SEPTEMBER 2014 Stakeholder Input Summary Report September 2014 Platte River Power Authority Stakeholder Input Summary Report Contents Overview 2 Key Findings 2 Key Messages/Listening Sessions and Webinar 3 Customer Survey Process 3 Platte River’s Customer Survey Questions & Results 4 Platte River Listening Sessions & Webinar 9 Appendix A: Listening Session and Webinar Presentation 16 Stakeholder Input Summary Report September 2014 Overview Platte River Power Authority is a political subdivision of the State of Colorado that generates and delivers wholesale power to our owner communities of Estes Park, Fort Collins, Longmont and Loveland, Colorado. Platte River operates on a notfor-profit basis. In 2013 the Platte River Board of Directors established strategic initiatives intended to expand the use of renewable resources, reduce carbon emissions, and diversify Platte River’s generation resource portfolio while managing cost impacts effectively. Seeking stakeholder input in our four communities throughout the planning process is essential. In May of 2013 Platte River hosted community listening sessions in Estes Park, Fort Collins, Longmont and Loveland, and results helped drive the 2014 Strategic Plan approved by the Board of Directors in December of 2013. Stakeholder input for Platte River’s 2014 Integrated Resource Plan was expanded to include Platte River-specific questions in customer surveys in Fort Collins, Longmont and Loveland in late 2013 and mid-2014. Another round of listening sessions in the spring of 2014 increased citizen participation by 64 percent through collaborative promotion with Estes Park, Fort Collins, Longmont and Loveland. An interactive Webinar gave citizens yet another way to ask questions and comment. The results are summarized in this report. Seeking stakeholder input is ongoing, as is the planning process itself. This report is one step in Platte River’s continuing interactive dialogue with our owner communities as we meet their electricity needs in an ever-evolving energy marketplace. Key Findings In general, utility customers would like Platte River to further diversify the electricity generation resources that serve the owner communities of Estes Park, Fort Collins, Longmont and Loveland in order to reduce greenhouse gas emissions. In general, utility customers would like Platte River to increase the percentage of renewable energy resources that serve the owner communities. Customers across the four communities are very supportive of energy efficiency programs. There seems to be a general understanding that reducing greenhouse gas emissions and increasing renewable resources will increase costs. How much customers are willing to pay to reach greenhouse gas reduction and renewable energy goals is less certain. Price sensitivity questions were www.prpa.org 2 Stakeholder Input Summary Report September 2014 asked both in the customer surveys and at the listening sessions, and results are included in those sections of this report. It should be noted that Fort Collins’, Longmont’s and Loveland’s customer surveys and Platte River’s listening sessions were conducted before the Environmental Protection Agency (EPA) issued its proposed Clean Power Plan on June 2, 2014. Comments about potential carbon regulation were made at the listening sessions and background information on carbon risk mitigation was included in Longmont’s survey. Key Messages/Listening Sessions and Webinar Messages that were repeated frequently by listening session attendees from the four owner communities included the following: Would like rooftop solar and solar gardens; would like more wind; have enough coal; natural gas is a good complement to renewable if methane can be controlled; look at advanced storage systems; consider new technologies as they are developed; should anticipate future regulation of carbon. Would like Platte River to look at best practices for modeling energy efficiency, demand response and distributed generation; work with the cities to increase energy efficiency programs; look at integration of electric vehicles; work with cities on regulations for new construction; collaborative EfficiencyWorks program is a good model. Most said they would like Platte River to reduce greenhouse gas emissions 20 percent below 2005 levels by 2020, though some said a 20 percent reduction is not aggressive enough; some said there needs to be balance between reductions and costs; some said we need continuous improvement that sets yearly as well as longer term goals for 2030 and 2050. Customer Survey Process Longmont Power & Communications, Fort Collins Utilities, and Loveland Water and Power periodically conduct surveys with their respective commercial and residential utility customers to measure customer satisfaction and learn how they can continually improve their quality of service. Because listening session comments are subjective in nature and participants are self-selected, Platte River requested the opportunity to participate with the three utilities in their surveys so that quantitative data could be synthesized with qualitative data, thereby creating