HomeMy WebLinkAboutAgenda Packet - February 25, 2013 -UB �LZSAmir
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AGENDA
REGULAR MEETING OF
AZUSA UTILITY BOARD
AZUSA LIGHT & WATER FEBRUARY 25,2013
729 N. AZUSA AVENUE 6:30 P.M.
AZUSA, CA 91702
AZUSA UTILITY BOARD
ANGEL CARRILLO
CHAIRPERSON
URIEL E. MACIAS JOSEPH R. ROCHA
VICE CHAIRPERSON BOARD MEMBER
KEITH HANKS ROBERT GONZALES
BOARD MEMBER BOARD MEMBER
6:30 P.M. Convene to Regular Meeting of the Azusa Utility Board
• Call to Order
• Pledge to the Flag
• Roll Call
A. PUBLIC PARTICIPATION
1. (Person/Group shall be allowed to speak without interruption up to five(5) minutes maximum time,
subject to compliance with applicable meeting rules. Questions to the speaker or responses to the
speaker's questions or comments shall be handled after the speaker has completed his/her comments.
Public Participation will be limited to sixty (60) minutes time.)
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B. CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION
Pursuant to California Government Code Section 54956.9 (c)
One Potential Case: Successor Agency/City of Azusa/Azusa Utility v. State of California Department of
Finance, et. al.
C. UTILITIES DIRECTOR COMMENTS
D. UTILITY BOARD MEMBER COMMENTS
E. CONSENT CALENDAR
The Consent Calendar adopting the printed recommended action will be enacted with one vote. If Staff or
Councilmembers wish to address any item on the Consent Calendar individually, it will be considered under
SPECIAL CALL ITEMS.
1. Minutes. Recommendation: Approve minutes of regular meeting on January 28, 2013 as written.
2. Adoption of New and Revised Electric Standards. Recommendation: Adopt the new (ED25 & ED26)
and revised (ED1 & ED2) electric construction standards to be used as reference, guideline, and
regulation by customers and staff.
3. Approval of Extension to Infosend Contract. Recommendation: Approve a two-year extension to the
contract with InfoSend for utility bill print and mailing and online bill presentment and payment.
4. Approval of Purchase of Electric Automated Meter Reading(AMR) Meters. Recommendation:
Authorize the issuance of a Purchase Order in the amount not-to-exceed $19,224 in accordance with
Section 2-518(b) Article VII Chap. 2 of the Azusa Municipal Code (AMC) for purchasing 360 AMR
meters from McAvoy &Markham.
F. SCHEDULED ITEMS
1. Approval to Lease Two Electric Vehicles to Replace Aging Equipment. Recommendation:
1) Approve the leasing of two (2) Electric Vehicles in the amount not-to-exceed $400 per vehicle monthly
lease payments during the three-year lease term and, if necessary, a capital contribution not-to-exceed
$2,000; and 2) authorize the City's Purchasing Division and the Director of Utilities to arrange the EV
lease with a local dealer.
2. Approval of a Temporary Water Rights Transfer for FY 2012-2013 to City of South Pasadena.
Recommendation: Ratify the execution of the water rights lease agreement with the City of South
Pasadena.
2
G. STAFF REPORTS/COMMUNICATIONS
1. Kirkwall Substation Replacement Batteries
2. Los Angeles County "Draft" Green Waste Management Report
3. Morgan Meguire LLC Monthly Legislative Update
4. Overview of Azusa Light& Water Organization
5. Water Supply Update (Verbal)
6. "What is the Smart Grid?"Video
H. ADJOURNMENT
1. Adjournment.
"In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a city
meeting, please contact the City Clerk at 626-812-5229. Notification three (3) working days prior to the
meeting or time when special services are needed will assist staff in assuring that reasonable arrangements
can be made to provide access to the meeting."
"In compliance with Government Code Section 54957.5, agenda materials are available for inspection by
members of the public at the following locations: Azusa City Clerk's Office - 213 E. Foothill Boulevard,
Azusa City Library- 729 N. Dalton Avenue, and Azusa Light& Water-729 N.Azusa Avenue,Azusa CA."
•
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APPROVED
Date „7-/a S/c2-013
•
AZCTS A
LIGHT B. 'WATER
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE ♦ SA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES ,
DATE: FEBRUARY 25, 2013
.0"
SUBJECT: NEW AND REVISED ELECTRIC CONSTRUCTION STANDARDS
RECOMMENDATION
It is recommended that the Utility Board adopt the new (ED25 and ED26) and revised (ED1 and
ED2) electric construction standards to be used as references, guidelines, and regulations by
customers and staff.
BACKGROUND
Over the years, electric standards were developed and posted on Azusa Light & Water's website
as information to help customers and staff to execute construction electric service projects safely
and in compliance with all rules and regulations. State laws and utility practices have continued
to evolve. Thus, it is necessary to update existing and introduce new construction standards to
keep up with the ever changing utility environment.
Staff has developed two new Electric Standards -- ED25 and ED26. Standard ED25 pertains to
requirements for solar photovoltaic panel installations, and ED26 pertains to minimum clearance
requirements around utility transformers. In addition, staff made minor revisions to existing
Electric Standards ED1 and ED2. Revision of standard ED1 updates engineering department's
contact information. Revision of standard ED2 improves the practice of low voltage cable
installation.
FISCAL IMPACT
This action has no fiscal impact.
Prepared by:
Hien K. Vuong, P.E. —Electrical Engineer
Attachments: ED 1-Orig, ED1-Rev, ED2-Orig, ED2-Rev, ED25, ED26
009
GENERAL CONSTRUCTION NOTES
INSTALLATION OF UNDERGROUND ELECTRIC DISTRIBUTION SYSTEM
RESIDENTIAL, COMMERCIAL AND INDUSTRIAL PROJECTS
Revised: October 2008
OWNER, PROJECT DEVELOPER OR CONTRACTOR NOTES:
Owner, project developer or contractor shall furnish all .labor,
material, equipment and services to construct and complete an
underground electric substructure system. These include but not limited
to excavation, shoring of excavation, installation of conduits and
concrete substructures, concrete encasement, backfilling, compaction of
backfill, permanent resurfacing, reconstruction of concrete
improvements, disposal of construction debris and all appurtenant work.
