July 7, 2020€¦ · Mukilteo Ferry Terminal - 154 kW Rooftop Solar Photovoltaic System Presenters:...

Continued →

SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT

BOARD OF COMMISSIONERS REGULAR MEETING

Zoom Online Meeting Platform

July 7, 2020

The Board of Commissioners meeting will be held virtually via Zoom Meeting. Due to the

COVID-19 pandemic and Proclamation 20-28.5 issued by Governor Jay Inslee, in-person

attendance is not permitted at this time.

CONVENE REGULAR MEETING - 9:00 a.m. – Virtual Participation Information

Join Zoom Meeting:

Click link:

https://zoom.us/j/92744847748?pwd=SXMzSHdrc0YyQklGWUhOVTJwSVZvUT09

Dial in: (253) 215-8782

Meeting ID: 927 4484 7748

Password: 464043

1. CEO/GENERAL MANAGER BRIEFING AND STUDY SESSION

A. Updates 1. Other

Connect Up Communication Plan

B. Proposed Small Renewables Program Power Purchase Agreement Between

Snohomish PUD and Washington State Department of Transportation

C. Overview of Snohomish PUD’s Energy Resources and State Energy Regulatory

Requirements

D. Electric Transportation Plan Update

E. Debt Management Opportunities Update

RECONVENE REGULAR MEETING - 1:30 p.m. – Virtual Participation Information

2. COMMENTS FROM THE PUBLIC

Virtual Participation Information:

If you are attending the meeting virtually (using the link or number provided above) please

indicate that you would like to speak by clicking “raise hand” and the Board President will call

on attendees to speak at the appropriate time. If you are joining by phone, dial *9 to “raise

hand.”

1/212

Snohomish County PUD Commission Agenda

July 7, 2020

3. CONSENT AGENDA

A. Approval of Minutes for the Regular Meeting of June 16, 2020, and the Special Meeting

of June 23, 2020

B. Bid Awards, Professional Services Contracts and Amendments

C. Consideration of Certification/Ratification and Approval of District Checks and Vouchers

4. ITEMS FOR INDIVIDUAL CONSIDERATION

A. Consideration of a Motion Accepting the Asset Protection Monitoring Report

B. Consideration of a Resolution Approving an Electric Transportation Plan for the District

C. Consideration of a Resolution Authorizing the Assistant General Manager, Customer and

Energy Services, to Execute a Master Energy Savings Administration Agreement with

Puget Sound Energy, Inc. to Establish a Joint Program in Which the District and PSE Could

Purchase Energy Savings from Each Other and Engage in Mutually Agreed upon

Marketing Activities to Promote Energy Savings Measures in the District’s Service

Territory

5. CEO/GENERAL MANAGER REPORT

6. COMMISSION BUSINESS

A. Commission Reports

B. Commissioner Event Calendar

7. GOVERNANCE PLANNING

A. Governance Planning Calendar

ADJOURNMENT

The next scheduled regular meeting is July 21, 2020

Agendas can be found in their entirety on the Snohomish County Public Utility District No. 1

web page at www.snopud.com. For additional information contact the Commission office at

425.783.8611.

2/212

BUSINESS OF THE COMMISSION

Meeting Date: July 7, 2020 Agenda Item: 1

TITLE:

CEO/General Manager’s Briefing and Study Session

SUBMITTED FOR: Briefing and Study Session

CEO/General Manager John Haarlow 8473 Department Contact Extension

Date of Previous Briefing: N/A Estimated Expenditure: Presentation Planned

ACTION REQUIRED:

Decision Preparation Incidental Monitoring Report

Policy Discussion (Information)

Policy Decision

Statutory

SUMMARY STATEMENT:

Identify the relevant Board policies and impacts:

Executive Limitations, EL-9, Communications and Support to the Board – the CEO/General

Manager shall...marshal for the board as many...points of view, issues and options as needed for

fully informed Board choices.

List Attachments:

CEO/General Manager’s Briefing and Study Session attachments

3/212

Proposed Small Renewables Program Power Purchase Agreement Between Snohomish PUD and Washington State Department of Transportation

Mukilteo Ferry Terminal - 154 kW Rooftop Solar Photovoltaic System

Presenters: Senior Manager Power Supply Anna BergSenior Executive Account Manager Doug O’Donnell

General Manager’s Briefing – July 7, 2020

4/212

Ferry Terminal Project Overview

WSDOT received federal and state funding to construct and replace the aged Mukilteo terminal:

• Located about 1/4 mile east of existing terminal

• Mitigates traffic congestion in area, improves passenger safety loading/unloading, and frees up developable land for urban renewal

• Improves multimodal transit integration with Sounder train and bus access, and improves pedestrian safety

• Late 2020 in service date

Funding included installation of a 154 kW solar photovoltaic (PV) system on the terminal roof.

25/212

Location• About ¼ mile east of existing Mukilteo Ferry Terminal

• Site formerly a U.S. Air Force fueling station, abandoned after the Cold War

36/212

PV Project OverviewPUD and Washington State DOT and Ferry project team began collaborating on the current solar iteration in July 2019.

• Interconnection request filed, PUD System Impact Study completed January 2020

• Interconnection Agreement executed by WSDOT October 2020

• Rooftop solar panels installed on terminal during June 2020

• PV system nearing energization late summer 2020

PV system size exceeds net metering size and meets criteria for selling output under PUD’s Small Renewables Program.

47/212

PUD’s Small Renewables Program

• Adopted by the PUD’s Board of Commissioners in 2011.

• Created standard method for calculating contract price for a customer-owned renewable resource, sited in the PUD’s service territory.

• Developed to encourage local, customer-owned, distributed energy resources:

Aligns with Strategic Priorities

Distributed energy resources provides a number of measurable benefits to the PUD and its customers beyond energy value

Diversifies power supply portfolio

Can help meet State annual renewables requirements (2X RECs)

• Program provides customer with transparent and timely indicative pricing to help evaluate project feasibility.

• One customer currently enrolled the Small Renewables Program since 2014.

• Program participation subject to Board approval.

58/212

Public Facing Web

Presence

6Link to Small Renewables Program

9/212

Program Details

Program eligibility criteria:

• Open to a small renewable resource or resource that does not emit carbon.

• Generator nameplate capacity of 100 kW up to 2MW.

• Located in PUD service area at single site.

• Aggregate program limit capped at 10 MW.

Program provides:

• Standard contract pricing methodology.

• Standard Power Purchase Agreement (PPA):

Contract term of 1 or 5 years, with option to extend 5 years

PPA subject to Board approval

Support Program Process includes:

• Standard interconnection study and process for interconnection of customer’s generator to District’s Electrical System.

• Standard District Interconnection Agreement.

710/212

Standard Contract Pricing Components

Energy Price (forecast energy market price)

Tradable REC Value (if applicable)*

Transmission & Distribution Loss Credits

Distributed Generation REC Credit (if applicable)

Deferred System Upgrades Credit (5 yr term only)

Deferred System Upgrades Credit (5 yr term only)

Generation Capacity Cost Credit (5 yr term only)

8

Customer can elect one or five- year

contract term:

One-year term eligible for first 3

pricing components;

Five-year term eligible for most all

remaining price components.

*Only renewable resources eligible under the Energy Independence Act (I-937)

are allocated a financial value for RECs generated.11/212

Standard Power Purchase Agreement

Contract Pricing for term by month, specified for on and off peak hours.

No Energy Price component paid during months of May and June when District typically has surplus energy.

Considers contract term extension, based on mutually agreeable business terms.

Details the reporting of RECs associated with project output.

Establishes scheduling requirements for Power Scheduling.

912/212

Ferry Terminal PV System – Contract Pricing

ENERGY PRICE 2020 2021 2022 2023 2024

HLHs except May-Jun 3,011$ 3,038$ 3,115$ 3,230$ 3,479$

LLHs except May-Jun 473$ 475$ 498$ 526$ 570$

May-Jun ("Zero" price) -$ -$ -$ -$ -$

Total Energy Price 3,484$ 3,513$ 3,613$ 3,756$ 4,049$

CREDIT FOR T & D LOSSES

Transmission Loss Credit 70$ 70$ 73$ 75$ 82$

Distribution Loss Credit 137$ 136$ 142$ 147$ 159$

Total Loss Credit 207$ 206$ 215$ 222$ 241$

TRADABLE REC VALUE (if applicable) 893$ 1,133$ 1,295$ 1,457$ 1,623$

OTHER CREDITS (if applicable)

Deferral of System Upgrades Credit (does not apply to 1 yr contracts) 248$ 254$ 260$ 266$ 272$

Distributed Generation Credit 446$ 567$ 648$ 728$ 812$

Total Other Credits 694$ 821$ 907$ 994$ 1,084$

GENERATION CAPACITY CREDIT (does not apply to 1 yr contracts) 1,083$ 1,079$ 1,079$ 1,079$ 1,083$

TOTAL PRICE 6,361$ 6,752$ 7,110$ 7,509$ 8,080$

Estimated Overall Effective $/MWh 39.19$ 41.71$ 43.92$ 46.38$ 49.78$

1013/212

Guidance Sought

Staff Recommendation• To execute a power purchase agreement with Washington

Department of Transportation for 100% of the energy and environmental attributes from the new Mukilteo Ferry Terminal’s 154 kW rooftop solar project for the 2020-2025 period.

• Power purchase agreement consistent with terms and conditions of the PUD’s Small Renewables Program.

Next steps• At the July 21, 2020, Regular Meeting, consider a resolution to

authorize the CEO/General Manager to execute a power purchase agreement substantially in the form of Standard Small Renewables Program Power Purchase Agreement.

1114/212

Questions?

15/212

Overview of

Snohomish PUD’s Energy Resources and

State Energy Regulatory Requirements

General Manager’s Briefing July 7, 2020

Presenters: Senior Manager Power Supply Anna Berg

State Government & External Affairs Associate Clark McIsaac

Previous Presentation on Clean Energy Transformation Act: October 2019

16/212

Agenda

• Snapshot of PUD’s energy portfolio and serving customers

• Highlights of State Energy Regulatory Requirements for PUD Portfolio

1. Annual Fuel Mix Disclosure

2. Energy Independence Act and Annual Renewables Target

3. Integrated Resource Planning Requirements

4. Clean Energy Transformation Act (CETA) – NEW!

• Primary Components of CETA

• Update on CETA Rulemaking Process

• Wrap Up and Future Briefings

2

17/212

2019 Portfolio Actuals by Source

3

PUD Owned Hydro

6%

Other

Renewables

<1%

Wind

7%

Market Purchases

10% Hydro

83%

Nuclear

12%

Market Purchases

5%

Wind (no RECs)

<1%

BPA Block-Slice Contract

(Net of Surplus Slice Sales)

77%

2019 PUD Power Supply Portfolio

2019 BPA Portfolio

PUD Resource Mix is posted under “About Us” on snopud.com18/212

4

2019 PUD’s Average Load-Resource Balance by Month

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

Jan Feb March April May June Jul Aug Sep Oct Nov Dec

Tota

l Mo

nth

ly M

ega

wat

t h

ou

rs

PUD Hydro BPA Block Biomass/Biogas Wind BPA Slice Mkt Purchase Retail Load

19/212

Highlights of State Energy Regulatory Requirements

1. Fuel Mix Disclosure

2. Energy Independence Act (I-937)

3. Integrated Resource Plan (IRP)

4. Clean Energy Transformation Act

(CETA)

5

Annual portfolio disclosure by fuel type to Commerce, (info lags by up to 6-8 months)

Progress report filed with Commerce by June 1 Actuals reported, retired and submitted for review by State Auditor

Comprehensive analysis every 4 years, update every 2 years. Subject to Board review, public hearing and Board adoption, filed with Commerce

New law, new requirements Revise some provisions in IRP and resource planning, creates new portfolio standards to name a few….Many new reporting requirements

20/212

Annual Fuel Mix

Disclosure

(by fuel type)

PUD’s Fuel Mix is posted under “About Us” on snopud.com

6

Biomass

0.48%Biogas

0.05%

Hydro

75.93%

Nuclear

11.45%

Other

0.64%

Solar

0.25%

Wind

6.50%

Unspecified

4.70%

PUD’s 2019 Preliminary Annual Fuel Mix

*Unspecified is a new category the Washington State Department of Commerce added in 2018 to

reflect that in some instances the fuel type may not be known as a market purchase BPA may have made that helps serve a utility under its long-term BPA power contract.

21/212

Energy Independent Act (EIA or I-937)

• Washington utilities with 25,000 or more customers are subject to annual EIA requirements and serving

an increasing percentage of retail sales with eligible renewables. There are also certain requirements

for a utility to meet for acquiring new conservation.

• The following represents the PUD’s annual renewables target across time:3% effective January 1, 2012 ~24 aMW or ~210,000 MWh9% effective January 1, 2016 ~65 aMW or ~570,000 MWh

15% effective January 1, 2020 ~110 aMW or ~964,000 MWh

• For the 2012 through 2016 period, the PUD satisfied the 3% and 9% renewables targets with its existing

resources, incremental hydro, and share of BPA Tier 1 RECs allocated under our power contract.

• For the 2017 through 2019 period, the PUD used a combination of its existing resources, incremental

hydro, BPA Tier 1 RECs, surplus RECs we identified to “carry over” to the compliance year, along with a

small portion of unbundled REC purchases. This strategy is bridging the 9% to 15% increase for 2020.

• The Integrated Resource Planning process is where we evaluate how “best” to meet the PUD’s future

EIA compliance requirements.

7

22/212

Energy Independence

Act (EIA)

2019 EIA Renewables ComplianceTarget: 9% of PUD’s Total Retail Sales or 588,669 MWh

Met predominantly with PUD’s existing resources:

• Solar Express (2X) ~3%

• Woods Creek Incremental Hydro <1%

• Hampton Lumber Biomass (2X) ~6%

• Qualco Energy Biogas (2X) <1%

• Long-Term Wind Contracts >90%

• BPA Tier 1 RECs <1%

• Unbundled REC Purchases <1%

8

PUD’s EIA Renewables Compliance posted under “Power Supply” on snopud.com23/212

Integrated Resource Plan (IRP)

• Statute requires the utility’s comprehensive IRP analysis every four years, with progress report or update every two years.

• PUD’s IRP team kicked off 2021 IRP in January 2020 and is scheduled for Board briefings in August.

• IRP analyses must include:

Include a range of load forecasts for at least 10 years;

Assess commercially available conservation and energy efficiency resources and utility-scale generating technologies;

Consider oversupply and mitigation for resource additions;

Identify a short term action plan to implement long range IRP; and

Public hearing required to adopt the IRP.

9

PUD’s Integrated Resource Plan is posted under “Power Supply” on snopud.com24/212

Clean Energy Transformation Act

• During the 2019 Legislative Session, after months of stakeholder

engagement and negotiations, Snohomish PUD shifted from “concerned”

to “supportive” of this sweeping de-carbonization legislation.

• The Clean Energy Transformation Act (CETA) was signed into law by

Governor Jay Inslee on May 7, 2019.

• CETA commits Washington state to an electricity supply free of

greenhouse gas emissions by 2045.

• Many elements take effect in the 2021-2026 period.

10

25/212

Primary Components of CETA

1. Eliminates coal generation by 2025.

2. Establishes a “clean energy standard:”

100% carbon neutral by 2030

100% carbon free by 2045

3. Amends IRP statute, adding new requirements and components.

4. Amends Energy Independence Act, adding federal incremental hydro as

eligible and a new compliance path in 2030.

5. Sets targets and measures for energy assistance programs.

6. Requires a four-year Clean Energy Implementation Plan to demonstrate

progress toward clean energy standards.

11

26/212

Demonstrating Compliance with CETA

• Utilities must create a 4-year Clean Energy Implementation Plan (CEIP)

• Due by Jan 1, 2022, and every four years thereafter.

• Establish “interim targets” for meeting the 2030 carbon neutrality standard,

including targets for energy efficiency, demand response, and renewable

energy.

• CEIP must be:

• Informed by the utility’s IRP analysis.

• Include specific actions to be taking during the four year CEIP that

demonstrate progress towards meeting the 2030 and 2045 standards.

• Must incorporate the social cost of carbon into all aspects of planning.

12

27/212

CETA Additions to IRP Requirements

1. Assessment and ten-year forecast of generation and transmission availability

2. Determination of Resource Adequacy metrics

3. Forecast of Distributed Energy Resources (DERs)

4. Assessment of equity issues

5. Must include a specific societal cost of carbon as a cost adder

6. Replaces previous “short term action plan” with a new 10-year Clean Energy

Action Plan for implementing CETA standards

13

28/212

Rulemaking Context

1. What is rulemaking and why is it now happening for CETA?

2. What is the timeline for CETA rulemaking?

3. What is Snohomish PUD’s focus?

4. Workshops and PUD engagement

14

29/212

Rulemaking Update

• Earlier rulemaking workshops and PUD engagement

• Recent language from Commerce

• What is the process looking forward?

• Utilities & Transportation Commission’s (UTC’s) preliminary interpretation

15

30/212

Bridging to the Clean Energy Future

• PUD Staff working cross-departmentally to consider how to more

effectively communicate and message the good news about the PUD’s

carbon free portfolio.

• Goal: Bridge how we share and communicate today’s PUD portfolio

information via website postings into the new CETA world.

