Idaho Falls Utility Board Meetings

September 13, 2023 The Idaho Falls Power Board of the City of Idaho Falls met Wednesday, September 13, 2023, at the Idaho Falls Power Boardroom, 140 S. Capital, Idaho Falls, Idaho at 7:45 a.m. Call to Order, Roll Call, and Announcements: There were present: Board Member Michelle Ziel-Dingman Board Member Tom Hally Board Member Jim Francis Board Member Jim Freeman Board Member Lisa Burtenshaw Absent: Mayor Rebecca L Noah Casper Board Member John Radford Bear Prairie, Idaho Falls Power (IFP) General Manager Also present: Stephen Boorman, IFP Assistant General Manager (AGM) Randy Fife, City of Idaho Falls Attorney Richard Malloy, Compliance and Safety Manager Mark Hagedorn, City Controller Jace Yancey, Operations Technology Manager Wid Ritchie, Customer Service Manager Josh Roos, IFP Chief Financial Officer Linda Lundquist, IFP Board Secretary Board Member Ziel-Dingman, presiding as Board Chair called the meeting to order at 7:46 a.m. Calendar, Announcements, Events and Updates Board Member Ziel-Dingman reviewed the calendar announcements. Board Member Francis gave an update on the Horse Butte Wind Farm Tour and explained the phase II expansion options. Assistant General Manager (AGM) Boorman added that the software upgrade seemed like a good option and Board Member Freeman said it was his opinion that the turbines should be replaced after they’ve reached the end of their useful lives. Board Member Francis said he thought the landowners seemed amenable to any type of expansion. Hydro Relicensing Update Compliance and Safety Manager Richard Malloy reviewed the timeline of re-licensing the bulb projects and gave an overview of how/why licensing is conducted every 40 years and explained that the licensing is more about the waterway and not the generators, unless the generators need upgrading. He said that licensing is about reevaluating the operational safety and mitigation for the impacts the projects have on the prior natural environment. Mr. Malloy talked about the recreational component (as part of the environmental impact statement) and noted there are several stakeholders that would like to see recreation on and around the river expanded. Board Member Freeman asked if IFP partners with Idaho Fish and Game and Mr. Malloy said yes and explained that one of the fish and game’s big interests are the sturgeon that were introduced in this stretch of the river 10-15 years ago, and noted as a result that they could request a sturgeon fish study. He said that the tribes are other important stakeholders in the outreach process. He shared that two consulting firms are guiding the years-long process and reviewed Federal Energy Regulatory Commission’s (FERC) schedule to respond to complete relicensing by 2029.  September 13, 2023 Unapproved Peaking Plant RFP Timeline Mr. Malloy said he anticipates receiving feedback from the request for proposals (RFP) soon and hopes to reach out to engineering and procurement entities that have built similar projects and plans to bring back a recommendation to the Board. He explained that IFP has been working with the Department of Environmental Quality (DEQ) on air permitting so that the process doesn’t hold up the construction project if approved. Mr. Malloy said he’s anticipating operating the plant about 2000 hours per year and that General Manager (GM) Prairie is creating a white paper that describes the peaking plant need and other power supply resources in greater detail. He noted that IFP specified in the RFP that all machines must blend hydrogen and hopes to entice the Idaho National Laboratory (INL) to join the onsite research center. Board Member Francis said he prefers that the public get to learn about the proposed plant in a public meeting and AGM Boorman said the RFP and white paper will be reviewed and discussed in the next two Board meetings. Grant Status Update Chief Financial Office (CFO) Roos updated the Board on the status of the grant applications that have been submitted to date and explained the reason/s the fiber grant was retracted due to a speed requirement. He said the Grid Resilience and Innovation Partnership (GRIP) grant (about $34 million) that IFP applied to in the spring has not been awarded yet but expects to hear about it anytime. AGM Boorman pointed out if the GRIP grant is awarded, that could accelerate the utility’s capital improvement projects (CIP) and cautioned that any money spent ahead of the award would not get reimbursed. Mr. Roos said IFP is currently working on a concept paper for an energy storage grant that would bring in large batteries to see how they work on our grid. He reminded the Board of the Idaho Governor’s Office of Energy and Resources (OEMR) grant that was received last fall for the downtown alley projects (Construction on the first alley is ongoing and on schedule to be completed sometime in November.) Mr. Roos noted that phase II funding is expected to be released in October 2023 and pointed out that phase II will be federally funded. Disconnect Policy Update Mr. Roos explained the current policy and pointed out the proposed changes, which in part has to do with overnight temperatures and charging a small percentage on past due amounts to commercial accounts. He said between October 2022 and May 2023, there were