City of Hurricane Power Board Mac J. Hall, Chair Jerry Brisk Dean McNeil Charles Reeve Darin Larson Pam Humphries 526 W 600 N • Hurricane, UT • 84737 Phone: (435) 635-5536 • Fax: (435) 635-4127 WEB: www.cityofhurricane.com/categories/departments/power/ Mayor John Bramall City Manager Clark R. Fawcett Power Board Meeting Agenda 01/26/2021 3:00 PM Power Department Meeting Room – 526 W 600 N Notice is hereby given that the Power Board will hold a Regular Meeting in the Power Department Meeting room located at 526 W 600 N, Hurricane, UT. A silent roll call will be taken, along with the Pledge of Allegiance and prayer by invitation. This meeting is available online using the invitation below. Hurricane Power Department is inviting you to a scheduled Zoom meeting. Topic: Power Board Meeting Time: Jan 26, 2021 03:00 PM Join Zoom Meeting https://zoom.us/j/91535252489?pwd=VXN6Z3ZZNGhVWFplSjVlenkvWHBpUT09 Meeting ID: 915 3525 2489 Passcode: Vs423x AGENDA 1. Pledge of Allegiance 2. Prayer 3. Approval of Minutes from Previous Meeting SYSTEM UPDATES Scott Hughes/Substation Supervisor Brian Anderson/Power Superintendent OLD BUSINESS 1. Generator #9 Update NEW BUSINESS 1. 19-20 Budget Year Audit Review – Clark Fawcett 2. Solar Policy Discussion A. Engineer Review Requirement and Fee B. City Staff Review Fee C. Solar Base Rate Fee 3. Resource Portfolio Discussion 4. Muddy Creek Participation Re-affirmation 5. Horse Butte Wind Phase 2 Participation 6. Capital Expenditure Update 7. Budget 8. Other
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City of Hurricane Power Board Mac J. Hall, Chair
Jerry Brisk Dean McNeil
Charles Reeve Darin Larson
Pam Humphries
526 W 600 N • Hurricane, UT • 84737 Phone: (435) 635-5536 • Fax: (435) 635-4127
3:00 PM Power Department Meeting Room – 526 W 600 N
Notice is hereby given that the Power Board will hold a Regular Meeting in the Power Department Meeting room located at 526 W 600 N, Hurricane, UT. A silent roll call will be taken, along with the Pledge of Allegiance and prayer by invitation. This meeting is available online using the invitation below. Hurricane Power Department is inviting you to a scheduled Zoom meeting. Topic: Power Board Meeting Time: Jan 26, 2021 03:00 PM Join Zoom Meeting https://zoom.us/j/91535252489?pwd=VXN6Z3ZZNGhVWFplSjVlenkvWHBpUT09 Meeting ID: 915 3525 2489 Passcode: Vs423x AGENDA
1. Pledge of Allegiance
2. Prayer
3. Approval of Minutes from Previous Meeting
SYSTEM UPDATES
Scott Hughes/Substation Supervisor Brian Anderson/Power Superintendent
OLD BUSINESS
1. Generator #9 Update
NEW BUSINESS
1. 19-20 Budget Year Audit Review – Clark Fawcett 2. Solar Policy Discussion
A. Engineer Review Requirement and Fee B. City Staff Review Fee C. Solar Base Rate Fee
3. Resource Portfolio Discussion 4. Muddy Creek Participation Re-affirmation 5. Horse Butte Wind Phase 2 Participation 6. Capital Expenditure Update 7. Budget 8. Other
1 Pam Humphries 2
3 The Hurricane City Power Board met on October 27, 2020 at 3:00 p.m. at the Clifton Wilson Substation 4 on 526 W. 600 N. In attendance were; Chairman Mac Hall, Darin Larson, Pam Humphries, Jerry Brisk, 5 Charles Reeve, Dean McNeill, Dave Imlay, Scott Hughes, Brian Anderson, April Hill and Ken Green. 6 Mac Hall welcomed everyone to the meeting; Darin Larson offered the prayer and Dean McNeill led the 7 pledge of allegiance. 8
Dean McNeill made the motion to approve the minutes from the July and August meeting, Darin Larson 9 second the motion. Pam Humphries abstained from approval of the July minutes. All in favor, the 10 motion passed. 11
Scott Hughes: Discussed regulator repair and maintenance. Scott reported that the tap position on the 12 transformers at Anticline Substation needed to be manually adjusted. The transmission voltage was 13 coming in high enough that the regulators were at the lowest position which was delivering high voltage 14 to the customer. 15
Brian Anderson: Reported that a pole was blown over on 1760 W 150 S. The pole test showed an inch 16 void five years ago. Fortunately, the customers service was not interrupted. 17
New Gas Generator: Scott Hughes and Dave Imlay met with Wheeler Machinery to discuss the two 18 different generator types. G3520h has better heat rate with gear box to facilitate the optimal heat rate. 19 G3520 has the ability to pick up cold load. Load pickup has been an issue with natural gas generators in 20 the past. Scott discussed the two bids that were received from Stantec and Trinity Consultants. The bid 21 was awarded to Trinity based on price. Dave Imlay reported that he is will request for approval to use 22 impact fee funds through a possible budget amendment. 23
Post Peak Report: Dave Imlay presented the 2020 Post Peak Report from PacifiCorp. 24
