March 2015/Page 1

Whats Inside:

March 2015

Hometown Connections Report

LED Streetlights 3

Regulatory Update

Generation Outlook 4

Scope of Competition 4

TPPA Annual Meeting

Registration Form 11

TPPA Calendar

TPPA Annual MeetingJuly 20-22, 2015Westin RiverwalkSan Antonio, TX

TPPA Legal SeminarNovember 5-6, 2015Lone Star CourtAustin, TX

TPPA’s Address...701 Brazos, Suite 1005Austin, TX 78701PH - 512-472-5965FAX - 512-472-5967www.tppa.com

CPS Energy Wins Big by Going SolarWhen San Antonio’s newest PV solar

farm Alamo 3 opened few weeks ago, it firedup with a unique history: Almost all of thesystem’s components — from the panels tothe dual-axis trackers to the inverters — weremanufactured in thecentral Texas city.

It’s a direct result oflocal utility CPS Energy’sstrategy to bring in morejobs and investment to theeconomy via its NewEnergy Economy initiative— or, in other words, away to squeeze in anadded bonus from gettingmore renewables online.Alamo 3 is the third ofseven solar farms to bebuilt from a 2012 deal between the municipalutility and project developer OCI Solar.

“All the components of those solar farmswould have to be built here in San Antonio,”said Cris Eugster, CPS Energy vice president,who added that, to his knowledge, it’s theonly such program set up by a U.S. utility.When complete, the Alamo farms will add atotal installed capacity of 400 MW to theTexas grid.

As a result of the New Energy Economyinitiative, approximately seven companieshave set up shop in San Antonio over thecourse of a few years, including panel makerMission Solar Energy, LED manufacturerGreenstar and KACO New Energy, whichmoved its headquarters from California to SanAntonio to produce inverters under the Texassun. (KACO recently announced that it willbe expanding operations in San Antonio).

And the impact on local job and eco-nomic investments? Over 2,600 jobs — bothdirect and indirect — have been generated inthe area since 2011, according to a Septemberreport from St. Mary’s University in SanAntonio. Five hundred of those jobs, whichwere directly created from the initiative,

represent a combined salary of $26 million,the analysis found. In total, the reportestimates that the utility’s partnershipswith these clean energy companies haveinjected $808 million to the local economy.

Eugster says thatfrom a broaderperspective, the NewEnergy Economyinitiative is part ofCPS Energy’s desireto set itself up as autility of the future byshifting its energy mixto more renewablesand distributedenergy resources.

“In the last 5years or so we’ve become much moreforward-thinking and progressive in powerand energy and serving our customers. Wehave a vision that by 2020, 65 percent [ofour energy mix] will be coming from low-carbon resources,” he said, adding that theutility expects to reach this goal next year— in part thanks to two coal plants(generating a combined total of 871 MW inenergy) that the utility plans to retire in2018.

So far, the projections for San Antoniosolar and the New Energy Economyinitiative continue to be sunny. CPSpredicts that by 2019, its impact will reach$1.6 billion.

And Eugster forecasts that the utilitywill continue to look for ways to tie its low-carbon quest to creating not just new jobs,but new kinds of jobs — such as when thepair of coal plants shut down five yearsfrom now.

“We’re committed not to lay offanyone [from the retired plants], so we’rethinking about training some of ourworkers on new skills and getting them tomaintain a solar farm instead,” he said.

Texas Public Power Association701 Brazos, Suite 1005Austin, Texas 78701Phone (512) 472-5965Fax (512) 472-5967www.tppa.com

BOARD OF DIRECTORS

PresidentPhil Williams (Denton)

President-ElectLarry Weis (Austin Energy)

Vice-PresidentBob Kahn (TMPA)

Secretary/TreasurerKyle Dicke (Floresville EL&P)

Doyle Beneby (CPS Energy), Ron Bowman (Boerne), Jim Briggs(Georgetown), Gary Brown (WTMPA), John Bruciak(Brownsville PUB), Paula DiFonzo (New Braunfels Utilities), BillDollar (Garland), Doug Faseler (Seguin), Sharon Hayes(Weatherford), Tracy McCuan (Kerrville PUB), David McCalla(Lubbock), Carroll McDonald (WTMPA), Kent Myers(Fredericksburg), Shawn Raborn (La Grange), Kean Register(Bryan), Darren Schauer (GVEC), Gary Singleton (GEUS) andPhil Wilson (LCRA).