a more complete data set that Platte River www.prpa.org 3 Stakeholder Input Summary Report September 2014 and the Cities could use to guide their joint planning on future electricity resources. The process involved inserting several Platte River-specific questions into each of the three surveys rather than conducting a separate survey of the three Cities’ customers. This created economies of scale and avoided “survey fatigue,” but did not include Estes Park’s customers. Also, survey results are sometimes influenced by timing and external events that are not universal when the surveys are conducted over a period of several months. However, having customer survey data to synthesize with listening session comments allows for more complete stakeholder analysis and input. The benefit of Platte River’s collaborating with the Cities’ surveys overrides issues with possible inconsistencies. Platte River’s Customer Survey Questions and Results Questions were identical for Fort Collins and Loveland and were worded slightly differently in Longmont. Fort Collins Utilities conducted its survey in October of 2013 and reported results in December of 2013; Longmont Power & Communications conducted its survey in November of 2013 and reported results in December of 2013; Loveland conducted its survey in May of 2014 and reported results in July of 2014. Survey Methodology: Fort Collins Utilities conducted its survey online, and received 1,943 responses from residential customers and 57 responses from commercial customers. Longmont Power & Communications conducted its residential survey through email and mail, and received 407 responses. Key commercial customers were surveyed online. Loveland Water and Power conducted its survey primarily online but also included a paper option, with 1,491 residential customers filling out the online survey and 35 completing paper surveys. Commercial customers were surveyed online, with 146 customers completing the survey and an additional 83 partially completing the survey. Survey Questions: (Fort Collins Utilities/Loveland Water and Power) and Platte River Power Authority, the city-owned wholesale power provider for Estes Park, Fort Collins, Longmont and Loveland, are working together to diversify future electricity www.prpa.org 4 Stakeholder Input Summary Report September 2014 supply to the cities. Please indicate your level of agreement or disagreement with each of the following statements: [Scale: Disagree; Somewhat disagree; Neutral; Somewhat agree; Agree; Don’t Know] Residential Customer Survey Questions: I would like Platte River Power Authority and (utility) to reduce greenhouse gas emissions 20 percent below 2005 levels by 2020. Fort Collins Utilities – 73% of females responding agreed; 65% of males responding agreed Loveland Water and Power – 58% of people responding strongly or somewhat agreed I would like Platte River Power Authority to increase renewable energy sources like wind and solar to a level of 20 percent by 2020. Fort Collins Utilities – 77% of females responding agreed; 68% of males responding agreed Loveland Water and Power – 75% of people responding strongly or somewhat agreed I would be willing to pay $10/$20/$30 more per month for electricity to meet greenhouse gas reduction and renewable energy goals. Fort Collins Utilities 28% would be willing to pay $30/month to reduce greenhouse gas emissions 7% would be willing to pay $20/month to reduce green house gas emissions 19% would be willing to pay $10/month to reduce greenhouse gas emissions 36% not willing to pay more Loveland Water and Power 16% would be willing to pay $30/month to reduce greenhouse gas emissions www.prpa.org 5 Stakeholder Input Summary Report September 2014 16% would be willing to pay $20/month to reduce greenhouse gas emissions 34% would be willing to pay $10/month to reduce greenhouse gas emissions 35% not willing to pay more Note: Totals are not 100% because some people checked more than one category or did not answer. Commercial Customer Survey Questions: Note: Due to low sample size, Fort Collins did not use results from the commercial customer survey. My organization would like Platte River Power Authority and Loveland Water and Power to reduce greenhouse gas emissions by at least 20 percent below 2005 levels by 2020. Loveland 25% of commercial customers strongly agree 19% of commercial customers somewhat agree 26% of commercial customers neither agree nor disagree 7% of commercial customers somewhat disagree 14% of commercial customers strongly disagree 9% of commercial customers don’t know Platte River’s energy supply to the cities currently includes about 3.5 percent wind energy. I would like Platte River Power Authority to increase renewable energy sources like wind and solar to a level of 20 percent by 2020. Loveland 25% of commercial customers strongly agree 26% of commercial customers somewhat agree 19% of commercial customers neither agree nor disagree 9% of commercial customers somewhat disagree 13% of commercial customers strongly disagree 8% of commercial customers don’t know www.prpa.org 6 Stakeholder Input Summary Report