TPPA Board President’s Message Whats Inside · 2019. 3. 4. · we hope our members will answer...

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Whats Inside: February 2019 Executive Director’s Note 2 Washington Report Infrastructure, Legislative Issues 3 Regulatory Update CCN Requirements Planning 4 TPPA Member Profile Brownfield 8 TPPA Calendar TPPA Annual Meeting July 29-31, 2019 Westin Riverwalk San Antonio, TX TPPA Legal Seminar Oct. 31 - Nov. 1, 2019 Westin Riverwalk San Antonio, TX TPPA’s Mailing Address: PO Box 82767 Austin, TX 78708 TPPA’s Physical Address: 701 Brazos, Suite 495 Austin, TX 78701 PH - 512-472-5965 FAX - 512-472-5967 www.tppa.com www.tppa.com TPPA Board President’s Message By Kean Register, City Manager, Bryan Welcome to another edition of Texas Public Power, our association’s monthly newsletter. As the mild Texas winter meldsinto spring, the 72 municipally- owned electric utilities and our allied joint action agencies, member cooperatives and river authorities are pleased to be engaged with the 86 th Regular Session of the Texas Legislature in Austin. Amongst TPPA’s core mission and objectives is serving as a unifying, common voice for municipal utilities to the legislature, and we seek your help in communicating to the Capitol. As you will see in this issue our member companies are engaging with policymakers in the Capitol and at the regulatory agencies in meaningful and constructive ways to share the impressive story and benefits of MOUs as important, contempo- rary American institutions. From small towns to big cities, wherever public power exists, it is an expression of the American ideal of local professionals working on behalf of citizen owners to meet local needs. It is heartening to hear from our legislators of the broad awareness of the role MOUs have in ensuring a stable, reliable grid and growing recognition of the foundational, diverse-sourced electric supply derived from MOU-owned-genera- tion, accounting for about 15 percent of the state’s base load. As market participants, TPPA members are also working with the Public Utility Commission and other electricity stake- holders to ensure summer readiness in a period of tight reserve margins. We appreciate the leadership of PUC Chairman DeAnn Walker and her fellow commission- ers, as well as the legislative leadership and ERCOT’s management, for the early spring preparedness initiative and monitoring the marketplace with such rigor, ensuring good communication and planning between all market participants for a reliable, secure summer peak season. A public power utility has many distinct characteristics that benefit the consumers of the individual community it serves. Help us to tell of the positive benefits of the TPPA member utilities in Austin this year promoting the “Three E’s” - providing reliable, Efficient energy; responsible Environ- mental ractices and anchoring our hometowns’ Economic development efforts. Thank you! It was a pleasure to host PUC Commissioner Shelly Botkin, a former Capitol energy policy staffer and ERCOT external affairs director, at our January 31 board meeting for a conversation about her regulatory philosophy and vision as the newest PUC appointee of Governor Greg Abbott. Botkin was welcomed by members of our executive committee - Weatherford’s Sharon Hayes (president 2018), Fredericksburg’s Kent Myers (president-elect 2020) and current board president Kean Register of Bryan.

Transcript of TPPA Board President’s Message Whats Inside · 2019. 3. 4. · we hope our members will answer...

Page 1: TPPA Board President’s Message Whats Inside · 2019. 3. 4. · we hope our members will answer the call to communicate with their hometown legislators. ... Thanks for your support

February 2019/Page 1

Whats Inside:

February 2019

Executive Director’s Note 2

Washington Report

Infrastructure, Legislative Issues 3

Regulatory Update

CCN Requirements Planning 4

TPPA Member Profile

Brownfield 8

TPPA Calendar

TPPA Annual MeetingJuly 29-31, 2019Westin RiverwalkSan Antonio, TX

TPPA Legal SeminarOct. 31 - Nov. 1, 2019Westin RiverwalkSan Antonio, TX

TPPA’s Mailing Address:

PO Box 82767Austin, TX 78708

TPPA’s Physical Address:

701 Brazos, Suite 495Austin, TX 78701

PH - 512-472-5965FAX - 512-472-5967www.tppa.com

www.tppa.com

TPPA Board President’s MessageBy Kean Register, City Manager, Bryan

Welcome to another edition of Texas Public Power, ourassociation’s monthly newsletter.