STAFFExecutive DirectorMark Zion

Communications ManagerDebra L. Scarbo

Regulatory ManagerWendell Bell

Office ManagerJosie Caballero

MEMBERS

Cities: Austin, Bartlett, Bastrop, Bellville, Boerne, Bowie, Brady,Brenham, Bridgeport, Brownfield, Brownsville, Bryan, Burnet,Caldwell, Castroville, Coleman, College Station, Cuero, Denton,Electra, Farmersville, Flatonia, Floresville, Floydada,Fredericksburg, Garland, Georgetown, Giddings, Goldsmith,Goldthwaite, Gonzales, Granbury, Greenville, Hallettsville,Hemphill, Hempstead, Kerrville, Kirbyville, LaGrange,Lampasas, Lexington, Liberty, Livingston, Llano, Lockhart,Lubbock, Luling, Mason, Moulton, New Braunfels, Newton,Robstown, San Antonio, San Augustine, San Marcos, SanSaba, Sanger, Schulenburg, Seguin, Seymour, Shiner,Smithville, Timpson, Tulia, Waelder, Weatherford, Weimar,Whitesboro, YoakumJoint Action Agencies: Texas Municipal Power Agency, WestTexas Municipal Power AgencyRiver Authorities: Lower Colorado River AuthorityElectric Cooperatives: Central Texas, Fayette, GuadalupeValley, Texas Electric Cooperatives

March 2015/Page 2

In early March, public power officials traveled to Washington, DC to participate in theannual legislative conference of the American Public Power Association (APPA). They werejoined by over 1,000 of their peers from across the country. Participants from Texas camefrom Austin, Boerne, Brownsville, CPS Energy, Denton, Garland, Kerrville, and NewBraunfels. They met with congressional offices and talked about public power in Texas —highly reliable high-value power to over 4 million Texans. They also discussed three keyTPPA federal issues for 2015.

PRESERVE TAX EXEMPT FINANCING: In recent federal budget discussions, variousproposals would cap or place a surcharge on the deduction for municipal bond interest.Municipally owned electric utilities (MOUs) and other public power systems in Texas usetax exempt municipal bonds to finance key pubic infrastructure – power plants, transmissionnetworks, and distribution lines. Proposals to cap or place a surcharge on deductions for taxexempt municipal bonds would result in higher financing costs for public sector utilities andhigher rates for electric consumers.

GRID SECURITY - CYBER AND PHYSICAL: Providing a safe, reliable, and securesupply of electricity is the top priority TPPA utilities. They maintain security by: (1) comply-ing with the reliability/security standards of the Texas Reliability Entity (TRE) and federalauthorities, (2) complying with mandatory cyber security standards, (3) partnering with lawenforcement, and (4) employing “defense in depth” threat mitigation that focuses onpreparation, prevention, response, and recovery. Any legislation should not imposeadditional/duplicative standards or a one-size-fits-all approach, and should encouragegovernment / industry information sharing.

CONTINUED STATE REGULATION OF ERCOT: The Electric Reliability Council ofTexas power grid ensures reliable service and successful electricity markets. ERCOTcomplies with national reliability standards. Additional federal regulation of ERCOT is notneeded.

Public power is well represented year-round in Washington, DC by APPA, and on aregular basis by TPPA officials who work to educate members of Congress and their staff onkey electric utility industry issues.

Best regards,

Mark Zion

March 2015/Page 3

CALENDAR

Tackling the LED Streetlight Challenge

continued on pg. 9

By Joe WalshConverting an entire streetlight

system to LED fixtures is a once-in-a-career project. Whether your system has300 fixtures or 3,000, full-scale conversionis a project that presents a unique set ofchallenges that will be undertaken in fullview of city officials and residents. Withthe right leadership and technology, asuccessful LED conversion can deliver tothe community substantial energy andcost savings, as well as significantlyimproved light quality.

Following years of technologicaladvancement, there are now abundantLED roadway lighting choices that meetthe two critical criteria when evaluatingproject feasibility: illumination perfor-mance and economic performance. Inaddition, state-of-the-art control systemsenhance savings by enabling the remoteactivation and dimming of the streetlightsand by automating the collection of

maintenance data, eliminating the need fordrive-by inspections.

However, LED streetlight conversionprojects require more than just a one-for-onereplacement of your existing street lightinginfrastructure. Audits, photometric analysis,and system design are complex processesthat require expertise. Fixture selection mustextend beyond reduction of baseline energyusage to optimize service life and opticalperformance. Installation can be challenging,as crews encounter unknown and unpredict-able field and mounting conditions.

To ensure that converting yourstreetlights to LEDs pays off for yourdepartment and the community, ask these sixcritical questions before you begin yourproject:

1. What is the right product andmanufacturer for our community?

2. How do we ensure that the newroadway light levels are safe for travel?

3. How do we capture the greatest total

savings?4. What will the revenue impact be and

how do we develop a plan to reassess feeswhere necessary?

5. Do we have the right resourcesavailable to design and install a project?

6. How do we evaluate the project’s totaleconomic impact and are finance optionsavailable?

It may be unrealistic for the busypersonnel of small to mid-size public powerelectric departments to learn all there is toknow to about these important LED conver-sion issues. Manufacturers of LEDstreetlights and controls systems may offerto provide consulting services, but theyrequire the purchase of their proprietaryfixtures, and they provide no assistance ininstalling or integrating the fixtures andcontrols.

To provide maximum flexibility to publicpower systems, PowerSecure worked with

ENGINEERING & OPERATIONS BUSINESS & FINANCECUSTOMER CONNECTIONS SYSTEM IMPROVEMENT

In t e g r a t e d S o l u t i o n s f o r P u b l i c P o w e r

Turn to Hometown Connections for solutions designed to help your utility

respond quickly to outages or inquiries, offer customers backup and peak shaving generation,

and empower customers to participate in energy efficiency programs.

