HomeMy WebLinkAboutAgenda Packet - March 25, 2013 AZUS.A
11611 d'd'ATER
AGENDA
REGULAR MEETING OF
AZUSA UTILITY BOARD
AZUSA LIGHT & WATER MARCH 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
EDWARD J.ALVAREZ 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. UTILITIES DIRECTOR COMMENTS
C. UTILITY BOARD MEMBER COMMENTS
1. Election of Officers. Recommendation: Elect by majority vote a Chairperson and Vice Chairperson to
serve as officers of the Utility Board.
D. 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 February 25, 2013 as written.
2. Minutes. Recommendation: Approve minutes of special meeting on March 4, 2013 as written.
3. Acceptance of Grant of Easements from KB Home Coastal Inc. and Cityview Rosedale 98,LP.
Recommendation: Adopt the following resolution for each of the easement locations included in the
report:
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA
ACCEPTING A CERTAIN GRANT OF PERMANENT EASEMENT AND DIRECTING THE
RECORDING THEREOF.
4. Approval of Amendment of Blanket Purchase Order for Hunter Electric. Recommendation:
Approve the amendment to Hunter Electric blanket purchase order for FY 2012-2013 in amount of
$25,000 for routine and emergency electrical repairs at water facilities.
5. Approval of Scope of Inspection Services for Electric Facilities and Authorization to Solicit
Proposals. Recommendation: Approve the Scope of Inspection Services for electric facilities at
Rosedale Subdivision; and authorize staff to solicit proposals (RFP).
6. Authorization to Register Azusa with GHG Auction Administrator and to Post $500K Security.
Recommendation: Authorize the Director of Utilities to register with Markit North America's Auction
Platform (MAP) as provided for by the California Air Resources Board (CARB) and administer, either
directly or through his designee(s), trading activities associated with the account; and post $500K
collateral for the purpose of participating in CARB's May 16, 2013 Greenhouse Gas (GHG) auction.
7. Selection of Law Firm to Represent Azusa Light & Water in Litigation Concerning Loans Made to
the Former Redevelopment Agency. Recommendation: Select a law firm to represent the Azusa Light
& Water Utility in litigation against the State Department of Finance and Los Angeles County concerning
loans made to the former Redevelopment Agency.
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E. SCHEDULED ITEMS
1. Approval of Scope of Work for Customer Service Phone System and Authorization to Issue
Request for Proposals(RFP). Recommendation: Approve the scope of work for customer service
phone system and authorize staff to issue request for proposals.
2. Approval to Purchase 31 Megawatt of Required Local Resource Adequacy Capacity for 2014 from
NRG Energy. Recommendation: Approve a Local Resource Adequacy Capacity purchase of 31 MW
for calendar year 2014 from NRG Energy in amount of$1,116,000; and authorize the Director of Utilities
to execute the associated Confirmation Agreement once the executable copy is prepared.
F. STAFF REPORTS/COMMUNICATIONS
1. Update on Electric Vehicles/Charges
2. Second Quarter Budget Report for Electric and Water Funds for FY 2012-2013
3. Map of Completed Water Line Projects
4. Water Supply Update(Verbal)
5. Potential Procurement of Energy Hedge(s) for Summer 2013
6. 2012 APPA Accomplishments
7. Proposed National Recreation Area Designation of the San Gabriel Mountains and River
G. 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."
3
APPROVED
Date 3/aS/i3
(kiwi Wt wd e
Ce.
AZUSA
r.o, warry
ELECTION OF OFFICERS
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE • USA UTILITY
BOARD /
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: MARCH 25, 2013
SUBJECT: ELECTION OF OFFICERS
RECOMMENDATION
It is recommended that the Utility Board elect by majority vote a Chairperson and Vice Chairperson
to serve as officers of the Utility Board.
BACKGROUND is R-PPo i vt r -e_4 -t'ke t Cpovhe.i i
rs 6vrre Ktti1'
The Utility Board was formed in May 2001 pursuant'to Ordinance 01-03, which was later amended
by Ordinance 01-07. The Utility Board is' omposed of City Council Members acting as Utility
Board Members, with the Director of Utilities serving as executive advisor to the Board. The Utility
Board meets monthly on the fourth Monday of each month in the downstairs conference room at
Azusa Light &Water offices to conduct business related to the City's electric and water utilities.
Section 2-415 of the Azusa Municipal Code requires the Utility Board to elect a Chairperson, Vice
Chairperson, and a Secretary annually no later than the second meeting following appointment of the
Mayor Pro Tern by the City Council. Since new Mayor Pro Tem was selected on March 18, 2013,
the Utility Board must elect by majority vote a Chairperson and Vice Chairperson. The functions of
Secretary are delegated to the City Clerk.
FISCAL IMPACT
There is no fiscal impact of electing officers.
Prepared by: Cary Kalscheuer, Assistant Director-Customer Care & Solutions
Attachment: Ordinance 01-07
006
•
ORDINANCE NO.01-O7
AN ORDINANCE OF THE CITY OF AZUSA, CALIFORNIA,
AMENDING CHAPTER 2, ARTICLE V,DIVISION 5 OF THE
MUNICIPAL CODE REGARDING THE COMPOSITION,
OFFICERS,POWERS AND DUTIES OF THE UTILITY BOARD
THE CITY COUNCIL OF THE CITY OF AZUSA,CALIFORNIA,DOES
ORDAIN AS FOLLOWS:
SECTION 1. Chapter 2,Article V,Division 5,Section 2-413 of the Azusa
Municipal Code is hereby replaced,in its entirety,with the following:
"Sec.2-413 Composition. The board shall consist of five members. The city
council may choose by a majority vote of the council to appoint its five members
as the ex officio members of the board. All members shall be appointed by a
majority vote of the city council and shall serve pursuant to section 2-32.
Members of the board may be removed pursuant to section 2-32."
SECTION 2. Chapter 2,Article V,Division 5,Section 2-414,of the Azusa
Municipal Code is hereby replaced,in its entirety,with the following:
"Sec. 2-414 Powers and Duties. When the board members are acting in their
capacity as both members of the board and members of the city council,the board,
acting jointly with the city council,shall have the following powers and duties:
1. To establish electric power and water rates,capacity and connection
charges,meter charges and such other fees and charges as may be appropriate and
to generally regulate,control,manage,renew,repair and extend the water system
and the electric power generation and distribution system of the City of Azusa.
2. To make rules and regulations governing the conduct of the board and its
members and the employees of Azusa Light and Water.
3. To control and order the expenditure of all money received from the sale
or use of water and electric power for defraying of expenses,maintenance,repairs,
construction,extension and operation of the water and electric power system and
for any expenses for additions to same.
4. To supply Azusa Light and Water's customers with water and electric
power for any and all purposes and adopt all necessary rules and regulations for
the provision of service.
5. To enter into contracts with any public or private agency for the exchange
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007
•
of water or electric power, provided that any such water or electric power so
exchanged by the city shall be repaid in full to the city within a reasonable period.
6. To hold, lease, acquire and purchase property in the name of the city.
7. To dispose of property surplus to the needs of the water or electric power
systems,provided that any sale, lease or disposal of its assets, including property
used in the generation of electrical energy, other than those unnecessary to the
operation of the water and electric power systems.
8. To engage such legal services as may be required or require the services of
the city attorney."
SECTION 3. Chapter 2,Article V,Division 5, Section 2-415 of the Azusa
Municipal Code is hereby replaced, in its entirety, with the following:
"Sec. 2-415 Chairperson. Vice Chairperson and Secretary The board shall elect
one of its members as chairperson, one as vice chairperson, and one as secretary.
Each of these three (3) board officers shall hold office for one(1) year and until
their successors are appointed. Initially, officers shall be selected no later than the
second meeting of the board following its appointment. Subsequent selection of
officers shall occur no later than the second meeting following the selection of the
mayor pro tern of the city council. The secretary may delegate to the city clerk
duties such as making tape or other recordings of meetings of the board and
developing draft Minutes of such meetings for consideration and possible
approval by the board."
SECTION 4. Chapter 2, Article V,Division 5, Section 2-418 of the Azusa
Municipal Code is hereby replaced, in its entirety,with the following:
"Sec. 2-418 Budget. While the board members are acting in their capacity as
both members of the board and members of the city council, the board shall
initially adopt a budget for Azusa Light and Water within four months of its first
meeting, and thereafter shall annually adopt a budget for Azusa Light and Water,
showing the expected expenses and revenues of the water and electric power
enterprise. The city manager will present the budget to the board for adoption.
The annual budget shall be incorporated into the budget of the city."
SECTION 5. Chapter 2, Article V,Division 5, Section 2-419 of the Azusa
Municipal Code is hereby replaced, in its entirety, with the following:
"Sec. 2-419 Loans. While the board members are acting in their capacity as
both members of the board and members of the city council, the board may
approve and authorize loans to or from the funds subject to its control from or to
RVPUBUFF\618015
008
city funds on a temporary basis."
