12
Whats Inside: February 2015 Hometown Connections Report Research = Customer Intelligence 3 Regulatory Update EPA Permit for Brownsville Plant 4 Reliability Standard in ERCOT 4 Renewables and DC Ties 4 TPPA M&CS Conference Agenda 10 Registration Form 11 TPPA Calendar TPPA M&CS Conference March 2-4, 2015 Westin Riverwalk San Antonio, TX TPPA Annual Meeting July 20-22, 2015 Westin Riverwalk San Antonio, TX TPPA Legal Seminar November 5-6, 2015 Lone Star Court Austin, TX TPPA’s Address... 701 Brazos, Suite 1005 Austin, TX 78701 PH - 512-472-5965 FAX - 512-472-5967 www.tppa.com LCRA Joins Historic NASA Mission to Monitor Soil Moisture from Space In an effort to obtain additional insight to use in monitoring droughts and managing floods, the Lower Colorado River Authority will look to space to get a better view of conditions below the Earth’s surface. LCRA has teamed up with The University of Texas at Austin Jackson School of Geo- sciences to collect soil moisture data as part of the Texas Soil Observation Network and NASA’s first Soil Moisture Active Passive (SMAP) mission. NASA launched its SMAP satellite on Jan. 31 to map soil moisture around the world for the first time. As part of the mission, new LCRA Hydromet soil moisture sensors in the ground near Fredericksburg will help scientists confirm the satellite data. The LCRA Hydromet is a network of more than 270 weather and river gauges in the lower Colorado River basin from the Texas Hill Country to the Gulf Coast. “We’re on the cutting edge of technol- ogy,” said Ron Anderson, LCRA Water Resource Management chief engineer. “There are numerous stream and rain gauges in the lower Colorado River basin, but up until now there has been no way to measure soil moisture accurately – a missing component in forecasting the impact of droughts or managing floods. Leveraging this technology may provide a model for the state and the nation for how soil moisture data is used in water planning.” In summer 2014, LCRA and UT research- ers installed soil moisture sensors at various depths at LCRA Hydromet gauges near Fredericksburg in Gillespie County. The LCRA sensors and others around the world will help verify information collected from the satellite. At the same time, the satellite will fill in the gap between the ground networks to map soil moisture across the globe. NASA says the SMAP program will provide a greater understanding of Earth’s water cycle – an understanding that can help provide early warnings of droughts, improve flood warnings and assist in crop productivity. The $916 million NASA satellite launched Saturday and will orbit Earth once every 98.5 minutes for at least three years. The satellite images are expected to provide the most accurate and highest resolution maps of soil moisture ever obtained. The impacts of droughts and floods are linked to soil moisture conditions. When soil is saturated, rain runs off more quickly. When soil is dry – as it has been during this prolonged drought in the Texas Hill Country – the moisture must be replaced before water can run off into nearby streams and eventually into the Highland Lakes in the lower Colorado River basin. LCRA water managers plan to use the ground- and satellite-based soil moisture data to help forecast future water supply. John Hofmann, LCRA executive vice president of Water, said: “This project encompasses two of our missions – flood management and water supply. Information about soil moisture is critically important not just during droughts, but also during floods. We can get the same amount of rain and have different results in terms of flooding and water flowing into the lakes based on the soil moisture or lack of soil moisture. This will give us scientific data on soil moisture for the first time.’’ LCRA is managing Central Texas’ primary water supply through an ongoing severe drought. Many times over the last few years the region received significant rain, but saw only a trickle of runoff into the Highland Lakes because of the extremely parched soil.

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Page 1: LCRA Joins Historic NASA Mission to Whats Inside: Monitor ... · John Hofmann, LCRA executive vice president of Water, said: “This project encompasses two of our missions – flood

February 2015/Page 1

Whats Inside:

February 2015

Hometown Connections Report

Research = Customer Intelligence 3

Regulatory Update

EPA Permit for Brownsville Plant 4

Reliability Standard in ERCOT 4

Renewables and DC Ties 4

TPPA M&CS Conference

Agenda 10

Registration Form 11

TPPA CalendarTPPA M&CS ConferenceMarch 2-4, 2015Westin RiverwalkSan Antonio, TX

TPPA Annual MeetingJuly 20-22, 2015Westin RiverwalkSan Antonio, TX

TPPA Legal SeminarNovember 5-6, 2015Lone Star CourtAustin, TX

TPPA’s Address...701 Brazos, Suite 1005Austin, TX 78701PH - 512-472-5965FAX - 512-472-5967www.tppa.com

LCRA Joins Historic NASA Mission to

Monitor Soil Moisture from SpaceIn an effort to obtain additional insight to

use in monitoring droughts and managingfloods, the Lower Colorado River Authoritywill look to space to get a better view ofconditions below the Earth’s surface.

