july 7, 2020€¦ · mukilteo ferry terminal - 154 kw rooftop solar photovoltaic system presenters:...
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SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT
BOARD OF COMMISSIONERS REGULAR MEETING
Zoom Online Meeting Platform
July 7, 2020
The Board of Commissioners meeting will be held virtually via Zoom Meeting. Due to the
COVID-19 pandemic and Proclamation 20-28.5 issued by Governor Jay Inslee, in-person
attendance is not permitted at this time.
CONVENE REGULAR MEETING - 9:00 a.m. – Virtual Participation Information
Join Zoom Meeting:
Click link:
https://zoom.us/j/92744847748?pwd=SXMzSHdrc0YyQklGWUhOVTJwSVZvUT09
Dial in: (253) 215-8782
Meeting ID: 927 4484 7748
Password: 464043
1. CEO/GENERAL MANAGER BRIEFING AND STUDY SESSION
A. Updates 1. Other
Connect Up Communication Plan
B. Proposed Small Renewables Program Power Purchase Agreement Between
Snohomish PUD and Washington State Department of Transportation
C. Overview of Snohomish PUD’s Energy Resources and State Energy Regulatory
Requirements
D. Electric Transportation Plan Update
E. Debt Management Opportunities Update
RECONVENE REGULAR MEETING - 1:30 p.m. – Virtual Participation Information
2. COMMENTS FROM THE PUBLIC
Virtual Participation Information:
If you are attending the meeting virtually (using the link or number provided above) please
indicate that you would like to speak by clicking “raise hand” and the Board President will call
on attendees to speak at the appropriate time. If you are joining by phone, dial *9 to “raise
hand.”
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Snohomish County PUD Commission Agenda
July 7, 2020
Page 2
3. CONSENT AGENDA
A. Approval of Minutes for the Regular Meeting of June 16, 2020, and the Special Meeting
of June 23, 2020
B. Bid Awards, Professional Services Contracts and Amendments
C. Consideration of Certification/Ratification and Approval of District Checks and Vouchers
4. ITEMS FOR INDIVIDUAL CONSIDERATION
A. Consideration of a Motion Accepting the Asset Protection Monitoring Report
B. Consideration of a Resolution Approving an Electric Transportation Plan for the District
C. Consideration of a Resolution Authorizing the Assistant General Manager, Customer and
Energy Services, to Execute a Master Energy Savings Administration Agreement with
Puget Sound Energy, Inc. to Establish a Joint Program in Which the District and PSE Could
Purchase Energy Savings from Each Other and Engage in Mutually Agreed upon
Marketing Activities to Promote Energy Savings Measures in the District’s Service
Territory
5. CEO/GENERAL MANAGER REPORT
6. COMMISSION BUSINESS
A. Commission Reports
B. Commissioner Event Calendar
7. GOVERNANCE PLANNING
A. Governance Planning Calendar
ADJOURNMENT
The next scheduled regular meeting is July 21, 2020
Agendas can be found in their entirety on the Snohomish County Public Utility District No. 1
web page at www.snopud.com. For additional information contact the Commission office at
425.783.8611.
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BUSINESS OF THE COMMISSION
Meeting Date: July 7, 2020 Agenda Item: 1
TITLE:
CEO/General Manager’s Briefing and Study Session
SUBMITTED FOR: Briefing and Study Session
CEO/General Manager John Haarlow 8473 Department Contact Extension
Date of Previous Briefing: N/A Estimated Expenditure: Presentation Planned
ACTION REQUIRED:
Decision Preparation Incidental Monitoring Report
Policy Discussion (Information)
Policy Decision
Statutory
SUMMARY STATEMENT:
Identify the relevant Board policies and impacts:
Executive Limitations, EL-9, Communications and Support to the Board – the CEO/General
Manager shall...marshal for the board as many...points of view, issues and options as needed for
fully informed Board choices.
List Attachments:
CEO/General Manager’s Briefing and Study Session attachments
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Proposed Small Renewables Program Power Purchase Agreement Between Snohomish PUD and Washington State Department of Transportation
Mukilteo Ferry Terminal - 154 kW Rooftop Solar Photovoltaic System
Presenters: Senior Manager Power Supply Anna BergSenior Executive Account Manager Doug O’Donnell
General Manager’s Briefing – July 7, 2020
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Ferry Terminal Project Overview
WSDOT received federal and state funding to construct and replace the aged Mukilteo terminal:
• Located about 1/4 mile east of existing terminal
• Mitigates traffic congestion in area, improves passenger safety loading/unloading, and frees up developable land for urban renewal
• Improves multimodal transit integration with Sounder train and bus access, and improves pedestrian safety
• Late 2020 in service date
Funding included installation of a 154 kW solar photovoltaic (PV) system on the terminal roof.
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Location• About ¼ mile east of existing Mukilteo Ferry Terminal
• Site formerly a U.S. Air Force fueling station, abandoned after the Cold War
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PV Project OverviewPUD and Washington State DOT and Ferry project team began collaborating on the current solar iteration in July 2019.
• Interconnection request filed, PUD System Impact Study completed January 2020
• Interconnection Agreement executed by WSDOT October 2020
• Rooftop solar panels installed on terminal during June 2020
• PV system nearing energization late summer 2020
PV system size exceeds net metering size and meets criteria for selling output under PUD’s Small Renewables Program.
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PUD’s Small Renewables Program
• Adopted by the PUD’s Board of Commissioners in 2011.
• Created standard method for calculating contract price for a customer-owned renewable resource, sited in the PUD’s service territory.
• Developed to encourage local, customer-owned, distributed energy resources:
Aligns with Strategic Priorities
Distributed energy resources provides a number of measurable benefits to the PUD and its customers beyond energy value
Diversifies power supply portfolio
Can help meet State annual renewables requirements (2X RECs)
• Program provides customer with transparent and timely indicative pricing to help evaluate project feasibility.
• One customer currently enrolled the Small Renewables Program since 2014.
• Program participation subject to Board approval.
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Public Facing Web
Presence
6Link to Small Renewables Program
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Program Details
Program eligibility criteria:
• Open to a small renewable resource or resource that does not emit carbon.
• Generator nameplate capacity of 100 kW up to 2MW.
• Located in PUD service area at single site.
• Aggregate program limit capped at 10 MW.
Program provides:
• Standard contract pricing methodology.
• Standard Power Purchase Agreement (PPA):
Contract term of 1 or 5 years, with option to extend 5 years
PPA subject to Board approval
Support Program Process includes:
• Standard interconnection study and process for interconnection of customer’s generator to District’s Electrical System.
• Standard District Interconnection Agreement.
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Standard Contract Pricing Components
Energy Price (forecast energy market price)
Tradable REC Value (if applicable)*
Transmission & Distribution Loss Credits
Distributed Generation REC Credit (if applicable)
Deferred System Upgrades Credit (5 yr term only)
Deferred System Upgrades Credit (5 yr term only)
Generation Capacity Cost Credit (5 yr term only)
8
Customer can elect one or five- year
contract term:
One-year term eligible for first 3
pricing components;
Five-year term eligible for most all
remaining price components.
*Only renewable resources eligible under the Energy Independence Act (I-937)
are allocated a financial value for RECs generated.11/212
Standard Power Purchase Agreement
Contract Pricing for term by month, specified for on and off peak hours.
No Energy Price component paid during months of May and June when District typically has surplus energy.
Considers contract term extension, based on mutually agreeable business terms.
Details the reporting of RECs associated with project output.
Establishes scheduling requirements for Power Scheduling.
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Ferry Terminal PV System – Contract Pricing
ENERGY PRICE 2020 2021 2022 2023 2024
HLHs except May-Jun 3,011$ 3,038$ 3,115$ 3,230$ 3,479$
LLHs except May-Jun 473$ 475$ 498$ 526$ 570$
May-Jun ("Zero" price) -$ -$ -$ -$ -$
Total Energy Price 3,484$ 3,513$ 3,613$ 3,756$ 4,049$
CREDIT FOR T & D LOSSES
Transmission Loss Credit 70$ 70$ 73$ 75$ 82$
Distribution Loss Credit 137$ 136$ 142$ 147$ 159$
Total Loss Credit 207$ 206$ 215$ 222$ 241$
TRADABLE REC VALUE (if applicable) 893$ 1,133$ 1,295$ 1,457$ 1,623$
OTHER CREDITS (if applicable)
Deferral of System Upgrades Credit (does not apply to 1 yr contracts) 248$ 254$ 260$ 266$ 272$
Distributed Generation Credit 446$ 567$ 648$ 728$ 812$
Total Other Credits 694$ 821$ 907$ 994$ 1,084$
GENERATION CAPACITY CREDIT (does not apply to 1 yr contracts) 1,083$ 1,079$ 1,079$ 1,079$ 1,083$
TOTAL PRICE 6,361$ 6,752$ 7,110$ 7,509$ 8,080$
Estimated Overall Effective $/MWh 39.19$ 41.71$ 43.92$ 46.38$ 49.78$
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Guidance Sought
Staff Recommendation• To execute a power purchase agreement with Washington
Department of Transportation for 100% of the energy and environmental attributes from the new Mukilteo Ferry Terminal’s 154 kW rooftop solar project for the 2020-2025 period.
• Power purchase agreement consistent with terms and conditions of the PUD’s Small Renewables Program.
Next steps• At the July 21, 2020, Regular Meeting, consider a resolution to
authorize the CEO/General Manager to execute a power purchase agreement substantially in the form of Standard Small Renewables Program Power Purchase Agreement.
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Questions?
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Overview of
Snohomish PUD’s Energy Resources and
State Energy Regulatory Requirements
General Manager’s Briefing July 7, 2020
Presenters: Senior Manager Power Supply Anna Berg
State Government & External Affairs Associate Clark McIsaac
Previous Presentation on Clean Energy Transformation Act: October 2019
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Agenda
• Snapshot of PUD’s energy portfolio and serving customers
• Highlights of State Energy Regulatory Requirements for PUD Portfolio
1. Annual Fuel Mix Disclosure
2. Energy Independence Act and Annual Renewables Target
3. Integrated Resource Planning Requirements
4. Clean Energy Transformation Act (CETA) – NEW!
• Primary Components of CETA
• Update on CETA Rulemaking Process
• Wrap Up and Future Briefings
2
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2019 Portfolio Actuals by Source
3
PUD Owned Hydro
6%
Other
Renewables
<1%
Wind
7%
Market Purchases
10% Hydro
83%
Nuclear
12%
Market Purchases
5%
Wind (no RECs)
<1%
BPA Block-Slice Contract
(Net of Surplus Slice Sales)
77%
2019 PUD Power Supply Portfolio
2019 BPA Portfolio
PUD Resource Mix is posted under “About Us” on snopud.com18/212
4
2019 PUD’s Average Load-Resource Balance by Month
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Jan Feb March April May June Jul Aug Sep Oct Nov Dec
Tota
l Mo
nth
ly M
ega
wat
t h
ou
rs
PUD Hydro BPA Block Biomass/Biogas Wind BPA Slice Mkt Purchase Retail Load
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Highlights of State Energy Regulatory Requirements
1. Fuel Mix Disclosure
2. Energy Independence Act (I-937)
3. Integrated Resource Plan (IRP)
4. Clean Energy Transformation Act
(CETA)
5
Annual portfolio disclosure by fuel type to Commerce, (info lags by up to 6-8 months)
Progress report filed with Commerce by June 1 Actuals reported, retired and submitted for review by State Auditor
Comprehensive analysis every 4 years, update every 2 years. Subject to Board review, public hearing and Board adoption, filed with Commerce
New law, new requirements Revise some provisions in IRP and resource planning, creates new portfolio standards to name a few….Many new reporting requirements
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Annual Fuel Mix
Disclosure
(by fuel type)
PUD’s Fuel Mix is posted under “About Us” on snopud.com
6
Biomass
0.48%Biogas
0.05%
Hydro
75.93%
Nuclear
11.45%
Other
0.64%
Solar
0.25%
Wind
6.50%
Unspecified
4.70%
PUD’s 2019 Preliminary Annual Fuel Mix
*Unspecified is a new category the Washington State Department of Commerce added in 2018 to
reflect that in some instances the fuel type may not be known as a market purchase BPA may have made that helps serve a utility under its long-term BPA power contract.
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Energy Independent Act (EIA or I-937)
• Washington utilities with 25,000 or more customers are subject to annual EIA requirements and serving
an increasing percentage of retail sales with eligible renewables. There are also certain requirements
for a utility to meet for acquiring new conservation.
• The following represents the PUD’s annual renewables target across time:3% effective January 1, 2012 ~24 aMW or ~210,000 MWh9% effective January 1, 2016 ~65 aMW or ~570,000 MWh
15% effective January 1, 2020 ~110 aMW or ~964,000 MWh
• For the 2012 through 2016 period, the PUD satisfied the 3% and 9% renewables targets with its existing
resources, incremental hydro, and share of BPA Tier 1 RECs allocated under our power contract.
• For the 2017 through 2019 period, the PUD used a combination of its existing resources, incremental
hydro, BPA Tier 1 RECs, surplus RECs we identified to “carry over” to the compliance year, along with a
small portion of unbundled REC purchases. This strategy is bridging the 9% to 15% increase for 2020.
• The Integrated Resource Planning process is where we evaluate how “best” to meet the PUD’s future
EIA compliance requirements.
7
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Energy Independence
Act (EIA)
2019 EIA Renewables ComplianceTarget: 9% of PUD’s Total Retail Sales or 588,669 MWh
Met predominantly with PUD’s existing resources:
• Solar Express (2X) ~3%
• Woods Creek Incremental Hydro <1%
• Hampton Lumber Biomass (2X) ~6%
• Qualco Energy Biogas (2X) <1%
• Long-Term Wind Contracts >90%
• BPA Tier 1 RECs <1%
• Unbundled REC Purchases <1%
8
PUD’s EIA Renewables Compliance posted under “Power Supply” on snopud.com23/212
Integrated Resource Plan (IRP)
• Statute requires the utility’s comprehensive IRP analysis every four years, with progress report or update every two years.
• PUD’s IRP team kicked off 2021 IRP in January 2020 and is scheduled for Board briefings in August.
• IRP analyses must include:
Include a range of load forecasts for at least 10 years;
Assess commercially available conservation and energy efficiency resources and utility-scale generating technologies;
Consider oversupply and mitigation for resource additions;
Identify a short term action plan to implement long range IRP; and
Public hearing required to adopt the IRP.
9
PUD’s Integrated Resource Plan is posted under “Power Supply” on snopud.com24/212
Clean Energy Transformation Act
• During the 2019 Legislative Session, after months of stakeholder
engagement and negotiations, Snohomish PUD shifted from “concerned”
to “supportive” of this sweeping de-carbonization legislation.
• The Clean Energy Transformation Act (CETA) was signed into law by
Governor Jay Inslee on May 7, 2019.
• CETA commits Washington state to an electricity supply free of
greenhouse gas emissions by 2045.
• Many elements take effect in the 2021-2026 period.
10
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Primary Components of CETA
1. Eliminates coal generation by 2025.
2. Establishes a “clean energy standard:”
100% carbon neutral by 2030
100% carbon free by 2045
3. Amends IRP statute, adding new requirements and components.
4. Amends Energy Independence Act, adding federal incremental hydro as
eligible and a new compliance path in 2030.
5. Sets targets and measures for energy assistance programs.
6. Requires a four-year Clean Energy Implementation Plan to demonstrate
progress toward clean energy standards.
11
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Demonstrating Compliance with CETA
• Utilities must create a 4-year Clean Energy Implementation Plan (CEIP)
• Due by Jan 1, 2022, and every four years thereafter.
• Establish “interim targets” for meeting the 2030 carbon neutrality standard,
including targets for energy efficiency, demand response, and renewable
energy.
• CEIP must be:
• Informed by the utility’s IRP analysis.
• Include specific actions to be taking during the four year CEIP that
demonstrate progress towards meeting the 2030 and 2045 standards.
• Must incorporate the social cost of carbon into all aspects of planning.
12
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CETA Additions to IRP Requirements
1. Assessment and ten-year forecast of generation and transmission availability
2. Determination of Resource Adequacy metrics
3. Forecast of Distributed Energy Resources (DERs)
4. Assessment of equity issues
5. Must include a specific societal cost of carbon as a cost adder
6. Replaces previous “short term action plan” with a new 10-year Clean Energy
Action Plan for implementing CETA standards
13
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Rulemaking Context
1. What is rulemaking and why is it now happening for CETA?
2. What is the timeline for CETA rulemaking?
3. What is Snohomish PUD’s focus?
4. Workshops and PUD engagement
14
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Rulemaking Update
• Earlier rulemaking workshops and PUD engagement
• Recent language from Commerce
• What is the process looking forward?
• Utilities & Transportation Commission’s (UTC’s) preliminary interpretation
15
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Bridging to the Clean Energy Future
• PUD Staff working cross-departmentally to consider how to more
effectively communicate and message the good news about the PUD’s
carbon free portfolio.
• Goal: Bridge how we share and communicate today’s PUD portfolio
information via website postings into the new CETA world.
• Same portfolio information parsed in a different way
• Emphasize Snohomish PUD as a National Leader in carbon free energy
• Following slides are examples
16
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PUD’s Fuel Mix History
2016-2019
17
ExamplePUD 4 yr
Rolling Avg
(in %)
2016 2017 2018 Prelim 2019 2016-2019
Biomass 0.10 0.08 0.5500 0.48 0.30
Biogas 0.1500 0.05 0.10
Coal 1.19 0.61 0.0000 0.00 0.45
Cogen 0.00 0.00 0.0000 0.00 0.00
Geothermal 0.00 0.00 0.0000 0.00 0.00
Hydro 87.27 89.79 79.5100 75.93 83.13
Landfill Gas 0.00 0.00 0.0000 0.00 0.00
Natural Gas 0.68 0.80 0.0100 0.00 0.37
Nuclear 10.71 8.65 9.8800 11.45 10.17
Other 0.03 0.04 0.0700 0.6400 0.20
Petroleum 0.02 0.03 0.0000 0.00 0.01
Solar 0.00 0.00 0.2300 0.25 0.12
Waste 0.00 0.00 0.0000 0.00 0.00
Wind 0.00 0.00 7.0500 6.50 3.39
Unspecified 2.5500 4.70 3.63
Total 100.00 100.00 100.0000 100.00 100.00
% Carbon Free 98.11 98.56 97.44 95.30 97.35
% GHG Emitting 1.89 1.44 2.56 4.70 2.65
Snohomish PUD's Historical Fuel Mix - Source:
Department of Commerce (in %)
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PUD’s Carbon Free Report Card =
4 Year Average 97.4% Carbon Free
“A”
18
Example
0.00
20.00
40.00
60.00
80.00
100.00
20162017
2018Prelim 2019
2016-2019
98.1 98.6 97.495.3 97.4
% P
UD
En
erg
y P
ort
folio
% Carbon Free % GHG Emitting
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Wrap Up & Future Briefings
• Team PUD fully engaged with regional partners on CETA and will provide
updates throughout rulemaking process.
