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June 27, 2011: No. 25<br />

In This Issue<br />

Future looks difficult, but public<br />

power is well positioned,<br />

Crisson tells conference<br />

While the era<br />

of cheap<br />

energy may<br />

be past, "I’m<br />

confident<br />

going forward<br />

we’ll continue<br />

to be<br />

successful in<br />

fulfilling our mission of providing reliable<br />

and affordable power," he tells National<br />

Conference<br />

Learn More<br />

APPA members adopt policy<br />

resolutions on key issues<br />

At Washington meeting, public power<br />

delegates adopt two new resolutions (on<br />

regulation of coal ash and on Build<br />

America Bonds) and adopted 11 other<br />

resolutions that were approved earlier<br />

this year by APPA's L&R Committee<br />

Learn More<br />

Past Issues | Subscribe | Printer-Friendly | PDF | Advertise | | Events Calendar | Classifieds www.<br />

<strong>Public</strong><strong>Power</strong>.org | www.<strong>Public</strong><strong>Power</strong>Media.org | APPA Online Suppliers Guide<br />

Carroll takes gavel as new<br />

chairman of APPA's board<br />

APPA names new members of Executive<br />

Committee, board<br />

Learn More<br />

As new APPA chair, Carroll<br />

emphasizes public power's<br />

united front<br />

Together "we'll<br />

take a<br />

dadgum good<br />

shot" at tough<br />

issues<br />

Learn More<br />

Supreme Court reverses<br />

decision allowing greenhouse<br />

gas nuisance suits<br />

Ginsburg: "The expert agency is surely<br />

better equipped to do the job than<br />

individual district judges issuing ad hoc,<br />

case-by-case injunctions"<br />

Learn More<br />

<strong>Public</strong> <strong>Power</strong> <strong>Weekly</strong><br />

Podcast<br />

Listen<br />

iTunes<br />

RSS Archive


Talent shortage looms as<br />

economy improves, utility<br />

recruiter says<br />

Contracting through joint action agency<br />

works for Glendale Water and <strong>Power</strong><br />

Learn More<br />

Utilities need strategic approach<br />

to meeting future challenges,<br />

consultant tells APPA audience<br />

"By having the most reliable, most costeffective<br />

energy, we will become the<br />

most competitive economy"<br />

Learn More<br />

EPA extends comment period on<br />

proposal to limit utility<br />

emissions of mercury, other<br />

toxics<br />

Those who want to fine comments have<br />

an additional month to do so. The new<br />

deadline is Aug. 4.<br />

Learn More<br />

Moody's seeks public comments<br />

on its plan to revise financial<br />

metrics for public power ratings<br />

Comments on the proposed changes are<br />

due in 60 days<br />

Learn More<br />

FTC probes possible<br />

manipulation of oil markets<br />

Commission will use its subpoena power<br />

Learn More<br />

Announcement about release of<br />

oil reserves sends price down<br />

US to release 30 million barrels in next<br />

month; other countries will chip in a like<br />

amount to bring the total to 60 million<br />

barrels<br />

Learn More<br />

CPS Energy to close large coalfired<br />

plant by 2018, will invest in<br />

new IGCC plant to be built in<br />

Texas<br />

The city wants to define itself "by taking<br />

the mantle of the new energy economy,"<br />

said the mayor<br />

Learn More<br />

Consumer advocates at APPA<br />

conference emphasize<br />

affordability, planning<br />

AARP is fuel<br />

neutral, but has<br />

concerns about<br />

both climate<br />

change and<br />

nuclear power<br />

because of<br />

affordability<br />

questions<br />

Learn More<br />

Congress unlikely to do much<br />

on energy, key Senate staffers<br />

say<br />

The Senate probably wouldn’t do<br />

anything the House passes and the<br />

House "would probably not pass<br />

anything we do"<br />

Learn More<br />

EPA sets schedule for issuing<br />

new air toxic standards for<br />

boilers<br />

EPA will propose updated standards in<br />

October, issue final rule by April 2012<br />

Learn More<br />

House committee delays<br />

consideration of coal ash bill<br />

Bill would bar regulation of coal ash as a<br />

hazardous waste<br />

Learn More


APPA offers two webinars<br />

this week on pole<br />

attachments, designing<br />

substations<br />

Pole attachment session is June<br />

28; substation design session is<br />

June 29<br />

Learn More<br />

In pictures . . .<br />

Learn<br />

More<br />

Future looks difficult, but public power is well positioned, Crisson tells<br />

conference<br />

While the era of cheap energy may be past, "I’m confident going forward we’ll continue to be<br />

successful in fulfilling our mission of providing reliable and affordable power," APPA<br />

President and CEO Mark Crisson told attendees of the association’s National Conference<br />

June 20. The issues facing APPA and public power in 2011 are difficult and the long-term<br />

outlook doesn’t look any better, but "when I look at how public power is positioned ... I’m<br />

optimistic," Crisson said at the opening general session of the conference in Washington, D.C.<br />

Crisson said the outlook for the next decade reminded him of the story of<br />

a utility executive who asked a fortune teller about the future. Photo by<br />

Dennis Brack<br />

pressures, particularly with coal, he added.<br />

Crisson said the outlook<br />

for the next decade<br />

reminded him of the<br />

story of a utility<br />

executive who asked a<br />

fortune teller about the<br />

future. The fortune teller<br />

said the next three to<br />

four years would be very<br />

difficult and challenging<br />

—and after that, "you’ll<br />

get used to it." The<br />

problem starts with oil<br />

costs, which are $90/<br />

barrel in a weak<br />

economy and will only<br />

go up as the economy<br />

recovers, he said.<br />

Expect other cost<br />

There will be some real incentives to move to a lower carbon portfolio over the next decade,<br />

Crisson said, which means increased energy efficiency, nuclear and renewables. Technology<br />

will have to play an expanded role and "we just need some new energy infrastructure," he<br />

said. All these things point to the need for significant new capital, which will have an impact<br />

on rates. The challenge for the industry going forward will be to just keep power costs flat in<br />

real terms [increasing no more than the rate of inflation] during the 21st century, he said. "I’d<br />

consider that a real success for the industry."<br />

However, public power has a number of advantages, he said. "We’re not for profit, we’re<br />

locally owned and controlled, we’re very good at matching local resources with local needs."<br />

<strong>Public</strong> power’s business model complements an aggressive energy efficiency program, and


public power utilities enjoy strong customer relationships, Crisson said. <strong>Public</strong> power also has<br />

the financial ability to develop new infrastructure, with 100% debt financing and strong credit<br />

ratings, which are a real asset, he said.<br />

"Then there are what I would call the intangibles," Crisson said: the tradition of service,<br />

reliability and strong track record of financial integrity. <strong>Public</strong> power utilities are governed by<br />

citizens who "are purpose-driven, not profit-driven," he said.<br />

APPA’s priorities for 2011 jibe pretty well with the rest of the utility industry, Crisson said.<br />

"Right at the top of the list" are environmental regulations that have come to be known as the<br />

train wreck. APPA is very busy trying to make sure the Environmental Protection Agency<br />

regulations are workable, he said. In its comments to EPA, APPA is calling for a balanced<br />

approach that takes into consideration costs, reliability and the time needed to comply, he<br />

said.<br />

Another APPA priority, new infrastructure, covers a lot of issues, but Crisson focused on<br />

natural gas, saying "it’s hard to see how we won’t use a lot of natural gas." One public power<br />

CEO said he’s pretty sure we’ll see $10 natural gas because everyone seems to be planning<br />

on $4 natural gas, he said.<br />

Reliability/cyber security is another priority that is taking up a lot of time of APPA staff,<br />