LCRA has teamed up with The Universityof Texas at Austin Jackson School of Geo-sciences to collect soil moisture data as partof the Texas Soil Observation Network andNASA’s first Soil Moisture Active Passive(SMAP) mission. NASA launched its SMAPsatellite on Jan. 31 to map soil moisturearound the world for the first time.

As part of the mission, new LCRAHydromet soil moisture sensors in the groundnear Fredericksburg will help scientistsconfirm the satellite data. The LCRAHydromet is a network of more than 270weather and river gauges in the lowerColorado River basin from the Texas HillCountry to the Gulf Coast.

“We’re on the cutting edge of technol-ogy,” said Ron Anderson, LCRA WaterResource Management chief engineer. “Thereare numerous stream and rain gauges in thelower Colorado River basin, but up until nowthere has been no way to measure soilmoisture accurately – a missing component inforecasting the impact of droughts ormanaging floods. Leveraging this technologymay provide a model for the state and thenation for how soil moisture data is used inwater planning.”

In summer 2014, LCRA and UT research-ers installed soil moisture sensors at variousdepths at LCRA Hydromet gauges nearFredericksburg in Gillespie County. The LCRAsensors and others around the world will helpverify information collected from the satellite.At the same time, the satellite will fill in thegap between the ground networks to map soilmoisture across the globe.

NASA says the SMAP program willprovide a greater understanding of Earth’s

water cycle – an understanding that canhelp provide early warnings of droughts,improve flood warnings and assist in cropproductivity. The $916 million NASAsatellite launched Saturday and will orbitEarth once every 98.5 minutes for at leastthree years.

The satellite images are expected toprovide the most accurate and highestresolution maps of soil moisture everobtained.

The impacts of droughts and floodsare linked to soil moisture conditions.When soil is saturated, rain runs off morequickly. When soil is dry – as it has beenduring this prolonged drought in the TexasHill Country – the moisture must bereplaced before water can run off intonearby streams and eventually into theHighland Lakes in the lower ColoradoRiver basin.

LCRA water managers plan to use theground- and satellite-based soil moisturedata to help forecast future water supply.

John Hofmann, LCRA executive vicepresident of Water, said: “This projectencompasses two of our missions – floodmanagement and water supply. Informationabout soil moisture is critically importantnot just during droughts, but also duringfloods. We can get the same amount ofrain and have different results in terms offlooding and water flowing into the lakesbased on the soil moisture or lack of soilmoisture. This will give us scientific dataon soil moisture for the first time.’’

LCRA is managing Central Texas’primary water supply through an ongoingsevere drought. Many times over the lastfew years the region received significantrain, but saw only a trickle of runoff intothe Highland Lakes because of theextremely parched soil.

Page 2: LCRA Joins Historic NASA Mission to Whats Inside: Monitor ... · John Hofmann, LCRA executive vice president of Water, said: “This project encompasses two of our missions – flood

Texas Public Power Association701 Brazos, Suite 1005Austin, Texas 78701Phone (512) 472-5965Fax (512) 472-5967www.tppa.com

BOARD OF DIRECTORS

PresidentPhil Williams (Denton)

President-ElectLarry Weis (Austin Energy)

Vice-PresidentBob Kahn (TMPA)

Secretary/TreasurerKyle Dicke (Floresville EL&P)

Doyle Beneby (CPS Energy), Ron Bowman (Boerne), Jim Briggs(Georgetown), Gary Brown (WTMPA), John Bruciak(Brownsville PUB), Paula DiFonzo (New Braunfels Utilities), BillDollar (Garland), Doug Faseler (Seguin), Sharon Hayes(Weatherford), Tracy McCuan (Kerrville PUB), Carroll McDonald(WTMPA), Kent Myers (Fredericksburg), Shawn Raborn (LaGrange), Kean Register (Bryan), Darren Schauer (GVEC), GarySingleton (GEUS) and Phil Wilson (LCRA).

STAFFExecutive DirectorMark Zion

Communications ManagerDebra L. Scarbo

Regulatory ManagerWendell Bell

Office ManagerJosie Caballero

MEMBERS

Cities: Austin, Bartlett, Bastrop, Bellville, Boerne, Bowie, Brady,Brenham, Bridgeport, Brownfield, Brownsville, Bryan, Burnet,Caldwell, Castroville, Coleman, College Station, Cuero, Denton,Electra, Farmersville, Flatonia, Floresville, Floydada,Fredericksburg, Garland, Georgetown, Giddings, Goldsmith,Goldthwaite, Gonzales, Granbury, Greenville, Hallettsville,Hemphill, Hempstead, Kerrville, Kirbyville, LaGrange,Lampasas, Lexington, Liberty, Livingston, Llano, Lockhart,Lubbock, Luling, Mason, Moulton, New Braunfels, Newton,Robstown, San Antonio, San Augustine, San Marcos, SanSaba, Sanger, Schulenburg, Seguin, Seymour, Shiner,Smithville, Timpson, Tulia, Waelder, Weatherford, Weimar,Whitesboro, YoakumJoint Action Agencies: Texas Municipal Power Agency, WestTexas Municipal Power AgencyRiver Authorities: Lower Colorado River AuthorityElectric Cooperatives: Central Texas, Fayette, GuadalupeValley, Texas Electric Cooperatives

February 2015/Page 2

The 84th Regular Session of the Texas Legislature convened on the second Tuesday ofJanuary and will last for 140 days, through June 1st.