1) PROJECT PLANS: Owner, project developer, consultant or designated
agent shall prepare a drawing or plans showing the scope and extent of
the work involved. Project plans involving the method of electric
service or incoming utility lines for electric service shall be
submitted for review to Azusa Light & Water. All underground electric
substructures shall be installed as per approved plan and
specifications for the project.
2) EXCAVATION PERMIT: Prior to starting construction, the owner,
project developer or contractor shall obtain duly approved excavation
permits for any work that involves digging in the public right-of-way
or easements.
Excavation Permit:
Engineering Department.
213 East Foothill Boulevard
Azusa, California 91702
Tel. # (626) 812-5264
3) CONTRACTOR RESPONSIBILITY: Contractor shall notify Underground
Service Alert (USA) before commencing with any excavations. Contractor
shall determine the exact location of all underground substructures or
utilities including service connections and protect these existing
substructures during construction. Any damage done by the contractor to
these existing substructures will be the total responsibility of the
owner / contractor and that these damaged substructures shall be
restored to their original condition. Unknown field conditions,
existing substructures or utilities not shown on the approved plan
shall be the responsibility of contractor performing the work.
4) CONSTRUCTION INSPECTION: Installation of underground electric
conduits & substructures require field inspection and approval by
Azusa Light & Water Department during construction. Contractor to
notify Azusa Light & Water Department and schedule an appointment for
inspection 24 hours in advance. Completed installation "as built"
drawings shall be submitted by contractor or owner. Installed
underground substructures will not be accepted unless duly inspected
and approved by Azusa Light & Water Department. Contractor or owner
shall perform the corrections required by Azusa Light & Water prior to
pulling cable and energizing the service.
EII.ECir RIIC STA/V DA,Fit ii,
•
DRAWN: NV
GENERAL CONSTRUCTION NOTES "G. '
DATE, +o-so.oe EDI
AZUSASKEET
LIGHT & WATER ;CALE: NTS APPROVED, r, . ,� ...� tO Z� p Oi 4
1
DATE , 1 1
GENERAL CONSTRUCTION NOTES
INSTALLATION OF UNDERGROUND ELECTRIC DISTRIBUTION SYSTEM
RESIDENTIAL, COMMERCIAL AND INDUSTRIAL PROJECTS
Revised: October 2008
OWNER, PROJECT DEVELOPER OR CONTRACTOR NOTES:
Owner, project developer or contractor shall furnish all labor,
material, equipment and services to construct and complete an
underground electric substructure system. These include but not limited
to excavation, shoring of excavation, installation of conduits and
concrete substructures, concrete encasement, backfilling, compaction of
backfill, permanent resurfacing, reconstruction of concrete
improvements, disposal of construction debris and all appurtenant work.
1) PROJECT PLANS: Owner, project developer, consultant or designated
agent shall prepare a drawing or plans showing the scope and extent of
the work involved. Project plans involving the method of electric
service or incoming utility lines for electric service shall be
submitted for review to Azusa Light & Water. All underground electric
substructures shall be installed as per approved plan and
specifications for the project.
2) EXCAVATION PERMIT: Prior to starting construction, the owner,
project developer or contractor shall obtain duly approved excavation
permits for any work that involves digging in the public right-of-way
or easements.
''X' Excavation Permit:
Engineering Department
809 North Angeleno Avenue
Azusa, California 91702
Tel. # (626) 812-5247
3) CONTRACTOR RESPONSIBILITY: Contractor shall notify Underground
Service Alert (USA) before commencing with any excavations. Contractor
shall determine the exact location of all underground substructures or
utilities including service connections and protect these existing
substructures during construction. Any damage done by the contractor to
these existing substructures will be the total responsibility of the
owner / contractor and that these damaged substructures shall be
restored to their original condition. Unknown field conditions,
existing substructures or utilities not shown on the approved plan
shall be the responsibility of contractor performing the work.
4) CONSTRUCTION INSPECTION: Installation of underground electric
conduits & substructures require field inspection and approval by
Azusa Light & Water Department during construction. Contractor to
notify Azusa Light & Water Department and schedule an appointment for
inspection 24 hours in advance. Completed installation "as built"
drawings shall be submitted by contractor or owner. Installed
underground substructures will not be accepted unless duly inspected
and approved by Azusa Light & Water Department. Contractor or owner
shall perform the corrections required by Azusa Light & Water prior to
pulling cable and energizing the service.
ELET1F1 STANDAR\ [ •D
sem/ DRAWN; NV
GENERAL CONSTRUCTION NOTES DW`'Na
DATES 02.19.1 EDI
II 1
U S'� ` C APPROVED: SHEET
WAli i;
SCALE: NTS I OF 4
DATE
0pt•
•
6) PANEL INSTALLATION FOR COMMERCIAL AND INDUSTRIAL PROJECTS:
Electrical panels shall be accessible and installed outside of
building premises. Outdoor type electrical panels to be
securely mounted on a concrete pad extending a minimum of
three feet in front of panel. Protective barriers shall be
installed around electric panels to prevent damage from
vehicular traffic.
7) SECONDARY CONDUCTORS: Owner or electrical contractor shall
furnish & install secondary service conductors from source of
transformation to the panel pull section. Contractor shall
terminate conductors inside the panel and Azusa Light & Water
to complete connection at source. Service conductors shall
have ampacity ratings and applicable insulation in accordance
with latest edition of National Electrical Code.
8) ELECTRIC METER: Owner or electrical contractor shall
furnish & install the meter sockets in the metering
compartment in accordance with Euserc service requirements.
Prior to energizing electric service, owner or person
responsible for paying electric bill, shall fill out the
application form for electric service and make arrangement for
prepayments on the electric meter account.
Electric Account:
Azusa Light & Water
Consumer Services Division
729 N. Azusa Avenue
Azusa, California, 91702
Tel. # (626) 812-5225
end.
0 -'a WA-L
IE ECTRII S11"40Xt iEpp Ft Q
1 •
DRAWN: NV GENERAL NOTES FOR DV/G.MO.