• Same portfolio information parsed in a different way

• Emphasize Snohomish PUD as a National Leader in carbon free energy

• Following slides are examples

16

31/212

PUD’s Fuel Mix History

2016-2019

17

ExamplePUD 4 yr

Rolling Avg

(in %)

2016 2017 2018 Prelim 2019 2016-2019

Biomass 0.10 0.08 0.5500 0.48 0.30

Biogas 0.1500 0.05 0.10

Coal 1.19 0.61 0.0000 0.00 0.45

Cogen 0.00 0.00 0.0000 0.00 0.00

Geothermal 0.00 0.00 0.0000 0.00 0.00

Hydro 87.27 89.79 79.5100 75.93 83.13

Landfill Gas 0.00 0.00 0.0000 0.00 0.00

Natural Gas 0.68 0.80 0.0100 0.00 0.37

Nuclear 10.71 8.65 9.8800 11.45 10.17

Other 0.03 0.04 0.0700 0.6400 0.20

Petroleum 0.02 0.03 0.0000 0.00 0.01

Solar 0.00 0.00 0.2300 0.25 0.12

Waste 0.00 0.00 0.0000 0.00 0.00

Wind 0.00 0.00 7.0500 6.50 3.39

Unspecified 2.5500 4.70 3.63

Total 100.00 100.00 100.0000 100.00 100.00

% Carbon Free 98.11 98.56 97.44 95.30 97.35

% GHG Emitting 1.89 1.44 2.56 4.70 2.65

Snohomish PUD's Historical Fuel Mix - Source:

Department of Commerce (in %)

32/212

PUD’s Carbon Free Report Card =

4 Year Average 97.4% Carbon Free

“A”

18

Example

0.00

20.00

40.00

60.00

80.00

100.00

20162017

2018Prelim 2019

2016-2019

98.1 98.6 97.495.3 97.4

% P

UD

En

erg

y P

ort

folio

% Carbon Free % GHG Emitting

33/212

Wrap Up & Future Briefings

• Team PUD fully engaged with regional partners on CETA and will provide

updates throughout rulemaking process.

• Other future briefings include:

Energy Services update on EIA Compliance for Conservation - July 21, 2020

2021 IRP Process underway with briefings planned - August 4 and 18, 2020

Update planned after July 31, 2020 release of Final Environmental Impact Statement on

Columbia River System Operations

Overview of Northwest Power Pool’s Resource Adequacy Program to be scheduled

19

34/212

Other Questions?

20

35/212

Electric Transportation Plan Update

July 7, 2020

Commission Meeting

Senior Project Manager Suzanne Frew

Last Presented: March 3, 2020

36/212

• Commission Presentation History

• Electric Transportation Plan

• Electrical Vehicle Purpose Statement

• Key Strategies

• Timeline/Roadmap

Agenda

237/212

Commission Presentation

History

• March 3, 2020 EV Update • Report of 2019 activities, key

strategies, and 2020 planned activities

• July 16, 2019 DER Workshop• Industry update, short-term plan,

introduction to road map, and SHB 1512

338/212

Electric Transportation Plan

SHB 1512 – Transportation Electrification passed in 2019 amends several RCWs and provides “legislative clarity” for programs and services related to transportation electrification.

• Adopt an Electric Transportation Plan by Commissioners

• Limits net cost to ratepayers

• Establishes the framework to offer:

• Investment in Infrastructure

• Incentives

• Outreach

439/212

Electric Vehicles Purpose

Statement

540/212

Key Strategies

Build Community through outreach and education about electric vehicles

Optimize the grid with transportation electrification

Enable customer adoptionof electric transportation

641/212

2020 and Beyond Roadmap

2020 Q1

•PUD EVSE Pool Cars

•DCFC Grant

•Engagement Manager –Shelley Pattison

2020 Q2

•New Public EV Website

•CEF3 Grant

•EV Logo and Collateral

2020 Q3

•Release Transportation Plan

•FleetCarma Pilot*

•Residential EVSE Incentives

2020 Q4

•V2G implementation

•DCFC Construction

•Community Engagement*

2021

•Commercial/MUD Incentives

•Ride and Drive*

•Point of Purchase

2022

•MUD, Workplace, Heavy Duty EVSE Program

•PUD Fleet med-duty vehicles

7* Covid Delay 42/212

DC Fast Charger Grant –AWARDED TO PUD!

• Awarded by the Dept of Ecology

• DC Fast Chargers can charge an electric vehicle in ~30 minutes

• PUD and City of Everett collaborated on design

• Sidewalk and parking spaces are City of Everett property

• Mayor Franklin provided a letter of support

• $240K Project Cost

• Full ask of $154K awarded

• $80K PUD funding

To be located at the PUD Electric Building on California St.

There are currently no DC Fast Chargers in the downtown

Everett area

843/212

Questions and Comments

944/212

Debt Management Opportunities

Update

Jim Herrling - Treasurer

1

July 7, 2020

45/212

Review

Discussed the following:

Generation System 2010A Bonds – Anchor

Tax Exempt Refunding

Electric System 2011 Bonds

Electric System 2012 Bonds

Taxable Advance Refundings

Target Savings

Wait/Do Nothing

Cash Defease

Possible New Money

Recommendations2

46/212

Generation System 2010A Bonds

There is currently $26,465,000 of 2010A GS bonds outstanding

The term of these bonds ends in 2024

Eligible to be refinanced with tax-exempt debt

Refinancing these bonds could achieve approximately $2.4 million or 9.1% net present value (NPV) savings at current interest rates*

Produces average annual debt service savings of $660,000 from 2021 - 2024

Sensitivity analysis:

3

* Based on market rates as of June 24, 2020

Current Interest

Rates

Current Rates

Increase 0.25%

Current Rates

Increase 0.50%

NPV Savings ($) $2.4 million $2.3 million $2.1 million

NPV Savings (%) 9.1% 8.6% 8.0%

47/212

Electric System 2011 Bonds Plan

There is currently $26,980,000 of 2011 ES bonds

outstanding

Advance Refund $23,700,000 in Callable Bonds that

mature in 2022 and after with Taxable Bonds

Target Savings Requirements:

Average annual debt service savings of $500,000

Currently $601,000 (from 2021 – 2024)

5% NPV Savings

Currently 5.70%


4


Current Rates

Decrease 0.25%

Current Interest

Rates*

Current Rates

Increase 0.25%


NPV Savings (%) 6.6% 5.7% 4.8%

48/212

Electric System 2012 Bonds Plan

There is currently $41,495,000 of 2012 ES bonds

outstanding

Advance Refund $25,350,000 in Callable Bonds that

mature in 2025 and after with Taxable Bonds

Target Savings Requirements:

Average annual debt service savings of $300,000

Currently $412,000 (from 2021 – 2028)

5% NPV Savings

Currently 8.4%


5


Current Rates

Decrease 0.25%

Current Interest

Rates

Current Rates

Increase 0.25%


NPV Savings (%) 10.0% 8.4% 6.7%

49/212

Recommendations

Refund the Generation 2010A Bonds

Currently refundable with tax exempt bonds

Average annual debt service savings of $660,000 through 2024

assuming current interest rates

Refund Electric System 2011 and 2012 Bonds

Advance refund with taxable bonds

If target $500,000 average annual savings is achieved for 2011’s

If target $300,000 average annual savings is achieved for 2012’s

If 5% Net Present Value savings is achieved

No new money bond issuance at this time

Continue to monitor capital program/cash needs going-forward

6

50/212

Next Steps Schedule

July

Prepare Preliminary Official Statements

Draft Supplemental Resolutions

Virtual meetings with Rating Agencies

July 21st

Approve Two Supplemental Resolutions

Approve the form of the Preliminary Official Statements

Approve the release of the Preliminary Official Statements

Approve the form of the Bond Purchase Agreements

Delegates authority to Treasurer or CFO to execute Bond

Purchase Agreement if savings targets are reached

August

Price Bonds (Tentatively August 4th) possibly sooner if

favorable conditions

Close Transaction (August 18th) 7

51/212

COMMENTS FROM THE PUBLIC

52/212


Meeting Date: July 7, 2020 Agenda Item: 3A

TITLE

Approval of the Minutes for the Regular Meeting of June 16, 2020, and the Special Meeting of

June 23, 2020

SUBMITTED FOR: Consent Agenda

Commission Melissa Collins 8616 Department Contact Extension

Date of Previous Briefing: Estimated Expenditure: Presentation Planned

ACTION REQUIRED:



Policy Decision

Statutory

SUMMARY STATEMENT:


Governance Process, Board Job Description: GP-3(4) … a non-delegable, statutorily assigned

Board duty as defined under RCW 54.12.090 - minutes.

List Attachments:

Preliminary Minutes

53/212

PRELIMINARY


Regular Meeting June 16, 2020

The Regular Meeting, held virtually, was convened by President Sidney Logan at 9:02 a.m. Those

attending were Rebecca Wolfe, Vice-President; Tanya Olson, Secretary; CEO/General Manager

John Haarlow; General Counsel Anne Spangler; Assistant General Managers Pam Baley, Guy Payne,

Brant Wood, and Jason Zyskowski; Chief Financial Officer Scott Jones; Chief Information Officer

Dean Galvez; other District staff; Commission & Executive Services Director Melissa Collins;

Assistant Clerk of the Board Allison Morrison; and Deputy Clerk of the Board Lela Wall.

* Items Taken Out of Order

**Non-Agenda Items

**Commissioner Logan read the following statement:

In accordance with the governor’s Proclamation 20-28.4, we are holding meetings remotely.

1. CEO/GENERAL MANAGER BRIEFING AND STUDY SESSION

A. Updates

1. Media. Media & Public Relations Liaison Aaron Swaney reported on District related news

and articles.

2. Other. There were no other updates.

B. Energy Risk Management Report – 1st Quarter 2020

Senior Manager Rates, Economics & Energy Risk Management Brian Booth and Senior Rate

Analyst Peter Dauenhauer provided an overview of the 1st quarter 2020 that included Supply,

Demand, Forecast Errors over Time, Market Prices, Peak Week Demand, and Forward Prices.

The Credit Limit Analysis, Financial Load Resource Imbalance, and Price Volatility tests had

no violations during the quarter.

The meeting recessed at 9:51 a.m. and reconvened at 9:57 a.m.

C. Water Supply Update

Short-Term Power Trader Mike Shapley provided a presentation on the Water Year 2020

(WY’20), which highlighted the PUD energy portfolio mix; WY’20 weather stats; Hydro

generation update: PUD owned resources and Bonneville Power Administration (BPA) Slice;

Load resource balance; and summary/highlights.

54/212

Regular Meeting 2 June 16, 2020

Commissioner Wolfe requested the data on the generation for each of the PUD owned hydro

projects or facilities, for the first and second quarters, to include how much each produced and

the financial value of each for those quarters. Mr. Shapley said that he would provide that

information.

D. Energy Efficiency Program Collaboration with Puget Sound Energy (PSE)

Senior Program Manager Energy Services Suzy Oversvee presented an overview of a proposed

Master Services Agreement (MSA) that would allow a collaboration between the District and

Puget Sound Energy (PSE), for the sale or purchase of energy savings acquired through energy

efficiency programs in shared service territory.

The next steps included seeking Board approval at the July 7, 2020, Commission meeting to

authorize a mutually beneficial MSA with PSE; Upon approval of the agreement, finalize and

implement the first Scope of Work; Negotiate a small business direct install program, that PSE

would administer; and Map future mutually beneficial scope of work.

In response to Board questions, General Counsel Anne Spangler and Assistant General

Manager Customer & Energy Services Pam Baley provided additional contract and scope of

work information, noting that the agreement would not obligate the District to participate.

E. Debt Management Opportunities

Senior Manager, Treasury, Risk Management & Supply Chain Jim Herrling recommended

opportunities to reduce debt service costs for the District and discussed other possible bond

market financing opportunities.

The next steps timeline, to allow for the process to refund the 2010A Generation Bonds, began

in June and would finish with the close of the bond sale transaction on August 18, 2020. A

more defined plan would be brought back to the Board at the July 7, 2020, Commission

meeting, and Commission approval to circulate the preliminary Official Statement, would be

obtained on July 21, 2020, in order to price the bonds by August 4, 2020.

EXECUTIVE SESSION

The Regular Meeting recessed at 11:39 a.m., and reconvened at 11:50 a.m., into Executive Session to

discuss current or potential litigation, under the terms set forth in the Open Public Meetings Act. It

was anticipated the Executive Session would last approximately 15 minutes, with no public

announcements. Those in attendance were Commissioners Sidney Logan, Rebecca Wolfe, and

Tanya Olson; CEO/General Manager John Haarlow; General Counsel Anne Spangler; other District

staff; Commission & Executive Services Director Melissa Collins; and Assistant Clerk of the Board

Allison Morrison. The Executive Session concluded at 12:00 p.m.

55/212


RECONVENE REGULAR MEETING

The Regular Meeting, held virtually, was reconvened by President Sidney Logan at 1:32 p.m. Those

attending were Rebecca Wolfe, Vice-President; Tanya Olson, Secretary; CEO/General Manager

John Haarlow; General Counsel Anne Spangler; Assistant General Managers Pam Baley, Guy Payne,

Brant Wood, and Jason Zyskowski Chief Information Officer Dean Galvez; Chief Financial Officer

Scott Jones; other District staff; members of the public; Commission & Executive Services Director

Melissa Collins; Assistant Clerk of the Board Allison Morrison; and Deputy Clerk of the Board

Lela Wall.

* Items Taken Out of Order

**Non-Agenda Items



Changes to the agenda were made as follows: Add Item 5E Settlement of a Claim under Items for

Individual Consideration.

2. COMMENTS FROM THE PUBLIC

*Steve Leombruno, Snohomish, inquired about an opt out option for the Smart Meters program.

CEO/General Manager John Haarlow responded that no action had been taken on implementing

the program and that it was still in due diligence. Mr. Haarlow believed that an opt out would be an

option, though, if the program was adopted.

3. CONSENT AGENDA

A. Approval of Minutes for the Regular Meeting of June 2, 2020

B. Bid Awards, Professional Services Contracts and Amendments

Public Works Contract Award Recommendations Over $25,000:

Request for Proposal No. 20-1040-KS with Columbia Helicopters, Inc.

Formal Bid Award Recommendations $120,000 and Over:

None

Professional Services Contract Award Recommendations $200,000 and Over:

None

Miscellaneous Contract Award Recommendations $200,000 and Over:

None

Cooperative Purchase Recommendations:

Contracts:

None

Amendments:

56/212


None

Sole Source Purchase Recommendations;

None

Emergency Declarations, Purchases and Public Works Contracts:

None

Purchases Involving Special Facilities or Market Condition Recommendations:

None

Formal Bid and Contract Amendments:

Professional Services Contract No. CW2230134 with Nash Consulting, Inc.

Contract Acceptance Recommendations:

Public Works Contract No. CW2237372 with McClure and Sons, Inc.

C. Consideration of Certification/Ratification and Approval of District Checks and Vouchers

D. Consideration of a Resolution Adopting a Restated Adoption Agreement and Addendum to the

Public Utility District No. 1 of Snohomish County 401(k) Savings Plan and Trust

A motion unanimously passed approving Agenda Items 3A – Approval of Minutes for the

Regular Meeting of June 2, 2020; 3B – Bid Awards, Professional Services Contracts and

Amendments, 3C – Certification/Ratification and Approval of District Checks and Vouchers,

and 3D – Approving Resolution No. 5961 adopting a restated Adoption Agreement and

Addendum to the Public Utility District No. 1 of Snohomish County 401(k) Savings Plan and

Trust.

4. PUBLIC HEARING AND ACTION

A. Disposal of Surplus Property – 3rd Quarter 2020

President Logan opened the public hearing.

There being no questions or comments from the public, the public hearing was closed.

Based on staff’s recommendation that the items were no longer necessary or useful to the

District, a motion unanimously passed approving those items listed on Exhibits A and B of the

Surplus Property Recommendation Report be declared surplus and be sold for high bid or

disposed of according to policy in the 3rd Quarter of 2020.

5. ITEMS FOR INDIVIDUAL CONSIDERATION

A. Consideration of a Resolution Approving an Electric Transportation Plan for the District

It was moved to approve a Resolution approving an Electric Transportation Plan for the

District.

57/212


Commissioner Wolfe moved to table the Resolution until the next regular Commission

meeting, for staff to come back with a response to specific comments that were proposed, and

questions asked by Commissioner Wolfe. Motion passed to table the resolution.

Commissioner Wolfe: Aye; Commissioner Olson: Aye; Commissioner Logan: Nay.

B. Consideration of a Resolution Approving the Submittal of an Application and Authorization for

a Grant from the Washington State Recreation and Conservation Office for the Sultan River

Floodplain Activation Design Project

A motion unanimously passed approving Resolution No. 5963 approving the submittal of an

application and authorization for a grant from the Washington State Recreation and

Conservation Office for the Sultan River Floodplain Activation Design Project.

C. Consideration of a Resolution Amending the District’s Customer Service Regulations for the

Electric Service

An amended coversheet, amended project summary, and amended Resolution page one was

provided at places, by reference made a part of the packet.

A motion unanimously passed approving Resolution No. 5964 amending the District’s

Customer Service Regulations for the Electric Service, as amended.

D. Consideration of a Resolution Authorizing the CEO/General Manager to Execute Amendment

No. 1 to Everett and JOA Participants Water Supply Contract

A motion unanimously passed approving Resolution No. 5965 authorizing the CEO/General

Manager to execute Amendment No. 1 to Everett and JOA Participants Water Supply Contract.

**E. Settlement of a Claim

A motion unanimously passed to approve the proposed settlement of the lawsuit of State Farm

Fire & Casualty Co. v. Public Utility District No. 1 of Snohomish County in accordance with

the terms and conditions set forth in the confidential memorandum from legal counsel for the

District to the CEO/General Manager, dated June 4, 2020.”

6. CEO/GENERAL MANAGER REPORT

CEO/General Manager John Haarlow reported on various District department highlights, and

Assistant General Manager Customer & Energy Services Pam Baley contributed information on

customer outreach, regarding bill variance from estimated billing, and provided customer support

plan statistics. Mr. Haarlow also spoke about cybersecurity assessment work being done by the

Information Technology Services (ITS) group with the National Guard.

Mr. Haarlow made a statement about diversity, equity, and inclusion (DEI), and discussed the

opportunity and responsibility for the District to change systematic racism in our country.

58/212


Mr. Haarlow mentioned that a way to take action, regarding DEI, was to reach out to identify

consultants who would be able to help the District create a strategic plan that would be brought

back to the Board at a future meeting.

