September 2015/Page 1

Whats Inside:

September 2015

Hometown Connections Report

Demand Response Programs 3

Regulatory Update

Nelson Reappointed 4

Niermann Appointed to TCEQ 4

Washington Report

EPA Issues Final Carbon Plan 7

TPPA Legal Seminar

Agenda 10

Registration Form 11

TPPA Calendar

TPPA Legal SeminarOctober 29-30, 2015Lone Star Court at DomainAustin, TX

TPPA M&CS ConferenceMarch 22-24, 2016Westin at the DomainAustin, TX

TPPA Annual MeetingJuly 25-27, 2016Four SeasonsAustin, TX

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

CPS Energy Received Record

Applications for Solar ProgramIn the days following its recent an-

nouncement of a new, 10-megawatt rooftopsolar program for residential and commercialcustomers, CPS Energy received nearly 2,000applications.

CPS Energy announced the pilot pro-gram, called SolarHost, in early Septemberwith project developer PowerFin. Theprogram allows customers to install solarphotovoltaic panels on their homes orbusinesses for no cost in exchange for credits

of 3 cents per-kilowatt-hour on their electric-ity bills. PowerFin pays for all installation andmaintenance costs while electricity flows toCPS Energy customers.

The pilot program is the second an-nounced this year and follows the announce-ment of CPS Energy’s first community solarproject. The utility’s announcement of itscommunity solar pilot program came daysafter the White House released a newinitiative to increase access to affordablesolar power through community solarprojects. Together, CPS Energy’s pilot solarprograms will generate more than 11 MW of

solar electricity.Both are designed to give access to

customers who might otherwise be unableto afford or host solar. Applications for theno-cost rooftop program show CPS Energythat customers are interested in solar,whether they’re able to afford it or not,said spokesperson Christine Patmon.

“Thus far, we have the same amountof folks interested in the solar hosting inless than a week as we have who have DG

systems on their roof” over the course ofseven years, Patmon said. “This tells usthere definitely was a desire for morechoices for our customers and that therewere customers who could not afford solarand want to participate.”

CPS Energy hopes to receive about5,000 applications for the program, Patmonsaid, but applications do not translatedirectly to participation or capacity. Eachapplication will be individually evaluatedand whether a customer is eligible and howmuch solar capacity they can host willdepend on individual factors, Patmon said.

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

BOARD OF DIRECTORS

PresidentLarry Weis (Austin Energy)

President-ElectBob Kahn (TMPA)

Vice-PresidentSharon Hayes (Weatherford)

Secretary/TreasurerKean Register (Bryan)

Past PresidentPhil Williams (Denton)

Ron Bowman (Boerne), Jim Briggs (Georgetown), Gary Brown(WTMPA), John Bruciak (Brownsville PUB), Paula DiFonzo(New Braunfels Utilities), Doug Faseler (Seguin), Jeff Janke(Garland), Tracy McCuan (Kerrville PUB), David McCalla(Lubbock), Kent Myers (Fredericksburg), Shawn Raborn (LaGrange), Darren Schauer (GVEC), Carolyn Shellman (CPSEnergy), Gary Singleton (GEUS) and Phil Wilson (LCRA).

STAFFExecutive DirectorMark Zion

Communications ManagerDebra L. Scarbo

Regulatory ManagerWendell Bell

Office ManagerJosie Caballero

MEMBERS

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

September 2015/Page 2

For my column this month, I’d like to reprint a recent letter sent to folks at publicpower systems all over the country. It came from Paula DiFonzo, CEO of New BraunfelsUtilities and immediate Past Chair of the national APPA Board of Directors. It is impor-tant. Please consider making a contribution to commemorate APPA’s 75th Anniversary andto help save lives with a gift of electricity. Best regards, Mark Zion

LETTER FROM PAULA DIFONZO

Dear Public Power Colleagues:

This year, the American Public Power Association is celebrating its 75th anniversaryand we saw this as an opportunity to give to a worthy charitable cause relevant to our coremission. After much exploring, we identified We Care Solar, a global project that powers theless privileged through “solar suitcases.”

