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HomeMy WebLinkAboutMinutes 2006Evanston Energy Commission Draft Minutes of February 3, 2006 Members Present: Freeman, Haas, Leppke, Mereu, Morse, Siegfriedt, Wolfson Members Absent: Norte Call to Order The Meeting was called to order at 7:17 a.m. 2003 International Energy Code Discussion James Wolinski summarized his support for the 2003 amendment to the International Energy Code. He stated that staff believed that the benefits of adopting the amendment outweighed any concerns about Evanston requiring more of developers than adjacent communities which did not adopt the amendment. Implementation of the amendment will be through self certification. Mr. Wolinski indicated that the amendment will lead to 2x6 construction instead of2x4 to make room for insulation. He indicated that the amendment will be considered by the Planning and Development Committee and City Council on February 27, 2006. Mr. Wolinsla added that the City Manager supported the amendment and that it supports the green city strategy described in the draft strategic plan. Approval of Minutes Minutes of the meeting of January 12, 2006 were approved unanimously. Committee Reports Joel Freeman reported on the Committee's review of the peak demand data by building that had been supplied by Com Ed. He stated that these data underscored the need to coordinate conservation and reliability. One of the public sector initiatives he recommended considering is a conservation program for the Robert Crown Center which is a large electric user and is located on a heavily loaded feeder. Members agreed to discuss this approach with Facilities Management staff. Rudy Wolfson suggested approaching the two hospitals, Northwestern University and ETHS to discuss existing conservation efforts and new initiatives. Paul Morse suggested coordinating with Cam Ed concerning issues of feeder loading and conservation. Mr. Wolfson added that there are an increased number of circuits loaded over 90% and 4 over 100% per the loading formula. Mr. Morse reminded members that 100% loading does not mean the same thing to Cam Ed as what a typical person may think it means. Arlene Haas reported that the Illinois Commerce Commission approved the reverse auction proposal unanimously. The Illinois Attorney General has requested a rehearing and plans a lawsuit to stop implementation of the reverse auction. tits. Haas also commented that CORE, a new electric advocacy group is supported by Cam Ed and appears to be countering advocacy by some public interest groups. Del Leppke requested that there is a need for a better understanding of the reverse auction process. A comment was made that the reverse auction has been used in New Jersey and that it is useful to independent power producers who can bid on smaller supply requirements. It was agreed that a future meeting will include a speaker about the auction process. Assessment of Corn Ed Performance at the midpoint of the three year franchise extension Mr. Wolfson agreed to draft an outline of points to be made in a communication to the City Council's Administration and Public Works Committee. He asked that members and staff review, comment and add to his draft. The hope is to be on the A&PW agenda in March 2006. This item will be discussed at the next Commission meeting. Draft City of Evanston Strategic Plan Members agreed to discuss the draft plan at the next Commission meeting. Del Leppke commented that electric service reliability and maintenance and upgrading of the electric distribution system should be included in the strategic plan. Members agreed to meet on February 24, 2006 in order to comment of the strategic plan by February 28, 2006. Site Visit to Northwestern University Ford Engineering Building Members adjourned the meeting at 8:22 p.m. to travel to the new Ford Engineering Building, the first LEED certified building in Evanston. Dennis Marino Assistant Director, Community Development Director, Planning Division EVANSTON ENERGY COMMISSION MEETING MIN UTES Friday, April 7, 2006 Civic Center, Roam 2404 at 7:I5A.11t. MEMBERS PRESENT: Paul Morse, William Siegfriedt, Michael Smith, Rudy Wolfson MEMBERS ABSENT: Joel Freeman, Arlene Haas, Stefano Mercu STAFF PRESENT: Dennis Marino, Mary Baaske PRESIDING OFFICIAL: Rudy Wolfson I. CALL TO ORDER Chair Wolfson called the meeting to order at 7:19 a.m., a quorum being present. II. CONSIDERATION OF MINUTES OF FEBRUARY 24, 2006 Bill Siegfriedt moved approval of the February 24, 2006 minutes. Motion seconded by Paul Morse. Motion approved unanimously. III. INTRODUCTION OF NEW MEMBER Chair Wolfson welcomed Michael Smith to the Commission and asked him to tell the Commission about himself. Mr. Smith said he has been living in Evanston since 1997, has a B.A. in mechanical engineering and a M.A. in Environmental Engineering. He is presently a partner in an environmental engineering firm located in Rosemont Illinois. IV. COMMITTEE REPORTS A. Energy Supply, Conservation & Alternative Energy Sources Dennis Marino reported that Joel Freeman was not able to attend today's meeting and that the information distributed earlier was from Mr. Freeman. B. Governmental Policy and Legislative/Regulatory Actions Dennis Marino stated that he continues to look for a person to come in and talk about the Reverse Auction Process. Evanston Energy Commission Minutes. April 7.2006 Page Two C. Oversight, Monitoring & Inspection. Actions Rudy Wolfson said that there would be a discussion of the scheduling of the next meeting and a discussion of a presentation that will be made on April 11. He stated that Dennis Marino had put together an excellent memorandum on this subject and that he (Mr. Wolfson) would make a presentation on that memorandum. D. Distribution Systems Franchise Agreements Mr. Wolfson reported that the Franchise Agreement would be brought up at the A&PW meeting on April 11, He asked if any of the members of the Council had brought up the matter of the Franchise Agreement. Mr. Marino replied that the Commission would be heard, but because of the A&PW'S heavy agenda he was uncertain how much time the Commission would be given. He encouraged the members to attend the A&PW meeting. E. Presentation Paul Morse said to be prepared if someone asked why three circuits could be more than 100% loaded and still be acceptable. Bill Siegfriedt suggested that instead of comparing numbers with other districts that ComEd services, the Commission compare the City's current numbers with the City's numbers five years ago. V. ENERGY FUTURES POLICY PROPOSAL Dennis Marino reported that Evanston City Manager Julia Carroll spoke at the Network for Evanston's Future Earth Day Forum, held on April 2, 2006. The eight breakout groups of that meeting focused on affordable housing, climate change, energy, food policy, green building, solid waste recycling, transportation, and water. The aggregate community and city energy buying power under the Energy category was previously discussed and it is hoped that Dave Cook can give the Commission an update at the May 12 meeting. The Commission discussed aggregation in Evanston, its feasibility and what part the Energy Commission could play. VI. TECHNICAL REVIENN' GROUP Subjects to be discussed at the next meeting %vill include feeder loading, the issue on Harrison and Lincoln and a development update. Dennis Marino mentioned that last night the Economic Development Committee recommended approval for the redevelopment agreement for the Howard Street development which is 16 stories and 221 units. ComEd is aware of this development and has planned improvements to that area. Mr. Marino reminded the Commission that conservation was discussed briefly with ComEd at the last meeting, and the message the Commission got was that there were no current incentive programs in place. Rudy Wolfson thought it might be a good idea to Evanston Energy Commission Minutes — Anril 7, 2006 Paec Three bring the subject up at the next meeting with ComEd. Mr. Wolfson also mentioned discussing energy conservation with ComEd. VI1. COMMUNICATIONS Communications were commented on and accepted into the record. Vlll. OTHER BUSINESS The Energy Commission moved the May 5, 2006 meeting to Friday May 12, 2006 at 7:15 a.m. with the TRG meeting to follow at 8:30 a.m. IX. OUTAGES REPORT Dennis Marino stated there were no major outages to report. X. ADJOURNMENT There being no further business before the Commission, it adjourned at 8:47 am. Respectfully submitted, Mary Baaske EVANSTON ENERGY COMMISSION MEETING MINUTES Friday; 31ay 12„ 2006 Civic Center, Room 2404 at 7.IS A.M. MEMBERS PRESENT: Joel Freeman, Arlene Haas, Paul Morse, William Siegfriedt, Rudy Wolfson MEMBERS ABSENT: Stefano Mereu, Michael Smith STAFF PRESENT: Dennis Marino, Dave Cook, Mary Baaske PRESIDING OFFICIAL: Rudy Wolfson I. CALL TO ORDER Rudy Wolfson (chair) called the meeting to order at 7:20 a.m., a quorum being present. II. CONSIDERATION OF MINUTES OF APRIL 7, 2006 Paul Morse moved approval of the April 7, 2006 minutes. Motion seconded by Bill Siegfriedt. Motion approved 3 ayes. 2 abstentions. III. COMMITTEE REPORTS A. Energy Supply, Conservation & Alternative Energy Sources Joel Freeman reported on an insert regarding a program called Lock 12 included in his Nicor gas bill. He said that it was offered by an afiiliate of Nicor, that it is not a Nicor budget plan. When you join the Lock 12 plan, you will be given a quote, this price will not be exposed to price flux. IV. DISCUSSION WITH DAVID COOK, FACILITIES MANAGEMENT, ABOUT ENERGY PURCHASES, THE CENTRAL STREET FIRE STATION & THE GREEN STRATEGY OF THE STRATEGIC PLAN Dennis Marino introduced David