7. COMMISSION BUSINESS

A. Commission Reports

Commissioner Wolfe and Commissioner Logan attended the Public Power Council (PPC) and

the Pacific Northwest Utilities Conference Committee (PNUCC) virtual meetings and the

American Public Power Association (APPA) virtual summit

B. Commissioner Event Calendar

There were no changes to the Commissioner Event Calendar.

C. 2020 Budget, Forecast, and Major Project Status Report

Financial impacts due to the current pandemic were discussed.

8. GOVERANCE PLANNING

A. Governance Planning Calendar

There were no changes to the Governance Planning Calendar.

59/212


ADJOURNMENT

There being no further business or discussion to come before the Board, the Regular Meeting of

June 16, 2020, adjourned at 2:54 p.m. An audio file of the meeting is on file in the Commission Office

and available for review.

Approved this 7th day of July, 2020.

Secretary

President

Vice President

60/212

PREMLIMINARY


Special Meeting June 23, 2020

The Special Meeting was convened virtually by President Sid Logan at 8:00 a.m. Those attending

were Rebecca Wolfe, Vice President; Tanya Olson, Secretary; CEO/General Manager

John Haarlow; General Counsel Anne Spangler; Assistant General Managers Pam Baley,

Guy Payne, Brant Wood and Jason Zyskowski; Chief Financial Officer Scott Jones; Chief

Information Officer Dean Galvez; other District staff; members of the public;

Commission & Executive Services Director Melissa Collins; and Assistant Clerk of the Board

Allison Morrison.



CONNECT UP WORKSHOP

Program Director Mark Flury provided opening comments regarding the workshop, which was a

study session on advanced metering infrastructure (AMI).

A Connect Up Program Planning Phase PowerPoint was provided at places, by reference made a

part of the packet and was presented by Mr. Flury along with his cross-functional team.

The meeting recessed at 9:55 a.m. and reconvened at 10:10 a.m.

The workshop continued with staff’s recommended Business Case, which included a Policy

discussion.

Assistant General Manger Water Utility Brant Wood briefed the Board on how AMI relates to the

Water Utility customers and said that a separate Business Case would be presented on a future date.

The meeting recessed at 12:13 p.m. and reconvened at 1:21 p.m.

Health & Safety, Cybersecurity, and Data Privacy portions of the program planning phase were

discussed, followed by the Communication and Engagement Strategy. The customer

communication plan included a bill stuffer and E-newsletter directing customers to the District’s

webpage and referencing metering infrastructure; public comment opportunities on the District’s

webpage and at the July 21, 2020, and August 4, 2020, Commission meetings; and Richard Tell to

present at the July 21, 2020, Commission meeting.

The meeting recessed at 3:12 p.m. and reconvened at 3:25 p.m.

The Post Deployment Roadmap was presented, followed by closing statements.

61/212

Special Meeting 2 June 23, 2020

A discussion ensued about the direction the Board requested of staff moving forward. Mr. Flury

advised the board of next steps, which included a presentation at the July 21, 2020, Commission

meeting and a resolution for consideration at the August 4, 2020, Commission meeting.

ADJOURNMENT

There being no further discussion, the Special Meeting of June 23, 2020, adjourned at 4:58 p.m.

Approved this 7th day of July 2020.

Secretary

President

Vice President

62/212


Meeting Date: July 7, 2020 Agenda Item: 3B

TITLE

CEO/General Manager's Report of Public Works Contract Award Recommendations; Formal Bid

Award Recommendations; Professional Services Contract Award Recommendations;

Miscellaneous Contract Award Recommendations; Cooperative Purchase Recommendations; Sole

Source Purchase Recommendations; Emergency Declarations, Purchases and Public Works

Contracts; Purchases Involving Special Facilities or Market Condition Recommendations; Formal

Bid and Contract Amendments; and Contract Acceptance Recommendations


Contracts/Purchasing Clark Langstraat 5539

Department Contact Extension

Date of Previous Briefing:

Estimated Expenditure: Presentation Planned

ACTION REQUIRED:



Policy Decision

Statutory

SUMMARY STATEMENT:


Governance Process, Board Job Description, GP-3(4) … non-delegable, statutorily assigned

Board duty – Contracts and Purchasing.

The CEO/General Manager's Report of Public Works Contract Award Recommendations Over

$25,000; Formal Bid Award Recommendations $120,000 and Over; Professional Services

Contract Award Recommendations $200,000 and Over; Miscellaneous Contract Award

Recommendations $200,000 and Over; Cooperative Purchase Recommendations; Sole Source

Purchase Recommendations; Emergency Declarations, Purchases and Public Works Contracts;

Purchases Involving Special Facilities or Market Condition Recommendations; Formal Bid and

Contract Amendments; and Contract Acceptance Recommendations contains the following

sections:

Public Works Contract Award Recommendations Over $25,000 (Pages 1-3);

Request for Proposal No. 20-1041-KS with Pellco Construction, Inc.

Request for Proposal No. 20-1042-SC with Titan Electric, Inc. dba Titan Electric

63/212

Request for Proposal No. 20-1043-BI with Kemp West, Inc.

Formal Bid Award Recommendations $120,000 and Over;

None

Professional Services Contract Award Recommendations $200,000 and Over;

None

Miscellaneous Contract Award Recommendations $200,000 and Over (Page 4);

Miscellaneous No. CW2241038 with K & D Services, Inc.

Cooperative Purchase Recommendations;

Contracts:

None

Amendments:

None

Sole Source Purchase Recommendations;

None

Emergency Declarations, Purchases and Public Works Contracts;

None

Purchases Involving Special Facilities or Market Condition Recommendations;

None

Formal Bid and Contract Amendments;

None

Contract Acceptance Recommendations;

None

List Attachments:

July 7, 2020 Report

64/212

Public Works Contract Award Recommendation(s) Over $25,000

July 7, 2020 __________________________________________________________________________________________

RFP No. 20-1041-KS

PWC – Twin City Substation Site

Construction

This contract consists of constructing a new double-bank electrical distribution substation on District property

located at 7400 Pioneer Highway, Stanwood, in Snohomish County, WA 98292. Construction includes, but is

not limited to: Clearing, grubbing and stripping; temporary erosion and sedimentation controls; earthwork;

concrete block retaining wall; storm drainage conveyance systems including infiltration trench and pond

facilities; cast-in-place concrete including slab, spread footing and drilled pier foundations; a transformer oil

spill containment system; electrical conduits and vaults; a substation grounding system; an access control

fence system and substation security fence system including gates and fence curbing; substation yard crushed

rock surfacing; an access road with a combination of asphalt pavement and crushed rock surfacing; and

vegetation restoration including reuse of native topsoil, final grading, and hydroseeding.

Contractor Subtotal (w/o tax)

Award To Pellco Construction, Inc. $1,898,950.00

Interwest Construction, Inc. $2,033,000.00

Razz Construction, Inc. $2,138,500.00

New West Development, Inc. $2,351,800.00

Faber Construction Company $2,394,677.00

Granite Construction Company $2,608,994.00

R-2 Contractors, Inc. $3,680,832.10

SRV Construction $3,834,272.50

Summary Statement: Staff recommends award to Pellco Construction, Inc. in the amount $1,898,950.00,

plus tax.

The bid submitted by SRV Construction was in the amount of $3,836,272.50 and

contained a mathematical extension error totaling ($2,000.00). After correcting this

error, Pellco remains the apparent low bidder.

No. of Bids Solicited: 85

No. of Bids Received: 8

Project Leader & Phone No.: Jacob Dahl Ext. 5277

Estimate: $2,338,500.00

65/212


July 7, 2020

__________________________________________________________________________________________

RFP No. 20-1042-SC

Twin City to North Stanwood

115kV Re-Conductor

The project will provide all labor, equipment and material to rebuild approximately 1.25 miles of 115kV line and

add 12kV double circuit distribution under-build between the future Twin City Substation site and North

Stanwood substation, in the city of Stanwood, in Snohomish County, Washington.

Contractor Subtotal (w/o tax)

Award To Titan Electric, Inc. dba Titan Electric

Contracting Inc.

$499,797.67

Michels Power, a division of Michels Corp. $570,079.90

Sturgeon Electric Company, Inc. $655,955.94

Potelco, Inc. $719,263.00

Magnum Power LLC $868,895.00

Wilson Construction Company $1,156,984.02

Summary Statement: Staff recommends award to Titan Electric, Inc. dba Titan Electric Contracting, Inc.,

the low evaluated bidder, in the amount of $499,797.67 plus tax.

Michels Power’s proposal contained a math extension error; however, this did not

change their total bid amount. After correcting this error, Titan Electric Inc. remains

the apparent low bidder.

The proposal submitted by Wilson Construction Company was incomplete and staff

determined the proposal to be non-responsive.



Project Leader & Phone No.: Brian Li Ext. 5161

Estimate: $995,000.00

66/212


July 7, 2020 __________________________________________________________________________________________

RFP No. 20-1043-BI

North Stanwood & Sultan Project –

Circuits 12-999 & 115-150 –

Distribution and Transmission

Line Clearance

This contract work consists of providing all labor, materials and equipment necessary to trim, cut, treat,

remove, clear, and dispose of trees and brush, as well as perform application of herbicides under and along

approximately 60 pole miles of the District’s Distribution & Transmission System. The location of the work

to be performed commences at North Stanwood Substation and goes North on Pioneer Hwy to just North of

92nd Avenue NW. The line goes West on 300th Street NW from Pioneer Hwy to 3rd Avenue NE. From 300th

Street NW the line goes North on 76th Avenue NW to 332nd Street NW, North on 68th Avenue NW to 332nd

Street NW and South on 68th Avenue W to 285th Street NW. The line goes West from 68th Avenue West on

324th Street NW to English Grade Road then goes South on Brandstrom Road from 324th Street NW to 300th

Street NW. The Transmission line comes from the Jackson Dam and goes South on the Sultan Basin Road to

Hwy 2. Work is located in the vicinities of Stanwood & Sultan in Snohomish County, Washington.

Contractor Subtotal (tax n/a)

Award To Kemp West, Inc. $694,600.00

Davey Tree Surgery Company $758,340.00

Summary Statement: Staff recommends award to Kemp West, Inc., the low evaluated bidder, in the

amount of $694,600.00, tax n/a.



Project Leader & Phone No.: Randy Gusa X5608

Estimate: $660,000.00

67/212

Miscellaneous Contract Award Recommendation(s) $200,000 And Over

July 7, 2020 __________________________________________________________________________________________

MISC. CW2241038

Coordination for Rolling Slowdowns

On I-5 in Lynnwood

This contract provides personnel, vehicles, equipment, and coordination with Washington State Patrol to

implement the WSDOT approved traffic control plan for a rolling slowdown on I-5 in Lynnwood. The District

anticipates two separate slowdowns will be required between mid-August and the end of September. This

project is in support of the Sound Transit Light Rail Project.

Vendor Subtotal (w/o tax)

Award To K & D Services, Inc. $226,499.76

Summary Statement: Staff recommends award to K & D Services, Inc. in the amount of $226,499.76,

plus tax.



Project Leader & Phone No.: Alex Chorey Ext. 5115

Estimate: $250,000.00

68/212


Meeting Date: July 7, 2020 Agenda Item: 3C

TITLE:

Consideration of Certification/Ratification and Approval of District Checks and Vouchers


General Accounting &Financial Systems Julia Anderson 8027 Department Contact Extension


ACTION REQUIRED:



Policy Decision

Statutory

SUMMARY STATEMENT:


Governance Process, Board Job Description: GP-3(4)(B)(2)a non-delegable, statutorily

assigned Board duty to approve vouchers for all warrants issued.

The attached District checks and vouchers are submitted for the Board's certification, ratification

and approval.

List Attachments:

Voucher Listing

69/212

70/212

71/212

72/212

73/212

74/212

75/212

76/212

77/212

78/212

79/212

80/212

81/212

82/212

83/212

84/212

85/212

86/212

87/212

88/212

89/212

90/212

91/212

92/212

93/212

94/212

95/212

96/212

97/212

98/212

99/212

100/212

101/212

102/212

103/212

104/212

105/212

106/212

107/212

108/212

109/212

110/212

111/212

112/212

113/212

114/212

115/212

116/212

117/212

118/212

119/212

120/212

121/212

122/212

123/212

124/212

125/212

126/212

127/212

128/212

129/212

130/212

131/212

132/212



TITLE:

Consideration of a Motion Accepting the Asset Protection Monitoring Report

SUBMITTED FOR: Items for Individual Consideration

Finance Division/Risk Management Scott Jones/Jim Herrling 8356/8303


Date of Previous Briefing: July 9, 2019


ACTION REQUIRED:



Policy Decision

Statutory

SUMMARY STATEMENT:


Executive Limitation 7 – Asset Protection

List Attachments:

Internal Monitoring Report – Asset Protection (EL-7)

133/212

134/

212

135/

212

136/

212

137/

212

138/

212

139/

212



TITLE:

Consideration of a Resolution Approving an Electric Transportation Plan for the District


Customer and Energy Services Suzanne Frew 1733


Date of Previous Briefing: March 3, 2020


ACTION REQUIRED:



Policy Decision

Statutory

SUMMARY STATEMENT:


Governance Process, Board Job Description: GP-3 non-delegable, statutorily assigned Board

duty

Staff has prepared a high-level strategy and plan for the District’s investment in and incentives for

increasing electric transportation. As the District envisions the utility of the future with greater

integration of distributed energy resources, changing needs of our customers, and growing

decarbonization policies, electric transportation can play a pivotal role in providing a flexible and

manageable load. Partnerships with our customers will be essential to maximize the benefits for

them and the District. If not managed, increasing electric transportation could exacerbate rather

than mitigate power supply and grid management challenges.

Background

As the purveyor of electricity within its service territory, the District has always had the authority

to build infrastructure for the purpose of supporting charging for electric vehicles. Prior to 2019,

it was less clear whether public utility districts had the authority to provide advertising and

outreach and monetary incentives as well as other types of infrastructure to customers to incent

the private development of charging facilities.

140/212

In 2019 the legislature clarified the authority of electric utilities, including public utility districts,

to invest in infrastructure and provide outreach and incentives for the electrification of

transportation, with a requirement that the utility’s governing board adopt a formal plan, and that

the utility show that such programs benefit the ratepayers, or at a minimum, do not increase net

costs to ratepayers overall by more than 0.25%. RCW 54.16.430.

The Legislature also recognized that the benefits of transportation electrification programs could

be different for each utility, depending upon its circumstances. Some of the benefits cited by the

legislature include: optimizing the use of electric grid infrastructure, improving the management

of electric loads, better managing the integration of variable renewable energy resources, and cost-

effective energy efficiency, through more efficient use of energy resources, and more efficient use

of the electric delivery system.

The Electric Transportation Plan

The Electric Transportation Plan is a high-level set of strategies and actions designed to overcome

barriers, align with District strategic priorities, such as affordability, support customers, and

optimize the electrical grid. The Plan was developed through a collaborative effort across the

District.

The Plan describes the three key strategies and sets of actions proposed, the types of benefits that

can be realized under the Plan, and the cost/benefit analyses performed by Energy+Environmental

Economics (E3) that quantify the benefits of increasing numbers of electric vehicles to the utility’s

customers.

The Plan sets out its actions at a fairly high-level. The individual programs, pilots, and actions

will be consistent with the framework of the plan, including its economic cost/benefit analysis,

thus giving staff the ability to design the actions that meet current and developing needs.

The District’s progress under the Plan will be shared and discussed with the Board periodically,

and any significant alterations to the Plan based on changes in the economics of transportation

electrification, electric vehicle industry, Board input, and/or the regulatory environment will be

presented to the Board for approval. Similar to the energy efficiency program planning process,

the District’s annual budget will reflect the electric transportation programs for each year.

List Attachments:

Resolution

Exhibit A

Red-lined June 16, 2020, Cover Sheet, Resolution, and Transportation Plan

141/212

RESOLUTION NO. _____

A RESOLUTION Approving an Electric Transportation Plan for the

District

WHEREAS, in 2019, the Washington state legislature clarified the authority of public

utility districts and other electric utilities to invest in infrastructure and to provide outreach and

incentives for the electrification of transportation, provided that the programs and plans do not

increase net costs to ratepayers overall by more than 0.25%; and

WHEREAS, the legislature recognized that the benefits of electric transportation

programs could be different for each utility, depending upon its circumstances, including but

not limited to: optimizing the use of electric grid infrastructure; improving the management of

electric loads; better managing the integration of variable renewable energy resources; cost-

effective energy efficiency through more efficient use of energy resources; and more efficient

use of the electric delivery system; and

WHEREAS, RCW 54.16.430 requires the utility’s governing board to adopt a plan for

the electrification of transportation that considers the benefits for the utility and its customers,

to include some or all of the following: (a) The applicability of multiple options for

electrification of transportation across all customer classes; (b) the impact of electrification on

the district's load, and whether demand response or other load management opportunities,

including direct load control and dynamic pricing, are operationally appropriate; (c) system

reliability and distribution system efficiencies; (d) interoperability concerns, including the

interoperability of hardware and software systems in electrification of transportation proposals;

and (e) overall customer experience; and

WHEREAS, Staff of Public Utility District No. 1 of Snohomish County (the

“District”), through a collaborative team effort that included departments across the District,

142/212

Resolution No. _____ - 2 -

developed an Electric Transportation Plan (the “EV Plan”) that describes a high level set of

strategies and actions designed to overcome barriers to adoption of electric vehicles, support

customers, and optimize the electrical grid, and describes the types of benefits that can be

realized under the Plan; and

WHEREAS, the EV Plan sets the key strategies and actions at a fairly high-level, and

authorizes staff to design individual actions, programs, pilots, and other activities to meet

current and developing needs, provided that such individual actions, programs, pilots, and

other activities are consistent with the EV Plan and authorized within the annual budget

approved for the electric transportation programs for the year; and

WHEREAS, Staff will share and discuss the District’s progress under the EV Plan to

the Board on a periodic basis, and will propose amendments or changes to the EV Plan if there

are significant Board concerns, changes in the economics of transportation electrification, the

electric vehicle industry and/or the regulatory environment; and

WHEREAS, Staff recommends approval and adoption of the EV Plan as being in the

best interest of the District and its customers.