DATE: 4.24.03 OBTAINING ELECTRIC SERVICE ED2
AZUSASHEET
LIGHT d WATER SCALES NM / ` A►PROYED: ,r... 03 A of (�L
DATE
l�
•
6) PANEL INSTALLATION FOR COMMERCIAL AND INDUSTRIAL PROJECTS:
Electrical panels shall be accessible and installed outside of
building premises. Outdoor type electrical panels to be
securely mounted on a concrete pad extending a minimum of
three feet in front of panel . Protective barriers shall be
installed around electric panels to prevent damage from
vehicular traffic.
"' 7) SECONDARY CONDUCTORS: Owner or electrical contractor shall
furnish & install secondary service conductors from source of
transformation to the panel pull section. Contractor shall
terminate conductors inside the panel and Azusa Light & Water
to complete connection at source. Service conductors shall
have ampacity ratings and applicable insulation in accordance
with latest edition of National Electrical Code . Service
entrance with more than two sets of conductors must be
installed with manufactured color code insulation. Each
ungrounded and grounded conductor should have different color.
8) ELECTRIC METER: Owner or electrical contractor shall
furnish & install the meter sockets in the metering
compartment in accordance with Euserc service requirements.
Prior to energizing electric service, owner or person
responsible for paying electric bill, shall fill out the
application form for electric service and make arrangement for
prepayments on the electric meter account .
Electric Account:
Azusa Light & Water
Consumer Services Division
729 N. Azusa Avenue
Azusa, California, 91702
Tel . # (626) 812-5225
. end.
ELECTRIC STAN' ID ,RLI
, DRAWN: NV GENERAL NOTES FOR DWG.NO.
"`♦" OBTAINING ELECTRIC SERVICE ED2
DATE: 02-05.13
AZUSA / SHEET
SCALE: NTS APPROVED:
LIGHT & WATER 2 OF 2
J l DATE
4
Azusa Power Grid
v
o
Main
CB
BranchCB Solar
Q PV
AC Inverter Panels
Disconnect
Pr..uction
Meter
O O O
—•- See Note 4 for spacing requirements
NOTES:
1. EXISTING SERVICE PANEL SHALL REMAIN. FOR NEW OR UPGRADE SERVICE PANEL,
APPLICANT MUST SEEK SPOT APPROVAL FROM AZUSA ELECTRIC DIVISION PRIOR TO
INSTALLATION. INSTALL SERVICE PANEL AT UNAPPROVED SPOT COULD RESULT IN
DELAY OF PROJECT UNTIL ALL CORRECTION IS MADE TO THE SATISFACTION OF THE
ELECTRIC DIVISION. REFER TO AZUSA'S ELECTRIC STANDARD ED22 AND ED2 FOR
REQUIREMENTS PERTAINING TO SERVICE PANEL INSTALLATION. SIZE ALL BRANCH
CIRCUIT BREAKER PER LATEST NATIONAL ELECTRICAL CODE (N.E.C) EDITION
CURRENTLY ENFORCED BY LOCAL AUTHORITY.
2. PRODUCTION METER SUPPLIED BY AZUSA LIGHT DIVISION. REFER TO EUSERC
STANDARD FOR SOCKET TYPE.
3. AC DISCONNECT SHALL BE LOCKABLE IN OFF POSITION.
4. MAIN SERVICE , PRODUCTION METER SOCKET, AND AC DISCONNECT SHALL BE WITHIN 8
FEET OF EACH OTHER AND A MINIMUM 10"APART, LOCATED OUTDOOR, AND ACCESSIBLE
TO THE UTILITY COMPANY AT ALL TIMES.
5. ALL INSTALLATIONS REQUIRE SEPARATE PERMIT, APPROVAL, AND INSPECTION FROM
THE CITY'S BUILDING AND SAFETY DIVISION.
014j
EL.ECT��C STAN pARa
,
DRAWN: HV
REQUIREMENTS FOR CUSTOMERS DWG.No.
WITH PHOTOVOLTAIC GENERATOR
DATE: Z-5.13 ED25
A'USAAPPROVED: SHEET
LIGHT & WATER SCALE: NTS DATE 1 OF 'I
i
Note:
• Keep shrubs, landscape material and
' structures 8 feet away from the doors and 18
41. ."' ( i
If
inches away from the sides of transformer
ICI
�► +; "
18y i.•- �:, 4-18--, o
4.18-4 � TIA: +�
r .
41
3'
Building
15' Padmount from non-combustible wall
transformer 10'
Pool from combustible wall
Nom
— Window, vent, or
other opening /
— —L 10'
10" lriZ
Padmount i mefer
— 10' transformer --3'—=
Fire escape
20` Fuel
Padmount
ii —6. transformer tan
Fire hydrand co
I I
/////// //////////////////////////////////// /
Source:Safety Clearances Around Padmount Transformers,p.58-59,Distribution Transformer Handbook, !st Ed.,October 2001
O15
EI _EGTRIIG STANpARCI
r
OW
DRAWN: HV CLEARANCE REQUIREMENTS DWG.NO.
014/~ AROUND PAD MOUNT TRANSFORMER
DATE: 2.54 3 ED26
AZUSASCALE: NTS APPROVED: SHEET
I OF 1
LIGHT 8, WATER 1 \ DATE i ‘
APPROVED
Date ?"?.,c/9-0,3
4)1111111
ALLISA
CAT & 'Arlo
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF TH ZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: FEBRUARY 25, 2013
SUBJECT: APPROVE THE PURCHASE OF AUTOMATED METER READING (AMR)
ELECTRIC METERS FROM MCAVOY & MARKHAM
RECOMMENDATION
It is recommended that the Azusa Utility Board authorize the issuance of a Purchase Order in the
amount not-to-exceed $19,224 in accordance with Section 2-518(b) Article VII Chap. 2 of the
Azusa Municipal Code (AMC) for purchasing 360 AMR meters from McAvoy & Markham.
BACKGROUND
The City stocks in its inventory residential electric meters that have AMR technology installed
for reading our residential electric customer meters. The new units of AMR will be installed or
used to:
a) replace old/defective meters that are found in the field
b) for difficult to reach premises where access is limited or restricted
c) for new residential construction
Azusa Light & Water personnel typically install several hundred of these AMR meters per year.
