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California

A P U B L I C AT I O N O F T H E C A L I F O R N I A M U N I C I PA L U T I L I T I E S A S S O C I AT I O N

New Flow on H2O BRIGHT IDEAS: INNOVATIVE SOLUTIONS EMERGE AS PUBLICLY OWNED UTILITIES AND HIGH TECH CONNECT

PLUS

NEWER MUNIS DONâ€™T MISS A BEAT 10 SIDE-BY-SIDE: NEWSOM VS. COX 16

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2 CALIFORNIA WATER & POWER FALL 2018

949.305.3311

Made in the USA

Contents WATER

Beyond ‘Doing More With Less’

Water agencies tap innovation and tech expertise to find new solutions to serve customers.

POWER

The ‘New’ Kids on the Block

Three municipal utilities find success going the extra mile.

18 LEADERSHIP MATTERS

18 DEPARTMENTS:

Putting Customers First

Q&A with LADWP GM David Wright, who guides the nation’s largest publicly owned utility.

First Word | Power Player | Bright Bites | Innovative Communities | Big Picture

California Municipal Utilities Association Executive Director Barry Moline Communications Manager Matt Williams Director for Water Danielle Blacet Legislative Director for Energy Patrick Welch Regulatory Advocate Jonathan Young Event & Membership Manager Christine Chapman Office Manager Teresa Rexrode

Ruralite Services Inc. CEO Michael Shepard Editor Leon Espinoza Assistant Editors Pam Blair, Jennifer Brown, Brandon Pomrenke Graphic Designers Duy Mai, Denise Clifton Communications and Marketing Director Kathi VanderZanden

COPYRIGHT All editorial and advertising contents are ©2018 by Ruralite Services,Inc. Reproduction or use in any form of editorial, news, photo or advertising content in whole or part without permission of Ruralite Services, Inc. is prohibited.

Display Advertising Inquiries American MainStreet Publications 611 S. Congress Ave., Suite 504 Austin, TX 78704 (800) 626-1181 or (512) 441-5200

CALIFORNIA WATER & POWER IS A PUBLICATION OF CMUA IN ASSOCIATION WITH RURALITE SERVICES, INC.

FALL 2018 CALIFORNIA WATER & POWER 3

FirstWord

Stay open to the daily 'Wow'

T NOTE FROM THE EXECUTIVE DIRECTOR BARRY MOLINE

here’s an old expression, “Minds are like parachutes, they only function when open.” The quote is attributed to Thomas Dewar of Scottish whisky fame, who lived from 1864 to 1930. He was a successful marketer and traveled the world to introduce new people and places to his adult beverage. But how do we keep an open mind? I listened to a recent episode of the NPR podcast “Hidden Brain,” which focused on the benefits of and actions we can take to open our minds to new ideas. The episode focused on the story of U.S. Airways pilot Captain Chesley “Sully”

Sullenberger, who in 2009 landed an airplane in the Hudson River off New York City after it flew into a flock of birds and lost power shortly after takeoff. The details are remarkable, but how Captain Sully got his mind to the point where he was able to make this difficult, complex and fast decision also is remarkable. For perspective on how long this entire situation took place, it’s taking you more time to read this column than Captain Sully had to hit the birds, consider options and land an airplane full of people in the river. He had little time to think and decide— exactly 3 minutes, 28 seconds. For the first two minutes, Sully and First Officer Jeff Skiles do two things simultaneously: try to restart the engines

that had shut down from the birds passing through them and determine landing options. The control tower offers multiple options, including turning back to LaGuardia Airport or Teterboro, a small commuter airport in New Jersey a few miles away to the right. Sully broadcasts, “We may end up in the Hudson.” There’s no positive reinforcement from the control tower on that option as they continue to offer airport landing options. As the plane descends rapidly, Sully has to quickly determine in his head his elevation, his rate of descent and his distance to a landing site. Think of watering plants in your yard with a watering can. Not much pressure to the stream, there’s an arc of flow, and that determines how far you have to reach to water a plant. Same thing here, except Sully had to do that all in his head—and fast. After two minutes of swift but controlled activity in the cockpit, and equal action by air traffic control on the ground, Sully announces, “We’re gonna be in the Hudson.” The control

