6th Annual Municipal Utility Legislative Day Raises Awareness, Encourages Advocacy

“We have to do this. It’s just part of our job.”

Kaukauna Utilities General Manager and MEUW President Jeff Feldt’s words sum up what most municipal utility officials have come to realize – that getting to know the local, state and federal political process is part of the many duties of a utility manager, and can pay big dividends in the future.

The 2010 Municipal Utility Legislative Day was well attended by all utility sectors; a testament to the important issues of the day, and a recognition by municipal utility officials that being active in the political process is necessary for long term success.

The lineup of speakers included State Rep. Louis Molepske, Jr. (D-Stevens Point) and State Senator Mark Miller (D-Monona), both of whom spoke about the impending comprehensive groundwater legislation. DNR Secretary Matt Frank and PSC Chairman Callisto shared their thoughts about Senate Bill 450/Assembly Bill 649, the Clean Energy Jobs Act, one of the most comprehensive energy bills in Wisconsin history. As a bonus, WPPI Energy CEO Roy Thilly helped put Senate Bill 450 into municipal context with a thorough explanation of the municipal portions of the legislation.

Municipal Environmental Group-Wastewater Division leader Paul Kent and Jim Baumann, DNR/Bureau Director, Special Assistant, Watershed Management, discussed the complicated but important phosphorus rule changes on the way.

The attendees heard from Wisconsin Newspaper Association Executive Director Peter Fox after lunch, and then visited Capitol offices to share position papers and discussions with State Legislators.

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A Cautious Path Toward a “Smarter” Grid
By Kevin Zamzow, Manager - System Design & Communications, Power Systems Engineering, Inc.

While there may not be consensus on what the term “Smart Grid” means, the definitions often include automatic data collection from multiple applications, integrated communications, and integrated software that shares databases. Some Smart Grid implementations may be considered “lower hanging fruit” with substantial and quick return on investment even without an American Recovery and Reinvestment Act (ARRA) grant from the Department of Energy (DOE).

Smart Grid components that are seeing growing implementation, with or without an investment or demo grant, include:
     Bi-directional AMI to support demand response systems such as load
         management and critical peak pricing in addition to plain old meter reading.
        While there are power line carrier and wireless options for AMI, we have
         seen a preference for wireless systems for municipal electric utilities due to
         the compact nature of their service areas. An AMI system can also provide
         benefits for water utilities as the electric meters and infrastructure may be
         configured to communicate with water meters to provide meter reads and
         to help spot leaks.

     Meter Data Management Systems (MDMS) to archive and analyze a
         vast amount of AMI and other utility automation data. The new trend in
         municipal computing is to use all the data coming in from AMI and other
         utility automation systems to help determine outage locations, create
         predictive maintenance programs to identify overloaded transformers and
         other down line equipment about to fail, as well as many other time- and
         money-saving applications. MDMs are morphing into a business analytics
         engine that the utility can use for everything from engineering analysis to rate
         making and planning.

     Advanced Distribution Automation, including: volt/VAR compensation
         and control to reduce energy loss in the distribution system yielding
         substantial savings for utilities; conservation voltage reduction (CVR) to
         help reduce peak demand requirements through intentional voltage
         reduction; and, smart feeder switching using automated reclosers and
         switches to improve reliability for key commercial and industrial customers
         by automatically re-configuring the distribution network.

Developing a multi-year roadmap to implement Smart Grid components is critical to ensure synergies across functional departments. As some utilities have already implemented several of the Smart Grid components such as AMI, an assessment tool such as the Smart Grid Maturity Model (SGMM) maintained by the Carnegie Melon Software Engineering Institute and supported by the DOE scores both overall maturity level and maturity in each of the model’s eight domains (such as grid operations, work and asset management, and technology) on a scale of 0 - 5. The SGMM can help utilities assess their current situation and then identify ways to move to the next level of maturity. Not surprisingly, of the 53 utilities that completed the SGMM as of July 2009, 49% were at Level 0 (Starting) and 45% were at Level 1 (Exploring and Initiating). (More information on the SGMM may be found at http://www.sei.cmu.edu/smartgrid/.)

