Chelan PUD Taking Next Steps in New Meters
From a press release - Chelan PUD commissioners Monday agreed to move into developing detailed system design requirements and preparing a Request for Proposal (RFP) by year’s end asking for information from vendors wanting to supply digital two-way electric meters to the PUD.
“We will ask potential vendors to provide us with detailed information on how they will address some of the concerns we heard from customers about privacy, data security, potential radio frequency health effects and fire safety,” said Andy Wendell, Customer Service director. “We also will develop our ‘opt-out’ and ‘opt-up’ alternatives during the next several months.”
Commissioners said gathering more information is vital and developing the RFP is an important step in continuing to research customer concerns.
Commissioner Steve McKenna said the PUD’s mission to provide reliable electric service that enhances the quality of life in the county guided him in agreeing to the need for the RFP. “I want the RFP to proceed to gather additional information for the board to decide how to proceed in the best interests of all customer-owners.”
Board President Randy Smith and Commissioners Garry Arseneault, Dennis Bolz and Ann Congdon supported that approach, although Congdon said she has reservations, “and they surround health issues.”
General Manger Steve Wright described research into concerns about health effects including a World Health Organization statement that “…most scientists and clinicians agree that any health effects of low level electromagnetic fields, if they exist at all, are likely to be very small compared to other health risks that people face in everyday life.”
“Opt-out” would be an alternative for customers to retain their existing meter. “Opt-up” would be an alternative to get a smart meter that does not use radio frequency. Pricing and policies for these option need further development.
The advanced, two-way digital meters are one element of Chelan PUD’s “technology vision” for an intelligent grid that provides value for customers with increased service options along with efficiency gains for the PUD to help keep electric rates low, Wendell said. Efforts toward that goal started in 2005 with upgraded one-way digital water meters. The conversion of electric meters was delayed during the financial crisis of 2008.
In 2010, the PUD began installing one-way digital electric meters as aging analog meters needed replacement. In 2015, the PUD again looked into advanced meters with a review of technology improvements for two-way digital meters.
Updating the business case in late 2016 showed positive returns by installing two-way digital meters for every customer. The PUD began its outreach with customers in March this year, meeting with more than 400 customers directly at 18 different events and reaching out to 33,000 customers via email and all PUD customers via direct mail postcard. The response has been mostly positive. Customers can learn more about digital meters and make comments using the PUD’s website: chelanpud.org/advanced-meters.
Seven customers spoke at Monday’s meeting about security, health and safety concerns.
Bolz thanked audience members for getting involved and for their “civil discourse.” “I appreciate it tremendously,” he said.
With the board’s direction, staff and a consultant will start detailed system design, develop the RFP including opt-out/opt-up policies, include the project in budgets and forecasting and develop the timeline. Pending a decision from commissioners after evaluating responses to the RFP, installation could start in late 2018 or early 2019.
In other business Monday, commissioners:
· Received the annual update on insurance premiums for coverage starting July 1. Ron Gibbs, insurance and claims manager, forecast an estimated 4.6 percent premium decrease from last year’s $2.24 million, based on negotiations so far. Reasons for the decrease include no new PUD claims, competition in the insurance market and the PUD’s strong risk and asset management programs, Gibbs said. Negotiations continue and commissioners will be asked to approve an “up to” amount for 2017-18 coverage at the June 26 meeting.
· Continued discussing Public Power Benefit project funding for the rest of 2017 and 2018. Moving toward a decision on June 26, commissioners indicated support for allocating $4 million for 2018 that would include $2.5 million for fiber network expansion and continuing the day use pass for PUD parks managed by the state. Board members also indicated support for funding three hydro research projects to improve operations, better predict unit conditions and outages and identify research opportunities. Requested is $250,000 from remaining 2017 funds and $250,000 from 2018 funds. Also requested is using $1 million from remaining 2017 funds to renovate Rocky Reach Visitor Center’s fish viewing area.
· Approved an extended lease with the City of Entiat to operate Entiat Park following renovation and the construction of Entiatqua Trail under terms of the PUD’s license for Rocky Reach Dam. The agreement expires in 2052 at the end of the license, but can be revoked by either party with notice. It also calls for the city to provide an annual maintenance plan to the PUD for review and commits Chelan PUD to pay the city up to $125,00 a year to cover costs that exceed operating revenue.
· Discussed long-term financial guidance for the PUD’s water, wastewater and fiber divisions for planning and forecasting purposes after 2019, when the current strategic plan ends. Discussion of guidance for the electric system is set for the next two meetings.
· Noted that the board’s next meeting has been rescheduled to Monday, June 26.
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