NOW, THEREFORE, BE IT RESOLVED by the Commission of Public Utility District

No. 1 of Snohomish County, Washington, as follows:

1. The Electric Transportation Plan (the “EV Plan”), attached hereto as Exhibit A is

hereby approved and adopted.

2. The District may: (a) make financial payments to customers, developers, owners,

vendors or other entities as incentives; (b) implement programs, pilot programs,

activities, and undertake actions that further the goals of the EV Plan; (c) construct or

authorize construction of electric vehicle charging infrastructure or other work

143/212


necessary for such charging infrastructure; and (d) conduct outreach, education and

advertising activities to further the goals of EV Plan (collectively referred to as the EV

activities).

3. The following limitations apply to the EV activities authorized under Paragraph 2 of

this Resolution: (a) the EV activities must be consistent with the EV Plan, including its

economic cost/benefit analyses; (b) the expenditures for the EV activities must be

authorized in the District’s annual budget; and (c) and the expenditures for the EV

activities do not increase net costs to ratepayers overall by more than 0.25% in any

given year.

4. The CEO/General Manager or his designee shall develop and adopt program plans,

rules, and/or procedures to the extent necessary to implement this Resolution and the

EV Plan, that will include documentation with the standards set forth herein.

PASSED AND APPROVED this 7th day of July, 2020.

President

Vice-President

Secretary

144/212

Electric Transportation PlanJuly 7, 2020

Partnering with our

community to ensure that

customers have the

knowledge they need and

the support they require

while optimizing the grid

for growing electric

transportation needs now

and into the future.

Resolution No. _____ Exhibit A Page No. 1 of 16

145/212

1

Table of Contents Executive Summary ......................................................................................................................... 2

Background and Policy .................................................................................................................... 2

Market, Technology and Barriers ................................................................................................ 2

Market ..................................................................................................................................... 3

Technology............................................................................................................................... 4

Barriers .................................................................................................................................... 4

Legislation ................................................................................................................................... 5

Value of Electric Transportation ..................................................................................................... 6

Benefits........................................................................................................................................ 7

E3 Cost/Benefit Analysis.............................................................................................................. 7

Snohomish PUD’s Role Supporting Electric Transportation ........................................................... 9

Key Strategies and Actions .......................................................................................................... 9

Community ............................................................................................................................ 11

Grid ........................................................................................................................................ 12

Adoption ................................................................................................................................ 13

Moving Forward ............................................................................................................................ 15


146/212

2

Executive Summary As the District envisions the utility of the future with greater integration of distributed energy

resources, changing needs of our customers and growing decarbonization policies, electric

transportation can play a pivotal role in providing a flexible and manageable load. Partnerships

with our customers will be essential to maximize the benefits for them and the District. If not

well managed, increasing electric transportation could exacerbate rather than mitigate power

supply and grid management challenges.

Electric transportation efforts to date have built on three key strategies. This plan reaffirms

those strategies and expands actions developed to overcome barriers, support customers, align

with the District’s strategic priorities, such as affordability, and optimize the electrical grid. The

strategies, developed by a collaborative team from departments across the District and

described later in the document, provide guidance for District actions and policy.

This inaugural Electric Transportation Plan addresses the requirements of SHB 1512, current

business conditions and planned actions. An accompanying resolution is submitted as part of

the approval process. District staff are requesting approval of both the resolution and Electric

Transportation Plan.

Background and Policy The primary purpose of this plan is to outline key strategies for investing in infrastructure for

electric transportation while meeting the legislative requirement for the adoption of an

electrification of transportation plan by the District’s Commissioners before offering incentives.

The District’s plans for its own fleet are not within the scope of this plan.

Market, Technology and Barriers While there are several factors contributing to the challenge of predicting future electric

transportation trends as technology rapidly advances, there is a consensus that electric vehicle

adoption will trend upwards. The timing and size of the upward trend is less certain, especially

with current conditions impacting vehicle production, fuel cost and unemployment.

Adoption rates are being driven by legislative actions, commitments from vehicle and

equipment manufacturers, and consumer demand on a world-wide scale. The electric vehicle

industry has seen steep increases in adoption rates from the advancement of technology and

new entrants such as Tesla which has captured a majority of the market.


147/212

3

Market Washington State is third in the nation for electric vehicle adoption1 and Snohomish County is

second in Washington State for the number of registered electric vehicles2. Recently,

Snohomish County was identified as one of the top fifteen counties in the nation for electric

vehicle (EV) adoption, at 4.4%, while the national average is 1.9%.3 This presents an

opportunity for the District to support our customers investing in electric transportation and to

shape the charging load to optimize the electrical grid, while keeping rates affordable for our

customers.

The recent legislative adoption of a zero emissions vehicle (ZEV) program, city decarbonization

initiatives, and investments from all vehicle manufacturers are some of the influences

contributing to the upward trend in electric transportation. The impact of these influences has

now extended beyond the light duty vehicle market to adoption of medium duty trucks and

vans for delivery fleets.

Electric Vehicle Market Overview

Sources: www.data.wa.gov , www.epri.com and www.plugshare.com

1 EV Market Share by State 2018 retrieved from www.evadoption.com 2 WA Department of Licensing data for Snohomish County and Camano Island, June 4, 2020 retrieved from www. Data.wa.gov/demographics/electrical-vehicles-by county 3 Electric Power Research Institute 2020 Electric Transportation Update (March 2020) retrieved from www.epri.com

WA 3rd in nation for

EV adoption

6,215 EVs in service territory

EVs will be 55% of car

sales in 2040

130 EV models in

2023

116 public charging locations


148/212

4

Technology The electric transportation industry is rapidly advancing both vehicle and equipment

technology with consideration for consumer demands and specialized commercial applications.

In response, the electric vehicle manufacturing industry is establishing unprecedented

partnerships between vehicle manufacturers to reduce investment costs and speed the time to

market. One example of this is General Motors’s EV platform and battery integrated into

Honda’s new electric vehicle designs.

The benefit of partnerships between vehicle manufacturers should be realized in 2023 when

over 130 models are expected to be available and half of those vehicles are expected to be

SUVs and cross overs which currently account for a majority of the car sales. Additionally, the

partnerships have extended to commercial vehicles with input from delivery companies on fleet

vehicle design with the Amazon and Rivian partnership. Real world pilot projects include

collaboration with utilities on vehicle and grid interaction as delivery routes are refined for

performance, and charge management strategies are developed to minimize operational costs.

With increasing electrical capacity needs for charging infrastructure, best practices are being

established by utilities nation-wide to achieve diversity factors for vehicle charging to minimize

the impact on utility infrastructure. While standards for light duty chargers have been

established, there is an urgency to develop heavy-duty bus charging standards as this market

continues to grow and has potential for vehicle-to-grid value.

Barriers The three greatest barriers to electric vehicle adoption are awareness of electric vehicles and

charging technology, availability of charging and initial first cost of electric vehicles.

Customer Awareness

Education and awareness continue to be the largest barrier to electric vehicle adoption with

both electric vehicles and charger technology widely unknown and still thought of as emerging.

For consumers, the challenges of finding a reliable source of information and interacting with

knowledgeable sales staff at car dealerships remain. With an increase in availability and

adoption of buses and delivery trucks, fleet managers are sharing and collecting information

from small scale pilots throughout the nation.

Charging Infrastructure

The availability of charging is challenging for all EV owners and especially challenging for multi-

unit dwelling (MUD) residents and renters or homeowners without a garage since a majority of

vehicle charging occurs when the vehicle is parked at the EV owner’s residence. For those EV

owners renting, using nondedicated parking or operating as part of a transportation network

company (TNC – Uber/Lyft), public or workplace charging is essential. Access to charging needs

to be equitably developed for all customers for wide scale EV adoption to occur.


149/212

5

For commercial customers, the barrier to charging is charger standards and costs. While

several standards for charging have been established for light duty vehicles, charging standards

for heavy duty vehicles and buses are under development and most charging infrastructure is

proprietary. Utilities can play a role to support the build out of charging infrastructure and

inform managed charging strategies for customer fleets to reduce high demand charges.

Electric Vehicle Cost

By 2025, it is predicted that the cost of a new electric vehicle will reach parity with internal

combustion engine (ICE) vehicles. However, due to the past and current volume of electrical

vehicle leases, the secondary market is already at parity or close to parity. Incentives and tax

breaks at the federal, state and manufacturer level can support the adoption of both new and

used electric vehicles. Further support for electric transportation from utilities can include

incentives for charging infrastructure with additional value to all ratepayers from managed

charging.

The recent zero emission vehicle mandate in Washington is expected to bring a wider variety of

electric vehicles to the market if it follows national trends. The mandate extends to medium-

duty trucks as well even though adoption has been limited by viable electric vehicle

alternatives. Buses are the one exception and their adoption rates have been increasing

throughout the world. The full economic benefit has yet to be realized with vehicle-to-grid

technology still in the early stages of development with early indications of significant potential.

Cost is still a barrier and grant funding has subsidized most of the electric buses in the United

States.

Legislation SHB 1512, as passed by the Legislature and signed into law by the Governor in 2019 (codified as

RCW 54.16.430), clarified the authority of consumer owned electric utilities to invest in

infrastructure and provide outreach about and incentives for electric transportation, with a

requirement that the utility demonstrate that such programs benefit the ratepayers, or at a

minimum, do not increase net costs to ratepayers overall by more than 0.25%.

The Legislature also recognized that the benefits of electric transportation programs could be

different for each utility, depending upon its circumstances. Some of the benefits cited by the

legislature include optimizing the use of electric grid infrastructure, improving the management

of electric loads, better managing the integration of variable renewable energy resources, and

cost-effective energy efficiency through more efficient use of energy resources and more

efficient use of the electric delivery system.

The legislature noted that utilities could consider a variety of these types of benefits in

establishing their electrification of transportation plans, including some or all of the following:

(a) The applicability of multiple options for electrification of transportation across all customer

classes;


150/212

6

(b) the impact of electrification on the district's load, and whether demand response or other

load management opportunities, including direct load control and dynamic pricing, are

operationally appropriate;

(c) system reliability and distribution system efficiencies;

(d) interoperability concerns, including the interoperability of hardware and software systems

in electrification of transportation proposals; and

(e) overall customer experience.

The key strategies and accompanying actions, as described further in the document, support

many of the benefits listed above while providing customer choice and affordable rates.

In the 2019 legislative session, several other bills passed which support the electrification of

transportation and the grid resources required for charging infrastructure. Below is a short

summary of the bills passed in the 2019 legislative session.

• HB 2042, Advancing Green Transportation Adoption, revives some of the tax breaks for

purchasing electric vehicles, and limits the benefit to new vehicles under $45,000 and

used vehicles under $30,000.

• SB 5116, Clean Energy Transformation Act, requires Washington utilities to provide

power free of greenhouse gases by 2045. The bill authorizes the use of utility

infrastructure and systems to maximize the benefits of electric vehicle charging such as

managed charging and vehicle to grid (V2G) capability as alternative compliance options

in the early compliance periods.

• HB 1257, Concerning Energy Efficiency, requires all new building construction projects

with on-site parking to install the electrical wiring to accommodate level 2 vehicle

charging equivalent to the greater of one space or ten percent of the spaces.

In the 2020 legislative session, SB 5811 continued to reinforce Washington’s commitment to

transportation electrification by adopting California’s vehicle emissions standards, including

California’s zero emissions vehicle program. With the passage of this bill, Washington State

became the 12th Zero Emissions Vehicle (ZEV) state.

Value of Electric Transportation Electric transportation provides financial benefits to both the ratepayers and consumers with

additional positive societal impacts; air quality being the most measurable. Widely

documented benefits from electric transportation are noted below.


151/212

7

Benefits In Washington state, transportation contributes 47%4 of greenhouse gas emissions; the highest

percentage of the four northwest states. Snohomish PUD is uniquely positioned to support

electric transportation with 98% carbon free power resulting in significant reductions in

emissions.

By expediting the transition to electric transportation, both on and off road, the region gains

improvements to air quality and public health. Tailpipe emissions are eliminated with an

electric vehicle and significant greenhouse gas emission reductions can be attributed to

Snohomish PUD’s low carbon power when used for charging.

Electrical vehicle operating and maintenance costs are lower than those for internal

combustion engine (ICE) vehicles. Lower fuel cost and reduced maintenance on electric

vehicles lowers the total cost of ownership. Additional environmental benefits are gained from

fewer mechanical systems with fluids that may leak or need to be disposed of.

Electric vehicle charging can be flexible for many drivers, allowing for improved efficiency of the

electrical grid. Managed charging optimizes the grid and keep rates affordable for all our

customers.

Stronger energy security is gained from power generated here in the Northwest and fueling

electric transportation. Greater adoption of electric vehicles creates less reliance on imported

fuel needed for ICE vehicles.

With the passage of SB 5811 and the adoption of California’s zero emissions vehicle program,

potential benefits associated with electric transportation include the monetization of

environmental attributes associated with carbon reduction in the transportation sector.

E3 Cost/Benefit Analysis In 2016, six Washington utilities contracted with Energy+Environmental Economics (E3)

consulting to identify the impacts and benefits of electric vehicle adoption region wide and four

utilities (Snohomish PUD, Chelan PUD, Tacoma Power and Puget Sound Energy) sponsored an

additional level of detail specific to their own service territory. On a regional basis, the study

calculated a net benefit to all ratepayers, expressed in terms of dollars of benefit per vehicle

class included in the study. However, there were significant differences among utilities and

vehicle classes.

Costs and benefits were calculated for five electrified vehicle segments: 1) personal light-duty

vehicles, 2) taxis and transportation network company (TNC-Uber/Lyft) vehicles, 3) forklifts

(both light-duty and heavy-duty), 4) buses, and 5) parcel delivery trucks. The vehicle segments

were selected based on commercially available electric vehicles at the time of the 2017 study.

4 Building “Good Load” to Reduce Carbon Emissions, Northwest Energy Coalition, JJ McCoy, 2016


152/212

8

Specific to the District, the net economic benefit to the region over a 20 year period is $83.1

million dollars from personal electric passenger vehicles and the benefit to our ratepayers is

$57 million.5 Electrification of other transportation such as buses, forklifts, transportation

network companies (TNC), and delivery trucks all have a net positive benefit to the region and

our ratepayers. Additional benefit to ratepayers was quantified when vehicle adoption was

combined with managed charging.

Ratepayer Benefit per Electric Vehicle

Source: E3 Report

The analysis further identified load profiles providing the most opportunity, shifting from early

evening peaks to charging during low load hours of late night and very early morning. Early

evening personal vehicle charging coincides with current peak household energy use and a

benefit is seen even with a slight shift in the timing of charging. This benefit to the District’s

ratepayers increases from $57 to $152 million5 by managing personal vehicle charging. Transit,

school buses, and delivery trucks all have the potential to charge during the low load hours of

late night and early morning which could result in further grid optimization.

Additional cost/benefit analysis was provided for delivery trucks, buses, forklifts, and TNC

vehicles with managed charging only considered for buses. The greatest benefit to our

5 Economic and Grid Impacts of Plug-in Electric Vehicle Adoption in Washington and Oregon, March 2017, Energy+Environmental Economics

$1,045

Light Duty

Vehicle

$64,089 benefit Buses with

overnight charging

$1,910 benefit

from TNC vehicle (Uber/

Lyft)

$851 benefit

from Delivery Trucks

$2,537 benefit

from Forklifts


153/212

9

ratepayers over the 20-year period was per bus at $64,089 and forklifts contribute $2,537 of

benefit followed by ride-share vehicles at $1910 and $851 per delivery truck. While the E3

report determined a relatively small benefit from delivery fleets and did not estimate managed

charging benefits, these fleets have the potential for overnight charging since their operation

usually coincides with business hours.

The E3 study provided an initial analysis of the benefits from several vehicle types commercially

available at the time. Since the report was published, the EV industry has made significant

advancements in vehicles for medium-heavy duty uses and improvements in charging

technology. Accordingly, we are confident that the benefits identified in the 2017 E3 Study are

higher today than they were in 2017. Pilots across the nation testing the optimization of driving

and charging profiles for commercial vehicles, including buses and delivery trucks, will further

inform potential benefit. As opportunities for beneficial electrification are identified within the

service territory, the District will update and expand the cost/benefit analysis for these vehicle

types, applications, and charging management. In the meantime, sufficient benefit information

is documented through the E3 Study to enable the District to move forward with some

incentive programs.

Snohomish PUD’s Role Supporting Electric Transportation The District remains focused on our core business of providing safe, affordable, reliable, and

environmentally sustainable power to the community we serve. As our customers adopt

electric vehicles in greater numbers, we are committed to support and partner with them.

Puget Sound vehicle traffic flows across four utility service territories and consideration was

given to the activities taking place in each of the other three service territories. A few of the

considerations include consistent messaging, vehicle purchasing, charging needs, and delivery

routes. However, similar to nationwide best practices, each utility is unique in its business

structure, customer needs, and grid infrastructure. In nation-wide best practices, transportation

plans include some common themes reflected in this plan while addressing the specific needs

within the utility service territory.

Some differences in Puget Sound utility transportation plans are driven by municipal structure,

investor ownership, high volumes of ride share vehicles, port activity, and long commutes.

There is also the opportunity to learn from the many pilots among northwest utilities given the

collaborative environment. Insights from California are closely followed with the number and

depth of programs funded at over a billion dollars.

