07/16/1980 Meeting - Laserfiche WebLink

Home Browse Search

Don Gilman, Public Works, stated that this project goes along with the tiedown . contract and it would' be 90-percent funded by the FAA. He urged the council to approve this item. Public hearing was opened. There being no testimony, public hearing was closed. Ms. Smith moved, seconded by Mr. Lieuallen, to approve and award the contract, subject to FAA approval. Roll call vote; motion carried unanimously. IV. NORTHWEST REGIONAL ENERGY BILL--QUESTION-AND-ANSWER SESSION (memo distributed) Mr. Henry introduced Greg Page, Technology Coordinator, City Manager's Office, to provide background information. The basic emphasis of the legislation, as far as the council should be concerned, is that it significantly alters the role and the control of the City and EWEB in conservation and new generation. If legislation were to pass, control would be by a Federally appointed council, and on a regional basis rather than a local basis. Locally, conservation has been dealt with by working with the City Council's Energy Conservation Policy Board and EWEB to make it cost-effective rather than promoting new generation. The theory has been that the rate payer will benefit directly from conservation rather than the cost of new generation. This has worked locally. e Mr. Lieuallen asked for examples of the current rate and what the cost would be for new generation, including conservation. Mr. Page responded that current rates are 1.5 cents per kilowatt hour and the cost of new generation is approxi- mately 4.0 cents per kilowatt hour. Conservation costs less than 2 cents per kilowatt hour. It is unclear how conservation and the role of the council would be affec~ed if the legislation were passed. The Federal council advising the BPA administrator would be selected by the Federal Secretary of Energy. The proponents of the bill state that the administrator of this council would set standards for each utility and then they would be given differential preference rates on the wholesale rate of power when compliance is achieved, and it would be up to the local utilities to implement. The opponents disagree, saying that the Federal government has a track record of not involving local governments and there is no reason to think that this council will be able to set adequate standards. They believe that this would entail another layer of government taking control and mandating actions with no input from local governments. Also, the cost of enforcement may be passed on to the local government. At present, EWEB is receiving a preferential customer rating with lower rates from Bonneville Power Administration. They are given a certain allocation of power to take care of the needs of EWEB and their load growth until 1990. At that time EWEB will need approximately 100 megawatts to generate with their own resources and contracts. EWEB is currently responsible for their load growth, which is now approximately 10 megawatts per year, and growing at six percent a year. With conservation, it is hoped that the rate of increase would drop to four percent. EWEB's plans for new generation are not clear, nor is the role of the e 7/16/80--7