As the mild Texas winter meldsinto spring, the 72 municipally-owned electric utilities and our allied joint action agencies, membercooperatives and river authorities are pleased to be engaged withthe 86th Regular Session of the Texas Legislature in Austin.

Amongst TPPA’s core mission and objectives is serving as aunifying, common voice for municipal utilities to the legislature,and we seek your help in communicating to the Capitol.

As you will see in this issue our member companies areengaging with policymakers in the Capitol and at the regulatoryagencies in meaningful and constructive ways to share theimpressive story and benefits of MOUs as important, contempo-rary American institutions. From small towns to big cities, wherever public power exists, it isan expression of the American ideal of local professionals working on behalf of citizen

owners to meet local needs.It is heartening to hear from our

legislators of the broad awareness of therole MOUs have in ensuring a stable,reliable grid and growing recognition of thefoundational, diverse-sourced electricsupply derived from MOU-owned-genera-tion, accounting for about 15 percent of thestate’s base load.

As market participants, TPPA membersare also working with the Public UtilityCommission and other electricity stake-holders to ensure summer readiness in aperiod of tight reserve margins. Weappreciate the leadership of PUC ChairmanDeAnn Walker and her fellow commission-ers, as well as the legislative leadership andERCOT’s management, for the early springpreparedness initiative and monitoring themarketplace with such rigor, ensuring goodcommunication and planning between allmarket participants for a reliable, securesummer peak season.

A public power utility has manydistinct characteristics that benefit theconsumers of the individual community it

serves. Help us to tell of the positive benefits of the TPPA member utilities in Austin thisyear promoting the “Three E’s” - providing reliable, Efficient energy; responsible Environ-mental ractices and anchoring our hometowns’ Economic development efforts. Thank you!

It was a pleasure to host PUC CommissionerShelly Botkin, a former Capitol energypolicy staffer and ERCOT external affairsdirector, at our January 31 board meetingfor a conversation about her regulatoryphilosophy and vision as the newest PUCappointee of Governor Greg Abbott. Botkinwas welcomed by members of our executivecommittee - Weatherford’s Sharon Hayes(president 2018), Fredericksburg’s KentMyers (president-elect 2020) and currentboard president Kean Register of Bryan.

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Texas Public Power AssociationPO Box 82768Austin, Texas 78708Phone (512) 472-5965Fax (512) 472-5967www.tppa.com

BOARD OF DIRECTORS

PresidentKean Register (Bryan)

President-ElectKent Myers (Fredericksburg)

Vice-PresidentShawn Raborn (La Grange)

Secretary/TreasurerJeff Janke (Garland Power & Light)

Past PresidentSharon Hayes (Weatherford)

Matt Bentke, Bluebonnet EC, Ron Bowman (Boerne), Jim Briggs(Georgetown), Gary Brown (WTMPA), John Bruciak(Brownsville PUB), Doug Faseler (Seguin), Paula Gold-Williams(CPS Energy), Bob Kahn (TMPA), David McCalla (LubbockP&L), Lowell Ogle (Brenham), Alicia Price (GEUS), JackieSargent (Austin Energy), Ian Taylor (New Braunfels Utilities),Phil Wilson (LCRA) and Mike Wittler (KPUB).

STAFFExecutive DirectorRussell T. Keene

Operations ManagerDebra L. Scarbo

Regulatory Manager (Open)

Office Manager(Open)

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: Bluebonnet, Central Texas, Fayette,Guadalupe Valley, Pedernales, Texas Electric Cooperatives

February 2019/Page 2

Alexis de Tocqueville, the French government official sent tothe U.S. by his government in 1831 to observe penal conditions,was a keen observer of America’s early civic life and liberties. Heseized quickly upon one of the unique aspects of American societyof that time, namely the part played by voluntary private associa-tions in the organization of social, political, and economic affairs.\

In his book Democracy in America, written in two parts in1835 and 1840, de Tocqueville observed Americans valued the rightto “associate freely in everything” and that the “art of association”could be used to explain both how American society functioned aswell as how complex social and economic problems might besolved.