Crisson said. The association is holding a series of webinars to help members deal with the<br />

new reliability regime and its huge amounts of paperwork and APPA Senior Director of Policy<br />

Analysis Allen Mosher chairs the North <strong>American</strong> Electric Reliability Corp. Standards<br />

Committee, where he is helping move the industry toward results-based standards, Crisson<br />

said.<br />

APPA has developed a lot of ways to support another priority, demand-side initiatives,<br />

Crisson said. These include the Demonstration of Energy-Efficient Developments (DEED)<br />

program; the Clean and Efficient Energy Program with the Alliance to Save Energy and Large<br />

<strong>Public</strong> <strong>Power</strong> Council; APPA’s Energy Efficiency Resource Central website; and its Smart<br />

Grid Investment Grant Working Group, he said. Energy efficiency is a "no regrets" strategy<br />

that makes a lot of sense regardless of any regulatory mandates, he said.<br />

Restructured markets are APPA’s final priority for 2011, he said. The basic problem is that<br />

prices in the restructured markets exceed competitive levels and capacity is not being built,<br />

he said. He noted that APPA’s Electric Market Reform Initiative has received many<br />

contributions from non-RTO regions, perhaps on the theory that "the best defense is a good<br />

offense." APPA recently released an update of its Competitive Market Plan. The<br />

recommendations remain the same but they "are more necessary and relevant," he said. —<br />

ROBERT VARELA<br />

Back To Top<br />

APPA members adopt policy resolutions on key issues<br />

APPA members approved two new policy resolutions at the association’s National<br />

Conference June 21, one on regulation of coal ash and the other on Build America Bonds.<br />

After amending two of them, the association also adopted 11 resolutions previously approved<br />

by APPA's Legislative and Resolutions Committee. (See <strong>Public</strong> <strong>Power</strong> <strong>Weekly</strong>, March 7,<br />

2011.)<br />

The resolution on coal combustion residuals, or coal ash, opposes their regulation as a<br />

hazardous waste under Subtitle C of the Resource Conservation and Recovery Act and<br />

supports safe and beneficial reuse of residuals. In the other new resolution, APPA supports<br />

the reinstatement of the Build America Bonds program for ongoing improvement of local<br />

economic development, infrastructure and job creation.<br />

A resolution on implementation of the Dodd-Frank Wall Street Reform and Consumer<br />

Protection Act was amended to reflect events since it was approved as interim policy by the<br />

Legislative & Resolutions Committee. The amended resolution calls on Congress to pass<br />

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legislation giving the Commodity Futures Trading Commission and other regulators additional<br />

time to implement the derivatives title of the Dodd-Frank Act. The legislation should be<br />

structured to ensure the agencies define all necessary terms (such as "swap") before moving<br />

forward with additional rulemaking, APPA said.<br />

A resolution on reasonable regulation by the Environmental Protection Agency of emissions<br />

of mercury and other hazardous air pollutants from generation was updated. APPA strongly<br />

encouraged EPA to repropose the rule, including both more realistic compliance deadlines<br />

and standards for new coal-fired power plants. Reproposing the rule also would allow the<br />

agency to correct an error made in the conversion factor for its analysis of the rule, APPA<br />

said.<br />

The 13 approved resolutions are:<br />

• Resolution 11-01: <strong>Public</strong> <strong>Power</strong> Concerns with Implementation of the Dodd-Frank Act<br />

• Resolution 11-02: In Support of Coordination among Federal Agencies and Electric Utilities<br />

Regarding Smart Grid Implementation<br />

• Resolution 11-03: In Support of Increasing Energy Efficiency in Model National Building<br />

Codes<br />

• Resolution 11-04: Support for Property Assessed Clean Energy Program<br />

• Resolution 11-05: Cooling Water Intake Structures – CWA Section 316(b) Regulation as an<br />

Industry Economic and Strategic Priority<br />

• Resolution 11-06: Clean Air Act and EPA's Discretionary Authority to Set Standards, Revise<br />

Standards, and Impose Deadlines for Compliance<br />

• Resolution 11-07: Regarding Reasonable EPA Regulation of Electric Generating Units<br />

Under NESHAP<br />

• Resolution 11-08: In Support of Reasonable Operational Limits for Municipal Reciprocating<br />

Internal Combustion Engine Distributed Generation Units Covered by EPA’s National<br />

Emission Standards for Hazardous Air Pollutants<br />

• Resolution 11-09: In Support of Holistic Policy Approach on Integration of Variable Energy<br />

Resources<br />

• Resolution 11-10: <strong>Public</strong> <strong>Power</strong> Concerns Regarding Implementation of "MOD" Reliability<br />

Standards in the Western Interconnection<br />

• Resolution 11-11: In Support of Efforts to Maintain and Improve the Reliability of the<br />

Nation’s Electric Grid<br />

• Resolution 11-12: Opposition to Coal Combustion Residuals Being Regulated under Subtitle<br />

C of the Resource Conservation and Recovery Act<br />

• Resolution 11-13: In Support of Build America Bonds.<br />

The resolutions will be posted on APPA’s website. —ROBERT VARELA<br />

Back To Top<br />

Carroll takes gavel as new chairman of APPA's board<br />

William Carroll, general manager of the Greeneville Light & <strong>Power</strong> System in Greeneville,<br />

Tenn., was installed as chair of the APPA board of directors on June 22 at the association's<br />

National Conference in Washington, D.C.<br />

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A native of Columbia, Tenn., Carroll has almost 40 years of experience in the public power<br />

sector. He began his career at the Columbia <strong>Power</strong> and Water Systems in 1972 and became<br />

general manager in 1981. He joined Greeneville Light & <strong>Power</strong> as general manager in 1990.<br />

Throughout his career, Carroll has been an active participant in the utility industry, serving as<br />

chairman of the Tennessee Valley <strong>Public</strong> <strong>Power</strong> <strong>Association</strong> and the Tennessee Municipal<br />

Electric <strong>Power</strong> <strong>Association</strong> as well as president of the Appalachian District <strong>Power</strong> Distributors<br />

<strong>Association</strong>.<br />

"Bill Carroll is a recognized public power leader who brings extensive management<br />

experience, in depth industry knowledge, and proven leadership to the board chair position,"<br />

said APPA President and CEO Mark Crisson. "His abilities are well suited to the challenges<br />

faced by APPA as we strive to assure our members continue to provide affordable and<br />

reliable electric service."<br />

Phyllis Currie, general manager of Pasadena Water and <strong>Power</strong> in California, is APPA's chairelect<br />

for 2011-12 and Gary Stauffer, executive director, NMPP Energy, Lincoln, Neb., is vice<br />

chair. Lonnie Carter, president and CEO of Santee Cooper, Moncks Corner, S.C., is<br />

immediate past chair. Leon Pexton, general manager and chief operating officer, Utah<br />

Municipal <strong>Power</strong> Agency, is treasurer.<br />

Carroll chose five members of the board to serve with the officers on the APPA Executive<br />

Committee. They are: Paula DiFonzo, CEO of New Braunfels Utilities in Texas; Bob Jolly,<br />

general manager of the Marblehead Municipal Light Department in Massachusetts; Robert<br />

Johnston, president and CEO, MEAG <strong>Power</strong>, Atlanta, Ga.; James Posey, general manager of<br />

the Anchorage Municipal Light and <strong>Power</strong> Department in Alaska; and Robert Williams,<br />

general manager, Carthage Water and Electric Plant, Missouri.<br />

Newly elected to the APPA board this year are: Douglas Hunter, general manager, Utah<br />

Associated Municipal <strong>Power</strong> Systems; Andrew Boatright, manager, Westerville, Ohio, Electric<br />

Division; Ron Bowman, city manager, Boerne, Texas; Cindy Holman, general manager,<br />

Oklahoma Municipal <strong>Power</strong> Authority; Steven Blanchard, general manager, Fayetteville, N.<br />

C., <strong>Public</strong> Works Commission; John DiStasio, general manager and CEO, Sacramento<br />

Municipal Utility District; and Walter Haase, general manager, Navajo Tribal Utility Authority.<br />

Three board members were re-elected to another three-year term: Pat McCullar, president<br />

and CEO, Delaware Municipal Electric Corp.; Paul Pallas, superintendent, Rockville Centre,<br />

N.Y.; and Steven Klein, general manager, Snohomish County, Wash., <strong>Public</strong> Utility District.