Solar suitcases have saved many lives and prevented health complications. The cost ofa solar suitcase is about $1,500. The cost of deploying the suitcase — including shippingand training people in how to use it — is about $2,500. With the budget we have, APPA canfund the deployment of two solar suitcases. And several APPA staff have generously giventheir personal contributions as well. I urge YOU to give as you can to supplement publicpower’s contribution.

We Care Solar is a nonprofit organization founded by an OB-GYN and energy educator,to save the lives of mothers and newborns in developing countries. Maternal mortalityaccounts for nearly 300,000 deaths a year in developing countries. Many deaths occurbecause sporadic electricity impairs the operation of surgical wards, delivery wards,essential hospital equipment and hospital communications. So We Care Solar designed acompact solar electric system that fits in a suitcase. The portable solar suitcase includessolar panels, a battery, charge controller, outlets, and LED lights. It can also be expanded topower larger medical equipment. We Care Solar provides training, monitoring and onsiteservicing of the solar suitcase through staff and local field partners. Suitcases are deployedin 24 countries including Haiti, Liberia, Uganda, Sierra Leone, and Malawi. We Care Solarplans to expand its programs into Ethiopia, Tanzania, and the Philippines.

APPA encourages donations of any amount from individuals and organizations(subject to applicable local laws) in the public power community. Please send donationsdirectly to We Care Solar and let APPA know (email info@publicpower.org) so we can trackand nationally recognize public power’s collective contribution. Donations to We Care Solarare tax-deductible. Donate online via credit card or PayPal at http://wecaresolar.org/donate/OR mail your check, payable to “WE CARE Solar” to: WE CARE Solar P.O. Box 5765Berkeley, CA 94705. Visit www.PublicPower.org/GiveSolar to learn more.

Thank you. Best Wishes, Paula DiFonzoImmediate Past Board Chair, APPACEO, New Braunfels Utilities, Texas

September 2015/Page 3

CALENDAR

Delivering Innovative Demand Response Programs

continued on pg. 6

LAKEWOOD, CO and BROOKLYN,NY –Hometown Connections, the utilityservices subsidiary of the American PublicPower Association (APPA), andEnergyHub, the leading connected devicesolution for electric utilities, announceda partnership to help public powerorganizations deploy innovative demandresponse and energy efficiency programsto homeowners. This new partnership willaddress the needs of the over 2,000 largeand small public power utilities across theUnited States.

Through Hometown Connections,APPA members gain access to discountpricing on systems and services from theindustry’s leading vendors, as well asconsulting support in the areas of organi-zation assessment, strategic planning,market research, and workforce solutions.

Specifically designed to meet theneeds of electric utilities, EnergyHubprovides both Bring Your Own Thermo-

stat™ (BYOT) and utility-installed demandresponse services. Utilities use EnergyHub’sMercury software platform to deploy theirdemand response programs. EnergyHub’sBYOT service allows customers to purchasea wide variety of compatible thermostats andenroll their thermostats in the utility’sdemand response program. EnergyHub’sutility-installed demand response serviceallows utilities to deploy a utility-brandedthermostat and provide customers withutility-branded web and mobile apps thatimprove customer satisfaction and increaseprogram enrollment. EnergyHub deploys itsunique services in partnership with indi-vidual utilities or with public power jointaction agencies/state associations on agroup discount basis.

“Hometown Connections has long beeninterested in helping APPA members launcheffective demand response programs thatfactor in the budget and staff time of publicpower systems,” said Tim Blodgett, Presi-

dent and CEO. “By focusing its applicationon a network of WiFi thermostats accessibleby web portal, smart phone and tablet,EnergyHub offers demand response solu-tions that are easy for utilities to deploy andoperate, and easy for customers to use toreduce their energy costs. We are verypleased to help APPA members learn moreabout the innovative demand responseservices from EnergyHub.”

