HomeMy WebLinkAboutAgenda Report - January 17, 2001 E-12CITY OF LORI COUNCIL COMMUNICATION
AGENDATITLE: Adopt resolution authorizing the City Manager to sign a consulting services
agreement for an Electric Utility Cost of Service Study with EES Consulting, Inc. (not
to exceed $32,000)
MEETING DATE: January 17, 2001
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council authorize the City Manager to sign a Consulting Service
Agreement for an Electric Utility Cost of Service Study (COS) with EES
Consulting Inc.
BACKGROUND INFORMATION: A COS allocates costs for a period of time, usually one year to those who use
the service. A COS is an analytical tool which defines separates and
unbundles the City of Lodi Electric Utility Department's total revenues,
expenses and capital facilities among the various customer classes served for purposes of determining class revenue
requirements. This tool can be used to track competitiveness and to make strategic decisions and this tool is generally
accepted to determine if the class structures are:
1. fair and equitable; 2. avoiding interclass subsidies;
3. tracking whether revenues cover cost; and 4. providing an accurate price signal
The City of Lodi Electric Utility has not had a COS prepared since 1993. Since that time both the City of Lodi and the
industry has seen significant changes. It is common in the electric utility industry to perform this type of study either
annually or semi-annually. In these volatile times it is important for the City of Lodi to have a tool to determine how
competitive and reasonable the various revenue classes are to the industry and themselves, so that strategic and
fairness decisions may be made. This tool will provide the City of Lodi with a current study of this situation and provide
a computer model for future reviews. Whether or not the COS study is used as the basis for setting rates, it is a very
useful device for analyzing the costs incurred by the Electric Utility Department.
The Electric Utility Department sent out Requests for Qualification to five firms who have a background of providing
the services required to provide a cost of service analysis and computer model. Three of the five firms responded.
The Electric Utility Department then proceeded to interview the potential firms for experience, cost and availability.
After this process, it was determined that EES Consulting, Inc. best met all the criteria and was chosen to do the
study.
It is requested that a consultant be used for this study rather than staff. It is anticipated that this project will take 6-8
weeks for the consultant to complete the project utilizing three people. There is only one City staff member that has
the background and expertise to complete this project. If this staff member was utilized it would take approximately 3
to 4 months to complete and other critical work would not be completed. The timing of this study is critical even more
so than usual, due to the extreme volatility of the electric industry in recent months.
A Cost of Service Study was anticipated and included as part of the current fiscal year budget.
FUNDING: 160603
APPROVED:
H. Dixon Flynn - City Manager
FUNDING: 160603
Funding Approval:
Vicky M Athie, Finance Director
Alan N. Vallow, Electric Utility Director
PREPARED BY: Jim Doyle, Manager, Rates and Resources
ANV/JD/Ist
APPROVED:
0"-'a -x/.� 416-
H. Dixon Flynn - Ci Manager
CONSULTING SERVICES AGREEMENT
EES CONSULTING, INC.
Billing Address
P.O. Box 52810
Bellevue, WA 98015-2810
(425) 452-9200
Work Order #
This Consulting Services Agreement is made between EES Consulting, Inc., (hereinafter
"EES CONSULTING") and City of Lodi, Electric Utility, whose place of business is located at 1331 S. Ham
Lane, Lodi, CA 95242 (hereinafter "CLIENT') for a Project generally described as a Cost of Service Study.
I. SCOPE AND QUALITY OF CONSULTING SERVICES
EES CONSULTING will provide the services described in Exhibit A of this Agreement.
EES CONSULTING shall render its services in accordance with generally accepted professional practices.
EES CONSULTING shall, to the best of its knowledge and belief, comply with applicable laws, ordinances,
codes, rules, regulations, permits and other published requirements in effect on the date this Agreement is
signed.
II. COMPENSATION AND REIMBURSEMENT OF COSTS
Services provided and costs incurred (with the exception of travel, food and lodging expenses) by EES
CONSULTING under this Agreement will be compensated according to the provisions in Exhibit B of this
agreement.
EES CONSULTING will submit monthly invoices to CLIENT for work completed and reasonable expenses
incurred, to the date of the invoice. All invoices will be itemized to reflect the employees performing the
requested tasks, the billing rate for each employee and the hours worked.
CLIENT shall pay all out-of-pocket travel, food, lodging and incidental expenses incurred by EES
CONSULTING that are reasonably associated with the provision of services under this Agreement. These
expenses will be compensated for by the CLIENT at their cost to EES CONSULTING. EES CONSULTING
will keep receipts for such expenses in compliance with IRS requirements. These receipts will be available to
CLIENT for inspection upon request.
All invoices sent by EES CONSULTING to CLIENT shall be paid within thirty (30) days of receipt. All billings
that remain unpaid after thirty (30) days shall bear interest until paid at the rate of twelve percent (12%) per
annum. If CLIENT fails to pay any invoice within thirty (30) days and such failure continues ten (10) days
after EES CONSULTING gives CLIENT notice of such failure, EES CONSULTING shall have the right to
terminate this Agreement immediately without liability to CLIENT. The right to terminate under the terms of
this section shall be in addition to all other legal, equitable, or contractual remedies available to EES
CONSULTING.
III. TERMS & CONDITIONS OF CONSULTING SERVICES AGREEMENT
1. Timing of Work. EES CONSULTING shall commence work on or about
2. Access to Facilities and Property. The CLIENT will make its facilities accessible to EES
CONSULTING as required for EES CONSULTING's performance of its services and will provide labor and
safety equipment as required by EES CONSULTING for such access. CLIENT will be responsible for all acts
of CLIENTs agents or personnel.
3. Relationship of Parties, No Third -Party Beneficiaries. EES CONSULTING is an independent
contractor under this Agreement. This Agreement gives no rights or benefits to anyone not named as a party
to this Agreement, and there are no third party beneficiaries to this Agreement.
4. Subcontracts. EES CONSULTING may use the services of independent contractors to perform a
portion of its obligations under this Agreement with prior approval by CLIENT. Subcontractors will be billed to
CLIENT at their cost to EES CONSULTING.
5. Insurance.
a. Insurance of EES CONSULTING. EES CONSULTING will maintain throughout the performance of
this Agreement the following types and amounts of insurance:
i. Worker's Compensation and Employer's Liability Insurance as required by applicable state or
federal law.
ii. Comprehensive Vehicle Liability Insurance covering personal injury and property damage claims
arising from the use of motor vehicles with combined single limits of $1,000,000.
iii. Commercial General Liability Insurance covering claims for personal injury and property damage
with combined single limits of $1,000,000.
iv. Professional Liability (Errors and Omissions, on a claims -made basis) Insurance with limits of
$1,000,000.
b. Interpretation. Notwithstanding any other provision(s) in this Agreement, nothing shall be construed
or enforced so as to void, negate or adversely affect any otherwise applicable insurance held by any party
to this Agreement.
6. Mutual Indemnification. EES CONSULTING agrees to indemnify and hold harmless CLIENT and its
elected and appointed council, boards commissions, officers and employees from and against any and all
loss, cost, damage, or expense of any kind and nature (including, without limitation, court costs, expenses,
and reasonable attorneys' fees) arising out of injury to persons or damage to property (including, without
limitation, property of CLIENT, EES CONSULTING, and their respective employees, agents, licensees, and
representatives) in any manner caused by the negligent acts or omissions of EES CONSULTING or others
with homm EES CONSULTING contracts VEES's Agents") in the performance of its work pursuant to or in
connection with this Agreement to the extent of EES CONSULTING's or EES's Agents proportionate
negligence, if any.
CLIENT agrees to indemnify and hold harmless EES CONSULTING and its employees from and against any
and all loss, cost, damage, or expense of any kind and nature (including without limitation, court costs,
expenses and reasonable attorneys' fees) arising out of injury to person(s) or damage to property (including,
without limitation, property of CLIENT, EES CONSULTING, and their respective employees, agents,
licensees and representatives) in any manner caused by the negligent acts or omissions of CLIENT or
other(s) with whom CLIENT contracts ("CLIENTs agents") to perform work pursuant to or in connection with
this Agreement, to the extent of CLIENT's or CLIENTs agents proportionate negligence, if any.