Approximately 4500 AMR meters have already been installed. The Purchasing Division solicited
informal bids or quote from three known vendors who sell this type of AMR meter. Only 2
vendors submitted informal bids and the results are tabulated below:
VENDOR LOCATION TOTAL BID PRICE LEAD TIME
McAvoy& Markham Irvine, CA $19,224 10 wks. ARO
One Source Distribution Buena Park, CA $25,506 10 wks. ARO
Wesco Receivables Corp. Santa Fe Springs, CA $0 (No Bid)
018
Purchase of Electric Automated Meter Reading (AMR) Meters
February 25, 2013
Page 2
FISCAL IMPACT
There is no fiscal impact to the General Fund as these AMR meters will be purchased under
Stores Inventory Account number 33000000001601. Thereafter, the purchase will be charged to
the Electric Division account as they are checked out or withdrawn from Stores.
Prepared by: T. Garcia—Buyer, Purchasing
F. Langit Jr. —Assistant Director of Electric Operations
01
•
AS.r T
LIGHT d ZURATER
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF T • SA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITI
DATE: FEBRUARY 25, 2013
SUBJECT: FEDERAL LEGISLATIVE UPDATE BY MORGAN MEGUIRE LLC
In its February report, Morgan Meguire LLC apprised Southern California Public Power
Authority (SCPPA) members on federal legislative activities ranging from Administration
Cabinet changes to adoption of new oversight plans, legislation, and priorities in cyber security
and renewable energy technology.
Some topics covered by attached reports that might be of interest to the Utility Board include the
following:
• Congressional Update, including the President's suspension of debt limit bill through
May 19 and withholding of Congressional salaries if they fail to pass a budget by April
15; and release of Energy and Commerce oversight plan for the 113`h Congress.
• San Juan Generating Station Update, where the parties stand and what future actions will
be necessary.
• Administration Changes, including John Kerry's confirmation as Secretary of State;
Nomination of REI CEO Sally Jewell to head Interior Department; and Steven Chu's
resignation as Energy Secretary by end of February.
• White House Release of Cyber Security Executive Order intended to be voluntary for
critical infrastructure networks, such as electric grid; reintroduction of Cyber bill by
House Intelligence Committee Chairman Mike Rogers; and other cyber actions.
• Nuclear Energy Update, including introduction of nuke waste legislation.
• Federal Agency Updates, including Federal Energy Regulatory Commission (FERC),
approval on settlement of North American Electric Reliability Corporation (NERC) 2012
Performance Audit.
Prepared by:
Liza Cawte, Senior Administrative Technician
Attachment: Morgan Meguire LLC February Report
055
Morgan Meguire LLC
Memorandum
TO: Bill Carnahan, Executive Director
FROM: Lori J. Pickford, Executive Vice President
DATE: February 12, 2013
RE: February Monthly Legislative Report
I. Congressional Update
Obama Addresses Climate in Second Inaugural Address
In his second inaugural address on Jan. 21, President Obama listed his legislative priorities for
the next four years, many of which will likely be echoed in his Feb. 12 State of the Union
address. He did not offer any policy specifics, though he did call for American leadership in
renewable-energy technology.
"We will respond to the threat of climate change, knowing that the failure to do so would betray
our children and future generations," Obama said. "Some may still deny the overwhelming
judgment of science, but none can avoid the devastating impact of raging fires, and crippling
drought, and more powerful storms." He acknowledged that the path to sustainable energy"will
be long and sometimes difficult."
Key Congressional Democrats and environmental groups applauded the President's remarks.
"The way the president spoke about climate change in his remarks today was exactly right.
Addressing the threat of climate change is about protecting the future for our children and future
generations, our most sacred obligation," Environment and Public Works (EPW) Chairman
Barbara Boxer(D-CA) said.
New Senate Energy and Natural Resources (ENR) Chairman Ron Wyden (D-OR) vowed to
make climate policy a part of his agenda this Congress. "President Obama has it right: the U.S.
must take practical steps on climate change. Moving to a low-carbon economy isn't just vital for
our environment, it will also strengthen America's economy and make our employers more
competitive internationally," Wyden said.
Despite this enthusiasm, the White House has provided no specifics, and the prospect of a carbon
tax or cap-and-trade legislation is close to zero. More likely is that the President will use
existing laws, and work through federal agencies to advance his climate agenda. Administrative
options available to the White House may include greenhouse gas emissions limits for existing
power plants, energy efficiency directives to the federal government, and additional incentives to
1
05
business and citizens to reduce emissions, additional appliance efficiency standards, and further
expansion of renewable development on federal lands.
Obama Signs Temporary Debt Limit Legislation
On Feb. 4, President Obama signed legislation to suspend the nation's borrowing authority limit
through May 19. The bill would also withhold Congressional salaries if the House and Senate
fail to pass a budget by April 15. The suspension was designed to protect Republican members
against having to vote for a debt ceiling increase, and Democrats went along with the concept.
Congress looks now to the next showdown—how or whether to deal with the pending deep
sequestration cuts due to take place on March 1. Although the White House and Congress
continue to communicate publicly that they are holding out hope for a solution, an increasing
amount of Capitol Hill watchers are resigned to sequestration taking place.
Also, the Continuing Resolution funding the federal government for FY13 expires at the end of
March, so lawmakers must find a way to fund the rest of the fiscal year— yet another opportunity
for Republicans and Democrats to face off over the threat of a possible government shut-down.
Energy and Commerce Releases Oversight Plan
The House Energy and Commerce Committee voted Feb. 5 to adopt an oversight plan for the
113th Congress, which includes hearings and "rigorous" oversight over matters within its
jurisdiction. The oversight will focus on: "1) cutting government spending through the
elimination of waste, fraud, and abuse and 2) ensuring laws are adequate to protect the public
interest or are being implemented in a manner that protects the public interest, without stifling
economic growth."
Although adoption of an oversight plan is normally a routine occurrence, the meeting turned into
a partisan clash over climate change. Democrats alleged that the GOP has blocked their attempts
to hold hearings on the climate threat, with Ranking Member Henry Waxman (D-CA) accusing
Republicans of"willful ignorance...the Republican Party is finally the party of choice. They
choose to be ignorant" for not focusing on the issue. Rep. Joe Barton (R-TX)responded that "To
say that we're ignorant and choose to be ignorant is a boldfaced lie."