“EnergyHub is excited to partner withHometown Connections to bring our demandresponse capabilities to APPA members,”said Seth Frader-Thompson, President.“APPA members can use EnergyHub’sdemand response services to seamlesslylaunch and grow DR programs that both meetthe utilities’ load control needs and provide afantastic user experience to their customers.”

About Hometown Connections Interna-tional, LLC

Hometown Connections is the utility

September 2015/Page 4

continued on pg. 5

Nelson ReappointedGovernor Greg Abbott has reap-

pointed Donna Nelson to the three-member Public Utility Commission for aterm set to expire September 1, 2021.Nelson was initially appointed tocommission in August, 2008 by GovernorRick Perry and named chairman on July26, 2011. The presiding officer serves inthat capacity at the pleasure of thegovernor.

Niermann Appointed to

TCEQ by Gov. AbbottGovernor Abbott has appointed Jon

Niermann of Austin to the TexasCommission on Environmental Qualityfor a term to expire August 31, 2021.

Niermann was chief of the Environ-mental Protection Division in the TexasAttorney General’s Office, and played akey role in crafting some of the state’ssuits against the federal EnvironmentalProtection Agency during the timeAbbott was attorney general. Previously,he was an attorney at Baker Botts, L.L.P.Niermann received a Bachelor of Artsfrom the University of California, SantaBarbara, and a Master of BusinessAdministration and a Juris Doctor fromthe University of Oregon.

ERCOT Announces New

ExecutivesThe Electric Reliability Council of

Texas (ERCOT) has selected new leaders

for two key areas associated with grid andmarket operations.

Kenan Ögelman, director of Energy MarketPolicy for CPS Energy, will be Vice President ofCommercial Operations, and Woody Rickerson,currently ERCOT’s Director of Grid Coordination,will be Vice President of Grid Planning andOperations.

Ögelman has been involved in the ERCOTmarket since it began. He has represented theMunicipal Segment on several ERCOT commit-tees and working groups and has chairedERCOT’s Technical Advisory Committee.Previously, he served as a senior economist forthe Texas Office of Public Utility Counsel, whichrepresents residential electric consumers inTexas, and has taught economics at the Univer-sity of Texas at Arlington and St. EdwardsUniversity. He is currently president of the GulfCoast Power Association.

Rickerson, an ERCOT employee since 2000,has been involved in developing the tools usedto operate the ERCOT grid since initial develop-ment of the ERCOT zonal market system in 2000,with a number of increasingly responsible rolesprior to his most recentposition. A licensedprofessional engineer, healso has worked forutilities in Texas, Arizonaand New Mexico.

New York ISOannounced on September16th that ERCOT ChiefOperating Officer BradJones will become itsChief Executive Officer inOctober. ERCOT hasnamed Chief of Staff

Jeyant Tamby to serve as Interim ChiefOperating Officer until his successor isidentified.

PUC Identifies Issues in

EFH BankruptcyPUC Commissioner Ken Anderson has

outlined a number of issues that should beaddressed in an anticipated applicationrelated to the bankruptcy of Energy FutureHoldings Corp. (EFH). A revised reorgani-zation plan submitted to the U.S Bank-ruptcy Court in Delaware on August 10th

includes a proposal to sell EFH’s stake inOncor, a cash-generating regulatedtransmission and distribution utility, toinvestors including Hunt Consolidated,Inc. In order to complete the deal, valuedbetween $18 and $19 billion, Hunt wouldneed PUC approval. EFH, the former TXUCorp., filed for Chapter 11 protection inApril, 2014, citing a decline in Texas’wholesale power market and debts taken

September 2015/Page 5

Regulatory Updatecontinued from pg. 4

on in the $45 billion leveraged buyout led byprivate equity firms KKR & Co. and TPG in2007.