• Other future briefings include:
Energy Services update on EIA Compliance for Conservation - July 21, 2020
2021 IRP Process underway with briefings planned - August 4 and 18, 2020
Update planned after July 31, 2020 release of Final Environmental Impact Statement on
Columbia River System Operations
Overview of Northwest Power Pool’s Resource Adequacy Program to be scheduled
19
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Other Questions?
20
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Electric Transportation Plan Update
July 7, 2020
Commission Meeting
Senior Project Manager Suzanne Frew
Last Presented: March 3, 2020
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• Commission Presentation History
• Electric Transportation Plan
• Electrical Vehicle Purpose Statement
• Key Strategies
• Timeline/Roadmap
Agenda
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Commission Presentation
History
• March 3, 2020 EV Update • Report of 2019 activities, key
strategies, and 2020 planned activities
• July 16, 2019 DER Workshop• Industry update, short-term plan,
introduction to road map, and SHB 1512
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Electric Transportation Plan
SHB 1512 – Transportation Electrification passed in 2019 amends several RCWs and provides “legislative clarity” for programs and services related to transportation electrification.
• Adopt an Electric Transportation Plan by Commissioners
• Limits net cost to ratepayers
• Establishes the framework to offer:
• Investment in Infrastructure
• Incentives
• Outreach
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Electric Vehicles Purpose
Statement
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Key Strategies
Build Community through outreach and education about electric vehicles
Optimize the grid with transportation electrification
Enable customer adoptionof electric transportation
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2020 and Beyond Roadmap
2020 Q1
•PUD EVSE Pool Cars
•DCFC Grant
•Engagement Manager –Shelley Pattison
2020 Q2
•New Public EV Website
•CEF3 Grant
•EV Logo and Collateral
2020 Q3
•Release Transportation Plan
•FleetCarma Pilot*
•Residential EVSE Incentives
2020 Q4
•V2G implementation
•DCFC Construction
•Community Engagement*
2021
•Commercial/MUD Incentives
•Ride and Drive*
•Point of Purchase
2022
•MUD, Workplace, Heavy Duty EVSE Program
•PUD Fleet med-duty vehicles
7* Covid Delay 42/212
DC Fast Charger Grant –AWARDED TO PUD!
• Awarded by the Dept of Ecology
• DC Fast Chargers can charge an electric vehicle in ~30 minutes
• PUD and City of Everett collaborated on design
• Sidewalk and parking spaces are City of Everett property
• Mayor Franklin provided a letter of support
• $240K Project Cost
• Full ask of $154K awarded
• $80K PUD funding
To be located at the PUD Electric Building on California St.
There are currently no DC Fast Chargers in the downtown
Everett area
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Questions and Comments
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Debt Management Opportunities
Update
Jim Herrling - Treasurer
1
July 7, 2020
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Review
Discussed the following:
Generation System 2010A Bonds – Anchor
Tax Exempt Refunding
Electric System 2011 Bonds
Electric System 2012 Bonds
Taxable Advance Refundings
Target Savings
Wait/Do Nothing
Cash Defease
Possible New Money
Recommendations2
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Generation System 2010A Bonds
There is currently $26,465,000 of 2010A GS bonds outstanding
The term of these bonds ends in 2024
Eligible to be refinanced with tax-exempt debt
Refinancing these bonds could achieve approximately $2.4 million or 9.1% net present value (NPV) savings at current interest rates*
Produces average annual debt service savings of $660,000 from 2021 - 2024
Sensitivity analysis:
3
* Based on market rates as of June 24, 2020
Current Interest
Rates
Current Rates
Increase 0.25%
Current Rates
Increase 0.50%
NPV Savings ($) $2.4 million $2.3 million $2.1 million
NPV Savings (%) 9.1% 8.6% 8.0%
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Electric System 2011 Bonds Plan
There is currently $26,980,000 of 2011 ES bonds
outstanding
Advance Refund $23,700,000 in Callable Bonds that
mature in 2022 and after with Taxable Bonds
Target Savings Requirements:
Average annual debt service savings of $500,000
Currently $601,000 (from 2021 – 2024)
5% NPV Savings
Currently 5.70%
Sensitivity analysis:
4
* Based on market rates as of June 24, 2020
Current Rates
Decrease 0.25%
Current Interest
Rates*
Current Rates
Increase 0.25%
NPV Savings ($) $1.6 million $1.3 million $1.1 million
NPV Savings (%) 6.6% 5.7% 4.8%
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Electric System 2012 Bonds Plan
There is currently $41,495,000 of 2012 ES bonds
outstanding
Advance Refund $25,350,000 in Callable Bonds that
mature in 2025 and after with Taxable Bonds
Target Savings Requirements:
Average annual debt service savings of $300,000
Currently $412,000 (from 2021 – 2028)
5% NPV Savings
Currently 8.4%
Sensitivity analysis:
5
* Based on market rates as of June 24, 2020
Current Rates
Decrease 0.25%
Current Interest
Rates
Current Rates
Increase 0.25%
NPV Savings ($) $2.5 million $2.1 million $1.7 million
NPV Savings (%) 10.0% 8.4% 6.7%
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Recommendations
Refund the Generation 2010A Bonds
Currently refundable with tax exempt bonds
Average annual debt service savings of $660,000 through 2024
assuming current interest rates
Refund Electric System 2011 and 2012 Bonds
Advance refund with taxable bonds
If target $500,000 average annual savings is achieved for 2011’s
If target $300,000 average annual savings is achieved for 2012’s
If 5% Net Present Value savings is achieved
No new money bond issuance at this time
Continue to monitor capital program/cash needs going-forward
6
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Next Steps Schedule
July
Prepare Preliminary Official Statements
Draft Supplemental Resolutions
Virtual meetings with Rating Agencies
July 21st
Approve Two Supplemental Resolutions
Approve the form of the Preliminary Official Statements
Approve the release of the Preliminary Official Statements
Approve the form of the Bond Purchase Agreements
Delegates authority to Treasurer or CFO to execute Bond
Purchase Agreement if savings targets are reached
August
Price Bonds (Tentatively August 4th) possibly sooner if
favorable conditions
Close Transaction (August 18th) 7
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COMMENTS FROM THE PUBLIC
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BUSINESS OF THE COMMISSION
Meeting Date: July 7, 2020 Agenda Item: 3A
TITLE
Approval of the Minutes for the Regular Meeting of June 16, 2020, and the Special Meeting of
June 23, 2020
SUBMITTED FOR: Consent Agenda
Commission Melissa Collins 8616 Department Contact Extension
Date of Previous Briefing: Estimated Expenditure: Presentation Planned
ACTION REQUIRED:
Decision Preparation Incidental Monitoring Report
Policy Discussion (Information)
Policy Decision
Statutory
SUMMARY STATEMENT:
Identify the relevant Board policies and impacts:
Governance Process, Board Job Description: GP-3(4) … a non-delegable, statutorily assigned
Board duty as defined under RCW 54.12.090 - minutes.
List Attachments:
Preliminary Minutes
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PRELIMINARY
SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT
Regular Meeting June 16, 2020
The Regular Meeting, held virtually, was convened by President Sidney Logan at 9:02 a.m. Those
attending were Rebecca Wolfe, Vice-President; Tanya Olson, Secretary; CEO/General Manager
John Haarlow; General Counsel Anne Spangler; Assistant General Managers Pam Baley, Guy Payne,
Brant Wood, and Jason Zyskowski; Chief Financial Officer Scott Jones; Chief Information Officer
Dean Galvez; other District staff; Commission & Executive Services Director Melissa Collins;
Assistant Clerk of the Board Allison Morrison; and Deputy Clerk of the Board Lela Wall.
* Items Taken Out of Order
**Non-Agenda Items
**Commissioner Logan read the following statement:
In accordance with the governor’s Proclamation 20-28.4, we are holding meetings remotely.
1. CEO/GENERAL MANAGER BRIEFING AND STUDY SESSION
A. Updates
1. Media. Media & Public Relations Liaison Aaron Swaney reported on District related news
and articles.
2. Other. There were no other updates.
B. Energy Risk Management Report – 1st Quarter 2020
Senior Manager Rates, Economics & Energy Risk Management Brian Booth and Senior Rate
Analyst Peter Dauenhauer provided an overview of the 1st quarter 2020 that included Supply,
Demand, Forecast Errors over Time, Market Prices, Peak Week Demand, and Forward Prices.
The Credit Limit Analysis, Financial Load Resource Imbalance, and Price Volatility tests had
no violations during the quarter.
The meeting recessed at 9:51 a.m. and reconvened at 9:57 a.m.
C. Water Supply Update
Short-Term Power Trader Mike Shapley provided a presentation on the Water Year 2020
(WY’20), which highlighted the PUD energy portfolio mix; WY’20 weather stats; Hydro
generation update: PUD owned resources and Bonneville Power Administration (BPA) Slice;
Load resource balance; and summary/highlights.
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Regular Meeting 2 June 16, 2020
Commissioner Wolfe requested the data on the generation for each of the PUD owned hydro
projects or facilities, for the first and second quarters, to include how much each produced and
the financial value of each for those quarters. Mr. Shapley said that he would provide that
information.
D. Energy Efficiency Program Collaboration with Puget Sound Energy (PSE)
Senior Program Manager Energy Services Suzy Oversvee presented an overview of a proposed
Master Services Agreement (MSA) that would allow a collaboration between the District and
Puget Sound Energy (PSE), for the sale or purchase of energy savings acquired through energy
efficiency programs in shared service territory.
The next steps included seeking Board approval at the July 7, 2020, Commission meeting to
authorize a mutually beneficial MSA with PSE; Upon approval of the agreement, finalize and
implement the first Scope of Work; Negotiate a small business direct install program, that PSE
would administer; and Map future mutually beneficial scope of work.
In response to Board questions, General Counsel Anne Spangler and Assistant General
Manager Customer & Energy Services Pam Baley provided additional contract and scope of
work information, noting that the agreement would not obligate the District to participate.
E. Debt Management Opportunities
Senior Manager, Treasury, Risk Management & Supply Chain Jim Herrling recommended
opportunities to reduce debt service costs for the District and discussed other possible bond
market financing opportunities.
The next steps timeline, to allow for the process to refund the 2010A Generation Bonds, began
in June and would finish with the close of the bond sale transaction on August 18, 2020. A
more defined plan would be brought back to the Board at the July 7, 2020, Commission
meeting, and Commission approval to circulate the preliminary Official Statement, would be
obtained on July 21, 2020, in order to price the bonds by August 4, 2020.
EXECUTIVE SESSION
The Regular Meeting recessed at 11:39 a.m., and reconvened at 11:50 a.m., into Executive Session to
discuss current or potential litigation, under the terms set forth in the Open Public Meetings Act. It
was anticipated the Executive Session would last approximately 15 minutes, with no public
announcements. Those in attendance were Commissioners Sidney Logan, Rebecca Wolfe, and
Tanya Olson; CEO/General Manager John Haarlow; General Counsel Anne Spangler; other District
staff; Commission & Executive Services Director Melissa Collins; and Assistant Clerk of the Board
Allison Morrison. The Executive Session concluded at 12:00 p.m.
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Regular Meeting 3 June 16, 2020
RECONVENE REGULAR MEETING
The Regular Meeting, held virtually, was reconvened by President Sidney Logan at 1:32 p.m. Those
attending were Rebecca Wolfe, Vice-President; Tanya Olson, Secretary; CEO/General Manager
John Haarlow; General Counsel Anne Spangler; Assistant General Managers Pam Baley, Guy Payne,
Brant Wood, and Jason Zyskowski Chief Information Officer Dean Galvez; Chief Financial Officer
Scott Jones; other District staff; members of the public; Commission & Executive Services Director
Melissa Collins; Assistant Clerk of the Board Allison Morrison; and Deputy Clerk of the Board
Lela Wall.
* Items Taken Out of Order
**Non-Agenda Items
**Commissioner Logan read the following statement:
In accordance with the governor’s Proclamation 20-28.4, we are holding meetings remotely.
Changes to the agenda were made as follows: Add Item 5E Settlement of a Claim under Items for
Individual Consideration.
2. COMMENTS FROM THE PUBLIC
*Steve Leombruno, Snohomish, inquired about an opt out option for the Smart Meters program.
CEO/General Manager John Haarlow responded that no action had been taken on implementing
the program and that it was still in due diligence. Mr. Haarlow believed that an opt out would be an
option, though, if the program was adopted.
3. CONSENT AGENDA
A. Approval of Minutes for the Regular Meeting of June 2, 2020
B. Bid Awards, Professional Services Contracts and Amendments
Public Works Contract Award Recommendations Over $25,000:
Request for Proposal No. 20-1040-KS with Columbia Helicopters, Inc.
Formal Bid Award Recommendations $120,000 and Over:
None
Professional Services Contract Award Recommendations $200,000 and Over:
None
Miscellaneous Contract Award Recommendations $200,000 and Over:
None
Cooperative Purchase Recommendations:
Contracts:
None
Amendments:
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Regular Meeting 4 June 16, 2020
None
Sole Source Purchase Recommendations;
None
Emergency Declarations, Purchases and Public Works Contracts:
None
Purchases Involving Special Facilities or Market Condition Recommendations:
None
Formal Bid and Contract Amendments:
Professional Services Contract No. CW2230134 with Nash Consulting, Inc.
Contract Acceptance Recommendations:
Public Works Contract No. CW2237372 with McClure and Sons, Inc.
C. Consideration of Certification/Ratification and Approval of District Checks and Vouchers
D. Consideration of a Resolution Adopting a Restated Adoption Agreement and Addendum to the
Public Utility District No. 1 of Snohomish County 401(k) Savings Plan and Trust
A motion unanimously passed approving Agenda Items 3A – Approval of Minutes for the
Regular Meeting of June 2, 2020; 3B – Bid Awards, Professional Services Contracts and
Amendments, 3C – Certification/Ratification and Approval of District Checks and Vouchers,
and 3D – Approving Resolution No. 5961 adopting a restated Adoption Agreement and
Addendum to the Public Utility District No. 1 of Snohomish County 401(k) Savings Plan and
Trust.
4. PUBLIC HEARING AND ACTION
A. Disposal of Surplus Property – 3rd Quarter 2020
President Logan opened the public hearing.
There being no questions or comments from the public, the public hearing was closed.
Based on staff’s recommendation that the items were no longer necessary or useful to the
District, a motion unanimously passed approving those items listed on Exhibits A and B of the
Surplus Property Recommendation Report be declared surplus and be sold for high bid or
disposed of according to policy in the 3rd Quarter of 2020.
5. ITEMS FOR INDIVIDUAL CONSIDERATION
A. Consideration of a Resolution Approving an Electric Transportation Plan for the District
It was moved to approve a Resolution approving an Electric Transportation Plan for the
District.
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Commissioner Wolfe moved to table the Resolution until the next regular Commission
meeting, for staff to come back with a response to specific comments that were proposed, and
questions asked by Commissioner Wolfe. Motion passed to table the resolution.
Commissioner Wolfe: Aye; Commissioner Olson: Aye; Commissioner Logan: Nay.
B. Consideration of a Resolution Approving the Submittal of an Application and Authorization for
a Grant from the Washington State Recreation and Conservation Office for the Sultan River
Floodplain Activation Design Project
A motion unanimously passed approving Resolution No. 5963 approving the submittal of an
application and authorization for a grant from the Washington State Recreation and
Conservation Office for the Sultan River Floodplain Activation Design Project.
C. Consideration of a Resolution Amending the District’s Customer Service Regulations for the
Electric Service
An amended coversheet, amended project summary, and amended Resolution page one was
provided at places, by reference made a part of the packet.
A motion unanimously passed approving Resolution No. 5964 amending the District’s
Customer Service Regulations for the Electric Service, as amended.
D. Consideration of a Resolution Authorizing the CEO/General Manager to Execute Amendment
No. 1 to Everett and JOA Participants Water Supply Contract
A motion unanimously passed approving Resolution No. 5965 authorizing the CEO/General
Manager to execute Amendment No. 1 to Everett and JOA Participants Water Supply Contract.
**E. Settlement of a Claim
A motion unanimously passed to approve the proposed settlement of the lawsuit of State Farm
Fire & Casualty Co. v. Public Utility District No. 1 of Snohomish County in accordance with
the terms and conditions set forth in the confidential memorandum from legal counsel for the
District to the CEO/General Manager, dated June 4, 2020.”
6. CEO/GENERAL MANAGER REPORT
CEO/General Manager John Haarlow reported on various District department highlights, and
Assistant General Manager Customer & Energy Services Pam Baley contributed information on
customer outreach, regarding bill variance from estimated billing, and provided customer support
plan statistics. Mr. Haarlow also spoke about cybersecurity assessment work being done by the
Information Technology Services (ITS) group with the National Guard.
Mr. Haarlow made a statement about diversity, equity, and inclusion (DEI), and discussed the
opportunity and responsibility for the District to change systematic racism in our country.
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Mr. Haarlow mentioned that a way to take action, regarding DEI, was to reach out to identify
consultants who would be able to help the District create a strategic plan that would be brought
back to the Board at a future meeting.
7. COMMISSION BUSINESS
A. Commission Reports
Commissioner Wolfe and Commissioner Logan attended the Public Power Council (PPC) and
the Pacific Northwest Utilities Conference Committee (PNUCC) virtual meetings and the
American Public Power Association (APPA) virtual summit
B. Commissioner Event Calendar
There were no changes to the Commissioner Event Calendar.
C. 2020 Budget, Forecast, and Major Project Status Report
Financial impacts due to the current pandemic were discussed.
8. GOVERANCE PLANNING
A. Governance Planning Calendar
There were no changes to the Governance Planning Calendar.
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Regular Meeting 7 June 16, 2020
ADJOURNMENT
There being no further business or discussion to come before the Board, the Regular Meeting of
June 16, 2020, adjourned at 2:54 p.m. An audio file of the meeting is on file in the Commission Office
and available for review.