SECTION 6. Severability. If any section, subsection, sentence, clause, phrase or
portion of this ordinance is for any reason deemed or held to be invalid or unconstitutional by the
decision of any court of competent jurisdiction, such decision shall not affect the validity of the
remaining portion of this ordinance. The city council hereby declares that it would have adopted
this ordinance and each section, subsection, sentence, clause,phrase or portion thereof,
irrespective of the fact that any one or more sections, subsections, sentences, clauses,phrases or
other portions might subsequently be declared invalid or unconstitutional.
SECTION 7. This ordinance shall be in full force and effect thirty(30) days after
its passage.
SECTION 8. A summary of this ordinance shall be published in the manner
required by law.
PASSED,APPROVED AND ADOPTED ,Ani. day of October, 2001.
,/ / ,, /
Cristina Cruz-Madrid
Mayor
ATTEST:
Vera Mendoza, City Clerk
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009
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I, Vera Mendoza, City Clerk of the City of Azusa, do hereby certify that the
foregoing Ordinance No. 01-07 was duly introduced and placed upon its first reading at a
regular meeting of the City Council on the 17 day of September2001, and that thereafter, said
Ordinance was duly adopted and passed at a regular meeting of the City Council on the i day
of October , 2001, by the following vote, to wit:
AYES: COUNCILMEMBERS: HARDISON,STANFORD,ROCHA,CHAGNON,MADRID
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
_ ,e A7-1,0,
Vera Mendoza,
City Clerk
APPROVED AS TO FORM:
4 , ,
674, . 0,6-i4,11,--
Ci y Attorney
RVPUBVFF1618015
010
EXCERPTS FROM ORDINANCE 01-03
Sec.2-416 Meetings. The board shall establish a regular time and place of meeting and
shall meet regularly at least once a month or more frequently as workload requires. The regular
place of meeting shall be in the Azusa Light and Water building. At least once every three (3)
months, or more frequently if the board desires,the board may meet in other places and locations
throughout the city for the purpose of encouraging interest and facilitating attendance by people in
the various neighborhoods in the city at the meetings.
Special meetings may be called by the chairperson or by three (3) members of the
board, upon personal notice being given to all members or written notice being mailed to each
member and received at least 36 hours prior to such meeting,unless such notice is waived in writing.
All board meetings,and agendas for such meetings, shall be publicized in advance
by written notice given to newspapers serving the city at least three(3)days prior to regular meetings
and at the same time as members are notified of special meetings. In addition, notice of meetings,
shall be posted regularly at locations normally utilized by the city for such purposes.
All meetings shall be open to the public pursuant to the provisions of the Ralph M.
Brown Act. (Gov. Code § 54950 et seq.) The board shall cause to be kept a proper record of its
proceedings. The records and files of the board and its officers shall include,but not be limited to,
all official correspondence,or copies thereof,to and from the board and its members received in their
official capacities and shall be kept open for inspection by the public at reasonable times in the office
of the city clerk.
Sec.2-417 Technological Support. The members of the board may receive technological
support in the form of hardware,software or reimbursement for telecommunications services used
in connection with serving on the board. Members shall also be reimbursed for any reasonable and
necessary expenses incurred by them in the performance of their duties as members of the board.
011
APPROVED
Date 3 1.)4/ ko,,
* 1111, 111AZ USA
fill T4 1. tRarrp
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: MARCH 25, 2013
SUBJECT: APPROVAL OF $25,000 AMENDMENT BLANKET PURCHASE ORDER TO
HUNTER ELECTRIC SERVICE, INC.
RECOMMENDATION
It is recommended that the Azusa Utility Board authorize an amendment in the amount of
$25,000 to the blanket purchase order issued to Hunter Electric Service, Inc. for the fiscal year
ending June 30, 2013.
BACKGROUND
Hunter Electric Service, Inc. is the Water Division's contract electrician who does electrical
work on the Water Division's electrical equipment (mostly water production equipment) on an
"as-needed" basis for the Water Division. For this fiscal year, Hunter Electric was approved for
a blanket purchase order of $24,999 and they have completed the Electrical and
Control Improvements needed for the Liquid Potassium Permanganate Capital Improvement
Project for $23,703.74. This additional request for blanket purchase order amendment will be
needed for the remainder of the fiscal year for routine and emergency electrical repairs at the
water facilities including the filtration plant.
FISCAL IMPACT
Fiscal impact will be up to $25,000 for a total amended purchase order of $49,999. Funds are
available in the Water Division's outside services and repair budget.
Prepared by: Chet F. Anderson, P.E., Assistant Director-Water Operations
041
APPROVED
Date 30.;19-(2))101
4.1.160
AZUSA
LIGHT H WATER
Pi--
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA
UTILITY BOARD
FROM: GEORGE MORROW, DIRECTOR OF UTILITIES
DATE: MARCH 25, 2013
SUBJECT: AUTHORIZATION TO REGISTER AZUSA WITH GHG AUCTION
ADMINISTRATOR "MARKIT NORTH AMERICA" AND TO POST
$500K AUCTION SECURITY FOR THE PURPOSE OF
PARTICIPATING IN THE CALIFORNIA AIR RESOURCES
BOARD'S MAY 16, 2013 AUCTION OF GHG ALLOWANCES.
RECOMMENDATION
It is recommended that the Utility Board authorize the Director of Utilities to register
with Markit North America's Auction Platform (MAP) as provided for by the California
Air Resources Board (CARB) and administer, either directly or through his designee(s),
trading activities associated with the account and post $500K collateral for the purpose of
participating in CARB's May 16, 2013 Greenhouse Gas (GHG) auction.
BACKGROUND
In 2006, Assembly Bill 32 (AB32), the Global Warming Solutions Act of 2006, became
law. Key objective of the law is to limit emission of green house gases (GHG) in
California to 1990 levels by the year 2020.
CARB developed regulations and market mechanisms through which GHG emission
reductions would be achieved. The Cap-and-Trade program is a cornerstone component
of such CARB-developed GHG market mechanisms. The Cap-and-Trade program
became effective on January 1, 2012 and covers the term though December 31, 2020.
Enforcement of the program began on January 1, 2013.
Under Cap-and Trade, "covered entities" (i.e. entities subject to enforcement under the
program) are given the "right" to emit limited volumes of CO2 equivalent greenhouse
044-
GAG Auction Registration and Security Posting
March 25,2013
Page 2
gases per year. The right to emit is conveyed by means of Allowances -- issued,
controlled and awarded to covered entities by the CARB.Based on given entity's historic
CO2 emissions,covered entities are awarded a number of free annual Allowances for the
years 2013-2010.The volume of free Allowances declines linearly such that the overall
decline during the 2013 to 2020 period is about 15%.Covered entities whose emissions
exceed their award of free Allowances will need to buy Allowances(or carbon Offsets)
from the market or face steep CARB penalties.
In accordance with Cap-and Trade rules,a covered entity,such as Azusa,has to register
with CARB and open CARB accounts for Allowance holding, transferring, selling,
buying and surrendering—Azusa already did so based on the authority granted by the
Utility Board on January 23,2012.
In addition to this particular registration, CARB further requires registration with
Compliance Instrument Tracking System Service(CITSS)for the purpose of receiving,
administering,and tracking ownership of Allowances and other compliance instruments.
Based on the authority granted by Utility Board on July 23,2012,Azusa registered with
CITTS.Upon registration with CITSS,CARB establishes for the registered entity three
CITSS sub-accounts, as follows: Compliance Account for receiving free allocated
Allowances and holding the free allocated and purchased Allowances for the sole purpose
of surrendering such to CARB in compliance with AB 32 & cap-and trade program;
Limited Use Holding Account for receiving free allocated Allowances for the sole and
limited purpose of subsequent selling such via CARB's GHG auction (s); Holding
Account for placement of Allowances bought from CARB's GHG auctions or secondary
markets,indefinite holding of purchased Allowances either for resale or transfer of such
to Compliance Account for the purpose of surrendering such to CARB for compliance.
Should an entity elect or need to buy Allowances through or directly from CARB,the
entity must register and participate in CARB's quarterly auction(s)conducted via Markit
North America Trading Platform (MAP). It should be stated that GHG Allowances
intended to"cover"electricity imports into the ISO in excess of the covered entity's load
("net ISO sales")must be procured from CARB or the secondary markets and cannot be
surrendered directly from the CITSS Compliance Account. Moreover, although the
design of CARB's cap-and trade program provides for owners of jointly owned resources
to transfer GHG Allowances directly from their CITSS Compliance Accounts,in certain
situations the program limitations require entities to sell-and-buy-back their freely
allocated Allowances before transferring such to the jointly owned project accounts,such
as Lodi Energy Center. With the foregoing in mind, Staff desires to participate in
CARB's May 16,2013 auction for the purpose of the simultaneous buying and selling of
20,000 GHG Allowances.
In order to participate in the May 16,2013 auction,Azusa has to register a Primary and
Alternate Account Representative with the auction operator and post an estimated
$500,000 buyer security. The buyer security needs to be posted regardless and
045
GHG Auction Registration and Security Posting
March 25, 2013
Page 3
independent of the fact that Azusa will be simultaneously selling 20,000 of GHG
Allowances. CARB rules require the auction buyer side is independent of the auction
seller side. As a consequence, a remote risk exists that if a bid to buy Allowances is too
low, not all Allowances sold may be simultaneously bought back. To minimize this risk
Staff intends to obtain a limited auction strategy validation services from one of SCPPA
enabled consulting service providers.