CUSTOMER CONNECTIONS

partners

Debra Scarbo, TPPA + 512.472.5965 + www.hometownconnections.com

March 2015/Page 4

Contact Patty Cruz to learn more about how Leidos creates sustainable solutions for today’s utilities.512.569.8323 patricia.cruz@leidos.com

leidos.com/engineering

Utility Business Know-howInnovative EngineeringSmart Technology

continued on pg. 9

Generation Outlook forSpring, Summer

Seasonal forecasts released by theElectric Reliability Council of Texas(ERCOT), grid operator for most ofTexas, indicate the region will havesufficient electric generation available toserve expected peak demand require-ments in the upcoming spring andsummer.

The Seasonal Assessment ofResource Adequacy (SARA) for theupcoming spring identifies more than76,600 megawatts (MW) of generationresources available to serve expectedpeak demand of about 62,000 MW. OneMW is enough electricity to powerabout 200 homes during the highestdemand conditions and about 500 homesduring a mild spring day.

This forecast is based on averageweather conditions seen during theprevious 12-year period and typicalseasonal generation outages experiencedsince December 2010, when ERCOTlaunched its nodal market design. Itassumes the highest spring demand willoccur in late May, following completionof most of the routine power plantmaintenance that occurs during thespring to prepare for summer demand.

A preliminary summer SARAestimates summer peak demand at about69,000 MW, based on 12-year averageweather. Peak demand in 2014, a mildsummer for Texas, reached 66,454 MWon Aug. 25. Currently, ERCOT estimatesnearly 77,000 MW of available genera-tion resources for this summer’s peak.ERCOT continues to monitor a numberof factors that could affect power plantavailability and demand over the summerpeak this year.

Available operating reserves underthe current scenarios could range frommore than 5,000 MW, based on thecurrent forecast and typical outage rates,to less than 500 MW under a scenario inwhich demand exceeds the forecast byabout 2,300 MW at the same timeoutages exceed the historical average bymore than 2,400 MW. The latter weatherscenario reflects the extreme conditions

ERCOT experienced in summer 2011.ERCOT will continue to monitor the poten-

tial impacts of prolonged drought conditions,regulatory changes that could affect generationavailability, and any updates to the seasonalweather forecast. Any changes will be reflectedin the final summer SARA, which is scheduledfor release in May.

These and other SARA and CDR reports areavailable at www.ercot.com/gridinfo/resource/.

PUC RecommendationsAddressed

In its biennial report entitled Scope ofCompetition in the Electric Markets of Texas, thePublic Utility Commission identified a number ofissues that the Texas Legislature might wish toconsider. The report outlined several itemsdealing with retail electric providers, electrictransmission lines, environmental compliancecosts, preferences for electric generationresources, and administrative matters. Thefollowing legislative measures have beenintroduced to address many of these issues.

SB-777 by Sen. TroyFraser would prohibit anofficer of a retail electricprovider (REP) whosecertificate has beenrevoked from participat-ing in the market throughanother REP.

SB-933 by Sen. TroyFraser would give thePUC authority to reviewnew DC ties betweenpower grids unless theconnecting utility obtainsa certificate of conve-nience and necessityfrom the PUC.

SB-776 by Sen. TroyFraser would requiremunicipally ownedutilities to obtain acertificate of convenienceand necessity for newelectric transmission linesoutside its service area.It would not apply to a

facility used to provide access to ageneration resources or to upgrades to anexisting line that does not require addi-tional land.

SB-365 by Sen. Kevin Eltife wouldprovide methods for vertically integratednon-ERCOT utilities to recover environ-mental compliance costs. It does not applyto municipally owned utilities.

SB-775 by Sen. Troy Fraser wouldrepeal that goal for natural gas as apreferred fuel for electric generation as gas-fueled facilities have been the mostcommonly built in Texas for many yearsand that trend is expected to continue.

SB-931 by Sen. Troy Fraser providesthat the goals and targets for renewableenergy would terminate on December 31,2015, and it would prohibit the designationof a new competitive renewable energyzone.

March 2015/Page 5

Utility executives, state utility regulatorsand officials from smart grid technologycompanies convened in Washington, D.C. inmid-March, where they discussed theevolving power grid, micro-grids anddistributed generation, among other things.

They made their remarks at the annual“Powering the People” meeting hosted bythe Edison Foundation Institute for ElectricInnovation.

During a panel that focused on microgrids and diverse resources, Dennis McGinn,assistant secretary of the Navy, energy,installations and environment, said that “ifwe did a poll in a room we’d probably getabout 50 different” definitions about what amicro-grid is. “For us, a micro-grid is anetwork that allows us to be connected tothe larger grid, or not. It allows us to havemore energy resiliency if there are problems”with the larger grid.