Approved this 7th day of July, 2020.
Secretary
President
Vice President
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PREMLIMINARY
SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT
Special Meeting June 23, 2020
The Special Meeting was convened virtually by President Sid Logan at 8:00 a.m. Those attending
were Rebecca Wolfe, Vice President; Tanya Olson, Secretary; CEO/General Manager
John Haarlow; General Counsel Anne Spangler; Assistant General Managers Pam Baley,
Guy Payne, Brant Wood and Jason Zyskowski; Chief Financial Officer Scott Jones; Chief
Information Officer Dean Galvez; other District staff; members of the public;
Commission & Executive Services Director Melissa Collins; and Assistant Clerk of the Board
Allison Morrison.
**Commissioner Logan read the following statement:
In accordance with the governor’s Proclamation 20-28.5, we are holding meetings remotely.
CONNECT UP WORKSHOP
Program Director Mark Flury provided opening comments regarding the workshop, which was a
study session on advanced metering infrastructure (AMI).
A Connect Up Program Planning Phase PowerPoint was provided at places, by reference made a
part of the packet and was presented by Mr. Flury along with his cross-functional team.
The meeting recessed at 9:55 a.m. and reconvened at 10:10 a.m.
The workshop continued with staff’s recommended Business Case, which included a Policy
discussion.
Assistant General Manger Water Utility Brant Wood briefed the Board on how AMI relates to the
Water Utility customers and said that a separate Business Case would be presented on a future date.
The meeting recessed at 12:13 p.m. and reconvened at 1:21 p.m.
Health & Safety, Cybersecurity, and Data Privacy portions of the program planning phase were
discussed, followed by the Communication and Engagement Strategy. The customer
communication plan included a bill stuffer and E-newsletter directing customers to the District’s
webpage and referencing metering infrastructure; public comment opportunities on the District’s
webpage and at the July 21, 2020, and August 4, 2020, Commission meetings; and Richard Tell to
present at the July 21, 2020, Commission meeting.
The meeting recessed at 3:12 p.m. and reconvened at 3:25 p.m.
The Post Deployment Roadmap was presented, followed by closing statements.
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Special Meeting 2 June 23, 2020
A discussion ensued about the direction the Board requested of staff moving forward. Mr. Flury
advised the board of next steps, which included a presentation at the July 21, 2020, Commission
meeting and a resolution for consideration at the August 4, 2020, Commission meeting.
ADJOURNMENT
There being no further discussion, the Special Meeting of June 23, 2020, adjourned at 4:58 p.m.
Approved this 7th day of July 2020.
Secretary
President
Vice President
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BUSINESS OF THE COMMISSION
Meeting Date: July 7, 2020 Agenda Item: 3B
TITLE
CEO/General Manager's Report of Public Works Contract Award Recommendations; Formal Bid
Award Recommendations; Professional Services Contract Award Recommendations;
Miscellaneous Contract Award Recommendations; Cooperative Purchase Recommendations; Sole
Source Purchase Recommendations; Emergency Declarations, Purchases and Public Works
Contracts; Purchases Involving Special Facilities or Market Condition Recommendations; Formal
Bid and Contract Amendments; and Contract Acceptance Recommendations
SUBMITTED FOR: Consent Agenda
Contracts/Purchasing Clark Langstraat 5539
Department Contact Extension
Date of Previous Briefing:
Estimated Expenditure: Presentation Planned
ACTION REQUIRED:
Decision Preparation Incidental Monitoring Report
Policy Discussion (Information)
Policy Decision
Statutory
SUMMARY STATEMENT:
Identify the relevant Board policies and impacts:
Governance Process, Board Job Description, GP-3(4) … non-delegable, statutorily assigned
Board duty – Contracts and Purchasing.
The CEO/General Manager's Report of Public Works Contract Award Recommendations Over
$25,000; Formal Bid Award Recommendations $120,000 and Over; Professional Services
Contract Award Recommendations $200,000 and Over; Miscellaneous Contract Award
Recommendations $200,000 and Over; Cooperative Purchase Recommendations; Sole Source
Purchase Recommendations; Emergency Declarations, Purchases and Public Works Contracts;
Purchases Involving Special Facilities or Market Condition Recommendations; Formal Bid and
Contract Amendments; and Contract Acceptance Recommendations contains the following
sections:
Public Works Contract Award Recommendations Over $25,000 (Pages 1-3);
Request for Proposal No. 20-1041-KS with Pellco Construction, Inc.
Request for Proposal No. 20-1042-SC with Titan Electric, Inc. dba Titan Electric
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Request for Proposal No. 20-1043-BI with Kemp West, Inc.
Formal Bid Award Recommendations $120,000 and Over;
None
Professional Services Contract Award Recommendations $200,000 and Over;
None
Miscellaneous Contract Award Recommendations $200,000 and Over (Page 4);
Miscellaneous No. CW2241038 with K & D Services, Inc.
Cooperative Purchase Recommendations;
Contracts:
None
Amendments:
None
Sole Source Purchase Recommendations;
None
Emergency Declarations, Purchases and Public Works Contracts;
None
Purchases Involving Special Facilities or Market Condition Recommendations;
None
Formal Bid and Contract Amendments;
None
Contract Acceptance Recommendations;
None
List Attachments:
July 7, 2020 Report
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Page 1
Public Works Contract Award Recommendation(s) Over $25,000
July 7, 2020 __________________________________________________________________________________________
RFP No. 20-1041-KS
PWC – Twin City Substation Site
Construction
This contract consists of constructing a new double-bank electrical distribution substation on District property
located at 7400 Pioneer Highway, Stanwood, in Snohomish County, WA 98292. Construction includes, but is
not limited to: Clearing, grubbing and stripping; temporary erosion and sedimentation controls; earthwork;
concrete block retaining wall; storm drainage conveyance systems including infiltration trench and pond
facilities; cast-in-place concrete including slab, spread footing and drilled pier foundations; a transformer oil
spill containment system; electrical conduits and vaults; a substation grounding system; an access control
fence system and substation security fence system including gates and fence curbing; substation yard crushed
rock surfacing; an access road with a combination of asphalt pavement and crushed rock surfacing; and
vegetation restoration including reuse of native topsoil, final grading, and hydroseeding.
Contractor Subtotal (w/o tax)
Award To Pellco Construction, Inc. $1,898,950.00
Interwest Construction, Inc. $2,033,000.00
Razz Construction, Inc. $2,138,500.00
New West Development, Inc. $2,351,800.00
Faber Construction Company $2,394,677.00
Granite Construction Company $2,608,994.00
R-2 Contractors, Inc. $3,680,832.10
SRV Construction $3,834,272.50
Summary Statement: Staff recommends award to Pellco Construction, Inc. in the amount $1,898,950.00,
plus tax.
The bid submitted by SRV Construction was in the amount of $3,836,272.50 and
contained a mathematical extension error totaling ($2,000.00). After correcting this
error, Pellco remains the apparent low bidder.
No. of Bids Solicited: 85
No. of Bids Received: 8
Project Leader & Phone No.: Jacob Dahl Ext. 5277
Estimate: $2,338,500.00
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Page 2
Public Works Contract Award Recommendation(s) Over $25,000
July 7, 2020
__________________________________________________________________________________________
RFP No. 20-1042-SC
Twin City to North Stanwood
115kV Re-Conductor
The project will provide all labor, equipment and material to rebuild approximately 1.25 miles of 115kV line and
add 12kV double circuit distribution under-build between the future Twin City Substation site and North
Stanwood substation, in the city of Stanwood, in Snohomish County, Washington.
Contractor Subtotal (w/o tax)
Award To Titan Electric, Inc. dba Titan Electric
Contracting Inc.
$499,797.67
Michels Power, a division of Michels Corp. $570,079.90
Sturgeon Electric Company, Inc. $655,955.94
Potelco, Inc. $719,263.00
Magnum Power LLC $868,895.00
Wilson Construction Company $1,156,984.02
Summary Statement: Staff recommends award to Titan Electric, Inc. dba Titan Electric Contracting, Inc.,
the low evaluated bidder, in the amount of $499,797.67 plus tax.
Michels Power’s proposal contained a math extension error; however, this did not
change their total bid amount. After correcting this error, Titan Electric Inc. remains
the apparent low bidder.
The proposal submitted by Wilson Construction Company was incomplete and staff
determined the proposal to be non-responsive.
No. of Bids Solicited: 23
No. of Bids Received: 6
Project Leader & Phone No.: Brian Li Ext. 5161
Estimate: $995,000.00
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Page 3
Public Works Contract Award Recommendation(s) Over $25,000
July 7, 2020 __________________________________________________________________________________________
RFP No. 20-1043-BI
North Stanwood & Sultan Project –
Circuits 12-999 & 115-150 –
Distribution and Transmission
Line Clearance
This contract work consists of providing all labor, materials and equipment necessary to trim, cut, treat,
remove, clear, and dispose of trees and brush, as well as perform application of herbicides under and along
approximately 60 pole miles of the District’s Distribution & Transmission System. The location of the work
to be performed commences at North Stanwood Substation and goes North on Pioneer Hwy to just North of
92nd Avenue NW. The line goes West on 300th Street NW from Pioneer Hwy to 3rd Avenue NE. From 300th
Street NW the line goes North on 76th Avenue NW to 332nd Street NW, North on 68th Avenue NW to 332nd
Street NW and South on 68th Avenue W to 285th Street NW. The line goes West from 68th Avenue West on
324th Street NW to English Grade Road then goes South on Brandstrom Road from 324th Street NW to 300th
Street NW. The Transmission line comes from the Jackson Dam and goes South on the Sultan Basin Road to
Hwy 2. Work is located in the vicinities of Stanwood & Sultan in Snohomish County, Washington.
Contractor Subtotal (tax n/a)
Award To Kemp West, Inc. $694,600.00
Davey Tree Surgery Company $758,340.00
Summary Statement: Staff recommends award to Kemp West, Inc., the low evaluated bidder, in the
amount of $694,600.00, tax n/a.
No. of Bids Solicited: 23
No. of Bids Received: 2
Project Leader & Phone No.: Randy Gusa X5608
Estimate: $660,000.00
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Page 4
Miscellaneous Contract Award Recommendation(s) $200,000 And Over
July 7, 2020 __________________________________________________________________________________________
MISC. CW2241038
Coordination for Rolling Slowdowns
On I-5 in Lynnwood
This contract provides personnel, vehicles, equipment, and coordination with Washington State Patrol to
implement the WSDOT approved traffic control plan for a rolling slowdown on I-5 in Lynnwood. The District
anticipates two separate slowdowns will be required between mid-August and the end of September. This
project is in support of the Sound Transit Light Rail Project.
Vendor Subtotal (w/o tax)
Award To K & D Services, Inc. $226,499.76
Summary Statement: Staff recommends award to K & D Services, Inc. in the amount of $226,499.76,
plus tax.
No. of Bids Solicited: 3
No. of Bids Received: 1
Project Leader & Phone No.: Alex Chorey Ext. 5115
Estimate: $250,000.00
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BUSINESS OF THE COMMISSION
Meeting Date: July 7, 2020 Agenda Item: 3C
TITLE:
Consideration of Certification/Ratification and Approval of District Checks and Vouchers
SUBMITTED FOR: Consent Agenda
General Accounting &Financial Systems Julia Anderson 8027 Department Contact Extension
Date of Previous Briefing: Estimated Expenditure: Presentation Planned
ACTION REQUIRED:
Decision Preparation Incidental Monitoring Report
Policy Discussion (Information)
Policy Decision
Statutory
SUMMARY STATEMENT:
Identify the relevant Board policies and impacts:
Governance Process, Board Job Description: GP-3(4)(B)(2)a non-delegable, statutorily
assigned Board duty to approve vouchers for all warrants issued.
The attached District checks and vouchers are submitted for the Board's certification, ratification
and approval.
List Attachments:
Voucher Listing
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BUSINESS OF THE COMMISSION
Meeting Date: July 7, 2020 Agenda Item: 4A
TITLE:
Consideration of a Motion Accepting the Asset Protection Monitoring Report
SUBMITTED FOR: Items for Individual Consideration
Finance Division/Risk Management Scott Jones/Jim Herrling 8356/8303
Department Contact Extension
Date of Previous Briefing: July 9, 2019
Estimated Expenditure: Presentation Planned
ACTION REQUIRED:
Decision Preparation Incidental Monitoring Report
Policy Discussion (Information)
Policy Decision
Statutory
SUMMARY STATEMENT:
Identify the relevant Board policies and impacts:
Executive Limitation 7 – Asset Protection
List Attachments:
Internal Monitoring Report – Asset Protection (EL-7)
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139/
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BUSINESS OF THE COMMISSION
Meeting Date: July 7, 2020 Agenda Item: 4B
TITLE:
Consideration of a Resolution Approving an Electric Transportation Plan for the District
SUBMITTED FOR: Items for Individual Consideration
Customer and Energy Services Suzanne Frew 1733
Department Contact Extension
Date of Previous Briefing: March 3, 2020
Estimated Expenditure: Presentation Planned
ACTION REQUIRED:
Decision Preparation Incidental Monitoring Report
Policy Discussion (Information)
Policy Decision
Statutory
SUMMARY STATEMENT:
Identify the relevant Board policies and impacts:
Governance Process, Board Job Description: GP-3 non-delegable, statutorily assigned Board
duty
Staff has prepared a high-level strategy and plan for the District’s investment in and incentives for
increasing electric transportation. As the District envisions the utility of the future with greater
integration of distributed energy resources, changing needs of our customers, and growing
decarbonization policies, electric transportation can play a pivotal role in providing a flexible and
manageable load. Partnerships with our customers will be essential to maximize the benefits for
them and the District. If not managed, increasing electric transportation could exacerbate rather
than mitigate power supply and grid management challenges.
Background
As the purveyor of electricity within its service territory, the District has always had the authority
to build infrastructure for the purpose of supporting charging for electric vehicles. Prior to 2019,
it was less clear whether public utility districts had the authority to provide advertising and
outreach and monetary incentives as well as other types of infrastructure to customers to incent
the private development of charging facilities.
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Page 2
In 2019 the legislature clarified the authority of electric utilities, including public utility districts,
to invest in infrastructure and provide outreach and incentives for the electrification of
transportation, with a requirement that the utility’s governing board adopt a formal plan, and that
the utility show that such programs benefit the ratepayers, or at a minimum, do not increase net
costs to ratepayers overall by more than 0.25%. RCW 54.16.430.
The Legislature also recognized that the benefits of transportation electrification programs could
be different for each utility, depending upon its circumstances. Some of the benefits cited by the
legislature include: optimizing the use of electric grid infrastructure, improving the management
of electric loads, better managing the integration of variable renewable energy resources, and cost-
effective energy efficiency, through more efficient use of energy resources, and more efficient use
of the electric delivery system.
The Electric Transportation Plan
The Electric Transportation Plan is a high-level set of strategies and actions designed to overcome
barriers, align with District strategic priorities, such as affordability, support customers, and
optimize the electrical grid. The Plan was developed through a collaborative effort across the
District.
The Plan describes the three key strategies and sets of actions proposed, the types of benefits that
can be realized under the Plan, and the cost/benefit analyses performed by Energy+Environmental
Economics (E3) that quantify the benefits of increasing numbers of electric vehicles to the utility’s
customers.
The Plan sets out its actions at a fairly high-level. The individual programs, pilots, and actions
will be consistent with the framework of the plan, including its economic cost/benefit analysis,
thus giving staff the ability to design the actions that meet current and developing needs.
The District’s progress under the Plan will be shared and discussed with the Board periodically,
and any significant alterations to the Plan based on changes in the economics of transportation
electrification, electric vehicle industry, Board input, and/or the regulatory environment will be
presented to the Board for approval. Similar to the energy efficiency program planning process,
the District’s annual budget will reflect the electric transportation programs for each year.
List Attachments:
Resolution
Exhibit A
Red-lined June 16, 2020, Cover Sheet, Resolution, and Transportation Plan
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RESOLUTION NO. _____
A RESOLUTION Approving an Electric Transportation Plan for the
District
WHEREAS, in 2019, the Washington state legislature clarified the authority of public
utility districts and other electric utilities to invest in infrastructure and to provide outreach and
incentives for the electrification of transportation, provided that the programs and plans do not
increase net costs to ratepayers overall by more than 0.25%; and
WHEREAS, the legislature recognized that the benefits of electric transportation
programs could be different for each utility, depending upon its circumstances, including but
not limited to: optimizing the use of electric grid infrastructure; improving the management of
electric loads; better managing the integration of variable renewable energy resources; cost-
effective energy efficiency through more efficient use of energy resources; and more efficient
use of the electric delivery system; and
WHEREAS, RCW 54.16.430 requires the utility’s governing board to adopt a plan for
the electrification of transportation that considers the benefits for the utility and its customers,
to include some or all of the following: (a) The applicability of multiple options for
electrification of transportation across all customer classes; (b) the impact of electrification on
the district's load, and whether demand response or other load management opportunities,
including direct load control and dynamic pricing, are operationally appropriate; (c) system
reliability and distribution system efficiencies; (d) interoperability concerns, including the
interoperability of hardware and software systems in electrification of transportation proposals;
and (e) overall customer experience; and
WHEREAS, Staff of Public Utility District No. 1 of Snohomish County (the
“District”), through a collaborative team effort that included departments across the District,
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Resolution No. _____ - 2 -
developed an Electric Transportation Plan (the “EV Plan”) that describes a high level set of
strategies and actions designed to overcome barriers to adoption of electric vehicles, support
customers, and optimize the electrical grid, and describes the types of benefits that can be
realized under the Plan; and
WHEREAS, the EV Plan sets the key strategies and actions at a fairly high-level, and
authorizes staff to design individual actions, programs, pilots, and other activities to meet
current and developing needs, provided that such individual actions, programs, pilots, and
other activities are consistent with the EV Plan and authorized within the annual budget
approved for the electric transportation programs for the year; and
WHEREAS, Staff will share and discuss the District’s progress under the EV Plan to
the Board on a periodic basis, and will propose amendments or changes to the EV Plan if there
are significant Board concerns, changes in the economics of transportation electrification, the
electric vehicle industry and/or the regulatory environment; and
WHEREAS, Staff recommends approval and adoption of the EV Plan as being in the
best interest of the District and its customers.