FISCAL IMPACT
No net fiscal impact is foreseen as the aim is to buy and sell Allowances at the same
auction wherein, by design, there is a single clearing price established for all buyers and
sellers. Auction strategy validation service should not exceed $5000. The utility's current
operating budget for Power Supply has adequate funds to post auction security and pay
for auction strategy consulting service.
Prepared by: Yarek Lehr, Assistant Director-Resource Management
'I 4 E;
Information Item
Presented 3/01.5i 9-0/3,
Fa.
•
6 CMT & 'M.41E1.
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: MARCH 25, 2013
SUBJECT: PROGRESS REPORT ON THE LEASING OF ELECTRIC VEHICLES AND
INSTALLATION OF ELECTRIC VEHICLE PUBLIC CHARGING STATIONS
In 2012, the Azusa Utility Board authorized staff to arrange for the installation of electric vehicle
public charging stations in the Azusa community. Two locations were selected and the charging
equipment/service provider chosen is a company named ECOtality. In conjunction with the
public charging stations, the Utility Board also approved last month the leasing of electric
vehicles as a replacement for the Department owned aging vehicles which have already reached
their useful economic life.
Staff is pleased to report the following:
• Installed three Level II (240 volts) electric vehicle public charging units in front of the
Light & Water office building for use by customers, City vehicles, and the general public.
• Installed one Level III (480 volts) direct current fast charge (DCFC) public charging
station at the City parking lot located at corner of 6 & San Gabriel (diagonally across
the US Post Office) for public use.
• Leased one Chevy Volt 2013 model electric vehicle with $1,500 down and $396.48
monthly close end lease for 36 months, maximum 12,000 miles per year. Applied for a
$1 ,500 State of CA Clean Vehicle Rebate including single occupant car pool lane sticker.
• The lease of one Nissan Leaf 2013 model electric vehicle or a comparable full electric
vehicle is pending.
Prepared by: F. Langit Jr., Assistant Director-Electric Operations
Steven Yang, Senior Management Analyst
061
information Item
Presented a1,9.-/ao13 —t
1)111111111
AZUSA
IIGHT A WATER
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: MARCH 25, 2013
SUBJECT: SECOND QUARTER BUDGET REPORT FOR WATER AND ELECTRIC
FUNDS FOR FISCAL YEAR 2012-13
Attached reports include unaudited budget information regarding the Water and Electric funds
through December 31, 2012.
In general, revenues exceeded expenditures for both Water and Electric utilities through the
second quarter of FY 2012-13, with Electric fund having positive net gain of about $485,900,
and Water fund having positive net gain of about $916,300.
Consumption (sales) through the end of the second quarter was above last year's levels for both
utilities. This continues an upward trend started in first quarter of this fiscal year, a good
indication that the economy is continuing to improve.
Electric sales were 5.6% higher than same period in prior FY. Table below shows historical sales
and billing trends for the Electric utility since FY 05-06 through second quarter of each FY.
2nd Quarter Electric Sales/Billings
FY kWh Sales Billings
05-06 129,833,967 $ 14,380,345 _
06-07 139,649,981 $ 16,052,403
07-08 136,375,872 $ 15,872,058 _
08-09 139,176,034 $ 18,276,924
09-10 133,286,521 $ 16,229,555
10-11 126,364,551 $ 17,834,281
11-12 126,375,198 $19,286,751 _
12-13 133,442,520 $19,908,665
062
2nd Quarterly Financial Report
March 25,2013
Page 2
Water sales were 8%higher than same period in prior FY. Table below shows historical sales
and billing trends for the Water utility since FY 05-06 through second quarter of each FY.
2nd Quarter Water Sales/Billings
FY CCF Sales Billings
05-06 5,236,280 $7,874,961
06-07 5,677,810 $8,815,286
07-08 5,083,893 $8,696,748 _
08-09 4,735,337 $7,841,814
09-10 4,503,313 $8,513,021
10-11 4,269,226 $9,248,071
11-12 4,248,276 $9,315,888
12-13 4,591,058 $9,972,924
Through December 31, 2012, both the Water and Electric Utilities exceeded minimum debt
service coverage ratios required by long-term debt financing agreements.
Prepared by: Cary Kalscheuer,Assistant Director-Customer Care&Solutions
063
Electric Utility Quarterly Budget Report
2nd Quarter Ended Dec 31, 2012
(UNAUDITED
2nd Qtr Ended
Sales / Consumption Info Prior FY End Percent
12/31/12
Consumption - kWh: 236,527,153 133,442,520 56%
Budget Information
Budget Actual Thru Percent of
12-13 12/31/12 Budget
Revenue
Retail Billing Amounts(l) $34,324,400 $19,908,665 58%
Resale Revenue(2) 8,106,095 3,212,119 40%
Other Miscellaneous Revenue 303,300 92,950 31%
Interest Income 120,000 24,032 20%
Total Revenues $42,853,795 $23,237,766 54%
Expenses
Purchased Power(2) $28,879,410 $15,412,817 53%
Transmission/Dispatching 4,388,315 2,007,241 46%
Operations and Maintenance 3,563,680 1,516,180 43%
Administrative and General 2,433,450 1,192,975 49%
Franchise and In-Lieu-Tax 3,432,440 1,986,882 58%
Subtotal Expenses $42,697,295 $22,116,095 52%
Capital Expenditures / Debt Service
Long Term Debt Service) $776,107 $388,054 50%
Capital Outlays and Projects(5) 1,642,394 247,711 15%
Total Expenditures $45,115,796 $22,751,860 50%
Adjustments
Transfers Out 8,370 - 0%
Total Expenditures and Transfers Out $45,124,166 $22,751,860 50%
Change in Cash/Reserve ($2,270,371) $485,906 0%
Debt Coverage Ratio(6) 4.62 8.01
(1) Actuals represent amounts billed based on Customer Information System report thru December 31, 2012.
(2) Source: Power Resources Division.
(3) Estimate based on budget.
(4) Based on annual scheduled debt service payments for outstanding long term debt.
(5) Capital Outlay Accts and Capital Improvement Project expenditures.
(6) Total Revenue less Cost for Purch'd Pwr, Trans, O&M, and A&G, divided by debt service. Minimum debt
coverage requirement is 1.10 per bond financing agreements.
064
Water Utility Quarterly Budget Report
2nd Quarter Ended Dec 31,2012
(UNAUDITED)
2nd Qtr
Sales/Consumption Info Prior FY End Percent
Ended
Consumption-CCF: 7,384,003 4,591,058 62%
FY 2012-2013 Budget Information Budget Actual Thru Percent of
12-13 2nd Qtr Budget
Revenues
Retail Billing Amounts(1) $ 17,010,680 $ 9,972,924 59%
Other Revenues(2) 3,001,140 2,447,568 82%
Interest Income 220,000 10 0%
Total Revenues $ 20,231,820 $ 12,420,503 61%
Expenses
Production 2,895,070 1,303,066 45%
Purchased Water 3,116,485 2,121,115 68%
Transmission and Distribution 3,042,375 1,524,798 50%
Customer Accounting and Sales(3) 4,291,080 2,133,040 50%
Administrative and Engineering 835,415 255,618 31%
Franchise Fees 340,215 206,649 61%
Subtotal Expenses $ 14,520,640 $ 7,544,287 52%
Capital Expenditures/Debt Service:
Debt Service Payments(4) $3,977,740 $ 1,988,870 50%
Capital Improvement Budget(5) 2,136,740 1,971,075 92%
Total Expenses (Less Bond Funding) $ 20,635,120 $ 11,504,231 56%
Adjustments
Transfers Outtb) $0 $0 0%
Total Expenditures and Transfers Out $ 20,635,120 $ 11,504,231 56%
Net Change in Cash(Negative) $ (403,300) $ 916,271 -38%
Debt Coverage Ratiom 1.52 2.56
Notes:
(1)Based on Customer Information System Billing Amounts through Dec 31,2012.
(2)Includes$1.8 million from water right leasing.
(3)Customer Service Allocation to Water Fund-50%of budget.
(4)Principal and Interest on 2006 and 2012 Revenue Bonds thru 2nd quarter of fiscal year.
(5)Approved appropriations for multi-year projects,some of which are carryovers from prior year.
(6)Half of Interest Income may be transferred by policy if there is positive net income. As of 12/31/2012,no
transfers have been made.
(7)Total Revenues less Production,Purch'd Wtr,T&D,Cust Acctg,&A&G divided by Debt Svc Pymnts.
Minimum debt coverage requirement is 1.25 per bond financing agreements.
C�6 5
Information ItemPIM"S
Presented 3 •
*111111,
AZUSA
r.ur x karrr
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: MARCH 25, 2013
SUBJECT: AZUSA WATER SYSTEM WATERLINE IMPROVEMENTS
Azusa Light and Water has a program of replacing and improving system waterlines that
considers the size, age and leak history of the current pipelines; the importance of the pipelines
to the operation of the entire water system; and the likelihood of City or County paving projects
in the area that could place a moratorium on near term future waterline improvements.