Key Strategies and Actions This plan describes three key strategies, that set the groundwork for the District’s support and

participation in the continued growth of electric transportation in Snohomish County and

Camano Island, consistent with the District’s Strategic Priorities. The key strategies and


154/212

10

associated actions propose solutions to overcome the current barriers and adapt to the rapid

advancement of technology while benefits for all ratepayers are achieved.

Many of the actions described in this plan are established best practices for utilities across the

nation. These actions will inform the development of policies and programs supporting electric

transportation while aligning with the interests of customers, EV owners, local governments,

the state, and manufacturers.

The actions described in this plan are fairly high level. The individual actions, pilots and

programs will be consistent with the framework of this plan, including its economic cost/benefit

analysis, thus giving staff the ability to design the actions that meet current and developing

needs. The District’s progress under the plan will be shared and discussed with the Board

periodically. Any significant alterations to the plan based on changes in the economics of

transportation electrification, electric vehicle industry, Board input, and/or the regulatory

environment will be presented for approval. The Board will approve annually, as part of the

District’s budget, the expected expenditures under the plan.

Key Strategies for Electric Transportation

Build community through outreach and education about electric vehicles


Enable customer adoption of electric transportation


155/212

11

Community Build community through outreach and education about electric vehicles.

The District has been a trusted energy efficiency advisor to our customers for more than forty

years. We are expanding the role to include electric vehicles and charging infrastructure by

leveraging existing channels in support of electric vehicle adoption. Efforts will focus on general

outreach and education with a targeted effort to those customers with immediate potential for

electric vehicle purchase.

This multi-channel approach creates an opportunity to build consumer confidence, supporting

the benefits from electric transportation, such as affordability, through education and

awareness. These actions will create informed choices for customers on electric vehicle

ownership, fleet electrification, and electric transportation impacts. The District’s established

EV Community of EV owners and interested individuals will be the focal point for participation

in residential focus groups and program participation.

Priorities for a dedicated engagement manager will focus on general outreach to educate

employees, customers, auto dealers, and charging site hosts along with targeted outreach to

fleet customers. In establishing priorities, a variety of resources providing information on light-

duty vehicles were considered and compared to the limited communication on new

developments and pilots for the medium-heavy duty EV sector.

The District’s EV website pages include a quick link from the home page, basic EV information,

several tools to assist in the purchase decision, and a charging locator. This information will be

leveraged into other forms of communication for broad distribution at events, ride and drives,

and other community engagements in the future.

With approximately 80% of electrical vehicles leased6, the secondary vehicle market is ideal for

many buyers due to the lower purchase price than for a comparable internal combustion

engine (ICE) vehicle. However, many of those buyers may not be aware of this opportunity or

considerations when purchasing an electric vehicle. Reaching buyers of vehicles on the

secondary market will be one of the priorities.

Continued improvement and development of additional programs will take place under the

umbrella of the plan consistent with the goals and strategies of this Electric Transportation

Plan. Similar to the District’s Energy Efficiency program planning process, the District’s annual

budget will reflect electric transportation programs for each year.

6 Retrieved from www.myev.com


156/212

12

Grid Optimize the grid with transportation electrification

The District has an ongoing effort to revise its planning and forecasting models to incorporate a

number of distributed energy resources including electrical vehicles. Further refinement to the

inputs of these models includes county specific data and current national trends. Utilizing these

models with our system planning maps, system constraints have been identified and high-level

heat maps were developed to target available capacity and/or identify areas of further study.

To refine customer data and gain more knowledge about the driving and charging behavior of

our residential electric vehicle owners, we have contracted with FleetCarma and will recruit EV

owners from our established EV Community to participate in the two-year study. The study will

have the additional benefit in the second year to understand the potential for influencing off-

peak charging behavior.

FleetCarma helps utilities understand and manage electric vehicle charging by providing EV

drivers with a plug and play C2 device that is self-installed in the car’s on-board diagnostic

(OBD) port. The anonymized data on driving and charging patterns is provided to the utility for

system planning and customer behavior trends. Additionally, the information can validate

incentives for off-peak charging through the Smart Charge Rewards platform. EV drivers can

access their data through FleetCarma’s app and track any rewards.

Outreach efforts for targeting and establishing partnerships with large electrification load

customers such as private fleets, transit, and the ferry system will focus on planning for

managed charging to optimize the grid and reduce charging peaks to minimize costs for the

customer and ratepayers.

Vehicle-to-grid (V2G) technology is in the early stages of development and has the potential to

be a source of grid services. The District’s Arlington microgrid (late 2020 completion) site will

demonstrate the viability of V2G by testing the functionality and impact on systems and

equipment, including integration with community solar and battery storage.






157/212

13

Adoption Enable customer adoption of electric transportation

The District continues to support adoption of electric vehicles by partnering with our customers

and planning future pilot rate schedules, incentives, and innovative pilots. Strategic customer

partnerships include car dealerships (Nissan and Kia), delivery fleets adopting electric vehicles

(Amazon, UPS and Pepsico) and charging developers (ChargePoint, EVgo, Volta and EnelX).

With AMI technology, more options supporting alternative rates and incentive programs for our

customers will be possible.

Over eighty percent of future residential EV owners plan to charge their vehicles primarily from

their homes, yet only fifty-five percent have their own garage.7 To better understand the needs

and solutions for the multi-unit dwelling (MUD) EV owners, the District is participating in DOE’s

MUD grant with the Center of Sustainable Energy (CSE) which identifies barriers to MUD and

curbside charging with a second phase to demonstrate charging infrastructure innovation.

In recognition of the current high cost of electric transportation, state agencies have issued

several RFPs for grant funding including VW settlement funds, The District has participated in

these as support to customer proposals or as the proposer in partnership with one or more of

our customers. Recently, the District, a municipal customer and a commercial customer were

awarded grants from the Department of Ecology to install fast chargers. Partnerships with grant

funding will be a key structure supporting the build out of EV infrastructure at public,

workplace, and multi-unit dwelling sites to ensure equitable access to EV charging. Further, the

District will explore alternate rate structures, incentives, and managed charging guidelines as

potential solutions to reducing EV charging site operating costs for long term sustainability.





7 Accenture Strategy eMobility Value Research, 2019


158/212

14

Key Strategies and Actions

• Dedicated EV engagement manager

• Equitable access to charging

• Building EV community of Customers

• General outreach and events

• Visible and simple information and tools

Community

• FleetCarma pilot

• EV growth model for system planning

• System impact guidelines for planning

• Arlington Microgrid V2G

• Long term partnerships with large electrification sites

Grid

• Government fleet knowledge sharing

• EV Dealership outreach

• Partnering with delivery fleets

• Engagement with cities' climate change initiatives

• Residential incentive and managed charging pilot

Adoption


159/212

15

Moving Forward The strategies and actions outlined above prepare the utility for the future when wide-scale

adoption of electric transportation occurs. Planning and actions now will ensure that customer

preferences are met, system upgrades are planned, and customer EV charging has been

influenced to optimize the grid. The key strategies will guide the planning of equitable

opportunities for EV adoption and operational guidelines while providing benefits to all

ratepayers.

The District has well-established processes for energy efficiency which will serve as a guide for

documentation, approval, and implementation of proposed EV customer outreach, programs,

and/or rate schedules. This inaugural plan will be updated as needed with consideration given

to District budgets, market changes, Board input, and/or system impacts at a minimum.


160/212


Meeting Date: July 7, 2020 Agenda Item:

TITLE

Consideration of a Resolution Approving an Electric Transportation Plan for the District

SUBMITTED FOR: Briefing and Study Session

Customer and Energy Services Suzanne Frew x1733 Department Contact Extension

Date of Previous Briefing: March 3,2020


ACTION REQUIRED:



Policy Decision

Statutory

SUMMARY STATEMENT:


Governance Process, Board Job Description: GP-3 non-delegable, statutorily assigned Board

duty

Staff has prepared a high-level strategy and plan for the District’s investment in and incentives

for increasing electric transportation. As the District envisions the utility of the future with

greater integration of distributed energy resources, changing needs of our customers, and

growing decarbonization policies, electric transportation can play a pivotal role in providing a

flexible and manageable load. Partnerships with our customers will be essential to maximize the

benefits for them and the District. If not managed, increasing electric transportation could

exacerbate rather than mitigate power supply and grid management challenges.

Background

As the purveyor of electricity within its service territory, the District has always had the authority

to build infrastructure for the purpose of supporting charging for electric vehicles. Prior to 2019,

it was less clear whether public utility districts had the authority to provide advertising and

Red-lined June 16, 2020, Cover Sheet, Resolution, and Transportation Plan Page 1 of 24

161/212

outreach and monetary incentives as well as other types of infrastructure to customers to incent

the private development of charging facilities.

In 2019 the legislature clarified the authority of electric utilities, including public utility districts,

to invest in infrastructure and provide outreach and incentives for the electrification of

transportation, with a requirement that the utility’s governing board adopt a formal plan, and that

the utility show that such programs benefit the ratepayers, or at a minimum, do not

imposeincrease net costs toon ratepayers in excess of overall by more than 0.25%. RCW

54.16.430.

The Legislature also recognized that the benefits of transportation electrification programs could

be different for each utility, depending upon its circumstances. Some of the benefits cited by the

legislature include: optimizing the use of electric grid infrastructure, improving the management

of electric loads, better managing the integration of variable renewable energy resources, and

cost-effective energy efficiency, through more efficient use of energy resources, and more

efficient use of the electric delivery system.

The Electric Transportation Plan

Through a collaborative team effort by staff from departments across the District, staff have

prepared the draft The Electric Transportation Plan ias a high-level set of strategies and actions

designed to overcome barriers, align with District strategic priorities, such as affordability,

support customers, and optimize the electrical grid. The Plan was developed through a

collaborative effort across the District.

The Plan describes the three key strategies and sets of actions proposed, the types of benefits that

can be realized under the Plan, and the cost/benefit analyses performed by

Energy+Environmental Economics (E3) that quantifyies the benefits of increasing numbers of

electric vehicles to the utility’s customers.

The Plan sets out its actions at a fairly high-level. The individual programs, pilots, and actions

will be consistent with the framework of the plan, including its economic cost/benefit analysis,

thus giving staff the ability to design the actions that meet current and developing needs.

The District’s progress under the Plan will be reportedshared and discussed with the Board

periodically, and any significant alterations to the Plan based on changes in the economics of

transportation electrification, electric vehicle industry, Board input, and/or the regulatory

environment will be presented to the Board for approval. Similar to the energy efficiency

program planning process, the District’s annual budget will reflect the electric transportation

programs for each year.

List Attachments:

Resolution

Electric Transportation Plan


162/212

RESOLUTION NO.

A RESOLUTION Approving an Electric Transportation Plan for the

District.

WHEREAS, in 2019, the Washington state legislature clarified the authority of public

utility districts and other electric utilities to invest in infrastructure and to provide outreach

and incentives for the electrification of transportation, provided that the programs and plans

do not impose aincrease net cost oncosts to ratepayers in excess ofoverall by more than 0.25

percent;%; and

WHEREAS the legislature recognized that the benefits of electric transportation

programs could be different for each utility, depending upon its circumstances, including but

not limited to: optimizing the use of electric grid infrastructure; improving the management

of electric loads; better managing the integration of variable renewable energy resources;

cost-effective energy efficiency through more efficient use of energy resources; and more

efficient use of the electric delivery system; and

WHEREAS, RCW 54.16.430 requires the utility’s governing board to adopt a plan

for the electrification of transportation that considers the benefits for the utility and its

customers, to include some or all of the following: (a) The applicability of multiple options

for electrification of transportation across all customer classes; (b) the impact of

electrification on the district's load, and whether demand response or other load management

opportunities, including direct load control and dynamic pricing, are operationally

appropriate; (c) system reliability and distribution system efficiencies; (d) interoperability

concerns, including the interoperability of hardware and software systems in electrification of

transportation proposals; and (e) overall customer experience; and

WHEREAS Staff of Public Utility District No. 1 of Snohomish County (the

“District”), through a collaborative team effort that included departments across the District,


163/212

Resolution No. - 2 -

developed an Electric Transportation Plan (the “EV Plan”) that describes a high level set of

strategies and actions designed to overcome barriers to adoption of electric vehicles, support

customers, and optimize the electrical grid, and describes the types of benefits that can be

realized under the Plan; and

WHEREAS, the EV Plan sets the key strategies and actions at a fairly high -level, and

authorizes staff to design individual actions, programs, pilots, and other activities to meet

current and developing needs, provided that such individual actions, programs, pilots, and

other activities are consistent with the EV Plan, and authorized within the annual budget

approved for the electric transportation programs for the year; and

WHEREAS, Staff will reportshare and discuss the District’s progress under the EV

Plan to the Board on a periodic basis, and will proposedpropose amendments or changes to

the EV Plan if there are significant Board concerns, changes in the economics of

transportation electrification, the electric vehicle industry and/or the regulatory environment;

and

WHEREAS, Staff recommends approval and adoption of the EV Plan as being in the

best interest of the District and its customers.

NOW, THEREFORE, BE IT RESOLVED by the Commission of Public Utility District

No. 1 of Snohomish County, Washington, as follows:

1. The draft Electric Transportation Plan (the “EV Plan”), attached hereto as Exhibit A is

hereby approved and adopted.

2. The District may: (a) make financial payments to customers, developers, owners,

vendors or other entities as incentives; (b) implement programs, pilot programs,

activities, and undertake actions that further the goals of the EV Plan; (c) construct or

authorize construction of electric vehicle charging infrastructure or other work


164/212

Resolution No. - 3 -

necessary for such charging infrastructure; and (d) conduct outreach, education and

advertising activities to further the goals of EV Plan (collectively referred to as the EV

activities).

3. The following limitations apply to the EV activities authorized under Paragraph 2 of

this Resolution: (a) the EV activities must be consistent with the EV Plan, including its

economic cost/benefit analyses; (b) the expenditures for the EV activities must be

authorized in the District’s annual budget; and (c) and the expenditures for the EV

activities do not createincrease net costs for customers in excess ofto ratepayers overall

by more than 0.25 percent% in any given year.

4. The CEO/General Manager or his designee shall develop and adopt program plans,

rules, and/or procedures to the extent necessary to implement this Resolution and the

EV Plan, that will include documentation with the standards set forth herein.

PASSED AND APPROVED this 16th7th day of JuneJuly, 2020.

President

Vice-President

Secretary


165/212

Electric Transportation PlanJune 16, 2020

July 7, 2020

Partnering with our community to ensure customers have the knowledge they need and the support they require while optimizing the grid for growing electric transportation needs now and into the future.

Partnering with our community to ensure that customers have the knowledge they need and the support they require while optimizing the grid for growing electric transportation needs now and into the future.


166/212

1

Table of Contents Executive Summary ......................................................................................................................... 3



Market ..................................................................................................................................... 4

Technology............................................................................................................................... 5

Barriers .................................................................................................................................... 5

Legislation ................................................................................................................................... 6


Benefits........................................................................................................................................ 8


Snohomish PUD’s Role Supporting Electric Transportation ......................................................... 10

Key Strategies and Actions ........................................................................................................ 10

Community ............................................................................................................................ 12

Grid ........................................................................................................................................ 13

Adoption ................................................................................................................................ 14

Moving Forward ............................................................................................................................ 17

Executive Summary ......................................................................................................................... 3



Market ..................................................................................................................................... 4

Technology............................................................................................................................... 5

Barriers .................................................................................................................................... 5

Legislation ................................................................................................................................... 6


Benefits........................................................................................................................................ 8


Snohomish PUD’s Role Supporting Electric Transportation ......................................................... 10

Key Strategies and Actions ........................................................................................................ 10


167/212

2

Community ............................................................................................................................ 12

Grid ........................................................................................................................................ 13

Adoption ................................................................................................................................ 14

Moving Forward ............................................................................................................................ 17


168/212

3

Executive Summary As the District envisions the utility of the future with greater integration of distributed energy resources, changing needs of our customers and growing decarbonization policies, electric transportation can play a pivotal role in providing a flexible and manageable load. Partnerships with our customers will be essential to maximize the benefitbenefits for them and the District. If not well managed, increasing electric transportation could exacerbate rather than mitigate power supply and grid management challenges.

Electric transportation efforts to date have built on three key strategies. This plan reaffirms those strategies and expands actions developed to overcome barriers, support customers, align with the District’s strategic priorities, such as affordability, and optimize the electrical grid. The strategies, developed by a collaborative team from departments across the District and described later in the document, provide guidance for District actions and policy.

This inaugural Electric Transportation Plan addresses the requirements of SHB 1512, current business conditions and planned actions. An accompanying resolution is submitted as part of the approval process. District staff isare requesting approval of both the resolution and Electric Transportation Plan.

Background and Policy The primary purpose of this plan is to outline key strategies for investing in infrastructure for electric transportation, while meeting the legislative requirement for the adoption of an electrification of transportation plan by the District’s Commissioners before offering incentives. The District’s plans for its own fleet are not within the scope of this plan.

Market, Technology and Barriers While there are several factors contributing to the challenge of predicting future electric transportation trends as technology rapidly advances, there is a consensus that electric vehicle adoption will trend upwards. The timing and volumesize of the upward trend is less certain, especially with current conditions impacting vehicle production, fuel cost and unemployment.

Adoption rates are being driven by legislative actions, commitments from vehicle and equipment manufacturers, and consumer demand on a world-wide scale. The electric vehicle industry has seen steep increases in adoption rates from the advancement of technology and new entrants such as Tesla, who which has captured a majority of the market.


169/212

4

Market Washington State is third in the nation for electric vehicle adoption1 and Snohomish County is second in Washington State for the number of registered electric vehicles2. Recently, Snohomish County was identified as one of the top fifteen counties in the nation for electric vehicle (EV) adoption, at 4.4%, while the national average is 1.9%.3 This presents an opportunity for the District to support our customers investing in electric transportation and to shape the charging load to optimize the electrical grid, while keeping rates affordable for our customers.