7. Limitation of Liability. The parties liability hereunder shall be limited as follows: (a) for insured
liabilities arising out of either parties negligence, to the amount of insurance then available to fund any
settlement, award, or verdict; (b) for uninsured liabilities, to 50 percent (50%) of the fee earned by EES
CONSULTING under this Agreement. In no event shall either parties liabilities exceed the aforementioned
limits of liability.
Each party's liability for damages provided under this Agreement shall be limited to liability for direct damages
and shall in no event include liability for the other party's or their respective agents or employees remote,
punitive, consequential or indirect damages for lost profits, loss of use, lost opportunity, financing, interest
expense, business interruption or productivity or production loss, regardless of the breach of contract, breach
of warranty, tort (including negligence), strict liability, or otherwise.
8. Delays. EES CONSULTING will not be liable to CLIENT for delays in performance under this
Agreement or for the direct or indirect cost resulting from delays that may result from labor strikes, riots, war,
acts of governmental authorities, extraordinary weather conditions, natural catastrophes or other events or
occurrences beyond control of EES CONSULTING.
In the event CLIENT suspends or interrupts the services of EES CONSULTING for the convenience of
CLIENT, an equitable adjustment in the project's schedule and in compensation to EES CONSULTING will
be made.
9. Data, Documents and Records. EES CONSULTING shall be entitled to rely upon the accuracy and
completeness of all data furnished by CLIENT to EES CONSULTING that is used by EES CONSULTING in
the providing of services under this Agreement. EES CONSULTING has the right to retain and use all data
furnished to it and all plans, designs, specifications and other work product created by EES CONSULTING in
providing services hereunder.
10. Ownership and Use of Documents and Electronic Media Deliverables. All completed reports and
other data or documents provided or prepared by EES CONSULTING in accordance with this Agreement are
the property of CLIENT, and may be used by CLIENT. Ownership shall transfer to CLIENT only if EES
CONSULTING has been paid in full for services under the terms of this Agreement. CLIENT shall release,
defend, indemnify and hold harmless EES CONSULTING from all claims, costs, expenses, damage, or
liability arising out of or resulting from the use or modification of any reports, data, documents, drawings,
specifications, or other work product prepared by EES CONSULTING except use by CLIENT on those
portions of the project for which such items were prepared.
11. Resolution of Disputes, Attomeys' Fees. The law of the State of California shall govern the
interpretation of and the resolution of disputes under this Agreement. If any claim, at law or otherwise, is
made by either party to this Agreement, the prevailing party shall be entitled to its costs and reasonable
attomeys' fees.
12. Termination of Agreement. Either EES CONSULTING or CLIENT may terminate this Agreement upon
thirty (30) days written notice to the other sent to the addresses listed herein.
In the event CLIENT terminates this agreement, CLIENT specifically agrees to pay EES CONSULTING for
all services rendered through the termination date.
13. Integration, Modification and Severability. This Agreement, including all Addenda, shall be binding
upon and inure to the benefit of the parties and their respective successors and assigns. This is the entire
agreement between the parties, there are no other agreements or representations not set forth herein, and
this Agreement incorporates and supersedes all prior negotiations, agreements, and representations. This
Agreement may not be modified except in writing signed by an authorized representative of each party.
If any provision of this Agreement is deemed by law to be void, invalid or inoperative for any reason, or any
phrase or clause within such provision is deemed by law to be void, invalid or inoperative, that phrase, clause
or provision shall be deemed modified to the extent necessary to make it valid and operative, or, if it cannot
be so modified, then such phrase, clause or provision shall be deemed severed from this Agreement with the
remaining phrases, clauses and provisions continuing in full force and effect as if the Agreement had been
signed with the void, invalid or inoperative portions so modified or eliminated. In addition, a phrase, clause or
provision shall be substituted which is consistent with the intent of this Agreement and the severed phrase,
clause or provision.
14. Incorporated Documents. The following exhibits and attachments are incorporated in this agreement
as if fully set forth herein:
15. Notices. All notices, requests, demands, and other communications hereunder shall be deemed given
only if in writing signed by an authorized representative of the sender and delivered by facsimile (with a hard
copy mailed), or, when sent by a courier or express service guaranteeing overnight delivery to the receiving
party.
Notices to EES CONSULTING shall be delivered to: Notices to CLIENT shall be delivered to:
EES CONSULTING, INC. CITY OF LODI
P.O. Box 52810 P.O. Box 3006
Bellevue, Washington 98015-2810 Lodi, California 95241-1910
ATTN: Gary S. Saleba ATTN: Alan N. Vallow
Facsimile: 425-452-9299 Facsimile: 209-339-0851
16. Headings, Assignment and Waiver. The headings in this Agreement are inserted for convenience
only and shall not constitute a part hereof. Neither party to this Agreement shall assign its duties and
obligations hereunder without the prior written consent of the other party. A waiver by any party of any
provision or a breach of this Agreement must be provided in writing and shall not be construed as a waiver
of any other provision or any succeeding breach of the same or any other provisions herein.
17. Execution of Agreement. The parties agree that the language in this Agreement pertaining to
Indemnification, Limitations of Liability and Insurance are clear and unambiguous and were mutually
negotiated by the parties.
Title:
Date:
EES CONSULTING, INC. CITY OF LODI
By:
Title: CITY MANAGER
Date:
APPROVED AS TO FORM:
By: W.&W or.
Randall A. Hays, Ci Attorney
ATTEST:
By:
Susan Blackston, City Clerk
Scope of Services for an Electric Rate Study
EES Consulting is pleased to offer a detailed description of services in response to the City of
Lodi Electric Utility's (City) request for an unbundled cost of service study and associated
computer model. EES Consulting has vast experience in electric rate studies, and has completed
over 25 unbundled rate studies during the past three years. Based on our experience we have
prepared a scope of services to meet the requested items for the City.
In order to accomplish this project successfully, it is necessary to develop a detailed scope of
services at the beginning. This helps clarify both the needs of the utility and the approach to be
used by EES Consulting to ensure that the client receives a quality product. The proposed scope
of work is based on the request for proposal from the City and our experience providing cost of
service studies to other utilities. However, EES Consulting is flexible in its approach and can
modify the scope of work as needed.
The primary steps in the cost of service process include:
■ Obtain policy direction and detailed data
■ Develop revenue requirements for the City
■ Allocate costs by performing a cost of service study
■ Determine unbundled costs and rates
Overview and Policy Direction
To refine the scope of services and to discuss the relevant policy direction from the City, an initial
project meeting will be held with the City's staff. The initial project meeting may be accomplished
by conference call or may be held at the City's offices. This meeting will assist EES Consulting in
moving forward with the study by identifying and resolving key issues, discussing the goals and
objectives of the City, and developing a process to obtain the information necessary to complete
the study. To prepare for this process, a list of requested data is listed below.
■ Accounting Information
• O&M by function (split between labor and other, if possible)
• Fixed asset ledger detail
Functionalized rate base
Primary -secondary split
Dedicated facilities
• Debt service obligations
■ Other Information
• Most recent and forecast budget
Include recent and forecast rate and miscellaneous revenues
gA Include recent and forecast of non -power supply costs through 2004
• Load and customer forecast through 2004
cA Demand and energy sold, by month, by rate schedule for recent calendar year (and
forecast through 2004, if available)
OA Estimated monthly load factors for non -demand metered customers
• Information on special (power sales or transmission) contracts, if any
• Most recent year's wholesale power invoices and billing data
• Current rate schedules
• Estimated line losses on primary and secondary distribution systems (delineated by
customer group, if possible)
There are a number of data requirement issues for the City of Lodi. It is anticipated that there will
be a need for an audit of the financial information, particularly plant and O&M data given that the
current accounts are not in a FERC style. We would anticipate working with those familiar with
the current accounting system and developing a spreadsheet that would translate their account
system into an unbundled FERC system.
The other area that will require work in the data requirement area is load and customer
information. Currently, the electric system has implemented an Orecom billing system. At this
point in time, it is not clear whether the reports needed for the study will be sufficient. One
option that has been discussed that is separate and outside of the regular scope of service would
be the need to develop specialized reports within Orecom through an EES Consulting
subconsultant. It is anticipated that if this is necessary, a budget for this task could be provided.
As previously discussed, EES Consulting has access to a number of subconsultants familiar with
the Orecom product.
There are several critical policies that also need to be established at the beginning of the study.