In the US and in Texas, democracy is thankfully alive and well all these years later andindeed “associations” play a vital role in our civic life through clubs, causes and civicgroups, as well as trade groups representing professions and industries.

In the case of TPPA today, our association’s central mission includes serving as a voicefor the industry and to tell the proud story and many benefits of municipally-owned electricutilities to external audiences including policymakers.

We look forward, with your help, to doing just that in the next 140 days of the 86th

Regular Session of the Texas Legislature. The Session is concluding its 30th day as thiscolumn is penned and will be a third of the way to completion by the time you read this.

More than 6,000 bills are likely to be filed between the Senate and the House during thisSession and there will no doubt be a number of issues that will impact MOUs.

TPPA is already hard at work to reinforce the legacy of MOU pioneering roles in theearliest days of electricity and in the quite routine development and deployment of citizen-approved, city-owned electric services in Texas alongside water, wastewater -- and in somecases -- natural gas utility -- ownership. This legacy of local investment and citizen owner-ship continues today with MOUs, along with cooperatives, occupying a critical marketposition in the Texas electric sector.

Here in Austin we will work to maintain the current framework of the Texas electricitymarketplace, which has allowed municipally-owned utilities to greatly contribute to thestate’s diverse and healthy electric grid, and we will work with our legislators to preservelocal control of MOUs concerning rates, policies and structure.

TPPA has member utilities in 19 Senate districts and 60 House districts and when asked,we hope our members will answer the call to communicate with their hometown legislators.But interactions between municipal utility interests and state government occur in manyplaces outside of legislative offices and committee rooms as well, and we ask you to alwaysengage with your local legislator at home about issues of importance to your utility andyour customers. Remember TPPA’s “Three E’s” — providing local reliable Electricitydelivery, doing our part to safeguard the Environment and supporting hometown EconomicDevelopment.

Thanks for your support of TPPA.

By Russell T. Keene

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February 2019/Page 3

CALENDAR

Focus on Infrastructure, other Legislative Issues

With the 116th Congress underway, theAmerican Public Power Association has afull plate of legislative priorities for the yearincluding potential infrastructure legislationthat could include an energy title and beingready to fight any further attempts to divestthe transmission assets held by theTennessee Valley Authority (TVA) andPower Marketing Administrations (PMAs),said Delia Patterson, the Association’sSenior Vice President, Advocacy & Commu-nications and General Counsel.

She made her comments at the U.S.Energy Association’s 15th Annual State ofthe Energy Forum in Washington, D.C., onJan. 24. In her remarks, Patterson outlinedthe Association’s legislative and regulatorypriorities.

LegislationWith respect to public power’s priori-

ties in the 116th Congress, Patterson notedthe importance of infrastructure for public

power.Speaker of the House Nancy Pelosi has

said that moving an infrastructure packageis something that Democrats in the Houseof Representatives would like to do. “Webelieve that infrastructure legislation couldshow up on the Senate side as well,”Patterson told the USEA forum.

The Association has been involved inprior efforts to get infrastructure legislationacross the finish line in Congress, Pattersonsaid.

The Association has been pushing forhydropower licensing and relicensingreform. “A lot of our members depend onhydro and the processes for licensing orrelicensing have been pretty lengthy andduplicative in certain areas,” Patterson said.

Tax-exempt municipal bonds continueto be a top priority for public power. “Tax-exempt financing is how we invest in newinfrastructure,” Patterson noted. Publicpower utilities use tax-exempt financing to

invest in generation or transmission anddistribution. “We want to preserve that.”