“It allows us, in some cases, to lowerour total electric bill by giving us choice interms of what is the best value, least cost of

our generating source – whether that’scoming from the grid or from some set ofdistributed generation assets that arelocated on” a Navy or Marine Corpsinstallation, he said.

McGinn also said that micro-grids offer,among other things, flexibility. He also said“in our view, if you don’t have distributedgeneration, you really don’t have anybusiness talking about a micro-grid. It justdoesn’t apply.”

Another speaker, Lawrence Jones, vicepresident for utility innovations andinfrastructure resilience at Alstom, said that“we’ve heard a lot of discussions aroundmicro-grids in the context of utility of thefuture. What I haven’t heard is – what willbe the regulation of the future?”

Jones noted that at a different confer-ence held in March, “I said, let’s not haveanother discussion about grid of the future,Utility 2.0, Utility 3.0. I’d like to see regula-tory model 2.0.”

Robert Schimmenti, senior vice presi-

dent of electric operations for ConsolidatedEdison Company of New York, referred tothe first phase of New York state’s Reform-ing the Energy Vision (REV) initiative “inplay right now, focused around customerengagement. But customer engagement in avery different way than what we’re used to— really pairing up third party involvementwith customers, having the utility be moreof a facilitator or integrator of thesethings.”

The New York Public Service Commis-sion on Feb. 26th took a major step infacilitating the implementation of the state’sREV initiative through the issuance of anorder that adopts a related policy frame-work and implementation plan.

Schimmenti said that one of the thingsthat his utility is doing is pursuing demon-stration projects. “The demonstrations area way” in which the company can “takesmaller pieces of what we want to do, test

continued on pg. 7

Utility Executive, Regulators Address Issues in Washington, D.C.

CLEAR IMPACTNavigant’s energy experts

deliver clear, insightfulguidance and a

balanced view of the

industry to assist clients in

overcomingobstacles, maximizingstrengths, and creatinginnovative solutions.

Contact »Dan Bradleydbradley@navigant.comDan Stathosdstathos@navigant.com

www.navigant.com/energy

©2015 Navigant Consulting, Inc. All rights reserved. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services. See www.navigant.com/licensing for a complete listing of private investigator licenses.

At AEP Energy Partners, our brand stands for the qualities Texas

electricity customers find most important; customer service, quality,

and trust.

We work harder to be the company you choose for affordable, reliable

power to municipal utilities and electric cooperatives.

These are the core values that make us America’s Energy PartnerSM

Let us show you the difference.

Lanny Aldridge Brian Whitlatch

(P) 325-674-7257 (P) 614-583-7067

(E) ldaldridge@aepes.com (E) bpwhitlatch@aepes.com

INTEGRITY MATTERS

At AEP Energy Partners, our brand stands for the qualities Texas

electricity customers find most important; customer service, quality,

and trust.

We work harder to be the company you choose for affordable, reliable

power to municipal utilities and electric cooperatives.

These are the core values that make us America’s Energy PartnerSM

Let us us sh showow youy the ddiffeerence.

Lanny Aldridge Brian Whitlatch

(P)(P) 325-674-7257325 674 7257 (P)(P) 614-583-7067614 583 7067

(E) ldaldridge@aepes.com (E) bpwhitlatch@aepes.com

INTEGRITY MATTERS

March 2015/Page 6

Hayes Appointed to Weatherford City Manager

Austin Energy crews recentl installed light emitting diodebulbs (LEDs) on streetlights on Sixth Street downtown to increasesafety for South by Southwest and other events.

Similar to when lights are brightened in a bar alerting custom-ers it is time to leave, the LEDs in conjunction with Austin Energy’sautomated Web-based streetlighting system enable the brightnessof the LEDs to be raised when events are over for the night toincrease safety and then lowered to normal levels when crowdsdisperse.

Twelve streetlights are being installed in the first phase of thepilot on Sixth Street between Trinity and Sabine streets. In total,the project will include retrofitting 48 of the streetlights with LEDfixtures on Sixth Street between IH-35 and Brazos Street.

The crews are replacing existing 250-watt metal halide bulbswith 200-watt (400–watt equivalent) LED bulbs.

The project is in keeping with a resolution passed by theAustin City Council last year requesting the city manager and citydepartments to work with stakeholders to create a safe and vibrantenvironment downtown.

The City Council approved the purchase of the LED lights inDecember to implement the project.

Austin Energy Installs LEDs toIncrease Safety for Events

TheWeatherford citycouncil recentlyannounced theappointment ofWeatherfordAssistant CityManager SharonHayes to theposition of citymanager, effectiveMay 1.

Hayes will replace City Manager JerryBlaisdell upon his retirement April 30.

“I appreciate the opportunity,” Hayestold the council. “I look forward to workingwith each one of the council members andcontinuing working with staff. I very muchappreciate your confidence in me.”

“Mrs. Hayes was a natural choice forthis position,” Mayor Dennis Hooks said.“She is a leader who provides years ofknowledge in municipal government and Iknow she will be welcomed by our commu-nity as the new city manager. Mrs. Hayesprovides the leadership qualities andemotional intelligence to handle the respon-

sibilities of this position. Even whenconfronted with difficult situations, Mrs.Hayes has remained committed to ourcommunity and true to her work. I ampleased to know our city will be inexcellent hands. She is the leader thiscommunity needs as we move forward.”

