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HomeMy WebLinkAboutMinutes 1999.46 ENERGY COMMISSION MINUTES Friday. December 10. 1999 Room 2404 — 7:15 a.m. CIVIC CENTER 4� MEMBERS PRESENT: DOOLIN, GRUtitMAN. KRAFT. LEPPKE. iMICIIAELS. NAYLER, NESVIG. WARMINGTON. WOLFSON MEMBERS ABSENT: NONE OTHERS PRESENT: LARRY SUFFREDIN STAFF PRESENT: MARINO. BAASKE CALL TO ORDER The meeting was called to order at 7:20 a.m. CONSIDERATION OF MINUTES OF NOVEMBER 5, 1999 Gary Michaels moved approval of the November 5. 1999 minutes. Motion was seconded by Roy Warmington. With minor changes to the minutes, motion passed unanimously. DISCUSSION WITH LARRY SL:FFREDIN CONCERNING STATE LEGISLATIVE AND REGULATORY ISSUES (CURRENT AND ANTICIPATED) INVOLVING ELECTRICAL ENERGY Bud Nesvie introduced Larr, Suffredin and asked him to describe his affiliation with the City. Larrn Suffredin explained that he was a lawyer whose practice is governmental relations. He said that he represents the City of F vanston (City) in Washington and Springfield and that he worked with the Ncgotiating ]'cam on the franchise extension that was completed this last summer. Mr. Suffredin gave art overview of v hcre he thought Springfield and the United States Congress N%ere regarding electrical energy uses. lie said that State Senator Phillips has said that there will be no more utility legislation in this general assembly. Senator Phillips stated that any bill that is introduced in the next session regarding energy he will personally eliminate. Mr. Suffredin said that a week ago, the last bill defeated was an amendment to the deregulation bill introduced by Grundv County representatives to deal with the property tax assessment for electric generator plants. lie said there was also a 4* Evanston Energy Commission Minutes — December 10. 1999 Passe Twla bill whereby electric generators/motors that would generate electricity ►%ould be exert from Illinois State sales tax. Mr. Suffredin felt there -,+-as little chance of that bill pass in In response to the question "How is the concept of franchise changed by the new deregulation law?" Mr. Suffredin said that the concept of the franchise in public utiiitiies has been misunderstood in Illinois. Ile said that a franchise is what is given to cable television people. In the public utility area, cities ha%c been preempted forever by stag law, the state tells the cities who is going to be the electric power company and what conditions will exist. «'hat has happened. is that municipalities prior to the 1970 constitution were looking for ways to generate revenue and did not have the ability to generate revenue by taxing utilities at that point. The concept of franchise was put together as a way of getting some money and that the franchise is really an casement. The only power the municipality, had was to give the utilities access to streets and othtm rights of way. Mr. Suffredin said that the sole goal of the franchise is not to regulate the utility, but U!, make sure that the Cite is being reimbursed properly if the utilities use the City 's strei_U and alleyways and that we make sure they don't do it in such an exclusive way that we would limit other people from doing it. He said that there has always been a non- exclusive franchise in Evanston, and the City has the ability to deal with anyone they want. Del Leppke asked if the ICC is the agency that permits a company to build a distributicm system within our area. Mr. Suffredin said that the [CC grants or denies permission. Mr. Suffredin said he has a client that has proposed putting a natural pipe gas line in LAke Michigan. The purpose of that natural pipe gas line is the identification of seven locations that are within Indiana. Illinois and Wisconsin inhere peaking plants with cle-.ann fuel burning efficiency could be built and tran sretrofitied. There are 100 requests for permits for peaking plants, but the question is how does fuel get to them. Bud Nesvig asked how difficult it would be to put a p,,peline under Lake Michigan. ;Via_ Suffredin said he was not sure, but that Lake Michigan was covered by at least three Indian treaties, treaties with Canada, compacts with four states. and a public trust doctrune which basically states that the Lake cannot be used for commercial purposes. Mr. Suffredin suggested that the Commission invite Howard Learner (member of Enerzv Efficiency Trust Fund Board) for a discussion. He said that the Energy Efficiency Trust Fund Board is currently setting up their rules and regulations. Mr. Suffredin also thougrt that inviting the Citizens Utility Board periodically to the Energy Meetings would be a benefit to the Commission. Evanston Energy Commission Minutes -- December 10. 1999 Vaec Thret_ Del 1_cppke asked if the ICC will be holding hearings oft dtstrtt,utton rates Mr. Sulyredim said that the ]CC had already held those meetings and deeld'M ut L'tisnston's ta%or. %ir Suffredin said that since signing the franchise. F:vanston`s ollta�'zs in terns of duration and number appear to be reduced. He said it could K rela"'M to the weather. but it could also be related to Evanston's efforts. ,fir. Suffrrditt felt that it was important to keep letting the people of Evanston know what is going on regarding regarding Evanston's eltiuts in the energy field. He said the community doesn't understand how important this is and that the Community has got to be involved. REPORT OF DISCUSSIONS BETWEEN COMED AND THE CITY'S TECHNICAL REVIEW GROUP. Dennis Marino said that the Technical Review Group has met twice %vith ComEd over the past two weeks and on its own has met on two occasions and will meet again after this meeting, He explained that the Technical Review Group consists of Del Leppke, Rudy Wolfson, Dave Metz of Stanley Consultants. Jerry Hoppe, former Chief Engineer of the Illinois Commerce Commission. Max Rubin and himself. Dennis ,Marino and Del Leppke reviewed the ComEd document labeled "City of Evanston ComEd December g'h" with the Commission. Mr. Marino explained that this document is a revision of the official submittal required on October 351. At this time he handed out the draft communication from the Technical Review Group to the Administration and Public Works Committee which is a comment on the discussions with ComEd as well as the Feld visit. fie explained that the December 8'h document was received yesterday by Max Rubin and then given to hint. Discussion ensued regarding ComEd's latest report. Dennis Marino mentioned that ztilonday. December 13. 1999 at the Administration and Public Works Committee Meeting. COmEd has been instructed to ma%e a brief presentation or be available to answer questions about this document sshich ,Max Rubin sent to A&MV last night. The draft letter from the: Technical Re%-iew Group will be discussed at the 9:15 a.m. meeting today and will then be sent to A&P%V today. Del Leppke and Rudy %Volfson %sere asked to attend the A&PW meeting. YEAR 2000 SCHEDULE OF MEETINGS Dave Grumman moved appro\al of the Year 2000 Schedule of,\leetings. Motion seconded by Del Leppke. Motion approved unanimously. PROGRESS REPORT AND FUTURE PRIORITIES REPORT TO ADMINISTRATION AND PUBLIC WORKS COMMITTEE Dave Grumman made a motion to approve the Progress Report and Future Priorities Report. Del Leppke seconded the motion. Discussion ensued. Evanston Energy Commission Minutes - December 10. 1999 Pai;e Four Dave Grumman asked if any changes had been made to the report. Dennis Marino replied that the only the fact that for the Year 2000. the Commission wxwuld look at state and federal regulatory issues. Bud Nesvig stated that he would like number five to be changed from -Implementation of recommendation by Commission to hire a public relations consultant for the Stanley Report." to read "implementation of recommendation by Commission to hire a public relations consultant." Mr. Marino said that it could certainly be broadened to "franchise negotiations including the Stanley Report". Mr. Grumman made a motion to amend the report to read "Create a semi-annual report to the public concerning improvements to the distribution system and recent reliability experience and recommend utilizing public relations consultant where appropriate." Del Leppke seconded the motion. Motion to amend passed unanimously. Mr. Grumman's original motion to approve the Progress Report and Future Priorities Report passed unanimously. Gary tilichaels informed the Commission that this would be his last Energy meeting. His second term has expired. Del Leppke moved that the record reflect the Commission's thanks to Mr. Michaels liar his years of service. Del Leppke seconded. Motion passed unanimously_ Dennis ;Marino also expressed his thanks to Mr. Michaels for his years of service and cooperation. ADJOURNMENT There being no further business before the Committee they adjourned at 9:10 a.m. Respectfully submitted, Marti E. Waaske Executive Secretary Planning Division x ENERGY COMMISSION MINUTES Friday. November 5. 