Energy Policy 2015 Annual Update
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1 Energy Policy 2015 Annual Update May 2015
2 Energy Policy 2015 Annual Update May 2015 Energy Policy Update This report provides an update of 2015 activities and results related to the City of Fort Collins Energy Policy, adopted in January The primary goals of the Energy Policy are to sustain high-system reliability and to contribute to the community s climate protection goals and economic health. The Energy Policy 2050 vision is to ensure highly reliable, competitive, carbon neutral electricity supplies, managed in a sustainable, innovative, responsible and efficient manner for the Fort Collins community. The Energy Policy Annual Update reviews progress made to date in the primary goal areas of the policy: reliability, climate protection, economic health and the City s collaboration with Platte River Power Authority (Platte River). The Energy Policy and most recent annual update are available at fcgov.com/utilities/what-we-do. Key outcomes from implementation of the Energy Policy in 2015 include: Community carbon emissions from electricity use were 13.0% less in 2015 compared to the baseline year of Electricity use per capita, for all sectors, has decreased by over 12.5% from 2005 to Customers continued to receive highly reliable electric service, as measured by the SAIDI (system average interruption duration index) average of 20.6 minutes for Avoided annual carbon emissions of over 273,000 metric tons in 2016 from Energy Policy related activities from 2004 through Non-carbon resources provided 30.8% of electricity (18.6% from hydro, 11.7% from wind and 0.5% from solar). Fort Collins exceeded the 2015 requirements of the Colorado Renewable Energy Standard of a minimum of 6% renewable energy with a qualified renewable energy total of 12.2%. Efficiency programs savings totaled over 26,600 megawatt-hours (MWh), or 1.8% of the community s annual usage, generating over $25 million in local economic benefits through reduced utility bills, direct rebates and leveraged investment. Major 2015 activities and highlights Policies o City Council unanimously adopted new Climate Action Plan goals in March These goals are amongst the most ambitious in the country, calling for reductions of 20% by 2020, 80% by 2030 and 100% by 2050 (all from 2005 baseline). o City Council unanimously adopted an updated Energy Policy in December The new policy, available at fcgov.com/utilities/what-we-do, reflects Fort Collins energy values of reliability, safety, affordability, greenhouse gas (GHG) emissions reduction, pollution prevention and energy independence. The Policy provides goals for the prioritization of decision making, programs and services related to the quantity of use and the sources of energy for electricity, thermal end-uses and transportation. Fort Collins Utilities 1
3 Energy Policy 2015 Annual Update May 2015 Efficiency and Demand Response Results o Customer electricity savings from efficiency programs totaled over 26,600 MWh, or 1.8% of the community s annual usage. This is equivalent to the annual electric use of over 2,900 typical Fort Collins homes. o Efficiency programs saved electricity with a lifecycle cost-of-conserved energy of 3.5 cents per kilowatt-hour (kwh), compared to an average wholesale electricity cost of 5.5 cents per kwh. o The Peak Partners demand response program continued deployment with 2,500 Wi-Fi thermostats and 1,800 water heater controllers installed in The program tools provide a new platform to manage distributed energy resources as they develop on customer premises. o Fort Collins began the Georgetown University Energy Prize national competition with a locally branded initiative called Lose-a-Watt. As of March 2016, Fort Collins resides in the top 10 communities competing for the $5 million prize. o The Home Efficiency Loan Program saw a sharp increase in participation in the second half of 2016 which required an increase in program capital. Renewable Energy o Photovoltaic (PV) capacity additions totaled 4,901 kw. Total solar capacity at the end of 2015 was 7,362 kilowatts. This increased local solar capacity by over three times while demonstrating a range of solar business models with rebates, community-shared solar and feed-in tariff approaches. o The Riverside Community Solar Project was completed and fully subscribed in summer 2015, adding over 600 kilowatts to the system. o Platte River began construction on a 30 megawatt solar project located at the Rawhide Energy Station. o Annual metrics related to renewable and non-carbon electricity sources. For 2015, the results, as a percentage of the community total annual electricity use, are: Non-carbon percentage = 30.8%. This includes the renewable resources noted below, plus Fort Collins allocation of federal hydropower from Western Area Power Administration