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ENCO Utility Services

How Could aBoulder Municipal Utility

Run Its

Electric Distribution System?June 1, 2011

Boulder, Colorado www.encous.com

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ENCO Utility Services

Summary

Public Power—An Overview

Major elements of a Municipal Electric Utility

ENCO Utility Services Background, Services and Clients

ENCO’s Customer Services

Case Study: City of Winter Park, Florida

Overview of Boulder’s Electric Distribution System

Questions?

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Public Power Nationwide

There are more than 2,000 Public Power Systems

Number of ProvidersPublicly Owned Utilities 2,007 61%Investor Owned Utilities 230 7%Cooperatives 882 27%Federal Power Agencies 9 0%Power Marketers 139 4%Total 3,267 100%

Number of CustomersPublicly Owned Utilities 19,130,018 14%Investor Owned Utilities 95,942,545 70%Cooperatives 15,752,374 12%Federal Power Agencies 38,695 0%Power Marketers 5,760,403 4%Total 136,624,035 100%

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Benefits Of A Municipally Owned Electric Utility

•The Citizens decide the Goals, Objectives and Policies of the Utility…Local Control

•The “Profits” from the Business are Invested Back into the Community

•Focus on Customers, not Stockholders

•Local Accountability

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Major Elements Of A Municipal Electric Utility

Power Generation and/or Energy Procurement

Distribution Company (“Wires Business”)

Electric Distribution SystemEngineering and ConstructionOperations and Maintenance

Customer ServicesCall Center SupportBillingEnergy Services

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ENCO’s Background & Experience

Pre 1997… Our Team led the electric distribution business at Southern California Edison.

In 1997 … Edison International formed “Edison Utility Services” to be a provider of complete turnkey Electric distribution services for municipal utilities.

In 2001 … Name changed to ENCO Utility Services with acquisition by Investment Group whose majority owner is the Apollo R.E. Fund IV.

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Strategic Planning for New Electric Utilities

Financial Analysis of New Utility Economics

Complete Setup of New Utility

Transmission System Interconnections

Engineering Design and Construction

Electric System Operations and Maintenance

ENCO Utility Services

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Energy Efficiency Programs

Meter Reading

Billing

Collections / Remittance Processing

Telephone Center Response (7x24)

ENCO Utility Services

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ENCO Utility Services

Major ClientsFlorida…City of Winter Park City purchased Electric Utility from IOU ENCO selected via RFP to operate Distribution System

for the City. City Owned Utility began operations on 12:01 am June

1, 2005

Arizona…Electrical District #3 ENCO has long term contract to design, construct,

operate and maintain and provide all customer services. New community of 25,000 homes plus commercial at

build out First meter installed in January 2002 Currently serving 12,101 meters

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Major Clients

California…City of Moreno ValleyLong Term Contract to Design, Construct, Operate,

Maintain and Provide All Customer Services.30,000 New Homes and 20 Million Sq Ft Commercial

Expected at Build-Out.Currently Serving 5,631 MetersNew 115kv to 12kv Substation on line in Summer

2007.

California…City of IndustryENCO provides all Customer Services to the newly-

formed City of Industry Electric Utility.City of Industry currently serves over 80 Industrial

Customers

ENCO Utility Services

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Major Clients

California…McAllister Ranch Irrigation District

Long term contract to design, construct, operate maintain and provide all customer services.

8,000 new homes and commercial at full build out.

ENCO Utility Services

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Call Center

Billing Department

Remittance

Processing

Credit &

Collections

Hemet Customer Service Center

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•24-hour Complete Customer Service

•National Toll-free Telephone Number

•Call Center Support To Utility’s Customers

•Performance Metrics – High Customer Touch

•Outage Management•Efficient systems for identification of faulty circuits•Call backs to all customers

•Fully Trained Customer Service RepsUtility history, organization, policies and proceduresAll rates (residential, time-of-use, commercial, solar)Invoice analysis, metering, conservation techniquesRebates, program specificationsDispatch to field personnel

Call Center Services

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•Trained Rate Accountants

•Specializing in Bill Master System

•Perform Requested Service OrdersTurn onsTurn offsDeposit reviewAddress changesBilling inquiries

•Process Monthly Billing CycleUpload meter readsIdentify problem readsPrint and stuff invoices

Billing Department

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• Turtle

• Itron

• Twax

• Sensus

Metering Systems

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• Customer Service Handbook keeps personnel up-to-date on utility changes

• Training Classes for New Programs

The Key to Quality is Training

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Customer Information System

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Outage Management System

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Billing System

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Case Study:

Winter Park Florida

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Comparison of Electric Distribution Systems...Boulder to Winter Park

BoulderWinter Park

FloridaSq Miles 26 9Electric Meters 52,800 13,900Meters per Square Mile 2,031 1,544Substations 6 2Distribution Circuits 48 17Local Offices 0 1Load Factor 60% 53%System Peak Load (MW) 270 108

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2005 - Winter Park, FL Citizens decided that they wanted:Improved reliability of electric service

A more aggressive undergrounding of the Electric System

Electric rates that are about the same as they would have been with the former Investor Owned Utility

2011 - the electric rates are slightly lower than they would have been and…Electric reliability has dramatically improved

Undergrounding of the distribution system is well underway

Benefits of A Municipally Owned Electric Utility

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Overview of

Boulder

Electric Distribution System

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General Observations Regarding the Electric Distribution System Serving Boulder

Substations

Circuit getaways

Size of Circuit Conductors

Circuit tie capability

Tree Trimming at power lines

Maintenance - poles/cross arms Overall electric system assessment

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Utility Manager provides a start up team on site before Boulder owns the system

Sets up all the standards, manuals and processes customized for Boulder

Safety ManualConstruction StandardsDesign StandardsOperations and Maintenance ManualAccounting Chart of AccountsRules and Rates

Sets up all the required systems and tailors for Boulder

Outage Management SystemMaintenance Management SystemBudget Reporting SystemElectric Reliability Reporting SystemCustomer Information SystemCall Tracker SystemOnline Identify Verification System – Red Flags Rule ComplianceAudioTel Remittance Processing System and Remote Bank

Deposits

Hires all Personnel

New Electric Distribution Utility Start Up Activities

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If the Citizens of Boulder decide to acquire the electric distribution system, they will decide the policies, goals and priorities for the new city owned utility.

The options are many: Improved reliability of electric service

A more aggressive undergrounding of the Electric System

Open a local office(s) to be more accessible to the customers

Broaden the portfolio of demand side management programs

Broaden the portfolio of energy conservation programs

Expand the use of renewable energy

Say no to coal fired generation

Benefits of A Municipally Owned Electric Utility

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Questions?