The recent legislative adoption of a zero emissions vehicle (ZEV) program, city decarbonization initiatives, and investments from all vehicle manufacturers are some of the influences contributing to the upward trend in electric transportation. The impact of these influences has now extended beyond the light duty vehicle market to adoption of medium duty trucks and vans for delivery fleets.

Electric Vehicle Market Overview

Sources: www.data.wa.gov , www.epri.com and www.plugshare.com

1 EV Market Share by State 2018 retrieved from www.evadoption.com 2 WA Department of Licensing data for Snohomish County and Camano Island, June 4, 2020 retrieved from www. Data.wa.gov/demographics/electrical-vehicles-by county 3 Electric Power Research Institute 2020 Electric Transportation Update (March 2020) retrieved from www.epri.com

WA 3rd in nation for

EV adoption

6,215 EVs in service territory

EVs will be 55% of car

sales in 2040

130 EV models in

2023

116 public charging locations


170/212

5

Technology The electric transportation industry is rapidly advancing both vehicle and equipment technology with consideration for consumer demands and specialized commercial applications. In response, the electric vehicle manufacturing industry is establishing unprecedented partnerships between vehicle manufacturers to reduce investment costs and speed the time to market. One example of this is General Motors’s EV platform and battery integrated into Honda’s new electric vehicle designs.

The benefit of partnerships between vehicle manufacturers should be realized in 2023 when over 130 models are expected to be available and half of those vehicles are expected to be SUVs and cross overs which currently account for a majority of the car sales. Additionally, the partnerships have extended to commercial vehicles with input from delivery companies on fleet vehicle design with the Amazon and Rivian partnership. Real world pilot projects include collaboration with utilities on vehicle and grid interaction as delivery routes are refined for performance, and charge management strategies are developed to minimize operational costs.

With increasing electrical capacity needs for charging infrastructure, best practices are being established by utilities nation-wide to achieve diversity factors for vehicle charging in an effort to minimize the impact on utility infrastructure. While standards for light duty chargers have been established, there is an urgency to develop heavy-duty bus charging standards as this market continues to grow and has potential for vehicle -to -grid value.

Barriers The three greatest barriers to electric vehicle adoption are awareness of electric vehicles and charging technology, availability of charging and initial first cost of electric vehicles.

Customer Awareness Education and awareness continue to be the largest barrier to electric vehicle adoption with both electric vehicles and charger technology widely unknown and still thought of as emerging. For consumers, the challenges of finding a reliable source of information and interacting with knowledgeable sales staff at car dealerships remain. With an increase in availability and adoption of buses and delivery trucks, fleet managers are sharing and collecting information from small scale pilots throughout the nation.

Charging Infrastructure The availability of charging is challenging for all EV owners and especially challenging for multi-unit dwelling (MUD) residents and renters or homeowners without a garage since a majority of vehicle charging occurs when the vehicle is parked at the EV owner’s residence. For those EV owners renting, using nondedicated parking or operating as part of a transportation network company (TNC – Uber and /Lyft), public or workplace charging is essential. Access to charging needs to be equitably developed for all customers for wide scale EV adoption to occur.


171/212

6

For commercial customers, the barrier to charging is charger standards and costs. While several standards for charging have been established for light duty vehicles, charging standards for heavy duty vehicles and buses isare under development and most charging infrastructure is proprietary. Utilities can play a role to support the build out of charging infrastructure and inform managed charging strategies for customer fleets to reduce high demand charges.

Electric Vehicle Cost By 2025, it is predicted that the cost of a new electric vehicle will reach parity with internal combustion engine (ICE) vehicles. However, due to the past and current volume of electrical vehicle leases, the secondary market is already at parity or close to parity. Incentives and tax breaks at the federal, state and manufacturer level can support the adoption of both new and used electric vehicles. Further support for electric transportation from utilities can include incentives for charging infrastructure with additional value to all ratepayers from managed charging.

The recent zero emission vehicle mandate in Washington is expected to bring a wider variety of electric vehicles to the market if it follows national trends. The mandate extends to medium-duty trucks as well even though adoption has been limited by viable electric vehicle alternatives. Buses are the one exception and their adoption rates have been increasing throughout the world. The full economic benefit has yet to be realized with vehicle -to -grid technology still in the early stages of development with early indications of significant potential. Cost is still a barrier and grant funding has subsidized most of the electric buses in the United States.

Legislation SHB 1512, as passed by the Legislature and signed into law by the Governor in 2019 (codified as RCW 54.16.430), clarified the authority of consumer owned electric utilities to invest in infrastructure and provide outreach about and incentives for electric transportation, with a requirement that the utility demonstrate that such programs benefit the ratepayers, or at a minimum, do not imposeincrease net costs onto ratepayers in excess ofoverall by more than 0.25 percent.%.

The Legislature also recognized that the benefits of electric transportation programs could be different for each utility, depending upon its circumstances. Some of the benefits cited by the legislature include: optimizing the use of electric grid infrastructure, improving the management of electric loads, better managing the integration of variable renewable energy resources, and cost-effective energy efficiency, through more efficient use of energy resources, and more efficient use of the electric delivery system.

The legislature noted that utilities could consider a variety of these types of benefits in establishing their electrification of transportation plans, including some or all of the following:


172/212

7

(a) The applicability of multiple options for electrification of transportation across all customer classes;

(b) the impact of electrification on the district's load, and whether demand response or other load management opportunities, including direct load control and dynamic pricing, are operationally appropriate;

(c) system reliability and distribution system efficiencies;

(d) interoperability concerns, including the interoperability of hardware and software systems in electrification of transportation proposals; and

(e) overall customer experience.

The key strategies and accompanying actions, as described further in the document, support many of the benefits listed above while providing customer choice and affordable rates.

In the 2019 legislative session, several other bills passed which support the electrification of transportation and the grid resources required for charging infrastructure. Below is a short summary of the bills passed in the 2019 legislative session.

• HB 2042, Advancing Green Transportation Adoption, revives some of the tax breaks for purchasing electric vehicles, and limits the benefit to new vehicles under $45,000 and used vehicles under $30,000.

• SB 5116, Clean Energy Transformation Act, requires Washington utilities to provide power free of greenhouse gases by 2045. The bill authorizes the use of utility infrastructure and systems to maximize the benefits of electric vehicle charging such as managed charging and vehicle to grid (V2G) capability as alternative compliance options in the early compliance periods.

• HB 1257, Concerning Energy Efficiency, requires all new building construction projects with on-site parking to install the electrical wiring to accommodate level 2 vehicle charging equivalent to the greater of one space or ten percent of the spaces.

In the 2020 legislative session, SB 5811 continued to reinforce Washington’s commitment to transportation electrification by adopting California’s vehicle emissions standards, including California’s zero emissions vehicle program. With the passage of this bill, Washington State became the 12th Zero Emissions Vehicle (ZEV) state.

Value of Electric Transportation Electric transportation provides financial benefits to both the ratepayers and consumers with additional positive societal impacts with; air quality being the most measurable. Widely documented benefits from electric transportation are noted below.


173/212

8

Benefits In Washington state, transportation contributes forty-seven percent47%4 of greenhouse gas emissions; the highest percentage of the four northwest states. Snohomish PUD is uniquely positioned to support electric transportation with 98% carbon free power resulting in significant reductions in emissions.

By expediting the transition to electric transportation, both on and off road, the region gains improvements to air quality and public health are gained. Tailpipe emissions are eliminated with an electric vehicle and significant greenhouse gas emission reductions can be attributed to Snohomish PUD’s low carbon power when used for charging.

Electrical vehicle operating and maintenance costs are lower than those for internal combustion engine (ICE) vehicles. Lower fuel cost and reduced maintenance on electric vehicles lowers the total cost of ownership. Additional environmental benefits are gained from fewer mechanical systems with fluids that may leak or need to be disposed of.

Electric vehicle charging can be flexible for many drivers which allows, allowing for improved efficiency of the electrical grid. Managed charging optimizes the grid and keep rates affordable for all of our customers.

Stronger energy security is gained from power generated here in the northwestNorthwest and fueling electric transportation. Greater adoption of electric vehicles creates less reliance on imported fuel needed for ICE vehicles.

With the passage of SB 5811 and the adoption of California’s zero emissions vehicle program, potential benefits associated with electric transportation include the monetization of environmental attributes associated with carbon reduction in the transportation sector.

E3 Cost/Benefit Analysis In 2016, six Washington utilities contracted with Energy+Environmental Economics (E3) consulting to identify the impacts and benefits of electric vehicle adoption region wide and four utilities (Snohomish PUD, Chelan PUD, Tacoma Power and Puget Sound Energy) sponsored an additional level of detail specific to their own service territory. On a regional basis, the study calculated a net benefit to all ratepayers, expressed in terms of dollars of benefit per vehicle class included in the study. However, there were significant differences betweenamong utilities and vehicle classes.

Costs and benefits were calculated for five electrified vehicle segments: 1) personal light-duty vehicles, 2) taxis and transportation network company (TNC-Uber/Lyft) vehicles, 3) forklifts (both light-duty and heavy-duty), 4) buses, and 5) parcel delivery trucks. The vehicle segments were selected based on commercially available electric vehicles at the time of the 2017 study.

4 Building “Good Load” to Reduce Carbon Emissions, Northwest Energy Coalition, JJ McCoy, 2016


174/212

9

Specific to the District, the net economic benefit to the region over a 20 year period is $83.1 million dollars from personal electric passenger vehicles and the benefit to our ratepayers is $57 million.5 Electrification of other transportation such as buses, forklifts, transportation network companies (TNC)), and delivery trucks all have a net positive benefit to the region and District customersour ratepayers. Additional benefit to ratepayers was quantified when vehicle adoption was combined with managed charging.

Ratepayer Benefit per Electric Vehicle

Source: E3 Report

The analysis further identified load profiles providing the most opportunity, shifting from early evening peaks to charging during low load periodshours of late night and very early morning. Early evening personal vehicle charging coincides with current peak household energy use and a benefit is seen even with a slight shift in the timing of charging. This benefit to the District’s ratepayers increases from $57 to $152 million5 by managing personal vehicle charging. Transit, school buses, and delivery trucks all have the potential to charge during the low load hours of late night and early morning which could result in further grid optimization.

Additional cost/benefit analysis was provided for delivery trucks, buses, forklifts, and TNC vehicles with managed charging only considered for buses. The greatest benefit to theour

5 Economic and Grid Impacts of Plug-in Electric Vehicle Adoption in Washington and Oregon, March 2017, Energy+Environmental Economics

$1,045Light Duty

Vehicle

$64,089 benefit Buses with

overnight charging

$1,910 benefit

from TNC vehicle (Uber/

Lyft)

$851 benefit

from Delivery Trucks

$2,537 benefit

from Forklifts


175/212

10

ratepayers over the 20-year period was per bus at $64,089 and forklifts contribute $2,537 of benefit followed by ride-share vehicles at $1910 and $851 per delivery truck. While the E3 report determined a relatively small benefit from delivery fleets and did not estimate managed charging benefits, these fleets have the potential for overnight charging since their operation usually coincides with business hours.

The E3 study provided an initial analysis of the benefits from several vehicle types commercially available at the time. Since the report was published, the EV industry has made significant advancements in vehicles for medium-heavy duty uses and improvements in charging technology. Accordingly, we are confident that the benefits identified in the 2017 E3 Study are higher today than they were in 2017. Pilots across the nation testing the optimization of driving and charging profiles for commercial vehicles, including buses and delivery trucks, will further inform potential benefit. As opportunities for beneficial electrification are identified within the service territory, the District will update and expand the cost /benefit analysis for these vehicle types, applications, and charging management. In the meantime, sufficient benefit information is documented through the E3 Study to enable the District to move forward with some incentive programs.

Snohomish PUD’s Role Supporting Electric Transportation The District remains focused on our core business of providing safe, affordable, reliable, and environmentally sustainable power to the community we serve. As our customers adopt electric vehicles in greater numbers, we are committed to support and partner with them.

Puget Sound vehicle traffic flows across four utility service territories and consideration was given to the activities taking place in each of the other three service territories. A few of the considerations include consistent messaging, vehicle purchasing, charging needs, and delivery routes. However, similar to nationwide best practices, each utility is unique in its business structure, customer needs, and grid infrastructure. In nation-wide best practices, transportation plans include some common themes reflected in this plan while addressing the specific needs within the utility service territory.

Some differences in Puget Sound utility transportation plans are driven by municipal structure, investor ownership, high volumes of ride share vehicles, port activity, and long commutes. There is also the opportunity to learn from the many pilots among northwest utilities given the collaborative environment. Insights from California are closely followed with the number and depth of programs funded at over a billion dollars.

Key Strategies and Actions This plan describes three key strategies, that set the groundwork for the District’s support and participation in the continued growth of electric transportation in Snohomish County and


176/212

11

Camano Island, consistent with the District’s strategic priorities.Strategic Priorities. The key strategies and associated actions propose solutions to overcome the current barriers and adapt to the rapid advancement of technology while benefits for all ratepayers are achieved.

Many of the actions described in this plan are established best practices for utilities across the nation. These actions will inform the development of policies and programs supporting electric transportation while aligning with the interests of customers, EV owners, local governments, the state, and manufacturers.

The actions described in this plan are fairly high level. The individual actions, pilots and programs will be consistent with the framework of this plan, including its economic cost/benefit analysis, thus giving staff the ability to design the actions that meet current and developing needs. The District’s progress under the plan will be reported toshared and discussed with the Board periodically, any. Any significant alterations to the plan based on changes in the economics of transportation electrification, electric vehicle industry, Board input, and/or the regulatory environment will be presented for approval, and the. The Board will approve annually, as part of the District’s budget, the expected expenditures under the plan.

Key Strategies for Electric Transportation

Build community through outreach and education of electric vehicles




177/212

12

Community Build community through outreach and education ofabout electric vehicles.

The District has been a trusted energy efficiency advisor to our customers for more than 40forty years. We are expanding the role to include electric vehicles and charging infrastructure by leveraging existing channels in support of electric vehicle adoption. Efforts will focus on general outreach and education with a targeted effort to those customers with immediate potential for electric vehicle purchase.

This multi-channel approach creates an opportunity to build consumer confidence, supporting the benefits from electric transportation, such as affordability, through education and awareness. These actions will create informed choices for customers on electric vehicle ownership, fleet electrification, and electric transportation impacts. The District’s established EV Community of EV owners and interested individuals will be the focal point for participation in residential focus groups and program participation.

Priorities for a dedicated engagement manager will focus on general outreach to educate employees, customers, auto dealers, and charging site hosts along with targeted outreach to fleet customers. In establishing priorities, thea variety of resources providing information on light-duty vehicles were considered and compared to the limited communication on new developments and pilots for the medium-heavy duty EV sector.

Build community through outreach and education about electric vehicles




178/212

13

The District’s EV website pages include a quick link from the home page, basic EV information, a number ofseveral tools to assist in the purchase decision, and a charging locator. This information will be leveraged into other forms of communication for broad distribution at events, ride and drives, and other community engagements in the future.

With approximately 80% of electrical vehicles leased6, the secondary vehicle market is ideal for many buyers due to the lower purchase price than for a comparable internal combustion engine (ICE) vehicle. However, many of those buyers may not be aware of this opportunity or considerations when purchasing an electric vehicle. Reaching buyers of vehicles on the secondary market will be one of the priorities.

Continued improvement and development of additional programs will take place under the umbrella of the plan consistent with the goals and strategies of this Electric Transportation Plan. Similar to the energy efficiencyDistrict’s Energy Efficiency program planning process, the District’s annual budget will reflect electric transportation programs for each year.

Grid Optimize the grid with transportation electrification

The District has an ongoing effort to revise its planning and forecasting models to incorporate a number of distributed energy resources including electrical vehicles. Further refinement to the inputs of these models includes county specific data and current national trends. Utilizing these models with our system planning maps, system constraints have been identified and high-level heat maps were developed to target available capacity and/or identify areas of further study.

To refine customer data and gain more knowledge about the driving and charging behavior of our residential electric vehicle owners, we have contracted with FleetCarma and will recruit EV owners from our established EV Community to participate in the two-year study. The study will have the additional benefit in the second year to understand the potential for influencing off -peak charging behavior.

FleetCarma helps utilities understand and manage electric vehicle charging by providing EV drivers with a plug and play C2 device that is self-installed in the car’s on-board diagnostic (OBD) port. The anonymized data on driving and charging patterns is provided to the utility for system planning and customer behavior trends. Additionally, the information can validate incentives for off -peak charging through the Smart Charge Rewards platform. EV drivers can access their data through FleetCarma’s app and track any rewards.

6 Retrieved from www.myev.com


179/212

14

Outreach efforts for targeting and establishing partnerships with large electrification load customers such as private fleets, transit, and the ferry system will focus on planning for managed charging to optimize the grid and reduce charging peaks to minimize costs for the customer and ratepayers.

Vehicle -to -grid (V2G) technology is in the early stages of development and has the potential to be a source of grid services. The District’s Arlington microgrid (late 2020 completion) site will demonstrate the viability of V2G by testing the functionality and impact on systems and equipment, including integration with community solar and battery storage.


Adoption Enable customer adoption of electric transportation

The District continues to support adoption of electric vehicles by partnering with our customers and planning future pilot rate schedules, incentives, and innovative pilots. Strategic customer partnerships include car dealerships (Nissan and Kia), delivery fleets adopting electric vehicles (Amazon, UPS and Pepsico) and charging developers (ChargepointChargePoint, EVgo, Volta and EnelX). With our investment in AMI technology, more options supporting alternative rates and incentive programs for our customers will be possible.

Over eighty percent of future residential EV owners plan to charge their vehicles primarily from their homes. Yet, yet only fifty-five percent have their own garage.7 To better understand the needs and solutions for the multi-unit dwelling (MUD) EV owners, the District is participating in DOE’s MUD grant with the Center of Sustainable Energy (CSE) which identifies barriers to MUD and curbside charging with a second phase to demonstrate charging infrastructure innovation.