tower can hardly believe WE MUST CONSTANTLY SEEK TO LEARN it. Fortunately, we WHAT WORKS AND WHAT DOESN’T, AND know the plane landed BE OPEN TO DAILY “WOW!” MOMENTS. safely, all passengers were rescued and Sully was appropriately designated a hero. push the envelope. But what brought him to this The comparison to our industries is moment to be able to consider so obvious. You are an expert in the water many options, do it quickly, choose the and electric fields, where technology unorthodox one of landing an airplane and programs are constantly changing, full of people in a river, and do it safely? generally to improve our effectiveness. It turns out Sully is an avid pilot— We must constantly seek to learn what not only of commercial airliners, but works and what doesn’t, and be open of everything that flies. He enjoyed to daily “Wow!” moments, where we learning about different types of learn something new. aircraft and found instructors who Opportunities present themselves could teach him. He also volunteered regularly. We can either respond with, to help investigate accidents of all “Oh yeah, I know that already,” or types and learned what goes on in “Interesting, that’s a new twist. How these fast-decision situations. can we use that here?” Within his profession, Sully was Like Sully, let’s be expert clearly an expert, but also a constant experimenters, focused on controlling learner. He had developed a healthy costs, maintaining high reliability, balance between expertise and balancing sustainability for our experimentation. He knew the limits of communities and constantly looking flight from many angles and sought to for new ways to serve our customers learn how new technology could safely effectively. CWP

SULLY WAS AN EXPERT AND A CONSTANT LEARNER. HE HAD DEVELOPED A HEALTHY BALANCE BETWEEN EXPERTISE AND EXPERIMENTATION.

4 CALIFORNIA WATER & POWER FALL 2018

FALL 2018 CALIFORNIA WATER & POWER 5

FirstWord

Stay open to the daily 'Wow'

T NOTE FROM THE EXECUTIVE DIRECTOR BARRY MOLINE

SULLY WAS AN EXPERT AND A CONSTANT LEARNER. HE HAD DEVELOPED A HEALTHY BALANCE BETWEEN EXPERTISE AND EXPERIMENTATION.

4 CALIFORNIA WATER & POWER FALL 2018

FALL 2018 CALIFORNIA WATER & POWER 5

Going Beyond ‘Doing More With Less’ Water agencies seeking answers to an age-old conundrum find innovative solutions Paul Hames / California Department of Water Resources

The Pahlmeyer Vineyard in Napa Valley is a customer of Fruition Sciences, one of the companies partnering with Imagine H20 to find innovative solutions in water consumption.

6 CALIFORNIA WATER & POWER FALL 2018

By Karen Wilkinson

t’s a hackneyed cliché that seems to have lost its impact over time and after budget crisis on top of budget crisis: “Do more with less.” Public agencies everywhere are expected to maximize efficiency and at the same time reduce costs. In addition to this financial pressure, water agencies get another double whammy: climatechange impacts that make water supply highly intermittent, and increasingly strict state mandates to conserve resources. Utilities are required to encourage customers to use less water and maintain high standards for quality, which typically means less revenue coming in. As a result, every dollar is becoming more precious for water agencies, said Tom Ferguson, vice president of Imagine H2O, a nonprofit startup accelerator based out of San Francisco. A new wave of entrepreneurial companies sees a big opportunity to help utilities become more effective and efficient, using a wide range of cost-effective technologies to improve everything from maintenance and operations to water quality monitoring and conservation. At the same time, forward-looking public water agencies aren’t passively

Photo of EBMUD EBMUD Photo courtesy courtesy of

An East East Bay Bay Municipal Municipal Utility An Utility District District employee employeedemonstrates demonstratesacoustic acousticleak leak detection detection technology technologythe thedistrict districtuses usestoto support water support water efficiency efficiencyand andconservation conservation in its community. in its community.

receiving these solutions solutionsas asthey they receiving these come; come; they’re they’re actively actively seeking seeking them out. them out. “Water “Water utilities utilities like liketo tothink thinkof of themselves as as beautiful, beautiful, unique themselves unique snowflakes,” snowflakes,”Ferguson Fergusonsaid. said.“They “They are, it’s incumbent are, but but it’s incumbent upon upon utilities utilities to to identify identify their their issues issues and and look look for for potential solutions out potential solutions out there.” there.” Waiting for Waiting for solutions solutions could could put put