In a memo to his fellow commissioners,Anderson noted that state law requires theCommission to either to approve or reject thistype of application within 180 days of filing.Otherwise, the filing is deemed approved asfiled. Anderson stated that the practicaleffect of these legal provisions is to force theCommission to reject an application if theapplicants fail to meet their burden of proof.Consequently, it is particularly important thatthe applicants make a complete applicationthat fully addresses any issues with directand specific evidence.

Anderson identified two over-archingissues that will be central to the proceeding.First, is the continuing existence of asubstantial amount of debt resulting from the2007 TXU leveraged buyout. Second is theproposal to restructure Oncor so as toqualify EFH as a real estate investment trust

(REIT). In this arrangement, one entity willown most of Oncor’s fixed assets (theAssetCo) and a separate entity (theOperatingCo) will lease and operate thoseassets operating under the name Oncor. ThePUC will need to evaluate the characteristicsof each entity. For example, one aspect of theanalysis will be whether AssetCo andOperatingCo will both need to obtain acertificate of convenience and necessity(CCN) so that they will both be bound byPURA’s obligations on certificate holders.Anderson outlined a number of detailedquestions that he expected to be addressed“upfront” in the application. Hunt indicatedthat it planned to file in late September.

In addition to the PUC proceeding, thebankruptcy plan faces other hurdlesincluding approvals from the IRS andopposition from certain creditors.

TxDOT Utility WorkshopThe Texas Department of Transporta-

tion (TxDOT) hosted a utility industryworkshop on September 14th dealing withutility allowances in highway rights of way.This event was a direct result of the August

11th hearing of the House TransportationCommittee dealing with highway projectdelays associated with utility relocations.The committee asked TxDOT to consultwith utility interests and report back onideas for improvements.

Participants included a number ofutility related associations including TPPA,the Association of Electric Companies ofTexas (AECT), Texas Electric Cooperatives(TEC), Texas Pipeline Association, TexasCable Association, Texas Municipal League(TML), and Texas Association of Counties,as well as representatives of many of thelarger utility providers and larger cities.Austin Energy and CPS Energy hadrepresentatives in attendance. Governmen-tal entities participating included the Officeof the Governor, Railroad Commission, andPublic Utility Commission.

The workshop focused on developingbetter procedures for early coordinationand communication on transportationprojects involving utility relocations.Suggestions include regular meetings atpredetermined times (monthly or quarterlydepending on the size of the district) andproviding training to project stakeholders.

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September 2015/Page 6

Hometown Connections Reportcontinued from pg. 3 TPPA Website

Visit the TPPAWebsite at

www.tppa.com

services subsidiary of the American PublicPower Association, offering public powerutilities guidance and access to qualityproducts/services from a trusted entity withpublic power’s best interests in mind.Hometown Connections personnel provideconsulting support in the areas of organiza-tion assessment, strategic planning,governance development, and staffing.Hometown Connections is a resource toAPPA members large and small, providingdiscounted pricing on technology, services,and other solutions from industry-leadingcompanies. The products and servicesoffered through Hometown Connectionsinclude the full range of advanced gridsolutions, as well as financial and organiza-tional management tools and consulting. Formore information,visit www.hometownconnections.com.

About EnergyHubEnergyHub is the connected device

solution for utilities. EnergyHub’s MercuryDRMS allows utilities to partner with their

customers and deliver more powerfuldemand response using connecteddevices, while our Bring Your OwnThermostat™ service makes hundreds ofthousands of existing connected homesavailable to utilities for demand responsewithout a single truck roll. EnergyHub isan independent subsidiary of Alarm.com,the leading platform solution for thesmart home.

For more information,visit www.energyhub.com. FollowEnergyHub on Twitter @EnergyHub. Orcontact Hometown Connections bycalling Bill Smart at 303-940-7331 orbsmart@hometownconnections.com.

September 2015/Page 7

A little more than a year after it firstproposed its plan to reduce carbon dioxideemissions from existing power plants, theU.S. Environmental Protection Agency inearly August unveiled the final version ofwhat it refers to as the Clean Power Plan.