In recognition of the current high cost of electric transportation, state agencies have issued a number ofseveral RFPs for grant funding including VW settlement funds, The District has participated in these as support to customer proposals or as the proposer in partnership with one or more of our customers. Recently, the District, a municipal customer and a commercial customer were awarded grants from the Department of Ecology to install fast chargers.

7 Accenture Strategy eMobility Value Research, 2019


180/212

15

Partnerships with grant funding will be a key structure supporting the build out of EV infrastructure at public, workplace, and multi-unit dwelling sites to ensure equitable access to EV charging. Further, the District will explore alternate rate structures, incentives, and managed charging guidelines as potential solutions to reducing EV charging site operating costs for long term sustainability.


Key Strategies and Actions


181/212

16

• Dedicated EV engagement manager• Equitable access to charging• Building EV community of Customers• General outreach and events• Visible and simple information and tools

Community

• FleetCarma pilot• EV growth model for system planning• System impact guidelines for planning• Arlington Microgrid V2G• Long term partnerships with large electrification

sites

Grid

• Government fleet knowledge sharing• EV Dealership outreach• Partnering with delivery fleets• Engagement with city climate change initiatives• Residential incentive and managed charging pilot

Adoption


182/212

17

Moving Forward The strategies and actions outlined above prepare the utility for the future when wide -scale adoption of electric transportation occurs. The planningPlanning and actions now will ensure that customer preferences are met, system upgrades are planned, and customer EV charging

• Dedicated EV engagement manager• Equitable access to charging• Building EV community of Customers• General outreach and events• Visible and simple information and tools

Community

• FleetCarma pilot• EV growth model for system planning• System impact guidelines for planning• Arlington Microgrid V2G• Long term partnerships with large electrification

sites

Grid

• Government fleet knowledge sharing• EV Dealership outreach• Partnering with delivery fleets• Engagement with cities' climate change initiatives• Residential incentive and managed charging pilot

Adoption


183/212

18

has been influenced to optimize the grid. The key strategies will guide the planning of equitable opportunities for EV adoption and operational guidelines while providing benefits to all ratepayers.

The District has well-established processes for energy efficiency which will serve as a guide for documentation, approval, and implementation of proposed EV customer outreach, programs, and/or rate schedules. This inaugural plan will be updated as needed with consideration given to District budgets, market changes, Board input, and/or system impacts at a minimum.


184/212


Meeting Date: July 7, 2020 Agenda Item: 4C

TITLE:

Consideration of a Resolution Authorizing the Assistant General Manager, Customer and Energy

Services, to Execute a Master Energy Savings Administration Agreement with Puget Sound

Energy, Inc. to Establish a Joint Program in Which the District and PSE Could Purchase Energy

Savings from Each Other and Engage in Mutually Agreed upon Marketing Activities to Promote

Energy Savings Measures in the District’s Service Territory


Energy Services Suzanne Oversvee 8291


Date of Previous Briefing: June 16, 2020


ACTION REQUIRED:



Policy Decision

Statutory

SUMMARY STATEMENT:


Governance Process, Board Job Description, GP-3(4)(E)(1), a non-delegable statutorily

assigned Board Duty

The District is the sole electricity provider to Snohomish County and Camano Island (“District’s

Service Territory”). Within the District’s Service Territory, Puget Sound Energy, Inc. (“PSE”) is

the primary natural gas provider. The District and PSE separately conduct energy conservation

activities in the District’s Service Territory that sometimes generates a certain amount of

unutilized energy savings that could be of value to the other utility.

District and PSE staff have met and discussed ways to collaborate and coordinate their efforts

with respect to energy conservation activities in the District’s Service Territory to deliver energy

savings to their customers through streamlined offerings and utilize each other’s unutilized

energy savings. The result of these discussions is a tentative agreement (“Agreement”) that sets

forth the terms and conditions and the respective right and responsibilities of the District and

PSE in connection with such coordinated effort. The Agreement would establish a joint program

185/212

in which the District and PSE could purchase unutilized energy savings from each other, and the

parties would independently and cooperatively engage in mutually agreed upon marketing

activities to promote energy savings measures in the District’s Service Territory.

RECOMMENDATIONS/FUTURE ACTIONS:

Staff recommends the that the District Board of Commissioners pass the attached resolution

authorizing execution of the Master Energy Savings Administration Agreement with PSE.

List Attachments:

Resolution

Exhibit A

186/212

RESOLUTION NO. _____

A RESOLUTION Authorizing the Assistant General Manager,

Customer and Energy Services, to Execute a Master Energy

Savings Administration Agreement with Puget Sound Energy, Inc.

to Establish a Joint Program in Which the District and PSE Could

Purchase Energy Savings from Each Other and Engage in

Mutually Agreed upon Marketing Activities to Promote Energy

Savings Measures in the District’s Service Territory

WHEREAS, the District is the sole electricity provider to Snohomish County and

Camano Island (“District’s Service Territory”); and

WHEREAS, within the District’s Service Territory, Puget Sound Energy, Inc.

(“PSE”) is the primary natural gas provider; and

WHEREAS, both the District and PSE conducts energy conservation activities in the

District’s Service Territory; and

WHEREAS, there is an opportunity for the District and PSE to collaborate and

coordinate their efforts with respect to energy conservation activities and deliver additional

energy savings to their customers; and

WHEREAS, staff from the District and PSE have negotiated a tentative agreement

(“Master Energy Savings Administration Agreement” or “Agreement”) that sets forth the

terms and conditions and the respective right and responsibilities of the District and PSE in

connection with such coordinated effort, a copy of which is attached hereto as Exhibit “A”;

and

WHEREAS, the Agreement would establish a joint program in which the District and

PSE could purchase energy savings from each other, and the parties would independently and

cooperatively engage in mutually agreed upon marketing activities to promote energy

savings measures in the District’s Service Territory; and

187/212


WHEREAS, District staff respectfully recommend and request that the Board of

Commissioners authorize execution of the Agreement; and

WHEREAS, the Commission finds that it is in the best interest of the District and its

ratepayers to authorize execution of the Master Energy Savings Administration Agreement

with PSE.

NOW, THEREFORE, BE IT RESOLVED by the Commission of Public Utility

District No. 1 of Snohomish County that the Assistant General Manager, Customer and

Energy Services, or her designee, is authorized to execute a Master Energy Savings

Administration Agreement with Puget Sound Energy, Inc. in a form substantially similar to

that attached hereto as Exhibit A for the establishment and implementation of a joint program

in which the District and PSE could purchase energy savings from each other, and engage in

mutually agreed upon marketing activities to promote energy savings measures in the

District’s Service Territory; provided that the final form of said Agreement shall be subject to

the review and approval of the District’s General Counsel or her designee.

PASSED AND APPROVED this 7th day of July, 2020.

President

Vice-President

Secretary

188/212

Attachment A – DRAFT MASTER ENERGY SAVINGS ADMINISTRATION AGREEMENT THIS MASTER ENERGY SAVINGS ADMINISTRATION AGREEMENT (“Agreement”) is entered into as of __________, 2020 (the “Effective Date”) by and between PUBLIC UTILITY DISTRICT NO. 1 OF SNOHOMISH COUNTY (“District”), a municipal corporation organized under the laws of Washington State, and PUGET SOUND ENERGY, INC., a corporation organized under the laws of Washington State (“PSE”). The District and PSE are sometimes referred to herein individually as “Party” and collectively as “Parties.”

WHEREAS, the District is the sole electricity provider to Snohomish County and Camano Island (“District’s Service Territory”).

WHEREAS, within the District’s service territory, PSE is the primary natural gas provider.

WHEREAS, each Party conducts energy conservation activities in the District’s service territory that have potential to generate energy savings for both Parties and their customers.

WHEREAS, there is an opportunity for the Parties to coordinate their efforts with respect to energy conservation activities and deliver additional energy savings, and the Parties wish to set forth the terms and conditions and the respective right and responsibilities of the Parties in connection with such coordinated effort.

NOW, THEREFORE, the Parties agree as follows:

ARTICLE I. PURPOSE

The Purpose of this Agreement is to establish a joint program (“Program”) in which each Party hereunder may contract for the purchase of energy savings, and in which the Parties will independently and cooperatively engage in mutually agreed upon marketing activities to promote energy savings measures in the District’s Service Territory.

ARTICLE II. SCOPE OF WORK

A. The Parties will coordinate the purchase and delivery of energy savings and related services in accordance with the Scope of Work No. 1 attached hereto as Exhibit A and incorporated herein by this reference, and the terms and conditions of this Agreement.

B. The Parties may add additional scopes of work to be governed by the terms and conditions of the Agreement at any time by mutually executing an additional scope of work. Each scope of work will be numbered sequentially (i.e., Scope of Work No. 1, Scope of Work No. 2, and so on). Each scope of work attached hereto is referred to herein as a “Scope of Work” or “SOW.”

C. This Agreement sets forth the terms that apply to Scope of Work No. 1 and each subsequent SOW. Each SOW is subject to the terms and conditions of this Agreement, and is incorporated herein by reference. In the event of any conflict or inconsistency between the terms or conditions of this Agreement and any provision in a Scope of Work, the Agreement shall control unless such term or condition is explicitly superseded in the applicable Scope of Work.

D. Neither Party will become obligated in any way to the other Party hereunder for a new Scope of Work until both Parties execute and deliver a Scope of Work referencing the terms of this Agreement.

Resolution No. _____ Exhibit A Page 1 of 9

189/212

ARTICLE III. INDEPENDENT CONTRACTOR

A. Each Party understands and expressly agrees that the other Party is an independent contractor in the performance of each and every part of this Agreement. Each Party expressly represents that its status as an independent contractor in the performance of the work and services required under this Agreement is consistent with and meets the six-part independent contractor test set forth in RCW 51.08.195. Each Party, as an independent contractor, assumes the entire responsibility for carrying out and accomplishing the services required of it under this Agreement. Each Party shall make no claim of employment with the other Party nor shall claim any related employment and/or retirement benefits

B. Each Party shall be solely responsible for paying its own taxes, deductions, and assessments, including but not limited to utility taxes, B&O taxes, federal income tax, FICA, social security tax, assessments for unemployment and industrial injury, and other deductions from income which may be required by law or assessed against it as a result of this Agreement.

C. Except as set forth in a SOW, each Party hereunder will be responsible for any and all state and local sales or use taxes which may be payable or collectible in connection with this Agreement.

ARTICLE IV. TERM AND TERMINATION

The term of this Agreement shall commence on __________, 2020 and shall terminate at midnight, ____, 20__, unless sooner terminated by either Party. Either Party may terminate this Agreement, or any individual Scope of Work under this Agreement, at any time by giving the other Party thirty (30) days’ written notice of such termination.

ARTICLE V. COMPENSATION AND PAYMENT

A. Subject to the terms and conditions of this Agreement, each Party shall pay the other for the purchase and delivery of energy savings as described in the applicable Scope of Work.

B. The District’s total cost for all work performed by PSE under this Agreement, to the extent authorized in any Scope of Work defined under this agreement, shall not exceed Two Million Dollars ($2,000,000.00). Each Party shall pay the other Party within thirty (30) days after receipt and approval of invoices.

ARTICLE VI. CONTROL AND APPROVAL

A. Each Party shall appoint a Program Leader who will be in charge of the Program and have authority to make decisions on behalf of such Party. The initial Program Leaders for this Program will be:

PSE:

Name:

Title:

Mailing Address:

City, State, Zip:

Phone Number:

Email Address:


190/212

DISTRICT:

Name:

Title:

Mailing Address:

City, State, Zip:

Phone Number:

Email Address:

Each Party shall provide the other with written notice in the event it changes its Program Leader.

ARTICLE VII. PUBLIC RECORDS AND AUDIT RIGHTS

A. The District is subject to Washington’s Public Records Act, Chapter 42.56 RCW (“Act”), and the Act defines “public record” very broadly. Any records or documents, including electronic records, relating to or arising out of this Agreement are potentially subject to that Act unless a valid exception applies.

B. Public Records, including this Agreement, may be required to be made available for inspection or copying if a request to do so is received by the District. Prior to disclosing any information regarding PSE or the Program, the District’s Public Records Officer will notify PSE of the request and the information requested. If PSE financial, commercial or proprietary information has been requested, District will comply with the obligations set forth in Article XIV below.

C. Any such request received by PSE, including oral requests, must be referred to the District’s Public Records Officer immediately so that the District may acknowledge the request within five (5) business days of receipt. PSE shall not make Public Records available to anyone requesting them unless authorized to do so by the District.

D. PSE must retain all Public Records for a period of at least six (6) years following completion of the Agreement. As an alternative to retaining Public Records after the conclusion of the Agreement, PSE may deliver such Records to the District in a format compatible with District records retention and retrieval systems. At or following the conclusion of the six-year period, PSE must notify the District if it intends to destroy any Public Records, and provide the District the option to retain such records in lieu of destruction.

E. During this Agreement and for two years thereafter, each Party and its agents shall have the right to inspect and to perform audits of the other Party’s records pertaining to this Agreement, provided, however, that nothing hereunder shall allow a Party to inspect or obtain copies of proprietary information of the other Party.

F. Each Party shall make records available as required by this Article without charge to the other Party.

ARTICLE VIII. NON-DISCRIMINATION

During the performance of this Agreement, neither Party shall discriminate in violation of any applicable federal, state and/or local law or regulation on the basis of race, color, sex, sexual orientation, religion, national origin, creed, marital status, political affiliation, and/or the presence of any sensory, mental or physical handicap. This provision shall include but not be limited to the following: employment,


191/212

upgrading, demotion, transfer, recruitment, advertising, layoff or termination, rates of pay or other forms of compensation, selection for training, and the provision of services under this Agreement.

ARTICLE IX. COMPLIANCE WITH APPLICABLE LAWS

Each Party shall comply with all applicable federal, state and local laws and regulations in providing the work/services under this Agreement. ARTICLE X. INDEMNIFICATION AND HOLD HARMLESS

A. PSE agrees to indemnify and hold harmless District, and its officials, officers, employees and agents and each of the heirs, personal representatives, successors and assigns of any of the foregoing, from and against any and all liabilities, claims, damages and expenses (including all reasonable attorneys’ fees) arising out of or to the extent caused by any breach of any representation or warranty made by PSE and contained in this Agreement.

B. District agrees to indemnify and hold harmless PSE, and its officials, officers, employees and agents and each of the heirs, personal representatives, successors and assigns of any of the foregoing, from and against any and all liabilities, claims, damages and expenses (including all reasonable attorneys’ fees) arising out of or to the extent caused by any breach of any representation or warranty made by District and contained in this Agreement.

C. With regard to third party claims, each of the District and PSE hereby indemnifies and agrees to hold harmless and release the other Party and such Party’s officials, officers, employees and agents and each of the heirs, personal representatives, successors and assigns of any of the foregoing from and against any and all liabilities, losses, claims, damages, costs, demands, fines, judgments, penalties, obligations and payments, together with any reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees and out-of-pocket expenses and reasonable costs and expenses of investigation) incurred in connection with any of the foregoing, to the extent they result from, relate to or arise out of or in connection with the Program. In the event of such a third-party claim, the Parties agree to allocate liability and indemnification responsibility to each other for such claim in the proportion of fifty percent (50%) to the District and fifty percent (50%) to PSE; provided, however, that (i) in the event the third party claim is brought by a utility customer and relates to an electric-only project, the District will fully indemnify PSE with respect to such claim and (ii) in the event that the third party claim is brought by a utility customer and relates to a gas-only project, PSE will fully indemnify the District with respect to such claim. For clarification, claims brought by a utility customer for a project that creates both electric and gas savings will be split between the parties in the proportion of fifty percent (50%) to the District and fifty percent (50%) to PSE.

D. Solely and expressly for purposes of each Party’s duties to indemnify and hold harmless the other Party as set forth above, each Party (“First Party”) specifically waives any immunity it might have under the State Industrial Insurance law, Title 51 RCW, in the event that a claim is made against the other Party for an injury to any employee of the First Party. BOTH PARTIES ACKNOWLEDGE THAT THIS WAIVER HAS BEEN MUTUALLY NEGOTIATED BY THE PARTIES.

E. Nothing contained in this section of this Agreement shall be construed to create a liability or a right of indemnification in any third party.

F. The provisions of this section shall survive the expiration or termination of this Agreement with respect to any event occurring prior to such expiration or termination.


192/212

ARTICLE XI. PUBLICATIONS; INTELLECTUAL PROPERTY

A. Each Party shall not publicize or advertise at any time any articles, photos, drawings, technical data or other information regarding the Program without the prior written approval (email approval is sufficient) of the other Party.

B. Each Party grants to the other a nonexclusive, nontransferable and royalty-free right to display such Party’s respective trademarks, service marks, and logos (the “Trademarks”) in Program related marketing and other promotional materials, subject to the terms of this Agreement and such Party’s standard trademark usage guidelines (a copy of which will be provided by each Party). Each Party will have the opportunity to review and approve materials with that Party’s logo prior to distribution of those materials. Neither Party shall acquire any interest in or rights of ownership to any copyrights, patents, trade secrets, trademarks or other intellectual property of the other Party. Upon termination of this Agreement, each Party will cease using any materials that bear the Trademarks of the other Party.

C. The Parties acknowledge and agree that, except for the rights and licenses expressly granted by each Party to the other Party under this Agreement, each Party will retain all right, title and interest in and to its products, services, Trademarks, and all content, information and other materials on its website(s), and nothing contained in this Agreement will be construed as conferring upon such Party, by implication, operation of law or otherwise, any other license or other right.