The past two election cycles have seen significant turnover in the membership of theTexas Legislature. In the Texas House, 43% of the 150 State Representatives have onesession or less experience (24 freshmen, 41 sophomores). In the Texas Senate, 42% of the 31Senators have one session or less experience (8 freshmen, 5 sophomores). Thus, it is the jobof the Texas Public Power Association to familiarize these relatively new legislators withpublic power – the stability, success, and service provided municipally owned electricutilities (MOUs) across the state. That process is underway. We are letting legislators andtheir staff know that there are 72 MOUs serving over 4.1 million Texans (about 15% of thestate’s electric market). MOUs are “full service” electric utilities that own poles and wiresand often power plants. Local authorities set MOU rates and policies that are responsive tocommunity priorities. To date, MOUs have taken a “wait and see” approach to electricderegulation. Public power systems have a straightforward mission – to provide reliable andaffordable power, and to bring value to their communities. That value takes many forms,including financial support for local government and the promotion of economic develop-ment.

Two years ago, the Texas Legislature approved major legislation related to the electricutility industry - a measure known as the “PUC Sunset Bill”. During 2014, the interimleading up to the 2015 session, legislative committees examined key electric utility issues,but recommended monitoring instead of action.

The House Committee on Environmental Regulation held a two-day hearing in Septem-ber, 2014 regarding the EPA CO2 rule (which would reduce greenhouse gas emissions fromexisting power plants). The Committee heard testimony from multiple agency and industrywitnesses, including the two municipal systems that chose to testify: CPS Energy andTMPA. The committee’s recommendation to the 2015 Legislature was as follows: “TheLegislature should continue to monitor the progress of the proposed rule and alsocontinue an ongoing dialogue with agency, industry, and advocacy groups so that thestate may choose the best course of action if/when the (federal) Clean Power Plan rule isfinalized.”

The House State Affairs Committee held an interim hearing in 2014 hearing on resourceadequacy in ERCOT. Its recommendation: “Generation resource adequacy is vital toTexas…(and) it is critical that the state continue to utilize a diverse portfolio of powergeneration. While current electricity supplies appear to be sufficient for the next few years,regulators must persist in overseeing market structure… To increase transparency andbolster confidence, ERCOT should report annually to the PUCT and…legislative commit-tees (regarding) its load forecasting model.”

At the regulatory level, the Public Utility Commission of Texas made several recommen-dations for legislative action. Among them: “that municipally owned utilities must, likeother electric utilities in Texas, receive a Commission-approved CCN for the construction(siting and routing) of transmission facilities outside of their designated retail serviceterritory”.

TPPA will be monitoring these and other issues related to the electric utility industrywhich may come before the 2015 Texas Legislature. TPPA’s priority will, as always, be toadvocate continued local control for MOUs.

Best regards, Mark Zion

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February 2015/Page 3

CALENDAR

Research Company to Deliver Actionable Customer Intelligence

continued on pg. 9

To help municipal utilities, joint actionagencies and other public power organiza-tions meet the very specific needs ofutility customers, Hometown Connectionsand GreatBlue Research, Inc. arepartnering to provide market researchservices to members of the AmericanPublic Power Association (“APPA”), theorganizations announced recently.

The utility services subsidiary ofAPPA, Hometown Connections maintainsexpertise in the energy industry andmunicipal governance, offering services inthe areas of strategic planning and utilityevaluation, as well as customized board/staff consulting, facilitation and trainingservices.

GreatBlue Research is a full servicemarket research firm employing bothquantitative and qualitative researchmethodologies. GreatBlue Researchprovides solutions that impact organiza-tion, operational and marketing effective-

ness through a diverse set of researchmethodologies including telephone inter-views, digital surveys and focus groupsessions.

“As the Hometown Connectionsmanagement consulting suite has expandedand as public power’s market research needshave evolved, we see the value in closelyintegrating market research with ourstrategic planning, facilitation, organizationassessment and other consulting services,”said Tim Blodgett, President and CEO. “Weare honored to combine Hometown’s deepknowledge of public power utility manage-ment best practices with the research design,analysis, and reporting expertise ofGreatBlue Research. Together, operatingunder the Hometown Connections umbrella,our firms will offer a broad array of customersatisfaction and other research servicesdesigned to provide public power systemswith the information needed to best servetheir communities.”

