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HomeMy WebLinkAboutSCMinutes_2017_11_08Sustainability Council November 8, 2017 A meeting of the Sustainability Council was held on Wednesday, November 8, 2017 at 4:00 p.m. at Brookings City & County Government Center with the following members present: Norma Nusz Chandler, Nels Granholm, Stephanie Aure, Shelly Brandenburger, Bob McGrath, Paul Peterson, Caleb Vukovich, Jennifer McLaughlin, Mike Lockrem and Jane Hegland. Ben Kleinjan and Betty Beer were absent. Others present: Guest Steve Meyer, Executive Vice President / General Manager of Brookings Municipal Utilities and Laurie Carruthers. Chair Nusz Chandler called the meeting to order at 4:04 p.m. A motion was made by McLaughlin, seconded by Granholm, to approve the agenda. All present voted yes; motion carried. A motion was made by McGrath, seconded by Brandenburger, to approve the October 11, 2017 minutes. All present voted yes; motion carried. Discussion with Steve Meyer, Executive Vice President / General Manager of Brookings Municipal Utilities Meyer presented on topics currently connected with sustainability. BMU is converting the 46 KV system to a 115 KV driven by the growth in Brookings. The city could operate on 46 KV, but not as efficiently. Meyer distributed a chart, which provides the historical electric fund losses or unaccounted from 2002 to 2016. When the loss is reduced, less electricity has to be generated. The conversion will add more capacity to the infrastructure, which results in less loss. This helps sell bonds and adds savings to the bottom line. This is a substantial investment for infrastructure, but it will pay off. Meyer provided background of the structure of BMU, which is managed by the Utility Board. According to state statute utilities can be managed separate from City Council. The referendum was passed in 1970. Watertown is also managed by a Utility Board. The city got into the electric business in 1901. An entrepreneur was selling electricity for an internal combustion system for street lights and soon got in over his head. The city jumped in and bought out entrepreneur. The Brookings coal fire plant was unreliable. The federal government built mainstream dams and the infrastructure to bring electricity into the cities. Otter Tail built 46 KV systems throughout the Midwest. 19 MW were allocated to Brookings at the time of Western Area Power Administration connection. Brookings soon realized 19 MW was not going to be enough. Brookings also receives power from the Laramie River Station in Wheatland, WY. Missouri River Energy Services is a 60 community member entity that serves ND, SD, MN and IA. Water resources of the country belong to the people and were priced at half the cost of any other power purchase. Brookings signed a long-term agreement beginning in 1975 with the terms that Brookings purchase all supplemental power from MRES until 2052. In 1986 Brookings received 40% of their power from MRES and 60% from WAPA. Today this is flipped because WAPA power is half the cost. Brookings represents 10% of the MRES load. Meyer is one of the 13-member MRES board of directors. If Brookings gets a huge growth, MRES’s agreement is to supply all power. MRES not totally limited to the Laramie Station. It also includes natural gas, nuclear, WAPA, market purchases and others. BMU does not serve university. Heartland Power out of Madison, SD supplies all universities. There is a WAPA substation north of Brookings. Basin Electric serves cooperatives, also part owner of Laramie. There are three kinds of power supplies – investor owned, cooperatives, and municipals. When first starting up, the investor owned power companies plucked the big communities, not small or rural ones. MRES includes wind – 35 MW on normal conditions, 55 MW on high flood years. MRES built a small experimental solar project of 1 MW in Pierre, which has been operating for one year. MRES is running Bright Energy Solutions a rebate program, which provides incentives for lighting projects, energy efficient appliances and additional rebates. BMU has become more active in rebates because if you do not use them, you loose them. MRES is working on the Red Rock Hydroelectric Project on the Des Moines River near Pella, IA. The cost for the project is $400 M split between members of the MRES. Green Power Program - MRES is starting to develop a rate to buy renewable power, priced higher than existing power for consumers who want to be more environmentally conscious. The Green Power Program is not available in Brookings yet. BMU is working on a street light replacement of high pressure sodium to LED lights to be more economical and use 40% less electricity. There were over 2,000 wood poles to be removed when the project started. Street lighting is provided by BMU, but the streets are under the governance of the City Council. Decorative lights have become popular, but are more expensive. Standard light will be installed or pay the difference between the decorative light. AMI – automated metering infrastructure is a 2-way communication system on meter reading, which passes the costs to the user to consume off peak energy. In 6-8 years BMU will evolve toward this system. The concept is to fill the valleys rather than clip the peaks. Electric vehicle parking stations will have metering ability. Electric car will be a new load, and BMU will want this load in the valleys (charge in the middle of the night). Sioux Valley Energy is utilizing these meters, but there system is clipping the peaks, not filling the valleys. Brookings has managed a voltage system at 110, and at times has dialed back the voltage. This clip the peaks without disrupting the customers. AMI will enhance this voltage reduction. AMI control the voltage level better. AMI technology will be added to water meters at the same time. BMU will have a better understanding of the entire system with this advanced technology. Right now, BMU does not know about an outage until someone contacts them. AMI is a smart grid and customers will have a portal. Brookings is fortunate with rich aquifers, but has been inattentive to the wellheads east and north of the city. Many water supplies have been contaminated, but Brookings has not. It was an eye opener when the Novita plant was proposing to build over Zone A. BMU got involved and moved the plant to over the edge of the aquifer. They are working on approaching land owners about stewarding the land and the dangers of contaminating aquifers. Aurora’s aquifer is high in nitrates, but Brookings has no concern. There are many theories on this, but nothing has been determined. Both the north and eat water plants are aging and reaching capacity. The plan is to build in 2018 once a location is determined. Hegland, Aure, Brandenburger left at 5:14 pm. Lost quorum. Nusz Chandler offer assistance in distributing information to the public and asked if Meyer would speak at a Green Drinks Presentation in 2018. Meyer agreed and will look at his schedule. BMU just completed a new $30 M wastewater treatment plant. BMU is being proactive in saving money for future regulations and treatment standards. Brookings does discharge into Big Sioux River, but it is cleaned and meets all regulations prior to discharge. The wastewater team also manages and monitors industrial users, which is measured with biological oxygen command. Everyone is charged the same rate. When their waste water levels are elevated, industrial users are charged more. Back in the day, the city bailed out another entrepreneur and started the communications business. Bell started enforcing patents and taking over communications in larger communities. The Brookings entrepreneur was German and had a German product, so the business could stay. The communications business was considered an incumbent local exchange carrier and guaranteed a rate of return. It was the only telecommunications provider at the time and subsidized by larger communities. Now there are less and less subsidies and we are in a state of change with competitive service. There was once 15,000 landlines in Brookings. Now there are 9,000, with 18,000 subscribers in cell service. Granholm left at 5:22 pm. Brookings has benefitted from enterprises and the city has not sold off any. Enterprises bring in tax advantages and commerce. McLaughlin left at 5:32 pm. Peterson questioned Meyer about net metering. Meyer could only speak on SD laws. SD follows the Public Utility Regulatory Policies Act (PURPA). With the current cost, the customers who does not have net metering would subsidize the users. There is an impression that utilities will not pay for power coming back in. They will, but it would be at a voided cost. Lockrem left at 5:38 pm. Meyer also mentioned asolar farms where residents purchase a panel at a higher price and it is maintained. This is more effective than home panels. Moorhead has a solar farm. Adjourn Meeting adjourned at 5:47 p.m. Submitted by Laurie Carruthers