Two key issues are the selection of a test period and a method of accumulating costs for the
analysis. The test period refers to the year(s) used as the basis for both the revenue requirements
and consumption data. The test period should reflect the costs during the time the rates will be in
place. Typically we would suggest using a projected or future test period for rate setting,
particularly given changing power supply sources and costs. A four-year test period beginning
with fiscal year 2001 will be utilized in the study.
The basis or method of accumulating costs as well as the structure of the cost analysis can reflect
either a cash or utility basis of accounting. Generally, a municipal utility or a public utility district
will use a cash basis approach to determine its revenue requirement. Under the cash basis
approach, a utility includes operation and maintenance expenses, taxes, debt service and capital
improvements funded from rates. Cooperatives and investor-owned utilities generally use the
utility basis approach. Under such an approach, the utility includes operation and maintenance
expenses and taxes, and substitutes depreciation and return on rate base (or margin) for debt
service and capital improvements. For this study a cash basis will be utilized.
At the initial project meeting, the City's cost of service goals and objectives as well as the City's
background and current operation will also be discussed. Goals and objectives are critical in
setting up the cost of service study to provide the necessary information to meet the objectives of
the City. A background and an understanding of such issues as power supply sources and
contracts, transmission system and interconnections, customer base, and strategic direction of the
utility will also be helpful in establishing both the revenue requirements and cost allocation
foundation. Finally, detailed information will be requested prior to the initial project meeting so
that a clear understanding of the data to be used in the model can be reached.
Development of Revenue Requirements
The first step in the rate study process is to develop the revenue requirement for the City. The
revenue requirement typically includes power supply and transmission costs, other operating and
maintenance expenses, taxes and transfer payments, debt service and capital improvements
financed with cash or rate revenues. EES Consulting will compare the revenues from the various
sources of funds available to the City with the forecasted revenue requirements for the suggested
test period. From this analysis, a determination can be made as to the overall level of adjustment
required from rates (if any) for the test period and its affects on cash flow over the longer term.
EES Consulting will use the City's standard accounts in developing the revenue requirements
projection. Examination of reserve levels, debt service coverage ratios and times interest earned
ratios are included as part of the revenue requirements task. The City's revenue requirement will
need to be placed into a FERC account format to facilitate cost of service analysis. The City's
staff will be relied upon in this effort with the understanding that the conclusions established from
the cost of service analysis will be influenced by these initial determinations.
In developing the revenue requirements, power supply, transmission, distribution, metering,
customer billing, A&G, and ancillary service costs will be separately identified and allocated to
customers at a detailed level for each month. Power supply costs are generally a significant
portion of a utility's total revenue requirement and require more complex calculations than other
types of costs. This is particularly true given the changing nature of wholesale power supplies.
However, in a competitive utility marketplace, all services and associated costs need to be
identified and evaluated to accurately determine their relative marketability. Therefore, attention
will also be focused on non -power supply related costs within the analysis.
Cost of Service Study
A cost of service study is designed to provide an equitable allocation of the revenue requirement
to the various customer classes for the City. EES Consulting will use generally accepted cost
allocation methods in the City's cost of service study.
To ensure proper results when unbundling the City's costs, EES Consulting will use a model that
unbundles costs throughout the process. This particular approach to the analysis allows the results
to distinctly identify costs by individual function. The approach easily permits those costs to be
rebundled for comparison with exiting rate structures. The results of the modeling will allow
development of either an unbundled or bundled rate depending upon the preferred structure for
particular services.
There are three primary steps in a cost of service study, including:
■ Functionalization
■ Classification
■ Allocation
Functionalization of costs refers to the arrangement of plant investment and expense data into its
various functions; typically power supply, transmission and distribution. Proper functionalization
is critical to unbundling costs and rates. FERC accounting facilitates much of this process since it
aligns its accounts along functional categories. Given the City's current accounting records, the
proposed formatting along FERC accounting standards will facilitate this portion of the analysis.
Classification involves determining the driver of the cost, specifically whether each individual cost
or account item was incurred to meet a consumer's demand, energy or customer related need. A
key concept in this process is the "cost causation" nature of each expense incurred by the utility.
EES Consulting will begin this process by developing classifications based on generally accepted
methodologies outlined by the National Association of Regulatory Utility Commissioners
(NARUC).
Allocation of costs to the City's customer classes is the final step in the cost of service study. For
each classification category, costs are distributed among customer classes using corresponding
allocation factors. For example, energy-related costs are allocated on the basis of the energy used
by each customer class. Key to developing allocation factors is historical load data and estimates
of peak demands per customer class. Voltage level by class allocation can and will be
incorporated where the data permits. Also, seasonal and time of use allocation of cost can and will
be made if the data incorporates this level of detail.
EES Consulting requires monthly load data by customer class of service for the cost of service
study, and uses City -specific load data when possible. Because not all customer classes are
demand metered, certain portions of the load data must be determined using estimates of load
factors and coincidence factors. Generally, we use load research data from nearby utilities along
with experience and utility knowledge of customers to estimate the necessary data. To the extent
that service voltage distinctions will be made, this usage data will also be needed for the
appropriate customer classes. The sum of the estimated class loads is then compared with the
total system load to allow for reconciliation and refinement of the inputs used.
Deliverables
Prior to finalizing the analysis and drafting a report, EES Consulting will distribute initial results
of the cost of service study to the City for review at a workshop session. This is useful in
confirming information and pointing out any areas that need additional discussion and policy
direction before finalization.
A draft report with the results of the cost of service study will be provided for the City to review
after the cost of service study is finalized. Once the City reviews the draft report, EES Consulting
will incorporate any comments or suggestions into a final report. EES Consulting will provide 10
copies of the final report to the City.
This study will be developed with EES Consulting's unbundled cost of service spreadsheet model,
customized to meet the needs of the City. At the conclusion of this study, EES Consulting will
provide to the City a copy of the model and associated documentation developed as a part of this
project. If desired, EES Consulting staff can provide training on the City's model. This is not,
however, included in the proposed budget.
EES Consulting has planned and budgeted for two meetings with the utility and one with the City
Council to present the results and recommendations of the study. One public hearing will be
included and there will be a minimum of two on-site or conference call project status reports.
EES Consulting will be available to attend additional public meetings or hearings and additional
status reports or presentations to be billed on a time and expense basis.
Project Management
Boris Prokop, Senior Vice President, will be overall project manager for the cost of service study.
Joe McGrath will serve as the day-to-day project manager. In addition, other staff will be
available to work on the project including Jane Lindsey and Steve Andersen. Navigant Consulting
will assist in the project by providing review and data collection assistance where necessary.
Time Schedule
EES Consulting has staff available to begin work on this project immediately. It is anticipated
that initial results of the cost of service study can be available within 6 to 8 weeks after receipt of
the necessary data. Because the data development/FERC Account formatting task will require
close cooperation with City staff, the schedule for this task will depend on the City's needs and
availability of City staff. Following the completion of cost analysis, a draft report will be
delivered within 1 to 2 weeks of receiving comments on the initial results. Presentation of results
will depend on the schedule set by the utility. Given an authorization to proceed, a detailed
schedule can be designed to accommodate the needs of the City.
Because of our experience in performing unbundled cost of service studies, EES Consulting is
confident that the scope of services presented can be achieved within the time frame required by
the City_
Fee Estimates
EES Consulting, Inc. charges the following hourly billing rates. The fee estimates for this project
have been developed on the basis of the following billing rates:
President....................................................................... .
Senior Vice President.....................................................
VicePresident ...............................................................
Senior Project Manager ....................................
Project Manager ...............................................
Senior Analyst or Engineer ...............................
Analyst or Engineer ..........................................
Senior Administrative Assistant .........................
Ad ' ' t ti As 'stant
....... $150 per hour
.........140 per hour
.........135 per hour
.........125 per hour
.....................115 per hour
nurus ra ve sl ..............................................
.........100 per hour
........... 85 per hour
........... 65 per hour
........... 50 per hour
Based upon the above hourly billing rates, the labor fee budget proposed for this project will not
exceed $32.000 for the scope of services presented for the electric rate study. If the scope of
services is modified, EES Consulting will discuss any required changes to the budget prior to
proceeding.
