Electric City Power, Incorporated (The Corporation): Regular meeting of the Board of Directors
Great Falls Civic Center, Gibson Room
CALL TO ORDER: 5:30 PM
ROLL CALL: Directors present: Bob Pancich, George Golie, Bill Ryan and Dawn Willey. Also present were the ECPI Executive Director, City Administrative Officer, City Manager, and Assistant City Manager.
Excused: Director Randy Gray
EXECUTIVE DIRECTOR REPORT
Executive Director Coleen Balzarini gave her report. She explained that the mercury information included with the Board’s materials was produced by the Western Education Foundation for Resources. The materials address statements made by the Montanan Environmental Information Center (MEIC) on mercury. Chairman Bob Pancich noted that he found the information very helpful and encouraged others to review the booklet.
The Executive Director then reviewed the City’s experiences with the Energy and Telecommunications Interim Committee (ETIC) of the Montana Legislature. The City, through its representative Harley Harris, Esq., requested that the ETIC include two amendments aimed at protecting and enhancing the City’s role as an electricity supplier in its bill draft LC 170. The committee did not include these amendments.
Chairman Pancich asked Balzarini if the draft, in its current form, would disallow the City’s current energy supply operations. She responded that under the draft, contracts executed before the bill’s passage would continue, but that no new supply operations could happen after the bill’s effective date.
George Golie then asked if the City would introduce its own bill. City Manager John Lawton explained that that is an option. The City’s priorities, he continued, are to protect the City’s current role as a supplier and possibly to become the public utility for the City of Great Falls, contingent upon approval by the City Commission.
Board members Ryan and Golie both urged staff to work with legislators to enter bill requests reflecting the City’s objectives.
Coleen Balzarini next updated the board on ECPI’s small customer supply program currently before the Montana Public Service Commission (PSC). The PSC approved the City’s petition on September 26, 2006 and will allow ECPI to begin supplying electricity to a limited number of homes and small businesses upon the PSC’s receipt and approval of a Standard Service Offer document. The PSC’s Order of September 26, 2006 allows the program to continue for five years. Balzarini noted that this will be a good opportunity for the City to familiarize itself with serving small electricity customers.
The Chairman added a discussion of the City's cogeneration facility at the wastewater treatment plant to the Old Business portion of the agenda. Coleen Balzarini briefed the Board on the biogas-fired generator and noted that the construction engineering is about 95 percent complete and that the facility should be operational in the first quarter of 2007.
Chairman Pancich also added a discussion of the Draft Environmental Impact Statement (DEIS) for Highwood Station. Balzarini advised the Board that the plant developers expect the final EIS to be issued in December of 2006 with a record of decision sometime in the first quarter of 2007. She also noted that representatives from Southern Montana Electric Generation and Transmission Cooperative (SME) will be meeting with various interest groups concerned with the DEIS’ identification of Highwood Station’s potential impact on the Lewis and Clark Portage Route near Great Falls to discuss ways to mitigate the plant’s impact.
Chairman Bob Pancich added a discussion of Montana Governor Brian Schweitzer’s announcement that a deal had been reached to construct a coal to liquids facility in eastern Montana.
City Manager John Lawton noted that his comments were on behalf of the City and that he could not comment on the reaction of SME to the announcement. Lawton stated the he knew relatively little about the details of the project and briefly compared the two projects. He noted that the financings appear to be quite different in that the City’s share of financing for Highwood Station would be debt financing and that the proposed Bull Mountain project would likely have equity investors. He also stated that the timelines for the two projects are relatively far apart, with SME members needing electricity in 2008. He also noted that the City was supportive of the project and that it would help to address energy issues in Montana. Board Member Bill Ryan noted that the owners of the coal to be used are involved in the project and that this would be very advantageous to the overall financing package. John Lawton noted that he has invited the Governor’s staff to make a presentation to the Great Falls City Commission.
Public Comment
Rich Liebert stated that he sits on the steering committee for the 25 by ’25 national initiative on renewable energy. The goal of the initiative is to have 25 percent of the nation’s energy consumption come from renewable sources by the year 2025. He also noted that this effort could help revitalize rural America. The Farmers’ Union would be happy to present on this topic if the Board would like. He also encouraged people to visit the initiative’s web site at www.25x25.org
Ken Thorton said that he was concerned with the carbon dioxide emissions that would come from Highwood Station and that IGCC technology can easily sequester carbon dioxide. He noted that a carbon tax is likely and this would affect the cost of power from Highwood Station. Thorton continued that SME’s reliance on Highwood Station would overly expose its customers to the affects of a carbon tax.
In response to Mr. Thorton’s comments, City Manager John Lawton noted that Highwood Station would in fact be a part of a balanced SME portfolio consisting of renewable sources as well as power from Highwood Station. He noted that it is important to cover base load requirements first and then to add other sources of electricity next.
Bill Zucconi asked several questions relating to the definition of the term “equity,” and also asked about the City’s financial participation in the proposed Highwood Station. Executive Director Coleen Balzarini explained that the Great Falls City Commission has authorized up to $2 million in development costs.
Chairman Bob Pancich adjourned the meeting at 6:20PM
Agenda Packet ( 80k scanned PDF)
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