“I think Mrs. Hayes is just what weneed to lead this community,” citycouncil member Craig Swancy said. “Shehas done a tremendous job as ourassistant city manager and the citycouncil feels she is the perfect fit for theposition. Her education and professionalexperience speaks for itself, and I lookforward to seeing her excel within theposition of city manager.”

Hayes has been with the city sinceOctober 1985 starting as the city’spretreatment coordinator. She served ascity sanitarian, superintendent oftreatment, department manager forenvironmental services and treatmentand assistant director of utilities beforebeing appointed as deputy director ofutilities in 2004.

Hayes was appointed as the city’s director ofutilities in 2008 and became assistant citymanager in April 2009.

Hayes holds a bachelor’s degree inscience from Tarleton State University, amaster’s degree in environmental science fromTexas Christian University and a master’sdegree in public administration from theUniversity of North Texas.

Hayes is a member of the InternationalCity Managers Association, Texas CityManagers Association and serves on theTexas Public Power Association board ofdirectors. She is past president of the NorthCentral Texas Chapter of the Texas Section ofAmerican Water Works as well as a pastpresident of the Texas Association of CleanWater Agencies. She is a member of theAmerican Water Works Association, theWater Environment Federation, the NationalAssociation of Clean Water Agencies and theTexas Water Utilities Association. Hayes hasalso published work in professional tradepublications.

�� Resource & Energy Management RFPs, procurement, contract negotiation �� Regulatory Intervention Rate filings, CCNs, rulemakings �� ISO & Market Oversight Services Representation, monitoring, interpretation �� Cost Analysis and Rates cost of service, allocation & rate design �� Competitive Assessment Market analysis and strategy �� Litigation Support Expert testimony, damage assessment �� Economic and Financial Analysis Strategic planning, asset valuation

11044 Research Blvd. Suite A-420 Austin, Texas 78759

p: 512-331-4949 f: 512-331-5743

info@resolvedenergy.com

Proudly serving our clients for over 15 years

March 2015/Page 7

Utility Issuescontinued from pg. 5

those and evaluate different businessmodels and technologies and partnershipsin a way that will be fruitful and also havethe ability to fail,” he said.

That is “something that utilities aren’tused to,” he continued. “We’re tied topublic safety and reliability. We tend to notoverreach to try to do things that might notbe fruitful. I think the demonstrationprojects will allow us to try some things andfail and move on and modify some of thosethings.”

Michael Champley, a commissionerwith the Hawaii Public Utilities Commission,talked about the “rooftop solar revolution,ground zero, which is Honolulu, Hawaii,and as you pretty well know, we are leadingthe edge in terms of the penetration ofresidential rooftop solar.”

He said that “we had exponentialgrowth in solar for the last five years andit’s now” coming to a “much greaterslowdown because of all the challenges.”

Champley said that there are a “number

of significant technical, economic andpolicy issues associated with rooftop solar,with DG, [that] we don’t fully understand orfully appreciate.”

During the question and answerportion of the session, Champley wasasked to discuss some of the unexpectedchallenges or opportunities that Hawaii hasexperienced.

The state utility commissioner said thatthe ever-present challenge with anytransformation and change is to “not overbureaucrat it at the beginning of a process.To let pilots work, but also knowing whento wean off a pilot, get the rules right andthen move forward. We went forward waytoo far, probably, without really having amaster plan.”

He said that “where I think we need togo is to get a sustainable model forcustomer choice. Customers want choiceand we should find a way to let them haveit, but we have to do it in a way that issustainable.”

Champley said that “we have 50, 60,000customers in Hawaii that have rooftopsolar,” but a much higher number ofcustomers do not have rooftop solar

systems.“So we have two distinct classes now of

customers and we have to make sure that the60,000 that want choice do it in a way thatcauses no harm,” whether in terms of reliabil-ity or economically, to the rest of the customerbase “and that’s a tough balance.”

Champley at a later point said that withrespect to solar power and rates, “I look atwhere do we need to go to the future to havea sustainable program and I believe that we’regoing to have to have a whole lot of optionalrate tariffs, as opposed to one size fits all.”

He believes “that we’re going to have togo to” time of use dynamic pricing. “InHawaii, we suffer from excess solar energy atsolar noon. We need to charge EVs [electricvehicles] at noon, not at night. We needpeople to shift their consumption from theevening to the daytime because we’rethrowing away zero marginal cost power andso, that to me, says that the whole pricingparadigm has to change.”

ENERGY. FOCUS. COMMITMENT.“Proud to provide quality engineering and electric utility consulting services to our

TPPA member Clients.”

