HomeMy WebLinkAboutMin 08-16-88167
CITY OF UKIAH
CITY COUNCIL MINUTES
ADJOURNED REGULAR MEETING
ELECTRIC DEPARTMENT "BIG PICTURE REPORT - 1988"
AUGUST 16, 1988
The City Council convened in an adjourned regular meeting at 8:35 a.m. in the
Council Chambers at the Civic Center, 300 Seminary Avenue, Ukiah, California.
Roll was taken and the following Councilmembers were present: Wattenburger,
Shoemaker, Schneiter, Hickey, and Mayor Henderson. Staff present: City
Manager Payne, Director of Electric Utility Department Roper, Public Works
Director/City Engineer Pedroncelli, Electrical Distribution Engineer Dunn,
Assistant to the City Manager Horsley, and City Clerk McKay.
1. Unfinished Business
The City Manager gave a brief report on the history of the Electric Department
in the City of Ukiah.
The Director of Electric Utility introduced the Big Picture Electric Report
and explained a few electric terms to the Council; 1 Kilowatt = 1,000 watts,
10 - 100 watt light bulbs = 1 kilowatt, 1 megawatt = 1,000,000 watts = 1,000
KW, mils = 1/10 of a cent, KWH means kilowatt hour, and firm power means power
generated at a constant rate, unlike the Lake Mendocino Hydro Plant which is
controlled by only what flow releases allow.
The Director of Electric Utility reported on the historical development of the
City's Electric Department since acquisition in 1897. He reported prior to
joining Northern California Power Agency (NCPA) in 1968, the City of Ukiah
bought its power from Pacific Gas & Electric (PG&E), which with their rising
wholesale rates would have resulted in Ukiah City customers paying more than
PG&E customers. He stated that was when Ukiah became one of the founding
members of NCPA in 1968, with i0 other cities, having the primary purpose of
providing group efficiency to acquire, purchase, generate, transmit,
distribute, sell, interchange and pool electric energy and capacity. He
stated the members of NCPA are the Cities of Alameda, Biggs, Gridley,
Healdsburg, Lodi, Lompoc, Palo Alto, Redding, Roseville, Santa Clara, Ukiah,
the Plumus-Sierra Electric Cooperative located in Portola, California, and the
Turlock Irrigation District.
The Electric Director then showed the Council a slide presentation on Northern
California Power Agency which narrated and showed the generating resources of
5 combustion turbines, geothermal plants No. 1 and No. 2 located at the
Geysers, and the North Fork Stanislaus River Hydroelectric Project.
Discussion ensued regarding costs of these projects and average cost of power
generated by them, and percent debt service.
Councilmember Shoemaker requested NCPA agendas be put on R.A.A.P. sheets.
Councilmember Schneiter indicated he would like to hear reports on NCPA on a
regular basis.
The Electric Director reported WAPA was created under the Department of Energy
Organization Act and was established on December 21, 1977, and now markets and
transmits federally produced power to 572 wholesale power customers which
provide service to retail customers in 15 Western and Central States. He
stated Ukiah currently receives an allocation of 8.8 MW of capacity and
approximately 50 million KW hours annually, with Ukiah's current contract with
WAPA expiring in 1994. WAPA will be holding hearings in 1989 for a new
marketing plan which could affect the City's present allocation with WAPA.
Discussion ensued about WAPA and the 5 cities and Ukiah that received an
allocation as a result of the last marketing plan.
The Electric Director reported that the Transmission Agency of Northern
California (TANC) is comprised of 13 members of NCPA, including Ukiah,
Sacramento Municipal Utility District, and Modesto Irrigation District. He
168
stated that there is a transmission project called California-Oregon
Transmission Project (COTP) that will provide a 340 mile, 500 KV transmission
line from the California-Oregon border to Tracy allowing access to the
inexpensive power of the Pacific Northwest. He stated TANC's share of this
project is 48% with division among TANC members. Ukiah will have a .046 share
equalling approximately 3.2 megawatts, which is not a real number until after
negotiation, but is an entitlement figure.