The GOP defeated, in party-line votes, two Democratic amendments to amend the oversight plan
to call for more climate hearings, arguing that the Committee has already heard enough
testimony on climate change.
This exchange reaffirms the view of many energy reps in Washington, D.C. that any legislation
on climate change is unlikely in the 113th Congress. As mentioned above, the Administration
will pursue administrative means of promoting clean resources and emissions reductions,
working through the Environmental Protection Agency(EPA) and other agencies.
Specifically related to energy issues, the oversight plan panel will:
2
057
• Examine"issues relating to national energy policy" such as "production, supply, and
consumption of electricity, oil and natural gas, coal, hydroelectric power, nuclear power,
hydraulic fracturing, and renewable energy";
• Review of the electricity policies of DOE and the Federal Energy Regulatory
Commission(FERC) to ensure they"promote competitive wholesale power markets,
transmission, and generation infrastructure upgrades, and compliance with relevant
statutes";
• Review of the financial and other implications of DOE's decision to abandon licensing
for the Yucca Mountain repository and its potential impact on the future of nuclear
energy in the U.S., as well as an examination of Nuclear Regulatory Commission (NRC)
actions in connection with its obligations under the Nuclear Waste Policy Act;
• Review of"significant"rulemakings under the Clean Air Act and oversight of the EPA's
related decisions; general oversight of the EPA and whether its greenhouse gas regulatory
efforts are "scientifically grounded";
• Exercise its jurisdiction over cyber security to "ensure the country is well protected while
at the same time avoiding one-size-fits all approaches that hinder the flexibility of
commercial and governmental actors need to combat the rapidly evolving threats;" and
will "review the efforts of agencies within its jurisdiction to secure their networks."
Wyden and Murkowski Outline Individual Priorities in Same-Day Op-Eds
Senate ENR Chairman Wyden and Ranking Member Lisa Murkowski (R-AK) both released op-
eds in The Hill on Feb. 6.
In Wyden's "Getting natural gas right a priority,"Wyden revealed that"The committee's first
order of business will be natural gas: how it's produced, how it's used and how much of it the
U.S. should use here or send abroad." Since the time Congress last passed a major energy bill
five years ago,natural gas prices have dropped nearly in half, and the shale gas revolution has
become a major part of energy discussions, Wyden said.
Other issues of importance to the Committee this Congress include nuclear waste, revenue
sharing and natural resource issues. Wyden said he plans to work with Senate Finance
Committee Chairman Max Baucus (D-MT) to stabilize incentives and create technology-neutral
policies to support clean energy developers and reward renewable and domestic energy sources.
In Murkowski's "Reimagining America's energy policy," Murkowski said, "As we rethink our
nation's energy policies, it is important to face questions about the risks of energy and resource
development, including questions about climate change."A balancing of energy production with
standards for environmental regulation is needed. "Our nation is too often hamstrung by
burdensome regulations, delayed permits and overzealous litigation," Murkowski said, which
can prevent timely production of projects and slow investments in new technology.
Both Wyden and Murkowski express their desire to find bipartisan solutions to these energy
issues, and plan to work together this Congress to accomplish their goal of a secure and
affordable energy future.
3
058
H. San Juan Generating Station
Parties Moving Toward Agreement on Future of San Juan
Morgan Meguire has continued to keep House Energy and Commerce Ranking Member Henry
Waxman's staff apprised of regional haze developments with regard to the San Juan Generating
Station (SJGS), the State of New Mexico, the EPA, and the plant operator Public Service of New
Mexico (PNM). While nothing has been announced publically, an agreement is close, with all
parties currently working to finalize an Agreement in Principle.
There are significant legal and political complexities over the alignment of dates for approval of
a revised State Implementation Plan and withdrawal of the Federal Implementation Plan,.
Further, there are multiple owners, including five SCPPA cities, which must come to additional
agreements on their continued ownership.
SCPPA members will need to work on a binding agreement with PNM once the larger agreement
is announced to decide how to manage decommissioning and liability issues associated with their
current investment in SJGS.
III. Administration Changes
Kerry Confirmed as Secretary of State
John Kerry was easily confirmed by the Senate on Jan. 29 as the new Secretary of State, to
replace retiring Hillary Clinton. The vote was 94-3, with Kerry voting"present." Republicans
Jim Inhofe(OK), John Cornyn (TX), and Ted Cruz (TX) voted no.
During his confirmation hearing, Kerry, a long-time advocate for climate change, said "For all
the changes that are taking place to agriculture, to our communities, to the ocean and so forth,
then we're just ignoring what science is telling us. So I will be a passionate advocate about this
[climate change]."
Many environmentalists are happy about the Kerry appointment and believe he will use his new
post to promote energy use and energy efficiency measures to fight global warming.
Sierra Club Executive Director Michael Brune said, "Now, one of the strongest champions for
climate action in the Senate will be our nation's top climate negotiator. We are excited that he
will bring his strong credentials on climate to the critical decisions facing our planet, including
increasing access to affordable clean energy options and stopping the expansion of dirty tar sands
and coal worldwide."
Climate change opponents, including Sen. Inhofe, are unsettled by the confirmation. "Kerry has
been a strong advocate for U.S. action on climate change," Inhofe said. "While these discussions
of a legislative solution have proved to be pointless since the Senate defeated global warming
legislation in 2009, the topic remains a high priority for the international community. I expect
Kerry will spend a significant amount of his time supporting the United Nations with a revived
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Kyoto Treaty to combat climate change, which would be devastating to every facet of our
economy."
After President Obama's prominent mention of climate change in his inaugural address, many
have speculated about how he will try advance that policy goal. Chances of any kind of climate
change legislation passing in the 113th Congress are "slim to none." Most observers expect the
Administration to look for additional administrative actions it can take to reduce greenhouse gas
emissions and promote clean technologies. That will likely include asking a number of agencies,
including the Department of State, what initiatives they can undertake under existing authorities.
REI CEO Nominated for Interior Post
On Feb. 6, President Obama announced his nomination of REI CEO Sally Jewell to head the
Interior Department, calling her"another strong and capable leader"in the tradition of Ken
Salazar. "She is an expert on the energy and climate issues that are going to shape our future ...