The above quoted fees will remain in effect until December 31, 2000. Out-of-pocket expenses,
which usually are 15-20% of the total budget, will be passed through to the City at cost.
RESOLUTION NO. 2001-13
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO EXECUTE A CONSULTING SERVICES
AGREEMENT FOR AN ELECTRIC UTILITY COST OF SERVICE
STUDY WITH EES CONSULTING, INC.
WHEREAS, a Cost of Service Study allocates costs for a period of time, usually
one year; and
WHEREAS, a Cost of Service Study is an analytical tool which define, separates
and unbundles the City of Lodi Electric Utility Department's total revenues, expenses and
capital facilities among the various customer classes served for purposes of determining
class revenue requirements; and
WHEREAS, this tool can be used to track competitiveness and to make strategic
decisions and is generally accepted to determine if the class structures are 1) fair and
equitable; 2) avoiding interclass subsidies; 3) tracking whether revenues cover cost; and
4) providing an accurate price signal; and
WHEREAS, the City of Lodi Electric Utility has not had a Cost of Service prepared
since 1993, and whether or not the Cost of Study is used as the basis for setting rates, it
is a very useful device for analyzing the costs incurred by the Electric Utility Department.
NOW, THEREFORE, BE IT RESOLVED, that the Lodi City Council hereby
authorizes the City Manager to execute a Consulting Services Agreement for an Electric
Utility Cost of Service Study with EES Consulting, Inc., not to exceed $32,000.00.
Dated: January 17, 2001
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I hereby certify that Resolution No. 2001-13 was passed and adopted by the Lodi
City Council in a regular meeting held January 17, 2001 by the following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Howard, Land, Pennino and Mayor
Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLA STON
City Clerk
2001-13
_iM
QUAR COA
AMR
A member service of the American Public Power Association Fall 2000, Volume 16 Number 4
Lodi kicks -off holiday season with Parade of Lights
With a bucket truck festooned with
hundreds of lights, The City of Lodi,
Calif., Electric Utility kicked -off the
holiday season in style at the "Parade of
Lights" which drew nearly 30,000 resi-
dents.
"Staff and their families at Lodi Elec-
tric Utility truly look forward to and
enjoy this kick-off to the holiday sea-
son," said Sondra Huff, manager of
marketing and governmental affairs.
"We've been a big participant even•
year with one of the biggest and bright-
est floats."
The parade, which began five years
ago as a joint effort of the City of Lodi
and the Lodi Downtown Business Asso-
ciation, has grown from a mere 20 en-
tries to more than 100 and the utility
has always played a key role by making
sure the lights are turned on when
they're supposed to be.
The Frstyear, Lodi entered a brightly
decorated bucket truck that made up
in brilliance what it lacked in imagina-
MLGW finds cost-effective solution to
overcoming billing and language barrier
Memphis, Tenn., Light, Gas and Water
Division has created a Spanish-language
overlay to help Hispanics with limited
English knowledge better understand
their utility bill. The overlay is made of
thickacrylic that has been screen -printed
entirely in Spanish and has strategically -
located clear fields, so that when the
actual utility bill (in English) is placed
behind it, readers can easily find crucial
information matched with equivalent
terms in their native language.
"We did extensive research with focus
groups and field interviews prior to
launch," said MarkHeuberger, chiefcom-
munications officer. "We went to centers
where Hispanics take English classes, and
visited our own community offices to get
some feedbackand hear comments from
the actual users. The results were over-
whelming. Immigrants were really ex-
cited with the overlay."
Even though MLGW's future plans for
the Hispanic community include a por-
tion of its utility bills printed in Spanish,
for the time being the utility has resorted
to this cost-effective alternative. But the
fact that users can read their utility bill in
their own language does not constitute
the entire advantage ofthe overlay. Some
of the printed areas of the overlay also
contain information such as emergency
numbers, payment locations, and details
on MLGW's services, programs, and poli-
cies.
The utility distributed the overlay to its
Hispanic customers by making it avail-
able free at all of its community offices.
Customers were also able to request the
overlay by completing a coupon that was
published in local Spanish-language news-
papers. The overlay was also featured in
MLGW's utility bill insert.
For more information, contact
Heuberger at 901/523-4491 or e-mail
him at mheuberger®mlgw.com.1
tion. A few of Lodi's employees, along
with their families, rode on the truck.
The utility's entries have become
more ornate since, taking on the theme
of a village and sleigh. One year utility
employees walked the entire route as
dancing Christmas packages lit all the
way around.
Last year employees and their fami-
lies lined both sides of the truck, each
holding two large lighted candy canes
that they moved to music blasted from
a huge sound system.
"Our director, Alan Vallow, has rid-
den in the bucket atop the truck for the
past four years and really looks forward
to the event," Huff said. "We could
barely hold all the employees and their
families that wanted to ride on the
truck."
The day of the event Lodi has a
barbeque and pot -luck event at the
yard while the truck is finally assembled.
"The staff works hard to put together
a great entry—many putting in lots of
their own hours at night," Huff said.
For more information, contact Huff
at 209/333-6765 or e-mail her at
-shuff@lodielectric.com.1
2 Top communicators'
earnings up 4.1 percent
in 2000.
3 Brownsville PUB
sponsors kid's voting
day.
4 Managing crisis
communications.
Inside Public Power Week
Final Report
2 l Quarterly Communicator Fall 2000, Volume 16 Number 4
Top communicators' earnings were up an average of 4.1 percent in 2000
Communications directors of the
nation's local, publicly owned electric
utilities earned an average of 4.1 % more
in 2000 than in 1999, according to a
compensation study conducted byAPPA.
Survey results reflect information re-
ported as of May 1, 2000. The communi-
cations director was defined as the per-
son responsible for internal and exter-
nal utility communications, including
information programs directed toward
the public, media, government, and
employees; and the utility's publications.
No information was collected about the
communications positions for utilities
with less than $10 million in annual
electric revenues because these utilities
typicallyhave fewermanagerial positions.
Forty-two utilities reported a commu-
nications director salary in both 1999
and 2000. The average communications
director salaryfor these utilities increased
4.1 % (from $59,009 to $61,433). How-
ever, the reported salary may or may not
reflect a change in personnel or assigned
job responsibilities.
A total of 634 utilities responded to
the 2000 Survey of tbfanagement Salaries
in Local Publicly Owned Utilities, which
collected information on 20 occupa-
tions for utilities with $10 million or
more in annual electric revenues, and
on 10 occupations for systems with less
than $10 million in annual electric
revenues.
The table below shows the mean,
median and quartile values for com-
munications salaries by revenue class:
Joint Action Agency salary survey
APPA's 2000 Joint Action Agency
Salary Survey gathered data on com-
pensation for 13 joint action agency
employment categories. Of the 19
responses received, nine agencies
provided information about agency
communications directors' salaries.
Following are mean, median, and
quartile values for joint action agency
communications salaries:
Mean $65,677
11, Quartile $56,953
Median $65,354
3rd Quartile $70,001
Revenue Class
in millions
Number of
responses
Mean
1a1 Quartile
Median
3'' Quartile
$10 to $20
10
$45,737
$35,900
$45,524
$57,460
$20 to $50
17
$50,848
$38,292
$48,384
$56,627
$50 to $100
16
$49,129
$38,805
$51,468
$56,152
$100 or more
34
$73,606
$59,779
$74,324
$87,j 53
Bulletin Board
The National Arbor Day Foundation
will sponsor the 2001 Trees & Utilities
National Conference February 6-8.
The conference will be held at the Arbor
Day Farm's Lied Conference Center in
Nebraska City, Neb. The registration
fee is $325 before January 22, and $375
after that date. For more information,
call 402/474-5655.
The U.S. Department of Energy re-
cently launched a new Website
<www.energy.gov> that provides
hundreds of links to energy content on
health, the home, transportation,
schools, businesses, the community,
world and future. Its consumer -friendly
format is aimed at helping you quickly
find information to save money on en-
ergy costs and see the latest sites on
energy use, sources and trends.