The Electric Director reviewed in 1982 80% of the Ukiah voters approved a 23
million dollar Bond Issue to construct a hydroelectric power plant and Gobbi
Substation. It was completed in 1987 with one issue remaining regarding
deficiencies in the liquid oxygen system not able to maintain the 7 parts per
million in dissolved oxygen level required by California Fish & Game. This
portion of the settlement was held out of the completion notice and Tutor
Engineering is working on the problem now, with completion expected in the
near future.
Gary Akerstrom, 409 Talmage Road, questioned the chart in Exhibit 5 regarding
purchased power from WAPA.
The Electric Director explained load factor and that the chart shows capacity
not actual usage.
Recess 10:12 a.m.
Reconvened 10:21 a.m.
Councilmember Schneiter mentioned there is a large number of poles dating back
to the 1930's and 1940's that are unfit for climbing and unsafe. He estimated
out of 1,500 total poles there are over 200 needing replacement.
The Electric Director answered there is an ongoing program of replacement of
poles with testing done of questionable poles. He stated sometimes poles that
look bad, test good; and poles that appear good, testing indicates rotten
centers and these are replaced.
Councilmember Hickey mentioned that as an old pole climber himself there are
many he would not climb.
The Electric Director stated they are more than happy to cooperate with joint
owners of the utility poles and share replacement costs.
The City Manager requested if anyone knows of any poles that need replacing,
to let the appropriate management know as there is money specified for this.
Mayor Henderson expressed concern over the higher number of claims due to
transformer failure.
The City Manager stated that claims do not signify the event actually
happened.
The Electric Director indicated with the increasing amount of solid state
circuitry in home appliances and other sensitive equipment such as computers,
they are more susceptible to power fluctuations and cannot take the surge,
like other standard appliances. He explained surges occur after power fails
and when it comes back on there is a brief surge, but if it is caused by the
electric department's error they admit the error and the claim is paid by the
City's insurance company.
The Electric Director then reported on the progress of undergrounding electric
facilities since 1978, exhibiting a map that showed approximately one-third of
the total proposed area done to date. He indicated to meet the Council's goal
of undergrounding City electric facilities on all entries into the City on
State Street North and South, will require cooperation of other entities such
as PG&E.
The Electric Director reported on the electric department's current method of
setting rates, as approved by the City Council, is to discount the rate
approved by the Public Utility Commission for various classes of PG&E service
by reducing the base rate by 5% and passing along the fuel cost, and this
results in a rate that is 3.5% to 4.5% below PG&E equivalent rates. He
Adj. Reg. Mtg.
August 16, 1988
Page 2
169
indicated commercial rates are handled similarly although 1 mil is added back
on to pay for the larger transformers needed by these commercial facilities.
He stated this method has worked in the past, and provided sufficient revenues
to maintain the City's electric system, which allows the City to meet its
obligations, while being non-controversial as far as the public is concerned.
Councilmember Schneiter expressed concern over setting rates, based on PG&E's
equivalent rates, feels we are setting an artificial rate that doesn't address
our cost of power.
The City Manager answered that the City Council of Ukiah approximately 4 or 5
years ago established the current way of establishing rates. He reported that
in 1981 the electric department was $600,000 in the red and new rate
structures were needed to finance the Lake Mendocino Hydro Project. He
indicated now, in 1988, the Electric Department is financially sound.
The Electrical Distribution Engineer Steve Dunn gave a report on his survey
comparing PG&E development charges for residential subdivision underground,
residential developments underground, and residential, commercial and
industrial off-site costs; with Ukiah Electric Department development costs of
the same. He concluded that although interpretation of PG&E's rules and
regulations make it difficult to do an exact comparison, it appeared Ukiah's
fees to developers is within an acceptable range to PG&E's fees and
development charges, with Ukiah being more liberal with negotiating
development fees.
Councilmember Schneiter left the meeting at 11:20 a.m.
Darryl Johnson, PG&E representative, addressed the Council stating that there
is a difference philosophically between how PG&E and Ukiah charge development
fees.
Councilmember Shoemaker commented with projections coming in the next 5 to 15
years, he feels this Study Session was important. He questioned if there are
any projections done as to where we are going to be in 1994, and asked that
information and report be provided to the Council in a few meetings.
Adjournment
There being no further business, the meeting was adjourned at 12:01 p.m. to
erk
Adj. Reg. Mtg.
August 16, 1988
Page 3