In addition to the City of Azusa, the Azusa utility serves portions of the Cities of Glendora,
Covina, West Covina and Irwindale and portions of unincorporated Los Angeles County, in
addition to the City of Azusa itself. Approximately 60% of the water system lies outside the City
of Azusa's boundaries. The Water Division is currently finishing a main replacement project
located in Los Angeles County near the City of West Covina.
The attached map shows the major waterline improvement projects that the Water Division has
completed from 2005 to 2013. The map does not show the new waterlines that have been
installed by others in the Rosedale development. Nor does it show waterlines that have been
installed in some local neighborhoods.
Prepared by: Chet F. Anderson, P.E., Assistant Director- Water Operations
066
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Information Item
Presented 3(a-q -b 13 ,_
F--
.0IHP'
AZUSA
IIGNT { WATEN
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: MARCH 25, 2013
SUBJECT: POTENTIAL PROCUREMENT OF ENERGY HEDGE(S) IN THE ISO'S
SOUTH OF PATH 15 ZONE FOR THE PURPOSE OF MITIGATING
POTENTIAL ISO ENERGY PRICE EXPOSURE IN JULY, AUGUST, AND
SEPTEMBER 2013.
There is increasing energy price volatility being observed in Southern California wholesale
power markets. If this trend continues, Summer 2013 prices may get substantially higher than
otherwise expected.
The potential forward energy price uncertainty stems primarily from the fact that San Onofre
Nuclear Generating Station (SONGS) will likely not be restarted before the summer. An
additional factor may be the fact that that California gas prices are increasingly de-coupled from
the central and eastern US gas prices. In a recent market update to SCPPA, electric market
experts suggested that such gas price de-coupling stems primarily from the fact that there is
limited physical gas transportation capability into California and thus the cheap shale gas cannot
always find its way here. Finally, the rising economic activity in the region has perked up
demand for power which in turn exerts upward pressure on energy prices.
In 1999, the Utility Board approved the Azusa Risk Management Policy (Risk Policy). The
policy was subsequently amended in 2006 and 2011. The currently approved policy, among
other things, grants specific ranges of authority to Staff to engage in purchases, sales and
hedging of energy, capacity, natural gas, transmission products, Renewable Energy Credits
(RECs), and GHG Allowances, within certain limits. Although by no means certain, in order to
control potential energy price exposure, Staff would like to notify the Board that it may deem it
prudent to procure forward energy price hedges, up to 5 MW, for the super-peak hours (HE 13-
HE 20) of Q3 2013.
068
Potential Procurement of Energy Hedges
March 25, 2013
Page 2
It should be noted that as of October 2012, all financial hedge transactions are reportable to
Commodity Futures Trading Commission (CFTC) pursuant to the provisions of the Dodd-Frank
Wall Street Reform and Consumer Protection Act of 2010.
The estimated cost to procure such hedges, if acquired, is less than $100,000/month.
Prepared by: Yarek Lehr, Assistant Director-Resource Management
069
Information Item
jjjentjjj/jj/) to. •
AZCTS
UGNT R 'A'ATER
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: MARCH 25, 2013
SUBJECT: 2012 APPA ACCOMPLISHMENTS
The American Public Power Association (APPA), based in Washington D.C., is the service
organization for the nation's community-owned electric utilities with current membership of
1,314 utilities, including Azusa, and 228 corporate members. It was created to advocate the
legislative and regulatory interests of its members so they can continue to provide reliable, low-
cost electricity to their consumers, and protect the environment.
The attached report provides a snapshot of the many activities in 2012 that APPA has engaged in
on behalf of its members on the following areas:
• Government Relations
• Environmental Issues
• Policy Analysis
• Engineering Services
• Energy Efficiency
• Communications
• Research and Development
• Educating and Training
• Customer Programs
• Publishing
Prepared by: Liza Cawte, Senior Administrative Technician
Attachment: 2012 APPA Accomplishments
070
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, .
A ask 4 American
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':1111011,k‘
2012 APPA Accomplishments ,
* _ •,
The 2012 APPA Accomplishments summary provides
a snapshot of the many activities association staff
engages in on behalf of its members. While difficult
to quantify in dollar terips, much of APPA's effort is
focused on ensuring , e legislative and regulato 4
-.,
r are protected.
1
° 2012 APPA Accomplishments
r.,
el „
These a
, . , s 1 F 1 n Imes for a llc ower
i Undoubtedly, these are challenging times for public
power. Issues that could change the complexion of the public power landscape
loom large, including: preserving tax-exempt financing; minimizing the impact of
environmental regulations; and, protecting the existing federal power marketing
administration (PMA) framework, to name a few. These issues impact utilities of all
sizes and, absent a strong, united front on the legislative and regulatory front, could
imperil public power's business model, which rests on the ability to provide reliable,
low-cost power in the future.
The association continues to operate in an efficient, lean fashion, while providin e .
the highest level of service to its members. With 1,314 utility and 228 corporate
members, the association's membershio n Pliers have never been his h
r .•:1'4-- : ----e-, pe orn'l o '= =fibra o '.:°lye anula OryIron
the association delivers premier professional development opportunities through the',
APPA Academy and manages special utility programs, like the Reliable Public Power ; ,
Provider(RP3) program, which recognizes member utilities for their commitment to best practices in the areas of distribution reliability,safety, work force development
and system improvement. APPA works hard to keep our members informed throug ;
-� our numerous informational vehicles, including APPA's website, PublicPower.org,
several news vehicles (Public Power Daily, Public Power Weekly and Public Power :"
magazine), as well as via our robust discussion forum platform -the Hub.All of these
resources are provided at no additional cost to all member utility employees.,.----
We thank you for your continued support and look forward to serving you as ...
..
confront the challenges and embrace the opportunities that lie ahead. ,- .
072
2012 APPA Accomplishments in new,costly and likely ineffective market programs in the
West that would further erode state and local control over
electricity costs;and create a top-down decision-making
process that would move decisions now best made at the
v.
regional level to Washington,D.C.APPA and its members,
working closely with the National Rural Electric Cooperative
Association,responded quickly in opposition to these
Government Relations proposals.As part of that effort,we brought our concerns
to the attention of Congress where many members of both
parties also expressed their opposition and concern with the
proposal through hearings in the House Natural Resources
Committee,letters to Secretary Chu, meetings with DOE
staff,and a rider in the House-passed Energy and Water
rr Development Appropriations bill for FY 2013 that would
disallow use of funds to promulgate the proposals in the
Despite the press's moniker of a"do-nothing"Congress, memo,among others.APPA and NRECA also implemented
2012 was another very active year on public power's issues, a comprehensive program to coordinate activities at the state
given election-year politics on energy and environmental and regional levels to counter the DOE proposals,including
policy and the fiscal cliff negotiations at the end of the year outreach to the media,state and local policymakers,
that could have impacted our access to tax-exempt financing, and other stakeholders. Nevertheless, DOE continues to
among other items delineated in more detail below. vigorously pursue many of these proposals,and APPA will
Tax-exempt financing-Tax-exempt municipal bonds are continue to place a high priority on this issue.
the primary tool for financing public power infrastructure, Cyber security—APPA supports legislation to enhance
available to us as units of state and local government.They communication between the federal government and the
have traditionally provided public power with a stable, electric utility sector and to allow for the federal government
dependable and affordable source of capital.Denying or to direct utilities to act in cyber emergencies.APPA
limiting our access to tax-exempt bonds would increase our supported a cyber security information-sharing bill that
capital construction costs,resulting in increased electricity passed the House in 2012. In the Senate,we were initially
rates in many jurisdictions. Nevertheless,elimination or hopeful that broader legislation developed by Senators Joe
modification of the exemption from federal income taxes Lieberman,I-Conn., and Susan Collins, R Maine,covering
from the interest earned on these bonds has been/continues multiple critical infrastructure sectors,would be crafted
to be under active consideration as one measure to increase
federal revenue. In 2012,APPA built upon activities
undertaken in 2011, on our own,with the Public Finance •
Network,a coalition of state and local government groups, Denying or limiting our access t0 tax-
and others allies we have identified, to educate members t bonds wouldincrease our capital
of Congress on the importance of tax-exempt bonds, exempt
including the jobs they support.APPAs efforts have included construction costs,resulting in increased
numerous letters and visits to Capitol Hill from/by APPA and
from/by our members.We have also very actively engaged electricity rates in many jurisdictions.
our locally elected officials in this effort and they were
instrumental in ensuring that tax-exempt financing was not
included in the end-of-the-year tax agreement to avert the narrowly enough to draw support. However,APPA(and
fiscal cliff.These efforts will continue in 2013. the entire electric sector)had to oppose the version of
Federal power program --The ability for the federal power the bill that was considered on the Senate floor because it
marketing administrations (PMAs)and the Tennessee would have harmed the existing cyber security regime for
Valley Authority(TVA) to sell power at cost-based rates the electric sector.The bill failed to gamer enough Senate
remains a top priority for APPA. In March 2012, the very support,so ultimately no legislation was signed into law
structure and core mission of the PMAs was threatened While APPA supports narrow,targeted cyber security
legislation that builds on,rather than duplicates,existing
in a memo issue by Energy Secretary Steven Chu.The
regulatory regimes,we do not support harmful legislation.
secretary's memo to the PMA administrators directedA
changes in the policies and operations of the PMAs that the debate on this issue matures,we are in a better
would:significantly and inappropriately increase costs; position to ensure a positive outcome for public power. In
fundamentally alter the successful partnership between 2012,APPA played a leadership role in the industry coalition
the PMAs and their customers;divert PMA staff and other on this issue,which requires working with numerous House
resources to activities that are inconsistent with their and Senate committees,and we will continue to play an
statutory obligations and priorities;require participation active role as Congress revisits the issue in 2013.
