BEREA UTILITY ADVISORY BOARD
MEETING MINUTES
March 27, 2012

 Present: Diane Zekind, Rodney Short, Gina Chamberlain, Steve Boyce, Josh Bills, Randy Stone, Ed Fortner, Hope Broeker (MACED intern)

Absent: N/A

The meeting was called to order by Steve Boyce.

Updates and Reports:

  • Steve said the Student Internship Position Description had been submitted to Berea College and they have one good applicant at this point.  By no later than April 6, 2012 Steve and Ed will review the applications, chose and have an intern in place to work on analyzing EE programs such as inverted rates and more if time permits.  Ed said a workstation is being prepared for an intern.
  • Solar Farm: currently there are 12 leases remaining with interest in multiple leases by both Berea Community School and Kentucky Environmental Foundation. There was a discussion about Matt Partymiller, Solar Energy Solutions being a person that handles solar energy renewable credits (SREC’s).  He keeps an eye on and advises about the market, which is largely based on the demands from Ohio.  The payments recieved would be approximately $900- $1000 annually based on $30.00 per megawatt hour.  Ed stated it could possibly be looked at as a maintenance fund.
  • Ed gave an update about meeting with Elizabeth Crowe, KY Environmental Foundation, and sitting in on a teleconference with EKPC (East KY Power Cooperative) about an agreement to establish a collaborative to focus on energy efficiency and renewable energy sources.  Many good questions arose.
  • Ed also met with Annette Dupont-Ewing, Executive Director of Kentucky Municipal Utility Association (KMUA) concerning a circuit rider for managing energy efficiency programs across multiple utilities.
  • Ed said he has reviewed Josh’s net metering ordinance draft and appreciated his work and input.  Diane had shared the draft with others at Berea College and she had a list of questions and/or suggestions that Ed felt would be valuable.  Ed will work on a draft for the net metering ordinance which he will share with BUAB and present to Randy Stone for final approval.
  • The topic of the annual rate increase was brought up and it must be approved and adopted by July 1, 2012 because KU will start charging BMU as of that date. Ed said KU has given BMU an increase figure of 7-8% over the next year. Randy stated there have been unexpected challenges such as a mild winter that resulted in low electric bills for customers but will contributed to an approximate $700,000 short fall by the end of the fiscal year.  He said the water and sewer utilities are subsidizing the electric this year.

 Johnson Controls Presentation:

  • We were joined by Tom Hogan, Account Executive and David Walke, Energy Engineer with Johnson Controls.  They gave a presentation on Using Performance Contracting for Fund Infrastructure Improvements.  Also joining the group was Henry Jackson (AICP: KY).
    • Ways to energy upgrades at no cost to rate payers
    • KRS 45 A Kentucky Model Procurement Code
    • ESCO (Energy Service Company) They develop and install projects designed to improve energy efficiency and reduce operations and maintenance costs. They become the general contractor and assume the technical and performance risk associated with the project.
    • Incentive: If the savings that are guaranteed are not achieved, Johnson Control pays the difference between what was guaranteed and what was actually achieved.
    • Johnson Control is not a lender; a third party financial  company must be used for loans; which gets the first payment after 1 year from signing and legislation says the 3rd party gets paid after savings is realized.
    • Johnson Control customers can choose their own vendors, engineers, etc.
    • Guarantee efficiency for projects with a 15 year savings bucket
    • They negotiate their percentage for full design on an hourly rate
    • Contracts are lined up with financial savings.

Ed pointed out that several projects are already in place or being implemented in Berea to improve accuracy and energy efficiency.  Mr. Hogan said it appears that Berea is ahead of most Cities in energy efficiency, but they could identify areas by doing audits in areas that we choose.

Meeting was adjourned.  The next BUAB meeting will be April 24, 2012 at 7:30 a.m. to 8:50 a.m.