through Platte River (18.6%). While this source of hydropower does not qualify as renewable under the Colorado Renewable Energy Standard, it is considered a zero carbon emissions resource. Renewable energy percentage = 12.2%. This includes the local solar resources noted below, plus utility scale resources provided to Fort Collins by Platte River (via wind power purchase and renewable energy credit agreements) which meet the requirements of the Colorado Renewable Energy Standard Local renewable energy percentage = 0.5%. This includes production from solar systems installed locally on the distribution system. Pilot Projects o Time of Use (TOU) Rate Pilot: Fort Collins Utilities is conducting a 12-month time-of-use pilot rate study on two separate TOU rate structures for residential customers, which will end in October The summer on-peak hours are 2 p.m. to 7 p.m. and the non-summer on-peak hours are 5 p.m. to 9 p.m. The four Fort Collins Utilities 2
4 Energy Policy 2015 Annual Update May 2015 o o identified objectives are to understand energy conservation impacts, measure potential demand reduction, gauge customer rate structure preference and ensure revenue requirements are being met. Remote Advanced Meter Data Assessments: This project leverages multiple data sources, including interval electric data, to demonstrate capabilities to perform remote efficiency assessments for business customers and support the identification, completion and verification of efficiency projects. Efficiency Works Neighborhoods: Supported partially with grant funding from the American Public Power Association, this project is demonstrating the development and deployment of a streamlined process for existing home efficiency projects. The program utilizes pre-defined packages of improvements tailored to neighborhood home types and construction, project management for customers, standardized unit pricing and integrated financing. Reliability o The primary electric reliability metric is the electric distribution System Average Interruption Duration Index (SAIDI). SAIDI describes the length of time all customers would have been out of power if the total number of hours out of service in a year's time were to be shared (in units of minutes). The number and duration of outages determine this metric. Additional metrics are included in the Appendix. o 2015 SAIDI results were minutes, lower than the target of Fort Collins Utilities 3
5 Fort Collins Utilities 4
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7 Appendix: Energy Policy Metrics Scorecard The Energy Policy references goals that include specific objectives and metrics in various categories. The following tables summarize status, progress and accomplishments in 2015 related to each goal and supporting objectives. The tables use the following stoplight color coding to indicate progress and status: Achieved or on-track to be achieved Progress towards being achieved Not achieved or at risk for not being achieved The Energy Policy and most recent annual update are available at fcgov.com/utilities/what-wedo. For more information regarding any aspect of this annual update, call Fort Collins Utilities at (970) , or V/TDD 711. Goal 1: Provide Highly Reliable Electric Service Objectives and Metrics Progress Provide and maintain a highly reliable system. System Average Interruption Duration Index (SAIDI) less than minutes Average System Availability Index (ASAI) greater than % Customer Average Interruption Index (CAIDI) less than 45 minutes System Average Interruption Frequency Index (SAIFI) less than minutes % 56 minutes 0.37 interruptions Manage peak loads to reduce demands on the distribution system, optimize infrastructure investment and reduce purchased power costs. Maintain energy efficiency and demand side management programs targeting peak loads. Peak demand savings from 2015 efficiency programs was approximately 4.5 MW. The Efficiency Works Business program targets peak load reduction. Custom projects offer the option of calculating rebates based on peak demand reductions. Residential programs also contribute to peak load reductions. Increase the power managed by load management, smart grid and distributed generation to at least 5% of 2005 system peak demand by 2015 and at least 10% by Combined residential and commercial maximum realized load reduction for 2015 was 4.0 MW, or 1.4% of 2015 peak demand. Fort Collins Utilities 6