CFPP: Dave reported that the DOE award is official. Many entities have opted out of the project and 25 others are reducing their participation. Due to the exists and reduction the project cannot meet its 26 participation requirements needed to move forward. UAMPS is actively pursuing other participants. 27 Dave will schedule an interim meeting if necessary. UAMPS staff will organize an LLC that will be 28 governed by project management committee. This will allow other outside entities to join the project 29 without being in UAMPS. Charles Reeve reported that he has been receiving anti-nuclear ads on social 30 media. 31
Steele Solar: The Steele Solar Project is located West of Salt Lake City and east of Wendover. The final 32 terms are being negotiated. The Power Department has signed up for 2.4 megawatt at $36 per 33 megawatt. 34
City of Hurricane
Power Board Mac J. Hall, Chair
Jerry Brisk Dean McNeill
Charles Reeve Darin Larson
Mayor John Bramall
City Manager Clark R. Fawcett
Firm Power PPA: Hurricane has not signed up on the Firm Power with current resource prices. Dave 35 stated that the department is exposed to market prices during the summer months, but the cost of the 36 Firm Power Project is much higher per kwh than the cost residents pay per kwh. 37 38 Enchant: The Enchant project may take over the operations of San Juan Power Plant post 2022. The 39 plant will be used as carbon capture to be sold to the oil industry. The waste product will be used 40 generate electricity. Hurricane Power Department has expressed interest in one megawatt of that 41 electricity. 42 43 Budget: The cost of power for September was $64 per megawatt. Dave reported that prices have not 44 been that high for 10 years. 45 46 47
1 Pam Humphries 2
3 The Hurricane City Power Board met on November 24, 2020 at 3:00 p.m. Via Zoom Conference. In 4 attendance were; Chairman Mac Hall, Darin Larson, Pam Humphries, Jerry Brisk, Charles Reeve, Dean 5 McNeill, Dave Imlay, Scott Hughes, Brian Anderson, April Hill, Shelley Goodfellow, and James Korhorn. 6 7
Scott Hughes: Scott Hughes reported that the engineering for the Brentwood Meter Point is complete. 8 The bids for the geotechnical survey of the Sky Mountain Substation sight, the bid was awarded to 9 landmark based on price, and the survey is underway. The air permit for generator # 9 is still in 10 underway. Scott Hughes Protective Relay Test set and training. The awning project is now complete. 11 Scott reported that the outage at Anticline substation was due to a fox climbing on the breaker. They 12 have now installed protective cover up on the breakers. 13
Brian Anderson: The reconductor project is completed to the point that was scheduled for this year. 14 Christmas decorations have been set up. The dead-end pole on 600 north has been set. 15
Customer Solar Sizing Exception Request: Shelley Goodfellow met with the Power Board to request an 16 exception to the Residential Grid-Tied Policy. The Residential Grid-Tied Policy has two solar installation 17 size options. The first allows for customers to install a solar system with DC rating of 8.1 kW and an AC 18 output on 6 kw or less. The second allows customers to install a system with a DC rating of 16 kW with 19 an AC output maximum of 12 kW. Systems that are larger than the standard 6 kW AC must have an 20 export limiter set at 6 kW. The export limiter controls the amount of energy that can flow from the 21 customers system to the electric grid. Shelley Goodfellow stated that she understands the policy and 22 was aware of the policy prior to purchasing her current system. She purchased the system from a local 23 distributor who assured her that the system she was purchasing met the policy standards. Shelley 24 purchased a system with a DC rating of 14.88 kW and an AC rating of 8 kW AC. Shelley was not aware 25 that the system she purchased is not compatible with an exportation limiter. Shelley made several 26 attempts to return the system she purchased, however, the distributor she purchased the system from 27 is no longer in business. Shelley provided a copy of her usage history, explaining that based on her usage 28 and her battery capacity, her system will never export more than 6 kW. The Power Board discussed the 29 current Solar Policy and expressed their conclusion that Shelley’s system does not meet the standards of 30 the Solar Policy. The Power Board held a vote to determine the status of Shelley’s request. Pam 31 Humphries, Dean McNeill, and Mac Hall voted to deny the request. Charles Reeve voted to approve the 32 request and Darin Larson abstained. Shelley Goodfellow stated that she will request an expectation from 33 the City Council during the next Council meeting. 34
35
City of Hurricane
Power Board Mac J. Hall, Chair
Jerry Brisk Dean McNeill
Charles Reeve Darin Larson
Mayor John Bramall
City Manager Clark R. Fawcett
5-Year Firm Power Product: Dave reported that the department is participating in the project for high 36 load hours only. The prices are not optimal but they are lower than most high load prices on the market 37 during the summer. 38