Contact APPA's Publications Depart-
ment at 202/467-2926 for additional
information on the following:
APPA's Consumer Information Ser-
vice 2001 offers an array of low cost,
friendly customer service and mar-
keting tools to help your utility inform its
customers about safety, energy effi-
ciency, and the importance of public
power in their community. Forjust$375,
the service provides a year's supply of
12 camera-ready advertisement slicks,
12 announcer scripts for 30 -second ra-
dio spots, 12 hard copies for news re-
leases and 4 camera-ready residential
newsletters. This year APPA is also
offering a 131h free bonus ad and news
release to mark National Electric Safety
Month in May.1
QUART�RLyamm VIC.AWR
Director of Communications
Madalyn Cafruny
(202)467-2952
mcatrunyCAPPAnet. org
Communications Specialist
Louise Muniak, editor
(202)467-2927
lmuniak@APPAnet.org
Communications Program Assistant
Detrius Truslow
(202) 467.2958
dtrLislow@APPAnet.org
Quarterly Communicator is published
winter, spring, summer and fall by APPA's
Communications Department.
i WT&
rVAmerican Public Power dmdatlon
2501 M St.. N.W.
W.hington. DC
20097.1484
a MtRX
SOYIOYINK„
Printed on recycled paper with soy ink
Quarterly Communicator Fall 2000, Volume 16 Number 4 3
Communication Basics
How to start a "computers for the classroom" program
By Cindy Layne, controller, Columbia, Tenn.,
Power & Water Systems, 9311388-4833 ext.
130; e-mail claynegusit. net.
Recently, Columbia Power & Water
Systems teamed up with Maury Alli-
ance (the chamber of commerce) and
the local schools to improve technol-
ogy in the classroom.
The program, titled "Roundup for
Classroom Technology," enables CPWS
customers to "roundup" their monthly
utility bills to the next dollar, with the
option of including an additional do-
nation. The customer designates the
school or schools they want to receive
their donation.
Every dollar contributed to this pro-
gram will be used to put technology in
the hands of the students. CPWS and
Maury Alliance do not keep any of the
money, and charge no administrative
costs to the program.
In the first month of the program,
nearly $1,000 has been sent to schools
to help buy technology materials and
supplies for students. As the funds
grow, the schools will be able to pur-
chase not only supplies and materials,
but computer equipment — hardware
and software.
Initial signup for the program began
at school registration in August. Signup
forms were sent to all CPWS customers
in their October statements.
...our Board not only
approved of the
program, but was very
supportive.
We found the following steps helpful
when starting this program:
1.We began this program by having
several "brainstorming sessions" with
representatives from our public school
system and the MauryAlliance Educa-
tion Committee.
2. Text, we presented the program to
our Board for approval. Fortunatelyour
Board not only approved of the pro-
gram, but was very supportive.
3. We formed a partnership with y,Iaury
Alliance so that all local schools, both
public and private, could participate in
the program. Each school mast submit
a quarterly report to Maury Alliance re-
garding all purchases made with the
"roundup" monies to assure program
objectives are being met.
4. CPWS representatives participated
in Registration Day at each school by
dressing in "cowboy" attire and setting
up a table for parents to signup. In
addition, the schools decorated their
lobbies and the teachers and school staff
also dressed in "cowboy" attire.
5.A news article about the program
ran in the local newspaper, along with a
full-page ad the Sunday before School
Registration Day. We also had the local
newspaper at one of the schools and
they ran the picture on the front page.
6.We had the local newspaper take
pictures of our Board Chairman and the
President of MauryAlliance presenting
the first check to the school with the
highest amount collected.
7.The program was also featured in a
utility bill insert. One side of the bill
stuffer explained the program and the
other side was a signup form that cus-
tomers could return with their payment.
S.CPIVS representatives attended the
first Open House at each school to inter-
face with parents and explain the
program.)
Brownsville PUB Sponsors Kid's Voting Day on Nov. 7
On Tuesday, November 7, more
than 7,000 Brownsville, Texas, el-
ementary, middle school and high
school children modeled what thev
see their parents or grandparents do
- vote! And the Brownsville, Texas,
Public Utilities Board was part of
that activity. Community partners,
such as the Brownsville PUB, enabled
students to experience "the voting
booth". Ballot boxes were placed
next to official polls and students
voted at their schools' polls.
The local newspaper, The
Brownsville Herald, invited the
Brownsville PUB to staff the kids'
voting polls and 10 employees from
different areas of the utility partici-
gated.
"We thought it would be a great
way to get involved with our partner
school—Oliveira Middle School—and
to be able to help encourage stu-
dents to vote," said Sylvia Cancino,
education and outreach coordina-
tor, Brownsville PUB.
Students in the 8th grade social
studies classes, as well as any stu-
dents who came in with their parents
throughout the day to vote, were
given the opportunity to cast their
ballot for President, U.S. Senator,
U.S. Representative and Sheriff.
Some students voiced their opin-
ions about why they were voting for a
certain candidate and one student
said he would register to vote as soon
as he turns 13.
This is the first year that the
Brownsville PUB undertook this
project, but it was such a great expe-
rience that Brownsville PUB staff said
they were ready to do it again next
time. -It was gratifying to see all those
students voting at our partner
school," said Cancino. "They are the
future—four or five years from now,
they will be choosing the next presi-
dent.-
For more information, contact
Cancino at 956/983-6292 or e-mail
her at scancinoQbrownsville-
pub.com.1
4 Quarterly Communicator Fall 2000, Volume 16 Number 4
/ - / / • , / /
Managing crisis communications
requires preparation, accessibility
Think of having a well-defined, posi-
tive corporate identity as an insurance
policy—a reservoir of goodwill—for the
time when a crisis hits and you need to
manage it, advised Kathy Viehe, director
of marketing and communications,
Gainesville, Fla., Regional Utilities. She
spoke at a session on "The Inevitable
Crisis: Communicating Effectively" at
APPA's Customer Connections Work-
shop in November.
An emergency plan is another crisis
prerequisite, Viehe said, and your crisis
spokesperson should have already re-
ceived media training. Other steps in
mounting a good crisis management
offense include creating a crisis manage-
ment team; taking fast, bold action; de-
termining your audiences for informa-
tion; using all communication vehicles;
and working cooperatively with the news
media. "Don't panic," Viehe says. Dur-
ing a crisis you need to have clearheaded
thinking in order to assess and respond
to the situation.
Viehe reminded the audience thatcri-
ses often seem to occur when you are
away. She said she takes her crisis hand-
book alongwith her on day trips and any
major outings away from the office.
Crisis creates utility -customer bond
"Were we prepared? -No. I don't know
ifanyone could be prepared for an event
like this one, but I am grateful for the
level of preparation and planning that
we did have," Sue Bizzaro, public infor-
mation officer, Greenville, N.C., Utili-
ties, said about her utility's experience
with Hurricane Floyd, a category 5 storm
with 153 mph winds that headed up the
East Coast in September 1999.
When the storm hit Greenville, it had
been downgraded to a category 3 but
still wreaked havoc, pelting 20"-30" of
rain in just 24 hours. The Tar River
flooded GU's substation and the entire
service area was dark. Through an engi-
neering feat that energized the last in-
tact transformer, power was finally re-
stored and kept on despite continually
rising waters. Adding to the crisis, the
floodwaters also threatened the water
treatment plant and the city's drinking
water supply.
About 25,000 sandbags later, the river
waters crested, and the utilities systems,
while sustaining damage, remained in-
tact. "The immediate crisis may have
lasted for five or six days, but the effects
of Hurricane Floyd have lasted for sev-
eral months," Bizzaro reported. "Even
today, things are still not completely
back to normal."
One of the positive effects of the
experience was the emotional bond
formed between the utility and its cus-
tomers, Bizzaro said. "Thank you for
the miraciesyou performed with power.
and water during the flood," one cus-
tomer wrote.
Preparation was one key to the utility's
success, Bizzaro said. The utility had a
crisis communication plan, and all em-
ployees were aware of it. Bizzaro had
received media training. The utility had
developed a crisis handbook. And fact
sheets full of statistics and background
information were invaluable.
Bizzaro said the other key to success
was accessibility. The general manager
and other executive staff were available
as media spokespersons, and the utility
approached its communications task
honestivand forthrightly, while keeping
the media informed every step of the
way. CU also worked hard to keep call
center and all employees informed of
current events so that they in turn could
keep customers updated.)