She knows the link between conservation and good jobs."
REI is a membership cooperative chain of stores, based in Washington State, which sells outdoor
equipment, clothing, and other gear.
Jewell, a mechanical engineer who began her career with Mobil Oil, worked as a banker before
heading REI. She is an unconventional choice for a post oftentimes filled by Western
politicians, and has not held elective office, so there may be concern from some that she lacks
the political experience and broad knowledge of issues confronting Interior.
Because her predecessors, like current Secretary Salazar, often came to the job with their own
political base, there is speculation that Jewell's selection may signal that Interior decisions may
become more centralized from the White House.
Jewell's strengths reportedly include her management skills and support for outdoor recreation
and habitat conservation. In 2011, Jewell introduced President Obama at the White House
conference on "America's Great Outdoor Initiative," an effort launched in 2010 to reshape U.S.
conservation policy. Jewell has pushed for land conservation both in Washington state, where
she lives, as well as nationally.
Her selection comes after recent heavy criticism in the media that diversity in President Obama's
cabinet has given way to the selection of white males as senior Administration positions
turnover, as is often the case following re-election to a second term.
Environmentalists are praising her nomination, with Wilderness Society President Jamie
Williams calling her"a tremendous leader for conservation at every level." Natural Resources
Defense Council President Frances Beinecke said Jewell "has the mind of an engineer, the heart
of an environmentalist and the know-how of a businesswoman."
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Western Energy Alliance President Tim Wigley praised the selection as well. "Her experience as
a petroleum engineer and business leader will bring a unique perspective to an office that is key
to our nation's energy portfolio."
However, House Public Lands and Environmental Regulation Subcommittee Chairman Rob
Bishop (R-UT) expressed"reservations"about Jewell. Although he said he respects her business
expertise, he raised concerns over support REI has given to certain groups' "radical political
agendas." Bishop said he would be working with GOP Utah Sens. Orrin Hatch and Mike Lee to
ensure that Jewell's record is "fully vetted."
Additionally, there is some concern by other Republicans over her tenure as a board member for
the National Parks Conservation Association, and a list of lawsuits filed by the environmental
group since she joined it in 2004 is reportedly circulating to Senate offices.
Chu Announces Resignation Plans
In a memo to agency staff made public Feb. 1, Energy Secretary Steven Chu announced that he
informed President Obama a few days after his re-election that he intends to resign once a
successor is confirmed, and return with his wife to academic life in California. He will stay on
board at least until the end of the ARPA-E Summit at the end of February.
He also praised former Washington Gov. Christine Gregoire (D)—who has been rumored as a
potential successor to Chu at DOE— for coordinating efforts to clean up the Hanford nuclear
waste treatment site.
"We have invited ecologists in the State of Washington to join in our frank discussions and the
DOE team is rebuilding trust that had broken down over the past decade. I am especially
appreciative of Governor Gregoire for her trust and support over the past six months," Chu said.
In addition to Gregoire, Massachusetts Institute of Technology professor Ernest Moniz is also
rumored to be a top candidate.
A handful of other names are attracting attention in Washington energy circles as possible Chu
replacements, including former Michigan Gov. Jennifer Granholm (D) former Sen. Byron
Dorgan (D-ND), and former Colorado Gov. Bill Ritter(D).
IV. Cyber Security
White House Poised to Release Executive Order on Cyber
On Feb. 12, the Obama Administration announced it will hold a cybersecurity event on
Wednesday(2/13) to highlight the release of an Executive order on cybersecurity. It will be held
at the Department of Commerce, and include Deputy Secretary of Commerce Rebecca Blank and
other senior officials, including Michael Daniel, Special Assistant to the President and White
House cybersecurity coordinator; Gen. Keith Alexander, Commander of U.S. Cyber Command;
Jane Holl Lute, Deputy Secretary with the Department of Homeland Security; James M. Cole,
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Deputy Attorney General with the Department of Justice; and Dr. Patrick Gallagher,
Undersecretary of Commerce for Standards and Technology and Director of the National
Institute of Standards and Technology, Commerce.
According to The Hill, the Executive order would create a voluntary cybersecurity program for
critical infrastructure networks, such as the electric grid. It reportedly will allow electric utilities,
to opt into an initiative that outlines best standards and practices for preventing attacks on
networks.
The White House is moving forward given the lack of progress on this issue in the U.S. Senate
when a comprehensive "voluntary"bill failed twice late in the last Congress.
As for the electric utility sector coalition, there has been broad support for targeted legislation,
increasing FERC authority over imminent threats, expediting security clearances for experts
within the power systems, and provisions that will allow the private sector to share information
with the government, and vice versa, without concern for liability implications. However, the
Senate bill, while titled as "voluntary,"would have provided DHS with the authority to interfere
with the current mandatory and enforceable process currently in place between industry, NERC
and FERC.
FERC Chairman Jon Wellinghoff has encouraged Congress to provide them with broader
authority over the bulk electric system to protect against attacks. Industry has suggested that the
current process, while not perfect, is effective and iterative—allowing industry to provide real
time information on vulnerabilities that change constantly.
Rogers to Hold Cyber Hearing This Week to Re-introduce Cyber Bill
On Feb. 14, the House Intelligence Committee will hold a hearing on "Advanced Cyber Threats
Facing our Nation." It will focus on"the state of cyber threat information sharing between the
U.S. government and private sector, as well as cyber information sharing within the private
sector,"the panel said in a release obtained by Politico.
Witnesses will include: former Gov. John Engler, President of the Business Roundtable; Ken
DeFontes, president and CEO of Baltimore Gas and Electric; Paul Smocer, president of BITS;
and Kevin Mandia, CEO of Mandiant.
The hearing announcement follows a Jan. 29 meeting at which Intelligence Chairman Mike
Rogers (R-MI)told a group of about 20 that he plans to reintroduce his Cyber Intelligence
Sharing and Protection Act(CISPA), the cyber security information sharing bill that he
championed, and that passed the House in 2012.
Participants included members of the electric sector cyber coalition and representatives of other
critical infrastructure sectors that supported CISPA last year.