X73
Wholesale Electricity Markets—APPA took an active role in EMRI continued to work with its allies to raise awareness of
the discussions and decision-making on a proposed energy the problems of wholesale electricity markets operated by
imbalance market(EIM)for the western interconnection in regional transmission organizations(RTOs)and to educate
close cooperation with our members in the region.The efforts Congress on the Federal Energy Regulatory Commission's
included the production of fact sheets,attendance at public lack of supervision of RTO markets.
meetings and submission of comments.APPA sponsored
presentations and written materials by the economist Kenneth 2012 APPA Accomplishments
Rose to illustrate the potential danger of an EIM transitioning
to a regional transmission organization(RTO)and to critique
the National Renewable Energy Laboratory's analysis of the
estimated benefits of an EIM,the latter co-sponsored by
National Rural Electric Cooperative Association.To date,the EIM
proposal has failed to gamer sufficient support to move forward. ' Ill-
EMRI maintained its focus on the highly problematicr,
IS
capacity markets in the eastern RTOs.APPA has submitted
comments and protests in a number of Federal Energy
Regulatory Commission dockets involving the use of the
capacity markets to impede public power's ability to self-
supply
elf supply and is participating in the Third Circuit U.S.Court
of Appeals review of the FERC orders on the minimum offer The House of Representatives,in particular,continued
price rule in PJM's capacity market,along with NRECA and a to focus in 2012 on legislation to modify or delay
number of individual public power utilities and rural electric implementation of various Clean Air Act(CAA)rulemakings.
cooperatives.APPA also participated in several other dockets APPA supported some of these measures,particularly those
pertaining to RTOs,including newly proposed metrics for that would provide additional time for compliance,but
non-RTO regions and the proposal for a full RTO in the recognized that passage in the Senate was unlikely.APPA
Southwest Power Pool.APPA's influence is evident in some supported a House-passed bill that would ensure that a
of the positive aspects of FERC's June 2012 order on the power plant ordered by the federal government to run in
Midwest ISO's proposal for a new capacity market. FERC an emergency situation would not be penalized by the
ordered that utilities could not be required to purchase Environmental Protection Agency for clean air violations.
capacity from this market and rejected the proposed The bill did not pass the Senate in 2012,but is likely to be
minimum offer price rule,citing APPAs arguments in support revisited and,with its narrow focus,has at least a chance of
of this decision. Senate passage in 2013 or 2014.
Several studies and white papers were produced under One other aspect to note is EPA's failure during the
EMRI in 2012,including a fact sheet on the high costs of rulemaking process to meet its legal obligations to consider
PJM's capacity market,an analysis of the primary financial the adverse impacts of proposed requirements on small
arrangements behind power plant construction,and a entities.The vast majority of APPA's members qualify as small
review of the New York state capacity market.The latter two entities under the Small Business Regulatory Enforcement
studies demonstrated that the primary drivers behind new Fairness Act(SBREFA),which requires EPA to provide them
generation and renewable energy are long-term contracts some relief and additional flexibility. However,EPA has barely
and utility ownership,not the RTO-operated markets.Two gone through the motions in its consideration of SBREFA's
articles were published under EMRI's auspices: "What Drives requirements and in some cases rather flagrantly ignored
New Generation Construction?" (The Electricity Journal, y
them.APPA has developed a good working relationship with
July 2012),and"Have Restructured Wholesale Electricity the Small Business Administration's Office of Advocacy,
Markets Benefitted Consumers?",co-authored with the as well as the Small Business Committee in the House of
Consumer Federation of America(ElectricityPolicy.com, Representatives to address this matter.In 2012,an APPA
December 2012).We also completed updates to the annual member testified before the committee on the shortcomings
rate comparison and financial analysis of merchant generation of EPAs SBREFA compliance with respect to the Boiler MACT
owners in PJM.
EMRI continued to work with its allies to raise awareness of the problems of wholesale
electricity markets operated by regional transmission organizations (RTOs) and to educate
Congress on the federal Energy Regulatory Commission's lack of supervision of RTO markets.
0 7 4
rule(which affects industrial boilers and coal-fired electricity and provide relief for small business and governmental
generator units less than 25 MW entities, as required by other federal statutes.We filed
briefs in the D.C. Circuit U.S. Court of Appeals in
In 2012,the House and Senate also made progress on October 2012. Oral arguments in the case are expected
bipartisan legislation to maintain the designation of coal in spring of 2013. A final decision by the court might
ash as a non hazardous waste and to increase oversight not be announced until late 2013.Without either an
and regulation of coal ash management by the states.This administrative review resulting in additional time or a
legislation,supported by APPA,passed the House and came court-ordered change to the final compliance date, some
close to being included in a broad surface transportation public power utilities may face the prospect of operating
bill(given the use of coal ash byproducts in roads, that was in non-compliance,which could subject them to
appropriate),but did not make it into the final version. enforcement actions by the agency and citizen lawsuits.
However discussions will resume in 2013.Regardless of
whether such a bill passes,interest in it by a bipartisan, Industrial,Commercial and Institutional Boiler MACT
bicameral group of members of Congress will certainly help Rule - On December 21, 2012, EPA finalized the
keep pressure on EPA not to regulate coal ash as hazardous. rule that had been twice reconsidered by the EPA for
RICE—APPA successfully advocated for reconsideration regulating mercury and acid gases from <25 MW power
by EPA of its original final rule on reciprocating internal plants.While only about two dozen of these units remain
in operation at public power utilities, these units are
combustion engines (or RICE) to allow for more hours important sources of generation for those communities.
of operation under both emergency and other conditions
Often these were electricity and steam providers to local
without modification or replacement. Several hundred
industrial customers or hospitals and establishment
APPA members own these units,which are often called of reasonable standards that could be met in a timely
upon for demand response,voltage support and other
purposes. EPA re-proposed the rule in 2012 to include
more hours of operations and other provisions.APPA
testified at two public hearings,secured assistance from APPA successfully advocated for
the U. S. Small Business Administration (SBA)'s Office
of Advocacy, coordinated with allied organizations reconsideration by EPA of its original final
seeking similar provisions, and participated in numerous
meetings and discussions with senior EPA staff. The EPA'srule on reciprocating •
internal combustion
final rule, announced on Jan. 14, 2013,provided 100
hours for electric utilities, a substantial improvement engines (or RICE) to allow for more hours
over the 2010 rule,which allowed only 15 hours for non of operation under both emergency and
storm or non-emergency response conditions. EPA's final p g y
rule also includes other features sought by APPA,such other conditions without modification or
as criteria related to operation of these units to maintain
voltage support. replacement
Mercury MACT- In an unprecedented action,APPA
filed both a request for administrative reconsideration
and a lawsuit in federal court in response to EPA's final manner is critical for both public power utilities and
mercury rule (often referred to as Mercury MACT or their commercial and industrial customers. This issue
MATS) to reduce mercury and acid gases from fossil has been before the EPA since 2005. APPA has filed
fuel-fired power plants. APPA's purpose in the litigation numerous comments,held webinars, met with the EPA,
and reconsideration is not to challenge the regulation Office of Management and Budget, and Small Business
of mercury per se,but is to correct EPA's failure to Administration personnel. The EPA's final rule,while still
provide public power utilities with sufficient time to not perfect, did give these units until 2016 to operate
comply with the requirements of the rule in recognition and slightly adjusted the emissions allowed. Perhaps best
of the obligations (set in city ordinance or state law) of all changes was the establishment of the limited use
placed on our members for major capital expenditures, subcategory that allows units to run approximately 800
procurement procedures, financing, and building hours a year without installation of expensive controls.
new pollution control equipment. The deadline for PM 2.5 -APPA filed comments in August 2012 opposing
compliance is May 2015,with an opportunity for one secondary public welfare standards that tighten existing
additional year for compliance if requested by a state.We
have assisted some members in obtaining this additional regulations for emissions of PM 2.5 (particulate matter
less than 2.5 microns in diameter).Although the
year. standards were tightened, APPA is pleased that EPA did
APPA's actions against the final rule are also based on so in a manner that does not easily lead to additional
EPA's failure to carry out its obligations to consider control requirements on power plants.
075
2012 APPA Accomplishments Advocacy at the Commodity Futures Trading Commission-
The 2010 Dodd-Frank Wall Street Reform and Consumer
Protection Act gave the Commodity Futures Trading
Commission(CFTC)oversight of the"swap"market.APPA has
worked to ensure that the CFTC's implementation of this new
regulatory regime for"swaps"enables public power utilities to
I hedge their commercial risks without unnecessary regulatory
A IS s disruptions or costs.This endeavor will continue in 2013,
as the CFTC has repeatedly missed deadlines established in
;; the Dodd-Frank Act,postponed compliance dates set by its
own rules,and failed to issue final rules in several important
proceedings or respond to industry petitions.