APPA's annual Customer Connections Workshop covers public communications,
energy services, key accounts, customer services, marketing, and other topics. A list of
papers available from the November 2000 workshop is posted on APPA's Web site at:
www�PPAnet.org/general/calendar/meeting.htm-
E-commerce requires
constant Web updates
Electronic commerce is a must for
public power systems in the new mil-
lennium, so employees with Web re-
sponsibilities need to "think like cus-
tomers think" in order to create an
effective site that provides service to
customers and efficiencies to the util-
ity, says Bob Mason, Jr., PE, Inc.,
Bradenton, Fla.
Mason taught a seminar on "Spin-
ning the Web of E -Services" prior to
APPA's Customer Connections Work-
shop in November in Palm Springs,
Calif. Here are seven more of his tips
on communicating and conducting
transactions with customers:
1. Change your Web site every six
months — color, layout, and other
elements—in order to keep users'
interest. Add "functionality" a
couple of times a year to keep the
customer coming back for more.
2. Advertise your Web site to attract
users.
3. Recruit five customers as a perma-
nent team to reviewyour Web site.
4. Gather information from your cus-
tomers, such as the number with
computers, the number with
Internet access, and the number
making purchases over the
Internet. Gather your customers'
e-mail addresses so you can survey
them.
5. Be interactive. "Brochure -ware" —
or read-only—elements provide
limited opportunity for enhancing
customer relationships.
6. adopt a 24-hour maximum stan-
dard turn -around for replies to
customer e-mail questions and
comments.
7. Don't feel pressured to develop
your Web site all at once. It is a
process that will require continual
updating and improvement.)
Quarterly communicator Fall 2000, Volume 16 Number 4 5
Communicators
Louise Muniak, communications spe-
cialist at the American Public Power
Association, has been selected as a
2000 Saturn "Women At Their Best"
award winner. She will receive a $500
check from Saturn Corporation to be
donated to a charity of her choice and
a limited edition framed photograph
signed by renowned nature photogra-
pher Monte Nagler. Muniak has cho-
sen The World Wildlife Fund, dedi-
cated to protecting the world's wildlife
and wildlands, as her charity. Her
name will also appear in a special
insert in the December 2000 issue of
Glamour Magazine.
Doris Dominguez joined the
Kissimmee, Fla., Utility Authority as
its communications specialist.
Dominguez comes to KUA from Walt
Disney World where she specialized in
event planning, newsletter production,
and other public relations duties. She
is a communications graduate of
Valdosta State University in Georgia.
The Kissimmee, Fla., Utility Author-
ity earned a Golden Image Award in
crisis communications from the Florida
Public Relations Association for its re-
sponse to a theft of $250,000 in utility
payments in November 1999.
Bill Radio's title at the Missouri River
Energy Services, Sioux Falls, S.D.,
has been changed from manager to
director of member & public relations.
Likewise, Roger King is now public
communications coordinator.
Moorhead, Minn., Public Service has
recently named Jennifer Walz as its
new communications director. Re-
cently, Walz taught English at
Moorhead Junior High School and di-
rected the school musical. Last sum-
mer, she was selected to produce the
US West World Arts Festival at
Trollwood Performing Arts School.
Walz graduated in 1997 from Minne-
sota State University, Moorhead, with
a major in English and secondary edu-
cation.
The Nebraska Public Power District,
Columbus, Neb., received several in-
dustry awards for its newsletter, The
Energy Leader, including an award of
excellence in the International Asso-
ciation of Business Communicators/
Omaha Bronze Quill contest for com-
munications redesign and an award of
excellence in the 2000 APEX contest
for best publication redesigns.
Sonya Dixon has replaced Jody
Wassmer at the Owensboro, Ky., Mu-
nicipal Utilities as its communications
& public relations specialist. Prior to
joining OMU, she was communications
coordinator for the Big Rivers Electric
Corporation and Kenergy Corporation
in Henderson, Ky. Dixon graduated in
1991 from Western Kentucky Univer-
sity, with a degree in public relations.
Tacoma, Wash., Power won three
firstplace and two second place awards
at the Utility Communicators Interna-
tional Better Communications Contest.
"Bringing power to your life" and "Now
there's a bright idea" are the attention -
getting phrases used in a new ad
campaign by Southern Minnesota
Municipal Power Agency, Rochester,
Minn. The campaign is returning for
another eight weeks to promote the
advantages of public power and to
increase awareness of SMMPA as a
wholesale energy provider. This and
several other ads depicting various
illustrations of light fixtures and light bulbs
first appeared in member communities
early this summer. SMMPA believes
strongly in helping its members serve
customers with good, reliable service.
SMMPA is a wholesale supplier to 18
member cities, most of which are located
in south central and southeastern
Minnesota.
The utility also won a Crystal Award of
Excellence from The Communicator
Awards and a silver award in the 2000
Summit Creative Awards, an interna-
tional competition, for its 1998 annual
report. John Phillips took first place
honors for best informational program
from Alliance for Community Media
(Northwest Region) for"Public Utilities
preparations for the year 2000" and
won an award of distinction in the 2000
Videographer Awards sponsored by
Videographer magazine for a 1998
public service announcement about
the new public utilities' logo.
Phillip Burgess has been named com-
munications director for the Tennes-
see Valley Public Power Associa-
tion. He oversees communication,
public relations and public information
programs. A graduate of the Univer-
sity of Alabama, Burgess has more
than 20 years experience in utilitycom-
munications. He also worked as a
newspaper reporter, editor and broad-
cast journalist. Burgess most recently
served as the communications man-
agerfor Alabama Electric Cooperative
in Andalusia, Ala.l
dependable
service
firouyi+
stability.
Now there's a bright idea.
6 Quarterly Communicator Fall 2000, Volume 16 Number 4
QUARTEUYCOMNI�_CAVO,
American Public Power Association
2301 M St. N.W., Washington, D.C. 20037-1484
Address Service Requested
Tips for presenting an award winning annual report
It's never too early to start prepar-
ing for the American Public Power
Association's 2001 Annual Report
Contest, open to member utilities and
joint action agencies. The entries,
which are judged in five classes based
on gross annual revenues, are viewed
by a panel of experienced profession-
als in the areas of design and commu-
nications.
Entries
Before submitting an entry, it is
important that each report is entered
in the correct class along with the
following information:
I completed APPA entry form;
I five copies of your utility's annual
report;
1$25 check or money order made
payable to: American Public Power
Association;
I.gross electric revenues for the year
covered by the report;
whether the report's copy, photogra-
phy, and artwork was prepared by util-
ity staff;
I intended audience of the report; and
I approximate budget for design and
printing.
What the judges are looking for
In the past, judges have noted the
following characteristics in making
their winning selections:
I concise and interesting copy that por-
trays a "public power" message of com-
munity involvement with well written
text;
I dramatic covers and artwork through-
out that show creativity and imagina-
tion;
I thorough financial data, and even a
separate financial publication (balance
sheet, operating schedule, and debt
schedule);
I overall organization; and
I a good printing job (fonts, paper
stock, illustrations, etc.).
When the judging is complete, re-
cipients from each class will be selec ted
for an Award of Excellence (first place)
and an Award of Merit (second place).
Please be advised that reports with miss-
ing financial data will be at a consider-
able disadvantage. The entry must be
the utility's most current report not
previously submitted. APPA will mail
2001 entryforms in earlysummer. They
will also be posted on APPA's Website
<www. APPAn a t. org>.
For more information, contact
Louise Muniak,APPA communications
specialist, at 202/467-2927 or e-mail
her at lmuniak@APPAnet.org.1
Ltilit
Reporter
LOCAL 1245 " AFL - CIO
SANTA'S SLEIGH
Local 1245 members at the City of
Lodi converted a bucket truck into a
sleigh with thousands of lights for the
Christmas Parade. Al Smatsky,
above, is a senior electrical estimator.
At right, the "North Pole" is extended
from the boom with reindeer leading
the way.
}�
V A E;l� n�: Jenli>iF� 1iV
y'�ler!1.:-F�.',,,, •,- . -�j.a. ,..-..�5iir3�.1�fJvMc.rf. yX,4
Elnliy is Strengih
�a
Unions call on Governor
to roll back deregulation
ocal 1245 and its union allies
called upon Gov. Gray Davis
last month to move quickly to
safeguard the financial stability of
California's regulated electric utili-
ties and to restore their responsibil-
ity for all aspects of electric scr-
vice, from generation to retail ser-
vice.
