MEETING NOTES

Portfolio Options Committee

PacifiCorp

Wednesday June 20, 2012, 1:30PM – 3:30 PM

Attendees:

Thor Hinckley (PGE)

Marc Cody (PGE)*

Isaiah Cox (PGE)

Joanna Colby (Green Mountain)

Stasia Brownell (3 Degrees)

Amanda Mortlock (3 Degrees)

Barbara McKibben (PacifiCorp)

Rhonda Rasmussen (PacifiCorp)

Kathy Ramsey (PacifiCorp)

Bryce Dalley (PacifiCorp)

Joelle Steward (PacifiCorp)*

Brian Harney (NWN)

Jennifer Gross (NWN)*

Eric Lovell (small non-residential)*

Megan Decker (RNP)*

Roger Rees (Oregon Heat)*

Rebecca O’Neil (ODOE)*

Julie Peacock (ODOE)

Bill Drumheller (ODOE)

Jeff Bissonnette (CUB)*

Vijay Saytal (ODOE)

David Tooze (City of Portland)*

By phone:

Jana Saba (PacifiCorp)

* POC Member

Announcements/Agenda Amendments

  • Joanna Colby and Amanda Mortlock requested to delay the presentation on communications to the public and Green-e certification because Oregon Public Utility Commission (PUC) staff was not in attendance. Megan Decker supported the stay given the subcommittee could cover its progress but items would have to be repeated for PUC staff. Rebecca O’Neil suggested the committee proceed through the agenda and if there was time the presentation could be summarized and information discussed generally.
  • Jana Saba (PacifiCorp) will be joining the POC for Aaron Lively.

Agenda

Draft Memo of POC Recommendations

Rebecca O’Neil requested feedback on the proposed annual POC Memo to PUC staff. In particular, the POC needed to update its membership and proxy list Commission for the July 2012-June 2013 term.

  • Thor Hinckley suggested language be adjusted to allow for the fact that PGE’s pilot program will begin until 2013; and will have not concluded when the memo goes to the PUC.
  • Joelle Steward recommended language be adjusted in the description ofcurrent PacifiCorp’s customer options section to reflect that the contract was approved and continues through 2013.
  • Amanda suggested language be adjusted to reflect that The Freshwater Trust is an administrator of PacifiCorp’s Blue Sky habitat fund rather than the option provider.
  • Jennifer Gross approved language in NW Natural’s section.

The POC considered whether to invite new members to the committee, as some constituencies (small non-residential customers) have no proxies at their organizations.She asked the POC to suggest new members or categories of members who might make the committee more well-rounded and more geographically diverse. PGE and PacifiCorp both indicated a willingness to help recruit enrolled customers. Joelle commented that PacifiCorp submitted a list of potential proxy suggestions to PUC staff. Rebecca will follow up with staff regarding the list.

Proxy Additions:

  • Megan Decker requested Michael O’Brien a new staff member of the Renewable Northwest Project be added as her proxy.
  • Jennifer Gross requested Brian Harney be added as her proxy for NW Natural.
  • Roger Rees requested that Roger Anderson be added as his proxy.

Rebecca will integrate the changes and circulate for final sign-off before submitting the memo to PUC staff.

Time of Use Programs

PGE: Marc summarized PGE’s TOU structure. There are three periods: on-peak, mid-peak and off-peak. Off-peak rates are standard wholesale market periods. Peak periods are differentiated by two seasons—winter and summer. Off-peak pricing is three times less than on-peak. PGE has inverted block rates for the first 1,000 kWh. Inverted TOU rates do not include residential charges. Beginning in 2002, PGE waived the additional metering charges. PGE has not marketed TOU, but customer participation has increased from 2006 levels. In a survey of customers, PGE found that almost all customers save money in this program, but it is likely that their consumption profiles make the customers natural savers. It is not clear that any of the customers changed behaviors as a result of the rate structure.

  • Rebecca asked if PGE had any thoughts on how customers using Sch. 32 had doubled without marketing. Marc commented that there was a large national customer who had multiple locations that was enrolled in the program. Megan asked if PGE had considered marketing the program. Marc said that discussion hadn’t been had in a few years internally given reduced cost-effectiveness of the program when marketing costs were added. David Tooze commented that he remembered a study showing that there were some sizable costs associated with the TOU program. Marc said some of the cost-effectiveness issues were related to the additional costs for meter-reading, but that additional cost no longer exists. Megan asked that Marc send the study to the group. Rebecca asked if the TOU was included on PGE’s marketing literature. Thor said that the option was listed on the website but not in the renewable marketing literature. Rhonda Rasmussen said the same was true for PacifiCorp.
  • David asked where the utilities want to go with this program. It might be a strategic move to focus on TOU rates in the future given that several large utilities outside of the Northwest are using similar tools. Joelle commented that there is a significant difference between mandatory and voluntary programs. Marc added that the infrastructure to add TOU rates for small commercial was not currently available. General sense that the program

PacifiCorp: Joelle summarized PacifiCorp’s TOU structure:PacifiCorp does not have a mid-peak price. She noted Oregon rates are complex because of direct access.There is a $1.50 charge per month for metering. PacifiCorp also has an inverted block structure for the first 1,000 kWh, then a rate of $0.09/kWh over 1,000 kWh. The number of program participants has gone up and down but it is similar to the number of PGE participants.

  • Rebecca asked if PacifiCorp had a sense of potential for irrigation rates. Joelle commented that there were no customers enrolled in irrigation and if there were, it was only a few.

Response to Commission Letter

Megan reported on the subcommittee activities. Their discussion began by asking if you are marketing a program you want to know why and what it is doing—the goal is to first continue the program and high program growth; and second educate customers. Thor added that he believed a substantial value of the program is education. The committee also worked toward the division of marketing and administration costs as brought up by Eric Lovell at the last meeting. PacifiCorp’s program costs are already separated by marketing and administration, and these costs are reflected in a pie chart on their website.[1] PGE will consider adding a similar chart.

Green Power Marketing Communications and Green-e Energy Presentation Overview

Amanda gave a brief summary of the presentation. She said the point of the presentation was to give committee members resources and tools, not to answer the Commission’s questions. She noted that the first question was whether the current marketing messages are conveying the right messages to customers. To answer that question, we must agree on the correct information (slide 2). The full presentation will be given when PUC staff is available.

  • Megan asked whether there would be a cost-benefit analysis. Joanna Colby responded that it was harder to say what the benefits are (monetize) the benefits, and considerably easier to say what the costs are.
  • Jeff Bissonnette suggested some of the costs should be included in the presentation. He also asked if there been any usability analysis done for the webpages and online materials. Thor responded that before a website is live to the public, it goes through a series of usability studies. Thor also noted that the renewables information is directly on the homepage.

Other

  • Rebecca noted that PacifiCorp’s RFP had been approved.
  • Rhonda said that PacifiCorp has received 48 applications for Blue Sky. Of those, 31 were in the Rocky Mountain Power territory and 17 in Pacific Power territiroy (including California and Washington).
  • The next meeting will be set by electronic voting, to accommodate traveling attendees.

Next meeting: TBD, Late August or September, Portland General Electric

On deck for the future meetings:

  • NW Natural Smart Energy
  • Green Power Marketing Communications and Green-e Energy Presentation (3Degrees and Green Mountain)
  • Q2 presentations (PacifiCorp, NW Natural and PGE)
  • AR 555 update

[1] under “Where does my money go?”