- F APPAs advocacy efforts,however,continued to pay off in
2012.APPA argued—in its comments and in meetings with
Protecting Public Power's Image-In 2012,APPA and some CFTC staff and commissioners—for rules and interpretations
of its members were contacted by a number of retail electric that exclude forward commercial contracts(including power
consumers who had confused APPA or one of its members supply contracts)from the CFTC's oversight of swaps.A
with a company named"Public Power, LLC."Public Power primary concern was that nonfinancial commodity contracts
LLC and its subsidiaries are retail electric power suppliers that contain option features would be considered swaps.The
in a number of states(including New Jersey,Maryland and CFTC's final rule defining"swap"includes interpretations
Illinois) that have implemented retail access.Unfortunately, that will exclude from CFTC oversight many types of
consumers unhappy with Public Power LLC's high pressure commercial contracts with"embedded options,"including
marketing tactics and poor customer service were Googling all-requirements contracts and netting agreements,and
the term"public power,"and then calling APPA to complain. contracts covering intangible commodities(such as emissions
APPA contacted its trademark counsel,but was informed that allowances and other environmental commodities).The
it would likely be difficult and expensive to challenge Public CFTC's final rule on commodity options also provides that
Power LLC's use of these words. "trade options," (commodity options used by commercial
entities to deliver or receive physical commodities in
Public Power LLC,however,subsequently filed an application connection with their businesses)are eligible for an
with the Federal Energy Regulatory Commission(FERC) exemption from most rules applicable to swaps.For example,
seeking authorization to engage in a business transaction. in many cases,the reporting requirement for trade options
ill
APPA and the Public Power Association of New Jersey be on a simple,annual form.
(PPANJ)used the opportunity that this application created to Finally,in 2012,the CFTC issued a proposed exemption
reach a settlement with Public Power,LLC intended to reduce order in response to a petition that APPA and other not-
the customer confusion created by the company's name.The for-profit electric utility groups filed,seeking to exempt
August 9,2012,settlement agreement requires Public Power, from CFTC oversight transactions among public power
'LLC and its subsidiaries to use the following disclaimer in utilities,cooperative utilities and federal power marketing
its marketing materials and on its social media sites: "Public administrations.Taken together, these rules,interpretations,
Power,LLC and its subsidiaries are not endorsed by or and exemptions significantly narrow the scope of the CFTC's
affiliated with the American Public Power Association(APPA) jurisdiction over public power utilities'transactions.
or its members, the Public Power Association of New Jersey,
or any government-owned,not-for-profit utility."Telephone APPA also worked with some in Congress to exert pressure
and in-person marketing and sales personnel must recite this on the CFTC to rethink one issue,in particular,related to the
disclaimer in sales pitches and marketing call scripts.Finally, threshold monetary level of transactions in the derivatives
the agreement also bars any new subsidiaries or affiliates of markets whereby public power's counter parties must register
the marketer from using"Public Power"in their name.APPA as"swap dealers."The CFTC has established a ludicrously
and PPANJ in turn agreed only to refrain from intervening in low threshold for banks and other counter parties to register
the FERC proceeding,thus allowing it to move forward on an as swap dealers when transacting with"governmental bodies,"
uncontested basis. such as public power utilities.Therefore,to avoid having
to register as swap dealers,many of our counter parties are
APPA continues to monitor Public Power LLC's compliance refusing to engage in hedging transactions with us.This is an
with the settlement agreement and assess whether these untenable situation,and has garnered the attention of House
measures are sufficient to distinguish APPA and its members Agriculture Committee Chairman Lucas(R-01Q,among others,
from Public Power,LLC and its affiliates in the minds of retail who had APPA testify before his committee on this subject in
customers.APPA may take further action in 2013 if these 2012.It is clear that we will have to continue to exert pressure
issues persist. on the CFTC to reverse its decision on this issue in 2013.
076
Reformed FERC Transmission Rate Incentive Policy-In 2012, proposed mandatory market and MOPR will assist APPA
APPA continued to coordinate a large coalition of state members in the Midwest by giving them more flexibility
public utility commissions,public power utilities,industrial to develop new generation resources.They will avoid
customers,state consumer advocates and cooperatives to the possibility of having to pay twice for new generation
press the FERC to reform its policies on transmission rate capacity—once to defray the cost of developing a new
incentives.APPA started this effort in 2010,with the goal generation resource and a second payment to a mandatory
of getting FERC to reexamine its then-current policies. market because of the failure of that resource to clear due to
Under those policies,FERC was awarding FERC-regulated upward bid"mitigation" under the MOPR.
transmission developers very generous risk-reducing Statistical reports-APPA's policy analysis staff produces
incentives(100 percent of construction-work-in-progress, annual reports on management salaries and financial
abandoned project cost recovery,accelerated depreciation) and operating ratios.These reports provide members
and revenue-enhancing incentives(increased rates of return with benchmarking information that would otherwise be
on equity(ROEs),hypothetical capital structures,formula difficult and costly to obtain.APPA also summarizes electric
rates). In 2012,APPAs sustained efforts finally bore fruit: industry data to produce reports on new generating capacity,
the commission on November 15,2012,issued a policy average revenue per kilowatt-hour,and the Public Power
statement in which it said it would expect applicants to take Annual Directory&Statistical Report. In 2012,APPA also
"all reasonable steps to mitigate the risks of a project"before published a comprehensive guide to understanding and
seeking an incentive ROE. It made clear that if it did award evaluating payments in lieu of taxes and other payments
risk-reducing incentives to a project applicant,it would then and contributions to state and local governments.This
take those incentives into account in considering any request report serves as a guide to understanding APPA's biannual
for an incentive ROE. report on payments in lieu of taxes and other contributions.
This change in policy is important to APPA members because It also provides public power managers and governing
even seemingly small increases in an ROE award can mean board members with a tool to evaluate and,if necessary,
substantially increased dollars included in rates over the life seek changes to the utility's policies and practices
of a transmission project. For example,if a$100 million concerning these payments.By equipping members with
transmission project is awarded an 11.5 percent ROE this information,APPA aids them in reaching reasonable
rather than a 12.5 percent ROE,then in the first year alone, contribution agreements with their cities and governing
assuming a 50-50 debt-equity capital structure,transmission boards.
customers would save approximately$800,000 in their CSWG/NIST Smart Grid Privacy Subgroup-The National
transmission rates.Since these are very long-lived assets,the Institute of Standards created a Smart Grid Interoperability
savings would continue to accrue over many years. Panel(SGIP) to help NIST carry out its mission to coordinate
Defeat of MISO's Mandatory Forward Locational Capacity standards development for the smart grid.The SGIP in turn
Market-In an order issued in June 2012,FERC declined to formed a Cyber Security Working Group as a collaborative
order a mandatory forward locational capacity market for the effort to address cyber security issues,including those
Midwest Independent Transmission System Operator,Inc. related to the smart grid.In 2012,APPA policy analysis staff
(MISO),a large regional transmission organization(RTO) participated in the working group's privacy subgroup,a panel
serving many APPA members in the Midwest.APPA and aimed at creating recommended standards and best practices
its members have been quite concerned about the negative related to smart grid data privacy.APPA worked to ensure that
impacts of such capacity markets on public power utilities the proposed standards were narrow in scope and did not
in eastern RTOs.APPA intervened in this case to attempt overly burden electric utilities as they implemented smart grid
to prevent MISO from implementing such a market for the programs.
Midwest. In particular,FERC rejected MISO's proposal to Electric Quarterly Reports-APPA filed comments in 2010
implement a"minimum offer price rule" (MOPR)similar to in response to FERC's initial notice of inquiry regarding its
that used by eastern RTOs-a pricing rule that has caused Electric Quarterly Report(EQR)filing requirements and then
significant problems for APPA members constructing new again in June 2011 in response to FERC's follow-on notice of
generation in those regions.FERC noted in its order that proposed rulemaking.FERC proposed to expand the scope of
it"has consistently rejected a one-size-fits-all approach to the EQRs to incorporate previously exempt non jurisdictional
resource adequacy in the various RTOs due,in large part, utilities,including public power utilities,cooperatives and
to significant differences between each region."In rejecting federal utilities.APPA recommended that FERC set a de
MISO's proposed MOPR, FERC said"Buyers within MISO minimis threshold for reporting based on the Small Business
are generally unlikely to benefit from exercising market power Administration's standard for electric utilities of 4 million
by subsidizing uneconomic entry and the resulting reduction megawatt-hours,but to apply that standard only to wholesale
in capacity prices in MISO's voluntary capacity market. . . sales,rather than through-put.FERC issued a final rule in
.because,as American Public Power Association and [state September 2012 that adopted APPA's proposed minimum
public utility commissions] note,utilities own the vast reporting standard.Twenty public power utilities with over
majority of capacity within MISO."The rejection of MISO's 4 million MWH in total combined retail and wholesale sales
077
were excluded from the EQR filing requirements because a member of the White House cyber security staff to address
they fall under the wholesale-sales-only threshold.APPA also the January 2013 APPA Joint Action Workshop.APPA staff
succeeded in helping to ensure that joint action agencies' was also pivotal in NERC's decision to open up access to
sales to its members generally would not have to be reported NERC's voluntary Electricity Sector Information Sharing and
in EQRs,even if the joint action agency does have to report Analysis Center(ES-ISAC)to small APPA utility members that
wholesale sales.These exclusions will save APPA members are not subject to NERC reliability standards,helped staff
many hours in personnel time that would otherwise have APPA member participation in the NERC Electricity Sector
been dedicated to completing these reports. Coordinating Council,and served as vice chair of the NERC
Critical Infrastructure Protection Committee.APPA Policy
Reliability standards and cyber security-APPA policy analysis Department staff worked with the Education Department to
staff led the North American Electric Reliability Corp. (NERC) develop and deliver a popular series of webinars for members
Standards Committee initiative to develop and gain industry on reliability standards,compliance,cyber security and
approval for revisions to the NERC Standards Process performance tracking issues throughout 2012.