over 9000 delinquent accounts (over $2 million in revenue, with about a 2% write off every year) that received a disconnect order but weren’t disconnected due to extended cold temperatures. He explained the process of turning customers back on through the current software, and the difficulty the water department has with water shutoffs in the winter. He proposed that the utility follow the Public Utilities Commission’s (PUC) shut off policy where customers won’t be shut off between December 1 through March 15. He’d like to focus more on educating customers about organizations that assist with utility bill payments like Low-Income Home Energy Assistant Program (LIHEAP) and Eastern Idaho Action Partnership (EICAP). Mr. Roos said that one of the biggest changes that should be made is providing a prepaid option, which isn’t possible with the current software but will be discussed in more detail in the next Board meeting. The direction from the Board given to staff was to make the recommended changes to the policy and review the data in a couple of years. Energy Efficiency Programs Update Customer Service Manager Wid Ritchie explained that the utility has been working with Bonneville Power Administration (BPA) since 1982 on energy efficiency (EE) programs where IFP offers rebates or zero interest loans for EE appliance upgrades or weatherization projects like window replacement and home insulation upgrades. EE reduces the city’s power load, saving on average about 2 million kilowatt hours per year. To encourage more participation, Mr. Ritchie said that IFP is increasing their EE program from $550,000 to $800,000 over the next year. Other IFP Products and Services  September 13, 2023 Unapproved Mr. Ritchie explained that heating and cooling are the biggest users of energy and described the generous rebate for electric heat pumps through the EE program. He said that weatherization is a very popular program but can only be funded in electrically heated homes. He said that customers can get appliance rebates if upgrading from the old Energy Star to their new tiered rating system. Mr. Ritchie explained how he has been working with industrial customers and city departments on lighting upgrade projects to not only save on energy consumption but to end up with high-quality LED lit factories, warehouses, ice rinks and office spaces. Board Member Francis said he’s noticed the industry tries to educate children on energy efficiency but not necessarily teachers and Mr. Ritchie said the utility hosts teachers about once per year and provides hydro plant tours throughout the year as well as hosts the annual water festival at Gem State. Mr. Francis said that Sister Cities will be visiting Idaho Falls and would like to tour the City Plant. Fiber Network Update Operations Technology Manager Jace Yancey provided an update on the fiber-to-home project and said there are currently 14 fiber huts serving 6100 customers, with two more huts to come online this year at Sugarmill and Eagle Rock. Board Member Freeman asked how the fiber huts have been holding up an Mr. Yancey said that the air conditioning units are not great, but that building maintenance has been replacing the motors and noted there hasn’t really been much vandalism. He said that fiber is booked out five-weeks in advance and noted that three crews are doing 60 installs per week. He reviewed the live, color-coded buildout map and said 2023 was by far the biggest construction year, pointing out that some projects were started in 2022 and that the 2023 construction season started early with multiple contractors in town and hopes will run late into the fall. He said the focus is now on the east side of town and noted that the customer base is growing at a fast clip of about 2000 new customers per year, increasing the take rate growth to another five percent (5%). He said that Sunnyside Acres is in the middle of construction and noted that many customers were slated for connection in 2024 but will be connected by the end of 2023. Mr. Yancey said that signups and scheduling appointments have been streamlined and the software has been automated (to scale up the number of installs per week) to make it easier on the customer and make more efficient use of staff time. He asked for Board feedback on what they’ve been hearing around town and Board Member Ziel-Dingman said she’s only known of a broken sprinkler that was repaired and was noted that it was a pretty good sign that only one complaint was brought to her this year. Mr. Yancey said an incredible amount of dirt has been moved this year with lines getting pulled and moved everywhere and noted that it would be hard to not have any complaints. Board Member Francis asked the status of the 911 Center and Mr. Yancey said the last IFP hut coming online this year will give the option to get out of that center. Utility Reports Safety Metrics – AGM Boorman pointed out that the utility has been achieving two enormous accomplishments over the last 5 years; the fiber network expansion and that the utility continues to post an amazing safety record, having turned around the safety culture. There being no further business, the meeting adjourned at 11:02am. s/ Linda Lundquist s/ Rebecca L. Noah Casper Linda Lundquist, BOARD SECRETARY Rebecca L. Noah Casper, MAYOR