600 North Property Update: The owner of the property has requested an estimate of the cost for RMP 39 to set a self-supporting pole on the property. Dave estimated that the cost would be near 200,000. The 40 property owner is still undecided on the sale of the property. Dave will update the power board when 41 more updates are available. 42
Enchant Discussion: Dave reported that San Juan may be transitioning to Enchant after the debt is paid 43 off. Enchant will recondition the plant to a carbon capture product with the sells going to the oil 44 industry. The price of the power generated from the waste product is $34 per megawatt. This project 45 still has a lot of hurdles to overcome and is not expected to come online until after 2022. The power 46 department has signed up for 2 megawatts of interest in the product. 47
Sky Mountain Substation Update: There is a small strip of land between the property of the substation 48 and the roadway. Dave contacted the property owner and is discussing the possibly of the owner quit 49 claim deeding the property to the power department. If the owner is not willing to do that the power 50 department will have to purchase that strip of land. 51
Transformer Purchase Update: Scott Hughes presented the information for the bids from each 52 company. Power West Engineering quoted the lowest price for Prolec GE transformers. UTB quoted the 53 second lowest cost for WEG transformers. IRBY quoted a mid-level price for ABB transformers. Roger 54 Strong quoted the second highest price which is for SPX/Waukesha transformers. The highest price 55 quote is from HEES for Delta Star Transformer. There is a discount from each company if the department 56 purchases two transformers at the same time. Scott discussed the warranties, which vary for each type 57 of transformer. Scott discussed in detail the importance of load losses and weight of the core and coils 58 for each transformer. Scott explained that a heavier coil has more copper and a heavier core has more 59 steel. There are varying qualities of steel which effect the weight but for the most part a heavy 60 transformer is more well-built. The Power Board and staff discussed the necessity of 2 vs 3 61 transformers. Dave explained that growth rates indicate the necessity for 2 transformers. Overall, the 62 Waukesha and Delta Star are the best quality transformers. The price for two Waukesha transformers is 63 $900,162. The price quote for two Delta Star transformers is $1,145,102. The quality of the Waukesha 64 and Delta Star are very similar. The recommendation from the Power Department Staff is to purchase 65 the Waukesha transformer. Scott will provide the Power Board with complete breakdown for each 66 transformer so they can review the information for the next Power Board meeting. 67
Steel Solar Resolution: Dave reported that the Power Department increased their percentage of 68 entitlement which was necessary for the project to move forward. Dave explained the benefits that are 69 included in participating in the project. This is a 25-year Power Sales Contract; the cost of the project is 70 $31 per megawatt. Recommendation to the City Council to approve the resolution. Darin Larson made a 71 motion to make a recommendation to the City Council to approve the resolution, Dean McNeill second 72 the motion. All in favor, the motion passed. 73
CFPP Update: Dave updated the Power Board on the participants that have decreased their entitlement 74 or participation in the project. The project cannot move substantially forward unless the participation 75 threshold is met. Dave will continue to provide the Power Board with updates as more information is 76 available. 77
Power Rate Review and Discussion: During the summer months the cost of power is significantly higher 78 than the sales price. Hurricane Power Department has the second lowest power rates in the Southern 79 Utah area. Dave reported that there is a possibility that rates may need to increase during the summer 80 months. 81
Budget: Kilowatt hour sales are 5% higher than projected, and kilowatt hour revenues are 4.47% higher 82 than projected for the month of October. 83
Other: Dave discussed the amount of time that staff spends reviewing each solar application. The 84 interconnection review application has been updated to capture more information in the initial 85 submittal. Dave reported that other power entities charge a cost per application review. 86
The Power Board adjourned at 5:05 p.m. There is not a Power Board meeting scheduled for December 87 2020. 88
89
New Business Agenda Item #2Solar Policy Discussion
Renewable Power Rate$.04019 per kwh
Solar Reliability Charge $02328 per kwh after first 215 kwh
Application Review Fee/Common Household InstallFirst Review $245 plus $315 Meter Fee
Applicant will be notified within 5 days that app was receivedWithin 10 business days after customer is notified that application was received application will be reviewed.
