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CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
FEBRUARY 22, 2023
The agenda having been posted on Thursday, February 16, 2023, the Public Hearings/Regular Meeting of the Public Utilities Board (Board) was called to order by Chairperson Seymour at 5:00 p.m. on Wednesday, February 22, 2023, in the Gordon Hoyt Conference Center, 2nd floor, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, California.
Board Members Present: Chairperson J. Seymour, Vice-Chairperson A. Abdulrahman, M. L ee, A. Pham, A. McMenamin
Board Members Absent: T. Bilezikjian, District 4 Board Member Vacancy City Staff Present: D. Lee, P. Starr, A. Kott, B. Beelner, J. Lehman, M. Avelino-W alker, C. Parker, F. Barvarz, T. Castaneda, M. Seifen, A. Nguyen, T. Chen, A. Lee, B. Mendoza, M. Martin, T. Mardikian, P. Bogdanoff, J. Galvan, K. Tran, V. Tran
Guest(s) Present: Ronald Bengochea - Resident, Jane Summ er - Resident, Judy Summer -
Resident, Susan Sutter - Resident, David Betancourt and Family, Lisa A.
Augustine - Court Reporter, CSR # 10419, J. Villaseñor - Orange County Translation & Interpretation Services
AGENDA ITEM ACTION TAKEN
1. OATH OF OFFICE: NEW PUBLIC UTILITIES BOARD
MEMBER. **
A Kott, Assistant City Attorney, administered the Oath of Office to the newly elected member of the Board, Albert McMenamin – District 3.
2. RE
COGNITION: METROPOLITAN WATER DISTRICT
(MWD) POSTER CONTEST WINNER.
C. Parker, Acting Assistant General Manager – Water Services, presented a
Certificate of Recognition to David Betancourt, 2nd grade student from Acaciawood Preparatory Academy, for his winning art submission to the Metropolitan Water District of Southern California (MWD) Water Poster Contest.
3. PUBLIC COMMENTS.
Chairperson J. Seymour invited the public to speak on matters, other than the public hearing items.
Ron Bengochea, resident, asked the Board to support the Veterans Cemetery in Anaheim.
There being no electronic or
other oral public comments,
Chairperson J. Seymour
closed the public comments of
the meeting.
ITEM # 01
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4. APPROVAL OF THE MINUTES OF THE PUBLIC UTILITIES
BOARD MEETING OF JANUARY 25, 2023. *
A. Abdulrahman moved the
approval of the Minutes of the
Public Utilities Board Regular
Meeting of January 25, 2023.
M. Lee seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 1 [T. Bilezikjian].
5. PRESENTATION: COMMUNITY AND SUSTAINABILITY
PROGRAMS UPDATE.
M. Avelino-Walker, General Services Manager, introduced T.
Castaneda, Community & Sustainability Programs Manager, to share how Anaheim Public Utilities (APU) has achieved its organizational program goals through collaboration, sustainable programs, and engagement.
T. Castaneda shared a summary of APU accomplishments over the past year to help customers become more efficient, save money on their bills, and help the environment. T Castaneda indicated that APU is implementing State goals for de-carbonization to help customers become more sustainable.
To meet California’s regulatory policies and be carbon-free by the year 2045, APU relies on collaborative partnerships with local stakeholders. T. Castaneda elaborated on an effort to help local schools transition to electric school bus fleets through APU’s fleet rebate program. APU offers and manages over 40 residential energy efficiency programs, rebates, and income qualified programs. APU offers and manages over 15 commercial energy efficiency programs and rebates.
T. Castaneda shared key highlights including that there was an average annual energy savings of 3.1 million kWh, and a reduction of 2,197 metric tons of greenhouse gases from the atmosphere, which is equivalent to removing 473 gas-fueled vehicles off the road.
Pandemic-related impacts to program participation and energy-saving targets have been reported to State regulators. Senate Bill 1037 requires utilities to establish 10‐year energy efficiency targets, and to update those targets every 4 years. APU’s current annual savings target goal is 0.49% of annual electric revenue sales.
