um one second guys i'm streaming on
youtube all right uh welcome to the
march 12th
uh board of control meeting i'd like to
call a meeting to order uh with a roll
call bill harvey here
lorianne fibel here and ben kessler here
as well
and joining us today we have um council
member richard richard sharp service
committee chair
and also our council council with an s
um dylan borchers from bricker and
eckler
dylan thank you for joining us is andy
on good morning
andy is not on and actually
what's that andy called me earlier and
asked if i thought he should be on i
said it probably wouldn't hurt him but
that's
your call obviously not mine yeah i'll
text him that uh the link is
i'll text him the link to join
one more i figured you're gonna make him
do all the follow-up so he ought to hear
what you're saying
probably i think it'll maybe go through
dylan but uh
you're right though it's good for him to
know what's going on um
let me send that
okay sorry guys for the delay
all right so um dylan uh thanks for
joining us would you like to just talk
us through the bids that were received
and
any analysis that you've done
yes good morning everybody this is dylan
borchers
with bricker and echoler so just to
quickly summarize the the status of
the the rfp process and and what the
city has
received in response the city has
received
two responses to the request for
proposal
first from aep energy the second is from
nopec
which is the northeast ohio public
energy council
beginning with the aep energy
proposal aep energy
at a high level proposes two
two different products the first is
a 12-year product the second is a
13-year product
to talk about the first product
initially
it split into two terms there's an
initial
three year supply term that is a
full requirements product and
it utilizes renewable energy credits or
wrecks
in order to meet the green energy
criteria
those wrecks would be green e-certified
which was
a standard identified in the rfp
that price which is the full requirement
price is 5.314
cents per kwh
just as point of comparison the current
aep price to compare which is the
standard service offer which is also a
full
requirement product
is currently at 4.88
per kilowatt hour aep however notes
that they will be adjusting their sso
and that they expect it to be between
5.2 and 5.6 cents
per kwh from
june 2021 which is when we would intend
to
uh begin the the supply for the
aggregation
uh to may 2022 and so based off that
estimate aep indicates that there will
be
a potential savings of one to three
percent
um off of the sso for that initial
three-year supply term
i'm sorry dylan when do we find out
about aep's
newer rate yeah we we expect
um to to know within the next month but
that that will actually be a a specific
question that i recommend we
we talked to aep about um
because i i think that point of
comparison
uh if since it will be definite in the
near future
we want to know that as soon as possible
um
so then that first product also has
the the longer term uh supply which
would be for
for a nine year uh period uh aep
is able to offer the energy only
price and that's because uh
some things are just not known at that
far out
primarily we don't know the cost of
capacity within the pjm market
but they indicate those would just be
passed through without any additional
markup and that
that that is how this
would ordinarily operate but we can only
know the energy
right now and they have provided an
energy price
of 4.386
cents per kwh
just by point of comparison
uh just to provide some contacts
um again we can't know that far out what
the capacity and ancillary costs will be
which
will be charged to any product that the
city
goes with whether it's with their
supplier or
if people just shop at the sso there
will be capacity and ancillary
charges roughly those can add
uh up to you know 25 to the energy cost
um so just very
very rough math um
the energy only that they're providing
based off of
based on
that this nine-year term plus
a rough estimate of capacity in
ancillary which would be about 25
percent of that
um you're looking at a full requirements
product
probably just under six cents
um during that longer term period
i can't emphasize enough that this is
just incredibly rough
um projection but it's just to provide
some context some idea of
what a forward pro a full requirements
product
looks like versus the the energy only
product
so what what sorry did that make sense
yeah did you give a number on the
total estimate i know it's estimated
yeah i'd be hesitant to even call it an
estimate but
um it traditionally uh capacity
and ancillary uh cost
um will will add
20 to 25 to that energy cost
so if we if we know what the energy only
is
you know you're looking at an extra
penny penny and a half
based historically uh on on what
you know the additional charges have
been
which would increase this to you know
probably
uh to you know between five and a half
to
six cents roughly for four requirements
you know with that said huh doing
what those ancillary charges that's not
the distribution
and transmission fees right
yeah it's not the it's not the full
transmission
um it's related more to
the the regional uh transmission
organization
uh costs um the largest one being
capacity
there's also as you can see in the
footnote the four requirements
would include uh rps which is renewable
portfolio standard compliance and taxes
uh you know those are adjusted uh
with any product and pass through and
you know one of the things we could ask
for aap is more
history around their energy
um cost uh with a breakdown of
of what the additional capacity and
ancillary costs have been
historically realizing that's just a
historic
comparison we don't know what the future
will hold
dylan this is bill harvey um
the apples to apples puco
chart i'm sure you're familiar with the