“GreatBlue takes great pride in deliver-ing actionable data to municipal utilities,”said Michael Vigeant, GreatBlue ResearchCEO. “Many organizations collect informa-tion from their constituents yet struggle tomake meaningful business decisions, stiflinggrowth and approval numbers. We lookforward to collaborating with HometownConnections to help APPA members identifyand effectively support the needs of publicpower communities through reliable re-search.”

About Hometown Connections Interna-tional, LLC

Hometown Connections is the utilityservices subsidiary of the American PublicPower Association, offering public powerutilities guidance and access to qualityproducts/services from a trusted entity withpublic power’s best interests in mind.Hometown Connections personnel provideconsulting support in the areas of organiza-

ENGINEERING & OPERATIONS BUSINESS & FINANCECUSTOMER CONNECTIONS SYSTEM IMPROVEMENT

In t e g r a t e d S o l u t i o n s f o r P u b l i c P o w e r

For cost of service studies/rate design, CIS/billing/financials, workforce support,

energy risk management, and meter & operational data management,

choose public power’s leading consultants and software providers.

BUSINESS & FINANCE

partners

Debra Scarbo, TPPA + 512.472.5965 + www.hometownconnections.com

Page 4: LCRA Joins Historic NASA Mission to Whats Inside: Monitor ... · John Hofmann, LCRA executive vice president of Water, said: “This project encompasses two of our missions – flood

February 2015/Page 4

Contact Patty Cruz to learn more about how Leidos creates sustainable solutions for today’s utilities.512.569.8323 [email protected]

leidos.com/engineering

Utility Business Know-howInnovative EngineeringSmart Technology

continued on pg. 5

EPA Permits

Brownsville PlantA proposed 800 megawatt power

plant proposed jointly by BrownsvillePublic Utilities Board (BPUB) andTenaska Inc. has received a finalgreenhouse gas permit from the U.S.Environmental Protection Agency.

The $500 million TenaskaBrownsville Generating Station wouldbe built on 270 acres located severalmiles north of Brownsville. It isestimated the project would injectmore than $16 billion into the localeconomy during construction andthrough the project’s 35-yearlifespan, according to a studycommissioned by the BrownsvilleEconomic Development Council(BEDC). The BEDC expects the powerplant to help the region attract largeindustrial companies that requirelarge amounts of electricity. It isestimated that building the powerplant would create 600 to 700temporary jobs and sustain 23 full-time positions once the facility isoperational.

In issuing its “Prevention ofSignificant Deterioration” permit, theEPA said that the project “takesadvantage of our clean-burningnatural gas resources.” Also, theproject developers demonstratedtheir commitment to enhance stew-ardship of the nearby Palo AltoBattlefield National Historic Park, siteof the first battle in the U.S. –

Mexican war in 1846. The EPA permit referencesan agreement to spend more than $2.1 millionover a span of years to preserve and enhancethe park.

BPUB’s ownership interest entitles it to 200megawatts of capacity from the generatingstation. BPUB estimates that construction couldbegin as early as spring 2015.

Reliability Standard in ERCOTThe Public Utility Commission’s inquiry into

resource adequacy is now focused on a reviewof the reliability standard in the ERCOT region.So far, PUC staff has examined reliability stan-dards in other jurisdictions in the U.S. andEurope and held a workshop with stakeholderslast September.

In December, Commissioner Kenneth W.Anderson, Jr. issued a memorandum stating thatthe information gathered so far “is an excellentstarting point for analyzing the appropriatenessof ERCOT’s existing one-in-ten year loss of loadevent (0.1 LOLE) standard.” Anderson sug-gested that a draft set of questions for additionalstakeholder input shouldbe rewritten towards thisend. Anderson sug-gested that “we need toask ourselves toughquestions. How and whydid ERCOT pick itscurrent standard? Whatwas the underlyingrationale for the choice ofthe ERCOT standard?”Anderson stated that theCommission must be ableto explain how a particu-

lar standard is a useful, rational and costeffective way to measure reliability before itcan determine whether a change is war-ranted.

The project schedule currently callsfor issuing questions for stakeholder inputin February and a workshop presided overby Commissioners in March or April.

Renewables and DC TiesLast summer, the Public Utility

Commission opened a project to reviewtopics related to ERCOT transmission,including prospective system upgrades,ancillary services, the planning processrelated to renewable resources, import/exports on new large DC ties, and chal-lenges arising from the CompetitiveRenewable Energy Zones (CREZ). Inparticular, commissioners were interested inwhether certain systems costs associatedwith renewable generators, especially wind,should be assigned to those generators.