1999 Room 2402 - 7:20 a.m. CIVIC CENTER MEMBERS PRESENT: DOOLIN. GRUMMAN. KRAFT. LEPPKE, MICHAELS, NAYLER. NESVIG, WARMINGTON. WOLFSON IN1EMBERS ABSENT: NONE STAFF PRESENT: MARINO, BAASKE CALL TO ORDER The meeting «vas called to order at 7:20 a.m. CONSIDERATIO\ OF MINUTES OF SEPTEMBER 22, AND OCTOBER 5, 1999. Energy Commission Minutes of September 22. 1999 were approved with minor corrections. The vote was 7 aye with 2 abstentions. Energy Commission Minutes of October 5, 1999 were approved with minor corrections and additions. The vote was 6 aye with 3 abstentions. WELCOME NEW MEMBER Bud Nesvig welcomed Ron Nayler to the Energy- Commission. He asked Mr. Nagler to tell the Commission of his background and experience. Mr. Nagler said he had degrees in architecture, and graduate degrees in planning and public administration. Ife has worked for the City. of Boston as Director of Planning. and for the last fifteen scars has been workine in hicher education at four different institutions. Mr. `a%ler added that he has been in%olved with design and development of comprehensive energy, policy statements, programs and design or development of cogeneration facilities. I le mentioned that he developed and managed the largest single most comprehensive energy conservation program that any college or university had undertaken in the country. Also. he has negotiated vuith many different utilities in many different states. Del Leppke made a motion for the Commission to thank Janet l4offman for her years of service on the Energy Commission. Dave Grumman seconded the motion. Motion passed unanimously. 1999/2000 ENERGY COMMISSION PLANS Dennis ,Marino distributed copies of the draft set of revisions that were based on the Commission discussions at the last meeting. He said that he and Gary Nlichaels had revised the draft of major items that the Commission was already engaged in based on the Evanston Energy Commission Minutes - November 5, 1999 Page Two discussion last month and the tact that the Ctt% had adopted a franchise with a three-year extension and two one-year option % cars. The revisions consisted of: Monitoring ComEd performance in implementing the franchise agreement including all construction prniects. Monitor frequenc% and duration of outages Present quarterly reports about inipro%ements to the distribution system and also evaluate reliability experience working in conjunction with the Technical Review Group. I laving a senti-annual report available to the public. Explore and recommend Cit% implementation of initiatives to take advantage of deregulation and new trends in emerging opportunities in the utility industry. Three issues are to be emphasized - aggregation, alternative power supply and potential business partners. Review and advise the City Council concerning interaction with ComEd and the Illinois Commerce Commission. Explore potential linkages between the Technopolis Proiect and electric service issues. Del Leppke said his understanding of "monitoring" meant that the Commission would review the efforts of the "technical Review Group and City staff in monitoring ComEd. Del Leppkc: said it was his understanding the Larry Suffredin was relied on to keep the City informed and acted in the City's interest in presenting our case to the legislature and the Commerce Commission. Dennis Marino said that the Cit} also relies on the various state representatives and state senator representing Evanston to advocate our case involving the legislature and with other certain agencies. 1Ir. Suffredin's specific involvement with regard to energy issues ham been focused can the deregulation bill as it %vent through the legislature one and one-half tears ago, and then most recently being a chief negotiator for the City with Common%eca th Edison. Dave Grumman asked if Mr. Suffredin would come to Energy Commission meetings occasionally. Dennis Marino said he would im ite Mr. Suffredin to he at the Commission's December meetint!. Bud hes% ig asked two or three members of the Commission to get together to prepare a few questions to be asked of Mr. Suffredin. Del Leppke mentioned that a bill was introduced in the legislature at the general assembly that will lower the threshold for %hen a utility is liable for damages from 300.000 customers affected to 1.000 customers affected. David Kraft gave Mr. Marino a copy of that bill and asked that the Commission receive copies. Evanston Encra Commission Minutes — November 5. 1999 Pagc Three Ron Nagler thought that ad% ising the Cit% Council about legislative actions (congressional) should be added to the %%ork -]an. Dennis Marino said he would add that to Item 6. With amendments suggested by David Kraft and Ron Nagler. the 19IM2000 Cnerg) Commission Plan was passed unaninurusl\ . 1999/09 ANNUAL REPORT TO THE CITY COUNCIL Dennis Marino said, if the Energy Commission approved, he would include the 1998/99 Annual Report to the work plan in a memo submitted to the Cite Council. RECENT RELIABILITY REPORT Dennis Marino said that Sfax Rubin was not able to be at today's meetine. but he had reported to Dennis that there %%ere a very limited number of outages since the last energy meeting in October and that those outages were short in duration. Mr. Marino stated that Max Rubin is betting improved reports from ComEd and that a report for the last year and a half was passed out to Commission members this morning. This report will be the subject of a discussion next Thursday on the part of the Technical Revie%% Group. tic also had distributed a progress report of C omEd's committed construction projects. NEGOTIATING TEAM DOCUMENTS Bud Nesvig asked that copies of the Business Partner Report prepared by Max Rubin. Negotiating Team Documents, and a draft of a franchise prepared by Larry Suffredin be mailed to Commission members. GLENVIEW/COINIED S85,000 REIMBURSEMENT Dud Nesvig reminded the Commission that in November 1995 the downtown area of Evanston was shut down for approximately a day or more. The; Cite billed ComEd approximate:[\- S42.000 fir police and lire protection. ComEd refused citing t%\o different acts of State Legislature. Mr. Nesvig requested staff to look into this matter once again. Dennis Marino said the proper procedure is to ask the law department do an analysis of why GIcnvie%%'s invoice was paid and I:vanston's invoice was not. The Commission requested such a document. PLANNED AUTOMATION OF EVANSTON DISTRIBUTION SYSTEM Dud Nesvig felt that sonic clarification needed to be made regarding an article from Coml:d stating that Evanston %\ould be the first fully automated distribution system. lie asked Dennis Marino if the City had done an -,thing to refute this claim. Mr. Marino, said that as of now. the City has not clarified the press reports/releases prepared by the media consultant that were slightly different from %%hat was actually committed to by ComEd. He said that a future clarification could be made in a broader package that comments on performance. perhaps sometime in January. 2000. Discussion ensued regarding ComEd's Evanston Ener*• Commission Minutes — November 5. 11999 pact automation of the Evanston distribution s%sre-m. ComEd %%as going to autttm.Ne elc%tnc substations. not service to individual homes ENERGY POLICY Dennis Marino reported that betbre tie could complete the report. he %could haN c a discussion %%ith David Kraft. The report would be rrady for the December meeting COININIUNICATIONS Communications were accepted and discussed. David Grumman submitted several articles from the New York Times regarding such topics as "Demand for Smart Power.