NOW, THEREFORE, BE IT RESOLVED by the Commission of Public Utility District
No. 1 of Snohomish County, Washington, as follows:
1. The Electric Transportation Plan (the “EV Plan”), attached hereto as Exhibit A is
hereby approved and adopted.
2. The District may: (a) make financial payments to customers, developers, owners,
vendors or other entities as incentives; (b) implement programs, pilot programs,
activities, and undertake actions that further the goals of the EV Plan; (c) construct or
authorize construction of electric vehicle charging infrastructure or other work
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Resolution No. _____ - 3 -
necessary for such charging infrastructure; and (d) conduct outreach, education and
advertising activities to further the goals of EV Plan (collectively referred to as the EV
activities).
3. The following limitations apply to the EV activities authorized under Paragraph 2 of
this Resolution: (a) the EV activities must be consistent with the EV Plan, including its
economic cost/benefit analyses; (b) the expenditures for the EV activities must be
authorized in the District’s annual budget; and (c) and the expenditures for the EV
activities do not increase net costs to ratepayers overall by more than 0.25% in any
given year.
4. The CEO/General Manager or his designee shall develop and adopt program plans,
rules, and/or procedures to the extent necessary to implement this Resolution and the
EV Plan, that will include documentation with the standards set forth herein.
PASSED AND APPROVED this 7th day of July, 2020.
President
Vice-President
Secretary
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Electric Transportation PlanJuly 7, 2020
Partnering with our
community to ensure that
customers have the
knowledge they need and
the support they require
while optimizing the grid
for growing electric
transportation needs now
and into the future.
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Table of Contents Executive Summary ......................................................................................................................... 2
Background and Policy .................................................................................................................... 2
Market, Technology and Barriers ................................................................................................ 2
Market ..................................................................................................................................... 3
Technology............................................................................................................................... 4
Barriers .................................................................................................................................... 4
Legislation ................................................................................................................................... 5
Value of Electric Transportation ..................................................................................................... 6
Benefits........................................................................................................................................ 7
E3 Cost/Benefit Analysis.............................................................................................................. 7
Snohomish PUD’s Role Supporting Electric Transportation ........................................................... 9
Key Strategies and Actions .......................................................................................................... 9
Community ............................................................................................................................ 11
Grid ........................................................................................................................................ 12
Adoption ................................................................................................................................ 13
Moving Forward ............................................................................................................................ 15
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Executive Summary As the District envisions the utility of the future with greater integration of distributed energy
resources, changing needs of our customers and growing decarbonization policies, electric
transportation can play a pivotal role in providing a flexible and manageable load. Partnerships
with our customers will be essential to maximize the benefits for them and the District. If not
well managed, increasing electric transportation could exacerbate rather than mitigate power
supply and grid management challenges.
Electric transportation efforts to date have built on three key strategies. This plan reaffirms
those strategies and expands actions developed to overcome barriers, support customers, align
with the District’s strategic priorities, such as affordability, and optimize the electrical grid. The
strategies, developed by a collaborative team from departments across the District and
described later in the document, provide guidance for District actions and policy.
This inaugural Electric Transportation Plan addresses the requirements of SHB 1512, current
business conditions and planned actions. An accompanying resolution is submitted as part of
the approval process. District staff are requesting approval of both the resolution and Electric
Transportation Plan.
Background and Policy The primary purpose of this plan is to outline key strategies for investing in infrastructure for
electric transportation while meeting the legislative requirement for the adoption of an
electrification of transportation plan by the District’s Commissioners before offering incentives.
The District’s plans for its own fleet are not within the scope of this plan.
Market, Technology and Barriers While there are several factors contributing to the challenge of predicting future electric
transportation trends as technology rapidly advances, there is a consensus that electric vehicle
adoption will trend upwards. The timing and size of the upward trend is less certain, especially
with current conditions impacting vehicle production, fuel cost and unemployment.
Adoption rates are being driven by legislative actions, commitments from vehicle and
equipment manufacturers, and consumer demand on a world-wide scale. The electric vehicle
industry has seen steep increases in adoption rates from the advancement of technology and
new entrants such as Tesla which has captured a majority of the market.
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Market Washington State is third in the nation for electric vehicle adoption1 and Snohomish County is
second in Washington State for the number of registered electric vehicles2. Recently,
Snohomish County was identified as one of the top fifteen counties in the nation for electric
vehicle (EV) adoption, at 4.4%, while the national average is 1.9%.3 This presents an
opportunity for the District to support our customers investing in electric transportation and to
shape the charging load to optimize the electrical grid, while keeping rates affordable for our
customers.
The recent legislative adoption of a zero emissions vehicle (ZEV) program, city decarbonization
initiatives, and investments from all vehicle manufacturers are some of the influences
contributing to the upward trend in electric transportation. The impact of these influences has
now extended beyond the light duty vehicle market to adoption of medium duty trucks and
vans for delivery fleets.
Electric Vehicle Market Overview
Sources: www.data.wa.gov , www.epri.com and www.plugshare.com
1 EV Market Share by State 2018 retrieved from www.evadoption.com 2 WA Department of Licensing data for Snohomish County and Camano Island, June 4, 2020 retrieved from www. Data.wa.gov/demographics/electrical-vehicles-by county 3 Electric Power Research Institute 2020 Electric Transportation Update (March 2020) retrieved from www.epri.com
WA 3rd in nation for
EV adoption
6,215 EVs in service territory
EVs will be 55% of car
sales in 2040
130 EV models in
2023
116 public charging locations
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Technology The electric transportation industry is rapidly advancing both vehicle and equipment
technology with consideration for consumer demands and specialized commercial applications.
In response, the electric vehicle manufacturing industry is establishing unprecedented
partnerships between vehicle manufacturers to reduce investment costs and speed the time to
market. One example of this is General Motors’s EV platform and battery integrated into
Honda’s new electric vehicle designs.
The benefit of partnerships between vehicle manufacturers should be realized in 2023 when
over 130 models are expected to be available and half of those vehicles are expected to be
SUVs and cross overs which currently account for a majority of the car sales. Additionally, the
partnerships have extended to commercial vehicles with input from delivery companies on fleet
vehicle design with the Amazon and Rivian partnership. Real world pilot projects include
collaboration with utilities on vehicle and grid interaction as delivery routes are refined for
performance, and charge management strategies are developed to minimize operational costs.
With increasing electrical capacity needs for charging infrastructure, best practices are being
established by utilities nation-wide to achieve diversity factors for vehicle charging to minimize
the impact on utility infrastructure. While standards for light duty chargers have been
established, there is an urgency to develop heavy-duty bus charging standards as this market
continues to grow and has potential for vehicle-to-grid value.
Barriers The three greatest barriers to electric vehicle adoption are awareness of electric vehicles and
charging technology, availability of charging and initial first cost of electric vehicles.
Customer Awareness
Education and awareness continue to be the largest barrier to electric vehicle adoption with
both electric vehicles and charger technology widely unknown and still thought of as emerging.
For consumers, the challenges of finding a reliable source of information and interacting with
knowledgeable sales staff at car dealerships remain. With an increase in availability and
adoption of buses and delivery trucks, fleet managers are sharing and collecting information
from small scale pilots throughout the nation.
Charging Infrastructure
The availability of charging is challenging for all EV owners and especially challenging for multi-
unit dwelling (MUD) residents and renters or homeowners without a garage since a majority of
vehicle charging occurs when the vehicle is parked at the EV owner’s residence. For those EV
owners renting, using nondedicated parking or operating as part of a transportation network
company (TNC – Uber/Lyft), public or workplace charging is essential. Access to charging needs
to be equitably developed for all customers for wide scale EV adoption to occur.
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For commercial customers, the barrier to charging is charger standards and costs. While
several standards for charging have been established for light duty vehicles, charging standards
for heavy duty vehicles and buses are under development and most charging infrastructure is
proprietary. Utilities can play a role to support the build out of charging infrastructure and
inform managed charging strategies for customer fleets to reduce high demand charges.
Electric Vehicle Cost
By 2025, it is predicted that the cost of a new electric vehicle will reach parity with internal
combustion engine (ICE) vehicles. However, due to the past and current volume of electrical
vehicle leases, the secondary market is already at parity or close to parity. Incentives and tax
breaks at the federal, state and manufacturer level can support the adoption of both new and
used electric vehicles. Further support for electric transportation from utilities can include
incentives for charging infrastructure with additional value to all ratepayers from managed
charging.
The recent zero emission vehicle mandate in Washington is expected to bring a wider variety of
electric vehicles to the market if it follows national trends. The mandate extends to medium-
duty trucks as well even though adoption has been limited by viable electric vehicle
alternatives. Buses are the one exception and their adoption rates have been increasing
throughout the world. The full economic benefit has yet to be realized with vehicle-to-grid
technology still in the early stages of development with early indications of significant potential.
Cost is still a barrier and grant funding has subsidized most of the electric buses in the United
States.
Legislation SHB 1512, as passed by the Legislature and signed into law by the Governor in 2019 (codified as
RCW 54.16.430), clarified the authority of consumer owned electric utilities to invest in
infrastructure and provide outreach about and incentives for electric transportation, with a
requirement that the utility demonstrate that such programs benefit the ratepayers, or at a
minimum, do not increase net costs to ratepayers overall by more than 0.25%.
The Legislature also recognized that the benefits of electric transportation programs could be
different for each utility, depending upon its circumstances. Some of the benefits cited by the
legislature include optimizing the use of electric grid infrastructure, improving the management
of electric loads, better managing the integration of variable renewable energy resources, and
cost-effective energy efficiency through more efficient use of energy resources and more
efficient use of the electric delivery system.
The legislature noted that utilities could consider a variety of these types of benefits in
establishing their electrification of transportation plans, including some or all of the following:
(a) The applicability of multiple options for electrification of transportation across all customer
classes;
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(b) the impact of electrification on the district's load, and whether demand response or other
load management opportunities, including direct load control and dynamic pricing, are
operationally appropriate;
(c) system reliability and distribution system efficiencies;
(d) interoperability concerns, including the interoperability of hardware and software systems
in electrification of transportation proposals; and
(e) overall customer experience.
The key strategies and accompanying actions, as described further in the document, support
many of the benefits listed above while providing customer choice and affordable rates.
In the 2019 legislative session, several other bills passed which support the electrification of
transportation and the grid resources required for charging infrastructure. Below is a short
summary of the bills passed in the 2019 legislative session.
• HB 2042, Advancing Green Transportation Adoption, revives some of the tax breaks for
purchasing electric vehicles, and limits the benefit to new vehicles under $45,000 and
used vehicles under $30,000.
• SB 5116, Clean Energy Transformation Act, requires Washington utilities to provide
power free of greenhouse gases by 2045. The bill authorizes the use of utility
infrastructure and systems to maximize the benefits of electric vehicle charging such as
managed charging and vehicle to grid (V2G) capability as alternative compliance options
in the early compliance periods.
• HB 1257, Concerning Energy Efficiency, requires all new building construction projects
with on-site parking to install the electrical wiring to accommodate level 2 vehicle
charging equivalent to the greater of one space or ten percent of the spaces.
In the 2020 legislative session, SB 5811 continued to reinforce Washington’s commitment to
transportation electrification by adopting California’s vehicle emissions standards, including
California’s zero emissions vehicle program. With the passage of this bill, Washington State
became the 12th Zero Emissions Vehicle (ZEV) state.
Value of Electric Transportation Electric transportation provides financial benefits to both the ratepayers and consumers with
additional positive societal impacts; air quality being the most measurable. Widely
documented benefits from electric transportation are noted below.
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Benefits In Washington state, transportation contributes 47%4 of greenhouse gas emissions; the highest
percentage of the four northwest states. Snohomish PUD is uniquely positioned to support
electric transportation with 98% carbon free power resulting in significant reductions in
emissions.
By expediting the transition to electric transportation, both on and off road, the region gains
improvements to air quality and public health. Tailpipe emissions are eliminated with an
electric vehicle and significant greenhouse gas emission reductions can be attributed to
Snohomish PUD’s low carbon power when used for charging.
Electrical vehicle operating and maintenance costs are lower than those for internal
combustion engine (ICE) vehicles. Lower fuel cost and reduced maintenance on electric
vehicles lowers the total cost of ownership. Additional environmental benefits are gained from
fewer mechanical systems with fluids that may leak or need to be disposed of.
Electric vehicle charging can be flexible for many drivers, allowing for improved efficiency of the
electrical grid. Managed charging optimizes the grid and keep rates affordable for all our
customers.
Stronger energy security is gained from power generated here in the Northwest and fueling
electric transportation. Greater adoption of electric vehicles creates less reliance on imported
fuel needed for ICE vehicles.
With the passage of SB 5811 and the adoption of California’s zero emissions vehicle program,
potential benefits associated with electric transportation include the monetization of
environmental attributes associated with carbon reduction in the transportation sector.
E3 Cost/Benefit Analysis In 2016, six Washington utilities contracted with Energy+Environmental Economics (E3)
consulting to identify the impacts and benefits of electric vehicle adoption region wide and four
utilities (Snohomish PUD, Chelan PUD, Tacoma Power and Puget Sound Energy) sponsored an
additional level of detail specific to their own service territory. On a regional basis, the study
calculated a net benefit to all ratepayers, expressed in terms of dollars of benefit per vehicle
class included in the study. However, there were significant differences among utilities and
vehicle classes.
Costs and benefits were calculated for five electrified vehicle segments: 1) personal light-duty
vehicles, 2) taxis and transportation network company (TNC-Uber/Lyft) vehicles, 3) forklifts
(both light-duty and heavy-duty), 4) buses, and 5) parcel delivery trucks. The vehicle segments
were selected based on commercially available electric vehicles at the time of the 2017 study.
4 Building “Good Load” to Reduce Carbon Emissions, Northwest Energy Coalition, JJ McCoy, 2016
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Specific to the District, the net economic benefit to the region over a 20 year period is $83.1
million dollars from personal electric passenger vehicles and the benefit to our ratepayers is
$57 million.5 Electrification of other transportation such as buses, forklifts, transportation
network companies (TNC), and delivery trucks all have a net positive benefit to the region and
our ratepayers. Additional benefit to ratepayers was quantified when vehicle adoption was
combined with managed charging.
Ratepayer Benefit per Electric Vehicle
Source: E3 Report
The analysis further identified load profiles providing the most opportunity, shifting from early
evening peaks to charging during low load hours of late night and very early morning. Early
evening personal vehicle charging coincides with current peak household energy use and a
benefit is seen even with a slight shift in the timing of charging. This benefit to the District’s
ratepayers increases from $57 to $152 million5 by managing personal vehicle charging. Transit,
school buses, and delivery trucks all have the potential to charge during the low load hours of
late night and early morning which could result in further grid optimization.
Additional cost/benefit analysis was provided for delivery trucks, buses, forklifts, and TNC
vehicles with managed charging only considered for buses. The greatest benefit to our
5 Economic and Grid Impacts of Plug-in Electric Vehicle Adoption in Washington and Oregon, March 2017, Energy+Environmental Economics
$1,045
Light Duty
Vehicle
$64,089 benefit Buses with
overnight charging
$1,910 benefit
from TNC vehicle (Uber/
Lyft)
$851 benefit
from Delivery Trucks
$2,537 benefit
from Forklifts
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ratepayers over the 20-year period was per bus at $64,089 and forklifts contribute $2,537 of
benefit followed by ride-share vehicles at $1910 and $851 per delivery truck. While the E3
report determined a relatively small benefit from delivery fleets and did not estimate managed
charging benefits, these fleets have the potential for overnight charging since their operation
usually coincides with business hours.
The E3 study provided an initial analysis of the benefits from several vehicle types commercially
available at the time. Since the report was published, the EV industry has made significant
advancements in vehicles for medium-heavy duty uses and improvements in charging
technology. Accordingly, we are confident that the benefits identified in the 2017 E3 Study are
higher today than they were in 2017. Pilots across the nation testing the optimization of driving
and charging profiles for commercial vehicles, including buses and delivery trucks, will further
inform potential benefit. As opportunities for beneficial electrification are identified within the
service territory, the District will update and expand the cost/benefit analysis for these vehicle
types, applications, and charging management. In the meantime, sufficient benefit information
is documented through the E3 Study to enable the District to move forward with some
incentive programs.
Snohomish PUD’s Role Supporting Electric Transportation The District remains focused on our core business of providing safe, affordable, reliable, and
environmentally sustainable power to the community we serve. As our customers adopt
electric vehicles in greater numbers, we are committed to support and partner with them.
Puget Sound vehicle traffic flows across four utility service territories and consideration was
given to the activities taking place in each of the other three service territories. A few of the
considerations include consistent messaging, vehicle purchasing, charging needs, and delivery
routes. However, similar to nationwide best practices, each utility is unique in its business
structure, customer needs, and grid infrastructure. In nation-wide best practices, transportation
plans include some common themes reflected in this plan while addressing the specific needs
within the utility service territory.
Some differences in Puget Sound utility transportation plans are driven by municipal structure,
investor ownership, high volumes of ride share vehicles, port activity, and long commutes.
There is also the opportunity to learn from the many pilots among northwest utilities given the
collaborative environment. Insights from California are closely followed with the number and
depth of programs funded at over a billion dollars.
Key Strategies and Actions This plan describes three key strategies, that set the groundwork for the District’s support and
participation in the continued growth of electric transportation in Snohomish County and
Camano Island, consistent with the District’s Strategic Priorities. The key strategies and
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associated actions propose solutions to overcome the current barriers and adapt to the rapid
advancement of technology while benefits for all ratepayers are achieved.
Many of the actions described in this plan are established best practices for utilities across the
nation. These actions will inform the development of policies and programs supporting electric
transportation while aligning with the interests of customers, EV owners, local governments,
the state, and manufacturers.
The actions described in this plan are fairly high level. The individual actions, pilots and
programs will be consistent with the framework of this plan, including its economic cost/benefit
analysis, thus giving staff the ability to design the actions that meet current and developing
needs. The District’s progress under the plan will be shared and discussed with the Board
periodically. Any significant alterations to the plan based on changes in the economics of
transportation electrification, electric vehicle industry, Board input, and/or the regulatory
environment will be presented for approval. The Board will approve annually, as part of the
District’s budget, the expected expenditures under the plan.
Key Strategies for Electric Transportation
Build community through outreach and education about electric vehicles
Optimize the grid with transportation electrification
Enable customer adoption of electric transportation
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Community Build community through outreach and education about electric vehicles.
