Energy Consumers Advisory Committee Agenda

145 Pages·2015·5.06 MB·English

IMPERIAL IRRIGATION DISTRICT
Energy Consumers Advisory Committee

Meeting Locations:
81-600 Avenue 58 Bill Condit Auditorium IID Boardroom
1285 Broadway Avenue 81-600 Avenue 58
El Centro, C A La Quinta, CA

REGULAR MEETING: Monday, April 6, 2015, 6 p.m.

ECAC Committee
Agenda
Members

I. CALL TO ORDER / PLEDGE OF ALLEGIANCE / ROLL CALL
Division 1 – Matt Dessert
Mark Larson II. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA - Statement of Procedures
Thomas Brinkerhoff This is a public meeting and this is the time for public comment. At this time, you may be heard

on any item not listed on the agenda. Those who wish to address the Committee should come
Division 2 – Bruce Kuhn
to the microphone and state your name and address for the record. The Chair reserves the right
Shorty Hickingbottom
to limit the speaker’s time and we request that you limit your remarks to no more than five
Gil Perez*
minutes. The comment period will be limited to 10 minutes. Please note the Committee may

Division 3 – James C. Hanks make a recommendation on any item on the agenda.
Gerald Gauna

Eric Reyes
CONSENT CALENDAR

Division 4 – Steven Benson
III. Approval of Minutes for March 2, 2015.……….………..…………………………………..….................... 1
John Hernandez*ⱡ
Eugene F. Bumbera IV. Approval of Minutes for March 23, 2015.……….………..…………………………………..…................. 5
V. March Year-to-Date Attendance Report………………...……………….……………………………………..… 7
Division 5 – Norma Sierra
Galindo CONSENT ITEMS ADDED TO ACTION AGENDA
Michael Anderson

Esther Gomez (Vice Chair)

City of Coachella ACTION ITEMS
Betty Sanchez
Richard Macknicki VI. Proposed Change to Regulation 11; Discontinuance and Refusal of Service (M.
Pimentel)……………………………………………………………………………………………………………………………………….. 9
City of Indio
VII. 70SM1 8ME, LLC Generator Interconnection Agreement (K. Fitzgerald)……..……………. 16
Lupe Ramos-Watson (Chair)
VIII. 70SM1 8ME, LLC Transmission Service Agreement No. 1014-24 (K. Fitzgerald)………. 23
Brian Macy
IX. 83WI 8ME, LLC Transmission Service Agreement No. 1214-22 (K. Fitzgerald)..…….…. 38
City of La Quinta X. SEPV Imperial, LLC - Dixieland West Solar Project Feed-In Tariff PPA (R. Pena)…….… 58
Lee Osborne, CPAⱡ XI. SEPV Imperial, LLC - Dixieland East Solar Project Feed-In Tariff PPA (R. Pena)………… 66
Mark Weber*
XII. Ocotillo Express, LLC Back-Feed and Station Service Agreement (R. Pena)…………….… 74

County of Riverside XIII. Battery Energy Storage System MWA 100523 (D. Escobar)…………………………………………… 95
Becky Broughton
Patricia Saleh
Steven Bayard*ⱡ
REPORTS AND INFORMATIONAL ITEMS

Cities of Palm Desert
XIV. Department Update (C. Stills)………..…………………………………………………………………………………….… 134
& Rancho Mirage
Paul Gibson Member Comments (Committee)
Next Meeting: May 4, 2015 6 p.m.
* PBC Subcommittee Member
Adjournment
ⱡ Budget Subcommittee Member

IID Energy Department
1651 W. Main Street, El Centro, CA | 81-600 Avenue 58, La Quinta, CA
Rosa Maria Gonzales | [email protected] | O: 760-398-5812 | M: 760-898-1877
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IMPERIAL IRRIGATION DISTRICT