- "Aggregation." and %%-hat other states are doing in deregulation. David Kraft thought the Commission should have discussions regarding the creation of the Energy Efficiency Trust which is a $250 million fund that is being set up. contingent on the Coal Plant sale. lie said this fund might he available for some Evanston projects in terms of energy efficiency, or micro technology. Mr. Kraft also mentioned the proposed CornEd Peco merger and wondered how that will effect the financial sheets. and what it will mean specifically in terms of the cascade of reliability. OTHER BUSINESS Del Leppke asked Dennis ,'Marino to get some information on what is happening with the Northwest :Municipal Conference. Bud \'esvit suggested that the manager of the Winnetka Distribution System br invited to the January meeting. The Commission concurred. ADJOURNMENT Meeting adjourned at 9:15 a.m. Respectfully submitted. Mary E B ske Planning Division do* ENERGY C4NIMISSION MINUTES October 5, 1999 Room 2402 - 7:29 a.m. CIVIC CENTER MEMBERS PRESENT: DOOLIN, LEPPKE, MICHAELS. NESVIG. WOLFSON MEMBERS ABSENT: GRUMMAN. DRAFT, NAYLER. WARMINGTON STAFF PRESENT: MARINO, RUBIN. BAASKE 1. CALL TO ORDER The meeting was called to order at 7:20 am. if. WELCOME NEW MEMBERS Bud Nesvig welcomed Rudolph Wolfson to the Energy Commission. lie asked Mr. Wolfson to provide the Commission with a summary of his professional background. Mr. Wolfson said that his experience is in underground distribution as it relates to water and waste% ater treatment facilities. lic said that on most of the large treatment facilities a medium voltage underground distribution system was used to serve the plant equipment. fir. Wolfson added that he was basically a power engineer in the utility field as it relates to municipal works. III, 1999 — 2000 ENERGY COMMISSION PLANS AND PRIORITIES Dennis Marino drew the Commission's attention to two memorandums in their packet wftich addressed these subjects. I le explained that the draft 1999-2000 Work Plan was an effort on the part of Gar), Michaels and himself to list the things that were reasonable items for Commission discussion related to items to be included in the work plan. The Commission discussed the Following priorities regarding 1999-2000 Energy Commission flans and Priorities: I. Monitor ComEd performance in implementing the Franchise Agreement, including construction projects. 2. Monitor reliability of ComCd. 3. Review, Revise and monitor implementation of Energy Policy. 4. Present quarterly reports of impro,-ement and reliability experience. Gary Michaels said that he thought it a good idea that, with the quarterly reports that are going to be analyzed, a report be generated for public information. The Commission agreed that a quarterly report would be submitted to the Council and the public, and a more extensive report would be made available every six months. Various approaches to get this information to the public were discussed. 5. Del Leppke said that, regarding the Work Plan, he would like to see a separate item saying that the Commission intends to review and ad% ise on the City's liaison with Commonwealth Edison and the ICC_ 6. Exploring potential linkages between Technopolis project and electric service issues. Evanston Energy Commission Minutes -- October 5. 1999 Page Two Dennis Marino explained that the goal of Technopolis was to get high speed inwmct connection into all parts of Evanston including businesses. institutions and residential. It was questioned if there was a linkage between Technopolis and electric service issues. Nfax Rubin stated that there were surveys out in the community now that are hcjping TechnopoIis put their business plan together. Dennis Marino mentioned that the Economic Development Committee had provided some pilot funding to the Dempster Street Merchants Association to build a web site where they could list their stores. products, etc. He added that ComEd had agreed to meet with the Technopolis people and to explore how they can be helpful as Technopolis goes forward. Discussion ensued regarding the different aspects of Technopolis. Bud Nesvig asked Mr. Rubin to send the Energy Commission members any information he had describing "rechnopolis. IV. REPORT ON OUTAGES Del Leppke said that the first progress report from ComEd was due in approximately one week. Max Rubin said that the sixth month report he received contained a list of outages. Max Rubin stated that David Metz of Stanley Consultants was revie%%ing and analyzing the data. He said that a meeting was being arranged for the last part of October with the Technical Review group. In response to a question from Del Leppke, Dennis Marino replied that David Metz would be working with the City in reviewing and analyzing the data received from ComEd. He said that they were trying to arrange a meeting in late October for various parties to get together. Bud Nesvig asked if the Commission had received a listing of work ComEd intended to do in Evanston. Dennis Aiarino said that there was an exhibit included in the Letter of Commitment from ComEd that gave an itemized list of committed projects. Del Leppke asked if, within that document, a table was included giving a breakdown of specific work that ComEd is going to do. Ile said that he did not think that the contract obligates ComEd to list the specific work. It obligates them to, µithin 45 days, meet with the Commission and answer questions. Implementing 0t'v Ene rKy Policy. Dennis Marino that Del Leppke had suggested changes to the policy. and since David Kraft had a leadership role in the current policy, he would like to meet with Mr. Kraft sometime in the next two weeks. He would then present a revised energy policy at the November Energy Commission meeting. Del Leppke asked if the City's liaison with ICC is best expressed in the Commission's work plan through the Energy Policy or as a separate item in which the Commission would be involved. Dennis Marino said that the Energy Policy provides a logical context for addressing what the City's goals should be vis-a-vis the ICC as a sway to implement the coals that are in the revised energy police. Another way would be for the Commission or other Evanston Energy Commission Minutes —October 5. 1999 Paee Three bodies to make recommendations to A&PTV and City Council to do something vis-a-vis the 1CC. He said that there should be some context %%4in the energy policy to talk about the role of state regulation and why that's important as an implementing device to achieve those goals in the energy policy. V. CONIED REPORT ON INADEQUACIES AND TRANSIMISSION AND DISTRIBUTION SYSTEM. Bud `esvig gave the Commission copies of the report. Del Leppke said that a question should be asked of our liaison with ComEd to see if there is any substation (among those that serve Evanston in the list of 27 substations in the report) which have been described in trouble. VI. REPORT ON OUTAGES Max Rubin said that he had previously given the Commission the list of August outages. Del Leppke said, since different terms meaning the same thing were used, perhaps the Commission could get a compendium of those definitions so the reports could be better understood. The Commission discussed the Outage Report. VIL BUSINESS PARTNER REPORT Max Rubin said he had used the RFP format from the City as a guide to constructing an RFP for the Energy Commission. He explained the four phases of the RFP. Mr. Rubin said that the City was looking for a firm that had the qualifications to perform Phase 1 and Phase II. He said the City wanted to find out the (irm's history and their experience working with government in partnering. After the decision is made, the qualifying firms would meet with the City. and that is when the City would ask for their proposal including financial projections. VI11. COMMUNICATIONS Dennis Marino reviewed the communications with the Commission. IX.GLENVIEW COMPENSATION ISSUE: IMPLICATIONS FOR EVANSTON Bud tiesvig stated that in 1995 ComEd refused the City's request to be reimbursed for outages. He said that Glenview should be contacted to find out how they had received reimbursement for their outages amounting to S84.000. X. ADJOURNMENT There being no further business before the Committee, the meeting adjourned at 9:20. Respectfully submitted, Mary E. Baaske Executive Secretary it NIE51BERS PRESENT: NIE31BERS ABSENT: ENERGY COMMISSION MINUTES Wedncsday. September 22. 1999 Room 2402 - 7:20 a.m. CIVIC CENTER DOOLIN. GRUMMAN. WARMINGTON KRAFT. HOFF,MAN STAFF PRESENT: MARINO. RUBIN, BAASKE I. CALL TO ORDER The meeting was called to order at 7:20 a.m. DRAFT LEPPKE. MICHAELS. `ESVIG. H. CONSIDERATION OF NIINUTES OF AUGUST 3, 1999 The Committee discussed the minutes of July 2. 1999 and August 3. 1999. The appro.-al of the Nlinutes of July 2. 1999 «ere postponed until the October 5, 1999 meeting. One of the items discussed in the August 3 minutes was Del Leppke's inquiry about who the. Technical Committee is, who it reports to, and ghat its charter is. Dennis Slanno explained that the Technical Committee was an outgro%%lh of the Negotiating Team. The people listed as the technical committee were people within the Negotiating Team that did a considerable amount of %kork - fed by Del Leppke with Da%e Metz as a principal consultant in terms of reliabilit% issues and malty other issues. Dave Grumman though that ;Monitoring Team %%ould be a better name than Negotiating Team, Mr. Manno said it is basicaliv a group that could periodicall,. meet «ith Mr. lvletz and I'vIr. Leppke to tbcus on monitoring. Mr. Leppke said he %%as concerned %%ith who takes the initiate with respect to this committee to see that its function is carried out. Mr. Marino replied that statf'consisting of himself and Max Rubin would play that roll vis-a-vis the consultant and then pull even•one else together on a regular basis. lie added that no•% that staff has the outage and reliability data it can be gi%en to Mr. Metz. Motion was made and seconded to approve the Iviinutes of august 3. 