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He asked the group to let him know if the bill needs any revisions, and expressed optimism about
its chances of being enacted in the 113th Congress. Citing heightened media, Congressional, and
business awareness of cyber threats from foreign countries, and recent attacks on entities
including DOE and The New York Times, Rogers said he had received expressions of support
from Senators who had not favored an information-sharing only approach previously.
Rogers gave a similar message at the Feb. 6 NARUC conference, and urged attendees to lobby
against hard mandates on critical infrastructure even though the Obama Administration is
preparing an executive order meant to cover power plants, water systems and other such entities.
Rockefeller Staff Report: Private Sector Supports Voluntary Cyber Standards
Senate Commerce Committee Chairman Jay Rockefeller(D-WV), a co-sponsor of the failed
"Cybersecurity Act of 2012"(S. 3414) in the 112th Congress, released a Jan. 28 staff memo
summarizing the approximately 300 responses that his office received to questions posed to
Fortune 500 companies in a Sept. 19, 2012 letter about their cyber security practices and views
on the Senate legislation.
Rockefeller's intent in sending the letter was to be able to say that the U.S. Chamber of
Commerce, which fiercely opposed S. 3414, was not accurately reflecting its members' views.
Publication of the report is intended to reinforce that message, and to try to build some support
for a cyber bill in the business community.
According to the report (which does not identify companies by name), "overall,"the
approximately 300 responses show that companies' responses showed that the private sector is
supportive of Congress' interest in passing cyber legislation. The companies support the goals of
the legislations, staff said, especially regarding information sharing between the private sector
and the federal government.
Concerns raised about the bill were not about whether the federal government should have a
cyber security role, staff wrote,but how that role would impact the ability of companies to
respond to cyber challenges. However, many companies also raised concerns "about any new
federal program that would set mandatory cybersecurity requirements, create obligations that
would impact their ability to address cybersecurity issues in a flexible manner, or duplicate
efforts already underway," according to the report.
The summary does note that some companies expressed opposition to voluntary standards, and
others expressed concern about a voluntary program that could turn into a mandatory program.
Regarding the proposed voluntary program to develop cyber security best practices, the report
said that companies concerns "were primarily related to the potential development of an
inflexible, `one-size-fits-all' set of best practices, and companies in the financial and electric
sectors in particular expressed concern that their existing regulatory relations would be
disrupted,"the staff wrote. "Other common concerns included the need to adequately protect
the confidentiality of information shared with the federal government during cyber threat
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assessments, and whether current critical infrastructure programs, such as DHS's National
Infrastructure Protection Plan, would be needlessly duplicated."
In response to the memo, Chamber national security VP Ann Beauchesne said "Voluntary
standards sound great in theory, but the devil is in the details. Whether a new cybersecurity
program is labeled regulatory or `voluntary,' the fact is government officials will have the final
word on the standards and practices that industry must adopt, which the Chamber opposes."
Because of the responses, staff recommended that Rockefeller continue working to advance
cyber security in the 113th Congress, and because companies "were generally supportive of your
efforts,"the concerns could be addressed by introducing a revised bill this year.
Waxman-Markey Cyber Letter
House Energy and Commerce Committee Ranking Member Waxman and Rep. Ed Markey(D-
MA), a senior member of the panel, sent a Jan. 17 letter to private power companies, co-ops, and
public power utilities requesting information on their efforts to protect their assets from cyber of
physical attack or geomagnetic storm.
Markey has consistently questioned utilities' practices on cybersecurity and has been a voice for
more government regulation in this area.
Last fall, Senate Commerce Committee Chairman Rockefeller sent a similar cyber security
inquiry to all Fortune 500 companies. The Waxman-Markey letter is more focused on the
electric industry, and asks questions related to:
• Whether—or why not—companies are implementing the September 2010
recommendations by the North American Electric Reliability Corporation(NERC),
recommendations in response to the Aurora malware threat and March 2010 NERC
recommendations to address an FBI warning about ability for cyber intruders to remotely
gain access to utility assets; and how the companies responded to any grid reliability
notices by NERC over the last five years;
• Steps taken to address risks from cyber vulnerabilities from malware;
• Whether the companies utilize hiring practices to assess whether employees pose insider
threats, and whether there are any job duties not permitted to be conducted by foreign
nationals;
• The amount of large transformers utilized by the utility and whether any other entities
have competing claims to them in the event of a cyber attack or disaster;
• The number and nature of any cyber attacks on the entity and whether they were reported
to NERC, FERC, the Department of Homeland Security(DHS)or other authority.
• Steps taken to protect against geomagnetic storms;
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• How many employees in the last five years are primarily focused on cyber security and
the titles of those employees;
• Whether the entities have identified all of its critical assets based on the"bright line"
criteria as part of the Version 4 CIP standards, and whether the current FERC CIP
standards are adequate; and
• Whether each company conducts exercises to assess its ability to respond to cyber
attacks, as well as descriptions of the simulations.
V. Nuclear Energy
Wyden, Feinstein to Introduce Nuke Waste Legislation; House Focus on Yucca
Senate ENR Chairman Wyden told media Feb. 4 that he is readying legislation with several
colleagues to develop nuclear waste storage legislation.
Wyden also said that he met,with ENR Ranking Member Murkowski and Sens. Dianne Feinstein
(D-CA) and Lamar Alexander(R-TN), who each worked together last Congress to develop a
consensus. The legislation should be ready"in a matter of weeks,"he said. "It's clear to me the
country needs a more permanent solution for the disposal of nuclear waste from both nuclear
power plants and nuclear weapons installations like Hanford."
Murkowski added that there was "general consensus" among the four about moving forward
with interim storage sites while advancing the more difficult process of finding a permanent
repository. Feinstein developed such a plan last year that has languished in an un-passed FY13
appropriations bill, and Murkowski said that the new legislation could mirror Feinstein's interim
storage measure.
Wyden confirmed the new bill could move forward with temporary storage sites while launching
the process of finding a permanent solution, but added that any temporary site would not be a
substitute for a permanent repository.
Speaking Feb. 5 at the NARUC winter meeting, Assistant Energy Secretary for Nuclear Energy
Pete Lyons said he's "extraordinarily optimistic" about the four senators' efforts. According to
Politico, Lyons endorsed "some form of linking" waste storage sites to action on a permanent
repository.