Energy Consumers Advisory Committee

March 2, 2015

Meeting Locations: IID Boardrooms, El Centro and La Quinta, CA

MINUTES

I. CALL TO ORDER / PLEDGE OF ALLEGIANCE / ROLL CALL .
Vice Chair Esther Gomez called the meeting to order at 6:02 p.m. and Mr. Hernandez led in the
Pledge of Allegiance.
Members present (El Centro): Thomas Brinkerhoff, Eugene Bumbera, Esther Gomez,
John Hernandez, Shorty Hickingbottom and Gil Perez
Members present (La Quinta): Steven Bayard, Becky Broughton, Paul Gibson,
Richard Macknicki, Brian Macy, Patricia Saleh, Lupe Ramos-Watson, Betty Sanchez and Mark
Weber
Members absent: Michael Anderson, Gerald Gauna, Mark Larson, Lee Osborne and Eric Reyes

II. PUBLIC COMMENT .
There were no public comments.

III. APPROVAL OF MINUTES FOR FEBRUARY 2, 2015 .
Mr. Bayard brought to attention the date for the approval of the previous minutes should be
changed from February to January.

A motion was made by Mr. Hernandez and seconded by Mr. Bumbera to approve the ECAC
Meeting Minutes of February 2, 2015, as amended. Motion carried 11-0-1, with Mr. Perez
abstaining.

IV. FEBRUARY YEAR-TO-DATE ATTENDANCE REPORT .
A motion was made by Mr. Bayard and seconded by Ms. Broughton to approve the February
2015 Year-to-Date Attendance Report. Motion carried unanimously.

Mr. Bayard requested the member appointment dates be reviewed.

SUPPLEMENTAL ITEM II.
ENERGY COST ADJUSTMENT .
Ms. Belen Valenzuela, interim chief financial officer, recapitulated information given at the public
workshop in January regarding the new Energy Cost Adjustment (ECA) formula, at the request of
Director Norma Sierra-Galindo. The material outlines how the bill format has changed and how the
ECA has been computed since January 2015.

Restructured based on industry standards, the bill is now a pass-through and collects for fixed
charges that are related to the purchased power and fuel expenses, such as capacity and falling
water charges. It also allows IID to recover from market volatility and regulatory changes.

The ECA is billed monthly per kilowatt-hour (kWh), along with the base rate and regulated
surcharges. The ECA is set at zero for 2015 and a “true up” will be implemented in 2016, after 12
months of actual expenses have been accrued. Ms. Valenzuela presented three scenarios with
purchased power and fuel costs less than, greater than and equal to the base ECA.

Mr. Hernandez inquired if factual information was used in these scenarios, to which Ms. Valenzuela
replied they are 2014 forecasts. Going forward, the actual 2014 numbers will be used.

Ms. Valenzuela stated an ECAR for renewables can be found on the bill, which is also a pass-
through. It is the incremental cost difference between the cost to meet the state’s Renewable
Portfolio Standards (RPS) and the cost that has been figured should the RPS not be implemented.
The ECAR is set for $0.0067 per kWh for 2015.

Chairwoman Ramos-Watson requested the percentage of consumers that are seasonal.
Ms. Valenzuela explained a monthly count is kept of meters that are on and off. They come on
around September or October and go off in April.

Chairwoman Ramos-Watson asked if they physically turn on and off or consumption drops.
Ms. Valenzuela commented some actually turn off, but for others, the consumption drops down.

V. MWA 100545 DROP 4 UNIT 1 HYDROELECTRIC PLANT MAJOR REFURBISHMENT .
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IID Energy Consumer Advisory Committee
Meeting Minutes / March 2, 2015

Mr. Michael Taylor, assistant energy manager, presented a request to perform a major
refurbishment on Drop 4 Unit 1, which is a 10-megawatt (MW) Kaplan Turbine that was
commissioned in 1950. The refurbishment is required on the 60-year old unit, as it has never had a
major overhaul and a visual inspection in early January 2014 confirmed a single fracture in the
Blade #5 trunnion area. Through a competitive bid process under Secondary Request for Proposal
No. 14, the Energy Department selected Weir American Hydro to perform the refurbishment at a
total cost of $12,506,022.