1999 as corrected. !Motion passed 5 ayes. I abstention. Jr Evanston Energy Commission Minutm-Septerubgri, I Q99 Pa ` r 2, tit: I999-2000 EtiERGY COMMISSION PRIORITIES 1999-2000 Energy Conunission Priorities was postponed until the October 5. 1999 meeting when two new members {Rudolph Watson and Ronald Nailer ) will be in attendance. IV. COINIMISSION NIEIIBERSHIP REPORT Dennis Marino informed the Committee of Janet Hoffman's intention to resign from the Committee. He added that Rudolph Wolfson and Ronald Nayler had been appointed to the Energy Commission. V. RECENT ELECTRIC SERVICE RELIABILITY AND OUTAGES Dennis Marino reported that there were not any significant outages in Evanston of substantial duration in August or September. He added that Max Rubin viIl provide that information at the next meeting. Bud tiesvig suggested that Evanston residents be alerted to call in to Max Rubin when they have an outage so it can be tracked. Other members stated that ComEd will be tracking outattes. It %vas aLreed that ComEd data on outages %%ould be compared with City data. Dennis Marino said he would secure a copy- of ComEd's Distribution and Transmission systems report. Discussion ensued regarding citizens calling the Cite reporting, outages and calling ComEd and reporting outages. Roy' Warmington said a comparison could be made between ComEd's list of outages and the outaFaes called in to the Cir%. VI. RECENT COtii ED REPORT TO [CC CONCERNING DISTRIBUTION AND TRANS,tiIISSION SYSTEMS Bud Nesvig said that this report refers to an 800 page document which has not vet been received by the Ctt�. Dennis Marino said that the Commission already has an Executive Summary of that report and was currently waitinu for the full document. Del Leppke asked if the 800 page report would be available to the public at the Evanston Library. Dennis Marino replied that there is a section for Boards and Commissions and Cite documents at the library Ile mentioned that the City Clerk snakes documents available upon request, Significant Cit% documents are also available through the reference section at the main library and that the branch libraries also have some materials. Mr. Marino said that if there ►%-ere documents the Commission felt should be included in the reference section of the library, he %%ould +wrk %%ith the library, to Let that accomplished. Evanston Energy Commission M_8nUJa _ Sgp1CMhrr ")') 1994 p*ycj V11. DISCUSSION OF SCOPE OF PLANNED AUTOMATION OF DISTRIBU'TION SYSTEM This was held o%er for the October 5th meetin,. VIII. CONSIDERATION OF USE OF CONSULTING FIRM TO GENERATE AN RFP FOR BUSINESS PARTNERS After much discussion. Dennis Marino said that over the next two %%eeks \la.\ Rubin will discuss with Del Leppke the Phase I approach which consists of -hiring an entreprencurial entity that may actually be in the long: -term bidding far being a long-term partner. He felt that there needed to be more discussion and more development of that concept sip that there will be a written concept that can be part of the priority setting at the next m Vurig- Del Leppke added that he too. would be in touch with Max Rubin and have a report for the next Energy 'Meeting. Max Rubin joined the meeting at this time. Gary Michaels said that there should still be a place for a third -party consultant because each company will have their own agenda. That could Let confusing as to what is best for the client and what is best for the contractor. David Grumman agreed and thought that a consultant would be better at analyzing. IX. NEGOTIATING TEAM DOCUMENTS Dennis Marino stated that the Commission has a copy of the franchise agreement and all supplementary documents. The open session minutes are available and will be _liven to the Commission. the executive session minutes have not been released yet. Bud Nesvig asked for a copy ul' Jerry Hoppe's resume. \.,fr. 'Marino replied that he %yould at least get a summary of Mr. Hoppe's experience it'not his resume. X. COMMUNICATION WITH MUNICIPALITIES AND COUNCIL OF GOVERNMENTS {COD'S) In response to a question from Bud Nesyiz. Dennis Marino replied that outside of the North%%est Municipal cont'erence he t%as not a%%are of another entity in %%hick either staff or elected officials regularly participate in unless it is the U. S. Conference of Mayors meetings or the National League of Cities meetings. He added that there is not enough staff to go to all of those ttteetings. and that %that t%e do is pick up from press %%fiat may be going on in certain meetings that t%e are not a%%are of. If it is %cry germane and important to Etznston's interest staff follo%%s up on it. Del Leppke asked %%hat is the policy of cif. staff regarding informing the Energy Commission of actions taken relatitz to the energy systems in Evanston. Is there a feeling that the Commission needs to kno�% %%hat their doing or is there a feeling that you only respond to what the Commission requests. Dennis Marino replied that not onl% does staff' respond to requests but also shares issues that emerge or new information received. Mr. Leppke requested that there be a standard item on the agenda \xhere staff reports to the Evanston Energy Commission Minutes - Septemlwr 17 t 999 PA&C-4 Commission on any contacts or participation that they know of with regard to organizations that Evanston is a member of or participant regarding energy matters. Bud Nesvig inquired .%ho contacts our state senator's and representatives and lets them know what the City would like to have done. Dennis Marino answered that it depends on the issue and that Larry Suffredin is the City's go%ernmental affair specialist. XI. 1998 REPORT TO CITY COUNCIL Dennis Marino said that there was a draft included in a previous packet that has revisions and the intention is to submit it alone with whatever comes out of the October Sth meeting so that both items could be approved at the same time. XII. ENERGY POLICY Del Leppke said that looking at the Energy Policy as it now exists. it is not clear as to what the City believes its function is regarding the control or monitoring of Commonwealth Edison. The policy is more concerned with environmental matters, concern for efficiency matters, etc.. but doesn't state a policy relative to the City's relationship with the ICC and Commonwealth Edison. Mr. Leppke thought that the policy is outdated and needed some revision. He said the Cit% Council needed to state what it believes the Commission should do with respect to monitorinL energy suppliers. Dennis Marino said that ~what is needed now is a re%ised draft that reflects current core issues and makes reference to the current draft in some sway. but centers an energy policy more on the real issues that have been dealt with in the last one and one-half years. He volunteered to do a draft for consideration at a future meeting. Mr. Marino added that the revisions to the 1986 Comprehensi%e General Plan has a section on energy that is more germane to the issuers the Commission is about than the Energy Policy reflects. He added he would do a synthesis of both the Enersvy Policy and the revisions to the section on energy in the Comprehensi%a General Plan. Dave Grumman asked that. in the future, all action items be listed at the beginning of the agenda. XI11. ADJOURNMENT. There being no further business before the Commission. they adjourned at 9:20 a.m. Respectfully submitted !Wary E aaske Executive Secretary Planning Division K ENERGY COMMISSION MINUTES Tuesday, August 3. 1999 Room 2402 - 7:20 a.m. Civic Center MEMBERS PRESENT: KRAFT. LEPPKE, MICHAELS, NESVIG. WARMINGTON MEMBERS ABSENT: DOOLIN, GRUMMAN, HOFFMAN STAFF PRESENT: MARINO. RUBIN. BAASKE I. CALL TO ORDER The meeting was called to order at 7:24 a.m. II. REVIEW OF CITY/COM ED AGREEMENT Energy Commission members reviewed the City/Com Ed Agreement. They agreed that a Monitoring Committee consisting of Del Leppke. Dave Metz, Jerry Hoppe, Max Rubin, Dennis Marino and perhaps others would analyze the 98 data received from ComEd. Mr. Leppke felt that the 98 data should be analyzed and compared to the data received in 97 and 96 to see if the same circuits are still bad or if there are additional bad circuits. Bud Nesvig requested that copies of the ComEd report be given to all Energy Commission members. David Kraft asked if Corn Ed would provide their cost of construction improvements. Del Leppke replied that Com Ed had said they would not provide that information. Bud Nesvig stated he would like to see ComEd clarify their news release stating that Evanston is going to have a fully automated system. He quoted the article as follows: "This will make Evanston the first City in the ComEd ser• ice area to have a fully automated monitoring system". ,Mr. Nesvig felt that statement was totaling misleading. David Kraft suggested a letter to the editor from the City Manager or Mayor Morton ackno► iedging the work with the negotiating team and perhaps adding that there is one correction to be made. Del Leppke mentioned that lie had tried to make some correction in his presentation to City Council. Also, he had spoken to a reporter with the RoundTabie and an article had appeared in the RoundTable specifically addressing this statement. Max Rubin thought that the public cared about the performance of ComEd, not the activities done to accomplish that performance. Roy %%'armington asked if ComEd planned to fully automate the system, or just the substations. Dennis Marino replied that only the substations would be automated including recording devices. As a point of clarification, David Kraft proposed that a letter to the editor be written explaining that the wording "fully automated system" was meant to mean fully automated substations. Roy Warmington seconded the motion. A quorum not being present, the motion was tabled until the next Energy Meeting. k Evanston Energy Commission Minutes - Aueust 3. 