Patterson noted that while the Tax Cutsand Jobs Act of 2017 maintained publicpower’s ability to use tax-exempt financing, iteliminated the use of tax-exempt advancerefunding bonds. The Association would liketo see the reinstatement of tax-exemptadvance refunding bonds.

Another priority for the Association inthe legislative arena relates to the possibledivestment of transmission assets held bythe Tennessee Valley Authority (TVA) andthree of the Power Marketing Administra-tions (PMAs) and moving from cost-basedrates to market-based rates.

“We pushed back on that idea strongly,along with a number of other folks within theindustry when this was proposed in thePresident’s FY 2019 budget. Congresspushed back as well and did not accept the

continued on pg. 6

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February 2019/Page 4

continued on pg. 5

New State CCN Requirements Call for Advanced PlanningBy Mark Dreyfus, TPPARegulatory Consultant

A long-standing provision of Texasutility law and policy has been deferral tolocal government decision making fortransmission construction approvals andsiting by municipal utilities. The PublicUtility Regulatory Act (PURA) requires thatInvestor Owned Utilities and cooperativesreceive approval from the Public UtilityCommission for a Certificate of Convenienceand Necessity, or “CCN,” prior to providingservice from a transmission project. Munici-pal utilities have previously been excludedfrom the Commission’s authority to reviewand approve siting for transmissionprojects. That exclusion will in two shortyears end, so it is time for municipal utilitiesplanning future transmission investments toprepare in some instances for new regula-tory processes and oversight.

In 2015, the 84th Texas Legislatureapproved Senate Bill 776, which requiresbeginning on September 1, 2021, before a

municipal utility may construct, install orextend a transmission facility outside of itsmunicipal boundary (or city limits), it mustobtain a CCN from the Commission. Trans-mission projects entirely within the municipalboundary will continue to fall under thejurisdiction of local authorities. But anyproject crossing outside the city limits mustreceive a Commission approved CCN.

The CCN process at the Commission iswell known, a contested case process inplace for decades for electric utilities andcooperatives. The applicant—in this case,the municipal utility or its agents—must filewith the Commission an application demon-strating the evidentiary basis of the “need”for the project and the superiority of anypreferred route. The Commission will assessneed based on either (i) an economic cost-benefit analysis study or (ii) the needs of theinterconnected transmission systems tosupport a reliable and adequate network andto facilitate robust wholesale competition.

After providing notice of the planned

project to members of the public, includingland owners along the preferred andalternate routes, the Commission will hold ahearing if requested. The Commission maygrant the application only if it finds that theproposed project is “necessary for theservice, accommodation, convenience, orsafety of the public.” In its review, theCommission will assess the adequacy ofexisting service and the need for additionalservice. Especially in its review of alternateroutes for a transmission line, the Commis-sion will look at other factors, such ascommunity values, recreational and parkareas, historical and aesthetic values andenvironmental integrity. In this phase ofthe assessment, the Commission may hearfrom landowners along the preferred andalternate routes. Commission rules requirethat a “line shall be routed to the extentreasonable to moderate the impact on theaffected community and landowners unlessgrid reliability and security dictate other-

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February 2019/Page 5

Regulatory Updatecontinued from pg. 4

wise.” Typically, the Commission’s decision is rendered within 365days of the application.

September of 2021 may seem like a long time away, but it’s nottoo far off to begin working through the schedule and resourceneeds for entering the Commission process. Prior to filing theapplication, a utility will be faced with working through its financialand service adequacy justifications for the project need. Alternateroutes must be developed and assessed. And the applicationshould be accompanied by the written testimony of the utility’sexperts in transmission planning, finance, public involvement andexecutive leadership. Once the application is submitted, theregulatory process could take up to a year for approval. All that,even before acquiring right-of-way and developing a detailedconstruction plan.

Of course, some construction projects will be more or lessextensive and complex than others, resulting in greater or lesserregulatory scrutiny. Landowner disputes, in particular, will extendthe time for Commission consideration. As a result, some casesmay fly through the Commission process, while others are drawnout. Your advanced planning may well be the difference between asuccessful project that flies and one that stalls.