September 2014 My organization would be willing to pay 16% to 20% more for electricity to make quicker progress toward the greenhouse gas reduction and renewable energy targets mentioned above. Loveland Strongly agree – 3% Somewhat agree – 7% Neutral – 18% Somewhat disagree – 20% Strongly disagree – 42% Don’t know – 10% My organization would be willing to pay 11% to 15% more for electricity to make quicker progress toward the greenhouse gas reduction and renewable energy targets mentioned above. Loveland Strongly agree – 1% Somewhat agree – 11% Neutral – 18% Somewhat disagree – 14% Strongly disagree – 46% Don’t know – 10% My organization would be willing to pay 5% to 10% more for electricity to work toward meeting the greenhouse gas reduction and renewable energy targets mentioned above. Loveland Strongly agree – 4% Somewhat agree – 19% Neutral – 16% Somewhat disagree – 14% Strongly disagree – 38% Don’t know – 9% www.prpa.org 7 Stakeholder Input Summary Report September 2014 My organization would be willing to pay 2% to 4% more for electricity to work toward meeting the greenhouse gas reduction and renewable energy targets mentioned above. Loveland Strongly agree – 15% Somewhat agree – 19% Neutral – 19% Somewhat disagree – 11% Strongly disagree – 27% Don’t know – 9% Platte River Question from Longmont Power & Communications Residential Survey: Platte River Power Authority (Platte River), the wholesale power provider coowned by the Cities of Longmont, Estes Park, Fort Collins and Loveland, currently has the lowest rates of all wholesale electric providers located in Colorado. Currently, residential customers pay an average of $0.58 per month on their electric bill to purchase electricity from renewable energy sources, primarily wind power, as part of LPC’s energy mix. Platte River is working to increase the diversity of its generation portfolio and lower its carbon footprint by adding new forms of generation to its resource mix including increasing the amount of renewable energy. In addition to environmental benefits, diversifying the generation portfolio in this manner also makes our wholesale power supply less vulnerable to the uncertainty of future federal or state legislation potentially mitigating future cost increases. This is similar to diversifying an investment portfolio to mitigate future risk. However, with currently available technology, this will likely increase electric rates in the near term. In 2013, it is estimated that LPC’s energy mix will contain about 19% hydroelectric power and an additional 3.5% from other renewable resources. Going forward, do you feel that LPC should: Obtain more from renewable resources (There would likely be associated cost increases) – 39% responded www.prpa.org 8 Stakeholder Input Summary Report September 2014 Obtain about the same with similar costs and benefits as currently – 50% of residential customers responded Obtain less – 5% of residential customers responded No answer – 6% (If answered “OBTAIN MORE” in question 10a) What is the maximum additional amount you would be willing to pay in your monthly bill for Platte River to increase the diversity of its generation portfolio including increasing the amount of renewable energy: $ _______ Mean amount residential customers would be willing to pay to increase diversity of generation portfolio - $9.22 more per month Median amount residential customers would be willing to pay to increase diversity of generation portfolio - $5.00 No answer – 7% Longmont Power & Communications Key Account Survey: Platte River Power Authority (Platte River), the wholesale power provider coowned by the cities of Longmont, Estes Park, Fort Collins and Loveland, currently has the lowest rates of all wholesale electric providers located in Colorado. Currently, approximately 1.2% of the average key account customer’s monthly bill pays for renewable energy, primarily wind power. Platte River is working to increase the diversity of its generation portfolio and lower its carbon footprint by adding new forms of generation to its energy mix including increasing the amount of renewable energy. In addition to environmental benefits, diversifying the generation portfolio in this manner also makes our wholesale power supply less vulnerable to the uncertainty of future federal or state legislation potentially mitigating future cost increases. This is similar to diversifying an investment portfolio to mitigate future risk. However, with currently available technology, this will likely increase electric rates in the near term. www.prpa.org 9 Stakeholder Input Summary Report September 2014 In 2013, it is estimated that LPC’s energy mix will contain about 19% hydroelectric power and an additional 3.5% from other renewable sources. Going forward, do you feel that LPC should: Obtain more from renewable energy sources (There would likely be associated cost increases) – 30% of key commercial customers chose this response Obtain about the same with similar costs and benefits as currently – 59% of key commercial customers chose this response Obtain less from renewable energy sources (There would likely