1999 Psgr T%% III. BUSINESS PARTNER REPORT A. Request for Proposals Bud Nesvig said that the Committee should send out an RFP to possible natural gas suppliers, electric power suppliers and companies supplying generating systems. Mr. Draft asked if the old RFP would be used. Mr. Nesvig replied that was no longer viable. but that the contacts could be utilized. Mr. Kraft felt that more direction was needed fm-,m Council Mr. Leppke thought that the Commission should begin to take a look at the major electric users in Evanston and start consulting with them as to what they might be willing to support or consider. Perhaps using this analysis will define what might be feasible or realistic in the Commission's approach. Secondly, he thought it would stimulate some discussion'consideration within the Evanston community and then the Commission could refirm: that as to how they should proceed. IV. 1998 REPORT TO CITY COUNCIL Bud Nesvig asked about the 1998 Report to City Council. Dennis Marino replied that he And Dave Grumman worked on that report and have provided a draft which would be revised and provided to the Energy Commission for the September 22 meeting. Mr. Marino said that copies of the 1998 Electric Reliability Report from ComEd would be sent to the Energy Commission as soon as he received therm. Commission members decided that the September 8 meeting should be canceled and the next meeting would be September 22, 1999. Del Leppkc thought that the 1998 Electric Reliability Report should be studied by Commissioners for comment for the September 22 meeting. V. COMMUNICATIONS Dennis Marino summarized the communications submitted in the packet. VI. MEMBERSHIP Mr. Kraft made a motion that the Commission recommend to City Council to add members to the Energy Commission, specifically members from Northwestem. Motion seconded by Gary Michaels. Mr. Ncsvig clarified that a commission member has to live or work in Evanston. Discussion ensued regarding the motion. It was decided that Mr. Ncsvig would speak to the Mayor regarding future appointments. Mr. Leppke said his preference was for a liaison with Northwestern. The Commission decided that liaisons were needed from several other Committees and businesses in Evanston. VII. ADJOURNMENT There being no further business before the Committee, they adjourned at 9:07 a.m. Respectfully submitted: Mary E Baaske Executive Secretary planning Division x ENERGYCOWNIISSIO.N.MINUTES Frida%, Juh _. 19" - 7:20 a.m. I►IEMBERS PRESENT: GRUMMAN. IIOF»~ MAN. KRAFT. LEPPKE. MICHAELS. NESVIG. WARMINGTON MEMBERS ABSENT: DOOLIN STAFF PRESENT: MARINO. RUBIN. BAASKE I. CALL TO ORDER The meeting was called to order at 7:20 a.m. II. APPROVAL OF MINUTES OF MAY 4. 1999 AND JUNE 4.1999 The minutes of the Energy Commission meeting held June 4. 1999. were approved with several revisions suggested. Minutes of May 4. 1999 approved with several revisions suggested. III. EXECUTIVE SESSION The Energy Commission entered executi%c session for the purpose of discussing negotiating strategy at 7:25 a.m. by roll call vote of members present. The public meeting resumed at 7:40 a.rn. IV. PROPOSED EXTENSION OF 1957 FRANCHISE Del Leppkc gave the Commission an update of the changes to the 1957 Franchise. ( The changes arc listed in bold type.) The Commission decided that the statement "This will make Evanston one of the first cities in the ComEd service area to have a fully automated monitoring system" might be misleading to some residents and a clarification should be submitted. Mr. Leppkc stated that the reports previously listed as being submitted on December 31, 1999 has been moved to October 31, 1999. In the following statement: "To help Evanston officials monitor and analyze the results described in Exhibit A and to better understand the improvement of ComEd's delivery services throughout Evanston. Coml.d will provide Evanston with information relating to capacity and reliability projects completed during the reporting periods. Page 4 Item C. specifically added were the words "they define in their report whether the eruption occurred in the primary line, secondary line, or service feeder. In the earlier draft, the Commission asked ComEd to pay for an independent engineer, to which ComEd replied that were unable to do. but they have provided a grant of $40,000 a year for the City's discretionary use, which could be used to pay for an engineer. 3ei Evanston Energy Commission Minutes - July 2. 1999 Exhibit A Project Two - no change Paze 2 Project Three - eliminated specific reference to €2kv feeder lines and added switching and rebuilding portions of overhead lines. Project Four - added the study on loads to any feeder loaded to 90% or more. After the first report which is nine months apart, the reliability or the report is now listed as semi-annual. Mr. Leppke stated that 45 days after each report, ComEd will meet with the City to discuss the information in the report_ Project 10 includes an action item that ComEd will notify customers if the service line contacts the trees and advise that the trees need to be trimmed and if they get no response they will notify the City. Dennis Marino passed out maps showing marked areas corresponding with Exhibit A. Project €2 was added where ComEd agreed to use Appendix O of the Stanley Report and verify the locations where the report states some corrections were needed. Mr. Leppke added that report was done without a ComEd representative, they're going to verify that and advise us of whatever actions they will take. Project 13 was added where ComEd will provide 1,500 trees to Evanston. These trees will be approximately 6' to 8' tall and a mix of varieties. Exhibit B At this time, Mr. Leppke stated that the Cite has not negotiated a franchise, but extended an existing franchise, and negotiated a Letter of Agreement that allows Evanston to work with ComEd for three years hoping that at the end of three years the City can negotiate a franchise with ComEd or seek a different option. Page ii of Exhibit B under Wildlife Protection was altered so that it states that ComEd first restores service and immediately thereafter installs wildlife protection. Technical Services section added Page viii Item E deals with energy efficiency review of one building. The elaborate program of tree replacement mo.as completely taken out of the agreement with the understanding that normally tree replacement does not occur except under exceptional circumstances. Dave Grumman made a motion to recommend City Council approve the proposed Letter of Evanston Energy Commission Minutes - July ?. 1999 Agreement dated June 25. 1999. Del Leppke seconded the nxitit n. Discussion rnsued. passed. 5 ayes, I nay (Nesvig) I abstention (Kraft). f?` 3 Mr. Grumman made a motion that Del Leppke's Statement .