Cook, assistant director of Facilities Management and said that Mr. Cook was here to speak: about several issues about which the Commission had previously inquired. One of those issues is the City's wholesale purchase of energy. Mr. Marino mentioned that Mr. Cook was very involved with coordinating the design of the new (ire station on Central Street and that he is co-chair of the City's Green Strategy as it relates to the Strategic Plan. Evanston Energy Commission Minutes — Mav 12.2006 Paee Two Mr. Cook reminded the Commission that electricity will be deregulated next year. He was unsure whether to hire a consultant or get a company to help with the transformation from a regulated industry to a less regulated industry. The City's contract with ComEd does not end until June of 2007. but the electricity gets deregulated and changed over in January 2007. Mr. Cook asked for the best wky to utilize the Commission's help. Dennis Marino said he understood that Mr. Cook's principal interest was moving on a strategy for wholesale energy for City facilities. The electric franchise that Mr. Cook referenced is a franchise with ComEd that is non exclusive that is for the whole city, but embedded in that are certain things that are pan of being a franchise city. Paul Morse stated that the Commission should inquire what ComEd intends to do regarding the different rates given to the City of Evanston buildings when deregulation goes into effect (presumable in January 2007). Mr. Cook said he was hiring a summer helper to go to all the COE buildings and write down the number of all the meters. This information would be used to get information from ComEd. Mr. Morse said that ComEd should be able to provide the City a list of all the meters and usage attached to those meters on City property. Mr. Cook replied that he has not been able to get all of the needed information from ComEd. Mr. Marino mentioned that the TRG would be meeting with ComEd and it would bring this subject to their attention. Rudy Wolfson suggested that Mr. Cook write an RFP and then the Energy Commission would look it over and make suggestions. Mr. Wolfson said that if it is available the Commission could look it over in the June 2, 2006 meeting. Bill Siegfriedt asked what problems Mr. Cook had with the gas rfp, what he was dissatisfied with, what goals he had for it that it failed to fulfill and perhaps the Commission could offer some help. Mr. Cook replied that the biggest problem was the contract and there is an organization tailed NASBY which has a standard contract which he thought he could start with and change as needed. Mr. Cook brought up the issue of conservation and the Commission discussed various ways this could be accomplished. V. TECHNICAL REVIEW GROUP (TRG) PREPARATION Dennis Marino went through the updated TRG agenda for the meeting with ComEd following the Energy Commission meeting. He said that holy the entire feeder system works in Evanston, He added that there are many switching spots in Evanston and the questions become which is priority, what do you want to pay for it, and is this something for certain priority sites that could be part of the future franchise agreement. Evanston Energy Commission Minutes — Mav 12. 2006 Paee Three Mr. Marino mentioned that another issue under targeted feeders has been raised by Mr. Siegfriedt which is that there are 12 town homes in the Harrison/Hartrey area currently being built and they are will be on a feeder that is currently at 100% or more. The other two projects that were focused on are Sherman Plaza and the Howard Street development. The CTA has committed to S57 million to a new train station on Howard Street. Arlene Haas suggested discussing future franchises and providing free electricity with ComEd. III. COMMITTEE REPORTS (Continued) B. Governmental Policy and Legislative/Regulatory Actions Ms. Haas said that there is a house bill to extend the current transition phase electric rate to 2009 and what is interesting is that there are a lot of cosponsors and there are more cosponsors signing every day. On the delivery rate side ComEd has asked for a rate increase and there are a lot of parties trying to demonstrate to the ICC that ComEd has artificially increased its expenses to justify the rate increases. The ICC will make its decision in July. Ms. Haas gave an overview of a website - Illinois -Auction .com — which does a good job on explaining how the auction process %vorks. V1. RECENT OUTAGES Dennis Marino said that there have been a pattern of outages that happened mostly in Rogers Park. V1I. ADJOURNMENT There being no further business before the Commission it adjourned at 8:30 a.m. Respectfully submitted. Mary Baaske EVANSTON ENERGY COMMISSION MEETING MINUTES Friday; June 2, 2006 Civic Center, Room 2404 at 7: 15 AX. MEAiBERS PRESENT:' Joel Freeman, Arlene Haas, Stefano Mereu, William Siegfriedt, Michael Smith, Rudy Wolfson MEMBERS ABSENT: Paul Morse STAFF PRESENT: Dennis Marino, Max Rubin, Mary Baaske PRESIDING OFFICIAL: Rudy Wolfson OTHERS PRESENT: Andy Dickerson, Constellation New Energy 1. CALL TO ORDER Rudy Wolfson (chair) called the meeting to order at 7:16 a.m., a quorum being present. I1. CONSIDERATION OF MINUTES OF APRIL 7, 2006 Arlene Haas moved to approve the minutes of April 7, 2006. Motion seconded by Bill Siegfriedt. Motion approved 5-0. Rudy Wolfson asked which subcommittee Mike Smith would like to join. Mr. Smith said he preferred to be part of the Distribution Systems Franchise Agreements subcommittee. III. COMMITTEE REPORTS A. Energy Supply, Conservation & Alternative Energy Sources Joel Freeman reported that natural gas storage is about 50% above the 5-year average. Bill Siegfriedt said that one of the market forces is that traditionally all that storage would be good until next January, but now it could be used up in a super hot August and then there will not be that kind of reserve in January. Mr. Freeman said that the pattern has been that a hot summer will slow down the amount of gas that goes into storage rather than depicting the storage, it's the winter time when storage actually gets used because the winter consumption is greater than the production. Evanston Energy Commission Minutes — June 2.2006 Page Two IV. ANDY DICKERSON OF CONSTELLATION NEW ENERGY Mr. Dickerson said that his company deals more with the supply side rather than the demand side. He explained that Constellation New Energy is a large utility based in Baltimore very similar to Exelon, with is ComEd's parent company. He added that his company competes against Exelon in this market and most of Constellation's end users are large manufacturers, but Constellation is starting to work more and more with large villages and towns, in the past, Constellation has competed against the ComEd bundled rate. That rate is set to end in January 2007. On July 12, 2007 special rates and special riders end for the City of Evanston and the City will have to decide if on July 7, 2001 it wants prices based on 2006 or prices based on 2007. Mr. Dickerson explained the reverse auction process. Joel Freeman asked how long the prices derived from the auction are for. Mr. Dickerson said that the first auction is for 18 months (January 1, 2007 through May 2008) aflcr which they will true up with the ComEd calendar year, which in the past has been June through May. Rudy Wolfson asked how the auction process and the deregulation that goes into effect would affect the residential user. Mr. Dickerson said at this point it is difficult to predict, but he thought the residential would probably see no worse than 8% increase in their ComEd bill. Mr. Dickerson thought that there would be an exodus from on peak. He said that 45 days after the auction is set, the on peak prices will be volatile enough that power can be procure cheaper than at the auction. Joel Freeman said one thing useful to keep in mind is that most of the big users have already gone to third party supply agreements. if the big users arc committed to 2010 or so, this auction is not an option for them. The residential customers who have no alternative can only be supplied by the utility ComEd so that will be exposed to whatever that auction is — subject to the constraints of whatever caps arc put in place to protect the financial burden of the auction. V1. RECENT OUTAGES Max Rubin reported that there had been an above -average number of outages this past month. He said there was an outage that affected the Evanston Library. An employee of the library went to the library and aw that a ComEd truck was there and left; however, ComEd restored the neighborhood but did not restore the library. From 5 p.m. until 6 a.m. the next day the library did not have power, He said he has asked the library to place a call to ComEd giving them the address ever time an outage happens at the library. Evanston Energy Commission Minutes — June 2.2006 V. RECENT OUTAGES (Continued) Outages Recorded in Mav May 2 - C470 — Underground Failure 5:45 a.m. to 7:31 a.m. May 18 - C80 — 4:11 p.m. — 5:04 p.m. C668 — Library 5 p.m. — 6 a.m. May 28 - C667 & 668 — 3:31— 4:42 May 29 C497 — 2:57 p.m. — 5:01 p.m. C541 — Underground Failure May 30 - C545 — 9:27 — 1:00 a.m. C542 — 9:27 — 1:00 a.m. Page Three Rudy Wolfson and Dennis Marino stated that the July meeting the Energy Commission should focus on the goals and objectives the Commission would like to see in the new franchise agreement. V1. COMMITTEE REPORTS (Continued) B. Governmental Policy and LegislativefRegulatory Actions Arlene Haas said that it seems ComEd is projecting the cap as a done deal, but it's not. The 1CC will probably rule on this is September. There is a House Bill still out there for a rate freeze for 2009. VI1. COMMUNICATIONS Dennis Marino drew the Commission's attention to the information distributed before the meeting. VIII. ADJOURNMENT There being no further business before the Commission it adjourned at 9:17 a.m. Respectfully submitted, Mary Baaske -F EVANSTON ENERGY COMMISSION MEETING MINUTES Friday, August 4. 