it i assume
does not include these ancillary charges
any more than
the adp bid does or or am i incorrect
there
yeah so the price to compare the
standard which is a standard service
offer is a full requirements
contract so that is everything and right
now that's
4.8 cents um and so the
the fairest comparison right now is is
with what
adp is providing in their initial supply
term for that first three years
because they know what the capacity
charges will be for example
um the
uh current price to compare
as you saw on the apple's apples
chart is 4.8 cents
um it has been all the way up to six
cents
um in the past this is a
a low price to compare um so just be
aware that the price they compare
has gone up in the past uh in fact as
aep indicates in their current
um proposal that they anticipate uh
here in the next month or so they're
going to increase the price
to 5.2 to 5.6 cents per kwh
beginning in june 2021. um
so again just since we're talking about
some
historic comparisons um
the 4.8 cents that you're looking at on
the price to compare is a
is a very low price to compare you have
like
historic data on that do you have like a
trailing five or ten
i i can i can pull that together and i
i think also um you know we will
we can talk about this more in some of
our um
pricing strategy discussion but
having aep provide some of that too
will be helpful
okay
and then there's a sorry uh go i mean i
don't have any other questions if you're
if you want to continue presenting
yeah so so that that in a nutshell is is
the first product
um the the second product they offer is
a variation on that it would have an
initial supply term of
two years with a
full requirement fixed product of 5.37
and then a longer term um
uh renewable generation supply product
with the energy only price of 4.239
cents that would be
for an 11 year period uh
so the one of the differences primary
differences is
the the second product that they're
offering would be a longer term product
there is some price difference
it's not a huge price difference though
do you have any idea what uh is aep
firming up or have they firmed up
pricing with their columbus
aggregation product
uh i i'm not aware that they have
so i i believe um pricing is
still being worked out is columbus
obligated now or they're still they
still have
they're still analyzing based upon
pricing
um i i frankly don't know what their
obligations are at this point what
they've signed to or committed to
that's fine i know it's nice yeah it's
not a super relevant question i'm just
kind of curious
um yeah and you know i i would
expect that similar discussions around
um maintaining competitiveness over a
long term
versus the price to compare um
are are going on i think it's a it's
a fundamental question to
to to this kind of long-term supply
product
and when we have a pricing strategy
discussion
um there are a few recommendations that
i have
to go back to aep energy with
to try to hone in on some opportunities
to
tighten the competitiveness to help
ensure that
customers are getting the best price
possible throughout the
entire term
all right what's the is that
is that the synopsis for ap
yeah though they're just a couple of of
smaller things
um but worth pointing out i i think the
discussion around the price and next
steps around the price will be the
the primary uh focus but
a couple of other things they
do indicate that customers can leave at
any time
which without any termination fee which
was something
important that the council identified
that's not always the case with
suppliers so that that's a
benefit the other thing is they do
indicate that
net metering customers will
or that customers will be able to
continue that meter
that's important because right now
metering is really associated with
the standard service offer uh
and the aep tariffs and if you go to a
supplier
as somebody with rooftop solar
it there's no guarantee that supplier
will have a net metering tariff and so
aep energy is saying that
customers with rooftop solar can
participate in this program
with the city but also still net meter
with their rooftop
system so that's that that's an
important
um acknowledgement just because it's my
understanding bexley as as a bit of
rooftop solar
yeah hold on one second we lost
one of our members again i'm not sure if
there's like a zoom tech issue going on
uh
let me uh
before you continue let me just make
that quick phone call
all right never mind
okay it kicked me off my life if i went
that i'm not sure sorry guys yeah that's
cool
okay so um dylan was just explaining
that net metering is allowed in this
which is important to
residents who have rooftop solar because
it allows them to
purchase this renewable product plus
have their solar panels without you know
they don't have to be locked into the
standard av
product well that's kind of important to
me
well it's not all about you but yeah
dylan did i say that correctly
yes um and and if we go down
um the road further with with aap energy
there will be some follow-up questions
around the
the net metering compensation rate but
um in terms of a high level
um you know opportunity
and an acknowledgement for for those net
metering customers that
is included and is that all i missed
other than the fact that the customers
can leave at any time
that's it okay okay good okay sorry guys
all right dylan i'm sorry go ahead no
um dylan i i when i
quickly read through it it looked to me
like
aep was not allowing customers to leave
at any time you're saying i read it
incorrectly
i uh they we
residents could leave at any time
yes uh let me get to that that's okay as
long as you're sure that's correct
phil i think there's language in there
about the note the three year opt
that's that has to do with the
communication
that there's a requirement to
communicate it routinely but the