ARTICLE XII. ENERGY SAVINGS DATA

Each Party shall share Program data with the other Party to justify energy savings in compliance with the Energy Independence Act, RCW Chapter 19.285. Specific data requirements will be mutually agreed upon for each Scope of Work. ARTICLE XIII. FUEL SWITCHING

Nothing in this Agreement or in any associated SOW shall preclude PSE from switching electric customers to natural gas when a Customer expresses interest, or prohibit PSE from providing general information on its publicly available website, or in other public forums or media, regarding the benefits of natural gas and rebates available. However, PSE will not use this Agreement to actively market fuel switching within the DISTRICT’S service territory. ARTICLE XIV. CONFIDENTIALITY

A. Each Party, including such Party’s officers, agents, and employees, shall hold and maintain as confidential all information in connection with the Program, the business of the other Party, the other Party’s financial affairs, and the other Party’s relations with its employees and customers, as well as any other information which may be specifically classified as confidential by the disclosing Party and sent to the other Party in connection with this Agreement. Both Parties shall not disclose and/or sell any private or proprietary customer information of the other Party (as those terms are defined in RCW 19.29A.010) to any third-party that is not a party to this Agreement.

B. If PSE provides the District with documents or “writings” (as defined in the Washington Public Records Act, Chapter 42.56 RCW) that PSE considers to be confidential or proprietary, PSE must prominently mark such documents “Confidential” upon all applicable pages or inform the District of that claim in writing regarding electronic records. If the District receives a public records request or a subpoena for any of those documents or “writings,” it will not release them, unless requested to do so by PSE, sooner than ten (10) days after giving PSE written notice in the manner provided herein to allow PSE to commence litigation to prevent the release. The entire expense of such litigation, including the District’s attorneys’


193/212

fees and costs and any amounts that the District is required to pay, specifically including any damages imposed upon the District for any failure or delay in releasing the records, shall be paid by PSE.

C. Provided the District complies with its obligations under this Article XIV, the District shall have no liability for releasing the documents or “writings” if PSE does not commence litigation, as established by court papers served upon the District, to prevent release within the ten (10) day notice period.

ARTICLE XV. DEBARMENT CERTIFICATION

A. PSE certifies to District that PSE is not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in this Agreement by any Federal department or agency. PSE shall immediately provide written notice to the District if at any time PSE learns that it has become debarred, suspended, proposed for debarment, declared ineligible or is voluntarily excluded from participating in this Agreement by any Federal department or agency, or if at any time PSE learns that this certification was erroneous when submitted or has become erroneous by reason of changed circumstances. In addition, PSE shall not award any subcontract under this Agreement to any party which is debarred, suspended or otherwise excluded from or ineligible for participation (as more fully described above) in any Federal assistance programs, except with the express written consent of the District.

B. District certifies to PSE that District is not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in this Agreement by any Federal department or agency. District shall immediately provide written notice to PSE if at any time District learns that it has become debarred, suspended, proposed for debarment, declared ineligible or is voluntarily excluded from participating in this Agreement by any Federal department or agency, or if at any time District learns that this certification was erroneous when submitted or has become erroneous by reason of changed circumstances. In addition, District shall not award any subcontract under this Agreement to any party which is debarred, suspended or otherwise excluded from or ineligible for participation (as more fully described above) in any Federal assistance programs, except with the express written consent of PSE.

ARTICLE XVI. INSURANCE

Each Party shall maintain in full force and effect throughout the term of this Agreement, a minimum of Two Million Dollars ($2,000,000) liability insurance for property damage and bodily injury. In satisfying the insurance requirements set forth in this section, each Party may self-insure against such risks. In addition, each Party shall maintain Workers Compensation insurance as required by the laws of the State of Washington. At the time of execution of this Agreement, and prior to commencement of performance of any work, each Party shall furnish, upon request, a Certificates of Insurance as evidence that policies providing insurance (or self-insurance) with such provisions, coverage's and limits are in full force and effect. ARTICLE XVII. NOTICES

All notices required to be given hereunder shall be deemed to be sufficiently given if delivered in person, by Electronic Mail, Facsimile, nationally recognized overnight courier, or if sent by U.S. Mail, postage prepaid, to the District’s Program Leader or to the PSE’S Program Leader at the addresses set forth above. Either Party may designate other addresses from time to time by giving written notice to the other Party. Notice given by U.S. Mail shall be presumed to be received three (3) days after mailing on any day other than a Sunday or a legal holiday. If the last day of the three (3) day period is a Saturday, Sunday or legal holiday the period shall be extended to the end of the next day which is neither a Saturday, Sunday or legal holiday. Notice given by nationally recognized overnight courier, if sent freight prepaid, shall be presumed to be received on the next business day, or upon written verification of receipt.


194/212

ARTICLE XVIII. NONWAIVER

The failure of the either Party to insist upon or enforce strict performance by the other Party of any provision of this Agreement, or to exercise any right under this Agreement, shall not be construed as a waiver or relinquishment to any extent of such Party’s right to assert or rely upon any such provision or right in that or any other instance; rather, the same shall be and remain in full force and effect.

ARTICLE XIX. ASSIGNMENT AND SUBAGREEMENTS

This Agreement shall not be assigned by either Party, either in whole or in part, without the prior written approval of the other. Any attempted assignment without such written consent shall be void.

ARTICLE XX. ENTIRE AGREEMENT

The District and PSE understand and agree that this document constitutes the whole Agreement between them and supersedes all other prior agreements and understandings, whether oral or written. This Agreement, and any Scopes of Work, shall not be modified or amended except by written amendment.

ARTICLE XXI. FAIR MEANING

The terms of this Agreement shall be given their fair meaning and shall not be construed in favor of or against either Party hereto because of authorship. This Agreement shall be deemed to have been drafted by both of the Parties.

ARTICLE XXII. SEVERABILITY

A. If a court of competent jurisdiction holds any part, term or provision of this Agreement to be illegal, or invalid in whole or in part, the validity of the remaining provisions shall not be affected, and the Parties’ rights and obligations shall be construed and enforced as if the Agreement did not contain the particular provision held to be invalid.

B. If any provision of this Agreement is in direct conflict with any statutory provision of the State of Washington, that provision which may conflict shall be deemed inoperative and null and void insofar as it may conflict, and shall be deemed modified to conform to such statutory provision.

ARTICLE XXIII. GOVERNING LAW AND VENUE

This Agreement shall be governed by the laws of the State of Washington (without regard to any conflicts of law principles applied in that State), with venue for any disputes in Snohomish County, Washington; provided that venue for any matter that is within the jurisdiction of the Federal Court shall be in the United States District Court for the Western District of Washington at Seattle, Washington. Each Party hereby irrevocably waives, to the fullest extent it may effectively do so, the defense of an inconvenient forum to the maintenance of proceedings in such courts.

To the maximum extent permitted by applicable law, each Party hereby waives their respective rights, if any, to a jury trial of any claim, controversy, dispute or cause of action directly or indirectly based upon or arising out of this Agreement or any of the transaction contemplated herein. Each Party represents that it has reviewed this waiver and each knowingly and voluntarily waives its jury trial rights following consultation with legal counsel. In the event of litigation, a copy of this Agreement may be filed as a written consent to a trial by the court.


195/212

ARTICLE XXIV. REPRESENTATIONS AND WARRANTIES

As of the Effective Date, and as of the date the Parties enter into a new SOW hereunder, each undersigned Party represents to the other Party as follows:

A. The undersigned Party has full power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement constitutes the valid and legally binding obligation of the undersigned Party, enforceable against the undersigned Party in accordance with its terms and conditions, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law).

B. Neither the execution and the delivery by the undersigned Party of this Agreement nor the consummation by the undersigned Party of the transactions contemplated hereby will violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or court to which the undersigned Party is subject or bound. The undersigned Party is not required to give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order for the parties to consummate the transactions contemplated by this Agreement.

EXCEPT AS SET FORTH HEREIN, NEITHER PARTY MAKES ANY WARRANTY TO THE OTHER WITH RESPECT TO THE PROGRAM OR THE SERVICES TO BE PROVIDED HEREUNDER, INCLUDING, WITHOUT LIMITATION, REPRESENTATIONS ABOUT THE AMOUNT OF ENERGY SAVINGS TO BE ACHIEVED THROUGH THE PROGRAM, OR WARRANTIES OF MERCHANTIBILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND EACH HEREBY DISCLAIMS ANY WARRANTY, WHETHER EXPRESSED OR IMPLIED, EXCEPT AS EXPRESSLY PROVIDED HEREIN OR IN AN AGREED SCOPE OF WORK.

ARTICLE XXV. LIMITATION OF LIABILITY

IN NO EVENT WILL EITHER PARTY OR ITS EMPLOYEES, OFFICERS AND DIRECTORS BE LIABLE TO THE OTHER PARTY FOR CONSEQUENTIAL, SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE OR EXEMPLARY DAMAGES, COSTS, EXPENSES, OR LOSSES (INCLUDING LOST PROFITS, LOST DATA, OR OPPORTUNITY COSTS), REGARDLESS OF THE FORM OF ACTION, DAMAGE, CLAIM, LIABILITY, COST, EXPENSE, OR LOSS, WHETHER IN CONTRACT, STATUTE, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE; PROVIDED, HOWEVER, THAT DAMAGES INCURRED BY A PARTY THAT RESULT FROM A THIRD PARTY CLAIM FOR DEATH OR BODILY INJURY FOR WHICH INDEMNIFICATION IS REQUIRED UNDER ARTICLE X SHALL BE CONSIDERED DIRECT DAMAGES, NOTWITHSTANDING THE CHARACTERIZATION OF THE DAMAGES IN THE UNDERLYING THIRD PARTY CLAIM.

ARTICLE XXVI. NO THIRD PARTY BENEFICIARIES

No person or entity, other than a Party to this Agreement, shall have the right to enforce any provision of this Agreement.

ARTICLE XXVII. COUNTERPARTS

This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same Agreement. Counterparts may be delivered via facsimile, electronic mail (including pdf) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.


196/212

IN WITNESS WHEREOF, the Parties hereto have entered into this Agreement as of the Effective Date: PUBLIC UTILITY DISTRICT NO. 1 PUGET SOUND ENERGY, INC. OF SNOHOMISH COUNTY By: By:

Pam Baley, Name:

Assistant General Manager Title:

Customer & Energy Services Date:

Date:


197/212


Meeting Date: July 7, 2020 Agenda Item: 5

TITLE

CEO/General Manager’s Report

SUBMITTED FOR: CEO/General Manager Report

CEO/General Manager John Haarlow 8473


Date of Previous Briefing:


ACTION REQUIRED:



Policy Decision

Statutory

SUMMARY STATEMENT:


The CEO/General Manager will report on District related items.

List Attachments:

None

198/212



TITLE

Commission Reports

SUBMITTED FOR: Commission Business



ACTION REQUIRED:



Policy Decision

Statutory

SUMMARY STATEMENT:

The Commissioners regularly attend and participate in meetings, seminars, and workshops and

report on their activities.

List Attachments:

None

199/212



TITLE:

Commissioner Event Calendar

SUBMITTED FOR: Commission Business



ACTION REQUIRED:



Policy Decision

Statutory

SUMMARY STATEMENT:


The Commissioner Event Calendar is enclosed for Board review.

List Attachments:

Commissioner Event Calendar

200/212

Commissioner Event Calendar – 2020

**For Planning Purposes Only and Subject to Change at any Time**

July 2020 August 2020 July 8 - 10: Public Power Council/PNUCC Meetings Portland, OR (Tentative)

July 29: Energy Northwest Board of Directors Meetings Tri-Cities, WA (Tentative)

August 5 - 7: Public Power Council/PNUCC Meetings Portland, OR (Tentative)

201/212



September 2020 October 2020 September 2 - 4: Public Power Council/PNUCC Meetings Portland, OR (Tentative)

September 30 – October 2: Public Power Council/PNUCC Meetings Portland, OR (Tentative)

October 22: Energy Northwest Board of Directors Meeting Tri-Cities, WA (Tentative)

202/212



November 2020 December 2020 November 4 - 6: Public Power Council/PNUCC Meetings (Annual Meeting) Portland, OR (Tentative)

203/212



TITLE

Governance Planning Calendar

SUBMITTED FOR: Governance Planning



ACTION REQUIRED:



Policy Decision

Statutory

SUMMARY STATEMENT:


Governance Process, Agenda Planning, GP-4: To accomplish its job products with a governance

style consistent with Board policies, the Board will follow an annual agenda ….

The Planning Calendar is enclosed for Board review.

List Attachments:

Governance Planning Calendar

204/212

Governance Planning Calendar – 2020


To Be Scheduled To Be Scheduled

• Community Choice Aggregation (CCA) • Energy Services (1st Quarter 2020) • Real Estate Properties • Energy Efficiency Projects Update

• WPUDA Membership Pros/Cons • Climate/Environmental Policy • Board’s Role, Including Statutory

Responsibility, in Bid Process

205/212



July 7, 2020 July 21, 2020 Morning Session:

• Proposed Small Renewables ProgramPower Purchase Agreement BetweenSnohomish PUD and Washington StateDepartment of Transportation

• Overview of Snohomish PUD’s EnergyResources and State Energy RegulatoryRequirements

• Electric Transportation Plan Update• Debt Management Opportunities Update

Afternoon Session: • Monitoring Report:Asset Protection Monitoring Report

• Governance Planning Calendar

Morning Session: • Sound Transit Easement

• Energy Services Update

• Moss Adams Presentation

• Connect Up Program Planning Report

Afternoon Session: • Governance Planning Calendar

206/212



August 4, 2020 August 18, 2020 Morning Session:

• Community Engagement • Plat Contracts • Integrated Resource Plan (IRP) Briefing

Phase 1

Afternoon Session: • Public Hearing and Action: Sound Transit Easement

• Monitoring Report: 2nd Quarter Financial Conditions and Activities Monitoring Report


Morning Session: • Community Engagement • Energy Risk Management Report – 2nd

Quarter

• Water Supply Update

• 2021 Load Forecast

• Integrated Resource Plan (IRP) Briefing Phase 2

Afternoon Session: • 2021 Preliminary Budget – Report of

Filing and Notice of Public Hearing • Governance Planning Calendar

207/212



September 1, 2020 September 15, 2020 Morning Session:

• Community Engagement • Customer Service Update • Distributed Energy Resources (DER) -

Update Afternoon Session:


Morning Session: • Community Engagement • Qualco Update • Battery/Energy Storage Update

Afternoon Session:

• Public Hearing and Action: Disposal of Surplus Property – 4th

Quarter • Governance Planning Calendar

208/212



October 5, 2020 October 20, 2020 Morning Session:

• Community Engagement

Afternoon Session: • Public Hearing: Open 2021 Proposed Budget Hearing


Morning Session: • Community Engagement • Energy Risk Management Report – 3rd

Quarter • Water Supply Update

Afternoon Session: • Governance Planning Calendar

209/212



November 3, 2020 November 17, 2020 Morning Session:


Afternoon Session:

• Public Hearing: Continue Public Hearing on the 2021 Proposed Budget

• Monitoring Report: 3rd Quarter Financial Conditions and

Activities Monitoring Report • Adopt Regular Commission Meeting

Dates for the Year 2021 • Governance Planning Calendar

Morning Session: • Community Engagement

Afternoon Session: • Public Hearing: Continue Public Hearing on the 2021 Proposed Budget including Detailed Capital Review and Planning


210/212



December 1, 2020 December 15, 2020 Morning Session:


• 2020 Audit Summary

Afternoon Session: • Public Hearing: Continue Public Hearing on the 2021

Proposed Budget • Monitoring Report: Financial Planning and Budgeting

Monitoring Report • Elect Board Officers for the Year 2021 • Proposed 2021 Governance Planning

Calendar

Morning Session: • Community Engagement

Afternoon Session: • Public Hearing and Action: Disposal of Surplus Property - 1st

Quarter Adopt 2021 Budget Confirm Final Assessment Roll for LUD

• Adopt 2021 Governance Planning Calendar

211/212

2020 Year-at-a-Glance Calendar

January February March April S M T W T F S S M T W T F S S M T W T F S S M T W T F S

1 2 3 4 1 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 10 11 2 3 4 5 6 7 8 8 9 10 11 12 13 14 5 6 7 8 9 10 11

12 13 14 15 16 17 18 9 10 11 12 13 14 15 15 16 17 18 19 20 21 12 13 14 15 16 17 18 19 20 21 22 23 24 25 16 17 18 19 20 21 22 22 23 24 25 26 27 28 19 20 21 22 23 24 25 26 27 28 29 30 31 23 24 25 26 27 28 29 29 30 31 26 27 28 29 30

May June July August S M T W T F S S M T W T F S S M T W T F S S M T W T F S

1 2 1 2 3 4 5 6 1 2 3 4 1 3 4 5 6 7 8 9 7 8 9 10 11 12 13 5 6 7 8 9 10 11 2 3 4 5 6 7 8

10 11 12 13 14 15 16 14 15 16 17 18 19 20 12 13 14 15 16 17 18 9 10 11 12 13 14 15 17 18 19 20 21 22 23 21 22 23 24 25 26 27 19 20 21 22 23 24 25 16 17 18 19 20 21 22 24 25 26 27 28 29 30 28 29 30 26 27 28 29 30 31 23 24 25 26 27 28 29

31 30 31 September October November December

S M T W T F S S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 5 1 2 3 1 2 3 4 5 6 7 1 2 3 4 5

6 7 8 9 10 11 12 4 5 6 7 8 9 10 8 9 10 11 12 13 14 6 7 8 9 10 11 12 13 14 15 16 17 18 19 11 12 13 14 15 16 17 15 16 17 18 19 20 21 13 14 15 16 17 18 19 20 21 22 23 24 25 26 18 19 20 21 22 23 24 22 23 24 25 26 27 28 20 21 22 23 24 25 26 27 28 29 30 25 26 27 28 29 30 31 29 30 27 28 29 30 31

Holiday

Commission Meeting

212/212

July 7, 2020€¦ · Mukilteo Ferry Terminal - 154 kW Rooftop Solar Photovoltaic System Presenters:...

Documents

Transcript of July 7, 2020€¦ · Mukilteo Ferry Terminal - 154 kW Rooftop Solar Photovoltaic System Presenters:...