At NRG, we’re not just powering homes, businesses and schools, we’re also your neighbors and a proud part of this community. At the end of the day ... we’re all neighbors.

Contact Skip Zahn to learn more. 832.357.5734 | [email protected]

Community Power

NRG is a registered servicemark of NRG Energy, Inc. ©2014 NRG Energy, Inc. All rights reserved. PLA.2014.11.24

Page 5: LCRA Joins Historic NASA Mission to Whats Inside: Monitor ... · John Hofmann, LCRA executive vice president of Water, said: “This project encompasses two of our missions – flood

February 2015/Page 5

Regulatory Updatecontinued from pg. 4

The commission received comments ona number of questions and held a workshopin October to explore these issues, but hasnot proposed any rule changes. However,the project led the commission to developtwo legislative recommendations: (1) clarifycommission authority to review proposedtransmission projects within a CREZ, and (2)grant authority to review and approve anynew DC ties between ERCOT and neighbor-ing regions.

Smart Meter Opt-outLarger investor-owned transmission and

distribution utilities are required by thetariffs that established procedures and feesfor providing “non-standard” meteringservice to track and report the number ofcustomers opting out of advanced metering.The first set of these reports were filed inJanuary, showing a very low incidence ofcustomer opt-out: Oncor, 159 out of 3.2million customers; CenterPoint, 62 out of 2

million customers; AEP Texas CentralCompany, 97 out of 780,000 customers; andAEP Texas North Company, 33 out of 180,000customers.

SSO RulemakingIn November, the Public Utility Commis-

sion approved publication of a proposedrule on Subsynchronous oscillation (SSO) inthe ERCOT region. SSO is the exchange ofenergy between series-connected capacitorsand a generation resource at a naturalharmonic frequency lower than the normaloperating frequency that can cause damageto both generation and transmissionelements. The immediate concern involves adozen series-connected capacitor banksinstalled (but not yet energized) to improvepower flow and stability of transmissionlines serving Competitive Renewable EnergyZones (CREZ).

The proposed rule directs ERCOT todevelop standards for managing SSO in theregion. It allows transmission serviceproviders to recover the reasonable costsrelated to facility modifications to reduce therisk of SSO and also states that generators

are solely responsible for costs associatedwith modifying their facilities to addressthe risk. However, the commission re-quested comment on whether there mightbe limited circumstances in which specificelectric generating facilities should beprovided reimbursement for costs associ-ated with facility modification to addressSSO risk.

Reliability Standards

Workshop AnnouncedTexas RE will hold its annual Spring

Standards and Compliance Workshop onMay 13 and 14, 2015 in Austin, Texas.Agenda and registration details will beavailable in early March. The workshop willcover topics related to compliance withNERC Reliability Standards. Participantswill have the opportunity to hear from avariety of speakers, including Texas RESenior Management, Texas RE staff, andindustry stakeholders, on compliancetopics and other important issues. Detailedinformation will be available on Texas RE’swebsite: www.texasre.org.

CLEAR IMPACTNavigant’s energy experts

deliver clear, insightfulguidance and a

balanced view of the

industry to assist clients in

overcomingobstacles, maximizingstrengths, and creatinginnovative solutions.

Contact »Dan [email protected] [email protected]

www.navigant.com/energy

©2015 Navigant Consulting, Inc. All rights reserved. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services. See www.navigant.com/licensing for a complete listing of private investigator licenses.

At AEP Energy Partners, our brand stands for the qualities Texas

electricity customers find most important; customer service, quality,

and trust.

We work harder to be the company you choose for affordable, reliable

power to municipal utilities and electric cooperatives.

These are the core values that make us America’s Energy PartnerSM

Let us show you the difference.

Lanny Aldridge Brian Whitlatch

(P) 325-674-7257 (P) 614-583-7067

(E) [email protected] (E) [email protected]

INTEGRITY MATTERS

At AEP Energy Partners, our brand stands for the qualities Texas

electricity customers find most important; customer service, quality,

and trust.

We work harder to be the company you choose for affordable, reliable

power to municipal utilities and electric cooperatives.

These are the core values that make us America’s Energy PartnerSM

Let us us sh showow youy the ddiffeerence.

Lanny Aldridge Brian Whitlatch

(P)(P) 325-674-7257325 674 7257 (P)(P) 614-583-7067614 583 7067

(E) [email protected] (E) [email protected]

INTEGRITY MATTERS

Page 6: LCRA Joins Historic NASA Mission to Whats Inside: Monitor ... · John Hofmann, LCRA executive vice president of Water, said: “This project encompasses two of our missions – flood

February 2015/Page 6

Power Use in ERCOT Increased by 2.5

Percent in 2014 as compared to 2013 Data

Electric use in the Electric ReliabilityCouncil of Texas (ERCOT) region increasedby 2.5 percent in 2014 compared to 2013,while peak demand during the hottest part ofsummer decreased by a little more than 1percent, ERCOT said Jan. 22.