President Obama used a speech at theWhite House in August to roll out the finalrule on the Clean Power Plan. The EPAinitially proposed its rule to regulate CO2emissions from existing sources underSection 111(d) of the Clean Air Act in June2014.

One of the key differences between theClean Power Plan as initially proposed andthe final rule is that the final rule callsfor CO2 emissions from existing powerplants to be 32 percent below 2005 levelswhen the Clean Power Plan is fully in placein 2030.

When EPA first unveiled the CleanPower Plan, the proposal required states tocut CO2 emissions from existing powerplants from 2005 levels by 30 percent by

2030.The final rule allows for additional time

for compliance with the rule’s interimdeadline. The final rule also establishes an8-year interim compliance period thatbegins in 2022 with a glide path for meetinginterim CO2 emission performance ratesseparated into three steps: 2022-2024, 2025-2027, and 2028-2029.

When it released the proposed CleanPower Plan in 2014, the EPA said a mix offour “building blocks” make up the bestsystem of CO2 emission reductions underthe Clean Air Act, one of which related toenergy efficiency.

But the EPA said that under the finalrule, there will be three building blocks, notfour, with the one related to efficiencygoing by the wayside.

The revised “best system of emissionsreduction” (BSER) definition and buildingblock computations result in substantiallynarrowing the disparity between stategoals, which means that some states

benefitted and some got tougher targets.The agency said that the BSER focuses

on supply side measures that reduce emis-sions from power plants, and does not rely ondemand side energy efficiency as a buildingblock. “EPA nonetheless anticipates that, dueto its low costs and potential in every state,”demand side energy efficiency will be asignificant component of state plans underthe Clean Power Plan.

Another key change from the proposedrule to the final rule relates to the treatment ofnuclear generating units under constructionand existing renewable energy sources.

The EPA said that the final BSER analysisdoes not include existing or under construc-tion nuclear power or existing utility scalerenewable energy generation as part ofbuilding block 3.

The analysis does include more use ofnew renewable energy based on up to-dateinformation clearly demonstrating the lower

EPA Issues Final Plan to Reduce CO2 Emmission for Existing Plants

continued on pg. 8

September 2015/Page 8

Mark your Calendars

TPPALegal Seminar

October 29-30, 2015

Lone Star Court

Austin, TX

continued on pg. 9

cost and greater availability of clean genera-tion than was evident at proposal, the agencyadded. “It takes into account recent reduc-tions in the cost of clean energy technology,as well as projections of continuing costreductions.”

Generation from under constructionnuclear facilities and nuclear plant upratescan still be incorporated into state plans andcount towards compliance, the EPA said. “Infact, nuclear power competes well under amass based plan, as increased nucleargeneration can mean that fossil fuel units areoperating less and emitting fewer tons ofCO2,” it said.

In its initial reaction to the final rule, theAmerican Public Power Association on saidthat it “appears at first blush that EPA hasmade substantial improvements over theproposed rule.” At the same time, APPA saidin an a news release that it is “concernedabout unrealistic targets set for some statesthat will impose substantial additional costs

Washington Reportcontinued from pg. 7

on consumers.”The final rule “incorporates a more

rational approach to setting a uniformnational standard for emission rates forcoal and natural gas plants,” APPA said.“Other positive changes in the final ruleinclude — an extended interim deadline,more time for states to develop compli-ance plans, fairer treatment of renewablesand nuclear generating units underconstruction, and the inclusion of areliability safety valve. The addition of aprogram for renewable energy creditsand guidance for interstate trading willgive utilities more flexibility. Compliancetargets are now more achievable for somestates, including Arizona, Florida, SouthCarolina, Georgia and Tennessee.”

However, APPA said that the finalrule “has substantially raised CO2reduction targets for other states

September 2015/Page 9

Mark your Calendars

TPPAMarketing & Customer

Service Conference

March 22-24, 2016

Westin at the DomainAustin, TX

CPS Energycontinued from pg. 8

(including Illinois, Kentucky, Nebraska, WestVirginia, and Wisconsin), making theircompliance burdens more difficult andexpensive, and raising the possibility ofsignificant rate increases for consumers.”