Four states, including New Mexico (he didn't mention the others) have expressed interest in
hosting an interim or permanent waste storage site, Lyons also said, according to E&F News. He
added that New Mexico officials have said that there would have to be careful study of the salt
beds there.
Wyden's and Lyons' comments about the need for a permanent repository are possibly linked to
the uphill fight to get the House to approve any Senate-passed measure.
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House Environment and the Economy Subcommittee Chairman John Shimkus (R-IL) has said
that any legislation to establish interim storage sites would be contingent upon explicit language
re-establishing the Yucca Mountain repository. A House-Senate fight over Yucca Mountain
could,potentially, delay or derail a bill to implement the recommendations of the Blue Ribbon
Commission, which included the development of one or more interim storage sites.
Shimkus' statement puts the fate of legislation authorizing interim storage in doubt. "No interim
storage provision, I believe, will move without a connection to Yucca Mountain— so whoever
is writing that it is and has a chance, they're not talking to the House side," Shimkus told
reporters.
VI. FERC,NERC Developments
FERC Approves Settlement on NERC 2012 Performance Audit
On Jan. 16, FERC approved a settlement agreement between its Office of Enforcement and
NERC to resolve all issues related to a 2012 performance audit of the electric reliability
organization. The settlement resolves all outstanding contested recommendations by the staff,
which related to, among other things, unbudgeted expenditures, the granularity of NERC budget
filings, and employee time and expense tracking.
In a FERC/NERC joint press release, FERC Chairman Jon Wellinghoff indicated that "This
settlement will help us at the Commission, and the industry through NERC, move on with the
important work of overseeing the reliability of the nation's bulk electric system. Implementing
these improvements will help to keep the focus on reliability." Gerry Cauley, NERC President
and Chief Executive Officer said improving"internal process and procedures"with help build "a
strong and effective ERO"to support the overall mission of ensuring the reliability of the bulk
power systems.
In 2011, FERC initiated a performance audit to evaluate NERC's budget formulation,
administration and execution, focusing on the costs and resources used to achieve its program
objectives. The May 4, 2012 final audit report made 42 recommendations in 11 broad areas,
including the NERC budget process, compensation and expenses, and information sharing and
analysis. NERC subsequently contested the audit report's findings and recommendations.
Both the content of the audit and the fact that it was issued by FERC staff, instead of by the
Commission itself, were very controversial. APPA and NRECA filed joint comments with the
Edison Electric Institute and others, saying that the level of scrutiny FERC staff was seeking
would "enmesh the commission in NERC's management decision making...while restricting
important activities NERC has undertake in support of industry reliability."
The settlement puts a very public disagreement between the two agencies behind them, allowing
them and the electric industry to focus on ensuring electric reliability.
Energy Think Tank Would Change 2005 Transmission Siting Provision
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In a Feb. 7 event in Washington, DC, former Rep. Rick Boucher(D-VA), Natural Resources
Defense Council Director Allison Clements, and former FERC Chairman Curt Hebert, along
with the Bipartisan Policy Center(BPC), announced the"Electric Grid Initiative,"which makes
recommendations for changes aimed at improving grid reliability. Among them, BPC says
Congress should grant the FERC enhanced power to approve interstate transmission lines over
states' objections.
BPC's proposed change would erase a provision in the Energy Policy Act of 2005 that requires
DOE to first declare a region's grid congested before FERC can step in. Lawsuits have held up
DOE's ability to make that kind of determination.
The new report suggests that FERC be allowed to directly intervene only in high-voltage
transmission projects in which a state has rejected a line without giving an alternative route, has
failed to make a decision within 18 months of receiving an application, lacks authority to
approve a project, or the project has been approved by a state siting authority in another state.
The approach "seeks to make backstop authority available only with respect to a narrow category
of high voltage projects and seeks to leave states ample authority to oversee route selection and
protect environmental resources," the report says.
This Initiative is the result of a year- long effort to develop policy recommendations that enhance
the efficiency and reliability of the U.S. electric grid. BPC convened a diverse and bipartisan
task force of stakeholders from energy companies, public utility commissions, regional
transmission organizations, academia, and non-governmental organizations. The task force
developed recommendations in four broad policy areas: (1) encouraging efficient transmission
and distribution investment, (2) advancing planning and operational coordination across
jurisdictions, (3) enabling a more flexible and resilient system, and (4) monitoring and enhancing
operational reliability.
NARUC, which contributed to the BPC report without endorsing any of its recommendations,
underscored its strong opposition to "the expansion of the federal government's authority to site
transmission facilities." Their position is based on a 2009 resolution.
Boucher said the current system for federal siting authority in congested areas is "broken." He
said the 2005 siting provision has "simply not functioned." But overall, the "single greatest
reason" for Congress to restructure FERC's backstop siting authority is the number of state
renewable portfolio standards adopted since the 2005 energy law was passed, he said, noting that
transmission congestion has also markedly increased.
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G Nr
AZUSA
lIG+IT R 'NATER
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF T- • 'USA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITI
DATE: FEBRUARY 25, 2013
SUBJECT: OVERVIEW OF AZUSA LIGHT & WATER ORGANIZATION
Attached, for the Utility Board's information, is an organizational chart depicting the various
functional areas of the Azusa utility.
Prepared by: George F. Morrow, Director of Utilities
Attachment: ALW Organization Chart
AZUSA LIGHT&WATER ORGANIZATIONAL CHART
DIRECTOR OF UTILITIES
Consumer Services -111r—'
Water ss
•
Administration Electric Power Resources
Field Customer Resource Daily
Engineering Engineering
Services Services Dev't Operations
Filtration Distribution Metering& Distribution
Plant System Substation System
Budget& Facilities Legislative&Customer
Utility Board Refuse g Programs&
FinancialBus.Dev't Management Regulatory
O
C)
'J.
A?US.A
LIGHT E WATER
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF T • "dr USA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES 1
DATE: FEBRUARY 25, 2013
SUBJECT: "WHAT IS THE SMART GRID?" VIDEO
For Utility Board background on the utility industry's modernization program, a three minute
video by Scientific American will be played.
http://www.youtube.com/watch?v=-8cM4WfZ_Wg
Prepared by: George F. Morrow, Director of Utilities
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