191 Menger Springs Pkwy - Boerne, TX | 1509 Emerald Pkwy, Ste. 103 - College Station, TX830.249.3887 | se@se-texas.com | www.se-texas.com

follow us on facebook SCHNEIDERENGINEERING

EngineeringDesign | Planning | Analysis and Support

Business ConsultingRegulatory | Power Supply | Energy and Financial Services

Field ServicesSurveying / Staking | Inspection | Construction Management

Project ManagementScheduling | Budgeting | Project Construction

Law Offices of

DAVIDSON TROILO REAM & GARZA A Professional Corporation www.dtrglaw.com

Assisting clients to achieve their goals emphasizing renewable energy, conservation

and consumption efficiencies

50+ years of legal services to Texas public utilities. We look forward to serving you

San Antonio Austin 7550 W. Interstate 10, Suite 800 919 Congress, Suite 810 San Antonio, Texas 78229 Austin, Texas 78701 (210) 349-6484 (800) 359-6484 (512) 469-6006 (800) 635-7832

Email: dtlaw@dtrglaw.com

March 2015/Page 8

Kenan Ögelman, CPS Energy’s directorof market policy, was recently named presi-dent of the Gulf Coast Power Association.Hehas served on the GCPA board of directorssince 2013, including last year as vicepresident.

Ögelman has worked more than 15 yearsin the Texas electricity market, before andafter deregulation. At CPS Energy, hemanages the utility’s activities at the ElectricReliability Council of Texas and Public UtilityCommission of Texas. His responsibilitiesinclude analyzing market conditions, formu-lating energy policies and advising executivemanagement. Prior to joining CPS Energy in2007, Kenan worked for the Office of PublicUtility Counsel as a senior economist.

“Kenan’s wide range of experience andexpertise in the energy industry will serve theGCPA well,” said Cris Eugster, executive vicepresident of generation and strategy at CPSEnergy.

The GCPA is a non-profit organization ofindividuals and corporations mostly in theTexas and Louisiana Gulf Coast

region. The GCPA’s mission is topromote an improved understanding ofissues and opportunities impactingcontemporary power markets through thecreation of educational and networkingopportunities where members and otherindustry professionals can learn andexchange information and ideas.

CPS Energy is the nation’s largestmunicipally owned natural gas andelectric company, providing service to756,000 electric and 334,000 natural gascustomers in the Greater San Antonioarea. The company offers the lowestrates among the top 10 largest U.S. citiesand second lowest among the top 20,while ranking number one in wind-energycapacity among municipally ownedenergy systems and number one in Texasfor solar generation.

Ögelman Named President of GCPATPPA Website

Visit the TPPAWebsite at

www.tppa.com

GDS offers a broad range of

consulting and engineering

expertise to clients associated

with, or affected by, electric, gas,

water and wastewater utilities.

gdsassociates.com | 512.494.0369

The Smart Choice in Utility & Energy Consulting

Power Supply Planning

Financial and Rate Analysis

Generation Services

Regulatory and Restructuring

Transmission Services

NERC/SERC Compliance

Energy Efficiency and DSM

Carbon Compliance

Electric Planning and Design

Utility Privatization

Territorial Integrity

Utility System Valuation

Renewable Energy Resources

Environmental Services and

Permitting Assistance

Natural Gas Consulting

Retail Energy Procurement

Water/WW Utility Consulting

Statistics and Market Research

GDS Associates Texas Office:919 Congress Avenue

Suite 800Austin, TX 78701

GDS Associates, Inc.ENGINEERS & CONSULTANTS

����������� � ����� ������������ �� ���

Phone: (720) 633-9514 | Fax: (720) 633-9535

������������ �������������� ����� � ��� ������������������������������������� ������ �� ������������������ ��������������������������������������������������������������������������������

������������!�� ����"����������������"�����#��������$����%���������#� ����&����������#� ����

'����������$�� ������# �����(����# �������$��� ��(�������

#����������)�����*���#�������(�������

# ������������www.newgenstrategies.net

Austin | Dallas | Denver | Nashville | Seattle

March 2015/Page 9

HCI Reportcontinued from pg. 3

the staff of Hometown Connections to designa unique LED streetlight conversion optionthat is non-proprietary and turnkey.PowerSecure International, Inc. is a leadingprovider of utility and energy technologies toelectric utilities, and their industrial, institu-tional and commercial customers. HometownConnections is the utility services subsidiaryof the American Public Power Association(APPA).

PowerSecure and Hometown Connectionshave launched a vendor-neutral programintegrating engineering and design serviceswith project construction and installation.PowerSecure will help APPA member utilitieschoose among the high quality products fromthe top manufacturers in the global LEDmarket. Whether a utility purchases LEDfixtures from PowerSecure or from anothermanufacturer, PowerSecure will provide fulllifecycle turnkey services: design and engi-neering, construction, labor, commissioning,control systems, and operations & mainte-

nance services. There may be lease orfinance options available that reduce thefinancial contribution from the city orelectric department.

LED Streetlight ConversionPowerSecure is providing a one-stop

solution for municipal utilities that may befinanced through energy savings. Throughthis program, PowerSecure:

· Provides a free, no obligation audit ofinfrastructure and develops a preliminaryscope, cost and savings analysis.