APPA's Executive Committee for 2011-12. Back row, from left: Lonnie Carter, James Posey,<br />

Leon Pexton, Robert Williams, Gary Stauffer. Front row: Phyllis Currie, Bill Carroll, Bob Jolly,<br />

Paula DiFonzo. Not pictured is Robert Johnston. Photo by Dennis Brack<br />

Back To Top<br />

As new APPA chair, Carroll emphasizes public power's united front<br />

In his opening remarks as the new chairman of APPA’s board of directors on June 22, Bill<br />

Carroll made a self-deprecating pitch for continued unity by public power utilities. My wife told<br />

me, "I don’t think you’re smart enough for this APPA job," Carroll told attendees at the<br />

association’s National Conference. But "nobody is smart enough to do this by themselves,"<br />

said Carroll, the general manager of the Greeneville, Tenn., Light & <strong>Power</strong> System. "Together<br />

we may not master every task put before us, but we’ll take a dadgum good shot at it."<br />

He called on the public power audience to keep four points in mind: math, science,<br />

economics and ethics. Apply those four principles to the challenges facing the industry and<br />

"we can help elected officials" come up with good answers to those challenges, he said.<br />

Carroll addresses attendees of APPA's National Conference after taking the<br />

gavel as the new head of the association's board of directors for 2011-12.<br />

Photo by Dennis Brack<br />

Earlier, Carroll said<br />

he plans "to work<br />

hard this year to<br />

educate nonmembers<br />

on the<br />

value of APPA<br />

membership so<br />

they understand<br />

and appreciate that<br />

supporting APPA’s<br />

voice in<br />

Washington is of<br />

benefit to them and<br />

to those who<br />

ultimately must pay<br />

the price for all<br />

legislative actions,<br />

their retail<br />

customers."<br />

In spite of the<br />

daunting issues<br />

facing the industry, "I remain optimistic," outgoing APPA Chairman Lonnie Carter told the<br />

National Conference attendees. "<strong>Public</strong> power is customer-focused and, because of that<br />

laser-like focus, we are well-positioned."<br />

"More than ever, I believe in public power and APPA, the association that leads us," said<br />

Carter, president and CEO of Santee Cooper.<br />

Back To Top<br />

Supreme Court reverses decision allowing greenhouse gas nuisance suits<br />

The Supreme Court ruled unanimously June 20 that the Clean Air Act bars federal common<br />

law suits seeking to restrict greenhouse gas emissions on the ground that they constitute a<br />

public nuisance. In <strong>American</strong> Electric <strong>Power</strong> Co. v. Connecticut, the high court reversed a<br />

decision by the U.S. Court of Appeals for the Second Circuit allowing a suit by a group of<br />

states to proceed against AEP, the Tennessee Valley Authority, Southern Co., Xcel Energy<br />

and Duke Energy Corp.


"The critical point is that Congress delegated to [the Environmental Protection Agency] the<br />

decision whether and how to regulate carbon dioxide emissions from power plants; the<br />

delegation is what displaces federal common law," Justice Ruth Bader Ginsburg wrote in a<br />

decision on behalf of the court.<br />

"The expert agency is surely better equipped to do the job than individual district judges<br />

issuing ad hoc, case-by-case injunctions," Ginsburg said. "Federal judges lack the scientific,<br />

economic, and technological resources an agency can utilize in coping with issues of this<br />

order."<br />

Eight states—California, Connecticut, Iowa, New Jersey, New York, Rhode Island, Vermont<br />

and Wisconsin—filed the suit in 2004, but New Jersey and Wisconsin withdrew from the case<br />

earlier this year.<br />

APPA, the Edison Electric Institute and National Rural Electric Cooperative <strong>Association</strong> filed<br />

a joint brief last year urging the Supreme Court to grant AEP’s appeal and overturn the<br />

Second Circuit decision. Regulation of greenhouse gases "is too consequential, and too<br />

complex, to address on a piecemeal basis" through "nuisance" suits in different courts across<br />

the country, the utility associations said. —ROBERT VARELA<br />

Back To Top<br />

Talent shortage looms as economy improves, utility recruiter says<br />

With utility managers throughout the United States facing a shortage of qualified electrical<br />

engineers as the baby boom generation retires and universities produce fewer electrical<br />

engineers, Carl Mycoff, president of Mycoff, Fry & Prouse, and Glenn Steiger, general<br />

manager of Glendale, Calif., Water and <strong>Power</strong>, discussed strategies for addressing this<br />

problem with attendees of the APPA National Conference in Washington, D.C.<br />

Many engineers have stayed in their jobs out of dedication to the industry and because of the<br />

economic uncertainty of the last few years, but a severe talent shortage is on the horizon as<br />

roughly 78 million baby boomers are expected to retire in the next few years. Their<br />

replacements—from "Generations X and Y"—have different expectations regarding work<br />

environment, autonomy, communication style, and flexibility, Mycoff said. These differences<br />

often result in friction among the generations.<br />

Studies have found that Generation X, born between 1961 and 1981, is highly individualistic,<br />

values freedom, and enjoys responsibility—but has a disdain for authority and structured<br />

work hours, Mycoff said. Simply put, Generation X employees do not like to be<br />

micromanaged. Generation Y, born between 1978 and 2000, prefers to communicate through<br />

email and text messaging rather than face-to-face contact, he said. Friendship is a strong<br />

motivator for Generation Y workers, who will choose a job just to be in close proximity to their<br />

friends.<br />

The individualism of Generation X and the communication style of Generation Y frustrate<br />

baby boomers, Mycoff said. In the end, organizations suffer because institutional knowledge<br />

is not passed along, he noted.<br />

The problem is magnified in the utility industry by the sharp decline in the number of electrical<br />

engineers that graduate each year. Many universities reduced spending on power<br />

engineering programs or eliminated electrical engineering programs altogether after the<br />

technology bubble of the 1990s burst, Mycoff said. As a result, the number of electrical<br />

engineering graduates is down drastically, from 2,000 per year in the 1990s to a current rate<br />

of approximately 500 per year. Competition to hire these electrical engineering graduates is<br />

aggressive, and starting salaries reflect the shortage, he said.<br />

<strong>Public</strong> power utilities will be hit especially hard because the salaries that they offer are


estricted by political pressures, Mycoff said. Promising talent is often lured away by higher<br />

salaries at investor-owned utilities and cooperatives. It is also common for public power<br />

utilities to hire and train electrical engineers, only to lose them once they are a valuable<br />

asset, he said.<br />

Mycoff recommended that public power utility executives work to communicate the value of<br />

the utility managers and engineers to local government officials and the community. A public<br />

power utility executive is equivalent to the executive running the local hospital so public utility<br />

salaries should be benchmarked in this way and should not be constrained by comparisons<br />

to the salaries of other municipal departments, he said. The utility executive deserves<br />

differentiation because he or she is handling millions of dollars for the community. Mycoff<br />

acknowledged that even with a public relations effort, truly competitive compensation may not<br />

be possible.<br />

Mycoff suggested a number of solutions and Steiger told conference attendees that he has<br />

had success using a number of these strategies. Mycoff and Steiger both recommended<br />

allowing experienced workers to continue working part-time and encouraging them to mentor<br />

newer employees. Up to 75% of baby boomers would like to continue working in some<br />

capacity after retirement, Mycoff said. <strong>Public</strong> power utilities can appeal to baby boomers and<br />

younger workers by offering flexible work and vacation schedules, as well as cafeteria<br />

benefits. Mycoff also suggested hiring local talent with ties to the community.<br />