The unions' proposal, made in a
letter to Gov. Davis on Dec. 6, pro-
vides a realistic way for California
to exit its disastrous experiment
with electric deregulation. That di-
saster deepened in December as
SB 739 enhances public sector bargaining rights
power shortages kept California
tettering on the brink of blackouts,
and astronomical wholesale elec-
tric prices propelled Pacific Gas
and Electric toward bankruptcy.
The most immediate need, the
unions said, is to eliminate the threat
of utility bankruptcy.
"If action is not taken in the next
very few weeks to restore financial
stability, PG&E, Southern Califor-
nia Edison and San Diego Gas &
Electric will be lorced to stop con-
struction and maintenance of the
electric infrastructure, and dramati-
cally reduce the workforce that re-
sponds to outages. Electric service
will become highly unreliable," the
nni.in c!Vifr
:i", 7�! Public Power Week
October 1- 75 2000
A program of the American Public Power Association and the nation's community -owned electric utilities.
Final Report
December 2000
2000 Public Power Week celebrations reflect the new millenium
In October, communities across the
nation celebrated the 1411 annual Pub-
lic Power Week—the first of the new
millenium.
More than 200 communities joined
in the celebration that heralded the
awareness of public power and to dem-
onstrate how each utility can benefit the
consumer.
Below, and in the articles and pages
that follow, are examples of how public
power systems marked the event:
Public Power Week was "our chance to make our community
aware of our success, and at the same time show appreciation
to our customers." Sandra Hickman, purchasing department,
Litchfield, Minn., Public Utilities Commission
benefits of locally owned, not-for-profit
electric utilities.
While each local observance is as var-
ied as the utility that sponsors it, the
collective goal has remained the same
from the last millenium to this: to raise
I Douglas County PUD in East
Wenatchee, Wash., enlisted the mayor's
help to install a "Public Power Commu-
nity" sign on the town's sign post.
The Nebraska Public Power District,
Columbus, Neb., awarded Senator Bob
Berry the George W. Norris Award for his
service to the public power community
and his commitment to preserving and
protecting Nebraska's resources.
I Gainesville, Fla., Regional Utilities
sponsored its 4"' Annual "Electrifying
Celebration." The event included jug-
glers and clowns, entertainment from a
local elemen Lary school choir and band,
and bucket rides for the kids.
I The City of Granite, Okla., designed a
window display consisting of a fully
equipped power pole and six antique
electric meters operating from a small
light fixture to show customers how elec-
tricity comes from the primary line to the
meter and into their homes.
The City ofVermillion, S.D., hosted an
open house where customers received
gift bags that included light bulbs and
frisbees while munching on free Polish
sausage, chips, and soda. The utility also
raffled off several prizes donated by its
vendors.
Read on for more examples of Public
Power Week celebrations.)
Governors sign proclamations honoring Public Power Week 2000
APPA recognizes seven governors who issued proclamations hon-
oring public power during the 2000 celebration. APPA extends many
thanks to these friends of public power and to the organizations that
worked to have the proclamations signed. Other communities passed
resolutions or issued proclamations in celebration of Public Power
Week. Special recognition goes to Washington, Nebraska, and Min-
nesota for the large number of utilities that participated in Public
Power Week.
Governors who signed proclamations:
Gov. Don Siegelman, State of Alabama
Gov. Paul Patton, State of Kentucky
Gov. Mike Johann, State of Nebraska
Gov. Bob Taft, State of Ohio
Gov. Howard Dean, State of Vermont
Gov. Tommy Thompson, State of Wisconsin
Gov. Jim Geringer, State of Wyoming
Final Report page 2 December 2000 -
Customer relations heightened through community outreach
Public power entities have a unique
responsibility to those they serve. During
this time of great change in the electric
utility industry, it is more important than
ever to inform your customers of the
advantages of a community -owned elec-
tric utility.
Many public power udliLies have made
the benefits of public power at Taunton,
Mass., Municipal Lighting Plant's 1411'
annual community day. The event fea-
tured educational displays, tours of the
TMLP station, face painting, a putting
contest, and rides in a bucket truck.
Colton, Calif., Public Utilities erected
a large display at City Hall that included
"While these types of activities require a lot of planning and
work, the results demonstrate the value of public ownership
and local control." Lelian Solip, marketing manager, Tacoma,
Wash., Power
greatstrides in differentiating themselves
from their corporate counterparts and in
positioning themselves as valuable com-
munity resources.
I dearly 1,800 local residents celebrated
Utilities nationwide
promote service
Others celebrated Public Power Week
in conjunction with personal or commu-
nity milestones or charity events.
Middleborough, Mass., Gas & Electric
raised 40 flags on downtown vin tage lamp-
posts in honor of the new National Reg-
ister of Historic Districts in
Middleborough. The delivery of the cer-
tificates and ceremony fell at the begin-
ning of Public Power Week.
I Cedarburg, Wis., Light & Water Utility,
whose local high school mascot is a bull-
dog, gave away "Who let the DOGS out?"
megaphones to the first 100 people who
brough t a personal care item to the game.
The items were later donated to a home-
less shelter.
Idaho Falls, Idaho, Power celebrated
Public Power Week in conjunction with
its 100"' anniversary. Special exhibits and
safety demonstrations were feature attrac-
tions at an open house thatalso included
plant tours, bucket truck rides and door
prizes.)
a stand-alone unit with an incandescent
bulb and a compact fluorescent each at-
tached to a meter. Intended to educate
customers about energy -efficiency, the
display was staffed by energy services
employees and meter readers to answer
questions.
1 Groton, Conn., Utilities initiated an
emergency beacon light bulb program.
The bulbs were offered to customers at
cost and offered free to all customers on
life-support systems.
1 Worthington, Minn., Public Utilities
sponsored a drawing. Customers were
asked to fill out a coupon included in the
Fall 2000 newsletter. Ten winners were
drawn, each receiving $25 credits toward
their electric utility bill.
1 Lakeland, Fla., Electric sponsored a
"Family Day" that included power plant
tours, bucket truck rides, children's ac-
tivities, face painting, demonstrations and
displays, and lots of giveaways.
1 Johnson City, Tenn., Power Board de-
livered sausage biscuits to key commer-
cial and industrial office personnel.
I Pend Oreille County Public UtilityDis-
trict No. 1, Newport, Wash., offered free
lectures on "How to ReduceYour Electric
Bill" and "The Information Super
Highway."l
Present and future utility customers
reached through education campaigns
Children are public power's custom-
ers of the future. It's never too early to
offer children safety information and en-
ergy -efficiency tips, which are also much
appreciated by their parents and a com-
munity—wide service.
Tacoma, Wash., Power hosted a free
soccer clinic for players aged 14 and
under. The EPA and DOE Energy Star
Program and the Northwest Energy Effi-
ciencyAlliance helped sponsor the clinic.
More than 300 kids honed their skills
with Tiffeny Milbert, memberof the U.S.
Women's National and Olympic soccer
team_ Al kids had a chance to kick a
soccer ball into an Energy Star Washer
Shootout and one lucky winner got to
keep the washer.
The City of Mangum, Okla., handed
out activity/coloring books on electrical
safety for a coloring contest for grades I;
6. Astudent from eachgrade was awarded
a prize for their creativity.
1 The City of Lodi, Calif., Electric Util-
ity, hosted an open house that drewsome
400 school -aged children from public
and private schools. The students, their
teachers and chaperones learned how
electricityis delivered safely and reliably.
Each student also went home with a Lodi
Electric Utility bag frill of treats.
1 Rensselaer, Indiana, Power and Light
Plant offered safety, energy conservation.
and electricity- demonstrations at its power
plant to about 700 students from first
graders to college students.
1 North Attleborough, Mass., Electric
hosted its 5`h annual Energy Conserva-
tion Coloring Contest for local third and
fourth graders. The winning entries will
be featured in the utility's 2001 calendar
and all the drawings submitted were
displayed at a special Public Power Week
celebration called "Safety Saturday" —
now in its 6th year.
Children were given the opportunity to
become apprentice linemen during
Edmond, Okla., Electric's open house.)
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Final Report page 4 December 2000 `
2000 Honor Roil of Public Power Week Celebrations
APPA knows of 2000 Public Power
Week events sponsored by these
organizations because information was
received from the utility itself, through
our clippings service, or from a utility
newsletter.