Nearly two dozen TPPA member executives and staff had anopportunity in January to talk summer 2019 preparations withPUC Chairman DeAnn Walker. Chairman Walker—picturedhere (from left to right) Gretchen Reuwer of NBU, John Bruciak,BPUB, PUC Chairman DeAnn Walker, George Morrow of DMEand Alicia Price of GEUS—shared her priorities for summerreliability and heard directly from TPPA’s member leadershipabout public power’s emphasis on summer preparations as part ofthe industry’s deep commitment to their communities. TheChairman’s summer preparation conversations resulted in a newinitiative at ERCOT emphasizing collaboration with gas pipelineoperators, titled the Gas Electric Coordination Working Group,in which TPPA members will participate.

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Washington Reportcontinued from pg. 3

continued on pg. 10

proposal,” Patterson said. “If it comes up inthe Fiscal Year 2020 budget, we will be readyto fight again.”

In the area of grid security, Patterson saidthat Congress has been very active in thisarea “and we want to be there” to remindlawmakers that the electric utility sector is oneof the few critical infrastructure sectors thathas mandatory and enforceable reliabilitystandards.

“We’re pushing to increase informationsharing and liability protection with respect togrid security,” she went on to say.

The Association has a three-year,cooperative agreement with the Departmentof Energy under which the DOE has providedthe trade group $2.5 million per year “to helpour members with cyber security so we’rereally appreciative of that.”

Wholesale power markets continue to bean important issue for the Association. TheAssociation supports continued oversight ofregional transmission organization-run

wholesale electricity markets. TheAssociation’s “main issue is to preserveour members’ self-supply rights withinexisting mandatory capacity markets,”Patterson told the forum.

Environment issues andthe 116th Congress

On the environment front, Pelosi hasreinstated the Select Committee on ClimateChange and it has been renamed theSelect Committee on the Climate Crisis.

“It’s clear that on the House side weshould expect to see hearings on climatechange and we plan to be involved inthose discussions,” Patterson said, notingthat the select committee is required tocomplete a report addressing next stepson climate change by March 2020.

“It’s not likely that Congress as awhole will move anything across the finishline,” the Association official said, butregardless there is an expectation for a lotof activity in the House.

The House may also move smallerpackages to address climate changethrough legislation on electric vehicles,

distributed energy resources andrenewables, Patterson said.

Three key electricregulatory issues

Patterson said that there are three keyelectric regulatory issues for the Associa-tion: (1) RTO and ISO organized markets,particularly mandatory capacity markets; (2)federal and state jurisdictional issues andthe changing grid; and (3) rising transmis-sion costs in FERC-regulated rates.

In the RTO and ISO markets, Pattersontouched about capacity market matters.Among other things, she noted that FERC“any day now” is expected to issue anorder involving an ongoing investigation ofthe PJM Interconnection capacity market(Docket No. EL18-178, et al.). The Associa-tion participated in this docket at FERC.

The Association and several otherenergy-related groups in late December toldFERC that competitive wholesale electricitymarkets do not exist to guarantee a returnon merchant investments or to protect

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February 2019/Page 7

2019 TPPA Award Nominations Requested by April 15th

continued on pg. 11

The TPPA Awards Program recognizesorganizations and individuals for contribu-tion to their communities, public power andTPPA. One or more representatives of anyTPPA member system may make nomina-tions. The awards will be presented at theTPPA Annual Meeting during the AwardsBreakfast on Wednesday, July 31st. TheTPPA Annual Meeting will be held on July29-31, 2019 at the Westin Riverwalk in SanAntonio, Texas. The deadline for submittingnominations is Monday, April 15, 2019.TPPA will give awards in the followingcategories:

