1 ENCO Utility Services How Could a Boulder Municipal Utility Run Its Electric Distribution System? June 1, 2011 Boulder, Colorado

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3 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?

4 Public Power Nationwide There are more than 2,000 Public Power Systems

5 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

6 Major Elements Of A Municipal Electric Utility  Power Generation and/or Energy Procurement  Distribution Company (“Wires Business”) Electric Distribution System Engineering and Construction Operations and Maintenance Customer Services Call Center Support Billing Energy Services

7 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.

8  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

9  Energy Efficiency Programs  Meter Reading  Billing  Collections / Remittance Processing  Telephone Center Response (7x24) ENCO Utility Services

10 ENCO Utility Services Major Clients Florida…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

11 Major Clients California…City of Moreno Valley  Long 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 Meters  New 115kv to 12kv Substation on line in Summer California…City of Industry  ENCO 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

12 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

13 Call Center Billing Department Remittance Processing Credit & Collections Hemet Customer Service Center

14 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 Reps Utility history, organization, policies and procedures All rates (residential, time-of-use, commercial, solar) Invoice analysis, metering, conservation techniques Rebates, program specifications Dispatch to field personnel Call Center Services

15 Trained Rate Accountants Specializing in Bill Master System Perform Requested Service Orders Turn ons Turn offs Deposit review Address changes Billing inquiries Process Monthly Billing Cycle Upload meter reads Identify problem reads Print and stuff invoices Billing Department

16 Turtle Itron Twax Sensus Metering Systems

17 Customer Service Handbook keeps personnel up-to-date on utility changes Training Classes for New Programs The Key to Quality is Training

18 Customer Information System

19 Outage Management System

20 Billing System

21 Case Study: Winter Park Florida

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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 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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31 Overview of Boulder Electric Distribution System

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35 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

36 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 Manual Construction Standards Design Standards Operations and Maintenance Manual Accounting Chart of Accounts Rules and Rates Sets up all the required systems and tailors for Boulder Outage Management System Maintenance Management System Budget Reporting System Electric Reliability Reporting System Customer Information System Call Tracker System Online Identify Verification System – Red Flags Rule Compliance AudioTel Remittance Processing System and Remote Bank Deposits Hires all Personnel New Electric Distribution Utility Start Up Activities

37 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

38 Questions?