Manual.These changes should make NERC's reliability
standards development process more efficient and timely, 2012 APPA Accompi shments
while preserving NERC's industry-consensus-based standard-
setting model.APPA policy analysis staff,in conjunction
with member volunteers,played pivotal roles in NERC's
completion of nine standards projects in 2012,including
FERC approval of its first results-based reliability standard
(FAC-003,Vegetation Management).
E1,,,
At APPA staff and industry behest,NERC management inl V1CS
2012 agreed to work with the industry trade associations
and the regions on a complete reform of its compliance '
and enforcement program,called the"Reliability Assurance M ir`
Initiative."NERC has also agreed to move ahead on the ,:
next phase of NERC's Find,Fix and Track(FFT)proposal, .. ;*,
to Find,Fix and Record violations within the utility,without
concurrent reporting to NERC of such items as potential APPA devotes considerable staff resources to electric utility
violations.In 2012,Find,Fix and Track procedures reduced operations,from generation through utility metering.APPAs
by half the number of NERC violations that lead to full FERC engineering services staff represents public power utilities to
federal regulatory agencies,such as the Department of Energy,
enforcement filings.APPA staff have become a key trade
association contact point with NERC staff for the reliability Department of Homeland Security,Department of Labor,
assurance and FFT initiatives. Occupational Safety and Health Administration,National
Institute of Standards and Technology and others.APPA's
The NERC Board of Trustees also adopted in 2012 Version Reliable Public Power Provider(RP3)program continues to
5 critical infrastructure protection standards that use bright grow and extend its reach throughout the United States.A
line criteria to tailor cyber security controls to the risks few of the 2012 developments in these areas include:
and vulnerabilities posed by various types of bulk electric
system assets.APPA policy analysis staff worked with Reliability
members and the NERC-appointed industry drafting team . Represented public power interests at the IEEE
to ensure that this NIST-based framework for cyber security Distribution Reliability Working Group and provided
standards substantially reduces or eliminates the regulatory comments on the IEEE 1782 "Guide for Collecting,
burden on small public power utilities that are subject to Categorizing and Utilization of Information Related to
other NERC standards,by either excluding them entirely Electric Power Distribution Interruption Events"and IEEE
from CIP Version 5 or emphasizing the development of 1366"Guide for Electric Power Distribution Reliability
organizational capabilities to address cyber security threats. Indices
The CIP standards also incorporate requirements that shift the • Released APPAs biennial Distribution System Reliability
emphasis from forcing registered entities to document"zero and Operations Survey report.
defect"performance since their last audit to the development . Launched eReliability Tracker service to help public power
and implementation of internal programs designed to identify, utilities better collect,categorize and analyze outage data.
assess,and correct deficiencies on a forward-looking basis. • Provided public power review and comment for Lawrence
NERC staff is working to complete the regulatory filing of the Berkeley National Labs paper"Examination of Temporal
CIP Version 5 standards with FERC for approval in 2013. Trends in Electricity Reliability Based on Reports from U.S.
APPA staff worked closely with the Department of Energy to Electric Utilities."
complete and publicize DOE's Electricity Sector Cybersecurity ' Participated in NERC's Spare Equipment Database that
Capability Maturity Model(C2M2),including arranging for began operation in 2012.
078
t
Achieved all-time high of 184 RP3-designated public power utilities.
Reliable Public Power Provider Program (RP3) • Submitted multiple sets of comments to DOE on
• Achieved all-time high of 184 RP3-designated public the need for a new Grid Interactive Water Heater
power utilities. Standard and in reference to the International Energy
• Met with a variety of outside companies,including Conservation Code.
national insurance providers,to ensure that the benefits of • Worked with the National Rural Electric Cooperative
the RP3 program are understood beyond the public power Association and Edison Electric Institute to provide
community. feedback and submit comments on DOE's Unified
• Coordinated the RP3 webinar series to help educate Methods Project on evaluation,measurement and
membership on the program. verification of efficiency programs.
• Delivered RP3 presentations in California,Georgia,
Missouri,New Jersey,New York,Ohio,Oklahoma, Mutual Aid
Washington and Wisconsin. • APPA staff continued to organize a national mutual aid
effort in 2012.Preparedness was tested with Superstorm
Advanced Grid Technologies Sandy restoration in New York,New Jersey,Pennsylvania,
• APPA staff actively participated in N1ST-led Smart Grid West Virginia,Ohio,Connecticut and Virginia.Storm
Interoperability Panel(SGIP)to encourage standards restoration efforts were substantially improved as a result
harmonization and provide a public power voice to the of the significant contributions of public power.
discussions. • Following Superstorm Sandy,APPA staff was embedded
• Acted as a peer reviewer for DOE's Smart Grid Research in the Federal Emergency Management Agency's National
and Development program. Response lordinating Center in Washington to assist
• Developed APPAs Cyber Security Essentials—A Public FEMA,D ,Dartment of Homeland Security,
Power Primer publication Departmeof fense and other federal agencies with
• Represented APPA membership in classified briefings coordinatiofsponders across the country
related to cyber and physical security for the electric power
industry in Electricity Subsector Threat Workshop. 01APPA Accomplishments
•
• Participated in DOE's Grid Integration Distribution
Workshop to provide input on what R&D and
institutional activities DOE should be working on in fiscal
years 2014 to 2018. •
Department of Energy -
• Worked with transformer manufacturers and other industry 11C
advocates in an attempt to keep the proposed"Energy
Conservation Standards for Distribution Transformer
Efficiencies"at levels that balance cost and efficiency ,`_
E .
• This effort included drafting letters to DOE Secretary
Steven Chu,participating in technical meetings, '' k s
coordinating member submissions to provide baseline
for utility experiences,and requested,with industry APPAs Energy Efficiency Resource Central(EERCnet.org)
coalition,a meeting with Office of Management and continues to be a major source of online information and
Budget(OMB)that coincides with the disclosure of assistance to members,and its 37 joint action agency and
DOE's final rule. _ state and regional association partners continue to serve as
• Coordinated with water heater manufacturers and other channels for delivering information and education.
industry advocates to educate DOE staff in hopes of APPAs Energy Efficiency Management Certificate Program,
correcting the Energy Conservation Standards for Residential launched in August 2010,is one of the association's most
Water Heaters. highly attended educational offerings,with more than 100
• Performed an extensive survey of the membership in program participants and 40 graduates.This week-long
early 2012 to gauge the impact of the current DOE program provides a complete overview of the need for energy
water heater rule on demand response(DR)programs efficiency programs,integrated resource planning,how to
and coordinated member comment submissions. develop and implement programs and measure the success
• Met with DOE staff on three occasions to educate of the programs.Our goal continues to be to train and
them on the unexpected impacts of the existing certify one individual in each APPA member utility in energy
water heater rule on DR programs using smart grid efficiency program management.
interoperability.
079
APPA has also been working with several groups to advance 2012 APPA Accomplishments
the interests of public power in the area of energy efficiency,
including:
Partnering with the Clean and Efficient Energy Program i
(CEEP),a collaborative venture between APPA,the Alliance
to Save Energy and the Large Public Power Council. CEEP is
a nationwide effort to initiate and expand energy-efficiency eal
programs offered by public power utility staff with access to —yd.
needed resources,technical assistance and training. CEEP has `
assisted in the development and delivery of several of APPA's
energy-efficiency resources.Specifically,CEEP partially or fully \tit
funded the delivery of APPAs Energy Efficiency Management t y
Certificate Program and other energy efficiency courses for five
joint action agencies,state associations or groups of utilities. Demonstration of Energy&Efficiency Developments(DEED)
Working with the State&Local Energy Efficiency Action • Deployed a web-based grant management system to
Network(SEE Action),a program coordinated through the improve efficiencies for staff and members related to
Department of Energy,which was formed to assist state and the DEED grant and scholarship application process,
local governments in their implementation of energy efficiency evaluation of proposals,and other grant management
policies and programs. functions.