ERCOT detailed the news, along withother information about power use, fuel mixand demand, in its 2014 demand and energyreport released this month.

Energy use over the course of the yearin the ERCOT region increased from331,624,102 megawatt-hours (MWh) in 2013to 340,033,353 MWh in 2014, due mainly toincreases seen during the extremely coldwinter months early in the year.

At 66,454 megawatts, peak demand wasdown by about 1.2 percent from 2013 andlower than the all-time record of 68,305megawatts set on Aug. 3, 2011, during thehottest summer on record.

Natural gas, at 41.1 percent, continuedto be the prevalent fuel used to generate

electricity, increasing from 40.5 percent in2013. Coal use in the overall energy mixdecreased from 37.2 percent in 2013 to 36percent in 2014.

Wind power generation continuedto increase — up to 10.6 percent in 2014,from 9.9 percent in 2013. With prolongeddrought continuing to affect storedwater supplies in much of the state,hydroelectric power remained at only 0.1percent, the same as 2013, ERCOT said.

ERCOT manages the flow of electricpower to nearly 24 million Texas custom-ers, representing about 90 percent of thestate’s electric load. As the independentsystem operator for the region, ERCOTschedules power on an electric grid thatconnects more than 43,000 miles oftransmission lines and 550 generationunits.

Mark your Calendars

TPPAM&CS Conference

March 2-4, 2015

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Page 7: LCRA Joins Historic NASA Mission to Whats Inside: Monitor ... · John Hofmann, LCRA executive vice president of Water, said: “This project encompasses two of our missions – flood

February 2015/Page 7

Sue Kelly is Named to CFTC CommitteeThe president and CEO of the Ameri-

can Public Power Association, Sue Kelly,was confirmed by the Commodity FuturesTrading Commission (CFTC) on Jan. 26 toserve as an associate member of thecommission’s Energy and EnvironmentalCommodities Advisory Committee(EEMAC).

The Energy and EnvironmentalMarkets Advisory Committee (formerly theEnergy Markets Advisory Committee) wascreated to advise the CFTC on importantdevelopments in energy and environmentalfutures markets that could raise newregulatory issues. It is charged with makingsure the commission responds appropri-ately to ensure market integrity andcompetition, and to protect consumers.

The committee can: conduct publicmeetings; submit reports and recommenda-tions to the CFTC; and otherwise serve as avehicle for discussion and communication“on matters of concern to exchanges,

trading firms, end users, energy producer,and regulators regarding energy andenvironmental markets and their regulationby the Commission.”

The committee’s charter notes that thecommission is charged with appointingmembers to the EEMAC that represent awide diversity of opinions and a broadspectrum of interests, “including hedgersand consumers.”

Under its charter, the committee has a“sponsor” – either the CFTC’s chairman, amember of the commission, or a persondesignated by the commission – whoapproves meeting agendas, attends allEEMAC meetings, and otherwise makessure the CFTC carries out its responsibili-ties regarding the committee.

“I am very optimistic the EEMAC willprovide an open forum to discuss many ofthe important issues related to the energyand environmental markets,” said CFTCCommissioner Christopher Giancarlo, the

current sponsor of the committee.The committee is expected to meet

several times a year to discuss CFTC over-sight of the energy and environmentalcommodities market.

ENERGY. FOCUS. COMMITMENT.“Proud to provide quality engineering and electric utility consulting services to our

TPPA member Clients.”

191 Menger Springs Pkwy - Boerne, TX | 1509 Emerald Pkwy, Ste. 103 - College Station, TX830.249.3887 | [email protected] | www.se-texas.com

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February 2015/Page 8

Electric Programs Would Benefit Under DOE 2016 BudgetPresident Obama would increase

Department of Energy funding in fiscal year2016 by $2.5 billion (9.2 percent) under abudget plan submitted to Congress Feb. 2.

The increase would be split roughlyevenly between defense and non-defenseenergy programs with the lion’s share of non-defense funding increases proposed forenergy efficiency and renewable energy(EERE) and the Office of Electricity Deliveryand Energy Reliability.

DOE’s budget is relatively unique in thepresident’s budget. Overall non-defensediscretionary spending will remain levelcompared to fiscal year 2015 funding levelsand many other departments will see cuts.

Programs included in the president’sproposed budget of potential direct impact topublic power utilities include an increase infunding for the Office of Electricity Deliveryand Energy Reliability (OE) from $146 millionto $270 million, an 84 percent increase.

The largest dollar increases would go tosmart grid research and development, up

$14.5 million to $30 million, and energystorage research and development, up $9million to $21 million. The largest percent-age increase would go to infrastructuresecurity and energy restoration, whichwould grow from $6 million to $14 million(a 133 percent increase) under thepresident’s proposed budget.