· Serves as an independent solutionsprovider, with a catalog of turnkey optionssuch as lamps, ballasts, and controls fromall the leading manufacturers to ensurepublic power systems may access cutting-edge technology with a strong record ofperformance.

· Conducts an in-depth analysis ofphotometrics, run hours and dimmingschedules.

· Works closely with all city depart-ments to ensure compliance, safety andaffordability.

· Offers best of breed technology and

warranties from a preselected catalogue offixture and controls manufacturers.

· Installs and programs controlssystems, commissioned during installa-tion, to ensure optimal lighting andsavings levels.

· Delivers utility-grade equipment andtrained personnel available only from awell-established utility contractor.

· Provides O&M services, communi-cation and training to keep utility staffand end use customers fully informed.

Joe Walsh is Director of EnergyEfficiency Services at PowerSecure, Inc.In affiliation with Hometown Connec-tions, PowerSecure provides LEDoutdoor lighting, distributed generation,and solar products and services to publicpower systems.

HB-1101 by Rep. Sylvester Turner would extend the expirationdate of the System Benefit Fund from Sept. 1, 2016 to Sept. 1, 2017.It would allow the PUC to set reduced summer rates for low-incomecustomers in 2016 and 2017 to exhaust the fund balance. It does notapply to municipally owned utilities.

SB-774 by Sen. Troy Fraser and HB-2327 by Rep. SenfroniaThompson provides for a study of alternative ratemaking ap-proaches adopted in other states while extending a statutoryexpiration date on certain ratemaking procedures for two years. Itdoes not apply to municipally owned utilities.

SB-734 by Sen. Troy Fraser would allow the PUC to set annualinterest rates utilities pay on customer deposits on any date beforeDecember 1 of each year rather than on December 1 specifically as incurrent law. It does not apply to municipally owned utilities.

The regular session of the Legislature ends on June 1.

For more information on regulatory matters, contact WendellBell at the TPPA offices or at wbell@tppa.com.

Regulatory Updatecontinued from pg. 4

March 2015/Page 10

APPA & NRECA Voice Concerns Over ENERGY STAR

The city of Georgetown has signed anagreement with SunEdison Inc. to buy 150megawatts of solar power from 2016 to 2041,city officials recently announced. Missouri-based SunEdison, (NYSE: SUNE) developsand sells photovoltaic energy.

Georgetown closed its municipallyowned electric power plant in 1945 andbegan a long-term purchased powercontract to supply energy to its customers.

It ended that contract in 2012, enabling cityofficials to buy electricity from severaldifferent power suppliers, including theLower Colorado River Authority.

Georgetown has also contracted withFrance-based utility Électricité de France SA,or EDF, for 144-megawatts out of a 194-megawatt capacity wind project that’s 50miles west of Amarillo, Texas. The companyis scheduled to begin delivery of the power

Georgetown to Buy Solar-Generated Electricity Next Yearnext year, according to a statement fromGeorgetown officials.

“The long-term agreements also allowGeorgetown to provide competitive electricrates and hedge against price volatility forenergy produced by fossil-fuels,” thestatement said.

The American Public Power Associa-tion (APPA) and National Electric Coopera-tive Association (NRECA) submittedcomments to the U.S. EnvironmentalProtection Agency (EPA) in response to itsENERGY STAR Distribution TransformersDraft Specification Framework.

While APPA and NRECA and theirmember utilities have long supported theENERGY STAR program as an importanttool to help consumers identify andpurchase products with superior energyperformance, the associations see signifi-cant challenges with the proposed ENERYSTAR renewed distribution transformerspecifications framework.

The framework proposes a one size fitsall approach that will not work becausetransformer performance varies underdifferent load conditions. While theDepartment of Energy recently chose totake a one size fits all approach for minimumstandards, it is not appropriate for EPA tospecify an above-minimum performancestandard, as the performance of distribution

transformers is highly dependent on theconditions under which they are operated.

If the draft specifications are finalized asproposed, it could result in the ENERGYSTAR designation being awarded to distribu-tion transformers that are less cost effectiveand energy efficient in many field applica-tions.

In some states, local governments andutilities have purchasing policies that requirepurchase of ENERGYSTAR products. Ifthis specificationleads to purchasesthat are not cost-effective and thatincrease energylosses, organizationsmay be forced tolobby againstENERGY STARpolicies or otherwiseamend purchasingpolicies to fit their

fiduciary and best practice policies.Therefore, EPA must address and resolvethe significant concerns of stakeholders if itchooses to move forward with the program,said APPA and NRECA in their comments.

The full comments and an accompany-ing white paper, Transformer Loss EnergySavings Flexibility, are available on APPA’swebsite.

burnsmcd.com | ��������� �� �

1700 West Loop South

Suite 1500

Houston, TX 77027

Leslie Duke • 832-214-2800

lduke@burnsmcd.com

9400 Ward Parkway

Kansas City, MO 64114

Carles Miller • 816-822-3989

cmiller@burnsmcd.com

Ted Kelly • 816-822-3208

tkelly@burnsmcd.com

PlanningYour Power• Business analysis for a competitive market

• Environmental studies, monitoring and permitting

• GIS services

• New gas and coal plant design

• Plant upgrades and life extensions

• Power supply planning

• Program management

• Rates and regulatory services

• SCADA and communication systems

• Transmission planning services

• Transmission, substation and

distribution design

At NRG, we’re not just powering homes, businesses and schools, we’re also your neighbors and a proud part of this community. At the end of the day ... we’re all neighbors.