Distinguished Service Award - Thisaward recognizes outstanding leadershipand dedication to public power by an officialof a TPPA member system. Eligibility: Anyofficial of a TPPA member system who hasbeen active in the Association for at leasttwo years. Criteria: Official must 1) displayexceptional leadership; 2) provide signifi-cant contributions to public power locally

and in Texas. Past winners include:2018 Phil Wilson, LCRA2017 Mark Dreyfus, Austin Energy2016 Phil Williams, Denton Municipal

Electric2015 Vicki Reim, Bryan Texas Utilities2014 Bill Dollar, Garland

System Achievement Award - Thisaward recognizes outstanding systemachievement by TPPA member organiza-tions. Eligibility: Any TPPA membersystem. Criteria: Member system 1) iswidely recognized in the public powerfield; 2) have enhanced the prestige ofpublic power; 3) have improved service tocustomers. Past winners include:

2018 Kerrville PUB2017 CPS Energy and New Braunfels

Utilities2016 City of Seguin2015 City of Fredericksburg2014 Bryan Texas Utilities

Paula J. DiFonzo Industry AchievementAward –This award recognizes women inpublic power who have made outstandingleadership and individual contributions totheir public power system in Texas. Eligibil-ity: Any female employee of a Texas publicpower system who has been active in theassociation for at least two years. Criteria:Nominees must 1) display outstandingleadership; 2) provide individual contribu-tions to their public power system. This awardwas originally named the Industry Achieve-ment Award. Past winners include:

2018 Sue Ann Harting, TMPA and GEUS2017 Dr. Judith Dykes Hoffmann, New

Braunfels Utilities

Gary Brown Service Award- This awardrecognizes outstanding leadership anddedication by a municipal official in a cityserved by a TPPA member utility. Eligibility:Any official of a city served by a TPPAmember utility who has been active in the

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February 2019/Page 8

TPPA Member Profile: Brownfield

continued on pg. 9

Brownfield Power & Light Crew

BROWNFIELD , TEXAS. Brownfield isat the junction of U.S. Highways 62, 82, 380,and 385 and State Highway 137, forty milessouthwest of Lubbock in central TerryCounty.

In 1903 town, promoters W. G. Hardinand A. F. Small arrived in Terry Countyplanning to turn Small’s few hundred dollarsinto thousands. The two men bought thecounty’s center lot from A. M. (Dick)Brownfield and began to plat the site (then apasture) with only 100 feet of wire, givingevery voter in the county a lot in order toenhance the town’s chances of becomingthe county seat; they named the town after aprominent ranching family.

Streets (named for first settlers) weredesignated and the founders donated oneblock each for the courthouse, the school,and churches. J. R. Hill, the first to arrivewith his family, built Hill’s Hotel, the firstbusiness establishment, on the north side ofthe square. On April 1, 1903, Hill opened thefirst post office in his hotel building andbecame the first postmaster.

The settlers lived in tents, coveredwagons, or dugouts until constructionmaterials for houses could be hauled from

Big Spring or Colorado City. A school wasbuilt, but since there was no money for ateacher or equipment it served as a dancehall, church, and general gathering placeuntil 1905, when the first school term began.

On June 28, 1904, Brownfield was votedcounty seat by a slim margin over the largerand older town of Gomez. The Brownfield

State Bank was established on October 7,1905, to serve Gaines, Terry, and Yoakumcounties, as well as parts of eastern NewMexico, since the area had no convenientbanking services. With the coming of theautomobile in 1910 and the railroad in 1917,the town and county experienced rapidgrowth. To encourage the building of arailroad from Lubbock to Seagraves, thecitizens donated the right-of-way andstation grounds to the South Plains andSanta Fe Railroad Company.

The town was incorporated in October1920 with a population of 1,200 and one yearlater held a vote on the issuance of bondsfor the creation of a power plant. Citizensvoted against the proposal, but undeterred,a group of residents formed a light and icecompany. Many electrical plants of the timewere linked to ice manufacturing andworked to get a new bond package.

