ABAG Power: Annual Board Meeting
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ABAG Power: Annual Board Meeting |
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ABAG POWER Annual Board Meeting 98-11
November 4, 1998 n Oakland Marriott City Center
1001 Broadway - Oakland
Chair Mike Garvey called the meeting of the ABAG POWER Board of Directors to order at 1:34 p.m.. The agencies having representatives at this meeting and constituting a quorum were as follows:
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City of Albany
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County of Alameda
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Golden Gate Bridge & Hwy
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Eugene Leong, President of ABAG POWER, gave a presentation reviewing the progress of both the gas and electric power pool programs during the past year. He indicated that the gas pool was completing its second year having achieved savings for its member agencies both years. The electric pool, which will complete its first nine months of operation by December 31, 1998, is experiencing the growing pains typical of a new program with the three-month delay in start up, problems in meter information, and other related issues. Recommendations for the pool achieving its original vision were presented.
For the office of Chair, it was moved by deRussy/S/Brown/C/ to nominate Ken Blackman as Chair for 1999. For the office of Vice Chair, it was moved by Garvey/S/Brown/C/ to nominate Cheryl D. Jackson as Vice Chair for 1999. It was moved by Blackman/S/Brown/C/ to nominated Mike Garvey, Kathy Brown, Wayne Green, Ross Hubbard, Alan Nadritch, Robert Jacques and John deRussy to serve as members of the Executive Committee for 1999.
Dave Finigan, Program Advisor, made a presentation on gas pool program for FY1997-98 program year. The program had total savings of two percent with a combined two-year average of four percent. This resulted in total savings for Pool of approximately $200,000 since program was initiated in April, 1996. The primary reason for the reduced savings in the second year was the milder winter, which caused lower gas demand and market prices. This resulted in Pool's gas prices, paid through its contract supplier, being higher than the market during certain months of the program year. Pool members also experienced one time CPUC approved gas surcharge that reduced the Program savings. It is planned to improve the Pool's performance in the third year by improving gas management, pursuing joint gas purchases, and recruiting new Pool members.
Heidi Cruz, ABAG POWER Program Manager, made presentation on Electric Pool Program for its first four months of operation from April through July. The Pool was delayed three months due to start up problems with the Independent System Operator. It has also experienced problems with delayed and inaccurate meter reads and installation delays of Cellnet meters. These problems which were also experienced by other pools are being dealt with. The Program is expected to operate more smoothly during the coming months. She indicated that total electric pool program costs for the first four months were about 0.2 % percent higher than PG&E. She projected the total bill for participation in the ABAG electric pool program would be 1.0 to 1.5% higher that PG&E for the nine month period from April though December, 1998. The primary reason for the lack of savings was the three-month delay and the power supply contracts ABAG POWER entered into last year being higher priced than the market price for power during portions of the first four month period. This trend, to varying degrees, is expected to continue for the remainder of this year. She presented three alternative power purchasing strategies to improve the Pool's ability to achieve a savings in 1999: 1) reduced risk portfolio, 2) guaranteed discount to an index, and 3) full service with a guaranteed discount to an index.
Mike Garvey presented the report of the Executive Committee on the Electric Pool. He indicated that although the Executive Committee was disappointed with the results of the Electric Pool program to date, they felt that the relatively small program loss represents an investment in the Program which should provide future benefits to participating agencies. The Executive Committee unanimously agreed to recommend continuing the Electric Pool with steps taken to provide savings next year, such as reducing risk in purchasing power and implementing operational improvements in billing and metering to help agencies reduce their staff time with this program. He also reminded members that those agencies desiring to withdraw from the Electric Power Pool need to notify ABAG in writing by December 1, 1998.
Mike Garvey reviewed the power purchasing options previously outlined and indicated that the Executive Committee is recommending to the full Board that staff be directed to pursue changing to a strategy of seeking a guaranteed discount to an index in lieu of the existing portfolio approach to promote program savings and reduce the risk of electric program costs being higher than PG&E. The Executive Committee also recommended the establishment of billing and meter subcommittees of the existing Technical Committee and formation of a new ad hoc committee to review the size of accounts in the pool. After presenting the Executive Committee report, it was moved by Tom Reeves and seconded by Ann Ritzma to accept the report. The motion was unanimously approved by the Board of Directors.
None
The meeting was adjourned at 3:04 p.m.
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Copyright © 1996-1998 ABAG. All rights
reserved.
dmm 03/09/99