water utilities utilities far far behind water behind the the times, times, Ferguson said. Ferguson said. Imagine H2O was was founded founded with with Imagine H20 the intent intentof of empowering empoweringpeople people the to develop develop and deploy innovation innovation to and deploy to solve solve water challenges globally. globally. to water challenges The company connects connectspublic public The company utilities with tech tech companies companiesthat that utilities with pave way toward toward sustainability sustainability pave the the way and efficiency. and efficiency. Imagine H2O’s mission Imagine H20’s mission is is segmented intofive five categories: categories: segmented into data and analytics analytics(improved (improved data and management, analysisand and management, analysis communication of water communication water data), data), scarcity and safety safety(increased (increased scarcity and reliability, of reliability, safety safety and and security security of access to clean clean water), water), monitoring monitoring and treatment(improved (improved and treatment treatmentand andtesting testingofofwater water treatment and wastewaterstreams), streams), and wastewater water water efficiency efficiency (reduction (reduction of of the water waterintensity intensityofofindustry industry the and agriculture),and andutilities utilities and agriculture), operations (cost-effective upgrades upgrades operations (cost-effective in maintenance, in infrastructure, infrastructure, maintenance, supply and operational operational supply chain chain and performance). performance). Ferguson describesthe thetrends trends Ferguson describes and multiple solutions solutionswater water and multiple agencies should know knowabout. about. agencies should

“WATER UTILITIES “WATER UTILITIES LIKE TO TO THINK THINK OF LIKE OF THEMSELVES AS THEMSELVES AS BEAUTIFUL, UNIQUE BEAUTIFUL, UNIQUE SNOWFLAKES. SNOWFLAKES. THEY BUTIT’S IT’S THEY ARE, ARE, BUT INCUMBENT UPON INCUMBENT UPON UTILITIES TOLIST LIST UTILITIES TO THEIR PROBLEMS THEIR PROBLEMSAND AND LOOK FOR POTENTIAL POTENTIAL LOOK FOR SOLUTIONS OUTTHERE.” SOLUTIONS OUT THERE.” -TOMFERGUSON, FERGUSON, —TOM VICE VICEPRESIDENT, PRESIDENT,IMAGINE IMAGINEH20 H20

Data & Analytics Data & Analytics Detecting what Detecting whatgoes goesunseen unseenoror

SPRING 2018 CALIFORNIA WATER & POWER 7

Going Beyond ‘Doing More With Less’ Water agencies seeking answers to an age-old conundrum find innovative solutions Paul Hames / California Department of Water Resources

The Pahlmeyer Vineyard in Napa Valley is a customer of Fruition Sciences, one of the companies partnering with Imagine H20 to find innovative solutions in water consumption.

6 CALIFORNIA WATER & POWER FALL 2018

By Karen Wilkinson

Photo of EBMUD EBMUD Photo courtesy courtesy of

Data & Analytics Data & Analytics Detecting what Detecting whatgoes goesunseen unseenoror

SPRING 2018 CALIFORNIA WATER & POWER 7

unnoticed by the human eye is the trend here, Ferguson said. That includes leak detection, “zombie” revenue detection analytics, advanced meter infrastructure (AMI) and more. A startup called Fracta uses artificial intelligence to assess the condition of drinking water distribution mains: underground water pipes. Ferguson said Fracta and others like it help utilities avoid wasting money on unnecessary upgrades. WatchTower Robotics, an MIT startup, has created a soft body, tetherless robot that finds leaks in water distribution pipes. Its cloudbased analytics platform creates a “Google Maps of pipes,” which informs the pipe operator of the location and size of leaks, as well as the likelihood of failure. Valor Water Analytics’ crown jewel is the Hidden Revenue Locator, which pinpoints apparent losses across the entire agency by using algorithms and data analysis. These losses can be due to metering

inaccuracies, meter oversizing, systematic data handling errors, unfilled meters, leaks, unauthorized consumption and more. Water Pigeon fills a niche in transforming hard-to-read meters into smart meters by way of AMI. Ferguson said while costly, it is simple and impactful. It also can save money and improve efficiency. Scarcity and Safety Polyfluoroalkyl and perfluoroalkyl substances (PFAS)—the emerging contaminants found in many communities, including Flint, Michigan—has potential health risks. Customen, a water safety company, has an adsorbent media that can be fed into an existing, activated carbon treatment facility to treat PFAS. Handheld lead monitoring devices supplement lab testing. Andalyze, one such company, enables consumers to buy and use such a gadget in their households or in situations that require further investigation of a leadrelated issue.