In 1921, voters overwhelmingly

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February 2019/Page 9

Brownfield and Brownfield Power & Lightcontinued from pg. 8

approved new bonds in the amount of$16,000 for a municipal power plant. Buildingsoon began, and in February of 1923,electricity was turned on with a 75 horse-power Fairbanks Morse engine to furnishpower for the city. The engine was started at5:00 a.m. and ran until 8:00 a.m. then startedagain at 2:00 p.m. and ran until 12:00 mid-night. Two mornings a week the electricitywas on for three hours so housewives couldget their ironing done. Electric irons werepractically the only appliances anyone hadat the time.

Agricultural development was the majorsource of population growth until 1937, atwhich time 3,100 people lived in the town. By1940 Brownfield was the leading grain centeron the South Plains and an important part ofthe economic development of thenorthern Permian Basin. By 1941, four oilwells were in operation and more wereexpected. In 1950, diversified agriculture wasstill the main occupation, but oilfields had

attracted petroleum industries as well.In 1977 the city completed an intercon-

nect facility to purchase a portion of itselectrical needs from Southwestern PublicService Company. To ensure future poweravailability, Brownfield helped create a jointaction agency, the West Texas MunicipalPower Agency, along with the cities ofLubbock, Tulia and Floydada. In 2003, theCity of Brownfield entered into a fullrequirements power purchase agreementwith Southwestern Public Service Companyto provide the energy demands of the city.

“One of the top challenges for our cityis the continued ability to provide moredemand for services from the citizens withlimited resources. In addition, the city facesmore and more regulations with a limitedworkforce. As an MOU, we are continuallychallenged with modern technology,” saidBrownfield City Manager Eldon C. Jobe.“The technology is constantly changingand presents a need for more oversite and

education from our employees, while at thesame time they have their normal duties toperform.”

Currently the City of Brownfield hasnine electrical employees serving 4,123meters to a population of 9,657 citizens.Brownfield’s economy is based uponagriculture, oil and gas, and has recentlybeen designated as the “Grape Capital ofTexas”.

“TPPA has been a wonderful source ofinformation and support for our small townutility. I have always been impressed withtheir professionalism and welcomingattitude throughout the organization,”added Jobe. “TPPA is a good example ofhow an association of utilities can worktogether to reach common goals.”

Article by the City of Brownfield andBrownfield Power & Light.

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February 2019/Page 10

Washington Reportcontinued from pg. 6

merchant plant investors from market risks.The letter was submitted as part of the PJMdocket.

The Association also participated inthe resiliency docket that FERC institutedafter turning aside a DOE Notice ofProposed Rulemaking. At the same time,FERC in its order said that it was launchinga new proceeding (Docket No. AD18-7-000)to specifically evaluate the resilience of thebulk power system in the regions operatedby RTOs and ISOs.

“We definitely believe in fuel diver-sity,” Patterson said. “We didn’t feel likethe DOE NOPR was the way to go. We saidto FERC, on resilience this is a regionalissue. Let folks work things out on aregional basis.”

RTOs and ISOs last year responded toFERC by submitting filings that discussedhow to define resilience, detailed theirefforts to assess and maintain grid resil-ience and, in some instances, offered

proposals for ways in which to enhanceresilience.

“Based on the filings that the ISOs andRTOs submitted in the docket, we didn’t seethat there was necessarily a resilienceemergency,” the Association official said.

Rising transmission costsDuring her presentation, Patterson also

presented a slide showing that almost half ofthe transmission projects that were approvedbetween 2013 and 2017 did not go throughthe full vetting process that happens in theISOs and RTOs. “That’s a big problem,” shesaid.

The data was from a Brattle Groupreport, “Transmission Competition UnderFERC Order No. 1000: What We Know AbutCost Savings to Date.” (Oct. 25, 2018).

“We’re concerned about transparency.We’re concerned about rising transmissioncosts,” Patterson said. FERC Chairman Neil

Chatterjee has said that FERC wants tocontinue to look at returns on equity andincentives “and that could mean higherROEs and higher incentives.”