2006 Civic Center, Room 2404 at 7.15A.M. MEMBERS PRESENT: Joel Freeman, Arlene Haas, Stefano Mereu, Paul Morse, William Siegfriedt, Rudy Wolfson MEMBERS ABSENT: Michael Smith STAFF PRESENT: Dennis Marino, Mary Baaske PRESIDING OFFICIAL: Rudy Wolfson, Chair OTHERS PRESENT: Julia Carroll, City Manager; Max Rubin, Facilities Management Director, David Cook, Assistant Facilities Management Director; Aid. Moran; Becky Dodson, student I. CALL TO ORDER Rudy Wolfson (chair) called the meeting to order at 7:1 S a.m., a quorum being present. II. CONSIDERATION OF 11IINUTES OF JUNE 2, 2006 Arlene Haas moved to approve the minutes of June 2, 2006. Motion seconded by Bill Siegfriedt. Motion approved 5 ayes and I abstention. 111. COMMITTEE REPORTS A. Energy Supply, Consen-ation & Alternative Energy Sources Joel Freeman informed the Commission that he went to a presentation the end of .Tune for the ComEd Illinois auction for Emeron and ComEd's power supply. There were two public sessions and two sessions for those that were participants. He said he went to the public session and that these presentations were illuminating in that ComEd doesn't care how this turns out because it is a total pass through for ComEd. Whatever the prices are. wherever they fall — high or low — ComEd is not allowed to make any markup. There is a review process by the Illinois Commerce Evanston Energy Commission Minutes Aueust 4, 2006 Paee Two Commission (ICC) of the auction to declare it successful or unsuccessful. In response to a question from Paul Morse, Mr. Freeman said that there has to be more than one bidder or this auction would not work. For any single category no single bidder can have more than 35% and that categories are not broken down by source, but are broken down by end user. B. Governmental Policy And Legislative/Regulatory Actions Arlene Haas reported that Governor Blagojevich signed a law in July that makes real time pricing an option for all residents in the state, which is actually one of the sections of the auction process. The ICC has decided the delivery rate for ComEd and it is significantly less than the increase of S345.5 million that ComEd asked for and the ICC granted them $8.3 million in new revenue. ComEd is planning on appealing for reconsideration. She added that here are still several potential challenges to the auction process. In June the Attorney General filed a petition of the auction process for review with the Illinois Supreme Court. Ms. Haas stated that so far, the Illinois Supreme Court has not acted on that petition. Ms. Haas stated that there is a House Bill 45766 requesting an extension of the transition period. It is expected that %%till be voted on in the fall session. She asked the staff of Congressman Dugan what the chances are of that winning and was told they had no idea right now. Ms. Haas further stated that ComEd has also requested the ]CC to approve the Rate Stabilization program where residents' rate increase would be capped the first year at 8% and then go down to 7% and 65113 of the cost increase. However, this has not been approved yet and there are hearings slated for September and should be decided by late November whether this will be in place. She mentioned that ComEd has a new initiative called "ComEd CARE" (Customers Affordable Reliable Energy) and there is a website to help customers transition. Ms. Haas said she has been on the website and there is information for residents on how to reduce their costs and also gives help understanding the transition period. Ms. Carroll asked if the legislation (House Bill 5766) would extend the transition period; and whether the bill, if it became law, would extend the transition period for everyone; and thereby, avoid the auction process due to begin on January 1, 2007. Ms. Haas replied that the bill is only intended to extend the transition period for Illinois residents because there are no real options for residents at the present time. Evanston Energy Commission Minutes August 4.2006 Paae Three C. Oversight, Monitoring & Inspection Actions Dennis Marino reported that a date has not been established for the Technical Review Group (TRG), but the first two weeks of September are being targeted relative to vacation schedules of the participants. He stated that the Commission will receive the 6 month outage report from ComEd on August 15, 2006 which will give the most substantial data of analyzing outages and causes and it will be used for an early September TRG meeting. D. Distribution Systems Franchise Agreements Dennis Marino explained that the Outline of Discussion of Electric Service Franchise Agreement Extension is an attempt to list tentative franchise negotiation goals for discussion purposes. 1. Reliability — Mr. Marino stated that, for a number of years, the historic focus of the Commission has been the issue of the reliability of the electric system, the distribution system and of particular focus has been frequency and duration of outages; strengthening distribution enhancement; and special improvement projects. These are elements of the letter of agreement that the City has had as an attachment to the franchise extension since 1993. 2. Capacity Enhancement— While this relates to reliability it is put in its own special category because of the concern of development growth corridors within the City as well as overall capacity issues in terms of the entire system. 3. Reporting - represents what were initially quarterly reports, but now are given three times a year. ComEd also gives the City a yearly report. These are used as a basis for meeting mith ComEd on the TRG and discussing issues contained in the reports. 4. Monitoring — What the Commission and TRG does in terms of analyzing not only the periodic reports but also the six month outage reports. 5. Meetings — Direct meetings with ComEd as part of the regular TRG and also some special meetings that are held as more detailed investigation. 6. Green Initiatives (Alternative Power. Energy Conservation. Demand Reduction) —each of these items need to be expanded upon. 7. Compensation — Free Electricity for City Facilities; other franchise benefits - while the electricity is not exactly free as it goes back into the rate base under a special rider with the ICC. The City currently has a special rider for the pumping station at the water utility under a franchise agreement, but the Evanston Energy Commission Minutes Aueust, 4. 2006 Paee Four understanding is that it goes away as part of the deregulation process. This raises the question of "If that is going to be the case, what other benefits might there be that might equalize or exceed that'? S. Customer Service and Communication — While it has improved in the last few years, it is still an issue. ComEd's system is such in some cases that if customer doesn't call to report an outage, sometimes ComEd is unaware that there is an outage. New Construction -- there have been situations where sometimes the developer says ComEd does not react fast enough on temporary and permanent service hookups; however there are times the developer does not give proper notice to Corn for the service hookups 9. Special Project Initiatives (e.g. Church — Brown substation) — this is a substation right across from the high school. It is located on a lot and takes up only 20% of the lot and the rest of the lot is vacant. The City would like the rest of the lot to be used for parking for a proposed development. The substation is very old and the City would like ComEd to shrink the size of the substation. Mr. Marino said that while this is not something that the Commission has usually dealt with, he included it in the Franchise Negotiation Goals as an example of a project initiative. 10. Term of Agreement— this would be the negotiation of the length of agreement. 11. Amend Existing Franchise with Letter of Agreement or New Franchise — The City can either amend the Franchise with a letter of agreement or create a totally new franchise. Bill Siegfriedt said that while it is a very thorough outline, the Commission will have to come up with specifics. Paul Morse mentioned that Items 1 - a reflect -fiat the Commission had done in the past while most of the remaining Items are topics that the Commission has never gotten ComEd to respond on in the past. He asked if the end of transition changes circumstances of the franchise in any way. Mr. Marino replied that we need someone with expertise to deal with the impact of deregulation on franchise agreements. Evanston Energy Commission Minutes August 4. 