Monitoring and Treatment AMI is all the buzz in the water and power industry, and for good reason. It has transformed the way end-users interpret their consumption and how utilities deliver information. Instead of reading meters every two months and delivering such information in a customer's bill well after the fact, AMI can show consumption in near-real time. East Bay Municipal Utility District (EBMUD) has used AMI for 15 years, said Water Conservation Manager Richard Harris. He said the technology is the best business model for managing supply and demand, as it essentially has a water dashboard in real time. The technology proved useful during the recent drought, Harris said. “People asked, ‘How much is 10 percent?’” he said. “It was helpful for them to see where they were getting savings. “We had a groundswell of demand. Everyone is asking for this technology. And it’s a big

Accounting and consulting services for the utility industry aldrichadvisors.com 877-620-4489

8 CALIFORNIA WATER & POWER FALL 2018

A NETWORK OF INNOVATION

Photo by Karen Wilkinson

Suzanne Gautier, a communications representative with the San Francisco Public Utilities Commission (SFPUC), shows the utility's nonpotable water treatment system equipment room.

undertaking financially and operationally. But it’s not a matter of if. It’s when.” Water Efficiency When it comes to overwatering, agriculture and commercial building sites are typically some of the biggest consumers. In the Napa Valley, Fruition Sciences monitors grapevine health and tells the user how much water the crop needs, reducing the possibility of overwatering. Ceres Imaging provides farmers an overview of water stress by taking aerial, spectral images of agriculture land to help them make resource allocation decisions based on realtime plant health. In commercial buildings, AquaSeca allows users to break down water use by floor, so leak detection and the ability to target high-volume users is no longer a guessing game. One of the more notable advancements to enter the scene is Flo Technologies, which automatically shuts off water if it detects a leak. It is expensive, Ferguson said, but because water leaks are a major expense of home insurance companies, there are discounts for consumers who install such technology.

Ferguson said. Lotic Labs, which plans to deploy in California, uses millions of data points to calculate hydrological conditions that trigger a payout when a certain threshold is reached. “Whether it’s a drought or flood, extremes of weather are going to have negative effects on utilities,” said Ferguson. “This product helps utilities cover the costs that result from extreme weather events.” At the San Francisco Public Utilities Commission (SFPUC), a leak alert program has been available to single-family customers since 2015. It provides options for email or text notification if a user’s water consumption spikes. The program is multilingual and will soon be available to multi-family dwellings and irrigation customers. People usually get ideas from within their already established circle. For utilities, that could be a colleague at another organization, or a fellow attendee at a professional conference or industry event. “My call to action is to expand your network in order to maximize the likelihood that you’ll run into a solution to lower your costs, improve efficiency and make your life easier,” Ferguson said. CWP

Utility Operations During droughts, dealing with costs can be a nightmare for utilities,

Karen Wilkinson is a freelance writer based in Sacramento, California.

Metropolitan Water District By focusing on solutions rather than problems, Metropolitan Water District of Southern California’s innovation program is designed to connect key players such as investors, university innovators, entrepreneurs, service providers, mentors, technology corporations, public agencies, economic development professionals and those in the water industry. “H2O Tech Connect” is an online, public portal with more than 750 participants that links the innovation community with water industry professionals. As of December 2016, MWD has adopted 11 outside technologies through this program. San Francisco Public Utilities Commission A blueprint that serves as a how-to guide for communities interested in implementing an onsite water treatment program was developed through a group of state and municipal agencies from across North America that met in 2014 at the Innovation in Urban Water Systems Meeting. Hosted by the SFPUC, the purpose of the meeting was to discuss barriers, opportunities and research needs for onsite water treatment systems for applications such as toilet flushing and irrigation. San Diego County Water Authority Through its internal innovation program, the San Diego County Water Authority elicits input from entrepreneurs and partnerships with regional, national and international organizations, in order to identify cutting-edge technologies that will help continue to manage the region’s diverse water supplies and improve long-term stewardship of the region’s most precious natural resource.

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Accounting and consulting services for the utility industry aldrichadvisors.com 877-620-4489

8 CALIFORNIA WATER & POWER FALL 2018

A NETWORK OF INNOVATION

Photo by Karen Wilkinson

Suzanne Gautier, a communications representative with the San Francisco Public Utilities Commission (SFPUC), shows the utility's nonpotable water treatment system equipment room.