8 Goal 2: Support Community Greenhouse Gas Reduction Goal (20% reduction below 2005 levels by 2020 and 80% reduction by 2030) Objectives and Metrics Progress Report Light and Power Greenhouse Gas (GHG) emissions inventory and results of reduction efforts. Light and Power aggregate 2015 emissions (ownership and operational control) GHG Emissions Inventory (metric tons) Percent Change Ownership Boundary 1,725,390 1,427, % Operational Boundary 1,198,083 1,042, % Gross Energy Policy related GHG reductions 273,466 metric tons Continuously reduce energy use through verifiable energy efficiency and related programs. Achieve annual energy efficiency and conservation program savings of at least 1.5% of annual energy use (based on a three-year average history). Customer (gross) energy efficiency program savings was 26,602 MWh in 2015, 1.8% of the community s electric use. Utility savings (net) was 23,868 MWh, 1.6% of the community s electric use. Pursue and secure renewable energy investments by balancing environmental benefits, cost effectiveness, impact on electrical system operations and local economic benefits. Maintain a minimum fraction of renewable energy in compliance with State of Colorado requirements. Offer voluntary customer-focused renewable energy programs. A total of 12.2% of renewable energy per the rules of the Colorado Renewable Energy Standard (10.7% from rate-based wind purchases from Platte River 0.5% from local solar which leverages a 3x multiplier under the standard). Voluntary purchases from the Green Energy Program are not included. 16,041 MWh from Green Energy program Increase the contribution of renewable energy to reach the 20% by 2020 carbon reduction goal, after accounting for the contributions of resource mix, energy efficiency, conservation, minimum renewable energy requirements and voluntary renewable energy programs. 12.2% total renewable energy (11.7% from wind resources and 0.5% from local solar). Hydro resources provided 18.6% for a total non-carbon emitting portfolio of 30.8%. Fort Collins Utilities 7
9 3. Enhance Local Economic Health Objectives and Metrics Maintain sufficient revenues through biennial budget planning for ongoing operation and maintenance of the electric system and meet the projected requirements of the asset management plan. Progress Operate and maintain regionally competitive electric service that promotes energy efficiency and conservation. Maintain competitive electric rates. Maintain efficiency and conservation programs to help keep customers energy bills affordable. As of July 2015, Fort Collins typical residential customer bills were in the lowest 10% of 58 Colorado utilities reporting to the Colorado Association of Municipal Utilities (CAMU). Affordability of Utilities electric service (percentage of area median income AMI): Average Residential Customer: 1.3% of AMI Low Income Customer: 1.6% of AMI Very Low Income Customer: 2.6% of AMI Extremely Low Income Customer: 4.4% AMI Fort Collins electric and natural gas affordability for average residential customer: 2.3% of AMI. Leverage Utilities programs to create local and positive economic impacts. Strive to invest climate improvement monies locally in programs that have long-term positive impacts. Efficiency programs in 2015 generated over $25 million in local economic benefits through reduced utility bills, incentives, leveraged investment and indirect activity (e.g. including the effects of additional available spending from reducing utility bills and benefits from efficiency related local activity). 4. Work closely with Platte River Power Authority members and staff to further City of Fort Collins Energy Policy goals Objectives and Metrics Progress Develop closer working relationships with the other Platte River cities. With other member cities, provide policy guidance to Platte River to: Platte River s board unanimously adopted a resource Develop long-term planning policies for management approach that employs an adaptive strategy to costeffectively maintain reliability, manage risks, and ensure Platte River that facilitate innovative solutions to future energy challenges. regulatory compliance. Diversify the portfolio of energy sources that serve the City. Platte River integrated an addition 60 megawatts of wind into its systems in 2015 and signed an agreement to construct a 30MWsolar facility at the Rawhide Energy Station. Fort Collins Utilities 8
10 Table 1: Fort Collins Utilities Efficiency Programs, Budgets and Outcomes (2015) Program Incentive budget ($1,000) Participation (projects) First year customer gross electric savings (MWh) Natural gas savings (therms) Water savings (Tgal) Annual Carbon savings (CO2) tons) Cost of saved energy ($ per kwh levelized) Home Energy Reports $511 54,916 10,381 NA NA 7,894 $0.036 Business Efficiency $1, ,244 58,783 6,123 5,859 $0.033 Green Building $ , ,752 ND 2,796 $0.002 Design Assistance $ ,611 ND ND 1,225 $0.024 Residential Lighting $112 9,041 1,506 NA NA 1,146 $0.014 ClimateWise ND 9 1,028 ND ND 781 $0.007 Consumer Products $203 3, ,002 11, $0.065 Home Efficiency $ , $0.065 Demand Response $ NA 2, $0.027 Conservation Corps $ ,372 2, $0.085 Special Projects $ NA NA 35 $0.088 Total $3,847 73,511 26, ,758 23,908 21,804 $0.035 Note: ND = no data Fort Collins Utilities 9
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