2006 Page Five Mr. Marino suggested the focus of the September Energy Commission meeting should be on the franchise. A week after the September meeting the TRG meeting will be held. t w-as the consensus of the Commission to move the September meeting from the I" to the 8 h with the TRG meeting to be held directly after the September 8 meeting if possible. IV. ADDITIONAL INFORMATION NEEDED -- FRANCHISE ISSUES Aid. Moran asked the Commission if they were familiar with David Cook's memo recommending that the City Manager enter into a contract with Energy Choices to explore power supply for City facilities. It was Aid. Moran's understanding that the City is considering entering into an agreement with a consulting group called Energy Choices. There is a coalition that has been brought together under the aegis of the Metropolitan Mayor's caucus. Supposedly, a great number of municipalities in northern Illinois have agreed to participate or are on the periphery of participation. There is a group that has established a Metropolitan Mayor's caucus group called Enterprise Cook County which was described as a coalition of people who are seeking to encourage location of businesses in Cook County. Energy Choice is another member of this coalition. The idea is to try to develop a following %%ith emphasis in negotiations in a wake of the auctions due to take place. What has been presented to us is if Energy Choices signed up with us they would consult as to which one of the power providers the City should enter into a long term agreement with in the wake of this auction. Energy Choice is positive that four energy producing companies would be brought to the table and ComEd will also be brought to the table to negotiate with this group. If one of these four providers came up with a pricing structure that would be 20110 below what we had gotten previously, if we accepted their offer. Energy Choice would do this work for us for free. If ComEd were selected even though their pricing would be 2% or more above this group the City would be charged $20,000 for our consultation with them. City Manager, Julia Carroll clarified that what is being discussed is energy that will be purchased for City properties not the entire community. Currently, the City spends $1.2 million yearly for energy and that includes street lighting. She also said it was her understanding that in the distribution process there is a rate that will be set for all customers and the City would not be able to get a better deal on the transmission. Joel Freeman said that the distribution was regulated and is not negotiable. Ms. Carroll said that the only thing open for discussion is the commodities purchase of electricity for the City. She has spoken to an attorney who would charge $60,000 to do an RFP for the City. Ms. Carroll thought that by combining the City's purchase with some other cooperative the City would get better pricing. Evanston Energy Commission Minutes August 4.2006 Pace Six Bill Siegfriedt stated that any of the companies that are going to be suppliers are going to have to go to multiple companies for their supply (nuclear, gas, coal). There are a lot of issues to see which is the best for the City. Paul Morse though it too early to commit to an energy supply choice. Bill Siegfriedt stated that any of the companies that are going to be suppliers are going to have to go to multiple companies for their supply (nuclear, gas, coal). There are a lot of issues to see which is the best for the City. Paul Morse though it too early to commit to an energy supply choice. Ms. Carroll asked the Commission for their recommendation of how to proceed. Ald. Moran asked if someone could be invited to do a quick consultation. Rudy Wolfson said that the City needed to get a consultant to help decide what is the best option for the City. It was the consensus of the Commission to recommend hiring an independent consultant. Air. Freeman reminded the Commission that the Auction will be held September 5, 2006. Commission agreed to invite Dave Metz, reliability consultant to the next TRG meeting. V. DEVELOPMENT UPDATE Dennis Marino reported that the movie theater on Central Street is the subject of a proposal for 5 story residential condominium and ground floor detail. There are two more projects in that area for a small residential (less than 20 units) and there is a possibility of a smaller project on Center Street east of Green Bay Road. There is a proposal by Optima for 190 units on Davis and Chicago which Council rejected. The Developer could come back with revisions. The proposed large apartment complex on Howard Street is attempting finalization of its pre -construction requirements. A 40 unit townhouse project has been approved on Heinz Lumber site to be built by Cyrus Homes. VI. RECENT OUTAGES Max Rubin reported the following outages: 6119 30 minutes 7/1 17 hours 7/17 30 minutes 7/27 3 Hours 7/30 1 hour 10 minutes C615 — tree contact C8515 — tree contact C545 — weather C4713 —underground failure C665 — clear down wire Evanston Energy Commission Minutes August 4. 2006 Pace Seven VII, COMMUNICATIONS Dennis Marino drew the Commission's attention to the communications included in their packet. Communications were accepted into the record. IX. ADJOURNMENT There being no further business before the Commission it adjourned at 8:57 a.m. Respectfully submitted, Mary =e, EVANSTON ENERGY COMMISSION MEETING MINUTES Friday, September 8. 2006 Civic Center, Room 240.4 at 7:1 S A.IIL MEMBERS PRESENT: Joel Freeman, Arlene Haas, Stefano Mercu, Paul Morse, William Siegfriedt. Michael Smith Rudy Wolfson STAFF PRESENT: Dennis Marino, Max Rubin, Mary Baaske PRESIDING OFFICIAL: Rudy Wolfson, Chair OTHERS PRESENT: Irwin Levinson I. CALL TO ORDER Rudy Wolfson (chair) called the meeting to order at 7:18 a.m., a quorum being present. II. CONSIDERATION OF MINUTES OF AUGUST 4, 2006 Arlene Haas moved to approve the minutes of August 4, 2006. Motion seconded by Joel Freeman. After a few minor corrections, motion approved unanimously. III. COMMITTEE REPORTS A. Energy Supply, Conservation & Alternative Energy Sources Joel Freeman said that the auction got under way this week for a wholesale basis for ComEd's new retail electricity rates. It was still proceeding as of yesterday, but the results will not be made public until the 1CC reviews it and the process is unfolded. He drew attention to the Natural Gas Weekly Update he handed out to Commission members before the meeting. He said that the update states that milder weather and the amount of storage that has been accumulated over the summer have kept prices a little loser. Even though the prices for October will be moderate, winter prices are expected to be a little higher. Evanston Energy Commission Minutes — Septembcr 8. 2006 Page Two In discussing the graph on the third page of the handout, he said that this was a graph showing the working gas in underground storage compared with the 5-year range. Up until last year this was the primary indicator of gas prices. This summer the gas storage has exceeded the high end of the five year range. B. Governmental Policy and Legislative/Regulatory Actions Arlene Haas stated ComEd's Residential Rate Stabilization Proposal that should be decided on in November has been modified. There have been complaints from public interest groups because ComEd was proposing to cap the rate increase at 6% and then 7% over the next three years, but then charge interest on what they were capping for the residents and they would be hit hard after the cap expired. So, ComEd raised the cap of the increase to 10%. Originally everyone was going to become part of that program and would have to opt out of it and now the consumer has to opt in to participate in that program. It is not determined that this will go forward; the iCC is supposed to rule on this in November. Ms. Haas said that House Bill 5766 which would extend the rate freeze for 3 more years has not yet been voted on. The Attorney General has a petition to have the Illinois Supreme Court review the auction process, but that also hasn't been ruled on. Ms. Haas pointed out an article in the September 7, 2006 Chicago Sun Times regarding real time pricing; that became a law the end of June and will have to be offered to customers as of January 1, 2007. It showed pictures of Anthony Star and Kathryn Tholin who made real time pricing an option for residents their goal. C. Chairman's Report Rudy Wolfson mentioned that at the last Commission meeting there was a discussion of the City hiring; a consultant for its power purchase options. Dennis Marino said that David Cook of Facilities Management has reported that his department is in the processing of hiring a consultant. IV. DISCUSSION OF FRANCHISE GOALS AND OBJECTIVES Rudy Wolfson recalled that the Commission was considering some items that were put together by Dennis Marino regarding the input of the Commission on the "'Franchise Goals and Objectives." He said there should be further discussion and input from Commission members as to what should be stressed regarding the franchise. Joel Freeman said that originally municipal compensation had been the focus of his initiative. Right now it is electricity with no charge to buildings that collect no revenue for the City. Mr. Freeman also discussed the infrastructure maintenance fee where there would be an explicit charge per kW hour used in the City that ComEd would pay to the City. The tradeoff would be that the City would pay for their electricity at the prevailing Evanston Energy Commission Minutes — September S, 2006 Page Three rate. There is no way to calculate what the value will be to the end user because the prevailing rate will change. He said whether that infrastructure maintenance fee structure or pricing structure would be applicable to anyone or whether it is rccrafled from scratch for each arrangement is a question that should be asked of ComEd. Arlene Haas said she assumes that ComEd is willing to provide electricity without compensation now because the cost is placed in the rate base. She is concerned that it might be surprising to the ratepayers to find out that they are paying for the City's electricity. Ms. Haas asked how the cost to the residents is determined. Mr. Marino replied that its based on the [CC rider. Discussion occurred about how modest the cost is per customer for the covered City facilities. Mr. Freeman said that there is a third point of comparison and that is whatever Dave