Glendale Water and <strong>Power</strong> is taking this a step further and is currently working with Glendale<br />

Community College to support the newly established Verdugo <strong>Power</strong> Academy to meet the<br />

talent needs of the future, Steiger explained.<br />

Mycoff also recommended eliminating nepotism policies that further shrink the pool of<br />

qualified applicants. Many times, the friends and family of a current employee already know<br />

the value of public power and make excellent and dedicated hires, he said.<br />

Because of rapid changes in technology, utilities often need to find the right expertise quickly.<br />

Mycoff suggested working with joint action agencies to find second- or third-party contractors<br />

to address this need. Contractors can transfer knowledge and expertise to current utility<br />

employees and then move on to help another utility when they are no longer needed, he<br />

said.<br />

Steiger explained that Glendale Water and <strong>Power</strong> has been "sharing the pain" with other city<br />

departments and has implemented a multi-year hiring freeze. During this hiring freeze,<br />

organizational requirements have continued to expand, he said. Energy trading, renewable<br />

generation and smart grid initiatives all required highly specialized expertise, he said. Steiger<br />

looked to his joint action agency, the Southern California <strong>Public</strong> <strong>Power</strong> Authority (SCPPA), for<br />

assistance. SCPPA worked successfully with Glendale to contract the necessary experts,<br />

Steiger said.<br />

The advantages of this approach include instant expertise, defined time frame, and training<br />

for regular full-time staff, he said. He credited this strategy with helping Glendale Water and<br />

<strong>Power</strong> reduce electric rates by 11%, increase its renewable portfolio to over 24%, and<br />

increase wholesale revenue by $32 million. —JENNIFER MITCHELL<br />

Back To Top<br />

Utilities need strategic approach to meeting future challenges, consultant<br />

tells APPA audience<br />

<strong>Public</strong> power utilities need to develop strategies to increase customer satisfaction, increase<br />

reliability and decrease the cost of electricity, Rodger Smith, president of Black & Veatch<br />

Consulting, told an APPA audience June 20.<br />

Elected officials in cities facing financial pressures may look at utility assets with an eye on<br />

selling them, warned Smith. Keep them, he said – they are revenue-producing assets that<br />

will enable the city to grow the local economy.


He spoke at a session of the APPA National Conference in Washington and urged public<br />

power managers to take a strategic approach to meeting future challenges.<br />

President Obama in his State of the Union address earlier this year said, "The future is ours<br />

to win. We can’t get it standing still." That message, while true, lacked vision, Smith said.<br />

The president needs to send a message to the <strong>American</strong> people like President Kennedy’s<br />

message in 1961: "We will put a man on the moon before the end of the decade." President<br />

Obama’s message should have been: "By having the most reliable, most cost-effective<br />

energy, we will become the most competitive economy on the planet," Smith said.<br />

Smith listed several "strategic imperatives" for the utility industry to move forward to meet the<br />

"most competitive economy" vision. Among them: understand the nexus of water and energy<br />

and the nexus of the gas and electric industries. <strong>Public</strong> power utilities are better situated than<br />

investor-owned utilities for recognizing these connections, he said.<br />

The utility industry made bad assumptions about what customers want with the smart grid,<br />

Smith said. Customers want only to know how soon power will be back on when the lights go<br />

out. "They are less interested in having the utility come to their side of the meter."<br />

Equipment vendors are trying to dictate energy policy, he said. "This is bad." He advised his<br />

audience to be skeptical about predictions of rapidly growing adoption of electric vehicles<br />

over the next few years. A Chevy Volt costs $46,000 and its battery pack would have to be<br />

replaced after four years. Consumers will not be attracted to that economic equation, he said.<br />

—JEANNE LABELLA<br />

Back To Top<br />

EPA extends comment period on proposal to limit utility emissions of<br />

mercury, other toxics<br />

The Environmental Protection Agency has extended the deadline for public input by 30 days<br />

—until Aug. 4—on its proposed rule to limit emissions of mercury and other air toxics from<br />

power plants. The extension will not alter its timeline for issuing the final regulation in<br />

November, the agency said. The extension of the comment period was an "effort to be<br />

responsive to Congress and to build on the robust public comment process," EPA<br />

Administrator Lisa Jackson said. The agency proposed the standard in March.<br />

APPA and the National Rural Electric Cooperative <strong>Association</strong> in May asked EPA to extend<br />

the comment period on the proposed rule.<br />

The standards will be phased in over three years, and states have the ability to give facilities<br />

a fourth year to comply. Currently, more than half of all coal-fired power plants already have<br />

pollution control technologies that are called for to meet the standards. Once they are final in<br />

November, these standards will require the remaining coal-fired plants, roughly 44% of the<br />

fleet, to install controls. —R.V.<br />

Back To Top<br />

Moody's seeks public comments on its plan to revise financial metrics for<br />

public power ratings<br />

In a June 17 report and request for comment, Moody's Investors Service outlines changes it<br />

is considering in how it determines credit ratings for public power utilities. The credit rating<br />

company said it is considering modifications of three of its key financial metrics "in response<br />

to heightened concern regarding comparability across operating models and the need for<br />

supportive liquidity as utilities in the United States face uneven and challenging economic<br />

conditions."<br />

The report and request for comment, Moody's Considers Use Of New Financial Metrics In U.


S. <strong>Public</strong> <strong>Power</strong> Electric Utility Rating Methodology, is posted on www.moodys.com.<br />

Moody’s is updating its U.S. <strong>Public</strong> <strong>Power</strong> Electric Utility Rating Methodology, originally<br />

published in September 2008. As part of this update, Moody’s is asking for comments on<br />

adjustments it is proposing to the three financial metrics:<br />

• the debt service coverage ratio,<br />

• the fixed obligation charge coverage ratio, and<br />

• the days cash on hand ratio.<br />

The proposal to change the debt service coverage ratio recognizes that most public power<br />

utilities transfer a portion of their surplus revenues to a municipal government, typically to a<br />

city or county at an agreed-upon level. "While the transfers come after debt service in the<br />

legal flow of funds, practically the transfer is a requirement and in many cases the transfer is<br />

made on a monthly basis," Moody's said. Therefore, Moody’s is proposing to treat the<br />

transfer as an operating expense.<br />

Moody’s said it will calculate the adjusted debt service coverage ratio by dividing annual net<br />

revenues by total debt service costs. The ratio "measures a utility’s ability to repay annual<br />

debt service costs from recurring revenues net of recurring expenses, as well as the utility’s<br />

resiliency to withstand revenue and expense volatility," the company said.<br />

Moody’s second proposed adjustment to the debt service coverage ratio is a new "fixed<br />

obligation charge coverage ratio" that incorporates debt-like obligations related to the<br />

ownership of generation assets through a joint power agency under take-or-pay contracts.<br />