-,f Reservations (concerml be attached to the motion as information to the City Council. Del Leppkc seconded the rmx5m. That statement is as follows: "We remain concerned that projects committed by ComEd in Exhibit A in the Letter of Agreement are not specified in sufficient detail to fully der= the scope of work. Therefore, the City must be diligent in their rer iew of the quarterly repccm 2md maintain consistent contact with ComEd to assure that these projects are completely fully and in a timely manner to be effective in accomplishing the objectives". The motion passed unanimously. Mr. Leppke proposed a motion to attach the following statement. "We remain concerned that no specific goals were committed or even targeted for the amount of reduction and the frequency of outages. the amount of reduction in the duration of outages and the arnatutt of Capacity margin in backup feeders. Therefore, the City, must utilize diligent oversight by competent technical staff or consultants to promptly evaluate the semi-annual reports as receiwd from ComEd. These evaluations must detennine whether the committed projects and other programmatic actions by ComEd are efTectise in accomplishing objectives, and if not must lead to prompt and effective discussion on additional projects or actions to improve effectiveness". Seconded by Mr. Grumman. Motion passed unanimous[,,. Dennis Marino stated that he would work with Mr. Leppke in preparing an appropriate transmittal to Council. Mr. Leppke proposed a third attachment. "We recognize that the short duration of the franchise extension and the possibility of the 90 da% cancellation gives the City the opportunity to redr= luck of diligence or ineffectiveness on the part of ComEd. However, we would urge the City to diligently stay current with alternate wa,,s to improve the electric service in Evanston-. Mr. Grumman seconded the motion. Motion passed unanimously. Bud Nesvig moved that the Cite Council. by signing this agreement, has implicitly agreed to take legal action whenever ComEd does not complete its assignment or cancels the exunsion of the franchise, hire a competent experienced electrical engineer to assure adherence to the agreement or cause legal action or cancellation. Discussion ensued. David Kraft seconded the motion. Motion failed I ave.4 nays, 1 abstention. Gary Michaels proposed a fourth attachement. "The City sees the improvements outlined in this Letter of Agreement as normal cost of doing business and therefore no specific fees %,-ill be charged to the citizens of Evanston. Ro% Warmington seconded the motion. Motion passed unanimously. A fifth attachment was proposed by ,POr. Kraft. "Adoption of this Letter of Agreement provides a unique opportunity for the City to obtain objective and specific information regarding the monetary value of portions of the distribution system within the City boundaries. The E%*anstm Energy Commission recommends that the City requires ComEd to provide an itemized dollar Evanston Energy Commission Minutes - July 2. 1999 Pl=e 4 valuation of all itemized distribution system upgrades. Dare Grumman seconded the mr.ttion. Discusion ensued. Motion passed 4 ayes, 2 nays. Adjournment Meeting adjourned at 9:23 a.m. Respectfully submitted, Mary Baaske, Executive Secretary Planning Division x DRAFT . ENERGY COMMISSION MINUTES Tuesday, June 4, 1999 - 7:15 a.m. MEMBERS PRESENT: DOOLIN, GRUMMAN. LEPPKE. MICHAELS, NESVIG, WARMINGTON MEMBERS ABSENT: HOFFMAN. kRAFT STAFF PRESENT: MARINO. RUBIN, LEYENDECKER. FARQUHARSON CALL TO ORDER The meeting was called to order at 20 a.m. Bud Nesvig acknowledged the fact that this was Joan Farquharson's last meeting with the Commission and thanked her for the excellent service she had provided to the Commission since its creation_ Joan thanked Mr. Nesvig for his comments and explained that she would be working as a real estate brokcr in Evanston. Members formally adopted a mtion of gratitude for Ms. Farquharson's service. CONSIDERATION OF MINUTES OF hIAY 4, 1999 The minutes of the Energ} Commission meeting held Mpy 4. 1999 were amended and approved with several revisions suggested. EXECUTIVE SESSION The Energy Commission entered executive session for the purpose of discussing negotiating strategy at 7:25 a.m. by unanimous roll call vote of members present. The public meeting resumed at 8:45 a.m. ANNUAL REPORT TO CITY COUNCIL Members discussed a draft copy of report to the City Council which identified 1998-99 Accomplishments and a proposed 1999-2000 Work Plan. Members agreed to consider this for action during the July Meeting. MEETING WITH NORTHWESTERN UNIVERSITY Reference was again made to discussions with NU representatives concerning unsatisfactory electric service reliability on campus. Del Leppke agreed to do some additional research and identify possible solutions. BUSINESS PARTNER REPORT Max Rubin reported on the need to return with this issue to A&PW at the appropriate time. He agreed to meet with Mr. Nesvig to do additional refinement of this possible approach. X! I7rAWFF1r U f nmmiecinm Miniitre Pages 7 PUBLIC RELATIONS Members stressed the importance of continuing to use NIK Communications as franchise negotiations progressed. Del Leppke acknowledged the importance of doing this at the appropriate time~ M ENERGY COMMISSION MEMBERSHIP Bud Nesvig commented that three positions were vacant and that it was his understanding titer the Mayor did not intend to fill these vacancies at this time. He added that the recommendation to add David Kraft as an alternate to the Negotiating Team had not been addressed. COMMUNICATIONS Dennis Marino summarized the communications which had been included in the packet ADJOURNMENT The Meeting adjourned at 9:05 a.m. Dennis Marino, Planning Division APPROVED ENERGY COMMISSION MINUTES Wednesday. March 31. 199a - 7:15 a.m. ME:<IBERS PRESENT: GRUMMAN, HOFFMAN. KRAFT. LEPPKE, MICHAELS, NESVIG, WAItMINGTON MEMBERS ABSENT: DOOLIN STAFF PRESENT: MARINO, FARQUHARSON OTHERS PRESENT: DICK SCHOEN CALL TO ORDER The meeting was called to order at 7:20 a.m. EXECUTIVE SESSION Bud Nesvig stated that the Energy Commission would be entering executive session and Mr. Schoen would have to be excused until the public meeting resumed. Mr. Schoen left the meeting. The Energy Commission entered executive session for the purpose of discussing negotiating strategy at 7.20 a.m. by roll call vote of members present (5 aye). During executive session, Janet Hoffman and David Kraft arrived. The Energy Commission resumed the public meeting at 8.31 a.m. APPROVAL OF MINUTES OF MARCH 2, 1999 The minutes of the Energy Commission meeting held March 2, 1999 were approved as submitted. 7-0. OTHER REPORTS Bud Nesvig had a list of requests which staff responded to. He was interested in obtaining any minutes available for%%hat he termed semi-annual meetings between ComEd and Cite staff as well as minutes from a ,Mayor's Committee that, according to .%1r. Nesvig. had discussed the electric issue. Dennis Marino responded that, to his kno« [edge, staff has not been involved in semi-annual meetings with ComEd. He further responded that a request would be made of the North Shore kfa%ors Group to ascertain if minutes are available. Bud Nes%i£ asked i'vlr. Marino to report on his trip to a western state. Mr. Marino indicated that he had attended an Energy Conference in Tucson. Arizona where Las Cruces and other communities were invited to make a presentation. The City of Tucson is considering %%het.her to renew its electrical service or to look at alternatives and had in ited various communities to attend. There are no minutes of the conference. Mr. Nesvig inquired about the status ofother requests for data. The ComEd 8K and 1OK reports and a listing. of electrical outages for Evanston since September, 1998 has been requested. The ComEd annual report is not yet available but has been requested. [CC reports on reliability have been requested and received. Mr. Ncsvig stated that he was interested in recei%ing certain other ICC and FERC reliability reports. Mr. Marino reported that a request had been made of ComEd and the ]CC. Additional requests of the ICC could be made directly by Mr. 1es% ie provided that he identify their use for Commission purposes. since there %% ill be no reimbursement required. Regarding: the status of the electric options fund as requested bs %lr. Ncs% i4z. Dennis %larino had arranged a meeting bemeen Ra% Doolin and the City's Chief Accountant in Januar} to explain the City's financial reporting s} stem. Mr. Doolin had agreed to create a quarterl% reporting s% stem an eneruN expenditures. PC PV.7 T�t/94 PUBLIC RELATIONS David Kraft was asked to address this topic. Mr. Kraft gave credit to the Public Relaticuis firm that had been hired for the fine job done thus far. Mr. Marino added that the firm is %►corking under Mr. Suffiredin's direction. Mr. Kraft stressed the importance of continuity with respect to future public relations efforts. EINERGY POLICY Del Leppke had previously distributed some suggestions regarding the Energy Policy. Disc=ion ensued about his suggestion to rewrite the first article which would call for the City to become a more active participant in the implementation of the policy. Roy Warmington and David Draft provided historical background on this issue. They reported that they had been on the Implementation Committee which had disbanded due to lack of participation on the part of the Environment Board and the City. Mr. Leppke brought forth the idea that a consultant might be hired on retainer to implement the policy. If a new agreement is reached with ComEd, who will audit it? The City must be an active participant_ ENERGY COMMISSION 1999 AGENDA Gary Michaels recommended that the Energy Commission continue meeting monthly and move ahead in its work_ He requested that this item be removed from the Agenda in the future. EEC ANNUAL REPORT TO CITY COUNCIL Dennis Marino and Dave Grumman are giving attention to this item and will report back to the Commission. ADJOURNMENT Meeting adjourned at 9:08 a.m. i l .loan rquharson fanning Division MEMBERS PRESENT: MEMBERS ABSENT: STAFF PRESENT: ENERGY COMM11S1ON -IINUTFS Tuesday, Match 2 10" • 7:15 a.m. DOOLI`. GRt iMMA\. I I:I'I'KI:. WARMINGTON HOFFMAN. KRAFT APPROVED ,\11('IIAI,'I S, NESVIG, MARINO. RUBIN. LE-Yk:NDE.CKER. I:ARQt)I IARSON CALL TO ORDER The meeting was called to order at 7:20 a.m. DISCUSSION OF WILMETTE PRESENTATION CONCERNING ELECTRIC DISTRIBUTION SYSTE31 Bud Nesvig had attended a ComEd presentation February 23. 