, WOLFSON MEMBERS ABSENT: KRAFT OTHERS PRESENT: BRYA.N MCINTURFF STAFF PRESENT: MARII`O, RUB1N, HULNTER, BAASKE CALL TO ORDER iThe meeting was called to order at 7:15 a.m. CONSIDERATION OF MINUTES OF December 10,1999 Ron Nayler moved approval of the December 10, 1999 minutes. Roy Warmington seconded the motion. With minor changes to the minutes, motion passed unanimously. BRYAN MCINTURFF, DIRECTOR OF WATER :AND ELECTRICITY, VILLAGE OF WINNETKA Bud Nesvig introduced Bryan Mclnturif and asked him to give an overview of the Winnetka electric system. Mr. hlclnturff said that Nklinnetka's water and electric system is approximately 100 years old. He stated there has never been another water or electric company in Winnetka and that the water department predates the electric utility by seven years. Until 1971, the Village of Winnetka generated all the electricity it needed and was not connected to any other utility. Since that time, Winnetka has been interconnected to Commonwealth Edison by three lines that were built from Winnetka to Glencoe. These lines were then connected to three lines comine from Commonwealth Edison out of the Northbrook Substation. In 1996, Winnetka installed its own substation located on Happ Road. Mr. Mclnturff said that the electric plants have about 31.5 megawatts net capacity. Last summer Winnetka peaked at about 36.5 megawatts. At present, the electric plants could carry Yi Evanston Energy Commission • Meetine -- January IL 2000 Pact- Two Winnetka's loads for all but a few Nmrs on the hottest ten days of the year. Ule said that the three lines coming in from Commonwealth Edison have a normal operating capability o 2ri megawatts, the substation has the capacity of 33 megawatts, and the power plant leas the capacity of 31.5 megawatts for a total of approximately 85 megawatts. Mr. \fclnttirff said (hat ill the fifteen years lie has been in Winnetka there has never been a distribution transformer fail because of overload. He said that any, new power lines in Winnetka have to go in underground. The Village passed an ordinance outlawing installation of new overhead facilities. The ordinance states that if there are overhead wires already in existence, they can be modified, but if there are no overhead wires, they have to be put underground. Winnetka has started on a plan to put all the power lines on major streets in town underground and plan to be done in approximately eight years. Bud Nesvig asked if a resident has to pay for the drop %wire coming to the house. Mr_ Mcinturff replied that if the resident is doing construction, putting in a new service or upgrading his service, the resident has to put the wire underground. If the residence is on a major street the resident is requested to put a meter pedestal on the side of their house and the Village will install the service underground to that pedestal for free. The meter pedestal will cost the resident approximately $1,000. If the resident elects not to do that, the Village gill install a pole in front • of the house and charge them for running underground service to the poll. the cost of the poll, and new overhead service to the house which would cost approximately S 1.000 or more. ' Rudy Wolfson asked if his understanding that at under normal operating time. the cables are only 25% loaded was correct. Mr. INtclnturfl said that that number was correct, maybe even a little bit high. At summer peak the load is 36 megawatts and the cables are loaded at about half capacity. N-Jr. Wolfson asked if Winnetka's rates are the same as Commonwealth Edison's rates. Mr. Mclnturffsaid that in 1998 Winnetka's rates were a little lower than Commomvealth Edison. Also, in 1999 Winnetka had a 5% rate cut. in the Year 2000 there will be another 50io rate cut and an additional 15% rate cut in 2006. Dave Grumman asked if Winnetka had a step rate structure. Mr. Mclnturffsaid that there was a residential rate, a space heating rate. a water heating rate (this is being phased out), street lighting rate, commercial rate and school and government rate. Mr. Grumman asked what the charge was per kilowatt-hour. Mr. i Iclnturffsaid it was a little over ten cents per kilowatt-hour In response to a question regarding the amount of the Water & Electric Departments debt, Mr. tilclnturff replied that the Water and Electric Departments have no debt. x Evanston Enemy Commission Meeting — lanuary IL 2000 Pare Three Rudy 1Volfson asked ghat proportion of energy is generated by Airnetka and what proportion is bought. I'vlr. McInturff said that all of the power and energy is bought from Illinois Municipal Electric Agency. The Illinois Municipal Electric Agency leases the cmpacity of the electric plant. That lease costs the Illinois Municipal Electric Agency about S1.500.0003 year. He added that Winnetka generated 5% of the Villages needs. Del Leppke asked if the circulating water intake tied with the intake of the water plant. Mr. Mclnturff responded affirmatively. He explained that two 20" intakes feed the water plant. a 16" intake normally feeds the electric plant through the intake pond for the electric plant and the discharge plant for the electric plant and some of the piping between the intakes that can be cross connected. This does have a benefit in that once a year water is circulated in the grater intake and cooling pond, the loop is closed and temperature raised to approximately 95°. The water is given one last pass through the electric plant and then pushed out the intakes. He explained that this kills the Zebra Mussels in the intakes. Rudy Wolfson asked what the size of Winnetka is in comparison to Evanston. The following statistics were mentioned: Evanston has S square miles with a population of approximately 73,000. Winnetka has approximately 4 square miles with a population of approximately 12,500. Winnetka has a peak Ioad of about 36 megawatts while Evanslon's is a little over I:0 • megawatts. Evanston has 29,000 households, and 1N'innetka has 7.500 households. Mr. Mclnturff showed the Commission a map of %%'innetka and explained the layout of the utilities. BUSINESS I'ARTNER STATUS Max Rubin distributed the draft RFP. The Commission discussed changes and additions. Mr. Rubin said that the evaluation team would have a meeting to discuss the RFPs received and decide which of the companies they wanted to interview. Dave Grumman asked who were the members of the Evaluation "Ream. Dennis Nlarino replied that in the past the Evaluation Team consisted of staff and members of the Energy Commission, Ile added that the draft RFP will go to the Administration and Public Works Committee (A&PW) for consideration. Discussion ensued regarding procedures to take before sending out the 111:11. In response to a question. Dennis `larino gave some background regarding previous studies undertaken by the City including Duncan and Allen. R.W. Beck. Stanley Consults. and a workshop by SVBK. Giordano is a more recent consultant to the Energy Commission and the City regarding franchise issues. He added that the most ambitious undertaking was an RFP for a very comprehensive study of a municipalization option which occurred about flour or five }ears ago. SVBK was recommended by the Commission and tailed to receive Council approval_ X Evanston Energy Commission Meeting — January IL . 2000 Paee Four 4tax Rubin said that he would be putting the draft RFP on the Ciy Council Agenda for discussion for the January 24 meeting. Dennis Marino added th-aa the Energy Commission was already on the January 24 City Council Agenda for the annual 1"9 report and proposed priorities for the Year 2000. Ray Doolin made a motion to submit the RFP to A&PW for approval. Dave Grumman seconded the motion. Ray Nayler suggested that it be made clear that the approval was not for all four phases because of the economic implications. Approval could be for selecting a qualified company and determining what this analysis will be. Motion passed unanimously. ADJOURNMENT The balance of the Agenda was held over until the next Energy Commission meeting of Wednesday, February 2, 2000. Meeting adjourned at 9:22 a.m. Respectfully submitted, Mary E. ke Executive Secretary Planning Division U 0