Many public power electric utilities finance the development or purchase of generation assets<br />

through such joint agencies. Moody’s said it views these contractual obligations as fixed and<br />

the annual payments as debt-like obligations. Moody’s fixed obligation charge coverage ratio<br />

subtracts the take-or-pay contractual payment from the utility’s operating expenses when<br />

calculating net revenues, and subsequently adds the take-or-pay contractual payment to the<br />

total debt service costs when calculating coverage.<br />

The adjusted ratio "facilitates uniform comparisons of utilities that directly finance generation<br />

assets on balance sheet with utilities that finance assets through joint power agencies off<br />

balance sheet," Moody's said.<br />

Moody’s also proposes to change the way it calculates its "current days cash on hand" ratio.<br />

The current days cash on hand ratio is calculated based on a utility’s available and<br />

unrestricted cash and investments times 365 days divided by a utility’s annual operating and<br />

maintenance expenses. Moody’s plans to replace the traditional days cash on hand ratio with<br />

the "adjusted days cash on hand ratio," which subtracts from available cash and investments<br />

"any actual collateral posting requirements with a counterparty and the difference between a<br />

fully funded annual debt service reserve and the actual debt service reserve funding level<br />

maintained by the utility."<br />

The proposed changes in the three financial metrics "allow for greater comparability amongst<br />

different types of public power utilities by incorporating additional liquidity and debt like<br />

obligations into the financial ratios, essentially adjusting for different approaches to<br />

generation ownership, debt structuring, and liquidity management," Moody's said.<br />

The comment period will close in mid-August, 60 days after the date of the report. —<br />

JEANNINE ANDERSON<br />

Back To Top<br />

FTC probes possible manipulation of oil markets<br />

The Federal Trade Commission has opened an investigation into possible manipulation of<br />

wholesale oil markets. The commission said it will use its subpoena power in a probe of<br />

"whether certain oil producers, refiners, transporters, marketers, physical or financial traders,<br />

or others (1) have engaged or are engaging in practices that have lessened or may lessen<br />

competition – or have engaged or are engaging in manipulation – in the production, refining,


transportation, distribution, or wholesale supply of crude oil or petroleum products; or (2)<br />

have provided false or misleading information related to the wholesale price of crude oil or<br />

petroleum products to a federal department or agency."<br />

Crude oil and refined petroleum product prices and profit margins "increased substantially<br />

earlier this year," the FTC said in a June 20 letter to Sen. Richard Blumenthal, D-Conn. "The<br />

Energy Information Administration reported that as of early May, U.S. refiners’ refining<br />

margins had increased more than 90% since the beginning of 2011, and U.S. refiners at that<br />

time were using only 81.7% of their capacity, representing a 7% reduction from the same<br />

period in 2010." —ROBERT VARELA<br />

Back To Top<br />

Announcement about release of oil reserves sends price down<br />

Oil prices fell June 23 after the United States and other industrialized countries said they<br />

would release 60 million barrels of crude oil from their reserves over the next 30 days in an<br />

effort to drive down energy prices.<br />

Half of that amount will come from the U.S. Strategic Petroleum Reserve in what the Energy<br />

Department said will be the largest release ever from the U.S. reserves.<br />

The International Energy Agency, which seldom intervenes in oil markets, said the action was<br />

meant to ensure a "soft landing for the world economy." In New York, the announcement sent<br />

oil prices down by $4.31, to $91.10 a barrel. —J.A.<br />

Back To Top<br />

CPS Energy to close large coal-fired plant by 2018, will invest in new IGCC<br />

plant to be built in Texas<br />

Saying it is positioning itself to be at the forefront of a "new energy economy," the municipal<br />

electric utility in San Antonio, Texas, announced June 20 that it will shut its 871-MW J.T.<br />

Deely power plant by 2018, about 15 years earlier than had been planned. CPS Energy said<br />

it will replace part of the energy from J.T. Deely by buying 200 MW of electricity from a clean<br />

coal plant to be built near Odessa, Texas.<br />

The Deely plant, built in the 1970s, will be the first coal plant in Texas to shut down, the<br />

Associated Press reported. The clean coal plant that will replace part of Deely's capacity will<br />

use integrated gasification combined-cycle technology to capture 90% of the plant's carbon<br />

dioxide and more than 95% of its mercury and sulfur, CPS Energy said.<br />

"This is a moment not only to dream big, but to deliver on those dreams," said San Antonio<br />

Mayor Julián Castro, who announced the plan June 20. The city wants to define itself "by<br />

taking the mantle of the new energy economy," he said. "By building a critical mass<br />

around research and development that will grow and attract the brainpower of the 21st<br />

century, San Antonio can be for the new energy economy what Silicon Valley is to software<br />

and what Boston is to biotech." A video of his remarks is available on the Internet.<br />

Last year, CPS Energy asked its staff to increase the utility’s renewable resources to 20%<br />

(1,500 MW) by 2020 and to have 65% of its generation resources be low- or no-carbon.


The San Antonio utility has an agreement to buy 200 MW from the clean coal plant for 25<br />

years. Construction of the IGCC plant is expected to begin in late 2011 or early 2012 and be<br />

completed in late 2014 or early 2015. The project, called the Texas Clean Energy Project, will<br />

be a coal-fired, 400-MW IGCC facility that will incorporate carbon capture and storage<br />

technology. It will be built by Summit <strong>Power</strong> of Seattle.<br />

"We have a model project that will change how the world views coal-fueled power," said Eric<br />

Redman, president of Summit <strong>Power</strong>.<br />

Thanks to the agreement with CPS Energy, the Texas Clean Energy Project "now becomes<br />

one of the nation's leading clean coal projects," The Energy Daily reported June 23.<br />

The Deely plant could have operated until 2030, but in order to meet new regulations<br />

anticipated from the Environmental Protection Agency, CPS Energy would have had to install<br />

a $550 million scrubber, according to the Associated Press. The municipal utility decided that<br />

would not be a wise expenditure, and opted instead to close the plant and invest in clean-coal<br />

and solar technology, said CPS Energy spokeswoman Lisa Lewis. The city-owned utility also<br />

is ramping up its energy-efficiency efforts.<br />

"San Antonio is stepping up to lead Texas and our nation into a clean energy future—and<br />

proving that investing in innovative technology to protect our health and the environment is<br />

also a great way to create jobs," said EPA Administrator Lisa P. Jackson. "By sending a<br />

strong signal of the local government’s support for clean energy, San Antonio attracted<br />

innovative <strong>American</strong> businesses that will create jobs around technology that helps to keep<br />

the air clean."<br />

The same day they announced the plan to close the Deely coal plant, Mayor Castro and CPS<br />

Energy President & CEO Doyle Beneby announced agreements to bring five clean<br />

technology businesses to San Antonio. Beneby introduced the CEOs of companies that will<br />

partner with CPS Energy:<br />

• Consert CEO Jack Roberts announced the relocation of that company’s headquarters from<br />

Raleigh, N.C., to San Antonio. The move is expected to bring 50 jobs by the first quarter of<br />

2012, with additional jobs generated through the installation and use of the company’s energy<br />

management software in as many as 140,000 San Antonio homes and businesses by 2015.<br />

CPS Energy launched a pilot program with Consert in 2010 and expects to broaden that pilot<br />

to 1,000 customers later this year. Using the Consert software, customers set user profiles<br />

through their home computers for heating and air conditioning systems, water heaters and<br />

pool pumps to manage their homes’ energy demands. Used in conjunction with other smart<br />

grid initiatives such as advanced meters, the program helps customers automate their energy<br />

conservation and manage their bills, while allowing the utility to conserve energy during<br />

periods of high use, CPS Energy said.<br />

• GreenStar Executive Vice President Rod Gray announced the relocation of the company's<br />

headquarters from nearby Boerne, Texas, to San Antonio, along with 35 jobs. While showing<br />

off a locally assembled street light that uses light-emitting diode technology, Gray said<br />