Water conservation programs are also driven by regulatory policies such as Senate Bill X7-7, which sets a daily water reduction goal of 20% gallons per capita per day. APU exceeded its SB X7-7 target of reducing 20% gallons per person per day by 2020.
APU facilitates many student programs including student scholarships, the Sustainable Schools Award, mentorship programs,
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in-classroom learning activities, and field trips to Oak Canyon Nature Center and the Lenain Water Treatment Plant. These programs were developed with the intent to educate as well as inspire students to consider a utilities career path.
APU provides a variety of customer outreach events, and facilitated over 70 events last year including the OC Green Expo and smaller neighborhood events. Designing and adjusting programs quickly to meet the needs of customers is a vital component of being a locally owned utility.
6. PRESENTATION: PER-AND POLY-FLUOROALKYL
SUBSTANCES (PFAS) UPDATE.
C. Parker briefed the Board on per- and poly-fluoroalkyl substances (PFAS) and discussed what PFAS chemicals are and their origination.
He also updated the Board on current regulations, and explained that there is a new regulation for PFHxS (Perfluorohexane Sulfonic Acid), and that a notification level has been established. Staff is currently coordinating with other stakeholders and the Board will receive the notification in the near future. He then outlined APU’s three pronged strategy to mitigate PFAS – safety, treatment, and cost recovery. C.
Parker then updated the Board on APU’s Groundwater Treatment Program (GWTP) to mitigate PFAS. C. Parker briefed the Board on the schedule, which includes producing potable water from the GWTP by the end of the calendar year.
The Board asked if there will be future wells to treat for PFAS. C.
Parker responded that APU may have to treat additional wells if the Federal Maximum Contaminant Levels are promulgated as proposed.
The Board asked how the standards for new contaminants would be developed, and C. Parker explained that a possible approach would be to aggregate various constituents.
7. JOINT PUBLIC HEARING: PROPOSED INCREASES TO THE
WATER COMMODITY ADJUSTMENT (W-CA) AND WATER
SYSTEM RELIABILITY ADJUSTMENT (W-SRA) RATES
WITH CORRESPONDING REVISIONS TO SCHEDULES W-
CA AND W-SRA **, AND PROPOSED MODIFICATIONS TO
RULE NO. 23 (CUSTOMER SERVICE FEES AND CREDITS)
OF THE WATER RATES, RULES AND REGULATIONS; AND
DETERMINATION THAT THESE MODIFICATIONS ARE
EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT (CEQA) PURSUANT TO THE PUBLIC
RESOURCES CODE SECTION 21080(B)(8), AND SECTIONS
15061(B)(3) AND 15273(A) OF TITLE 14 OF THE CALIFORNIA
CODE OF REGULATIONS. *
The Public Hearing was called to order by Chairperson J. Seymour.
APU presented prepared
testimony and oral testimony
in support of its proposed (1)
water rate increase
to the
Water Commodity
Adjustment (W-CA) and
Water System Reliability
Adjustment (W-SRA) and (2)
the proposed modifications to
Rule No. 23 of the Water
Rates, Rules and Regulations.
Upon the completion of the
testimony and opportunity for
public comments, Chairperson
J. Seymour entertained the
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B. Beelner, Assistant General Manager – Finance and Energy Resources, presented oral testimony explaining that APU is proposing to increase the Water Commodity Adjustment (W-CA) and Water System Reliability Adjustment (W-SRA) of the Water Rates, Rules and Regulations. The rate proposal will help to recover increasing wholesale water costs, primarily driven by the increased amount of imported water needed until groundwater can be more fully accessed, and provide capital funding to address aging pipelines and other capital infrastructure needs.