The District has been a trusted energy efficiency advisor to our customers for more than forty
years. We are expanding the role to include electric vehicles and charging infrastructure by
leveraging existing channels in support of electric vehicle adoption. Efforts will focus on general
outreach and education with a targeted effort to those customers with immediate potential for
electric vehicle purchase.
This multi-channel approach creates an opportunity to build consumer confidence, supporting
the benefits from electric transportation, such as affordability, through education and
awareness. These actions will create informed choices for customers on electric vehicle
ownership, fleet electrification, and electric transportation impacts. The District’s established
EV Community of EV owners and interested individuals will be the focal point for participation
in residential focus groups and program participation.
Priorities for a dedicated engagement manager will focus on general outreach to educate
employees, customers, auto dealers, and charging site hosts along with targeted outreach to
fleet customers. In establishing priorities, a variety of resources providing information on light-
duty vehicles were considered and compared to the limited communication on new
developments and pilots for the medium-heavy duty EV sector.
The District’s EV website pages include a quick link from the home page, basic EV information,
several tools to assist in the purchase decision, and a charging locator. This information will be
leveraged into other forms of communication for broad distribution at events, ride and drives,
and other community engagements in the future.
With approximately 80% of electrical vehicles leased6, the secondary vehicle market is ideal for
many buyers due to the lower purchase price than for a comparable internal combustion
engine (ICE) vehicle. However, many of those buyers may not be aware of this opportunity or
considerations when purchasing an electric vehicle. Reaching buyers of vehicles on the
secondary market will be one of the priorities.
Continued improvement and development of additional programs will take place under the
umbrella of the plan consistent with the goals and strategies of this Electric Transportation
Plan. Similar to the District’s Energy Efficiency program planning process, the District’s annual
budget will reflect electric transportation programs for each year.
6 Retrieved from www.myev.com
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Grid Optimize the grid with transportation electrification
The District has an ongoing effort to revise its planning and forecasting models to incorporate a
number of distributed energy resources including electrical vehicles. Further refinement to the
inputs of these models includes county specific data and current national trends. Utilizing these
models with our system planning maps, system constraints have been identified and high-level
heat maps were developed to target available capacity and/or identify areas of further study.
To refine customer data and gain more knowledge about the driving and charging behavior of
our residential electric vehicle owners, we have contracted with FleetCarma and will recruit EV
owners from our established EV Community to participate in the two-year study. The study will
have the additional benefit in the second year to understand the potential for influencing off-
peak charging behavior.
FleetCarma helps utilities understand and manage electric vehicle charging by providing EV
drivers with a plug and play C2 device that is self-installed in the car’s on-board diagnostic
(OBD) port. The anonymized data on driving and charging patterns is provided to the utility for
system planning and customer behavior trends. Additionally, the information can validate
incentives for off-peak charging through the Smart Charge Rewards platform. EV drivers can
access their data through FleetCarma’s app and track any rewards.
Outreach efforts for targeting and establishing partnerships with large electrification load
customers such as private fleets, transit, and the ferry system will focus on planning for
managed charging to optimize the grid and reduce charging peaks to minimize costs for the
customer and ratepayers.
Vehicle-to-grid (V2G) technology is in the early stages of development and has the potential to
be a source of grid services. The District’s Arlington microgrid (late 2020 completion) site will
demonstrate the viability of V2G by testing the functionality and impact on systems and
equipment, including integration with community solar and battery storage.
Continued improvement and development of additional programs will take place under the
umbrella of the plan consistent with the goals and strategies of this Electric Transportation
Plan. Similar to the District’s Energy Efficiency program planning process, the District’s annual
budget will reflect electric transportation programs for each year.
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Adoption Enable customer adoption of electric transportation
The District continues to support adoption of electric vehicles by partnering with our customers
and planning future pilot rate schedules, incentives, and innovative pilots. Strategic customer
partnerships include car dealerships (Nissan and Kia), delivery fleets adopting electric vehicles
(Amazon, UPS and Pepsico) and charging developers (ChargePoint, EVgo, Volta and EnelX).
With AMI technology, more options supporting alternative rates and incentive programs for our
customers will be possible.
Over eighty percent of future residential EV owners plan to charge their vehicles primarily from
their homes, yet only fifty-five percent have their own garage.7 To better understand the needs
and solutions for the multi-unit dwelling (MUD) EV owners, the District is participating in DOE’s
MUD grant with the Center of Sustainable Energy (CSE) which identifies barriers to MUD and
curbside charging with a second phase to demonstrate charging infrastructure innovation.
In recognition of the current high cost of electric transportation, state agencies have issued
several RFPs for grant funding including VW settlement funds, The District has participated in
these as support to customer proposals or as the proposer in partnership with one or more of
our customers. Recently, the District, a municipal customer and a commercial customer were
awarded grants from the Department of Ecology to install fast chargers. Partnerships with grant
funding will be a key structure supporting the build out of EV infrastructure at public,
workplace, and multi-unit dwelling sites to ensure equitable access to EV charging. Further, the
District will explore alternate rate structures, incentives, and managed charging guidelines as
potential solutions to reducing EV charging site operating costs for long term sustainability.
Continued improvement and development of additional programs will take place under the
umbrella of the plan consistent with the goals and strategies of this Electric Transportation
Plan. Similar to the District’s Energy Efficiency program planning process, the District’s annual
budget will reflect electric transportation programs for each year.
7 Accenture Strategy eMobility Value Research, 2019
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Key Strategies and Actions
• Dedicated EV engagement manager
• Equitable access to charging
• Building EV community of Customers
• General outreach and events
• Visible and simple information and tools
Community
• FleetCarma pilot
• EV growth model for system planning
• System impact guidelines for planning
• Arlington Microgrid V2G
• Long term partnerships with large electrification sites
Grid
• Government fleet knowledge sharing
• EV Dealership outreach
• Partnering with delivery fleets
• Engagement with cities' climate change initiatives
• Residential incentive and managed charging pilot
Adoption
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Moving Forward The strategies and actions outlined above prepare the utility for the future when wide-scale
adoption of electric transportation occurs. Planning and actions now will ensure that customer
preferences are met, system upgrades are planned, and customer EV charging has been
influenced to optimize the grid. The key strategies will guide the planning of equitable
opportunities for EV adoption and operational guidelines while providing benefits to all
ratepayers.
The District has well-established processes for energy efficiency which will serve as a guide for
documentation, approval, and implementation of proposed EV customer outreach, programs,
and/or rate schedules. This inaugural plan will be updated as needed with consideration given
to District budgets, market changes, Board input, and/or system impacts at a minimum.
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BUSINESS OF THE COMMISSION
Meeting Date: July 7, 2020 Agenda Item:
TITLE
Consideration of a Resolution Approving an Electric Transportation Plan for the District
SUBMITTED FOR: Briefing and Study Session
Customer and Energy Services Suzanne Frew x1733 Department Contact Extension
Date of Previous Briefing: March 3,2020
Estimated Expenditure: Presentation Planned
ACTION REQUIRED:
Decision Preparation Incidental Monitoring Report
Policy Discussion (Information)
Policy Decision
Statutory
SUMMARY STATEMENT:
Identify the relevant Board policies and impacts:
Governance Process, Board Job Description: GP-3 non-delegable, statutorily assigned Board
duty
Staff has prepared a high-level strategy and plan for the District’s investment in and incentives
for increasing electric transportation. As the District envisions the utility of the future with
greater integration of distributed energy resources, changing needs of our customers, and
growing decarbonization policies, electric transportation can play a pivotal role in providing a
flexible and manageable load. Partnerships with our customers will be essential to maximize the
benefits for them and the District. If not managed, increasing electric transportation could
exacerbate rather than mitigate power supply and grid management challenges.
Background
As the purveyor of electricity within its service territory, the District has always had the authority
to build infrastructure for the purpose of supporting charging for electric vehicles. Prior to 2019,
it was less clear whether public utility districts had the authority to provide advertising and
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Page 2
outreach and monetary incentives as well as other types of infrastructure to customers to incent
the private development of charging facilities.
In 2019 the legislature clarified the authority of electric utilities, including public utility districts,
to invest in infrastructure and provide outreach and incentives for the electrification of
transportation, with a requirement that the utility’s governing board adopt a formal plan, and that
the utility show that such programs benefit the ratepayers, or at a minimum, do not
imposeincrease net costs toon ratepayers in excess of overall by more than 0.25%. RCW
54.16.430.
The Legislature also recognized that the benefits of transportation electrification programs could
be different for each utility, depending upon its circumstances. Some of the benefits cited by the
legislature include: optimizing the use of electric grid infrastructure, improving the management
of electric loads, better managing the integration of variable renewable energy resources, and
cost-effective energy efficiency, through more efficient use of energy resources, and more
efficient use of the electric delivery system.
The Electric Transportation Plan
Through a collaborative team effort by staff from departments across the District, staff have
prepared the draft The Electric Transportation Plan ias a high-level set of strategies and actions
designed to overcome barriers, align with District strategic priorities, such as affordability,
support customers, and optimize the electrical grid. The Plan was developed through a
collaborative effort across the District.
The Plan describes the three key strategies and sets of actions proposed, the types of benefits that
can be realized under the Plan, and the cost/benefit analyses performed by
Energy+Environmental Economics (E3) that quantifyies the benefits of increasing numbers of
electric vehicles to the utility’s customers.
The Plan sets out its actions at a fairly high-level. The individual programs, pilots, and actions
will be consistent with the framework of the plan, including its economic cost/benefit analysis,
thus giving staff the ability to design the actions that meet current and developing needs.
The District’s progress under the Plan will be reportedshared and discussed with the Board
periodically, and any significant alterations to the Plan based on changes in the economics of
transportation electrification, electric vehicle industry, Board input, and/or the regulatory
environment will be presented to the Board for approval. Similar to the energy efficiency
program planning process, the District’s annual budget will reflect the electric transportation
programs for each year.
List Attachments:
Resolution
Electric Transportation Plan
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RESOLUTION NO.
A RESOLUTION Approving an Electric Transportation Plan for the
District.
WHEREAS, in 2019, the Washington state legislature clarified the authority of public
utility districts and other electric utilities to invest in infrastructure and to provide outreach
and incentives for the electrification of transportation, provided that the programs and plans
do not impose aincrease net cost oncosts to ratepayers in excess ofoverall by more than 0.25
percent;%; and
WHEREAS the legislature recognized that the benefits of electric transportation
programs could be different for each utility, depending upon its circumstances, including but
not limited to: optimizing the use of electric grid infrastructure; improving the management
of electric loads; better managing the integration of variable renewable energy resources;
cost-effective energy efficiency through more efficient use of energy resources; and more
efficient use of the electric delivery system; and
WHEREAS, RCW 54.16.430 requires the utility’s governing board to adopt a plan
for the electrification of transportation that considers the benefits for the utility and its
customers, to include some or all of the following: (a) The applicability of multiple options
for electrification of transportation across all customer classes; (b) the impact of
electrification on the district's load, and whether demand response or other load management
opportunities, including direct load control and dynamic pricing, are operationally
appropriate; (c) system reliability and distribution system efficiencies; (d) interoperability
concerns, including the interoperability of hardware and software systems in electrification of
transportation proposals; and (e) overall customer experience; and
WHEREAS Staff of Public Utility District No. 1 of Snohomish County (the
“District”), through a collaborative team effort that included departments across the District,
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Resolution No. - 2 -
developed an Electric Transportation Plan (the “EV Plan”) that describes a high level set of
strategies and actions designed to overcome barriers to adoption of electric vehicles, support
customers, and optimize the electrical grid, and describes the types of benefits that can be
realized under the Plan; and
WHEREAS, the EV Plan sets the key strategies and actions at a fairly high -level, and
authorizes staff to design individual actions, programs, pilots, and other activities to meet
current and developing needs, provided that such individual actions, programs, pilots, and
other activities are consistent with the EV Plan, and authorized within the annual budget
approved for the electric transportation programs for the year; and
WHEREAS, Staff will reportshare and discuss the District’s progress under the EV
Plan to the Board on a periodic basis, and will proposedpropose amendments or changes to
the EV Plan if there are significant Board concerns, changes in the economics of
transportation electrification, the electric vehicle industry and/or the regulatory environment;
and
WHEREAS, Staff recommends approval and adoption of the EV Plan as being in the
best interest of the District and its customers.
NOW, THEREFORE, BE IT RESOLVED by the Commission of Public Utility District
No. 1 of Snohomish County, Washington, as follows:
1. The draft Electric Transportation Plan (the “EV Plan”), attached hereto as Exhibit A is
hereby approved and adopted.
2. The District may: (a) make financial payments to customers, developers, owners,
vendors or other entities as incentives; (b) implement programs, pilot programs,
activities, and undertake actions that further the goals of the EV Plan; (c) construct or
authorize construction of electric vehicle charging infrastructure or other work
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Resolution No. - 3 -
necessary for such charging infrastructure; and (d) conduct outreach, education and
advertising activities to further the goals of EV Plan (collectively referred to as the EV
activities).
3. The following limitations apply to the EV activities authorized under Paragraph 2 of
this Resolution: (a) the EV activities must be consistent with the EV Plan, including its
economic cost/benefit analyses; (b) the expenditures for the EV activities must be
authorized in the District’s annual budget; and (c) and the expenditures for the EV
activities do not createincrease net costs for customers in excess ofto ratepayers overall
by more than 0.25 percent% in any given year.
4. The CEO/General Manager or his designee shall develop and adopt program plans,
rules, and/or procedures to the extent necessary to implement this Resolution and the
EV Plan, that will include documentation with the standards set forth herein.
PASSED AND APPROVED this 16th7th day of JuneJuly, 2020.
President
Vice-President
Secretary
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Electric Transportation PlanJune 16, 2020
July 7, 2020
Partnering with our community to ensure customers have the knowledge they need and the support they require while optimizing the grid for growing electric transportation needs now and into the future.
Partnering with our community to ensure that customers have the knowledge they need and the support they require while optimizing the grid for growing electric transportation needs now and into the future.
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1
Table of Contents Executive Summary ......................................................................................................................... 3
Background and Policy .................................................................................................................... 3
Market, Technology and Barriers ................................................................................................ 3
Market ..................................................................................................................................... 4
Technology............................................................................................................................... 5
Barriers .................................................................................................................................... 5
Legislation ................................................................................................................................... 6
Value of Electric Transportation ..................................................................................................... 7
Benefits........................................................................................................................................ 8
E3 Cost/Benefit Analysis.............................................................................................................. 8
Snohomish PUD’s Role Supporting Electric Transportation ......................................................... 10
Key Strategies and Actions ........................................................................................................ 10
Community ............................................................................................................................ 12
Grid ........................................................................................................................................ 13
Adoption ................................................................................................................................ 14
Moving Forward ............................................................................................................................ 17
Executive Summary ......................................................................................................................... 3
Background and Policy .................................................................................................................... 3
Market, Technology and Barriers ................................................................................................ 3
Market ..................................................................................................................................... 4
Technology............................................................................................................................... 5
Barriers .................................................................................................................................... 5
Legislation ................................................................................................................................... 6
Value of Electric Transportation ..................................................................................................... 7
Benefits........................................................................................................................................ 8
E3 Cost/Benefit Analysis.............................................................................................................. 8
Snohomish PUD’s Role Supporting Electric Transportation ......................................................... 10
Key Strategies and Actions ........................................................................................................ 10
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Community ............................................................................................................................ 12
Grid ........................................................................................................................................ 13
Adoption ................................................................................................................................ 14
Moving Forward ............................................................................................................................ 17
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Executive Summary As the District envisions the utility of the future with greater integration of distributed energy resources, changing needs of our customers and growing decarbonization policies, electric transportation can play a pivotal role in providing a flexible and manageable load. Partnerships with our customers will be essential to maximize the benefitbenefits for them and the District. If not well managed, increasing electric transportation could exacerbate rather than mitigate power supply and grid management challenges.
Electric transportation efforts to date have built on three key strategies. This plan reaffirms those strategies and expands actions developed to overcome barriers, support customers, align with the District’s strategic priorities, such as affordability, and optimize the electrical grid. The strategies, developed by a collaborative team from departments across the District and described later in the document, provide guidance for District actions and policy.
This inaugural Electric Transportation Plan addresses the requirements of SHB 1512, current business conditions and planned actions. An accompanying resolution is submitted as part of the approval process. District staff isare requesting approval of both the resolution and Electric Transportation Plan.
Background and Policy The primary purpose of this plan is to outline key strategies for investing in infrastructure for electric transportation, while meeting the legislative requirement for the adoption of an electrification of transportation plan by the District’s Commissioners before offering incentives. The District’s plans for its own fleet are not within the scope of this plan.
Market, Technology and Barriers While there are several factors contributing to the challenge of predicting future electric transportation trends as technology rapidly advances, there is a consensus that electric vehicle adoption will trend upwards. The timing and volumesize of the upward trend is less certain, especially with current conditions impacting vehicle production, fuel cost and unemployment.
Adoption rates are being driven by legislative actions, commitments from vehicle and equipment manufacturers, and consumer demand on a world-wide scale. The electric vehicle industry has seen steep increases in adoption rates from the advancement of technology and new entrants such as Tesla, who which has captured a majority of the market.
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Market Washington State is third in the nation for electric vehicle adoption1 and Snohomish County is second in Washington State for the number of registered electric vehicles2. Recently, Snohomish County was identified as one of the top fifteen counties in the nation for electric vehicle (EV) adoption, at 4.4%, while the national average is 1.9%.3 This presents an opportunity for the District to support our customers investing in electric transportation and to shape the charging load to optimize the electrical grid, while keeping rates affordable for our customers.
The recent legislative adoption of a zero emissions vehicle (ZEV) program, city decarbonization initiatives, and investments from all vehicle manufacturers are some of the influences contributing to the upward trend in electric transportation. The impact of these influences has now extended beyond the light duty vehicle market to adoption of medium duty trucks and vans for delivery fleets.
Electric Vehicle Market Overview
Sources: www.data.wa.gov , www.epri.com and www.plugshare.com
1 EV Market Share by State 2018 retrieved from www.evadoption.com 2 WA Department of Licensing data for Snohomish County and Camano Island, June 4, 2020 retrieved from www. Data.wa.gov/demographics/electrical-vehicles-by county 3 Electric Power Research Institute 2020 Electric Transportation Update (March 2020) retrieved from www.epri.com
WA 3rd in nation for
EV adoption
6,215 EVs in service territory
EVs will be 55% of car
sales in 2040
130 EV models in
2023
116 public charging locations
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Technology The electric transportation industry is rapidly advancing both vehicle and equipment technology with consideration for consumer demands and specialized commercial applications. In response, the electric vehicle manufacturing industry is establishing unprecedented partnerships between vehicle manufacturers to reduce investment costs and speed the time to market. One example of this is General Motors’s EV platform and battery integrated into Honda’s new electric vehicle designs.