GreenStar will replace 25,000 street lights in San Antonio, beginning with downtown,<br />

improving the efficiency of decades-old infrastructure.<br />

• ColdCar USA CEO Paul Duran II announced the relocation of his company's headquarters<br />

and 35 of its 45 jobs from Boerne to San Antonio by December. The company assembles<br />

refrigerated trucks used to deliver food items to consumers, and is transitioning its vehicles to<br />

electric and hybrid trucks. CPS Energy will partner with ColdCar on the installation of electric<br />

charging stations for these vehicles.<br />

• Summit <strong>Power</strong>'s Eric Redman provided an overview of plans to provide 200 MW of<br />

purchased power to CPS Energy from the IGCC plant to be built near Odessa. He said the<br />

clean coal plant will provide compressed CO2 for enhanced oil recovery, and will produce<br />

urea fertilizer and sulfuric acid for farming.<br />

• SunEdison CEO Carlos Domenech outlined plans for the solar developer to locate 30 MW<br />

of new solar generation in the CPS Energy service territory. The company plans to open a


egional office in San Antonio later this year.<br />

At the June 20 event announcing the agreements with the clean energy companies, Beneby<br />

asked the audience to stay tuned for more. The selection of another solar provider is<br />

expected within 30 days, following a Feb. 1 request for proposals, he said.<br />

"We are leveraging our low-carbon and renewable energy resources to stimulate economic<br />

and educational development within our community," Beneby said. "At the same time, we’re<br />

reducing power plant emissions by tens of thousands of tons per year—the equivalent of<br />

taking almost 1 million vehicles off our roads," he said. "At CPS Energy, we have the enviable<br />

position of having safe, affordable nuclear power and a new coal plant with the best available<br />

emissions control technology. These resources allow us to support the development of clean<br />

technologies to generate electricity, while maintaining rates among the lowest in the nation."<br />

The U.S. Department of Energy said June 20 it "applauds CPS Energy for its progressive<br />

energy stance that includes voluntarily phasing out old coal plants and replacing them with<br />

cleaner, low-carbon technologies." DOE awarded $450 million to the Texas Clean Energy<br />

Project last year.<br />

CPS Energy provides electricity to approximately 717,000 customers and natural gas to<br />

325,000 customers in and around San Antonio. The utility said it ranks among the nation’s<br />

lowest-cost energy providers and is No. 1 in wind-energy capacity among municipally owned<br />

utilities. —JEANNINE ANDERSON<br />

Back To Top<br />

Consumer advocates at APPA conference emphasize affordability,<br />

planning<br />

The need for long-term planning and a balanced, consumer-focused approach to energy<br />

policy were consistent themes at a panel discussion among consumer advocates at APPA’s<br />

National Conference June 21. APPA President and CEO Mark Crisson moderated the<br />

session featuring Maryland People’s Counsel Paula Carmody, AARP Senior Legislative<br />

Representative Marti Doneghy and <strong>Public</strong> Citizen Director Tyson Slocum.<br />

The current political climate is a problem, the consumer advocates agreed. While the reality<br />

is that we can’t replace all our sources of electricity in the near future, "one difficulty is that we<br />

are so at odds with each other we can’t engage in long-term planning," Carmody said.<br />

Building coalitions and finding common ground on specific issues with groups that you<br />

disagree with on other matters is important, the panelists said.<br />

Asked about key issues, Carmody cited operation of the centralized wholesale markets, in<br />

particular PJM’s capacity market; mergers, including the pending Constellation Energy-<br />

Exelon union; smart grid and smart meters; energy efficiency and demand response; and<br />

infrastructure investment. She said her office advocates for reliable, affordable service, but<br />

mid- and long-term costs need to be considered and "that’s tricky," she said. A more<br />

methodical planning process is needed, she said.<br />

Slocum said his priority is consumer-focused climate change legislation with an orderly<br />

process that provides bargaining room and mitigates costs to consumers. It’s folly for the<br />

United States to enact strict controls if nations like China and India don’t, he said. More<br />

stakeholders like public power utilities are needed at the table to find a consumer-friendly<br />

approach to greenhouse gas emissions, he told the National Conference attendees. <strong>Public</strong><br />

power utilities also should be more aggressive about trumpeting their energy efficiency<br />

accomplishments, he said.<br />

Doneghy cited affordability as AARP’s key issue. While the association is fuel neutral, it has<br />

concerns about both climate change and nuclear power because of affordability questions,<br />

she said. Privacy in connection with cyber security is an emerging issue, she said. Contrary<br />

to views that AARP is anti-technology, the association is very supportive of improvements to<br />

the grid, but is concerned about the affordability of smart meters, she said.


Asked what AARP would like to see from public power, Doneghy delivered the best line of the<br />

conference: "We’d like to see every utility be a public power utility."<br />

Panel questions nuclear power costs, waste disposal<br />

During the question-and-answer period, Bill Carroll, general manager of the Greeneville Light<br />

& <strong>Power</strong> System in Tennessee, asked the panelists for their views on nuclear power.<br />

"We are not opposed to nuclear power, but we are very much opposed to the unaffordability<br />

of it," said Doneghy. "The tendency of the industry is to want all their money up front," she<br />

said. Builders of nuclear plants have asked for their money "years in advance," even decades<br />

in advance sometimes, she said. AARP is "fuel neutral," but the nuclear power industry "has<br />

not been friendly toward consumers in terms of cost," Doneghy said. "Why should ratepayers<br />

be saddled with exorbitant costs, years ahead of time?" she asked.<br />

"Whatever your views on nuclear plants, there are questions about whether they can be built<br />

economically," said Carmody. "We do have some concerns about upfront cost recovery," said<br />

Carmody, who also is vice president of the National <strong>Association</strong> of State Utility Consumer<br />

Advocates. "There is a history of significant cost overruns in the past," she said, and "there<br />

are concerns about the loan guarantee issues."<br />

The dilemma of where to store spent nuclear fuel rods "is an issue our country just doesn’t<br />

want to deal with," Carmody said. "In Maryland, those rods are sitting in water." A lesson<br />

learned from the Japanese disaster at the Fukushima Daiichi nuclear power plant "is that we<br />

have to pay more attention to the storage of these rods," she said.<br />

The centralized storage of nuclear waste "is not going to happen," said Tyson<br />

Slocum of <strong>Public</strong> Citizen, right. With him on the June 21 panel were, from left:<br />

Paula Carmody, Marti Doneghy and APPA CEO Mark Crisson. Photo by Dennis<br />

Brack<br />

that would cost much less.<br />

The problems<br />

facing nuclear<br />

plants "are<br />

economic, not<br />

regulatory," said<br />

Slocum. "’The<br />

industry<br />

continues to<br />

maintain this<br />

model of building<br />

huge $10 billion<br />

plants" that take<br />

too long to<br />

construct, in a<br />

process that<br />

"eats up way too<br />

much public<br />

money," he said.<br />

He noted,<br />

however, that<br />

some utilities are<br />

looking at small<br />

modular units<br />

The issue of what to do with nuclear waste "is significant," Slocum said. The idea of storing<br />

spent fuel and other waste at Yucca Mountain in Nevada was proposed before the United<br />

States was hit by the terrorist attacks of Sept. 11, 2001, he said. As a result of those attacks,<br />

the centralized storage of nuclear waste "is not going to happen" because there would be too<br />

much opposition to shipments of waste passing through communities in rail cars, he said.<br />