Responding to a question from Mr. Perez, Mr. Taylor clarified there are two units at Drop 4.

Mr. Hernandez questioned if the refurbishment is similar to the one carried out in 2007 and the cost
difference. Mr. Taylor answered it is a similar refurbishment; however, Unit 2 is a slightly different
turbine and does not have the same blades. The costs increased with this refurbishment, but were
not available at the time of the meeting.

Mr. Bayard asked why the abrasion coating guarantee is only for one year. Mr. Taylor shared the
abrasion coating will be dependent on what the contractor provides. It is an epoxy coating that goes
on the wet surface of the turbine. The turbulent water path and considerable amount of sand and
dirt wear on the coating. As the consultants assisted with the Scope of Work for this specification,
they felt this was a reasonable, achievable goal and any coating that did not last a year should be
replaced and the guarantee extended an additional year.

Mr. Weber inquired about the rationale behind taking $3 million from Public Benefit Funds.
Mr. Taylor articulated Drop 4 Unit 1 is a green energy source. It is an efficient turbine that produces
energy at some of the lowest costs available to IID. That efficiency, plus the renewable resource
and the benefit to customers, warrants the use of the previously earmarked Public Benefit Funds.

Mr. Weber inquired if IID gets renewable energy credits for the unit, to which Mr. Taylor responded
in the affirmative and said Unit 1 helps IID meet the RPS requirements.

A motion was made by Mr. Bumbera and seconded by Mr. Brinkerhoff to approve Major
Work Authorization 100545 for the Drop 4 Unit 1 Hydroelectric Plant Major Refurbishment
Project. Motion carried unanimously.

VI. GIA SEVILLE SOLAR II, LLC 32MW .
This item was pulled from the agenda.

VII. SERVICE AGREEMENT 8100001695 AMENDMENT NO. 1 - RELIABLE POWER SOLUTIONS,
INC. .
Mr. Paul Peschel, manager, Planning and Engineering, sought a recommendation to the Board of
Directors for approval of Amendment No. 1 to Service Agreement No. 8100001695 with Reliable
Power Solution, Inc. The amendment will increase from its present value of $160,000 to a new not-
to-exceed amount of $360,000, with a time extension through April 30, 2016. The amendment is
critical, due to the numerous Energy projects and limited specialized personnel to perform analyses
associated with system impact and affected system studies.

Chairwoman Ramos-Watson asked for the timeline of the Request for Proposal (RFP). Mr. Peschel
voiced it is hard to say, as some studies can take up to six months; so it could be about one year.
Chairwoman Ramos-Watson then inquired if April 30 of next year would be a good estimate.
Mr. Peschel hoped there is a little buffer. If that much time and money are not needed, it will be
discontinued when the Secondary Request for Proposal is in place.

Mr. Perez requested the source of funding, to which Mr. Peschel specified the effort would be
supported by individual capital projects approved for 2015.

Mr. Peschel confirmed Mr. Hernandez’s observation that this is an extension of an existing contract.
Mr. Hernandez recounted the original was for $160,000 and this is for another $200,000. He
pointed out staff mentioned having this in place in order to “go out” for an RFP on another project
and questioned why this consultant did not participate in the RFP process. Mr. Peschel
communicated the original was a sole source.

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IID Energy Consumer Advisory Committee
Meeting Minutes / March 2, 2015

Mr. Hernandez inquired if this consultant would be used for another five years. Mr. Peschel
conveyed this is intended to be for one year, at most. Mr. Hernandez was under the impression the
last time would be for a couple years and the request is for another year. Mr. Peschel disclosed this
is for different work, which would extend the contract for another year or so and they may end up
being hired on further if they are selected as the top consultant.

Mr. Hernandez wondered if this type of expertise should be looked at in-house. Mr. Carl Stills,
energy manager, advised he would talk about the issue in the Department Update.