The benefit of partnerships between vehicle manufacturers should be realized in 2023 when over 130 models are expected to be available and half of those vehicles are expected to be SUVs and cross overs which currently account for a majority of the car sales. Additionally, the partnerships have extended to commercial vehicles with input from delivery companies on fleet vehicle design with the Amazon and Rivian partnership. Real world pilot projects include collaboration with utilities on vehicle and grid interaction as delivery routes are refined for performance, and charge management strategies are developed to minimize operational costs.
With increasing electrical capacity needs for charging infrastructure, best practices are being established by utilities nation-wide to achieve diversity factors for vehicle charging in an effort to minimize the impact on utility infrastructure. While standards for light duty chargers have been established, there is an urgency to develop heavy-duty bus charging standards as this market continues to grow and has potential for vehicle -to -grid value.
Barriers The three greatest barriers to electric vehicle adoption are awareness of electric vehicles and charging technology, availability of charging and initial first cost of electric vehicles.
Customer Awareness Education and awareness continue to be the largest barrier to electric vehicle adoption with both electric vehicles and charger technology widely unknown and still thought of as emerging. For consumers, the challenges of finding a reliable source of information and interacting with knowledgeable sales staff at car dealerships remain. With an increase in availability and adoption of buses and delivery trucks, fleet managers are sharing and collecting information from small scale pilots throughout the nation.
Charging Infrastructure The availability of charging is challenging for all EV owners and especially challenging for multi-unit dwelling (MUD) residents and renters or homeowners without a garage since a majority of vehicle charging occurs when the vehicle is parked at the EV owner’s residence. For those EV owners renting, using nondedicated parking or operating as part of a transportation network company (TNC – Uber and /Lyft), public or workplace charging is essential. Access to charging needs to be equitably developed for all customers for wide scale EV adoption to occur.
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For commercial customers, the barrier to charging is charger standards and costs. While several standards for charging have been established for light duty vehicles, charging standards for heavy duty vehicles and buses isare under development and most charging infrastructure is proprietary. Utilities can play a role to support the build out of charging infrastructure and inform managed charging strategies for customer fleets to reduce high demand charges.
Electric Vehicle Cost By 2025, it is predicted that the cost of a new electric vehicle will reach parity with internal combustion engine (ICE) vehicles. However, due to the past and current volume of electrical vehicle leases, the secondary market is already at parity or close to parity. Incentives and tax breaks at the federal, state and manufacturer level can support the adoption of both new and used electric vehicles. Further support for electric transportation from utilities can include incentives for charging infrastructure with additional value to all ratepayers from managed charging.
The recent zero emission vehicle mandate in Washington is expected to bring a wider variety of electric vehicles to the market if it follows national trends. The mandate extends to medium-duty trucks as well even though adoption has been limited by viable electric vehicle alternatives. Buses are the one exception and their adoption rates have been increasing throughout the world. The full economic benefit has yet to be realized with vehicle -to -grid technology still in the early stages of development with early indications of significant potential. Cost is still a barrier and grant funding has subsidized most of the electric buses in the United States.
Legislation SHB 1512, as passed by the Legislature and signed into law by the Governor in 2019 (codified as RCW 54.16.430), clarified the authority of consumer owned electric utilities to invest in infrastructure and provide outreach about and incentives for electric transportation, with a requirement that the utility demonstrate that such programs benefit the ratepayers, or at a minimum, do not imposeincrease net costs onto ratepayers in excess ofoverall by more than 0.25 percent.%.
The Legislature also recognized that the benefits of electric transportation programs could be different for each utility, depending upon its circumstances. Some of the benefits cited by the legislature include: optimizing the use of electric grid infrastructure, improving the management of electric loads, better managing the integration of variable renewable energy resources, and cost-effective energy efficiency, through more efficient use of energy resources, and more efficient use of the electric delivery system.
The legislature noted that utilities could consider a variety of these types of benefits in establishing their electrification of transportation plans, including some or all of the following:
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(a) The applicability of multiple options for electrification of transportation across all customer classes;
(b) the impact of electrification on the district's load, and whether demand response or other load management opportunities, including direct load control and dynamic pricing, are operationally appropriate;
(c) system reliability and distribution system efficiencies;
(d) interoperability concerns, including the interoperability of hardware and software systems in electrification of transportation proposals; and
(e) overall customer experience.
The key strategies and accompanying actions, as described further in the document, support many of the benefits listed above while providing customer choice and affordable rates.
In the 2019 legislative session, several other bills passed which support the electrification of transportation and the grid resources required for charging infrastructure. Below is a short summary of the bills passed in the 2019 legislative session.
• HB 2042, Advancing Green Transportation Adoption, revives some of the tax breaks for purchasing electric vehicles, and limits the benefit to new vehicles under $45,000 and used vehicles under $30,000.
• SB 5116, Clean Energy Transformation Act, requires Washington utilities to provide power free of greenhouse gases by 2045. The bill authorizes the use of utility infrastructure and systems to maximize the benefits of electric vehicle charging such as managed charging and vehicle to grid (V2G) capability as alternative compliance options in the early compliance periods.
• HB 1257, Concerning Energy Efficiency, requires all new building construction projects with on-site parking to install the electrical wiring to accommodate level 2 vehicle charging equivalent to the greater of one space or ten percent of the spaces.
In the 2020 legislative session, SB 5811 continued to reinforce Washington’s commitment to transportation electrification by adopting California’s vehicle emissions standards, including California’s zero emissions vehicle program. With the passage of this bill, Washington State became the 12th Zero Emissions Vehicle (ZEV) state.
Value of Electric Transportation Electric transportation provides financial benefits to both the ratepayers and consumers with additional positive societal impacts with; air quality being the most measurable. Widely documented benefits from electric transportation are noted below.
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Benefits In Washington state, transportation contributes forty-seven percent47%4 of greenhouse gas emissions; the highest percentage of the four northwest states. Snohomish PUD is uniquely positioned to support electric transportation with 98% carbon free power resulting in significant reductions in emissions.
By expediting the transition to electric transportation, both on and off road, the region gains improvements to air quality and public health are gained. Tailpipe emissions are eliminated with an electric vehicle and significant greenhouse gas emission reductions can be attributed to Snohomish PUD’s low carbon power when used for charging.
Electrical vehicle operating and maintenance costs are lower than those for internal combustion engine (ICE) vehicles. Lower fuel cost and reduced maintenance on electric vehicles lowers the total cost of ownership. Additional environmental benefits are gained from fewer mechanical systems with fluids that may leak or need to be disposed of.
Electric vehicle charging can be flexible for many drivers which allows, allowing for improved efficiency of the electrical grid. Managed charging optimizes the grid and keep rates affordable for all of our customers.
Stronger energy security is gained from power generated here in the northwestNorthwest and fueling electric transportation. Greater adoption of electric vehicles creates less reliance on imported fuel needed for ICE vehicles.
With the passage of SB 5811 and the adoption of California’s zero emissions vehicle program, potential benefits associated with electric transportation include the monetization of environmental attributes associated with carbon reduction in the transportation sector.
E3 Cost/Benefit Analysis In 2016, six Washington utilities contracted with Energy+Environmental Economics (E3) consulting to identify the impacts and benefits of electric vehicle adoption region wide and four utilities (Snohomish PUD, Chelan PUD, Tacoma Power and Puget Sound Energy) sponsored an additional level of detail specific to their own service territory. On a regional basis, the study calculated a net benefit to all ratepayers, expressed in terms of dollars of benefit per vehicle class included in the study. However, there were significant differences betweenamong utilities and vehicle classes.
Costs and benefits were calculated for five electrified vehicle segments: 1) personal light-duty vehicles, 2) taxis and transportation network company (TNC-Uber/Lyft) vehicles, 3) forklifts (both light-duty and heavy-duty), 4) buses, and 5) parcel delivery trucks. The vehicle segments were selected based on commercially available electric vehicles at the time of the 2017 study.
4 Building “Good Load” to Reduce Carbon Emissions, Northwest Energy Coalition, JJ McCoy, 2016
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Specific to the District, the net economic benefit to the region over a 20 year period is $83.1 million dollars from personal electric passenger vehicles and the benefit to our ratepayers is $57 million.5 Electrification of other transportation such as buses, forklifts, transportation network companies (TNC)), and delivery trucks all have a net positive benefit to the region and District customersour ratepayers. Additional benefit to ratepayers was quantified when vehicle adoption was combined with managed charging.
Ratepayer Benefit per Electric Vehicle
Source: E3 Report
The analysis further identified load profiles providing the most opportunity, shifting from early evening peaks to charging during low load periodshours of late night and very early morning. Early evening personal vehicle charging coincides with current peak household energy use and a benefit is seen even with a slight shift in the timing of charging. This benefit to the District’s ratepayers increases from $57 to $152 million5 by managing personal vehicle charging. Transit, school buses, and delivery trucks all have the potential to charge during the low load hours of late night and early morning which could result in further grid optimization.
Additional cost/benefit analysis was provided for delivery trucks, buses, forklifts, and TNC vehicles with managed charging only considered for buses. The greatest benefit to theour
5 Economic and Grid Impacts of Plug-in Electric Vehicle Adoption in Washington and Oregon, March 2017, Energy+Environmental Economics
$1,045Light Duty
Vehicle
$64,089 benefit Buses with
overnight charging
$1,910 benefit
from TNC vehicle (Uber/
Lyft)
$851 benefit
from Delivery Trucks
$2,537 benefit
from Forklifts
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ratepayers over the 20-year period was per bus at $64,089 and forklifts contribute $2,537 of benefit followed by ride-share vehicles at $1910 and $851 per delivery truck. While the E3 report determined a relatively small benefit from delivery fleets and did not estimate managed charging benefits, these fleets have the potential for overnight charging since their operation usually coincides with business hours.
The E3 study provided an initial analysis of the benefits from several vehicle types commercially available at the time. Since the report was published, the EV industry has made significant advancements in vehicles for medium-heavy duty uses and improvements in charging technology. Accordingly, we are confident that the benefits identified in the 2017 E3 Study are higher today than they were in 2017. Pilots across the nation testing the optimization of driving and charging profiles for commercial vehicles, including buses and delivery trucks, will further inform potential benefit. As opportunities for beneficial electrification are identified within the service territory, the District will update and expand the cost /benefit analysis for these vehicle types, applications, and charging management. In the meantime, sufficient benefit information is documented through the E3 Study to enable the District to move forward with some incentive programs.
Snohomish PUD’s Role Supporting Electric Transportation The District remains focused on our core business of providing safe, affordable, reliable, and environmentally sustainable power to the community we serve. As our customers adopt electric vehicles in greater numbers, we are committed to support and partner with them.
Puget Sound vehicle traffic flows across four utility service territories and consideration was given to the activities taking place in each of the other three service territories. A few of the considerations include consistent messaging, vehicle purchasing, charging needs, and delivery routes. However, similar to nationwide best practices, each utility is unique in its business structure, customer needs, and grid infrastructure. In nation-wide best practices, transportation plans include some common themes reflected in this plan while addressing the specific needs within the utility service territory.
Some differences in Puget Sound utility transportation plans are driven by municipal structure, investor ownership, high volumes of ride share vehicles, port activity, and long commutes. There is also the opportunity to learn from the many pilots among northwest utilities given the collaborative environment. Insights from California are closely followed with the number and depth of programs funded at over a billion dollars.
Key Strategies and Actions This plan describes three key strategies, that set the groundwork for the District’s support and participation in the continued growth of electric transportation in Snohomish County and
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Camano Island, consistent with the District’s strategic priorities.Strategic Priorities. The key strategies and associated actions propose solutions to overcome the current barriers and adapt to the rapid advancement of technology while benefits for all ratepayers are achieved.
Many of the actions described in this plan are established best practices for utilities across the nation. These actions will inform the development of policies and programs supporting electric transportation while aligning with the interests of customers, EV owners, local governments, the state, and manufacturers.
The actions described in this plan are fairly high level. The individual actions, pilots and programs will be consistent with the framework of this plan, including its economic cost/benefit analysis, thus giving staff the ability to design the actions that meet current and developing needs. The District’s progress under the plan will be reported toshared and discussed with the Board periodically, any. Any significant alterations to the plan based on changes in the economics of transportation electrification, electric vehicle industry, Board input, and/or the regulatory environment will be presented for approval, and the. The Board will approve annually, as part of the District’s budget, the expected expenditures under the plan.
Key Strategies for Electric Transportation
Build community through outreach and education of electric vehicles
Optimize the grid with transportation electrification
Enable customer adoption of electric transportation
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Community Build community through outreach and education ofabout electric vehicles.
The District has been a trusted energy efficiency advisor to our customers for more than 40forty years. We are expanding the role to include electric vehicles and charging infrastructure by leveraging existing channels in support of electric vehicle adoption. Efforts will focus on general outreach and education with a targeted effort to those customers with immediate potential for electric vehicle purchase.
This multi-channel approach creates an opportunity to build consumer confidence, supporting the benefits from electric transportation, such as affordability, through education and awareness. These actions will create informed choices for customers on electric vehicle ownership, fleet electrification, and electric transportation impacts. The District’s established EV Community of EV owners and interested individuals will be the focal point for participation in residential focus groups and program participation.
Priorities for a dedicated engagement manager will focus on general outreach to educate employees, customers, auto dealers, and charging site hosts along with targeted outreach to fleet customers. In establishing priorities, thea variety of resources providing information on light-duty vehicles were considered and compared to the limited communication on new developments and pilots for the medium-heavy duty EV sector.
Build community through outreach and education about electric vehicles
Optimize the grid with transportation electrification
Enable customer adoption of electric transportation
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The District’s EV website pages include a quick link from the home page, basic EV information, a number ofseveral tools to assist in the purchase decision, and a charging locator. This information will be leveraged into other forms of communication for broad distribution at events, ride and drives, and other community engagements in the future.
With approximately 80% of electrical vehicles leased6, the secondary vehicle market is ideal for many buyers due to the lower purchase price than for a comparable internal combustion engine (ICE) vehicle. However, many of those buyers may not be aware of this opportunity or considerations when purchasing an electric vehicle. Reaching buyers of vehicles on the secondary market will be one of the priorities.
Continued improvement and development of additional programs will take place under the umbrella of the plan consistent with the goals and strategies of this Electric Transportation Plan. Similar to the energy efficiencyDistrict’s Energy Efficiency program planning process, the District’s annual budget will reflect electric transportation programs for each year.
Grid Optimize the grid with transportation electrification
The District has an ongoing effort to revise its planning and forecasting models to incorporate a number of distributed energy resources including electrical vehicles. Further refinement to the inputs of these models includes county specific data and current national trends. Utilizing these models with our system planning maps, system constraints have been identified and high-level heat maps were developed to target available capacity and/or identify areas of further study.
To refine customer data and gain more knowledge about the driving and charging behavior of our residential electric vehicle owners, we have contracted with FleetCarma and will recruit EV owners from our established EV Community to participate in the two-year study. The study will have the additional benefit in the second year to understand the potential for influencing off -peak charging behavior.
FleetCarma helps utilities understand and manage electric vehicle charging by providing EV drivers with a plug and play C2 device that is self-installed in the car’s on-board diagnostic (OBD) port. The anonymized data on driving and charging patterns is provided to the utility for system planning and customer behavior trends. Additionally, the information can validate incentives for off -peak charging through the Smart Charge Rewards platform. EV drivers can access their data through FleetCarma’s app and track any rewards.
6 Retrieved from www.myev.com
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Outreach efforts for targeting and establishing partnerships with large electrification load customers such as private fleets, transit, and the ferry system will focus on planning for managed charging to optimize the grid and reduce charging peaks to minimize costs for the customer and ratepayers.
Vehicle -to -grid (V2G) technology is in the early stages of development and has the potential to be a source of grid services. The District’s Arlington microgrid (late 2020 completion) site will demonstrate the viability of V2G by testing the functionality and impact on systems and equipment, including integration with community solar and battery storage.
Continued improvement and development of additional programs will take place under the umbrella of the plan consistent with the goals and strategies of this Electric Transportation Plan. Similar to the energy efficiencyDistrict’s Energy Efficiency program planning process, the District’s annual budget will reflect electric transportation programs for each year.
Adoption Enable customer adoption of electric transportation
The District continues to support adoption of electric vehicles by partnering with our customers and planning future pilot rate schedules, incentives, and innovative pilots. Strategic customer partnerships include car dealerships (Nissan and Kia), delivery fleets adopting electric vehicles (Amazon, UPS and Pepsico) and charging developers (ChargepointChargePoint, EVgo, Volta and EnelX). With our investment in AMI technology, more options supporting alternative rates and incentive programs for our customers will be possible.
Over eighty percent of future residential EV owners plan to charge their vehicles primarily from their homes. Yet, yet only fifty-five percent have their own garage.7 To better understand the needs and solutions for the multi-unit dwelling (MUD) EV owners, the District is participating in DOE’s MUD grant with the Center of Sustainable Energy (CSE) which identifies barriers to MUD and curbside charging with a second phase to demonstrate charging infrastructure innovation.
In recognition of the current high cost of electric transportation, state agencies have issued a number ofseveral RFPs for grant funding including VW settlement funds, The District has participated in these as support to customer proposals or as the proposer in partnership with one or more of our customers. Recently, the District, a municipal customer and a commercial customer were awarded grants from the Department of Ecology to install fast chargers.
7 Accenture Strategy eMobility Value Research, 2019
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Partnerships with grant funding will be a key structure supporting the build out of EV infrastructure at public, workplace, and multi-unit dwelling sites to ensure equitable access to EV charging. Further, the District will explore alternate rate structures, incentives, and managed charging guidelines as potential solutions to reducing EV charging site operating costs for long term sustainability.
Continued improvement and development of additional programs will take place under the umbrella of the plan consistent with the goals and strategies of this Electric Transportation Plan. Similar to the energy efficiencyDistrict’s Energy Efficiency program planning process, the District’s annual budget will reflect electric transportation programs for each year.