be less cost and less environmental benefit) – 11% of key commercial customers chose this response What is the maximum additional percentage you would be willing to pay in your monthly bill for Platte River to add more renewable energy to its energy mix: ______% Mean percentage key commercial customers would be willing to pay to increase diversity of generation portfolio – 3.16% more per month Median percentage key commercial customers would be willing to pay to increase diversity of generation portfolio – 2% more per month Platte River Listening Sessions & Webinar Spring 2014 With the stated purpose “to gather the thoughts and preferences of citizens regarding future electricity resource alternatives,” Platte River and our partner city utilities issued invitations in February 2014 to the following listening sessions and Webinar: March 24, 2014 – Loveland Water & Power Service Center, 6-7:30 p.m. March 26, 2014 – Longmont Plaza Event Center, 6-7:30 p.m. March 27, 2014 – Fort Collins Hilton, 6-7:30 p.m. March 31, 2014 – Estes Park Resort, 6-7:30 p.m. April 8, 2014 – Webinar, 1-2:00 p.m. In addition to emailing personal invitations to lists provided by each utility with weekly follow-ups, Platte River announced and promoted the listening sessions as follows: Large color display ads and legal ads in five newspapers; Promotion by city utilities through all their communications to customers www.prpa.org 10 Stakeholder Input Summary Report September 2014 and community stakeholders; Newspaper features in each community resulting from news releases followed by outreach; Inclusion in community events calendars aired by local access cable channels in all four communities; Presentations at Loveland Passport to Power event; promotion at televised Fort Collins City Council meeting and Chamber of Commerce banquet; Promotion on City and Platte River Internet sites and Facebook page Listening Session Attendance Figures: Attendance increased overall by 64% compared with listening sessions Platte River conducted in May 2013. Attendance numbers below are based on sign-in sheets, and do not include Platte River or City utility employees. Some attendees did not sign in. Loveland: 20 Longmont: 14 Fort Collins: 39 Estes Park: 11 Webinar: 20 Listening Session/Webinar Process: If people were unable to attend a listening session or participate in the Webinar, or if they wished to provide comments by an alternative method, members of the public were provided with the opportunity to submit comments by letter or email to Platte River. Platte River delivered a PowerPoint presentation (Appendix A) and answered questions in general from the audience. Depending upon the number of attendees, one to four listening circles were formed to gather attendees’ comments. Comments were recorded, and transcriptions were made from each listening circle. In addition, people could submit comments online. Questions Asked each Attendee: What future generation resources would you like Platte River to include in its evaluations for the next Integrated Resource Plan, and why? What kinds of energy efficiency, demand response, and/or distributed generation technologies should Platte River include in its evaluations, and why? Would you like Platte River to evaluate reducing its greenhouse gas www.prpa.org 11 Stakeholder Input Summary Report September 2014 emissions 20 percent below 2005 levels by 2020? Would you like Platte River to limit the analysis to options that keep Platte River’s rates the lowest among wholesale electric suppliers in Colorado? What other information would you like us to share with Platte River’s Board of Directors and staff? Comments by Topic Not all comments are provided below. These are representative comments that were frequently repeated or are unique comments that were stated by only one participant. Comments have been edited for brevity. Platte River recognizes that listening session comments do not necessarily reflect the opinions of all utility customers. Reducing greenhouse gas emissions “I’d like Platte River to consider reducing its greenhouse gas emissions 20 percent as aggressively as we can and still be practical about it.” – Estes Park “Absolutely the goal should be to reduce greenhouse gas emissions by enough to at least be in line with national standards, or aspire to be better than that.” – Fort Collins “I think the urgency of the climate crisis is something that this society hasn’t fully grappled with yet—we need to do whatever we can to reduce greenhouse gas emissions significantly to avoid climate catastrophe.” – Fort Collins “Northern Colorado should be a leader in reducing emissions and contributing to a solution to what is a huge global problem.” – Fort Collins “A 20% reduction below 2005 levels should be seen as only a bare minimum— we should be pushing much more aggressively.” – Fort Collins “There’s no reason not to set the bar higher than 20 percent by 2020.” – Longmont “I would really like to see Platte River accelerate its greenhouse gas emission reduction percentage—I think there’s a commitment to doing what’s right for the planet and for the