B. Beelner also noted proposed modifications to Rule No. 23 which would adjust the fee schedule to recover costs related to theft or tampering of water service equipment, and consolidate the list of courtesy credits to a single line allowing a credit of up to $50 for customers experiencing an incidental billing error, missed appointment, or other inconvenience through no fault of their own.
D. Lee, Public Utilities General Manager, stated that approximately 82,881 Notices of Public Hearing were mailed and, of those, 1,528 notices were in Spanish and 81,353 notices were in English. Of these Notices, approximately 61,999 were mailed to property owners and approximately 20,882 were mailed to customers of record. He also shared that there were 37 customer service phone calls, and 9 written protests were received as of the public hearing date.
Upon conclusion of the foundational testimony, the Board asked what will happen to water rates as APU transitions back to its traditional mix of groundwater versus imported water, since the lower cost of groundwater should lower supply costs. B. Beelner responded by indicating that if nothing changes, the W-CA will presumably decrease in future years; however, there are other cost impacts that could affect the W-CA.
After Board questions, Chairperson J. Seymour asked if there were any members of the public who would like to speak either in favor of or in opposition to the proposed modifications to the Water Rates, Rules and Regulations concerning the Water Commodity Adjustment and Water System Reliability Adjustment or the Rule related to customer service fees and credits. No public comments were made.
Afterwards, D. Lee provided some closing remarks.
following motion from A.
Kott, who moved that all
evidence, oral and written,
submitted by staff, including
the Prepared Testimony with
exhibits of B. Beelner; the
Affidavits of Publication of
the Notices of Public Hearing;
the Certificate of Mailing; the
written protests filed with the
Secretary of the Board
become part of the record and
submitted into evidence.
Chairperson J. Seymour
granted A. Kott’s motion.
Chairperson J. Seymour next
entertained A. Kott’s request
to close the record of the
public hearing because there
were no further witnesses or
evidence to be submitted by
APU for the Board’s
consideration. Since no
objections to A. Kott’s request
were interposed, Chairperson
J. Seymour closed the Public
Hearing.
Chairperson J. Seymour
summarized the prior
testimony of D. Lee and noted
that the number of protests
received did not constitute a
majority protest
to the
proposed increases to the W-
CA and W-SRA. Based on the
forgoing, Chairperson J.
Seymour concluded that the
increases to the W-CA and W-
SRA are in effect on March 1,
2023 and April 3, 2023,
respectively, as guided by
applicable state laws.
A. Abdulrahman moved that
the Board recommend to the
City Council, by resolution,
that it (1) determine that the
modifications to the Water
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Rates, Rules and Regulations
are exempt under CEQA; and
(2) approve the proposed
modifications to Rule No. 23
of the Water Rates, Rules and
Regulations. A. Pham
seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 1 [T. Bilezikjian].
8. JOINT PUBLIC HEARING: PROPOSED MODIFICATIONS TO
SCHEDULE TOU (TIME-OF-USE), THE CLOSURE OF
DEVELOPMENTAL SCHEDULE D-EV (DEVELOPMENTAL
ELECTRIC VEHICLE), AND PROPOSED MODIFICATIONS
TO RULE NO. 23 (CUSTOMER SERVICE FEES AND
CREDITS) OF THE ELECTRIC RATES, RULES AND
REGULATIONS; AND DETERMINATION THAT THESE
MODIFICATIONS ARE EXEMPT UNDER THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO
THE PUBLIC RESOURCES CODE SECTION 21080(B)(8), AND
SECTIONS 15061(B)(3) AND 15273(A) OF TITLE 14 OF THE
CALIFORNIA CODE OF REGULATIONS. *
The Public Hearing was called to order by Chairperson J. Seymour.
B. Beelner presented oral testimony explaining that APU is proposing rate and rule modifications to the Electric Rates, Rules and Regulations.
B. Beelner discussed the proposed closing of the residential Electric Vehicle Developmental Schedule (D-EV) to additional customers.