Cook arranges with the power provider for the buildings that arc paying their way. If you were to rearrange the franchise and have the nine City buildings start paying, the inclination would not necessarily be to default to ComEd's rate but to add those on to the group with the other City buildings. Mr. Wolfson said he thought that there were three options: buy everything through the auction process, make an arrangement for the infrastructure maintenance fee with ComEd as part of the franchise stay where we are with no charge electricity for certain City buildings and based on the WC rider.. Mr. Freeman said that the Commission could take one or two accounts and run some numbers. Some numbers are already determined, such as the distribution charges, and the commodity charges are likely to fall within a certain range. He said he would pull some numbers together. Mr. Marino said another issue is that the model Northwest Municipal Franchise Agreement has the most favored nation clause. if one municipality receives a benefit from ComEd, all municipalities receive that benefit. Bill Siegfricdt said that once the auction process is finished, the Commission can figure out what that electricity without charge is going to cost ComEd; therefore what is that benefit to us worth to them. The Commission could also make some kind of projection as to what it might be able to acquire that electricity for if that was excluded from the franchise agreement. V. TECHNICAL REVIEW GROUP Dennis Marino stated that included in the Commission members' packets was a document chronologically listing of the outages in the past six months from ComEd. Also on the table in front of each member is a run that Max Rubin did on that data. What the Commission is particularly interested in is talking about the Evanston Energy Commission Minutes — Sentember 8.2006 Paee Four May 2006 outages. Looking at the outages from May 18 — May 30, most were not caused by weather. Mr. Marino said that another issue to be discussed is the capacity. At lease once a year the City tries to have someone from the planning team from ComEd meet with the TRG group. Mr. Marino pointed out that another issue the TRG will discuss is that there were no improvements planned along the lines of summer critical work this year, yet Evanston had the May outages. Stefano Mereu asked if capacity was in the franchise before. Mr. Marino replied that it was discussed in the last franchise agreement and negotiation process and it leads to certain projects being listed in our letter of agreement. Some of those projects relate to distribution system enhancement and for the first time in this current franchise agreement the monitoring of substations were included. He said that the TRG and ComEd has repeatedly talked about capacity enhancement and the ability to switch to tie-in feeders and make sure that the feeders arc not overloaded. Vl. DEVELOPMENT UPDATE Dennis Marino reported that for the first time in five years there is not a downtown development project in the ComEd development pipeline. Other proposed projects on Chicago Avenue, Central Street, Oak -ton Street are under consideration. There arc two projects that have been approved by the City that have not yet been built and ComEd is aware of both of those. 1n the downtown itself on Chicago and Davis, there was a proposal recently rejected by the City Council. The Howard Street apartment building has been financed. This is a 16-story building with 200 units located next to the train station on Howard Street. ComEd has been aware of this project for 1 &'/i years. VII. COMMUNICATIONS Dennis Marino pointed out the communications included in the packet. Communications were accepted into the record. Respectfully submitted, Mary Baaske, Planning Division APPROVED EVANSTON ENERGY COMMISSION MEETING MINUTES Fridog, October 6 2006 Civic Center, Room 2404 at 7:1SA.Al. MEMBERS PRESENT: Joel Freeman, Arlene Haas, Paul Morse, William. Siegfriedt, Michael Smith, Rudy Wolfson MEMBERS ABSENT: Stefano Mereu STAFF PRESENT: Dennis Marino, Max Rubin, Mary Boaske, David Cook, Bobbie Newman PRESIDING OFFICIAL: Rudy Wolfson, Chair OTHERS PRESENT: ln%1n Levinson I. CALL TO ORDER Rudy Wolfson (chair) called the meeting to order at 7:19 a.m., a quorum being present. II. CONSIDERATION OF MINUTES OF SEPTEMBER S, 2006 Arlene Haas moved to approve the minutes of September 8, 2006. Motion seconded by Michael Smith. Minutes were approved unanimously. III. COMMITTEE REPORTS A. Energy Supply, Conservation & Alternative Energy Sources Joel Freeman drew the Commission's attention to the information he passed out earlier dealing with the Illinois auction and what that means to future rates. The handout showed the wholesale pricing through the auction process and the final auction prices, the ComEd Rate Prism, the Rate RDS Retail Delivery Services Rates and Charges, Sample Billing Calculations for Small Residential ComEd Account, and billing; for the Public Parking Garage at Chicago Avenue and Church Street. Joel Freeman said if he can get the estimate of total kilowatt hours used annually by all of ComEd's customers in Evanston, he would use that number and then apply the infrastructure maintenance fee to come up with the cost. Page 2 Minutes — Energy Commission Meeting October 6, 2006 B. Governmental Policy and Legislative/Regulatory Actions - Electric Poker Action Update (Illinois) Arlene Haas stated since the approval of the auction process by the Illinois Commerce Commission (ICC) there has been a lot more activity. As she mentioned in the past, the Illinois Attorney General Lisa Madigan has filed briefs with the Illinois Supreme Court trying to get the auction process reviewed. The Citizens Utility Board and Building Owners and Managers Association have filed supporting briefs. Ms. Haas stated there is a house bill that would extend the rate freeze for residents and Mike Madigan sent a letter to the Governor asking for a special session of the legislature to try to push that legislation through. Ms. Haas thought it interesting that the Chicago area rates are projected to go up 22% to 23%, but southern Illinois rates are projected to go up 45% to 50%. IV. DISCUSSION OF FRANCHISE GOALS AND OBJECTIVES Rudy Wolfson referred to the list. Distribution Systems Franchise Agreements Dennis Marino explained that the Outline of Discussion of Electric Service Franchise Agreement Extension is an attempt to list tentative franchise negotiation goals for discussion purposes. A. Reliability — Mr. Marino stated that, for a number of years, the historic focus of the Commission has been the issue of the reliability of the electric system, the distribution system and of particular focus has been frequency and duration of outages; strengthening distribution enhancement; and special improvement projects. These are elements of the letter of agreement that the City has had as an attachment to the franchise extension since 1993. B. Capacity Enhancement — While this relates to reliability it is put in its own special category because of the concern of development growth corridors within the City as well as overall capacity issues in terms of the entire system. C. Reporting - represents what wcre initially quarterly reports, but now are given three times a year. ComEd also gives the City a yearly report. These are used as a basis for meeting with ComEd on the TRG and discussing issues contained in the reports. D. Monitoring — What the Commission and TRG does in terms of analyzing not only the periodic reports but also the six month outage reports. E. Meetings — Direct meetings with ComEd as part of the regular TRG and also some special meetings that are held as more detailed investigation. F. Green Initiatives (Alternative Power, Energy Conservation, Demand Reduction) — each of these items need to be expanded upon. Page 3 Minutes — Energy Commission Mecting October 6, 2006 G. Compensation — Free Electricity for City Facilities; other franchise benefits - while the electricity is not exactly free as it goes back into the rate base under a special rider with the ICC. The City currently has a special rider for the pumping station at the water utility under a franchise agreement, but the understanding is that it goes away as part of the deregulation process. This raises the question of "If that is going to be the case, what other benefits might there be that might equalize or exceed that"? H. Customer Service and Communication — While it has improved in the last few years, it is still an issue. ComEd's system is such in some cases that if a customer doesn't call to report an outage, sometimes ComEd is unaware that there is an outage. New Construction — there have been situations where sometimes the developer says ComEd does not react fast enough on temporary and permanent service hookups; however there are times the developer does not give proper notice to Com for the service hookups I. Special Project Initiatives (e.g. Church — Brown substation) -- this is a substation right across from the high school. It is located on a lot and takes up only 20% of the lot and the rest of the lot is vacant. The City would like the rest of the lot to be used for parking for a proposed development. The substation is very old and the City would like ComEd to shrink the size of the substation. Mr. Marino said that while this is not something that the Commission has usually dealt with, he included it in the Franchise Negotiation Goals as an example of a project initiative. J. Term of Agreement — this would be the negotiation of the length of agreement. K. Amend Existing Franchise with Letter of Agreement or New Franchise — The City can either amend the