people.” – Longmont “We’re on the right path, and we’ve got the tools. We own the power company and the distribution system.” – Longmont www.prpa.org 12 Stakeholder Input Summary Report September 2014 “The state legislature hasn’t targeted us directly, but I think we should anticipate future regulation or at least go with the sense of the legislature in trying to meet those goals even if we aren’t legally required to do that.” – Loveland “I feel privileged to be here and learn of the progressiveness of the city on lowering the carbon footprint compared to the rest of the country.” - Loveland Fossil fueled-generation “I’d hate to be in your shoes, trying to figure out how to include gas with the way the media’s getting us to think about gas. But I’d like to see those combined cycle plants because they also provide more flexibility than the coal plants.” – Estes Park “I would hope that we would not use fracked gas as a resource for our community.” – Estes Park “I would like to see a lot of research into cleaner coal, and not the proposition of pumping it into the ground.” – Fort Collins “There are even more complications with natural gas than most people realize.” – Fort Collins “With respect to natural gas and all of the concerns surrounding methane emissions and fracking, I would ask Platte River to be very cautious about decisions they make that have long-term impacts.” – Fort Collins “I understand that Rawhide is a pretty clean plant using clean Wyoming coal and there is something to be said for that.” – Fort Collins “I would like to see all of the above generation resources except coal.” – Longmont “We need to wan ourselves off of fossil fuels including the natural gas-fired generators.” - Longmont “I definitely see natural gas being a really good complement to renewables because it can be dispatched quickly.” – Longmont “We already have enough coal I think, but we have very little natural gas base load capacity. That will reduce, compared to coal, the amount of CO2 and give us the base load capacity that wind and solar would not be able to.” – Loveland www.prpa.org 13 Stakeholder Input Summary Report September 2014 Renewable resources/Distributed generation “I would be interested in more solar energy and wind power.” – Estes Park “I’m beginning the process of building a new home and am frustrated by the lack of sustainable energy support I can find to use on my project.” – Estes Park “I personally lean toward solar thermal, plus solar of course, and wind.” – Fort Collins “I’d like to see renewable, distributed generation, and integration of electric vehicles to help the system.” – Fort Collins “I would like Fort Collins and Platte River to really be a leader in technology and innovation so we can get the rest of the country to follow.” – Fort Collins “The price of renewable fuel is free and the technology prices keep coming down, so there’s going to be a crossover at some point which will help hedge the rising costs.” – Longmont “I’m very interested in the idea of the solar garden and would like to see that really promoted.” – Longmont “I think solar and wind can form a much larger part of your mix than the 20 by 2020 thing.” – Longmont “Right now we pay a premium for wind power—wouldn’t it be great if we could pay a premium for a solar farm in our back yard?” – Longmont “I like the idea of distributed generation and encouraging small scale energy generation that feeds into the grid.” – Longmont “A future generation resource we need to be wary of is wind—it does come with environmental impact in the amount of birds that are killed when these wind farms are put up.” – Loveland “I would like to see a solar farm, and it makes sense to put the farm right near your current generation facilities.” – Loveland “It’s an education process to make these types of non-polluting, renewable investments, which in the long run I’m convinced will be a payoff.” – Loveland “We have a good wind resource on the northern boundary with Wyoming and on the eastern part of Colorado, and we have Vestas right in the local www.prpa.org 14 Stakeholder Input Summary Report September 2014 neighborhoods.” – Loveland “If we’re going to do solar, if we’re going to do wind and they are going to have a higher cost, it is a good program to make voluntary.” – Loveland Energy efficiency “I think the EfficiencyWorks program that Platte River is doing with its member cities is a really good model, and regional programs can help make additional progress.” – Fort Collins “If a smaller community doesn’t have the level of financing to help with demand side management programs, Platte River can help with that.” – Fort Collins “Because buildings are so long-lived, it’s easier to build them energy efficient rather than try to retrofit them down the line.” – Fort Collins “I’d like to see us maximize energy efficiency…and of course we know that the cheapest energy source is not using it.” – Fort Collins “The cities are doing a lot in terms of encouraging energy efficiency.” – Longmont “I think there could be some sort of energy efficiency campaign with healthy competition among communities.” – Longmont “On