• DEED board's Strategic Planning Initiative in 2012
2012 APPA Accomplishments resulted in:
_ • A new name: Demonstration of Energy&Efficiency
Developments(DEED)
• An increase in the funding limit,to$125,000,for
innovative DEED projects.
Inclusion of a mentoring component for all DEED
t scholarships and travel funds to encourage public
Communications power career exploration.
• Addition of an"Education Scholarship"to support
students entering technical fields characterized by short
supply and high demand by public power utilities.
• $629,543 in funding awarded: $541,543 for 19 utility.y w grants and$88,000 for 19 scholarships to support student
talent
Strategic communications is an essential component in • 63 percent of grant proposals received were approved for
APPAs success in the public policy arena.Some of APPA's funding in 2012 (61 percent over the last 10 years)
communications highlights in 2012 include: • More than 450 project reports are available in the online
DEED Project Database
• Delivered a press briefing at the annual Legislative Rally • 28 projects completed(18 grants and 10 scholarships)
to discuss APPAs 2012 resolutions resulting in numerous • APPA members purchased 569 DEED products and
trade press stories on public power's priorities for the DEED members saved$19,265 using their DEED product
coming year discount on APPA product purchases
• Logged and answered more than 180 inquiries from • More than 868 registrants participated in 13 DEED
members of the press,resulting in increased exposure for webinars in 2012.DEED members saved more than
APPA and our priority issues. $67,000 in webinar expenses.
• Held a successful Spring Issues Roundtable meeting • Several projects from the DEED/DSTAR collaboration were
at APPAs offices where public power communicators released and published for all APPA members.
gathered to discuss topics related to internal and external • Iowa Association of Municipal Utilities received DEED's
communications. Award of Continued Excellence
• Continued to grow the Tree Power program—adding new • Four DEED members were honored with Energy Innovator
members and disseminating information on community Awards:Fayetteville Public Works Commission,North
tree-planting initiatives. Carolina; City of Leesburg,Florida;City of Tallahassee .
• Secured APPA mentions in more than 1,000 online and Utilities,Florida;Wyandotte Municipal Services,Michigan.
print stories on our key public policy issues—a marked • Released three new resources: Cyber Security Essentials,
improvement from 2011. LED Street Lighting:A Handbook for Small Communities,and
eReliability Tracker.
080
2012 APPA Accomplishments distribution.Over 100 people participated in all four
webinars included in the series.
• A series of seven governance-related webinars focused
on issues important to governing boards and elected
officials.
• Webinars on a number of other topical issues such
Et al as NERC compliance,EPA regulations,rating agency
outlook,among others.
' Y'` • Increased the APPA Academy's focus on safety training
through full day courses and webinars,in addition to the
L.,...'
development of a safety webinar series to be held in 2013.
• Developed meeting applications for smartphones and
4notebooks for the 2012 National,Business&Financial
and Customer Connections conferences. Conference
attendees used the app to review the full meeting program,
APPA membership provides affordable access to first-rate including sessions,speakers and sponsors,develop their
electric utility education and professional development personal schedule for the conference,view maps of the
opportunities for all utility staff In 2012,APPA produced expo and meeting areas and invite contacts on Apple,
and delivered over 100 training programs for more than Android and Blackberry devices.The app was downloaded
5,000 attendees.APPA continued to expand its popular by approximately 30 percent of attendees at the National
webinar series,hosting 45 issue-focused events that attracted Conference,more than 50 percent of attendees at the
over 2,600 participants,including 543 individuals who Business&Financial Conference,and over 60 percent
participated in an APPA event for the first time.APPA brought of the Customer Connections Conference attendees.
courses on-site to 15 utilities,joint action agencies and state Feedback was extremely positive.
associations through APPAs in-house program. • Conducted the 12th Annual Public Power Lineworkers
Other key education and training developments include: Rodeo in Cleveland,Ohio.The rodeo which featured
a day of classroom training followed by"in the field"
• APPA continues to expand the APPA Academy-APPAs competition with 45 teams from APPA member utilities
one-stop resource for education and training.Through a from around the United States.
variety of delivery methods—live education courses,in-
house training,conferences,webinars,online courses and APPAs meetings department manages the logistics of over 25
work force development partnerships-the APPA Academy APPA meetings,events and conferences,including identifying
helps electric utility employees stay abreast of rapidly locations,hotels and convention centers;negotiating
moving industry technologies and regulatory requirements contracts;securing room blocks;providing logistical support
and working with hotels for all APPA meetings and events.
in formats and price ranges that suit employee needs.
• Offered several conferences and workshops to educate
members on current issues and provide them with 9012 APPA Accomplishments
an opportunity to earn continuing education credits.
Conferences included:
-APPA National Conference
It
-Business&Financial Conference
-Customer Connections Conference
-Engineering&Operations Technical Conference •
-Legal Seminar Customer Programs
-CEO Roundtable
-Joint Action Workshop Ix,,,
-Public Power Leadership Workshop '
-General Accounting,Finance&Audit Spring Meeting
ma S
• Partnered with George Mason University on the
development of a new course on"Introduction to Using
Enterprise Risk Management in Evaluating Utility Business APPA staff provides resources to assist public power
Risk,"offered free of charge,to APPA members in 2012. communities considering the sale of their utility and
This course is also being held free of charge for six joint communities exploring the public power option. •
action agencies and state associations to bring in-house for
their members through the first quarter of 2013. In 2012,APPA updated its manual"Positioning Your Utility
• Expanded the Academy webinar offerings by holding: to Succeed in a Sellout Evaluation,"which helps communities
• An"Electric Utility 101"series of webinars that work through the major issues in understanding the value
covered generation,transmission,substations and of their community-owned electric utility,the importance of
081
running the utility effectively,helps identify warning signs that reliability standards,advanced grid technology's impact on
a utility may become a target of a sellout attempt and provides customer privacy,energy storage,demand-response programs
a starting point to help utilities make an informed evaluation and utility strategies for dealing with copper theft.The
on the retention and sale of the utility. magazine's"On the Road"series of feature stories about APPA
member utilities included articles about utilities in Maine,
APPA also worked with a number of communities exploring Idaho,Kansas,Georgia,Colorado,North Dakota,and Ohio.
the public power option in 2012,such as Boulder,Colorado;
Montgomery County,Maryland;Evart,Michigan;among The website,publicpower.org, is a vast resource of information
others.APPA staff updated a number of publications and for APPA members.It is a repository of up-to-date news
reports related to municipalization including: and the go-to resource for information and registration for
upcoming APPA conferences,webinars,education programs
• Straight Answers to False Charges Against Public Power and other activities.The website's vast historical resources
• Survey of State Municipalization Laws include Public Power magazine and newsletters dating back to
• Q&A for Communities Considering the Public Powe, Option, the 1940s,when APPA was established,along with minutes
and of APPA board meetings and the full collection of APPA
• Model City Charter Provisions resolutions.
2012 APPA Accomplishments Website staff completed a transition to the Hub,a new
platform for electronic discussion groups.The Hub has more
than 30 discussion groups and it is easy to create new groups
as needs arise.APPA members can manage discussion group
subscriptions online,look at archived discussions and share
documents.Each discussion group has its own document
library.
P .a k sem¢ Video assumed a higher profile on the APPA website in 2012.
' PubhcPowerTV,part of the media section of publicpower.
org,is an advertiser-supported repository for the association's
videos,including"Pride In Public Power,"an informative
high-quality video to introduce the general public to the
history and benefits of public power utilities. In June,we
live-streamed APPA President&CEO Mark Crisson's speech
APPAs Publishing Department handles the association's news to members at the 2012 National Conference in Seattle.APPA
and information operations and develops and protects APPA's publishing staff also produced a series of short video clips
branding activities.Publishing team members include editors, based on content presented at selected National Conference
the director of information services(librarian),and graphic sessions and pre-conference seminars.These,and several
designers.The department manages the association's website, policy-focused videos produced in collaboration with APPA's
publicpower.org;writes,edits and produces Public Power Daily government relations staff,are housed on PublicPowerTV
and Public Power Weehly newsletters,as well as Public Power (video.publicpower.org)for members to view and share at any
magazine and Public Power Annual Directory&Statistical time.
Report and provides editorial and production support for
Website infrastructure was upgraded by integrating online
three quarterly newsletters—the DEED Digest,APPA People
to People(for human resource and training personnel)and event registration with APPAs membership database,which
Customer Connector. streamlines registration and payment processing.
News coverage in Public Power Daily and Public Power Week&
focuses chiefly on top legislative,regulatory and other public
policy issues that affect APPA members.In 2012,coverage
was particularly focused on activities of the Federal Energy
Regulatory Commission,North American Electric Reliability APPA is here to serve you. For additional
Corp.,Environmental Protection Agency the Commodity
Futures Trading Commission and the U.S. Congress.The information on APPA member benefits,
newsletters also carry timely announcements about upcoming
APPA conferences and education and awards programs,along contact Jeff Haas,vice president of
with news about developments at APPA member utilities.
Public Power magazine articles offer more in-depth coverage membership & lT (202.467.2953;jhaas@
of industry developments. Cover articles during the year PublicPower.org).
focused on regulation of coal-fired power plants,mutual
aid experiences, the public power business model,national
082 ..