Current customers choosing this rate option must pay for a separate electric sub-panel to measure their EV usage, which may have hindered adoption of this rate option. Closing the D-EV to additional customers while evaluating sub-metering technology may reduce out- of-pocket costs for customers and promote greater EV adoption. The 62 customers currently on this rate may remain on it as this proposal will not impact those customers.
B. Beelner also discussed the proposed changes to the Time-Of-Use (TOU) rate schedule that currently serves approximately 30 commercial and industrial customers. The proposal allows eligible customers, who may have properties spanning adjacent parcels (similar to a campus configuration), the option and convenience of totalizing their bill, provided their energy demand is 4 MW or greater.
Another proposal for TOU involves shifting the 6 a.m. - 8 a.m. time period in the winter season from mid-peak to off-peak, so customers find it easier to understand their rate plan and optimize their energy usage accordingly.
APU presented prepared
testimony and oral testimony
in support of its proposed rate
and rule modifications to the
Electric Rates, Rules and
Regulations.
Upon the completion of the
testimony and opportunity for
public comments, A. Kott
moved that all evidence, oral
and written, submitted by
staff, including the Prepared
Testimony with exhibits of B.
Beelner; and the Affidavits of
Publication of the Notices of
Public Hearing become part of
the record and submitted into
evidence. Chairperson J.
Seymour granted A. Kott’s
motion.
Chairperson J. Seymour next
entertained A. Kott’s request
to close the record of the
Public Hearing because there
were no further witnesses or
evidence to be submitted by
APU for the Board’s
consideration. Since no
objections to A. Kott’s request
were interposed, Chairperson
J. Seymour closed the public
hearing.
A. Abdulrahman moved that
the Board recommend to the
City Council, by resolution,
that it determine that the
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Lastly, B. Beelner discussed the proposed changes to Rule No. 23 for electric fees to bill for actual labor and materials charges versus applying an outdated fixed fee for investigating and repairing equipment damage, typically the result of attempted theft of utility service. The last proposal is to consolidate the list of courtesy credits to a single line allowing a credit of up to $50 for customers experiencing an incidental billing error, missed appointment, or other inconvenience through no fault of their own.
In conclusion, B. Beelner indicated that APU periodically proposes changes to Rates, Rules, and Regulations not only to recover costs, but to provide customers with additional convenience and options.
Upon conclusion of the foundational testimony, Chairperson J.
Seymour asked if any member of the Board had questions for staff.
No member of the Board had any questions.
Chairperson J. Seymour then asked if there were any members of the public who would like to speak either in favor of or in opposition to the proposed modifications to the Electric Rates, Rules and Regulations including the Rule related to customer service fees and credits There were no public comments. D. Lee provided some closing remarks.
A verbatim transcript of the public hearings with all testimony and exhibits that were a part of the public hearings was prepared by the Court Reporter. The certified original transcript is on file in the 11 th
floor Department Records, Public Utilities Department, Anaheim West Tower. A certified copy of the original transcript is on file in the City Clerk’s Office, 2nd floor, City Hall.
modifications to the Electric
Rates, Rules and Regulations
are exempt from CEQA and
approve the proposed rate and
rule modifications to the
Electric Rates, Rules and
Regulations. M. Lee seconded
the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 1 [T. Bilezikjian].
9. APPROVE THE LOW-INCOME HOME ENERGY
ASSISTANCE PROGRAM DIRECT PAYMENT AGREEMENT
TEMPLATE WITH THE STATE OF CALIFORNIA
DEPARTMENT OF COMMUNITY SERVICES AND
DEVELOPMENT, THE FINAL FORM OF SUCH
AGREEMENT SHALL BE CONCLUSIVELY EVIDENCED BY
THE EXECUTION AND DELIVERY THEREOF. *
J. Lehman, Assistant General Manager – Administration and Risk Services, requested that the Board recommend participation in the State’s Low Income Home Electric Assistance Program (LIHEAP), and authorize APU’s General Manager to execute the final form of the agreement. She explained that this program would provide eligible customers with one-time assistance on their electric bill of up to $3,000 based on their income. Qualification for assistance, requires that a resident’s income must be below 60% of the state median income; for a family of four, the income level is currently about $62,000. APU has participated in this program since 2003. The A. Pham moved approval for a
Low-Income Home Energy
Assistance Program Direct
Payment Agreement with the
State of California Department
of Community Services and
Development. M. Lee
seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 1 [T. Bilezikjian].