<strong>Public</strong> Citizen has been working with the staff of Rep. Edward Markey, D-Mass., "on making<br />

storage more long-term and safer through dry storage casks," he said. —ROBERT VARELA<br />

and JEANNINE ANDERSON<br />

Back To Top


Congress unlikely to do much on energy, key Senate staffers say<br />

Don’t look for much energy legislation out of Congress, key congressional staffers told<br />

APPA’s National Conference June 21. The Senate probably wouldn’t do anything the House<br />

passes and the House "would probably not pass anything we do," said Leon Lowery, Senate<br />

Energy Committee Chairman Jeff Bingaman’s electricity expert. Kellie Donnelly, deputy chief<br />

counsel for Republicans on the committee, agreed.<br />

In contrast to last year’s comprehensive energy bill (S. 1462), which died in the House, the<br />

Senate Energy Committee this year is looking for discrete measures that the two parties can<br />

agree on. Lowery said the committee probably could get floor time for such items.<br />

However, agreement has been hard to come by, mainly because some members are<br />

insisting on offsets for any new spending authorizations, Donnelly said. Even though<br />

authorizations don’t mean that any money will be appropriated for a program, members want<br />

new authorizations to be balanced by spending cuts or deauthorizations, she said. For<br />

example, the Hydropower Improvements Act, S. 629, passed the committee with bipartisan<br />

support, but "we don’t have a path forward" because of objections to a lack of offsets, she<br />

said.<br />

Lowery and Donnelly agreed that cyber security legislation is on the short list of bills that may<br />

be passed, if not this year at least during this Congress. The committee approved a cyber<br />

security bill in May, after revising it to preserve a role for the North <strong>American</strong> Electric<br />

Reliability Corp., Donnelly said. However, APPA and other electric industry groups still have<br />

concerns about the scope of the Federal Energy Regulatory Commission’s authority in the bill.<br />

The Senate Energy Committee’s cyber bill will be melded into a comprehensive bill, along<br />

with cyber legislation from six other committees. Fall is probably the earliest that a<br />

comprehensive cyber security bill could be put together, Donnelly said.<br />

Mary Neumayr, senior energy counsel to the House Energy and Commerce Committee, said<br />

the Energy and <strong>Power</strong> Subcommittee expects to work on its discussion draft cyber bill, the<br />

GRID Act, "in the near future."<br />

Hearings or legislation on transmission costs are a possibility, but not until after FERC issues<br />

its pending rule on allocation of transmission costs, Lowery said. —ROBERT VARELA<br />

Back To Top<br />

EPA sets schedule for issuing new air toxic standards for boilers<br />

The Environmental Protection Agency said June 24 it will propose updated standards for<br />

emissions of air toxics from industrial boilers and certain solid waste incinerators by the end<br />

of October and will issue final standards by the end of April 2012. The agency set the<br />

schedule in a filing with the U.S. Court of Appeals for the District of Columbia Circuit.<br />

EPA issued a final air toxics rule for boilers in February, but at the same time said it would<br />

reconsider the standards because the final version differed significantly from the proposal<br />

and the agency thought further public review was required. EPA in May stayed the effective<br />

date of the standards for major source boilers and commercial and industrial solid waste<br />

incinerators; it did not stay the effective date of the standards for boilers located at area<br />

sources of air toxic emissions.<br />

Back To Top<br />

House committee delays consideration of coal ash bill<br />

The House Energy and Commerce Committee will wait until after the chamber’s July 4 recess


to mark up legislation to prevent the Environmental Protection Agency from regulating coal<br />

ash as a hazardous waste. Committee Chairman Fred Upton, R-Mich., said the delay may<br />

allow supporters to get more Democrats to back the bill, the Coal Residuals Reuse and<br />

Management Act.<br />

The bill would require EPA to conform to its 2000 finding that coal combustion residuals,<br />

commonly called coal ash, do not warrant regulation as a hazardous substance under<br />

Subtitle C of the Resource Conservation and Recovery Act. The measure also would<br />

authorize states to implement coal combustion residuals permit programs to regulate disposal<br />

of coal ash in surface impoundments and other land-based units.<br />

Back To Top<br />

APPA offers two webinars this week on pole attachments, designing<br />

substations<br />

APPA is offering two webinars this week, one on the updated pole attachment order<br />

from the Federal Communications Commission and the other on incorporating threedimensional<br />

design tools into the substation design process.<br />

"FCC Pole Attachment Order and Implications for <strong>Public</strong> <strong>Power</strong>" will be held on<br />

Tuesday, June 28 from 2 to 3:30 p.m. Eastern time. Jim Baller, president, and Sean<br />

Stokes, principal, both with the Baller Herbst Law Group, will provide a detailed<br />

overview of the FCC order to amend its pole attachment rules, which was approved on<br />

April 7, 2011, and discuss the implications for public power.<br />

Most public power utilities are exempt from the FCC’s rules, but the utilities are<br />

indirectly affected because the new make-ready provisions and approach to calculating<br />

the telecom formula provide a benchmark for pole attachment access and rates.<br />

This webinar is free for those who attended the March 17, 2011, webinar "Pole<br />

Attachments – FCC Proceeding and Implications for <strong>Public</strong> <strong>Power</strong>." Otherwise, the fee<br />

is $89 for APPA members and $179 for nonmembers.<br />

On Wednesday, June 29, from 2 to 3:30 p.m. Eastern time, APPA, in conjunction with<br />

Autodesk, will hold a webinar on "Designing Substations with Digital Prototypes:<br />

Nashville Electric Service Moves Beyond 3D."<br />

Geoff Zeiss, industry program director for utilities with Autodesk, will discuss how<br />

utilities can utilize Autodesk’s design software to develop digital prototypes of<br />

substations and explore and enhance each design before it is built. Terri Humel,<br />

principal associate engineer for Nashville Electric Service, will discuss how NES<br />

implemented this technology and how it has increased the speed and accuracy of the<br />

design process.<br />

This webinar is being offered at a discounted rate of $49 for APPA members and $139<br />

for nonmembers.<br />

Each webinar is worth 0.2 continuing education credits and 1.5 professional<br />

development hours. For more information and to register, go to www.APPAAcademy.<br />

org and click on Webinar Series, or contact Kristine Landau at 202/467-2919 or<br />

KLandau@<strong>Public</strong><strong>Power</strong>.org. —HEIDI LAMBERT<br />

Back To Top


In pictures . . .<br />

The Duke Ellington School of the Arts Show Choir performed a powerful rendition of the Star-<br />

Spangled Banner June 20 at the opening of the APPA National Conference in Washington, D.<br />

C. Photo by Dennis Brack<br />

Maude Grantham-Richards, right, electric utility director of the Farmington Electric Utility<br />

System in New Mexico, received APPA's highest honor, the Radin Distinguished Service<br />

Award, at the association's National Conference June 21 in Washington, D.C. Presenting<br />

her with the award was Lonnie Carter, president and CEO of Santee Cooper in South<br />

Carolina, chair of the APPA board of directors for 2010-11. Photo by Dennis Brack