1999 at the Village Hall in Wilmette. In that meeting ComEd Public Affairs Staff Greg Fetro and Dan Kowalew•ski of the Asset Management Department had responded to the Village's concerns about the reliability of the ComEd Distribution system. The Energy Commission viewed a video tape of the meeting between ComEd and the Wilmette Trustees. In the tape Mr. Kowalewksi explained that he worked in the newly created Asset Management Department of ComEd. This department is concerned with reliability issues and it identities and funds projects on the distribution system. Mr. Kow-alew'ski had identified six specific troubled areas in Wilmette, had determined the causes for the outages, w hich lie discussed at length, and had developed an action plan that was already underway in many cases. Feeder lines were clearly identified and completion dates for the work were given. Mr. Kowalewski explained ComEd policies regarding wildlife protection installations, species -specific tree trimming, underground fault remedies, the use of " B" workforce that is on -call on rainy days and the ComEd trouble shooter who roams the north district territory and endeavors to perform a quick fix until construction crews arrive. Mr. Kowalewski explained that ComEd had previously been a system -driven company and they have been asked to be more customer -based. After viewing the video. Commission members noted that ComEd was ver% responsive to the Village of Wilmette. knew exactly where the trouble spots were and had a plan for improvement and due dates. They observed how different this was from ComEd knowledge of and treatment of trouble spats in Evanston. Members agreed that the Evanston City Council should have the opportunity to iew this video. Bud Nesvig provided two handouts: one was related directly to the video presentation, the other was excerpts from the 1995 report on ComEd service interruptions during the July 12-16, 1995 heat wave prepared for the ICC by Failure Analysis. Inc. lie requested that a copy of the full report be distributed to Commission members. EXECUTIVE SESSION At 8:20 a.m. the Energy Commission entered Executive Session by roll call vote of members present: 6-0, for the purpose of discussing negotiations of the electric service franchise. The Energy Commission resumed the Public Meeting at 8:35 a.m. APPROVAL OF MINUTES OF FEBRUARY 23, 1999 The minutes of the Energy Commission meeting held February 23 were approved as submitted- 6-0. AnnmvM Fnero, f nmmiccinn Rtinntoc Pj?g0- 7?MQ BUSINESS PARTNER REPORT Discussion ensued regarding the need for a scope of scr%ices in order to proceed with the business partner effort. Max Rubin reminded members that the A&PNV conunince is expecting ftzrther information from the Energy Commission before they can take action on the Commission's request. Max Rubin, Bud Nesvig and Del Leppke agreed to meet March 12 to dc%-clap bullet points that could be presented to A&PW. ADJOURNMENT Meeting adjourned at 9:08 a.m. t Joa Farquhars , Planning Division ENERGY COI%11%11.SION MINUTE Tuesday. February 23. 1409 - 7:15 a.m. MEMBERS PRESENT: GRUMNLAN. KRAFT. LEPPKE. MICIIA11 S, WARMr\GTON MEMBERS ABSENT: DOOLIN. HOFFMAN STAFF PRESENT: MARINO. RUBIN, FARQUHARSON CALL TO ORDER The meeting was called to order at 7:24 a-m. APPROVED NENWIG, EXECUTIVE SESSION At 7:25 a.m. the Energy Commission entered Executive Session by roll call vote of members perserrt: 5-0, for the purpose of discussing negotiations of the electric service franchise. 1164r. Kraft arrived during the Executive Session. The Energy Commission resumed the Public Meeting at 8:10 a.m. APPROVAL OF MINUTES OF FEBRUARY 4, 1999 The minutes of of the Energy Commission meeting held February. 4 were approved as submitted, 6-0. Since Janet Hoffman will be out of town for two weeks. Bud Nesvig asked members whether they would like to recommend that an alternate member sit on the negotiating team along with Del Leppke during Ms. Hoffman's absence. David Kraft expressed interest in serving as an alternate and, by consensus.. members agreed that Mr. Nesvig could write the Ma-, or about this. BUSINESS PARTNER REPORT Bud Nesvig stated that Enron continues to express interest in doing something in Evanston. Del Leppke noted that a scope needs to be defined for prospective business partners. Max Rubin added that, at a previous meeting of the A&.PW Committee, they had asked for some specific points. Del Leppke stated that it would be good to have something in place prior to the conclusion of franchise negotiations. Perhaps a tentative scope could be put together and sent out on an informal basis. In order to get meaningful responses, the City could offer to pay for the proposals in the event the% did not go further with the process. Informal discussions could be held. but no commitments would be made. Dennis Marino stated that, at a conference he recently attended in Arizona, the exit of Enron from a Southern California City was discussed. He clarified that this was an aggregation strategy and not a municipalization strategy, however. He added that there arc other local companies specializing in aggregation that have been successful aggregators in Southern California. David Kraft explained why. Because of the deregulation la" in California. only the local utilities enjoy the $28 billion stranded cost windfall whilc outside companies do not ha%e this financial advantage. Mr. Kraft stated that some think that the deregulation law in California violates the federal constitution by abridging free trade and one day this may be challenged in federal court. PRESENTATION BY DEL LEPPKE Draft Comparative Analysis of Neighboring Utility Systems Del Leppke had collected data from the neighboring utility systems of Naperville and Winnetica for 1997 or fiscal year 1997-98. The rates arc about the same as those of ComEd. The Naperville community is approximately 100,000 population. The distribution system improvements expenditures were analyzed per customer and as a percent of revenue. The number of interruptions and duration of outages were also ininr< P•fii r 'f -1 ' ''43 compared. The findings revealed that the municipally -owned systems spend much more jvr cu.c orner on system improvements (S335 and S314 compared to S80 for the entire C'omi d sy�,tcnt and S-4.6 C.•a the Evanston system). The duration of outages was also much longer for the C oz»Ed stem and Evanston systern. The interruption frequency data demonstrated a lower frequent% a%cracc t�--r 1=%anstor. which is likely due to the counting of shorter interruptions in the Winnetka communit% AJJiti,:cutit-:. the interruption data for Evanston is based on only 53 of the 64 tccder circuits, it is not complece. Mr. l.eppke concluded that a municipally -awned system focuses more an system zmpro►cnuccats. The interruption duration has increased for Evanston. ComEd needs to respond to interruptions Emer. Mr. Leppke added that ComEd has indicated that they may move their maintenance division to SkOkit. «frith would help them to respond more quickly. David Kraft wondered what the statistical difference is between the SAIFI of the ComEdrNorthrn region and ComEdlEvanston, and what are the standard deviations on the curve. If %tit kne%% this we would get the real value of this data. Perhaps a Northwestern student could provide the statistical ans%%er to these questions. Del Leppke referred to the WC 1991 Reliability Audit of the ComEd system which had been obtained by Bud Nesvig. The report stated that the ComEd expenditures per customer are below industry averages, so this is nothing new. Corrections have not occurred. Mr. Nesvig asked that the report be distributed to members. Dennis Marino asked Del Leppke to address the causes of the duration of outages in Evanston. He asked if the duration problems were related to response time or the inability to back -feed certain feeders. or both. Mr. Leppke responded that he had not thoroughly explored the causation but added that, in conversation with the Winnetka utility, they found that the maintenance workers in Winnetka are very familiar with their system, which contributes to correcting the cause of outages quickly. ComEd, on the other hand. has been relying to a great extent on subcontracting this specialized maintenance. An overseer not acquainted with the local system accompanies the subcontractor, and it takes them some time to figure out the problems associated with an outage which contributes to a longer outage duration. Mr. Leppke added that he was 75% to 80% confident of the consistency of the Winnetka and Naperville data, which was due to the classifj ing of data in different ways. Revisions to the Evanston Energy Policy Mr. Leppke asked members to think about the suggestions he submitted concerning the Energy Policy. Mr. Leppke stated that he was very concerned about the passive wording of the Energy Policy, especially with respect to the City's role. David Kraft provided an historical context of the development of the Energy Policy and also explained that, despite efforts to implement the policy, that phase never occurred. The implementation phase is where the real action would lie. Discussion ensued that Mr. Leppke's proposed changes address current issues, include objectives and encourage action. The Energy Police will be redistributed in the next packet. Mr. Leppke asked that this be a discussion item at the next meeting of the Commission. ADJOURNMENT Meeting adjourned at 9:20 a.m. Joan,tarquhars ; Planning Division APPROVED ENERGY COMMISSION MEN-UTES Friday, January 8. 