right i saw that separate question is
whether or not anyone could just pick up
the phone at any time and uh
and cancel okay
so i think that's important yeah
it's also consistent with what he told
us last summer when they were talking to
us about it
yeah i'll shift over to the no pack
response
um just just briefly um
so the the no pack response is
in in many ways an invitation
uh for membership so so it really poses
a a question of of does
bexley have interest in becoming a
notepad member
and i'll let the materials
speak for themselves in terms of
what that all entails
[Music]
you know so there's not a long-term
in-state renewable energy
product being proposed um i i do think
it's helpful
uh for for
the city to kind of get a sense of what
the aggregation platform can mean for a
community whether it's part of notepack
or
even just independently
because no pack is is the most well
established
aggregation program in the state
and you can see through their materials
some of the other products and offerings
that they have
which again i i think can be helpful as
you're thinking
over the long term in terms of what what
this aggregation platform can enable
for the citizens of the city of bexley
but in terms of the um immediate
request for proposal that the city put
out
asking for um you know a
long-term in-state renewable energy
product uh no pack
is not offering that at this time okay
so it's not exact is it fair to say it's
not responsive to the request
i think it's an invitation to membership
as as part of notepack
and so that that i think is just
fundamentally a different
inquiry for the for the city
okay
um any questions on that from uh
the board or our attendees
dylan you had mentioned um a uh
some some options that we might have in
negotiation
is that something yeah to talk about now
would you when is that logical
well i i think for the most part my
recommendation would be
to do that in the executive session just
because
it it will relate to our negotiation
strategy
with aep energy uh potentially um
so at a high level though i can share
just for for the public
um portion um some of the things i
i or concepts i'll want to talk to
all of you in executive session about
so so at a high level uh first
for that initial supply period
which right now adp is providing a
three-year
fixed product i think we should also ask
for pricing for just
one year at a time within that
initial supply period so you know for
the next few years
and do pricing annually that will let us
stay
very close to the market and help
really ensure that that we're not
fixing a price that uh
you know in year three uh there there's
uh a negative or a an increase from the
from the ptc or we're missing out on a
decreased
market sopak for example does it does a
year to year
pricing with adp energy
so i think i think that's one of the
things i want to talk to this group
about
in terms of requesting over to adp
the other thing is to
request aep to provide some information
about
whether they can offer an opt-in product
as
a companion product to
um the the the renewable product that
that we've been talking about
and that opt-in product would would
effectively be
the sso so then if there are customers
that that want to
not be part of a renewable product which
which can have a price premium
that they have an option to still be
part of the aggregation but
to opt in to a different supply product
that that again provides an option
within the aggregation and of course
customers can
can leave the aggregation so
your residents will have a number of
options throughout this
contract term and then finally
and we will get into more details about
this in
uh executive session but
the longer term portion of the product
involves in-state renewable energy
projects and again
aep has provided a fixed energy price
aep is adp
energy is currently entering into
power purchase agreements with renewable
energy products
or projects from all across the state
wind and solar
they will continue to do that over the
nine-year
term of our
supply contract presumably
renewable energy projects in
five years will have a lower cost
and so there may be opportunities to
lower that energy cost as newer
renewable energy projects are contracted
by aep
with a lower cost in those outer years
of the term
and so um i think there's an opportunity
to be creative and collaborative
with aep energy on that given the
long-term nature
of this supply contract so at a high
level that's
those are some of the things i'd like to
talk to this group about and potentially
uh respond with a set of follow-up
questions and requests to aep energy
okay well in in uh in order to
facilitate that um can i hear
a motion to adjourn into executive
session
subject to ohio revised code 121.22
wait for it uh
17 g1
which no no g2 sorry uh
which would for the purpose of
considering the purchase
of a property for public purposes in
this instance of service
um
i believe that's the correct section
anyone think that that is there a
different more operative section
that's good to me bill and uh
richard take care oh he's gone uh
bill uh sorry so so do i hear a motion
was that a moment
second second second uh any discussion
okay roll call uh laurie anne fibel
uh here yes sorry now sorry sorry
bill harvey is that anyone else over
here
and ben kessler yes so uh
let me and we're inviting andy bashore
to join us
yes we are and so this will stop the
youtube stream
and dylan obviously sorry andy bay show
service director and dylan are invited
to join us let's go stop the youtube
stream if anyone is
watching through youtube um we will
uh be here on the webinar and we'll open
back access to the open
webinar when we adjourn so i don't
believe that we'll be conducting further
business after the executive session but
i can't
absolutely guarantee that so we will
also keep