Key Strategies and Actions
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• Dedicated EV engagement manager• Equitable access to charging• Building EV community of Customers• General outreach and events• Visible and simple information and tools
Community
• FleetCarma pilot• EV growth model for system planning• System impact guidelines for planning• Arlington Microgrid V2G• Long term partnerships with large electrification
sites
Grid
• Government fleet knowledge sharing• EV Dealership outreach• Partnering with delivery fleets• Engagement with city climate change initiatives• Residential incentive and managed charging pilot
Adoption
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Moving Forward The strategies and actions outlined above prepare the utility for the future when wide -scale adoption of electric transportation occurs. The planningPlanning and actions now will ensure that customer preferences are met, system upgrades are planned, and customer EV charging
• Dedicated EV engagement manager• Equitable access to charging• Building EV community of Customers• General outreach and events• Visible and simple information and tools
Community
• FleetCarma pilot• EV growth model for system planning• System impact guidelines for planning• Arlington Microgrid V2G• Long term partnerships with large electrification
sites
Grid
• Government fleet knowledge sharing• EV Dealership outreach• Partnering with delivery fleets• Engagement with cities' climate change initiatives• Residential incentive and managed charging pilot
Adoption
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has been influenced to optimize the grid. The key strategies will guide the planning of equitable opportunities for EV adoption and operational guidelines while providing benefits to all ratepayers.
The District has well-established processes for energy efficiency which will serve as a guide for documentation, approval, and implementation of proposed EV customer outreach, programs, and/or rate schedules. This inaugural plan will be updated as needed with consideration given to District budgets, market changes, Board input, and/or system impacts at a minimum.
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BUSINESS OF THE COMMISSION
Meeting Date: July 7, 2020 Agenda Item: 4C
TITLE:
Consideration of a Resolution Authorizing the Assistant General Manager, Customer and Energy
Services, to Execute a Master Energy Savings Administration Agreement with Puget Sound
Energy, Inc. to Establish a Joint Program in Which the District and PSE Could Purchase Energy
Savings from Each Other and Engage in Mutually Agreed upon Marketing Activities to Promote
Energy Savings Measures in the District’s Service Territory
SUBMITTED FOR: Items for Individual Consideration
Energy Services Suzanne Oversvee 8291
Department Contact Extension
Date of Previous Briefing: June 16, 2020
Estimated Expenditure: Presentation Planned
ACTION REQUIRED:
Decision Preparation Incidental Monitoring Report
Policy Discussion (Information)
Policy Decision
Statutory
SUMMARY STATEMENT:
Identify the relevant Board policies and impacts:
Governance Process, Board Job Description, GP-3(4)(E)(1), a non-delegable statutorily
assigned Board Duty
The District is the sole electricity provider to Snohomish County and Camano Island (“District’s
Service Territory”). Within the District’s Service Territory, Puget Sound Energy, Inc. (“PSE”) is
the primary natural gas provider. The District and PSE separately conduct energy conservation
activities in the District’s Service Territory that sometimes generates a certain amount of
unutilized energy savings that could be of value to the other utility.
District and PSE staff have met and discussed ways to collaborate and coordinate their efforts
with respect to energy conservation activities in the District’s Service Territory to deliver energy
savings to their customers through streamlined offerings and utilize each other’s unutilized
energy savings. The result of these discussions is a tentative agreement (“Agreement”) that sets
forth the terms and conditions and the respective right and responsibilities of the District and
PSE in connection with such coordinated effort. The Agreement would establish a joint program
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in which the District and PSE could purchase unutilized energy savings from each other, and the
parties would independently and cooperatively engage in mutually agreed upon marketing
activities to promote energy savings measures in the District’s Service Territory.
RECOMMENDATIONS/FUTURE ACTIONS:
Staff recommends the that the District Board of Commissioners pass the attached resolution
authorizing execution of the Master Energy Savings Administration Agreement with PSE.
List Attachments:
Resolution
Exhibit A
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RESOLUTION NO. _____
A RESOLUTION Authorizing the Assistant General Manager,
Customer and Energy Services, to Execute a Master Energy
Savings Administration Agreement with Puget Sound Energy, Inc.
to Establish a Joint Program in Which the District and PSE Could
Purchase Energy Savings from Each Other and Engage in
Mutually Agreed upon Marketing Activities to Promote Energy
Savings Measures in the District’s Service Territory
WHEREAS, the District is the sole electricity provider to Snohomish County and
Camano Island (“District’s Service Territory”); and
WHEREAS, within the District’s Service Territory, Puget Sound Energy, Inc.
(“PSE”) is the primary natural gas provider; and
WHEREAS, both the District and PSE conducts energy conservation activities in the
District’s Service Territory; and
WHEREAS, there is an opportunity for the District and PSE to collaborate and
coordinate their efforts with respect to energy conservation activities and deliver additional
energy savings to their customers; and
WHEREAS, staff from the District and PSE have negotiated a tentative agreement
(“Master Energy Savings Administration Agreement” or “Agreement”) that sets forth the
terms and conditions and the respective right and responsibilities of the District and PSE in
connection with such coordinated effort, a copy of which is attached hereto as Exhibit “A”;
and
WHEREAS, the Agreement would establish a joint program in which the District and
PSE could purchase energy savings from each other, and the parties would independently and
cooperatively engage in mutually agreed upon marketing activities to promote energy
savings measures in the District’s Service Territory; and
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Resolution No. _____ - 2 -
WHEREAS, District staff respectfully recommend and request that the Board of
Commissioners authorize execution of the Agreement; and
WHEREAS, the Commission finds that it is in the best interest of the District and its
ratepayers to authorize execution of the Master Energy Savings Administration Agreement
with PSE.
NOW, THEREFORE, BE IT RESOLVED by the Commission of Public Utility
District No. 1 of Snohomish County that the Assistant General Manager, Customer and
Energy Services, or her designee, is authorized to execute a Master Energy Savings
Administration Agreement with Puget Sound Energy, Inc. in a form substantially similar to
that attached hereto as Exhibit A for the establishment and implementation of a joint program
in which the District and PSE could purchase energy savings from each other, and engage in
mutually agreed upon marketing activities to promote energy savings measures in the
District’s Service Territory; provided that the final form of said Agreement shall be subject to
the review and approval of the District’s General Counsel or her designee.
PASSED AND APPROVED this 7th day of July, 2020.
President
Vice-President
Secretary
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Attachment A – DRAFT MASTER ENERGY SAVINGS ADMINISTRATION AGREEMENT THIS MASTER ENERGY SAVINGS ADMINISTRATION AGREEMENT (“Agreement”) is entered into as of __________, 2020 (the “Effective Date”) by and between PUBLIC UTILITY DISTRICT NO. 1 OF SNOHOMISH COUNTY (“District”), a municipal corporation organized under the laws of Washington State, and PUGET SOUND ENERGY, INC., a corporation organized under the laws of Washington State (“PSE”). The District and PSE are sometimes referred to herein individually as “Party” and collectively as “Parties.”
WHEREAS, the District is the sole electricity provider to Snohomish County and Camano Island (“District’s Service Territory”).
WHEREAS, within the District’s service territory, PSE is the primary natural gas provider.
WHEREAS, each Party conducts energy conservation activities in the District’s service territory that have potential to generate energy savings for both Parties and their customers.
WHEREAS, there is an opportunity for the Parties to coordinate their efforts with respect to energy conservation activities and deliver additional energy savings, and the Parties wish to set forth the terms and conditions and the respective right and responsibilities of the Parties in connection with such coordinated effort.
NOW, THEREFORE, the Parties agree as follows:
ARTICLE I. PURPOSE
The Purpose of this Agreement is to establish a joint program (“Program”) in which each Party hereunder may contract for the purchase of energy savings, and in which the Parties will independently and cooperatively engage in mutually agreed upon marketing activities to promote energy savings measures in the District’s Service Territory.
ARTICLE II. SCOPE OF WORK
A. The Parties will coordinate the purchase and delivery of energy savings and related services in accordance with the Scope of Work No. 1 attached hereto as Exhibit A and incorporated herein by this reference, and the terms and conditions of this Agreement.
B. The Parties may add additional scopes of work to be governed by the terms and conditions of the Agreement at any time by mutually executing an additional scope of work. Each scope of work will be numbered sequentially (i.e., Scope of Work No. 1, Scope of Work No. 2, and so on). Each scope of work attached hereto is referred to herein as a “Scope of Work” or “SOW.”
C. This Agreement sets forth the terms that apply to Scope of Work No. 1 and each subsequent SOW. Each SOW is subject to the terms and conditions of this Agreement, and is incorporated herein by reference. In the event of any conflict or inconsistency between the terms or conditions of this Agreement and any provision in a Scope of Work, the Agreement shall control unless such term or condition is explicitly superseded in the applicable Scope of Work.
D. Neither Party will become obligated in any way to the other Party hereunder for a new Scope of Work until both Parties execute and deliver a Scope of Work referencing the terms of this Agreement.
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ARTICLE III. INDEPENDENT CONTRACTOR
A. Each Party understands and expressly agrees that the other Party is an independent contractor in the performance of each and every part of this Agreement. Each Party expressly represents that its status as an independent contractor in the performance of the work and services required under this Agreement is consistent with and meets the six-part independent contractor test set forth in RCW 51.08.195. Each Party, as an independent contractor, assumes the entire responsibility for carrying out and accomplishing the services required of it under this Agreement. Each Party shall make no claim of employment with the other Party nor shall claim any related employment and/or retirement benefits
B. Each Party shall be solely responsible for paying its own taxes, deductions, and assessments, including but not limited to utility taxes, B&O taxes, federal income tax, FICA, social security tax, assessments for unemployment and industrial injury, and other deductions from income which may be required by law or assessed against it as a result of this Agreement.
C. Except as set forth in a SOW, each Party hereunder will be responsible for any and all state and local sales or use taxes which may be payable or collectible in connection with this Agreement.
ARTICLE IV. TERM AND TERMINATION
The term of this Agreement shall commence on __________, 2020 and shall terminate at midnight, ____, 20__, unless sooner terminated by either Party. Either Party may terminate this Agreement, or any individual Scope of Work under this Agreement, at any time by giving the other Party thirty (30) days’ written notice of such termination.
ARTICLE V. COMPENSATION AND PAYMENT
A. Subject to the terms and conditions of this Agreement, each Party shall pay the other for the purchase and delivery of energy savings as described in the applicable Scope of Work.
B. The District’s total cost for all work performed by PSE under this Agreement, to the extent authorized in any Scope of Work defined under this agreement, shall not exceed Two Million Dollars ($2,000,000.00). Each Party shall pay the other Party within thirty (30) days after receipt and approval of invoices.
ARTICLE VI. CONTROL AND APPROVAL
A. Each Party shall appoint a Program Leader who will be in charge of the Program and have authority to make decisions on behalf of such Party. The initial Program Leaders for this Program will be:
PSE:
Name:
Title:
Mailing Address:
City, State, Zip:
Phone Number:
Email Address:
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DISTRICT:
Name:
Title:
Mailing Address:
City, State, Zip:
Phone Number:
Email Address:
Each Party shall provide the other with written notice in the event it changes its Program Leader.
ARTICLE VII. PUBLIC RECORDS AND AUDIT RIGHTS
A. The District is subject to Washington’s Public Records Act, Chapter 42.56 RCW (“Act”), and the Act defines “public record” very broadly. Any records or documents, including electronic records, relating to or arising out of this Agreement are potentially subject to that Act unless a valid exception applies.
B. Public Records, including this Agreement, may be required to be made available for inspection or copying if a request to do so is received by the District. Prior to disclosing any information regarding PSE or the Program, the District’s Public Records Officer will notify PSE of the request and the information requested. If PSE financial, commercial or proprietary information has been requested, District will comply with the obligations set forth in Article XIV below.
C. Any such request received by PSE, including oral requests, must be referred to the District’s Public Records Officer immediately so that the District may acknowledge the request within five (5) business days of receipt. PSE shall not make Public Records available to anyone requesting them unless authorized to do so by the District.
D. PSE must retain all Public Records for a period of at least six (6) years following completion of the Agreement. As an alternative to retaining Public Records after the conclusion of the Agreement, PSE may deliver such Records to the District in a format compatible with District records retention and retrieval systems. At or following the conclusion of the six-year period, PSE must notify the District if it intends to destroy any Public Records, and provide the District the option to retain such records in lieu of destruction.
E. During this Agreement and for two years thereafter, each Party and its agents shall have the right to inspect and to perform audits of the other Party’s records pertaining to this Agreement, provided, however, that nothing hereunder shall allow a Party to inspect or obtain copies of proprietary information of the other Party.
F. Each Party shall make records available as required by this Article without charge to the other Party.
ARTICLE VIII. NON-DISCRIMINATION
During the performance of this Agreement, neither Party shall discriminate in violation of any applicable federal, state and/or local law or regulation on the basis of race, color, sex, sexual orientation, religion, national origin, creed, marital status, political affiliation, and/or the presence of any sensory, mental or physical handicap. This provision shall include but not be limited to the following: employment,
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upgrading, demotion, transfer, recruitment, advertising, layoff or termination, rates of pay or other forms of compensation, selection for training, and the provision of services under this Agreement.
ARTICLE IX. COMPLIANCE WITH APPLICABLE LAWS
Each Party shall comply with all applicable federal, state and local laws and regulations in providing the work/services under this Agreement. ARTICLE X. INDEMNIFICATION AND HOLD HARMLESS
A. PSE agrees to indemnify and hold harmless District, and its officials, officers, employees and agents and each of the heirs, personal representatives, successors and assigns of any of the foregoing, from and against any and all liabilities, claims, damages and expenses (including all reasonable attorneys’ fees) arising out of or to the extent caused by any breach of any representation or warranty made by PSE and contained in this Agreement.
B. District agrees to indemnify and hold harmless PSE, and its officials, officers, employees and agents and each of the heirs, personal representatives, successors and assigns of any of the foregoing, from and against any and all liabilities, claims, damages and expenses (including all reasonable attorneys’ fees) arising out of or to the extent caused by any breach of any representation or warranty made by District and contained in this Agreement.
C. With regard to third party claims, each of the District and PSE hereby indemnifies and agrees to hold harmless and release the other Party and such Party’s officials, officers, employees and agents and each of the heirs, personal representatives, successors and assigns of any of the foregoing from and against any and all liabilities, losses, claims, damages, costs, demands, fines, judgments, penalties, obligations and payments, together with any reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees and out-of-pocket expenses and reasonable costs and expenses of investigation) incurred in connection with any of the foregoing, to the extent they result from, relate to or arise out of or in connection with the Program. In the event of such a third-party claim, the Parties agree to allocate liability and indemnification responsibility to each other for such claim in the proportion of fifty percent (50%) to the District and fifty percent (50%) to PSE; provided, however, that (i) in the event the third party claim is brought by a utility customer and relates to an electric-only project, the District will fully indemnify PSE with respect to such claim and (ii) in the event that the third party claim is brought by a utility customer and relates to a gas-only project, PSE will fully indemnify the District with respect to such claim. For clarification, claims brought by a utility customer for a project that creates both electric and gas savings will be split between the parties in the proportion of fifty percent (50%) to the District and fifty percent (50%) to PSE.
D. Solely and expressly for purposes of each Party’s duties to indemnify and hold harmless the other Party as set forth above, each Party (“First Party”) specifically waives any immunity it might have under the State Industrial Insurance law, Title 51 RCW, in the event that a claim is made against the other Party for an injury to any employee of the First Party. BOTH PARTIES ACKNOWLEDGE THAT THIS WAIVER HAS BEEN MUTUALLY NEGOTIATED BY THE PARTIES.
E. Nothing contained in this section of this Agreement shall be construed to create a liability or a right of indemnification in any third party.
F. The provisions of this section shall survive the expiration or termination of this Agreement with respect to any event occurring prior to such expiration or termination.
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ARTICLE XI. PUBLICATIONS; INTELLECTUAL PROPERTY
A. Each Party shall not publicize or advertise at any time any articles, photos, drawings, technical data or other information regarding the Program without the prior written approval (email approval is sufficient) of the other Party.
B. Each Party grants to the other a nonexclusive, nontransferable and royalty-free right to display such Party’s respective trademarks, service marks, and logos (the “Trademarks”) in Program related marketing and other promotional materials, subject to the terms of this Agreement and such Party’s standard trademark usage guidelines (a copy of which will be provided by each Party). Each Party will have the opportunity to review and approve materials with that Party’s logo prior to distribution of those materials. Neither Party shall acquire any interest in or rights of ownership to any copyrights, patents, trade secrets, trademarks or other intellectual property of the other Party. Upon termination of this Agreement, each Party will cease using any materials that bear the Trademarks of the other Party.
C. The Parties acknowledge and agree that, except for the rights and licenses expressly granted by each Party to the other Party under this Agreement, each Party will retain all right, title and interest in and to its products, services, Trademarks, and all content, information and other materials on its website(s), and nothing contained in this Agreement will be construed as conferring upon such Party, by implication, operation of law or otherwise, any other license or other right.
ARTICLE XII. ENERGY SAVINGS DATA
Each Party shall share Program data with the other Party to justify energy savings in compliance with the Energy Independence Act, RCW Chapter 19.285. Specific data requirements will be mutually agreed upon for each Scope of Work. ARTICLE XIII. FUEL SWITCHING
Nothing in this Agreement or in any associated SOW shall preclude PSE from switching electric customers to natural gas when a Customer expresses interest, or prohibit PSE from providing general information on its publicly available website, or in other public forums or media, regarding the benefits of natural gas and rebates available. However, PSE will not use this Agreement to actively market fuel switching within the DISTRICT’S service territory. ARTICLE XIV. CONFIDENTIALITY
A. Each Party, including such Party’s officers, agents, and employees, shall hold and maintain as confidential all information in connection with the Program, the business of the other Party, the other Party’s financial affairs, and the other Party’s relations with its employees and customers, as well as any other information which may be specifically classified as confidential by the disclosing Party and sent to the other Party in connection with this Agreement. Both Parties shall not disclose and/or sell any private or proprietary customer information of the other Party (as those terms are defined in RCW 19.29A.010) to any third-party that is not a party to this Agreement.
B. If PSE provides the District with documents or “writings” (as defined in the Washington Public Records Act, Chapter 42.56 RCW) that PSE considers to be confidential or proprietary, PSE must prominently mark such documents “Confidential” upon all applicable pages or inform the District of that claim in writing regarding electronic records. If the District receives a public records request or a subpoena for any of those documents or “writings,” it will not release them, unless requested to do so by PSE, sooner than ten (10) days after giving PSE written notice in the manner provided herein to allow PSE to commence litigation to prevent the release. The entire expense of such litigation, including the District’s attorneys’
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fees and costs and any amounts that the District is required to pay, specifically including any damages imposed upon the District for any failure or delay in releasing the records, shall be paid by PSE.