Interoperability and cyber security remain key areas to consider when making a technology investment. The National Institute for Technology and Standards (NIST) is making significant progress in the development of standards that could affect utility operations moving forward. In addition, priority action plans (PAP) have been identified to address the most pressing interoperability needs. In particular, there are three documents to be aware of:
     “Smart Grid Cyber Security Strategy and Requirements” (Draft
         NIST IR 7628), released in second draft form on February 3rd. This draft
         provides an overall cyber security strategy for the Smart Grid, including a
         risk assessment and security compromise impact level for 18 logical
         interface categories (for example, the interface between sensor networks
         and control systems) and recommended security requirements. The final
         document is expected early summer 2010.

     “NIST Framework and Roadmap for Smart Grid Interoperability
         Standards,” Release 1.0 (NIST SP 1108), released in January. (Both
         Draft NIST IR 7268 and NIST SP 1108 are available for download at
         http://www.nist.gov/smartgrid/.)

     “NEMA Meter Upgradeability Standard SG-AMI-1-2009,” issued by
         the PAP00: Meter Upgradeability Standard project team, which is now
         developing an ANSI C12 compatible, standard protocol for upgrading
         meters.

Examples of DOE ARRA Smart Grid Grants to municipal electric utilities:
     Iowa Association of Municipal Utilities (IAMU) received a $5M Smart
         Grid Investment Grant. The Iowa project will involve the installation of
         32,000 “smart thermostats” in homes and businesses by 75 participating
         municipal and consumer-owned utilities. A web portal will be created to
         allow the customers to monitor when their thermostats were adjusted
         remotely. The goal is to lower peak demand to avoid the need for 57
         megawatts of energy generation capacity.

     Municipal Electric Authority of Georgia received a $12M grant to
         upgrade substations, routers, and network terminals to reduce peak
         demand and system maintenance costs.

     Naperville (IL) Electric Utility received a $10M grant to implement an
         AMI system and institute a “smart feeder” program to increase system
         reliability and reduce power costs.

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January 20-22, 2010 in Stevens Point
2010 MEUW/REC Joint Superintendent’s Conference

The Joint Superintendents Conference is an annual event coordinated by MEUW and the REC Superintendents Association, and the 2010 Conference in Stevens Point was a great success!

Attendees heard presentations on electric system inspection/maintenance plans; substation testing; a case study on customer communications using social media such as Twitter and Facebook from Rochester (MN) Utilities; the importance of measuring and tracking the reliability of your system; medical care of electrical burns; power line related forest fires; a transmission system outlook; on-site customer relation skills and techniques; an environmental issue update; PSC rules for interconnecting distributed generation; and an update on the Wisconsin apprentice program.

The group recognized Mount Horeb’s Gary Frisch as the MEUW 2009 Outstanding Lineman. Now the Electric Utility Foreman, Gary has thirty-two years of service with the Utility.

The Wisconsin Utility Suppliers Association hosted a lively trade show and reception on Thursday afternoon, followed by the Graduation Banquet, which recognized both Lineworker and Meter Technician Apprenticeship Program graduates. The keynote speaker was Forrest Ceel, IBEW Local 2150’s Business Agent, who emphasized the importance of safety and professionalism on the job.

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Municipal Wholesale Power Group (MWPG) – 49 Years Strong!

One of the biggest challenges in operating a municipal electric utility going one on one with a large investor owned utility over electric transmission and distribution issues, negotiating purchased power contracts, and battling for service territory, among other things.

Thanks to a small, but committed group of Wisconsin public power utilities, the ability to ‘band together’ and work together on issues remains a key component of a successful municipal utility.

The Municipal Wholesale Power Group (MWPG) was founded in 1961 by a group of MEUW Member utilities that purchased power from Wisconsin Power & Light. The driving issue was the discovery that the rates being charged to the municipal customers were about 15% above the rates WP&L charged neighboring rural electric co-ops. The group formed, hired a consultant (Bud Lueders) and an attorney (initially, Glenn Roberts, then Dick Olson) to challenge the differential. Cases were brought at both the Public Service Commission and the Federal Power Commission (FPC), with the result that the differential was eliminated.

The MWPG subsequently intervened in numerous wholesale rate cases before the FPC and later the Federal Energy Regulatory Commission (FERC), and through the years, the estimated savings to the group have exceeded tens of millions of dollars.