The budget also proposes that a newtransformer resilience and advancedcomponent program be funded at $10million. The program is intended toadvance the understanding of impacts ofgeomagnetic disturbances and electro-magnetic pulses on large power trans-formers and grid components.

The budget also proposes thecreation of a new state energy reliabilityand assurance grants program. To befunded at $63 million, the program wouldprovide grants to states, localities, andtribal governments in support of electric-ity transmission, storage, and distributionreliability and energy assurance.

The largest dollar increase in the pro-posed DOE budget would go to EERE funding,which would increase by $809 million (42.3percent). About half ($390 million) of thatincrease would go to fund energy efficiencyR&D and deployment of two “Clean EnergyManufacturing Innovation Institutes.” Therequest would also support a 31 percentincrease to the weatherization and intergov-ernmental program, with the intention ofprovide access to home weatherization to33,000 low-income households in 2016.

Funding for fossil energy research withinDOE will remain flat under the budget, withfunding increases for carbon capture, carbonstorage, and fossil energy environmentalrestoration research being offset by cuts toadvanced energy systems research andNational Energy Technology Laboratory coalresearch.

The President’s budget must be approvedby Congress through the annual appropria-tions process.

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Page 9: LCRA Joins Historic NASA Mission to Whats Inside: Monitor ... · John Hofmann, LCRA executive vice president of Water, said: “This project encompasses two of our missions – flood

February 2015/Page 9

Mark your Calendars

TPPAM&CS Conference

March 2-4, 2015

Westin Riverwalk

San Antonio, TX

HCI Reportcontinued from pg. 3 Mark your

Calendars

TPPAAnnual Meeting

July 20-22, 2015

Westin Riverwalk

San Antonio, TX

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February 2015/Page 10

TTPPA Marketing & Customer Service Conference March 2-4, 2015 Westin Riverwalk San Antonio, Texas

MONDAY, MARCH 2, 2015

1:00pm – 5:00pm Registration (Ballroom Foyer) 2:00pm – 5:00pm M&CS Committee Meeting (Navarro B)

� Customer Assistance Programs – Ronnie Mendoza, Austin Energy � Austin Energy’s Social Media Tracking – Shannon Wisner, Austin

Energy � Business Meeting

5:00pm – 6:30pm Welcome Reception (Hidalgo) – Sponsored by Georgetown Utility Systems and Leidos

TUESDAY, MARCH 3, 2015

8:00am – 5:30pm Registration (Ballroom Foyer) 8:30am – 11:30am General Session (Navarro A)

8:30am – 8:45am Welcome – M&CS Committee Chair, Vicki Reim, Bryan Texas Utilities and TPPA President Phil Williams, Denton

8:45am – 9:30am TPPA/Texas Update – Mark Zion, TPPA 9:30am - 9:45am Break (Ballroom Foyer) – Sponsored by Brownsville PUB 9:45am – 10:30am Update on Scams in Texas – Valeria Sartorio, Office of the Texas Attorney

General 10:30am – 11:30am Handshakes, Headshakes, Bowing, or Hugging: Understanding Global

Business Protocol – Jan Hargrave, Hargrave & Associates 11:30am – 1:00pm Lunch on your own

1:00pm - 2:45pm Concurrent Sessions

Time

Track A (Villa) Moderator: Gretchen Reuwer, NBU

Track B (Zapata) Moderator: Machelle Hazelett, KPUB

1:00pm – 1:50pm Panel on Utility Scams – Lisa Lewis, CPS Energy, Catherine Poppe, FEC and Leticia Zavala, Georgetown

Stakeholder Engagement and Communication Plans – Patty Cruz, Leidos and Rebecca Shiflea, Leidos

1:55pm - 2:45pm PCI Compliance & Red Flag Rules – James Caperton, OnLine Utility Exchange

Are Kiosks in Your Future? – Vicki Reim, Bryan Texas Utilities and George Graves, AllKiosk

2:45pm - 3:05pm Break (Ballroom Foyer) – Sponsored by Garland Power & Light

3:05pm - 4:50pm Concurrent Sessions

Time

Track A (Villa) Moderator: Ben Ornelas, Austin Energy

Track B (Zapata) Moderator: Patty Cruz, Leidos

3:05pm - 3:55pm Taking Customer Assistance to the Next Level – Ronnie Mendoza, Austin Energy

The Internet of Everything & You (and your utility) – Cody Graves, Automated Energy

4:00pm - 4:50pm Listening, Engaging, and Responding to Customers in a Wired World –Carolyn Shellman, CPS Energy and Paul Flaningan, CPS Energy

Powering the Lines of Communications – Matt Rose, LP&L and Brooke Goggans, Hahn Public Communications