A motion was made by Mr. Weber and seconded by Mr. Perez to approve Amendment No. 1
to Service Agreement 8100001695 for Reliable Power Solution, Inc. Motion carried 14-1-0,
with Mr. Hernandez opposing.

SUPPLEMENTAL ITEM I.
MWA NO. 100335 COACHELLA VALLEY TO RAMON/DEVERS 230KV LINE UPGRADE
(PATH 42) IMPLEMENTATION CLOSURE .
Mr. David Escobar, senior project manager, reported the Coachella Valley to Ramon/Devers 230
kilovolt (kV) Line Upgrade Project (Path 42) was approved as Project Number P-6797 on August
16, 2011. The Path 42 Transmission Line was placed in service on January 14, 2015. Remaining
work will be completed over the next three months, with a revised project completion date of May
23, 2015. The schedule was extended and expenses increased due to the federal government
shutdown, which resulted in several mitigating factors including, the extension of the transmission
line stringing activities, environmental issues, inclement weather and outage coordination with
neighboring utilities. The estimated cost associated with Amendment No. 3 is an increase of
$1,678,279. The total authorized expenditure under the Major Work Authorization (MWA) is
$32,079,118, which will increase the MWA cost to $33,757,397.

Mr. Perez inquired if the cost overruns would be reduced if the negotiations are successful and
what caused the unexpected costs. Mr. Escobar reiterated it would be reduced to $699,317 and
they were caused by change orders to remobilizing the contractor, environmental issues with the
bird nesting season and the permitting processes.

Mr. Stills added that, as part of the environmental process, inspectors are sent out to find birds; if
found during the nesting season, work will be delayed.

Mr. Stills referenced utilizing Abengoa for Path 42, whose price was $3 million lower than the next
highest bidder. Mr. Stills complimented the Portfolio Management Office staff on the job of bringing
the project to a close under the cost of the next highest bidder, despite all the issues they
encountered.

Mr. Perez questioned why the government shut down. Mr. Stills verbalized they could not pass the
budget. In addition, the regulatory agencies then shut down, which further delayed inspections.

A motion was made by Ms. Broughton and seconded by Mr. Perez to approve Amendment
No. 3 to MWA 100335. Motion carried unanimously.

VII. DEPARTMENT UPDATE .
Mr. Stills acknowledged the recent rain, but reported the system performed well. There were a few
trips, mostly on the distribution system, as well as a water leak at the Coachella Valley Substation
that reached the communication equipment and burned out a power supply. As a result, the Midway
to CV KN/KS Transmission Line was on local relay protection.

There were a series of meetings with California Independent Systtem Operator (CAISO) Board of
Governors David Olsen and two California Public Utility Commission representatives (CPUC)
regarding the transmission and Maximum Import Capability (MIC) issues, in which the
conversations went extremely well.

The Renewable Energy Summit is March 11-13th, of which an invitation was extended.

Changes have been made in the transmission planning process. Mr. Esteban Martinez, who was
the chief electrical engineer, has been moved to Transmission Planning, as he is uniquely qualified
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IID Energy Consumer Advisory Committee
Meeting Minutes / March 2, 2015

to lead that effort. A consultant will be brought in to analyze the planning processes. The regional
and local requirements need to be defined, as well as the short-, mid- and long-term planning
processes. Mr. Noe Gutierrez was moved into Mr. Martinez’s former spot and will oversee
Engineering in supporting capital projects.

IX. MEMBER COMMENTS .
Chairwoman Ramos-Watson noted everything went smoothly in the Coachella Valley with the rain,
which was appreciated.

Ms. Saleh commented there must be some way of getting those birds to nest somewhere else,
which would be a worthwhile effort.

Ms. Broughton added that developing that method for the birds would be interesting and she would
be happy to see those birds nesting elsewhere.

Chairwoman Ramos-Watson thanked everyone for their participation and preparation for the
meetings. She thanked staff for the reports being understandable and comprehensive.