Application will be denied if it does not meet standards or is incomplete. Application review fee will be charge to review new information and timeline for approval will start over. Collected after system is in service. System impact review may be conducted at the customers expense.
Application Review Fee/Common Household InstallFirst Review $25 - $400 Meter Fee – Base rate increase on case by case basis
Policy in process of being revamped
Dixie Electric
Renewable Power Rate$.04 per kwh
$375 Meter Fee – Base rate increase if over 6 kw $30
Processed 44 applications in 2020
6-7 hours per application on averageApplication reviewed on average 3 times
Hurricane
New Business Agenda Item #3 Resource Portfolio Discussion
Solar0%
Wind 2%
Hydro2%
San Juan3%
Int. Gen4%
CRSP6%
Hunter7%
Nebo24%
Market52%
Diesel0%
Solar0%
WIND3%
Hydro4%
Coal48%
Natural Gas45%
New Business Agenda Item #4Muddy Creek Participation Re-affirmation
Muddy Creek
ProjectProject Update
January 20, 2020
January Discussion Items
Legislative Update
Study Project Status
Affirm Project Subscription Interest
Discussion on Project Structure
Discuss Decision To Proceed Path Forward
Legislative Update
Section 203 of the Consolidated Appropriations Act (COVID bill) now defines
Waste Heat as an eligible resource for the 30% ITC for projects under 50 MW.
Muddy Creek is eligible as defined
30% of eligible Capital Costs for projects that start constructions in 2021
Similar Safe-Harbor provisions
Significant Value Proposition to the Project
Study Project Status Update
Current Status: Mothballed
In 2017 and early 2018, the study budget was $10,000. Due Diligence Work
included:
Kern River Host Agreement
Site Location and Easement Survey
Lot Book Survey
Environmental DD
Engineering Support
Transmission and Interconnection
Current Muddy Creek Entitlements
Subscription Affirmation
Action Items: Staff seeks to affirm the Study Project participation by current
Participants
Confirm interest by Written confirmation letter
Staff to send out following Meeting
Project Structuring
Discussion Item: Discuss preferred path of Project Development
Self-Develop, Finance, Construct, Own and Operate (Similar to Veyo)
Power Purchase Agreement (PPA) (Similar to Pleasant Valley)
Pros and Cons
Self-Develop
Development, EPC and Operations and other Risks
Much more staff involvement and work
Best Value Proposition to Participants
PPA
Least Risky
Staff Time to Develop the PPA
Premiums to Developer, Owner and Operator
Path Forward
February
Present Study Budget and Schedule for approval
Due Diligence Update
Primary Agreements
EPC proposal
Permitting and Environmental Path Forward
Preliminary Proforma and Pricing estimate
Primary Agreements terms and conditions presented to PMC
March
Additional Due Diligence Update
Target Host and Lease Agreement execution, LGIA Assignment
New Business Agenda Item #5 Horse Butte Wind Phase 2 Participation
HORSE BUTTE WIND PROJECTBUDGET AND SCHEDULE PRESENTATION OF HORSE BUTTE 2 OR PHASE 2
JANUARY 19, 2020
HB PSC SECTION 4(G)—ADDITIONAL GENERATING UNITS
Provision covers the process for how additional generating units are proposed as a “separate phase” for the Project
PMC has authority to approve additional generating units
Once approved, the existing Participants are first offered to participate in the new phase with the additional generating units up to their Entitlement Share
If there are available entitlement shares in the new phase after the first offering, then those entitlement shares first offered to the existing Participants
If there is still remaining entitlement shares, then the PMC directs the how to offer the remaining entitlement shares to “other entities”
Provision calls for a separate agreement being entered into for the new phase, which is either a separate agreement (e.g., a new PSC) or a supplement to the existing Power Sales Contract
ADDITIONAL GENERATING UNITS
Section 4(f) of the PSC also deals with the process by which a separate
phase with additional generating units may purchase the surplus capacity
in common facilities of the existing Project
PMC approves the sale of this surplus capacity and approves the associated
agreements to any sale of this surplus capacity in the common facilities
PROPOSED PROCESS FOR APPROVING ADDITIONAL GENERATING UNITS
These figures capture the total cost of power to the power department. The power department uses costs only associated with the purchasing and generation of power and includes debt payments and interest associated with power resources.
Cy to Date
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
2016 - 2020 KW LOAD
2016 2017 2018 2019 2020 Base Load 16 Base Load 17 Base Load 18 Base Load 19 Base Load 20