Franchise with a letter of agreement or create a totally new franchise. Bill Siegfriedt said that while it is a very thorough outline, the Commission will have to come up with specifics. Paul Morse mentioned that Items 1 - 5 reflect what the Commission had done in the past while most of the remaining ltcros are topics that the Commission has never gotten ComEd to respond on in the past. He asked if the end of transition changes circumstances of the franchise in any way. Mr. Marino replied that we need someone with expertise to deal with the impact of deregulation on franchise agreements. Page 4 Minutes — Energy Commission Ntectirg October 6, 2006 Mr. Marino said that historically reliability issues and past cnhancement systems have been the paramount issues and they are still part of the package with distribution still less of a concern but still a major concern. Commission members discussed the pros and cons of constructing a new ordinance or continue with the same ordinance passed in 1957and updating the letter of agreement. Rudy Wolfson asked when the franchise discussions should begin. Mr. Marino said that he thought the negotiating team should begin meeting in January, 2007 and that the Energy Commission should complete its review by the December 2006 meeting. Mr. Wolfson asked Mr. Marino to join the subcommittee consisting of Paul Morris, Arlene Haas and himself to begin work on the franchise. This group agreed to meet on Thursday, November 9, 2006 at 7:15 a.m. Max Rubin and David Cook shared what stage they were in concerning electricity for City buildings. As of now, they have a consultant and are writing an RFP V. TECHNICAL REVIEW GROUP REPORT Deferred until next meeting. VI. SOLAR PANEL ZONING REVISIONS Brief discussion deferred until next meeting. VIL ENERGY PURCHASING PLANS VIII. RECENT OUTAGES Max Rubin said the last outage he had reported to the Commission happened on July 30, 2006. Most recently, on October 22 there was an outage of about an hour on C82 Skokic/Evanston - caused by the weather. An outage occurred on October 2 on C202 which last six hours caused by the weather; at 9:20 p.m. an outage occurred on C416 and lasted 1 & %z hours caused by weather; at 9:55 p.m. on C657 an outage occurred which lasted six hours - caused by weather. IX. DEVELOPMENT UPDATE Dennis Marino and Commission Members discussed the report by ComEd dated September 29, 2006. X. COMMUNICATIONS The Technical Review Group report was moved to the November Commission meeting. Xi. SOLAR PANEL Dennis Marino said that this has been an issue for the Zoning Division in trying to make the Zoning Ordinance more permissive in terms of allowing solar collectors. The Plan Commission recommendation was included in the Energy Commission's packet and the Page 5 Minutes — Energy Commission Meeting October 6, 2006 concern on the part of some of the solar advocates is that the Plan Commission's recommendation was still too restrictive. There was also a concern about the solar collectors matching the roof line, and that might deter getting the most significant benefit from the collector. Solar Panels will be discussed more at the November meeting. XII. ADJOURNMENT There being no further business before the Commission, it adjourned at 9:11 a.m. Respectfully submitted, Mary E. Baaske EVANSTON ENERGY COMMISSION MEETING MINUTES Friday, November 3. 2006 Civic Center, Room 240,E at 7:15 AX. MEMBERS PRESENT: Joel Freeman, Arlene Haas, Stefano Mereu, William Siegfriedt, Rudy Wolfson MEMBERS ABSENT: Paul Morse, Michael Smith STAFF PRESENT: Dennis Marino, Bobbie Newman PRESIDING OFFICIAL: Rudy Wolfson, Chair I. CALL TO ORDER Mr. Wolfson, Chair, called the meeting to order at 7:21 a.m., a quorum being present. The Commission decided to insert a discussion about the proposed regulation of solar panels as item #VI. II. CONSIDERATION OF MINUTES OF OCTOBER 4, 2006 Mr. Wolfson commented that regarding Item K on page 5 of the October 4, 2006 minutes, he would rather the entire Energy Commission join the franchise discussion instead of a separate committee. All agreed. Ms. Haas moved to approve the minutes of October 4, 2006. The Commission voted to approve. III. COMMITTEE REPORTS A. Energy Supply, Conservation & Alternative Energy Sources Mr. Freeman informed the Commission that not much has changed since the last meeting. Winter gas prices haven't fluctuated much from 80-85 cents per therm. Mr. Freeman stated that concerning electricity, it is a matter of getting pricing; from options translated to rate costs, then going to other suppliers. Customers' rate will default to standard residential rate unless they opt out. Mr. Wolfson asked what was better - to opt in or out of the standard rate. Mr. Freeman said it would depend on their usage. Customers will have another opportunity to choose in approximately one year. Mr. Wolfson suggested comparing Commission members' bills. B. Governmental Policy and Legislative/Regulator), Actions Mr. Marino presented 3 articles (attached): "The Dirt on Clean Energy," "Deja Vu," and "Is Nuclear Energy the Answer?" from the October issue of Illinois Issues regarding alternative energy sources. his. Haas presented a related article (attached) from the New York Times regarding de -regulation, stating, as reflected in the article, that the only ones who profit from de- regulation are investment bankers: "in De -regulation, Power Plants Turn Energy Commission Meeting Minutes November 3, 2006 Page 2 Into Blue Chips." Mr. Wolfson added that investment firms made big profits buying and selling power plants, and presented a related article (attached) from the New York Times also: "Competitive Era Fails to Shrink Electric Bills." Ms. Haas stated that a proposal by Com Ed to cap cost to residents at 10% has been approved at the court level. It still needs to be approved by the ICC. She added that eventually, consumers «ill be charged the increase with interest and a 6.5% finance charge. Mr. Marino stated that Rhode Island is on the same track as Illinois with considering how to phase in electric rate increases. Mr. Siegf cdt stated that the Governor of Illinois is forming an "Alliance to create clean -coal electricity." He is picking a task force from 4 finalists. This course of action was originally initiated by President Reagan and has gotten research from the pilot stage to demonstrated examples. A detailed discussion ensued of which emissions arc addressed in these studies. Mr. Marino reported that the City projects receiving utility taxes of $5.1 million in the current fiscal year. C. Oversight, Monitoring & Inspection Actions Mr. Wolfson reported this would be addressed under the TRG Report. D. Distribution Systems Franchise Agreements E. Chairman's Report IV. TECHNICAL REVIEW GROUP REPORT Mr. Wolfson reported on the content of the Technical Review Group meeting which included discussions of the reliability trend report, recent outages, discussion of capacity, and a schedule of construction projects. He stated that Com Ed indicated that an infrastructure maintenance fee would be a wash with the value of the free electricity we already get, but we still want to do an analysis. The Commission will discuss with Dave Cook the best way to proceed on this issue. Mr. Wolfson continued that according to Laura Lee of Com Ed, if a transformer burns out, Com Ed automatically increases its size. Laura Lee also said the thermal rating of the cables entering and leaving the substations is being improved and they are providing new ducts, and the substation capacity is on one side of the bus 220 mpa and 240 mpa on the other, and it is to be expanded. Cam Ed is considering shrinking the sire of the footprint only (not the capacity) of Substation #6 to allow for more parking on the site. Cost has not yet been discussed. The area is tied to a major community development project. Parking would be leased in some arrangement. Energy Commission Mecting Minutes November 3. 2006 Page 3 Mr. Wolfson also reported that Laura Lee said that thermal rating entering and leaving substations is being improved. They are providing new ducts. Minor relief is being planned on substations. Transmission substation capacity is 220 and 240 and it is to be expanded, however equipment deliveries are slow due to hurricane Katrina. Dennis Marino reported that the feeder behind the Bristol development on Howard Street between the train station and Chicago Avenue will have to be relocated, as the development will be constructed on the existing alley. A new alley will be put in that runs north and south, instead. V. DEVELOPMENT UPDATE Mr. Marino reported on new projects on Chicago Avenue and downtown: 1001 Chicago Avenue (Auto Barn site) is being sold to a developer to build a 60-unit residence. A public meeting will be held to discuss a large development proposal for Main and Chicago that is the product of a lawsuit settlement. At the former research park on Emerson, an 18-story residence is proposed. The City is revising the 1989 plan for downtown, emphasizing more retail, and a 24-hour downtown with mixed use. Mr. Marino explained the use of "form based" codes which may be considered for the downtown, the emphasis being on the form of the building, rather than on its use, referring to Paul Crawford's speech of August 9, 2006, presented at Evanston's Civic Center. VI. SOLAR PANELS ORDINANCE Mr. Marino reported that a revision to the Zoning Ordinance regulating solar panels is under consideration by the Planning and Development Committee and the Energy Commission has been asked to comment on the Plan Commission's recommendations. Mr. Marino read key elements of the proposed regulations (attached). The Commission