Contact Skip Zahn to learn more. 832.357.5734 | skip.zahn@nrg.comnrg.com

Community Power

NRG is a registered servicemark of NRG Energy, Inc. ©2014 NRG Energy, Inc. All rights reserved. PLA.2014.11.24

March 2015/Page 11

2015 TPPA Annual Meeting Westin Riverwalk (San Antonio, Texas)

July 20-22, 2015

REGISTRATION FORM Please register by June 11, 2015 to receive early registration discounts. After June 11th, you must pay the regular registration amount unless your payment is sent in with registration form. You may use this form to register everyone attending from your system (including spouses who may accompany you to the receptions and the awards breakfast). Copy this form as necessary. Early Registration (before June 11th) Regular Registration (after June 11th) TPPA Members $375 $475 Non-Members $575 $675 Spouse $30 $30 Golf Fee (must register for meeting to play in the TPPA Golf Tournament)

$50 $60

Fees: (see above table) _____ Spouse/Guest _____ Golf Fee for you and/or spouse (circle) _____ Total: _____ Name___________________________________________________________________ Title____________________________________________________________________ Utility/Organization_______________________________________________________ Street Address/P.O. Box____________________________________________________ City/State/Zip____________________________________________________________ Phone_________________FAX___________________EMAIL____________________ Name of Spouse/Guest_____________________________________________________ Hotel reservations should be made directly with the Westin Riverwalk by calling (210)224-6500. The hotel is located at 420 West Market Street, San Antonio, TX 78205. To receive special rates of $199 single/double room call (210)224-6500 before June 11, 2015 mentioning the TPPA Annual Meeting when registering. Hotel check-in is at 3:00 p.m. To help us with planning and accommodations, please indicate which events you (and your spouse/guest) plan to attend during the meeting:

Sun., July 19 _____ Registration (2 p.m. – 5 p.m.) Mon., July 20 _____ Golf (7 a.m. - 1 p.m.) * Golf Tournament is limited to 80 players ($ fee)

_____ Committee Meetings (3 p.m. - 5 p.m.) Please check the meeting below:

_____ Reception (5 p.m. - 6:30 p.m.) Tues., July 21 _____ General Session (8 a.m. - Noon)

_____ Concurrent Sessions (1:30 p.m. - 5 p.m.) _____ Reception (5 p.m. - 6:30 p.m.)

Wed., July 22 _____ Awards Breakfast (8 a.m. – 9 a.m.) _____ General Session (9 a.m. - Noon)

(Cancellations/No-Shows/Credits/Substitutions): All registration cancellations must be made in writing on or before July 6, 2015. A credit to another TPPA meeting will then be issued for use within the next year. Registrants who cancel after July 6, 2015 will not receive a credit, but attendee substitutions will be allowed for the 2015 TPPA Annual meeting. Registrants and no-shows who did not cancel on or before July 6, 2015, are responsible for the full registration fee and are not entitled to a credit for their registration fee. Cancellations must be made in writing and mailed, faxed or emailed to: Josie Caballero, Office Manager, TPPA, 701 Brazos, Suite 1005, Austin, TX 78701, fax: 512-472-5967, email: josie@tppa.com

Confirmations and Invoices: Please send my confirmation and invoice via: _____ Mail _____ E-Mail to: ________________________________________________

TPPA DOES NOT ACCEPT CREDIT CARDS Make check(s) payable to TPPA and mail to the address below TPPA Annual Meeting _____ Check Enclosed Texas Public Power Association _____ Please Bill 701 Brazos, Suite 1005 Austin, Texas 78701 or FAX to (512)472-5967

Check Committee Meeting:

____ Engineering & Operations Committee ____ Environmental Committee ____ Government Relations/Legal Committee ____ Marketing & Customer Service Committee

March 2015/Page 12

A Proven Texas SupplierWith a clean and diverse portfolio of more than 5,000 megawatts across the state, NextEra Energy Resources is proud to be one of the largest energy providers in Texas. Our investment grade credit rating, proven track record and wide range of competitively priced products and services make us the logical energy service choice

for utilities, municipalities and electric cooperatives.

For more information about how NextEra Energy Resources can serve your critical energy supply and management needs,

please contact Trey Lancaster at (713) 374-1510.

NextEraEnergyResources.com© 2012 NextEra Energy Resources

Texas Public Power Association701 Brazos, Suite 1005Austin, Texas 78701

Mark your Calendars

TPPAAnnual Meeting

July 20-22, 2015

Westin RiverwalkSan Antonio, TX

PRSRT STDU.S. POSTAGE PAID

AUSTIN, TEXASPERMIT NO. 963