X. ADJOURNMENT .
There being no further discussion, the ECAC Meeting was adjourned at 7:12 p.m.
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IMPERIAL IRRIGATION DISTRICT

Energy Consumers Advisory Committee

March 23, 2015

Meeting Locations: IID Boardrooms, El Centro and La Quinta, CA

MINUTES

I. CALL TO ORDER / PLEDGE OF ALLEGIANCE / ROLL CALL .
Chairwoman Lupe Ramos-Watson called the special meeting to order at 6:04 p.m. and led in the
Pledge of Allegiance.
Members present (El Centro): Michael Anderson, Thomas Brinkerhoff, Eugene Bumbera, Esther
Gomez, John Hernandez, Shorty Hickingbottom, Mark Larson, Gil Perez and Eric Reyes
Members present (La Quinta): Steven Bayard, Richard Macknicki, Brian Macy, Lee Osborne,
Lupe Ramos-Watson, Patricia Saleh and Mark Weber
Members absent: Becky Broughton, Gerald Gauna, Paul Gibson and Betty Sanchez

II. PUBLIC COMMENT .
There were no public comments.

Mr. Carl Stills, energy manager, prefaced the presentations by stating the Seville Solar One, LLC
Transmission Service Agreement (TSA) and Seville Solar Two, LLC Generator Interconnection
Agreement needed to come before this Committee; however, extended staff’s apologies for a glitch
in the system, which resulted in the agenda not getting posted in time to meet Brown Act
requirements. The items would be presented, but voting would not ensue.

Chairwoman Ramos-Watson thanked the Committee for making themselves available on short
notice for this special meeting and reiterated there would be no action taken on the items. She
assured member feedback would be relayed to the Board for consideration at their meeting the
following day, where staff would seek approval of the items.

III. TRANSMISSION SERVICE AGREEMENT FOR SEVILLE SOLAR ONE, LLC .
Ms. Kelli Fitzgerald, senior interconnect contract specialist, presented the proposed Transmission
Service Agreement No. 0914-20 with Seville Solar One, LLC. The contract would allow for long-
term firm, point-to-point transmission service for 20 megawatts (MW) of energy over a 21 year term,
with the receiving party being San Diego Gas & Electric. The pro forma agreement is subject to
IID’s Open Access Transmission Tariff (OATT) and annual revenues would be approximately
$177,000. Service is anticipated to commence on August 1, 2015.

In response to Mr. Perez’s inquiry regarding the annual revenue of $177,000, Ms. Fitzgerald
communicated that the annual revenue is for transmission service only and does not include
ancillary services. IID will receive this revenue once the transmission rate credits that are due to the
customer are exhausted.

Mr. Perez questioned if there was a cost involved. Ms. Fitzgerald reported the cost for the project to
interconnect is included on a separate contract, which was brought to the Committee about this
time last year. A generator interconnection agreement has been executed and is in the construction
process. It is an ongoing project, in which the company is funding about $5.5 million in network
upgrades in order to interconnect.

Mr. Hernandez inquired if the location was at the Allegretti Farms property. Ms. Fitzgerald
responded in the affirmative, as it is being built on private land; however no agricultural land was
taken out of production.

Mr. Hernandez asked a series of questions concerning the standardization of TSA’s, the terms
regarding operations and maintenance and if there are TSA’s for solar projects. Ms. Fitzgerald
confirmed this is a standard agreement and there are TSA’s for solar projects. The terms are
generally requested by the developer and match their power purchase agreement (PPA). It is
designed to last for the length of that term and they may extend the contract once it ends. The
OATT rate incorporates operations and maintenance; therefore there is no separate cost.

Vice Chair Gomez questioned if these items would be brought to the April ECAC meeting to
reconfirm Committee comments. Chairwoman Ramos-Watson explained the Board is taking action
the following day, which is the final step, and the Committee would not need to take further action.
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IID Energy Consumer Advisory Committee
Special Meeting Minutes / March 23, 2015

Mr. Bayard questioned where the $177,000 is going towards. Ms. Fitzgerald clarified that the
transmission rate is based on cost of service and that it reimburses IID. In addition, revenue is
posted to a specific Federal Energy Regulatory Commission (FERC) account.