Dave Mikonowicz, Reedsburg Utilities General Manager, was the President of MWPG for about a decade. He said having MWPG has been one of “the only checks and balances on WP&L’s continual rate increases.” He said that MWPG remains as relevant today as in the beginning, especially for the smaller public power systems.

One of the early undertakings of the group was the “price squeeze” and antitrust claims in the late 1970’s and early 1980’s. The cost of bringing these cases exceeded $800,000 at the time. After years of battle, the cases were effective -- rate increases were rolled back, WP&L paid the MWPG interveners their costs of bringing the cases, and WP&L eliminated some of its objectionable practices.

After the price squeeze/antitrust cases, the MWPG, including the members which had joined WPPI, were instrumental in forcing WP&L to file transmission tariffs at the FERC. These tariffs allowed access to other power suppliers.

Current MWPG President, Dale Bender from the City Utilities of Richland Center, said it’s more important than ever to stick together, as most Wisconsin public power utilities are not generating electricity and have to rely on and negotiate with a large provider.

At present, MWPG is 23 utilities strong and continues to meet regularly in Sun Prairie once per month, receive legal and legislative updates, and share together the trials and tribulations of overseeing the details of wholesale power arrangements for the benefit of their customers back home.

Now, after nearly 50 years of cases and dockets, of meetings and contracts, donuts and coffee, the Municipal Wholesale Power Group still embodies all that is good about public power.

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Farewell to Ernie Mullen

Ernest J. Mullen, a former MEUW President, a key figure in the formation of WPPI Energy, and a former member of APPA's Board of Directors, died the evening of January 20. He was 78 and lived in Sturgeon Bay with his wife Bonnie.

Mullen was a leader of public power systems in Wisconsin for many years. He was the General Manager of Waupun Utilities from 1970 to 1972 and the General Manager of Kaukauna Utilities from 1972 to 1995. He was MEUW President from 1976 to 1977. In the mid-1970s, he worked with the MEUW Generation and Transmission Committee to make joint action a reality in Wisconsin.

In 1976, the MEUW G&T Committee sponsored the creation of a non-profit corporation—Wisconsin Public Power, Inc.—as the initial stage for creating a joint action agency. Kaukauna was a founding member and Mullen was its first president, serving five terms in that position, from 1976 to 1981. At that point, WPPI was created as the first municipal electric company in the state. Mullen was president and then chair of WPPI's Board of Directors from 1981 to 1994.

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Using Cell Phones While Driving Significantly Increases Crash Risks
By Cindy Primeau, Central Wisconsin Regional Safety Coordinator

According to the National Safety Council, driver inattention is a leading cause of traffic crashes, responsible for about 80 percent of all collisions (based on National Highway Traffic Safety Administration data). And NSC reports that cell phones are the #1 driver distraction, contributing to hundreds of thousands of crashes and thousands of deaths each year.

Talking on cell phones distracts our minds from driving; beyond where our eyes and hands are while driving, it's the conversation that distracts. According to the NSC, “this is called ‘cognitive distraction’, and this is why hands-free and handheld phones have a similar crash risk – hands-free is not safer. It's difficult to change behavior even when people know the risks. Surveys show drivers admit talking on cell phones and texting while driving, even when they say they know it's dangerous.”

Over 2,000 NSC members responded to a recent survey about employee use of wireless communication devices while driving. One major finding were that one-quarter of those companies prohibit both handheld and hands-free devices while driving for some or all employees.

The trend line is clear that changes are underway in terms of when cell phone use by drivers will be allowed. For example, the City of Marshfield has banned the use of cell phones while driving unless using hands- free phones. The MEUW Board of Directors has recently approved a cell phone policy which directs MEUW employees to not use their cell phone while driving. And based on a current general restriction in 49 CFR, Part 390, as of January 27, 2010, commercial vehicle drivers are not allowed to text with electronic devices while driving a commercial motor vehicle.

To provide MEUW Members with some guidance and direction regarding this serious issue, review the free “Cell Phone Policy Kit” available on the NSC website: http://www.nsc.org/safety_road/Distracted_Driving/Pages/EmployerPolicies.aspx.

Remember, the safest course of action is to refrain from using a cell phone while driving!

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