conservation, which is the easiest and cheapest to go after, you need to prioritize where the big dollars are and the big kilowatt-hours and go after that.” – Loveland “There is really a lot of future for efficiency and the way we use power and the timing.” – Loveland “I’d like to comment on the home energy efficiency program. I know it’s subsidized by the cities and Platte River, and it’s a very good program I think.” Loveland Nuclear, small hydro and other generation technologies “I really support the idea of continuing to look at nuclear as it advances.” – Fort Collins “I like the idea of combined heat and power to take advantage of existing thermal plants; looking at small hydro is something that should be in there as www.prpa.org 15 Stakeholder Input Summary Report September 2014 well.” – Fort Collins “I’m hoping you will strive to find best practices and resource planning from around the country or even from around the world.” – Fort Collins “If the Authority were to move toward a decision of nuclear that scares me.” – Longmont “I would love to see small hydro.” – Longmont “It’s good to be on the horizon looking out, seeing the new technologies that are coming, because if Loveland and this area were to stay on the forefront of that, it’s not only going to be good for our communities but also put Loveland on the board as a leader in the country with some of these innovative technologies.” - Loveland Electricity Costs “I’m very concerned about rates. I live on a fixed income, so I don’t have the latitude for high rates…But I think that probably most people in Estes would say they are willing to give a little to get more, because we are a very progressive group.” – Estes Park “Keeping the rates competitive—I think that’s maybe a more relative measurement.” – Fort Collins “I think it’s despicable to say with pride that we have the lowest rates around while we also have high carbon content in our portfolio.” – Fort Collins “I would like to see when costs are considered the true costs of climate changing impacts incorporated—human health costs, costs of repairs from fires and floods—things we’re already seeing.” – Fort Collins “I think prices have to go up to reflect the true cost of power, and that will send the kind of signals that consumers will pay attention to.” – Fort Collins “You want to analyze all the options and have an idea of lowest cost in terms of dollar costs and rates, but you also want to know about the non-dollar costs of the various approaches.” – Longmont “It’s a little bit insulting to suggest limiting analysis to options that keep Platte River’s wholesale costs the lowest.” – Longmont “I’m certainly willing to pay more for a lower carbon electricity resource.” – www.prpa.org 16 Stakeholder Input Summary Report September 2014 Longmont “Longmont has very good rates, but the energy mix is dismal. We need to pay to green up our resources.” – Longmont “This movement toward small plants, solar and all that—it’s going to whipsaw the people that can’t afford to do that. We could really get into a situation where we’re taking capacity away from the power company and driving up the cost to low income people.” – Longmont “There’s got to be some balance with this question as to efficiencies and costs and other things; what is the best thing for the environment may not be the cheapest.” – Loveland “And it’s like Platte River providing that cheap power, and we tend to take that for granted—and it’s going to come to an end.” – Loveland “Trying to keep Platte River’s rates the lowest would be a short-term attitude as opposed to a long-term vision.” – Loveland “I think Platte River has done a great job of keeping the rates low, but when you look at the energy mix you can see that they’re much more carbon-intensive than other major utilities in Colorado.” - Loveland Miscellaneous Comments for Board and Management “I am excited that Platte River is reaching out to the communities and wanting to work with everyone.” – Fort Collins “I applaud the Board for the effort to set up the listening sessions.” – Fort Collins “We are fortunate to have a conscientious service such as Platte River. They care about the citizenry and the affordability, and the goal is not to make a profit. Thanks to the folks that are making all these efforts to evaluate, to do better, and to move more toward healthy energy.” – Longmont “You guys seem to know what you’re doing—you’ve got a handle on things. There’s no stockholders here…we have it made right here.” – Loveland “Platte River is in the best position to be a role model…Platte River can be more idealistic and shoot for higher levels of reducing greenhouse gases than most other utilities.” - Loveland “Platte River should work to produce electricity with zero emission of pollutants. www.prpa.org 17 Stakeholder Input Summary Report September 2014 This should be your long-term goal. You shouldn’t wait for the politicians. Platte River has a lot of good people and I am confident you will do a good job.” – Loveland Appendix A: Listening Session and Webinar Presentation (Available at www.prpa.org under Planning) www.prpa.org 18