Mr. Bayard observed it would be $3.5 million to maintain this project over 21 years. Mr. Stills
confirmed, but pointed out the customer will provide the money up front and as IID collects revenue,
that cost is credited.

Chairwoman Ramos-Watson requested staff to keep the Committee abreast of this item, following
the Board’s action.

IV. GENERATOR INTERCONNECTION AGREEMENT FOR SEVILLE SOLAR TWO, LLC 32MW .
SOLAR PHOTOVOLTAIC PROJECT .
Ms. Fitzgerald also presented a Generator Interconnection Agreement for Seville Solar Two, LLC 32
Megawatt Solar Photovoltaic project. The request was processed through IID’s OATT and is
customer funded, with an estimated cost of $1,485,300. $1,299,300 in IID network upgrades will be
completed, which are eligible for transmission rate credits. The project’s location is adjacent to
Seville Solar One, LLC, with which interconnection facilities will be jointly used. The point of
interconnection is the Anza Substation and planned in-service date is August 2015.

Mr. Hernandez inquired about the PPA, to which Ms. Fitzgerald answered it was brought to the
ECAC in the last six to eight months and has been executed.

Mr. Hernandez expressed concern over costs in comparison to similar PPA’s. Mr. Stills shared that
the cost with this PPA was beneficial to IID at $68 per MW, including the upgrades to interconnect.

Mr. Weber requested the total acreage used for Seville Solar I and II. Ms. Fitzgerald reported 640
acres, adding that the project proponent, Mr. David Janigan was present to answer any questions.

Mr. Weber asked if a third project was a possibility. Mr. Janigan confirmed the company is exploring
other possibilities, as there is enough room for additional 85 MW.

Mr. Weber questioned if the panels rotate, to which Mr. Janigan explained single planes are used,
allowing for rotation in one orientation.

IX. MEMBER COMMENTS .
Mr. Stills confirmed Mr. Weber’s comment that the cost to procure brown power is about half the
cost of solar, which Mr. Stills added, generally runs $40 to $45. Mr. Weber wanted to ensure
customers are aware that there are pros and cons of using solar and being green.

Mr. Bayard shared it was a pleasure to attend the Renewable Energy Summit in Winterhaven. He
received information on a program called Home Energy Renovation Opportunity (HERO), which he
would be glad to share. The program offers loans at very low rates for an air conditioning system.
Eligible applicants can get a 2.99 percent rate through the program, rather than a commercial rate
of 12 to 15 percent for owners. As for renters, the landlord would get a higher rate, but it would still
be very good.

Chairwoman Ramos-Watson commented HERO is a program that should require more outreach
and will be presented in a future ECAC meeting so that the information can be shared with the
community.

Mr. Weber shed light on the Property Assessed Clean Energy (PACE) program, which is intended
to help rate payers that cannot pay out of pocket to install a high-efficiency air conditioning unit or
solar. In addition to HERO, YGrene Energy is also an option that he looks forward to hearing more
about.

X. ADJOURNMENT .
There being no further discussion, the ECAC Special Meeting was adjourned at 6:35 p.m.

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Imperial Irrigation District
Energy Consumers Advisory Committee
Agenda Report

TO: ECAC Members

FROM: Rosa Maria Gonzales, ECAC coordinator

SUBJECT: March 2015 Year-to-Date ECAC Attendance Report

DATE: April 6, 2015

____________________________________________________________________

Staff Recommendation/Motion:
Staff recommends approval of the March 2015 Year-to-Date Attendance Report of the
ECAC.

Financial Analysis:
None.

Background:
The presence and absence of Committee members is recorded at each meeting, as
a matter of record in ensuring a quorum was present to conduct the business affairs
of the group.
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