“While there are also adjustments to thebuilding block assumptions, calculations andcompliance options that offer a more realisticapproach to CO2 emission reductions, many ofthe fundamental problems with the EPA’sunprecedented and sweeping interpretation ofthe Best System of Emission Reduction regimein the proposed rule persist in the final rule,”the public power association said.

A key area of focus for APPA as itcontinues to review the final rule is in theinterstate trading portion of the rule, which is akey component of the overall workability ofthe final rule.

While APPA sees several positiveelements to the interstate trading approachadopted by the EPA in the final rule, the

association wants to make sure that therelated trading mechanisms are not problem-atic for members.

APPA is also taking a closer look athow calculations are made under buildingblock three and related potential costconcerns.

September 2015/Page 10

TPPA LEGAL SEMINAR

October 29-30, 2015 Lone Star Court at the Domain (Austin, TX)

Thursday, October 29, 2015

1:30 p.m. – 1:45 p.m. Welcome Carolyn Shellman, CPS Energy

1:45 p.m. – 2:30 p.m. Legislative Update Mark Zion, TPPA

2:30 p.m. – 3:15 p.m. Small Cell Wireless Technology: Legal and Practical Issues for Utilities

Gabriel Garcia, CPS Energy

3:15 p.m. – 3:30 p.m. Break

3:30 p.m. – 4:15 p.m. Federal Update Michael Nolan, MJN Consulting

4:15 p.m. – 5:00 p.m. Panel Discussion: Federal EPA Rules Tom Oney, LCRA, Carolyn Shellman, CPS Energy and

Michael Nolan, MJN Consulting (moderating)

5:00 p.m. – 6:00 p.m. Reception

Friday, October 30, 2015

8:00 a.m.- 8:30 a.m. Continental Breakfast

8:30 a.m. – 9:30 a.m. Distributed Generation – Opportunities and Challenges Faced by Public Power Lambeth Townsend, Lloyd Gosselink Rochelle & Townsend

9:30 a.m. – 9:45 a.m. Break

9:45 a.m. – 10:30 a.m. Pole Attachments Andy Perny, Austin Energy

10:30 a.m. – 11:30 a.m. Transmission Routing CCN Proceedings at the PUC Roger Wilson, Dykema Cox Smith 11:30 a.m. – Noon Open Records/Open Meetings

Stuart Reilly, Austin Energy

Noon Closing

September 2015/Page 11

2015 TPPA LEGAL SEMINAR Lone Star Court (Austin,TX)

October 29-30, 2015

Registration Form

You may use this form to register everyone attending from your system (including guests who may accompany you to the reception). Copy this form as necessary. The registration fee is:

TPPA Legal Seminar $250

Name & Title Name of Guest Name & Title Name of Guest Utility/Organization Street Address/P.O. Box City/State/Zip Phone (include area code) Hotel reservations should be made directly with the Lone Star Court by calling (866)842-0100 and asking for the TPPA rate when registering. Room rates are single/double $159 if you register before October 2, 2015. To help us with planning, please register for the TPPA Legal Seminar by October 2, 2015 and indicate the events you plan on attending during the meeting: Thursday, October 29, 2015

_______ Legal Seminar (1:00 – 5:00 p.m.)

Reception (5:00 p.m. – 6:00 p.m.) Friday, October 30, 2015

_______ Legal Seminar (8:30 a.m. – Noon)

________ Check Enclosed ________ Please Bill Please provide your Texas State Bar number for CLE credit hours: _______________________ Make check(s) payable to TPPA and mail to the address below: TPPA Legal Seminar 701 Brazos, Suite 1005 For TPPA use only: Austin, Texas 78701 Date received _______ Date of Check _______ Check number ______ Check Amount ______ Or FAX registration form to (512) 472-5967. No. registered _______ Info. Entered _______

September 2015/Page 12

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

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October 29-30, 2015

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