Utility Operations During droughts, dealing with costs can be a nightmare for utilities,

Karen Wilkinson is a freelance writer based in Sacramento, California.

FALL 2018 CALIFORNIA WATER & POWER 9

The 'New' Kids on the

Block

Customer service, energy storage, high-speed internet— municipal utilities juggle a variety of challenges

By John Egan

From customer service initiatives and community engagement to highspeed fiber optics, municipal utilities work to improve the lives of their customers. 10 CALIFORNIA WATER & POWER FALL 2018

everal municipal utilities were created amid historic By John Egan changes in California’s electricity market after the state’s power crisis of 2000-2001. In the 18 years since then, these publicly owned utilities have grown and changed with the times. But they have always been deeply rooted in their local community. For these newer publicly owned utilities, going the extra mile has been an imperative from the beginning.

For instance, Corona Department of Water & Power General Manager Tom Moody recalled the utility changing out a distribution transformer a few months ago at a local movie cinema in the middle of the night. In some ways, it was simply business as usual. When talking with the customer about scheduling the work, Moody learned the movie house went dark about 3 a.m. most nights. Tuesdays and Wednesdays during the summer, it opened early for $1 summer morning matinees. On those days, employees showed up at 8:30 a.m. Could the utility’s workers change out the transformer between 3 a.m. and 8:30 a.m.? That would cause the least disruption to the customer’s operations. No problem, cinema officials were told. Corona’s crew showed up at the appointed hour. About five hours later—when the theater’s employees arrived to begin popping corn, making slushies and warming up the movie equipment—electricity was flowing through a new transformer. “As a publicly owned utility (POU), we are invested in our customers on a really close basis,” Moody told California Water & Power. “We can be more responsive to local concerns. We want to serve our customers in ways that are least impactful, and customers appreciate that. It’s really rewarding to have that kind of

Mike McLellan, an electric utility program coordinator for Moreno Valley Electric Utility, staffs the utility’s booth at the city’s July 4 celebration.

relationship with customers.” Focusing on the local community is a shared theme among Corona Department of Water & Power, Moreno Valley Electric Utility (MVEU) and Rancho Cucamonga Municipal Utility (RCMU), which were launched by utilizing a state law allowing municipal utilities to be established to serve unincorporated greenfield areas within city limits and adjacent to the incumbent utility’s boundaries. Contrary to what some customers hear, these three utilities didn’t win a municipalization battle with the incumbent electricity provider. That has sometimes led to enlightening conversations with residents who are not customers. At this summer’s July 4 event in Moreno Valley, several hundred city residents visited the utility’s booth. Only a few were customers, MVEU Division Manager Jeannette Olko said.

MVEU primarily serves the eastern and southern portions of the city. “Because we share a service area with another electric utility, we’re always compared to that other utility,” Olko said. One comparison is price. Olko said the Moreno Valley City Council adopted a policy of price parity with the neighboring electric utility so it did not economically disadvantage the city’s residents. The municipal utility differentiates itself from the next-door utility with exceptional service. “We’re more flexible, more responsive and more efficient,” Olko said. “We turn around projects in a fraction of the time, and our reliability is higher.” Similarly, Moody said there have been other memorable customer

interactions. Throughout 2017, failing transmission infrastructure operated by Corona’s power delivery provider caused Corona’s 2,600 customers to endure 49 hours of cumulative outages. The utility convened a series of open houses to explain the problem and detail what was being done to fix it. “Most customers just wanted to know we were working to fix the problem,” he said. During those open houses, Moody explained to customers that the electricity that powers their lights and air conditioners is created at Hoover Dam, transmitted to the California Independent System Operator, then passed through an adjacent utility’s system before being delivered to Corona. In other words, practically all aspects of the generation and transmission of the POU’s electricity were out of its control. Like Corona and Moreno Valley, Rancho Cucamonga had for years been known as a bedroom community for Los Angeles and Southern California’s Inland Empire. But Fred Lyn, RCMU’s utilities division manager, said the city council wanted to change that by bringing high-quality jobs to the community. “Why can’t we be the place where

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The 'New' Kids on the

Block

Customer service, energy storage, high-speed internet— municipal utilities juggle a variety of challenges

By John Egan

From customer service initiatives and community engagement to highspeed fiber optics, municipal utilities work to improve the lives of their customers. 10 CALIFORNIA WATER & POWER FALL 2018

Mike McLellan, an electric utility program coordinator for Moreno Valley Electric Utility, staffs the utility’s booth at the city’s July 4 celebration.