Association rate designpaper to be issued in 2019

Patterson also noted that the Associa-tion is set this year to release a rate designpaper.

The paper will include insights from sixindustry experts that details what they seeas the future of rate design.

Patterson noted that the draft versionof the paper revealed a common thread.Namely, that “most everybody agreed thattime-based pricing” should be incorporatedinto future rate designs.

The paper is scheduled to be releasedby the end of the first quarter.

TPPA Recent HighlightsEngaging with legislators is important year round. Surrounding

TPPA’s recent January Board meeting in Austin, many of our boardmembers took the opportunity for visits with hometown legislators

Gary Miller, GM of BTU(left) and Austin Energy GMJackie Sargent enjoyed arecent Capitol office visitwith Senator CharlesSchwertner, R- Georgetown,whose district ranges fromnorth of Austin eastward toBryan and College Station

Kerrville PUB GeneralManager & CEO MikeWittler and FredericksburgCity Manager Kent Myershosted Hill Country SenatorDr. Dawn Buckingham, R-Lake Travis, for the board ofdirectors’ barbeque dinner.

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February 2019/Page 11

TPPA Awardscontinued from pg. 7

Mark your Calendars

TPPA

LegalSeminar

Oct. 31 - Nov. 1, 2019

Westin RiverwalkSan Antonio, TX

association for at least two years. Criteria:Nominees must 1) display exceptionalleadership; 2) provide significant contribu-tions to public power locally and in Texas.Past winners include:

2018 Tony Michalsky, College Station Utilities

2017 Lowell Ogle, Brenham2016 Ron Bowman, Boerne2015 Mayor Jack Pratt, Kerrville2014 Larry Stavinoh, Floresville Electric Light & Power System

TPPA Honor Roll - This award recog-nizes service to TPPA by an elected orappointed official of a TPPA member system.Eligibility: Any elected or appointed officialof a TPPA member system or a corporatemember. Criteria: Nominees’ personalservice to TPPA must have 1) made asubstantial contribution toward the attain-ment of the goals of TPPA; 2) made asubstantial contribution toward enhancing

the prestige of the Association. Pastwinners include:

2018 Bill Smart, Hometown Connec tions and

2018 Wendell Bell, TPPA2017 Did not award2016 Patty Cruz, Leidos Engineering2015 Julie Eby, LCRA2014 Austin Energy, Georgetown Utility

System, New Braunfels Utilities and San Marcos

Public Service Award - This awardrecognizes exceptional leadership andpublic service by officials in the publicpower field. Eligibility: Any publiclyelected or appointed official in the publicpower field whose actions have furtheredthe objectives of public power. Criteria:Nominees 1) must have made a substantialcontribution to public power; 2) must havemade a substantial contribution to theircommunity. Past winners include:

2018 Al Kaufmann, New Braunfels Utilities

2017 Jason Bienski, former Mayor of Bryan

2016 Did not award2015 Paula DiFonzo, New Braunfels

Utilities2014 David McCalla, Lubbock Power &

Light

To submit nominations: Mail nominee’sname, title, organization, address, or systemname and a brief explanation why thisperson or system is being recommended forthe award to:

2019 Annual Meeting AwardsTexas Public Power AssociationPO Box 82768Austin, Texas 78708

Also include the name, title, and organiza-tion of the person submitting nomination.Nomination must be received by April 15,2019. Nominations can be emailed [email protected]. For additional informa-tion contact Debra Scarbo at the TPPAoffices at (512)472-5965, ext. 12.

Page 12: TPPA Board President’s Message Whats Inside · 2019. 3. 4. · we hope our members will answer the call to communicate with their hometown legislators. ... Thanks for your support

February 2019/Page 12

Texas Public Power AssociationPO Box 82768Austin, Texas 78708

Mark your Calendars

TPPAAnnual Meeting

July 29 - 31, 2019

Westin RiverwalkSan Antonio, TX

PRSRT STDU.S. POSTAGE PAID

AUSTIN, TEXASPERMIT NO. 1034

www.tppa.com