5:00pm – 6:30pm Reception (Hidalgo) – Sponsored by Automated Energy and Bryan Texas Utilities

WEDNESDAY, MARCH 4, 2015

7:00am – 11:30am Registration (Ballroom Foyer) 7:30am – 8:30am Breakfast & Discussion (Navarro B) – Sponsored by Boerne and KPUB 8:30am –11:30am General Session (Navarro A) 8:30am – 8:35am Welcome – M&CS Vice Chair, Dana Box, Lubbock Power & Light 8:35am – 9:35am What Utilities Can Learn from Football’s Winning Plans and Plays – Jennifer

White, Leidos, Lisa Vedder, Leidos, Rebecca Shiflea, Leidos and Patty Cruz, Leidos

9:35am – 9:50am Break (Ballroom Foyer) – Sponsored by Austin Energy 9:50am – 11:15am Top 10 Life Hacks: Tools for the Next Level Living – Erick Rheam, Automated

Energy 11:15am – 11:30am Wrap-up & Drawing for Door Prizes – Sponsored by Edisto Resources,

Floresville Electric Power & Light, Hometown Connections, Leidos and Seguin

Page 11: LCRA Joins Historic NASA Mission to Whats Inside: Monitor ... · John Hofmann, LCRA executive vice president of Water, said: “This project encompasses two of our missions – flood

February 2015/Page 11

2015 TPPA Marketing & Customer Service Conference

Westin Riverwalk San Antonio, Texas

March 2-4, 2015

REGISTRATION FORM

Please register by January 26, 2015 to receive early registration discounts. After January 26th, you must pay the regular registration amount unless your payment is sent in with registration form. The 2015 TPPA M&CS Conference will be held at the Westin Riverwalk is located at 420 West Market Street, San Antonio, TX 78205. Copy this form as necessary.

Early Registration (before Jan. 26th) Regular Registration (after Jan. 26th) TPPA Members $325 $425 Non-Members $450 $650 Spouse $15 $15 Fees: (see above table) _____ Spouse/Guest _____ Total: _____ Name___________________________________________________________________ Title____________________________________________________________________ Utility/Organization_______________________________________________________ Street Address/P.O. Box____________________________________________________ City/State/Zip____________________________________________________________ Phone_________________EMAIL___________________________________________ Name of Spouse/Guest_____________________________________________________ Hotel reservations should be made directly with the Westin Riverwalk by calling (210)224-6500. The hotel is located at 420 West Market Street, San Antonio, TX 78205. To receive special rates of $196/single or double by calling before January 26, 2015 mentioning Texas Public Power Association, TPPA or the TPPA Marketing & Customer Service Conference when registering. Hotel check-in is at 3:00 p.m. To help us with planning and accommodations, please indicate which events you (and your spouse) plan to attend during the meeting:

Mon., Mar. 2 _____ Committee Meetings (1:00 p.m. – 5:00 p.m.) Please check the meeting below:

_____ Reception (5:00 p.m. - 6:00 p.m.) Tues., Mar. 3 _____ General Session (8 a.m. – 11:30 a.m.)

_____ Concurrent Sessions (1:00 p.m. – 4:50 p.m.) _____ Reception (5 p.m. - 6:30 p.m.)

Wed., Mar. 4 _____ Breakfast (7:30 a.m. – 8:30 a.m.) _____ General Session (8:30 a.m. – 11:45 a.m.)

NOTE Regarding (Cancellations/No-Shows/Credits/Substitutions): Participants who cancel in writing on or before February 16, 2015 will receive a credit to another TPPA meeting. Credit must be used within one year of the date issued. Participants who cancel after February 16, 2015 will not receive a credit, but attendee substitutions will be allowed for the 2015 TPPA M&CS Conference. Participants and no-shows who did not cancel on or before February 16, 2015 are responsible for the full registration fee and are not entitled to a credit for their registration fee. Cancellations must be made in writing and mailed, faxed or emailed to: Josie Caballero, Office Manager, TPPA, 701 Brazos, Suite 1005, Austin, TX 78701, fax: 512-472-5967, email: [email protected]

Confirmations and Invoices: Please send my confirmation and invoice via: _____ Mail _____ E-Mail to: ________________________________________________

TPPA DOES NOT ACCEPT CREDIT CARDS Make check(s) payable to TPPA and mail to the address below TPPA M&CS Conference _____ Check Enclosed Texas Public Power Association _____ Please Bill 701 Brazos, Suite 1005 Austin, Texas 78701 or FAX to (512)472-5967

Check Committee Meeting:

____ Marketing & Customer Service Committee

Page 12: LCRA Joins Historic NASA Mission to Whats Inside: Monitor ... · John Hofmann, LCRA executive vice president of Water, said: “This project encompasses two of our missions – flood

February 2015/Page 12

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