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agreement has not yet been finalized by the State, but staff discussions were that it would very similar terms, and therefore authorization is being sought now to avoid any lapse in program availability.
10. BY RESOLUTION, AUTHORIZE THE PUBLIC UTILITIES
GENERAL MANAGER OR DESIGNEES TO SUBMIT, ON
BEHALF OF THE CITY OF ANAHEIM (ANAHEIM),
APPLICATIONS FOR ANY AND ALL FEDERAL, STATE,
AND/OR LOCAL GRANTS, REBATES, AND OTHER
FUNDING OPPORTUNITIES TO OFFSET THE COST OF
UPGRADES, IMPROVEMENTS, PLANS, PROGRAMS, OR
INNOVATIVE TECHNOLOGICAL ADVANCEMENTS TO
ANAHEIM’S PUBLIC UTILITIES INFRASTRUCTURE,
OPERATIONS, AND TECHNOLOGY SYSTEMS; TO ACCEPT
SUCH GRANT AND REBATE FUNDING AS AWARDED AND
PROVIDE MATCHING FUNDS, WHERE APPLICABLE; AND
TO TAKE SUCH ACTIONS IN FURTHERANCE OF SUCH
GRANTS AND REBATES, INCLUDING THE EXECUTION OF
ANY AGREEMENTS AND OTHER DOCUMENTS
NECESSARY OR ADVISABLE IN THE FURTHERANCE OF
THE RECEIPT OF SUCH GRANTS AND REBATES; AND
DETERMINE THAT THIS RESOLUTION IS EXEMPT FROM
THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
(CEQA) PURSUANT TO SECTIONS 15004(B)(4), 15060(C)(2)-
(3), 15061(B)(3), 15352(A), AND 15378(B) OF TITLE 14 OF THE CALIFORNIA CODE OF REGULATIONS. *
D. Lee made the Board aware of two new Federal Grant opportunities introduced under the Biden Administration, the Infrastructure and Jobs Act and the Inflation Reduction Act. Each grant opportunity utilizes various means of distributing funds, either by Federal or State agencies. Due to the processes associated with these grant applications, APU is requesting a recommendation from the Board that the City Council authorize staff to apply for these grants and other funding opportunities. If grant funds are received and a budget amendment is required, that amendment will be brought to the Board and City Council for their consideration. If receipt of grant funds results in a new project, it will need to be approved through the normal processes. The authorization sought would allow APU to streamline the application and receipt of grants.
D. Lee asked F. Barvarz, Acting Assistant General Manager – Electric Services, to provided examples of APU projects that would benefit from a streamlined grant application process under the proposed authorization request. These projects include power system hardening, replacement of infrastructure, undergrounding of overhead power lines, system automation, de-carbonization programs and rebates, water use efficiency improvements and emergency planning.
M. Lee moved that the Board
recommend to the City
Council, by resolution, that it
determine that the submissions
of applications for any and all
Federal, State or Local grants,
rebates, and other funding
opportunities are exempt from
CEQA and authorize the
Public Utilities General
Manager, on behalf of
Anaheim, to take such actions.
A. McMenamin seconded the
motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 1 [T. Bilezikjian].
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Chairperson J. Seymour asked if grant funding is received for a project such as undergrounding, will this mean the project will move faster, or will the budget remain the same and the grant money is passed on to reduce rates. D. Lee responded that grant money would help accelerate projects, while also allowing APU to recover the most amount of funds possible.