APPA President and CEO Mark Crisson, at podium, describes upcoming environmental<br />

regulations expected to affect utilities. Photo by Dennis Brack<br />

Back To Top<br />

Classifieds<br />

Management<br />

Superintendent—City of<br />

Monmouth, Ore., <strong>Power</strong> & Light.<br />

Due to the retirement of the<br />

incumbent, the city of<br />

Monmouth, Oregon, seeks<br />

applicants for the position of<br />

superintendent of the city’s<br />

electric utility department. The<br />

<strong>Power</strong> and Light Department is<br />

an integral part of a wellmanaged<br />

and progressive city<br />

organization. The<br />

superintendent is a direct report<br />

to a city manager that reports to<br />

a supportive and effective City<br />

Council. Ideal candidates will<br />

offer broad experience and a<br />

successful record in hands-on<br />

electric distribution utility<br />

management. The<br />

superintendent is responsible for<br />

planning, directing, managing,<br />

and overseeing all activity for the<br />

<strong>Power</strong> & Light Department<br />

Substation technician<br />

Substation technician—GEUS.<br />

Requires high school diploma or<br />

equivalent. Applicant must have<br />

a minimum of five years<br />

experience. Prefer electrical<br />

utility background, experience in<br />

switching and operation of<br />

substation equipment,<br />

manufacturers or industrial<br />

training on breakers,<br />

transformers or battery<br />

maintenance. Must determine<br />

cause of electrical control<br />

problems and needed repairs,<br />

read and interpret blueprints and<br />

schematic drawings, operate<br />

electrical test equipment.<br />

Perform maintenance,and repair<br />

of circuit breakers, transformer<br />

load tap changers, station<br />

batteries, switchgear, control<br />

wiring and other substation<br />

equipment. Starting wage DOQ<br />

plus benefits. To apply, submit a<br />

City of Greenville/GEUS


including administration,<br />

engineering, construction,<br />

operations, maintenance, and<br />

purchasing materials while<br />

working with peer managers<br />

employed by the city to ensure<br />

the financial performance of the<br />

electric utility and provide<br />

optimal service to customers.<br />

The ideal candidate will offer the<br />

following traits:<br />

• 10 years of progressively<br />

responsible electric utility<br />

management or an equivalent<br />

combination of education and<br />

experience that demonstrates<br />

qualification;<br />

• Comprehensive knowledge and<br />

hands-on experience with<br />

electric utility construction,<br />

planning, scheduling, operations,<br />

maintenance, and purchasing<br />

procedures;<br />

• Effective working knowledge of<br />

NEC, NERC and FERC<br />

Compliance Standards, WECC,<br />

NESC, OPUC, and OSHA;<br />

• Working knowledge of the<br />

Bonneville <strong>Power</strong> Administration<br />

and general power supply<br />

administration in the Northwest<br />

Region;<br />

• Experience in public rates,<br />

finance, workforce development,<br />

and labor unions;<br />

• Excellent leadership, people,<br />

interpersonal, and<br />

communication skills and a<br />

commitment to teamwork within<br />

a municipal environment;<br />

• Proactive orientation that will<br />

keep the city well-positioned in a<br />

dynamic industry environment.<br />

Candidates that can effectively<br />

demonstrate most but not all of<br />

these requirements are<br />

encouraged to apply. While<br />

public utility experience is<br />

desired, those individuals from<br />

private utility sectors are also<br />

encouraged to apply.<br />

Monmouth <strong>Power</strong> & Light lies<br />

application form. Resumes may<br />

be submitted as an addendum to<br />

the official application form.<br />

Submit to the City of Greenville<br />

Human Resources Office<br />

located at 2821 Washington St.,<br />

by U.S. mail to P.O. Box 1049,<br />

Greenville, Texas 75403;<br />

through email to jobapps@ci.<br />

greenville.tx.us. Application<br />

forms are available to download<br />

on the city's website at: www.ci.<br />

greenville.tx.us. (903/457-<br />

3118 or for TDD, (903/457-3128.<br />

Open until filled.<br />

Lineworker—The city of Ames,<br />

Iowa, is accepting applications<br />

for a journey-level electric<br />

lineworker. This position<br />

performs work related to the<br />

construction, maintenance, and<br />

repair of overhead and<br />

underground electrical<br />

distribution and transmission<br />

systems. Hourly rate: $32.26/<br />

hour, plus standby pay and a<br />

comprehensive benefit package.<br />

To apply, go to www.cityofames.<br />

org/index. aspx?page=128<br />

Application deadline is Friday,<br />

June 24, 2011, at 5 p.m. Central<br />

Standard Time. Requires<br />

completion of a recognized<br />

apprenticeship-training program<br />

in high voltage electric<br />

transmission and distribution<br />

system repair, and a valid<br />

driver’s license. Must obtain a<br />

Type A Commercial Driver’s<br />

License within one month of<br />

appointment. A post-job offer<br />

physical, including drug test also<br />

required.<br />

Key accounts<br />

Key account representative—<br />

RPU, a division of the city of<br />

Rochester, Minn. (pop. 106,000),<br />

is the largest municipal utility in


within the lush Willamette Valley,<br />

20 miles west of Salem and 55<br />

minutes east of the Oregon<br />

coast. We serve 4,200 electric<br />

customers, including Western<br />

Oregon University. Please email<br />

questions and resumes to<br />

mail@mfpllc.us and include<br />

"Monmouth Superintendent" in<br />

the subject line.<br />

Check out APPA's career services on the Web<br />

the state of Minnesota and is<br />

seeking an outgoing,<br />

professional personality to<br />

manage the energy service<br />

needs of industrial and<br />

commercial accounts. Salary<br />

range $73,099 to $107,497. As<br />

the third largest city in the state<br />

of Minnesota and one of the<br />

fastest-growing municipalities,<br />

the city of Rochester is often<br />

named as a best place to live,<br />

raise a family, and retire. In<br />

2010, Kiplinger named<br />

Rochester one of the Top Ten<br />

Cities for the Next Decade. City<br />

applications are required and will<br />

be accepted until the position is<br />

filled. Applications received by<br />

June 18, 2011 will be given<br />

priority consideration. Apply<br />

online at: www.rochestermn.gov.<br />

EOE.<br />

Visit the Career Center at <strong>Public</strong><strong>Power</strong>.org. Our career center allows job seekers to upload<br />

resumes—and recruiters to obtain resumes from job seekers. APPA members can post<br />

online ads for $175 for a 30-day posting or $225 for a 60-day posting (rates are $275 and<br />

$325, respectively, for nonmembers). Ads in <strong>Public</strong> <strong>Power</strong> Daily and <strong>Public</strong> <strong>Power</strong> <strong>Weekly</strong><br />

cost 70 cents per word for members and 80 cents per word for nonmembers, for a oneweek<br />

run. Job posting subscriptions are available in packages of five or 10, or unlimited for<br />

a full year. If you have questions about classified ads, write or call Robert Varela,<br />

rvarela@<strong>Public</strong><strong>Power</strong>.org or 202/467-2947.<br />

Back To Top<br />

Events Calendar


Webinar – FCC Pole Attachment<br />

Order and Implications for <strong>Public</strong><br />

<strong>Power</strong><br />

June 28<br />

Webinar – Designing Substations<br />

with Digital Prototypes: Nashville<br />

Electric Service Moves Beyond 3D<br />

June 29<br />

Webinar – RP3 Series: Safety<br />

July 6<br />

Webinar – Superconductivity<br />

Applications Update<br />

July 12<br />

For a full APPA Events Calendar, visit <strong>Public</strong>power.org.<br />

Back To Top<br />

Webinar – RP3 Series: Reliability<br />

July 13<br />

Webinar – Developments in Real-<br />

Time Energy Management<br />

July 14<br />

Webinar – Strategic Planning for<br />

Utility Boards and City Councils<br />

July 19<br />

Webinar – RP3 Series: System<br />

Improvement<br />

July 20<br />

Webinar – Tips on Developing a<br />

Successful DEED Grant Proposal<br />

July 20<br />

Webinar – RP3 Series: Work<br />

Force Development<br />

July 27<br />

Webinar – Performance<br />

Monitoring and Accountability for<br />

Boards<br />

Aug. 16<br />

Copyright © 2011, <strong>American</strong> <strong>Public</strong> <strong>Power</strong> <strong>Association</strong>

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