C. Provided the District complies with its obligations under this Article XIV, the District shall have no liability for releasing the documents or “writings” if PSE does not commence litigation, as established by court papers served upon the District, to prevent release within the ten (10) day notice period.
ARTICLE XV. DEBARMENT CERTIFICATION
A. PSE certifies to District that PSE is not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in this Agreement by any Federal department or agency. PSE shall immediately provide written notice to the District if at any time PSE learns that it has become debarred, suspended, proposed for debarment, declared ineligible or is voluntarily excluded from participating in this Agreement by any Federal department or agency, or if at any time PSE learns that this certification was erroneous when submitted or has become erroneous by reason of changed circumstances. In addition, PSE shall not award any subcontract under this Agreement to any party which is debarred, suspended or otherwise excluded from or ineligible for participation (as more fully described above) in any Federal assistance programs, except with the express written consent of the District.
B. District certifies to PSE that District is not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in this Agreement by any Federal department or agency. District shall immediately provide written notice to PSE if at any time District learns that it has become debarred, suspended, proposed for debarment, declared ineligible or is voluntarily excluded from participating in this Agreement by any Federal department or agency, or if at any time District learns that this certification was erroneous when submitted or has become erroneous by reason of changed circumstances. In addition, District shall not award any subcontract under this Agreement to any party which is debarred, suspended or otherwise excluded from or ineligible for participation (as more fully described above) in any Federal assistance programs, except with the express written consent of PSE.
ARTICLE XVI. INSURANCE
Each Party shall maintain in full force and effect throughout the term of this Agreement, a minimum of Two Million Dollars ($2,000,000) liability insurance for property damage and bodily injury. In satisfying the insurance requirements set forth in this section, each Party may self-insure against such risks. In addition, each Party shall maintain Workers Compensation insurance as required by the laws of the State of Washington. At the time of execution of this Agreement, and prior to commencement of performance of any work, each Party shall furnish, upon request, a Certificates of Insurance as evidence that policies providing insurance (or self-insurance) with such provisions, coverage's and limits are in full force and effect. ARTICLE XVII. NOTICES
All notices required to be given hereunder shall be deemed to be sufficiently given if delivered in person, by Electronic Mail, Facsimile, nationally recognized overnight courier, or if sent by U.S. Mail, postage prepaid, to the District’s Program Leader or to the PSE’S Program Leader at the addresses set forth above. Either Party may designate other addresses from time to time by giving written notice to the other Party. Notice given by U.S. Mail shall be presumed to be received three (3) days after mailing on any day other than a Sunday or a legal holiday. If the last day of the three (3) day period is a Saturday, Sunday or legal holiday the period shall be extended to the end of the next day which is neither a Saturday, Sunday or legal holiday. Notice given by nationally recognized overnight courier, if sent freight prepaid, shall be presumed to be received on the next business day, or upon written verification of receipt.
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ARTICLE XVIII. NONWAIVER
The failure of the either Party to insist upon or enforce strict performance by the other Party of any provision of this Agreement, or to exercise any right under this Agreement, shall not be construed as a waiver or relinquishment to any extent of such Party’s right to assert or rely upon any such provision or right in that or any other instance; rather, the same shall be and remain in full force and effect.
ARTICLE XIX. ASSIGNMENT AND SUBAGREEMENTS
This Agreement shall not be assigned by either Party, either in whole or in part, without the prior written approval of the other. Any attempted assignment without such written consent shall be void.
ARTICLE XX. ENTIRE AGREEMENT
The District and PSE understand and agree that this document constitutes the whole Agreement between them and supersedes all other prior agreements and understandings, whether oral or written. This Agreement, and any Scopes of Work, shall not be modified or amended except by written amendment.
ARTICLE XXI. FAIR MEANING
The terms of this Agreement shall be given their fair meaning and shall not be construed in favor of or against either Party hereto because of authorship. This Agreement shall be deemed to have been drafted by both of the Parties.
ARTICLE XXII. SEVERABILITY
A. If a court of competent jurisdiction holds any part, term or provision of this Agreement to be illegal, or invalid in whole or in part, the validity of the remaining provisions shall not be affected, and the Parties’ rights and obligations shall be construed and enforced as if the Agreement did not contain the particular provision held to be invalid.
B. If any provision of this Agreement is in direct conflict with any statutory provision of the State of Washington, that provision which may conflict shall be deemed inoperative and null and void insofar as it may conflict, and shall be deemed modified to conform to such statutory provision.
ARTICLE XXIII. GOVERNING LAW AND VENUE
This Agreement shall be governed by the laws of the State of Washington (without regard to any conflicts of law principles applied in that State), with venue for any disputes in Snohomish County, Washington; provided that venue for any matter that is within the jurisdiction of the Federal Court shall be in the United States District Court for the Western District of Washington at Seattle, Washington. Each Party hereby irrevocably waives, to the fullest extent it may effectively do so, the defense of an inconvenient forum to the maintenance of proceedings in such courts.
To the maximum extent permitted by applicable law, each Party hereby waives their respective rights, if any, to a jury trial of any claim, controversy, dispute or cause of action directly or indirectly based upon or arising out of this Agreement or any of the transaction contemplated herein. Each Party represents that it has reviewed this waiver and each knowingly and voluntarily waives its jury trial rights following consultation with legal counsel. In the event of litigation, a copy of this Agreement may be filed as a written consent to a trial by the court.
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ARTICLE XXIV. REPRESENTATIONS AND WARRANTIES
As of the Effective Date, and as of the date the Parties enter into a new SOW hereunder, each undersigned Party represents to the other Party as follows:
A. The undersigned Party has full power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement constitutes the valid and legally binding obligation of the undersigned Party, enforceable against the undersigned Party in accordance with its terms and conditions, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law).
B. Neither the execution and the delivery by the undersigned Party of this Agreement nor the consummation by the undersigned Party of the transactions contemplated hereby will violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or court to which the undersigned Party is subject or bound. The undersigned Party is not required to give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order for the parties to consummate the transactions contemplated by this Agreement.
EXCEPT AS SET FORTH HEREIN, NEITHER PARTY MAKES ANY WARRANTY TO THE OTHER WITH RESPECT TO THE PROGRAM OR THE SERVICES TO BE PROVIDED HEREUNDER, INCLUDING, WITHOUT LIMITATION, REPRESENTATIONS ABOUT THE AMOUNT OF ENERGY SAVINGS TO BE ACHIEVED THROUGH THE PROGRAM, OR WARRANTIES OF MERCHANTIBILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND EACH HEREBY DISCLAIMS ANY WARRANTY, WHETHER EXPRESSED OR IMPLIED, EXCEPT AS EXPRESSLY PROVIDED HEREIN OR IN AN AGREED SCOPE OF WORK.
ARTICLE XXV. LIMITATION OF LIABILITY
IN NO EVENT WILL EITHER PARTY OR ITS EMPLOYEES, OFFICERS AND DIRECTORS BE LIABLE TO THE OTHER PARTY FOR CONSEQUENTIAL, SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE OR EXEMPLARY DAMAGES, COSTS, EXPENSES, OR LOSSES (INCLUDING LOST PROFITS, LOST DATA, OR OPPORTUNITY COSTS), REGARDLESS OF THE FORM OF ACTION, DAMAGE, CLAIM, LIABILITY, COST, EXPENSE, OR LOSS, WHETHER IN CONTRACT, STATUTE, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE; PROVIDED, HOWEVER, THAT DAMAGES INCURRED BY A PARTY THAT RESULT FROM A THIRD PARTY CLAIM FOR DEATH OR BODILY INJURY FOR WHICH INDEMNIFICATION IS REQUIRED UNDER ARTICLE X SHALL BE CONSIDERED DIRECT DAMAGES, NOTWITHSTANDING THE CHARACTERIZATION OF THE DAMAGES IN THE UNDERLYING THIRD PARTY CLAIM.
ARTICLE XXVI. NO THIRD PARTY BENEFICIARIES
No person or entity, other than a Party to this Agreement, shall have the right to enforce any provision of this Agreement.
ARTICLE XXVII. COUNTERPARTS
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same Agreement. Counterparts may be delivered via facsimile, electronic mail (including pdf) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.
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IN WITNESS WHEREOF, the Parties hereto have entered into this Agreement as of the Effective Date: PUBLIC UTILITY DISTRICT NO. 1 PUGET SOUND ENERGY, INC. OF SNOHOMISH COUNTY By: By:
Pam Baley, Name:
Assistant General Manager Title:
Customer & Energy Services Date:
Date:
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BUSINESS OF THE COMMISSION
Meeting Date: July 7, 2020 Agenda Item: 5
TITLE
CEO/General Manager’s Report
SUBMITTED FOR: CEO/General Manager Report
CEO/General Manager John Haarlow 8473
Department Contact Extension
Date of Previous Briefing:
Estimated Expenditure: Presentation Planned
ACTION REQUIRED:
Decision Preparation Incidental Monitoring Report
Policy Discussion (Information)
Policy Decision
Statutory
SUMMARY STATEMENT:
Identify the relevant Board policies and impacts:
The CEO/General Manager will report on District related items.
List Attachments:
None
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BUSINESS OF THE COMMISSION
Meeting Date: July 7, 2020 Agenda Item: 6A
TITLE
Commission Reports
SUBMITTED FOR: Commission Business
Commission Melissa Collins 8616 Department Contact Extension
Date of Previous Briefing: Estimated Expenditure: Presentation Planned
ACTION REQUIRED:
Decision Preparation Incidental Monitoring Report
Policy Discussion (Information)
Policy Decision
Statutory
SUMMARY STATEMENT:
The Commissioners regularly attend and participate in meetings, seminars, and workshops and
report on their activities.
List Attachments:
None
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BUSINESS OF THE COMMISSION
Meeting Date: July 7, 2020 Agenda Item: 6B
TITLE:
Commissioner Event Calendar
SUBMITTED FOR: Commission Business
Commission Melissa Collins 8616 Department Contact Extension
Date of Previous Briefing: Estimated Expenditure: Presentation Planned
ACTION REQUIRED:
Decision Preparation Incidental Monitoring Report
Policy Discussion (Information)
Policy Decision
Statutory
SUMMARY STATEMENT:
Identify the relevant Board policies and impacts:
The Commissioner Event Calendar is enclosed for Board review.
List Attachments:
Commissioner Event Calendar
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Commissioner Event Calendar – 2020
**For Planning Purposes Only and Subject to Change at any Time**
July 2020 August 2020 July 8 - 10: Public Power Council/PNUCC Meetings Portland, OR (Tentative)
July 29: Energy Northwest Board of Directors Meetings Tri-Cities, WA (Tentative)
August 5 - 7: Public Power Council/PNUCC Meetings Portland, OR (Tentative)
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Commissioner Event Calendar – 2020
**For Planning Purposes Only and Subject to Change at any Time**
September 2020 October 2020 September 2 - 4: Public Power Council/PNUCC Meetings Portland, OR (Tentative)
September 30 – October 2: Public Power Council/PNUCC Meetings Portland, OR (Tentative)
October 22: Energy Northwest Board of Directors Meeting Tri-Cities, WA (Tentative)
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Commissioner Event Calendar – 2020
**For Planning Purposes Only and Subject to Change at any Time**
November 2020 December 2020 November 4 - 6: Public Power Council/PNUCC Meetings (Annual Meeting) Portland, OR (Tentative)
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BUSINESS OF THE COMMISSION
Meeting Date: July 7, 2020 Agenda Item: 7A
TITLE
Governance Planning Calendar
SUBMITTED FOR: Governance Planning
Commission Melissa Collins 8616 Department Contact Extension
Date of Previous Briefing: Estimated Expenditure: Presentation Planned
ACTION REQUIRED:
Decision Preparation Incidental Monitoring Report
Policy Discussion (Information)
Policy Decision
Statutory
SUMMARY STATEMENT:
Identify the relevant Board policies and impacts:
Governance Process, Agenda Planning, GP-4: To accomplish its job products with a governance
style consistent with Board policies, the Board will follow an annual agenda ….
The Planning Calendar is enclosed for Board review.
List Attachments:
Governance Planning Calendar
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Governance Planning Calendar – 2020
**For Planning Purposes Only and Subject to Change at any Time**
To Be Scheduled To Be Scheduled
• Community Choice Aggregation (CCA) • Energy Services (1st Quarter 2020) • Real Estate Properties • Energy Efficiency Projects Update
• WPUDA Membership Pros/Cons • Climate/Environmental Policy • Board’s Role, Including Statutory
Responsibility, in Bid Process
205/212
Governance Planning Calendar – 2020
**For Planning Purposes Only and Subject to Change at any Time**
July 7, 2020 July 21, 2020 Morning Session:
• Proposed Small Renewables ProgramPower Purchase Agreement BetweenSnohomish PUD and Washington StateDepartment of Transportation
• Overview of Snohomish PUD’s EnergyResources and State Energy RegulatoryRequirements
• Electric Transportation Plan Update• Debt Management Opportunities Update
Afternoon Session: • Monitoring Report:Asset Protection Monitoring Report
• Governance Planning Calendar
Morning Session: • Sound Transit Easement
• Energy Services Update
• Moss Adams Presentation
• Connect Up Program Planning Report
Afternoon Session: • Governance Planning Calendar
206/212
Governance Planning Calendar – 2020
**For Planning Purposes Only and Subject to Change at any Time**
August 4, 2020 August 18, 2020 Morning Session:
• Community Engagement • Plat Contracts • Integrated Resource Plan (IRP) Briefing
Phase 1
Afternoon Session: • Public Hearing and Action: Sound Transit Easement
• Monitoring Report: 2nd Quarter Financial Conditions and Activities Monitoring Report
• Governance Planning Calendar
Morning Session: • Community Engagement • Energy Risk Management Report – 2nd
Quarter
• Water Supply Update
• 2021 Load Forecast
• Integrated Resource Plan (IRP) Briefing Phase 2
Afternoon Session: • 2021 Preliminary Budget – Report of
Filing and Notice of Public Hearing • Governance Planning Calendar
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Governance Planning Calendar – 2020
**For Planning Purposes Only and Subject to Change at any Time**
September 1, 2020 September 15, 2020 Morning Session:
• Community Engagement • Customer Service Update • Distributed Energy Resources (DER) -
Update Afternoon Session:
• Governance Planning Calendar
Morning Session: • Community Engagement • Qualco Update • Battery/Energy Storage Update
Afternoon Session:
• Public Hearing and Action: Disposal of Surplus Property – 4th
Quarter • Governance Planning Calendar
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Governance Planning Calendar – 2020
**For Planning Purposes Only and Subject to Change at any Time**
October 5, 2020 October 20, 2020 Morning Session:
• Community Engagement
Afternoon Session: • Public Hearing: Open 2021 Proposed Budget Hearing
• Governance Planning Calendar
Morning Session: • Community Engagement • Energy Risk Management Report – 3rd
Quarter • Water Supply Update
Afternoon Session: • Governance Planning Calendar
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Governance Planning Calendar – 2020
**For Planning Purposes Only and Subject to Change at any Time**
November 3, 2020 November 17, 2020 Morning Session:
• Community Engagement
Afternoon Session:
• Public Hearing: Continue Public Hearing on the 2021 Proposed Budget
• Monitoring Report: 3rd Quarter Financial Conditions and
Activities Monitoring Report • Adopt Regular Commission Meeting
Dates for the Year 2021 • Governance Planning Calendar
Morning Session: • Community Engagement
Afternoon Session: • Public Hearing: Continue Public Hearing on the 2021 Proposed Budget including Detailed Capital Review and Planning
• Governance Planning Calendar
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Governance Planning Calendar – 2020
**For Planning Purposes Only and Subject to Change at any Time**
December 1, 2020 December 15, 2020 Morning Session:
• Community Engagement
• 2020 Audit Summary
Afternoon Session: • Public Hearing: Continue Public Hearing on the 2021
Proposed Budget • Monitoring Report: Financial Planning and Budgeting
Monitoring Report • Elect Board Officers for the Year 2021 • Proposed 2021 Governance Planning
Calendar
Morning Session: • Community Engagement
Afternoon Session: • Public Hearing and Action: Disposal of Surplus Property - 1st
Quarter Adopt 2021 Budget Confirm Final Assessment Roll for LUD
• Adopt 2021 Governance Planning Calendar
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2020 Year-at-a-Glance Calendar
January February March April S M T W T F S S M T W T F S S M T W T F S S M T W T F S
1 2 3 4 1 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 10 11 2 3 4 5 6 7 8 8 9 10 11 12 13 14 5 6 7 8 9 10 11
12 13 14 15 16 17 18 9 10 11 12 13 14 15 15 16 17 18 19 20 21 12 13 14 15 16 17 18 19 20 21 22 23 24 25 16 17 18 19 20 21 22 22 23 24 25 26 27 28 19 20 21 22 23 24 25 26 27 28 29 30 31 23 24 25 26 27 28 29 29 30 31 26 27 28 29 30
May June July August S M T W T F S S M T W T F S S M T W T F S S M T W T F S
1 2 1 2 3 4 5 6 1 2 3 4 1 3 4 5 6 7 8 9 7 8 9 10 11 12 13 5 6 7 8 9 10 11 2 3 4 5 6 7 8
10 11 12 13 14 15 16 14 15 16 17 18 19 20 12 13 14 15 16 17 18 9 10 11 12 13 14 15 17 18 19 20 21 22 23 21 22 23 24 25 26 27 19 20 21 22 23 24 25 16 17 18 19 20 21 22 24 25 26 27 28 29 30 28 29 30 26 27 28 29 30 31 23 24 25 26 27 28 29
31 30 31 September October November December
S M T W T F S S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 5 1 2 3 1 2 3 4 5 6 7 1 2 3 4 5
6 7 8 9 10 11 12 4 5 6 7 8 9 10 8 9 10 11 12 13 14 6 7 8 9 10 11 12 13 14 15 16 17 18 19 11 12 13 14 15 16 17 15 16 17 18 19 20 21 13 14 15 16 17 18 19 20 21 22 23 24 25 26 18 19 20 21 22 23 24 22 23 24 25 26 27 28 20 21 22 23 24 25 26 27 28 29 30 25 26 27 28 29 30 31 29 30 27 28 29 30 31
Holiday
Commission Meeting
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