discussed ensuring; that the specifications do not limit feasibility and effectiveness of using solar energy, and the issue of existing solar panels not being subject to the Ordinance. The Commission supports the Ordinance and will articulate their comments to the Planning Commission. Mr. Marino is to attend the November 13, 2006 meeting of the Planning & Development Committee at which the solar panel ordinance is to be discussed. V11. ENERGY PURCHASING PLANS David Cool: was not present at the meeting;, so this item was deferred until the December 8`�, 2006 meeting, VIII. FRANCHISE GOALS AND OBJECTIVES Mr. Siegfriedt asked if the length of the franchise has been settled, Mr. Marino replied that we will need to keep it short enough to have leverage, but long enough to be commensurate with the benefits received. Mr. Freeman suggested we ask Cam Ed to develop a communications protocol to keep us informed of new developments regarding customer service, communication, outage reporting Energy Commission Meeting Minutes November 3, 2006 Page 4 and new construction. Mr. Freeman suggested that we get a demographic analysis of the number of households, make some assumptions about usage, and propose that the infrastructure maintenance fee be equal to the franchise fee. He noted that the value of free electricity will increase in proportion to the increase in rates. Mr. Marino brought up the recent fire caused by candle use in a residence where the electricity had been turned off because of a customer's delinquency in paying their bill. The City's Building Division decided that any unit without electricity (whether because of a landlord or a tenant's delinquency) is uninhabitable and tenants must be removed, but the problem has arisen of where to put them, for how long, and how we cover the cost. The Commission discussed a fund to cover such expenses as part of the franchise, and whether a request for donations to the fund could be included with electric bills (similar to the request in Nicor bills). Mr. Marino also suggested Com Ed contributes to such a fund. The Commission discussed looking at false fire alarm data to track when power has gone out (since that causes alarms to go off). Mr. Marino discussed the desire for an automatic switching function for the Evanston Civic Center that would activate when an outage occurred. Members stated that this would be a good feature for a new Civic Center. There was discussion about adding one more feeder like Evanston Hospital has, either here or at a new facility, and who would pay for it. The Commission also discussed whether a generator would serve the same purpose. Mr. Wolfson requested that the minutes of today's meeting should restate the franchise extension priorities that were included in the last minutes. The franchise extension priorities from the last minutes are: A. Reliability — Mr. Marino stated that, for a number of years, the historic focus of the Commission has been the issue of the reliability of the electric system, the distribution system and of particular focus has been frequency and duration of outages; strengthening distribution enhancement; and special improvement projects. These are elements of the letter of agreement that the City has had as an attachment to the franchise extension since 1993. B. Capacity Enhancement - While this relates to reliability it is put in its o%%-n special category because of the concern of development growth corridors within the City as well as overall capacity issues in terms of the entire system. C. Reporting - represents what were initially quarterly reports, but now are given three times a year. Com Ed also gives the City a yearly report. These are used as a basis for meeting with Com Ed on the TRG and discussing issues contained in the reports. Energy Commission INfeeting Minutes Page 5 November 3, 2006 D. Monitoring — What the Commission and TRG does in terms of analyzing not only the periodic reports but also the six month outage reports. E. Meetings — Direct meetings with Corn Ed as part of the regular TRG and also some special meetings that are held as more detailed investigation. F. Green Initiatives (Alternative Power, Energy Conservation, Demand Reduction) — each of these items need to be expanded upon. G. Compensation — Free Electricity for City Facilities; other franchise benefits - while the electricity is not exactly free as it goes back into the rate base under a special rider with the ICC. The City currently has a special rider for the pumping station at the water utility under a franchise agreement, but the understanding is that it goes away as part of the deregulation process. This raises the question of"If that is going to be the case, what other benefits might there be that might equalize or exceed that"? c H. Customer Service and Communication -- While it has improved in the last few years, it is still an issue. Com Ed's system is such in some cases that if a customer doesn't call to report an outage, sometimes Com Ed is unaware that there is an outage. New Construction -- there have been situations where sometimes the developer says Com Ed does not react fast enough on temporary and permanent service hookups; however there are times the developer does not give proper notice to Com for the service hookups 1. Special Project Initiatives (e.g. Church — Brown substation) — this is a substation right across from the high school. It is located on a lot and takes up only 20% of the lot and the rest of the lot is vacant. The City would like the rest of the lot to be used for parking for a proposed development. The substation is very old and the City would like Com Ed to shrink the size of the substation. Mr. Marino said that while this is not something that the Commission has usually dealt with, he included it in the Franchise Negotiation Goals as an example of a project initiative. J. Term of Agreement — this would be the negotiation of the length of agreement. K. Amend Existing Franchise with Letter of Agreement or New Franchise -- The City can either amend the Franchise with a letter of agreement or create a totally new franchise. Energy Commission Meeting Minutes Page 6 November 3. 2006 IX. RECENT OUTAGES Mr. Marino stated that Max Rubin will provide a full report at the next Energy Commission meeting. X. COhi'L%IUNICATIONS Mr. Marino summarized communication from the packet. XI. OTHER BUSINESS XII. ADJOURNIMENT There being no further business before the Commission, it adjourned at 9:06 a.m. Respectfully submitted, Bobbie Newman Executive Secretary, Planning Division City of Evanston REVISED EVANSTON ENERGY COMMISSION MEETING MINUTES Friday, December 8 2006 Civic Center, Room 2404 at 7:15A.AL MEMBERS PRESENT: Joel Freeman, Arlene Haas, Stephen Mereu, William Siegfriedt, Rudy Wolfson MEMBERS ABSENT: Paul Morse, Michael Smith STAFF PRESENT: David Cook, Dennis Marino, Bobbie Newman, Max Rubin PRESIDING OFFICIAL: Rudy Wolfson, Chair I. CALL TO ORDER Mr. Wolfson (chair) called the meeting to order at 7:22 a.m., a quorum being present. II. CONSIDERATION OF MINUTES OF November 3, 2006* Ms. Haas made a motion to approve the minutes of the November 3, 2006 meeting. The motion was seconded. Mr. Wolfson made a revision to Item IV, second paragraph stating: "Laura Lee said the thermal rating of the cables entering and leaving the substations is being improved and they are providing new ducts. The substation capacity is 220 MVA on one side of the bus and 240 MVA on the other, and it is to be expanded." Mr. Wolfson also requested an addition to the minutes under Stem V1 stating: "Dennis and Stefano will attend the Planning and Development Committee meeting at which solar panel will be discussed." Mr. Siegfriedt added that in Section 1V, second paragraph, Com Ed is considering shrinking the size of the footprint only (not the capacity) of Substation #6 to allow for more parking on the site. The Committee voted unanimously to approve the minutes as amended.* III. COMMITTEE REPORTS A. Energy Supply, Conservation & Alternative Energy Sources B. Governmental Policy and Legislative/Regulatory Actions Ms. Haas presented 2 bills: The first was to freeze rates for 6 years. It was vetoed. The second, Illinois House Bill #2197, passed in the House of Representatives to lag rates at 7% for residents for 3 years, 8 % the third , Energy Commission Minutes - December 8, 2006 REVISED Page 2 year (2009). Corn Ed had its own proposal to charge interest on the back end but she does not believe it is in this bill. She has called Springfield for more information. his. Haas also mentioned a technology developed by ALT in Boston which captures power plant emissions using algae. It captures 40% of the carbon dioxide emitted and 80% of nitrogen oxide emitted. Then the dried algae is used as a fuel source. Mr. Siegfriedt replied that there is an enormous investment required to develop such technology and it is difficult to get the funds to demonstrate such technologies full scale. Ms. Haas offered that regarding the rate hires, people often don't contact their legislators until after the issues are resolved and they are unhappy about the outcome. Mr. Freeman reported on the misleading surveys that are sent by advocates and opponents to the general public regarding rate hikes. The Commission discussed the misinformation that circulates. Mr. Wolfson noted that the energy -smart savings plan %vas not automatically implemented. Mr. Freeman reported that the utility companies are required to report their source of fuel used in their territories. Com Ed has consistently for the past year been supplied by 75% nuclear power. Mr. Siegfriedt added that nuclear energy is one of the cleanest forms