Alabama:
City of Dothan
Electric Cities of Alabama
Florence Utilities
Huntsville Utilities
Muscle Shoals Electric Board
Scottsboro Electric Power Board
Sheffield Utilities
City of Tuscumbia
California:
Burbank Water & Power
California Municipal Utilities Associa-
tion
City of Colton
City of Glendale
Lodi Electric Utility Dept.
Sacramento Municipal Utility District
Turlock Irrigation District
Colorado:
City of Burlington
Town of Estes Park
Fort Collins utilities
Longmont Power & Communications
City of Loveland
Platte River Power Authority
Connecticut
Groton Utilities
Jewett City Department of Public
Utilities
Norwich Public Utilities
Florida:
Fort Pierce Utilities Authority
Gainesville Regional Utilities
Kissimmee Utility Authority
City of Lakeland
Orlando Utilities Commission
City of Tallahassee
City of Vero Beach
Georgia:
Marietta Power
Idaho:
City of Idaho Falls
Indiana.
Anderson Municipal Light & Power
Indiana Municipal Power Agency
City of Rensselaer
Rising Sun Municipal Utility
Tell City Electric Dept.
Iowa:
Graettinger Municipal Light Plant
Indianola Municipal Electric & Water
Utility
Osage Municipal Utilities
City of Pella
Woodbine Municipal Light & Power
Kansas:
City of Winfield
Kentucky.
Hopkinsville Electric System
Mayfield Electric & Water Systems
Owensboro Municipal Utilities
City of Princeton
Loniciana•
City of New Roads
Massachusetts:
Braintree Electric Light Dept.
Chicopee Municipal Lighting Plant
Town of Danvers
Merrimac Municipal Light Dept.
Middleborough Gas & Electric Dept.
North Attleborough Electric
Reading Municipal Light Dept.
Taunton Municipal Lighting Plant
Wakefield Municipal Gas & Light Dept.
Michigan:
Lowell Light & Power
City of Sturgis
Minnesota:
City of Benson
Blooming Prairie Public Utilities
Brainerd Public Utilities
East Grand Forks Water, Light, Power &
Building Commission
Litchfield Public Utility Commission
Minnesota Municipal Utilities Association
New Prague Utilities Commission
New Ulm Public Utilities
Preston Public Utilities Commission
Springfield Public Utilities Commission
City of Thief River Falls
Worthington Public Utilities
Missouri:
City Utilities of Missouri
Independence Power & Light
Missouri Public Utility Alliance
Marshall Municipal Utilities
Nebraska:
Auburn Board of Public Works
City of Battle Creek
Beaver City Light Plant
City of Central City
Cornhusker Public Power District
Cuming County Public Power District
Elkhorn Rural Public Power District
City of Gering
City of Hemingford
KBR Rural Public Power District
Loup River Public Power District
City of Madison
City of Nebraska City
Nebraska Public Power District
NMPP Energy
North Central Public Power District
Northeast Nebraska Public Power
District
City of Pender
Plainview Municipal Utilities
Polk County Rural Public Power District
City of Randolph
City of Schuyler
Seward Electric Dept.
Southwest Public Power District
Village of Spencer
Stanton County Public Power District
City of Stromsburg
City of Wakefield
City of Wilber
City of Wisner
New York:
Village of Greene
Municipal Electric Utilities Association
North Carolina:
Fayetteville Public Works Commission
North Dakota:
Valley City Public Works Dept.
Ohio:
American Municipal Power — Ohio
City of Amherst
Bryan Municipal Utilities
Cleveland Public Power
City of Cuyahoga Falls
Ohio Municipal Electric Association
Shelby Municipal Light Plant
Villages of Versailles
Wadsworth Electric & Communications
City of Wapakoneta
Oklahoma:
Altus Municipal Authority
City of Blackwell
City of Copan
Duncan Power & Light
City of Edmond
City of Fairview
Frederick Public Works Authority
Grand River Dam Authority
City of Granite
KingfisherPublic Works Authority
Town of Laverne
City of Mangum
Municipal Electric Systems of Oklahoma
City of Newkirk
Okeene Light & Water Dept.
Oklahoma Municipal Power Authority
Town of Olustee
City of Pawhuska
Ponca City Utility Authority
City of Pryor
Tecumseh Utility Authority
Wynnewood City Utilities Authority
City of Yale
Oregon:
City of Ashland
Blachly-Lane Electric Cooperative
Final Report page 5 December 2000
2000 Public Power Week Honor Roll continued
Clatskanie PUD
Emerald PUD
Eugene Water & Electric Board
Springfield Utility Board
Tillamook PUD
South Carolina:
Abbeville Public Utilities
City of Bennettsville
City of Clinton
Easley Combined Utilities
Gaffney Board of Public Works
Greer Commission of Public Works
Laurens Commission of Public Works
City of Newberry
Piedmont Municipal Power Agency
City of Rock Hill
Santee Cooper
City of Union
City of Westminster
South Dakota:
City of Vermillion
Tennessee:
Dyersburg Electric System
Johnson City Power Board
Lewisburg Electric System
Nashville Electric Service
Tullahoma Utilities Board
Texas:
Denton Municipal Electric
San Antonio City Public Service Board
Utah:
Bountiful City Light & Power
Murray City Power
Provo City Department of Energy
Vermont
Burlington Electric Dept.
Northeast Public Power Association
Washington:
Benton County PUD No. I
City of Connell
Douglas County PUD No. 1
Energy Northwest
Ferry PUD No. 1
Franklin County PUD No. I
Grant County PUD No. 2
Grays Harbor PUD No. 1
Mason County PUD No. 3
Northwest Public Power Association
Pend Oreille PUD No. I
Snohomish County PUD No. I
Employees play blg roll in celebrating week
Employees, the ambassadors of our
industry, have a tremendous impact on
how the community views your utility.
Positive statements from an employee
can reinforce the message your utility is
trying to convey and many utilities rec-
ognize the importance of honoring em-
ployees for their hard work and dedica-
tion.
forts to serve customers.
Turlock, Calif., Irrigation District,
hosted a family night for approximately
400 people, its largest attendance ever.
I Ferry County, Public Utility District
No. 1, Longview, Wash., held an em-
ployee breakfast and issued a press re-
lease that named and thanked utility
employees.
"We officially celebrated Public Power Week for the first
time ... We were extremely happy with our Public Power Week
celebration." Erick Rheam, key accounts coordinator, Anderson,
Ind., Municipal Light & Power
Public Power Week offers utilities a I Marietta, Ga., Power hosted abarbeque
rare chance to combine the heightened luncheon for its employees, retirees,
enthusiasm and pride employees already board and council members. Golf shirts
feel with the gratification of knowing with the Public Power Week logo were
employers appreciate their yearlong ef- given to each employee.11
Tacoma Public Utilities
Washington PUD Association
West V trginia:
Ciyt of New Martinsvi tie
City of Phillippi
Wisconsin:
Cedarburg Light & Water Commission
Village of Hustisford
Municipal Electric Utilities of Wisconsin
Menasha Utilities
City of Plymouth
City of Stoughton
Sun Prairie Water& Light Commission
Wisconsin Public Power Inc.
Wyoming:
Ciy of Cody
Town of Fort Laramie
Town of Guernsey
Town of Lingle
Town of Lusk
Town of Pine Bluffs
City of Powell
Town of Wheatland
Wyoming Municipal Power Agency
Give us your ideas
Next year will bring the 15th
annual Public Power Week. If you
have suggestions for resources
APPA can provide, contact:
Madalyn Cafruny
Director of Communications
phone: 202/467-2952
email: mcafruny®APPAnet.org
Louise Muniak
Communications Specialist
phone: 202/467-2927
email: lmuniak-@APPAnet.org
Detrius Truslow
Program Assistant,
Communications
phone: 202/467-2958
email: dtruslow@APP.,knet.org
American Public Power Association
2301 M Street, N.W.
Washington, DC 20037-1484
202/467-2900 , A�
www.APPAnet.org ArfA
For the future...
Mark your calendars for
future Public Power Weeks,
which are always the first
full week in October (Sun-
day through Saturday)
2001—October 7-13
2002 October 6-12
2003 October 5-11
2004 October 3-9
2005 October 2-8