1999 - 7:15 a.m. MEMBERS PRESENT.- GRUMMAN. HOFFMAN, LEPPKE, MICHAELS. NESVIG, WARMINGTON MEMBERS ABSENT: DOOLIN. KRAFT STAFF PRESENT: MARINO, RUBIN. LEYENDECKER. FARQUHARSON CALL TO ORDER The meeting was called to order at 7:25 a.m. EXECUTIVE SESSION Immediately, the Energy Commission entered Executive Session for the purpose of discussing negotiations of the electric service franchise by roll call vote of members present: 5-0. Janet Hoffman arrived during the Executive Session. The Energy Commission resumed the Public Meeting at 8:00 a.m. APPROVAL OF MINUTES OF DECEMBER 3, 1998 The minutes of the Energy Commission meeting held December 3 were approved as submitted: 4-0. 2 abstentions: Hoffman and Michaels. BUSINESS PARTNER REPORT/ UNDERGROUNDING INTEREST These two topics overlapped in discussion. Dennis Marino reported that he and Bud Nesvig had met with the City Engineer, Jim Tonkinson, to discuss the undergrounding issue. Mr. Tonkinson had enumerated several reasons why he does not support undergrounding the electric system. These include: the narrowness of some of the alleys, which does not permit digging %%ithout possibly compromising garage foundations; the resulting interruption of City services; access advantages to an overground system; and the fact that the overground system serves cable and telephone as well. .Although modern boring operations require only a 15' cut to lay one mile of cable. each service %%ould require tie-in and intersections could present problems if they contain old, unmapped sewer lines. In response to Bud Nesvig's concerns, Dennis Marino reported that the City Engineer will be investigating the partially abandoned poles and dual system of poles running down the alley near Custer Street. Complaints of this nature are handled by the City Engineer. In response to a question concerning; how the expiration of the franchise might impact ComEd's performance of work on the distribution system, Mr. Marino noted that the City Engineer monitors code compliance and issues permits for ComEd to do their -,sork. Discussion of the recommendation that the City issue an RFP to attract a business partner to operate an electric distribution system was drawn from the minutes of the A&PW Committee meeting of November 23, 1998 when this issue had been discussed. Bud Nesvig stated that he wanted to mope this issue forward. Del Leppke stated that the scope of the RFP needs to be clarified before it can be presented as an action item to the A&PW Committee. tPc pive 1 1 /it/AQ Gary Michaels explained the idea of utilizing a futures contract with a business partner that would hypothetically buy load from the City of Evanston and provide up -front cash in exchange for a definite rate for a period of time. For example: suppose the average price of electricity is 8.5 cents per kWh. The City would agree to sell the toad for 7 cents per kWh for 34 years. A compan} would pay the City, up -front cash in order to have that right. They, in turn, have investors who want to hold that right, because they may be able to buy electricity on the open market for 34 cents per kWh. T'he City would be selling the right to provide electricity. The City can then do what it wants with the up -front money, such as investigate the purchase or building of a distribution system. Janet Hoffman stated that what a company would offer the City in such a case would be a severely discounted value based on the risk that the City would not be able to own itsown system. It was clarified that since the City does not own its own system, electric users (especially large ones) u.Nuld have to commit to the City to act as their aggregator prior to entering into any contract Gary Michaels continued to explain that no one knows what deregulation will bring and how low prices .will go. M anwhile, the cost for electricity in this area is high, and the opportunity for this type of contract would likely only exist during the first three years of deregulation until things shake out. Janet Hoffman stated that this is a forward supply contract, an option to buy, and the value of the contract would be diminished by the risk. Del Leppke added that it is based on faith in the deliverer of power, and if the Cin- has no commitments to deliver, the option is worthless. Therefore, the major users of electricity should be contacted to determine whether there is support for using the City as their aggregator. Janet Hoffman added that onlw the very largest users can successfully negotiate their own rate with ComEd. If the Cite could act as aggregator for a significant amount of moderate -sized commercial and industrial users who are not large enough to negotiate a price on their own. It would be a load that could, all together, get attention. Bud Nesvig offered to put together during the coming week an outline on a business partner approach which would include aggregation. ENERGY COMMISSION MEMBERSHIP Bud Nesvig noted that the Commission had three vacancies. Staff will check with the Mayor's Office to provide blank applications to members. ADDITIONAL REPORTS Status of Advice to Ratepayers Regarding Rolling Blackouts Dennis Marino stated that Max Rubin is working on this item which addresses potential summer outages. Information on ComEd Plans to Improve Infrastructure of Evanston Distribution System Dennis Marino reported that this item relates to the negotiating team effort, and it is now their domain. Other Reports Regarding the requested income and expense reports, Dennis Marino stated that he planned to speak with Ray Doolin today to set up a meeting with the Accounting Department so as to go over the rrcords. Regarding Mr. Nesvig's idea to survey electric users served by the six %%orst feeders, Dennis Marino suggested that the reverse directory be used, which he would provide. anrm'r rnmmiccinn Mie"[?nc PV0.'I I /R/U9 Regarding Quick -Take provisions, Mr. Marino stated that he had information to share with Bud Nesvig as rcquested and informed members that legislation had been introduced by Kathleen Parker in limit Quick -Take. He clarified that Quick -Take is only used for real estate, not personal or corporate property. The alleys belong to the City, whereas the poles and wires of the distribution system arc corporate propcm. not real estate. DEREGULATION David Grumman reported on a meeting of the Illinois Chapter of the American Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE), at which a representative from ComEd, Dave Geraght%. spoke on open access. Mr. Grumman had obtained documents which he will share with members. He reported that the lottery process for eligible non-residential customers will begin 10/1/99 and the% will be divided into categories according to their load. Other topics included the benefits and disadvantages of the bundled tariff, real time pricing and other programs. The state will appoint a neutral factfinder who will be responsible for determining the market value of electricity. Mr. Grumman added that businesses will become informed about these programs and the City needs to be as well. He suggested that Mr. Geraghty be invited to make a presentation to the EEC and others in the City. Dennis Marino stated that the EEC could sponsor a presentation and invite other entities. Mr. Grumman announced that he would be chairing a seminar on Sustainability at the semi-annual ASHRAE meeting to be held in the Palmer House in Chicago on Sunday, January 24. Members were invited to attend. COMMUNICATIONS Communications were accepted. ADJOURNMENT Meeting adjourned at 8:48 a.m. l J n Farquiligon, Planning Division