of energy, but the source of the other 25% of their energy has a significant impact on the environment, especially in the summer. Mr. Freeman reported that there are home -owner income tax credits available up to 10% of the cost of energy -saving improvements, capped at $500.00. He reported also that he inadvertently received a mailer from People's Energy Service offering a discount of 15% off Com Ed's rates to business owners. Mr. Freeman reported on the "summary of use report" he received from Com Ed*: He saved $306.00 for the year by participating in Com Ed's energy -smart savings plan. The report showed him the impact of changes he has made, such as adding a space heater or using an air conditioning unit. Mr. Wolfson asked how energy -saving plan participants %%ill be affected by the rate hike. Mr. Freeman replied, "There will be no discount issued to participants as in the pilot program. The price however, will remain the same. The pilot program also had caps, which will not apply to participants since the pilot program has ended." his. Haas noted that the average person may have difficulty in tracking their electricity usage. The program may not continue informing customers how much kilowatt hours cost at different times of the day. Ms. Haas said the purpose of the program is to make residents aware of the cost of their usage and to become more conscious of their usage. Mr. Freeman said he uses certain appliances at different times of the day because of the awareness of rates the program has provided. His lowest month was just under 400 kilowatt hours and his highest was 700 *Documents enclosed Energy Commission Minutes - December 8, 2006 REVISED kilowatt hours. The corresponding costs varied from $30.00 to $85.00/month, (these monthly costs include all the charges on his bill). Page 3 Mr. Freeman reported: $2.6 million in revenues collected on electricity usage for 2006.* A spreadsheet he distributed calculated that the tax addition is based on kilowatt usage. The spreadsheet shows how the City of Evanston collects its $2,6 million in revenues. I" page shows a potential Infrastructure Maintenance Fee table, which is structured identically to the way things are taxed. The values arc slightly different.* if Evanston is collecting $2.6 million in electric utility tax and -we were to switch from franchise cost to infrastructure maintenance fee, he estimated we would have the same scale of revenue stream. Mr. Wolfson asked if Mr. Freeman was saying; that if we went to an infrastructure maintenance fee based on the proposed new contract rates the City would come out ahead. Mr. Freeman replied that his calculations were done independent of a new contract. His calculations were based on usage, not cost. He %vas trying to show how similar they are. Mr. Freeman explained that the municipal tax addition is a different line item on the bill that would remain and that the infrastructure maintenance fee is only replacing the franchise fee on the bill. The Commission discussed continuing the franchise benefits (subsidized "free" electricity) versus the infrastructure maintenance fee. Mr. Wolfson stated that a discussion of street lighting and green power be added to the franchise goals included in the minutes which will be revisited in January. The franchise agreement issue will be refined and discussed further. C. Oversight, Monitoring & Inspection Actions D. Distribution Systems Franchise Agreements E. Chairman's Report IV. ENERGY PURCHASING PLANS Mr. Cook reported that legislature has not resolved the rate -increase issue. Mr. Cook believes there is a higher risk to go out for bids later because as gas prices go up, electricity prices parallel that. He has talked to Representative Hamos regarding the rate freeze. It has passed the Senate but not the House of Representatives. They intend to sign a contract that will coincide with Com Ed's new rate hikes, which will be on an annual basis, but the basis will be 17 or 29 months of duration from the date of the contract. He asked for the Commission's thoughts on that. Mr. Cook is thinking that 17 months is the right thing to do. He explained, "Let everything shake out, see what happens, let the market stabilize *Documents enclosed Energy Commission Minutes - December 8, 2006 REVISED Page 4 and then see what to expect, and go out for bids in a year and a half, rather than lock in something now." Mr. Cook presented to the City Council energy pricing of energy credits for 10% of our total energy and 20% of our total energy as a component of the cost of energy. He summarized his report with these two issues. 17 to 29 month contract and the strategy for going with green energy, concluding that they are going to negotiate for 17 months and 20%. The Commission discussed a chart showing the savings by going with one of the bids. Mr. Wolfson moved to approve the path that the Facilities Management department is pursuing regarding a new electric service contract and urge him to proceed. The Commission voted unanimously to approve. V. FRANCHISE GOALS AND OBJECTIVES VI. RECENT OUTAGES Mr. Rubin reported that Dawes School (Circuit 897) had a power outage the previous day (Thursday, December 7, 2006), and that 400 students had to be relocated. A feeder needed to be re -pulled. It was not just a re -set. The Commission discussed the downstate outages, which caused residents in downstate Illinois to be out of power for 7 days. Ameren is the power provider. Mr. Siegfriedt stated that there was an enormous amount of ice destroying a large number of trees destroying a number of wires and terrible working conditions. A member suggested that the human resources being applied to the repairs may be inadequate. VII. ELECTION OF OFFICERS A schedule of the Commission members' term expiration dates and what term they are in was distributed.* The Commission discussed the fact that Mr. Wolfson's term ends next year. lie stated that they should at least annually or bi- annually renew their leadership and that they have a lot of good people on the Commission. He proposed that they have elections at the January meeting. Mr. Marino explained that the three offices they will be voting on will be Chair, Vice - Chair and Secretary, which is third person in command after the Chair and Vice - Chair, with no other specific functions. He also explained that the officers with term expiration dates listed on the schedule* that do not have 2"d term listed, are I" term members and they are eligible for re -appointment. It is the 2"d term members that are not eligible for re -appointment. Mr. Wolfson added that the Mayor has re -appointed people unless there were other recommendations, so he presumes they will all be re -appointed in January. Mr. Marino added that past practice has been that members, including members in their 2"d term continue to serve if they can, until their replacement is appointed. *Documents enclosed Energy Commission Minutes - December 8, 2006 REVISED Page 5 VIII. APPROVAL OF 2007 MEETING SCHEDULE The Committee discussed the 2007 meeting schedule*, which varies from the general first Friday of each month around holidays and is subject to change. The Commission voted unanimously to approve the schedule. IX. COMMUNICATIONS Mr. Marino explained that the communications attached to the agenda are communications that were referred to at the last meeting. The two alternative energy articles were from Illinois Issues. The article provided by Ms. Haas from the New York Times at the last meeting was also included. X. OTHER BUSINESS Mr. Marino reported on the meeting of the Planning and Development Committee regarding solar panels, where the Committee heard a presentation from Len Sciarra Co -Chair of the Environment Board, demonstrating; through a slide show and some visuals certain problems he saw in the proposed ordinance being too restricting, agreeing with the Plan Commission's recommendation. The memorandum Mr. Marino prepared based on the Energy Commission's discussion struck the balance between the concerns about appearances but emphasized that there should not be a regulatory standard that impairs the efficiency of solar collectors or the feasibility of them. The Planning and Development Committee discussed the issue and asked Len to come back with revised recommendations. The meeting was in early November, just after the Mist Energy Commission meeting. It captured the essence of what the Energy Commission %va.s trying to convey. XI. ADJOURNMENT The meeting adjourned at 9:11 a.m. Respectfully submitted, Bobbie Newman Exec. Secretary, Planning Division City of Evanston The City of Evanston is committed to making all public meetings accessible to persons with disabilities. Any citizen needing mobility or communications access assistance should contact Max Rubin, Facilities Management Office at 847/866-2916 (Voice) or 847/3284080 (TDD). *Documents enclosed a Energy Commission Page 6 Minutes - December 8, 2006 REVISED COMMUNICATIONS FOR ENERGY CONMUSSION MEETING December 8, 2006 Minutes Minutes of November 3, 2006 Documents 11/6106 Memo from Energy Commission to Planning and Development Committee regarding Zoning Ordinance Text Amendment — Solar Panels 11/16/06 Memo from Dennis Marino to David Cook and Max Rubin regarding Electric Power Purchase Resolution 74-R-06 for the Purchase of Electrical Power for the City of Evanston 2007 Energy Commission Meeting Schedule News Releases 10106 Illinois Issues article: "The Dirt on Clean Energy" 10106 Illinois Issues article: "Ddj3 Vu" 10/06 Illinois Issues article: "Is Nuclear Energy the Answer?" 10/06 New York Times article: "In Deregulation, Power Plants Turn Into Blue Chips" *Documents enclosed