Idaho Falls Utility Board Meetings

November 9, 2017 The City Council of the City of Idaho Falls met in Special Meeting (Idaho Falls Power Board), Thursday, November 9, 2017, at Idaho Falls Power Conference Room, 140 S. Capital, Idaho Falls, Idaho at 8:00 a.m. Call to Order and Roll Call: There were present: Mayor Rebecca L. Noah Casper Councilmember John B. Radford Councilmember Ed Marohn Councilmember David M. Smith Councilmember Thomas Hally Councilmember Michelle Ziel-Dingman (arrived at 8:04) Absent: Councilmember Barbara Ehardt Also present: Jackie Flowers, Idaho Falls Power Director Bear Prairie, Idaho Falls Power Assistant Director Randy Fife, Attorney Kathy Hampton, City Clerk Mayor Casper called the meeting to order at 8:01 a.m. Mayor Casper indicated the Idaho Falls Power (IFP) Board Meeting currently scheduled for December 14 will coincide with the Chamber of Commerce Advocacy Meeting. After brief discussion, it was consensus of the Council to reschedule the IFP Board Meeting to December 7 at 8:00 a.m. Electric Vehicle Update: Director Flowers stated due to emissions violations from Volkswagen (VW), a significant amount of money will be spent by VW to implement a national restitution and recall program. Approximately $2.4m will be directed to Idaho for electric vehicle (EV) infrastructure and approximately $14.2m to support fleet vehicle conversions (primarily in the Boise area for air quality issues). The Office of Energy and Mineral Resources (OEMR) may be charged with managing the 15% for EV charging. Director Flowers indicated the City may want to monitor local buses (Idaho National Laboratory (INL), Targhee Regional Public Transportation Authority (TRPTA), School District 91, and the Greater Yellowstone Coalition) as she believes regional conversations need to occur. She indicated IFP staff attended numerous meetings and has since expressed their priorities with the assistance of Idaho Consumer Owned Utilities Association (ICUA) to promote connectivity on a broader expansion within Idaho as well as connection with infrastructure being installed in several surrounding states. Director Flowers indicated Rocky Mountain Power (RMP) has $3.8m in grant funding from Clean Cities to develop EV infrastructure in their service territory (largely in Utah). IFP has expressed interest in coordinating EV infrastructure in Idaho Falls. She stated in 2016 VW launched an “Electrify America” awareness campaign regarding zero emission vehicle (ZEV) infrastructure and information. In the first 30 months, ZEV will invest in 2000 high-speed charging stations across 500 locations to create the “Fueling Stations of the Future” in highly-trafficked properties and along the highways. Electrify America has been reaching out to IFP to identify potential charging stations along the I-15 corridor. American Public Power Association (APPA) is also trying to get money into their program. Director Flowers stated each state has 60 days to submit their Certification for Beneficiary Status. Idaho has submitted paperwork for $17m. She indicated the Greater Yellowstone Coalition may have access to funds as well. On October 4, seven (7) states signed a Memorandum of Understanding (MOU) to expand EV charging locations. Discussion has also occurred regarding the installation of EV charging stations during building construction projects. Technology is currently being developed for remote charging ability. Mr. Prairie stated locations were being considered for our commercial EV charging station program. Discussion followed regarding EV costs, including point of sale charging station, chargers and pedestals, and, electric costs. He indicated the demand charge is more costly however, if a customer stays out of the peak demand, costs would be 1  November 9, 2017 reduced. He briefly reviewed the capabilities of a selected charger which could be customized. It was noted a pilot charger has been installed at IFP. Information will be distributed to commercial customers for the option to install EV charging stations. Wireless Pole Attachment Update: Director Flowers stated the APPA pole attachment agreement was adopted as part of the IFP tool kit. This agreement is for wired attachments only, not wireless. To date, IFP has four (4) wired attachment agreements with one (1) legacy agreement that will need to be transitioned. Director Flowers indicated IFP will need to be strategic with respect to wireless attachments as she believes several companies will want this attachment. She briefly reviewed the regulatory framework, stating States can ’reverse preempt’ and adopt their own rules, in which 21 states have currently done so. She stated the exemption for municipalities is under attack and they will need to remain diligent to continue their infrastructure. Director Flowers stated the Federal Communications Commission (FCC) recommended Congress remove the municipal exemption. Federal “Pole” attachment rules apply to distribution poles, ducts, and conduits, they do not apply to transmission. She indicated current exemption needs to be monitored with diligence. Key federal access principles outline non-discrimination regulations and wireless areas for concern and investigation continue. Director Flowers indicated more towers are needed for increased speed and coverage and she believes wireless attachment is being driven by the connectivity devices demand. Components of a wireless attachment include antenna, cabinet for equipment, backhaul, and electricity. She expressed concern regarding the pressures for street lights as IFP uses street lights for the tropos network routers for the AMI system. She briefly reviewed small cell attachment. Director Flowers stated IFP has been approached by Verizon, although IFP is exploring any partnership very cautiously. She indicated IFP would maintain the physical host although her preference is not to install any equipment on power poles. Director Flowers stated if IFP partners with Verizon, public radio frequency exposure concerns with public safety could arise. Interference with additional wireless systems may also be of concern. She indicated areas of opportunity for utilities include: operating services, operating fiber, providing Ethernet services, leasing dark fiber, engineering deployments, leasing pole attachment and upgrading pole infrastructure. Strategic considerations include utility and siting staff working together, prioritize and fight to protect core interests, listen carefully to industry, consider workable tradeoffs, stay abreast of developments across the U.S., and consider acting proactively. Director Flowers reviewed examples of wireless connections on street lights, traffic control pole, and inside of poles. If pursued strategically, partnership benefit could include Emergency Services, Public Safety, Public Benefit, Utilize Existing Infrastructure, and Smart City. She indicated a draft broadband bill was recently circulated in the Senate Commerce, Science, and Transportation Committee to encourage widespread broadband deployment. This topic continues to be a top issue for APPA. Green Energy Rate Discussion: Mr. Prairie stated since 2012 all green energy requirements have been sold to Battelle Energy Alliance (BEA). He indicated Renewable Energy Credits (REC) are received from existing hydro system upgrades and the Horse Butte Program Credits are then deposited into our Western Renewable Energy Generation Information System (WREGIS) account. He stated every megawatt generated from qualified facilities are uploaded for account credit. These credits can then be sold or put into a green energy account. Once the REC’s are retired they cannot be reused, although additional REC’s can be purchased if necessary. Director Flowers believes a similar process could occur for Small Modular Reactors (SMRs). Brief discussion followed regarding hydro power. Mr. Prairie stated he has approached other large customers in Idaho Falls about purchasing green power, although there has been limited interest at this time. He briefly reviewed emissions data for 2016 including solar, wind, solar, nuclear, and, market purchase. Councilmember Smith recommended a case study be performed for an energy portfolio including green rate tariffs with specific focus on the ability to run case studies and connect with potential businesses who have a green energy portfolio priority. General comments and discussion followed including solar and carbon-free power. Bonneville Power Administration (BPA) Update: Mr. Prairie stated energy imbalance charges to IFP have amounted to $10,000 per month. Documentation is being submitted to formally dispute these charges. He also stated transmission service for the IFP bulb turbines, ~$60,000- 90,000 per month, is being disputed as well. He indicated BPA is offering to not charge for the BPA portion but would continue to charge PacifiCorp as BPA believes they are not obligated to pay for resources. This would reduce 2  November 9, 2017 the amount to $800,000 per year. Mr. Prairie stated course of action would include discussion with the Federal Energy Regulatory Commission (FERC) for discrimination. He indicated benefits could include use of the bulbs in summer for better market pricing. Addition option could be the current network customer. Mr. Prairie stated IFP could possibly change transmission contract to a point-to-point, which would entail payment of a specific amount. He indicated if transmission gets constrained for load growth it would not be served by BPA as a downside to point-to- point service. There being no further business, the meeting adjourned at 10:07 a.m. s/ Kathy Hampton s/ Rebecca L. Noah Casper CITY CLERK MAYOR 3