11. UPDATE ON ELECTRIC SYSTEM ITEMS.
F. Barvarz provided updates on Electric Services and described the repair work following a fire on a wood utility pole jointly-owned with Southern California Edison (SCE). F. Barvarz explained that the fire was caused by suspected arson impacting nearby trees that spread to the pole and caused extensive damage to the overhead electric and telecommunication lines. The repairs required resources and sequencing of work among SCE, APU, and telecommunication companies.
F. Barvarz then made the Board aware of a phone call received by Electric Operations on February 9, 2023, requesting assistance to open an underground vault cover where a cat was stuck. Even though the vault was for a storm drain system, APU’s troubleshooter unbolted and opened the vault cover allowing Orange County Animal Rescue access and rescue to the cat.
12. UPDATE ON WATER SYSTEM ITEMS.
C. Parker updated the Board on the current water supply condition.
C. Parker presented photographs of Lake Oroville showing how recent storms have dramatically increased storage. The Groundwater Basin is in good condition, as is the State Water Project. The Colorado River is still strained. However, due to the increased storage in the State Water Project, MWD is not going to proceed with mandated reduction of imported water by Anaheim and other agencies. The Board inquired about the Governor asking State agencies to not release as much water to the rivers from the dams as was done in the past for fish so more water can be kept in storage. C.
Parker explained that the Governor indicated that fish are still protected and more storage can be obtained.
13. UPDATE ON FINANCE & ENERGY RESOURCES ITEMS.
B. Beelner discussed the monthly Finance Dashboard with the Board through January 2023. B. Beelner discussed that year to date water revenue was 2.6% ($1.6M) below budget due to ongoing
conservation measures undertaken by customers. Water operating costs fell below budget by 4.4% ($2.2M) causing a net positive budget variance of $0.6M. B. Beelner then shared that the year to date electric revenue was 14.7% above budget ($36.2M) due to increased wholesale revenue driven by much higher than normal wholesale
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energy prices which were caused by extreme spikes in natural gas prices. Electric costs for the fiscal year were above budget as well by
13.3% ($31.8M) also due to higher than expected fuel and energy prices causing a net positive budget variance of $4.4M.
B. Beelner made the Board aware that, due to the higher energy and fuel costs, APU will seek a recommendation from the Board in March for an amendment to the budget. B. Beelner mentioned that APU will, in all likelihood, exceed its annual budget appropriation which will require an increase to the budget. However, APU has sufficient revenue from wholesale sales to cover these increased costs and is not seeking an electric rate increase.
B. Beelner then discussed the Power Supply Dashboard and the recent drop in natural gas prices as gas supplies have largely returned to normal in Southern California. B. Beelner reminded the Board that natural gas prices in December averaged approximately $31 per Million British Thermal Units (MMBTU), but dropped to $18 per MMBTU in January and dropped to a current price of $7.50 which should moderate wholesale revenue and energy costs.
14. UPDATE ON ADMINISTRATION & RISK SERVICES ITEMS.
J. Lehman provided an update on the Internal Compliance Plan. She shared that there had been a violation related to sampling wells in a timely manner, and that while no penalty was expected, practices were being changed to improve sampling procedures. All other programs were in compliance.
She then invited the Board’s attention to the Wholesale Energy Risk Management (ERM) Program’s Quarterly Compliance report for the first quarter of Fiscal Year 2022. She indicated that during this period there were no violations of the ERM Program, and that all transactions were within the ERM requirements.
J. Lehman then invited the Board’s attention to the Administration and Risk Services Dashboard. She highlighted three bills of interest.
J. Lehman then reviewed the safety metrics.
15. ITEMS BY SECRETARY.
D. Lee shared agenda items planned for next month:
Appointment of 3 Members to the Bottled Water Art ad hoc Selection Committee
Appointment of 3 Members to the Student Scholarship ad hoc Selection Committee
Physical Security of Electrical Facilities Presentation Colorado River Update
Annual Safety Services Update
FY23 Power Supply Budget Amendment