FALL 2018 CALIFORNIA WATER & POWER 11

"THESE ARE OUR CUSTOMERS AND NEIGHBORS. THEIR CONCERNS ARE OUR CONCERNS.” —MVEU DIVISION MANAGER JEANNETTE OLKO

The Other New Players Two other California Municipal Utilities Association member utilities in Southern California also were created in the wake of California’s energy crisis: Victorville Municipal Utility Services (VMUS) and City of Industry Public Utilities both provide municipal service predominantly to business and commercial customers. VMUS has 67 electric meters that provide service to commercial and industrial customers at Foxborough Industrial Park and Southern California Logistics Airport, and 46 gas meters that provide natural gas service to customers at the airport. Victorville is in the process of filling a new position, director of utilities, to work under the city manager. Residential customers in Victorville get their electric service from Southern California Edison. The City of Industry—aptly named because the L.A. County suburb is home to 2,500 businesses and just a few hundred residents—operates a municipal electric utility serving some of the city’s business and residential properties. These areas include the Pacific Palms resort, Industry Hills Golf Course, Anaheim Pumping Station, a solar plant and a substation. A five-person commission governs the utility. 12 CALIFORNIA WATER & POWER SPRING 2018

people live and work?” he asked rhetorically. Using that mantra, a few years ago RCMU landed Evolution Fresh as a customer. The juice division of Starbucks brought about 200 wellpaying jobs to the community. RCMU positions itself as “we’re just like our neighboring investorowned utility—only smaller and more responsive,” Lyn said. Like all publicly owned utilities, RCMU keeps its customers’ money in the community, on Main Street, rather than shipping it off to investors on Wall Street. “We like to say that investors don’t affect our decision making,” Lyn said. RCMU is launching a fiber-optics master plan in partnership with Inyo Networks. “We didn’t want to be in the retail broadband internet service provider business,” Lyn said, “but we had a lot of unused capacity on our fiber network.” The offering is targeted to commercial customers, schools, colleges and hospitals. Like POUs across the country, RCMU is getting into the fiber business because existing offerings from incumbent providers are too expensive or do not meet customers’ needs. The high-speed connectivity—which will offer download and upload speeds of up to 1 gigabyte per second for less than competitors charge—is part of long-term efforts to make Rancho Cucamonga a smart city, Lyn said. The drive to form not-forprofit electric utilities and to offer competitive fast internet service stems from leaders’ commitment to providing essential services to their communities with no profit margin—a trait shared by all POUs. Driven by service rather than profit, leaders of municipal utilities serving the cities of Corona, Moreno Valley

and Rancho Cucamonga look at the community’s needs to drive their business plans. Their efforts are being recognized. MVEU has received the Excellence in Reliability certificate from the American Public Power Association three years in a row. The certificate honors members who significantly outperform the electric industry national average in reliability, as measured by length of outages in minutes. Olko said her utility also is trying to establish itself as customers’ trusted energy adviser on solar power. “Roughly 10 percent of our residential customers have rooftop solar installations,” she said. “A few warehouses have rooftop units as well. All told, there’s about 8 megawatts of customer-owned solar in our service area. Our peak load in 2017 was approximately 50 MW, so solar accounts for about 16 percent of our installed generating capacity.” But solar doesn’t work equally well for all customers, Olko said. Customers receive a variety of solicitations from solar providers. She said the utility is trying to find a way to provide unbiased information that educates customers on the benefits and costs of rooftop solar. “I attended a business event in my community recently, and one person said she was surprised that the manager of the utility was there talking to businesses and other members of the community,” Olko said. “I believe it is vital to the success of the utility and the city to personally meet the people we serve. These are our customers and neighbors. Their concerns are our concerns.” CWP John Egan is president of Egan Energy Communications. He can be reached at john@eganenergy.com.

The 'New' Kids at a Glance Rancho Cucamonga Municipal Utility

Corona Department of Water & Power

Moreno Valley Electric Utility

2001

1,000

2,600

6,500

18 megawatts

29 megawatts

50 megawatts

$13 million

$17 million

$29 million

Hardest part of running a POU

Keeping up with changes in a dynamic market

Acquiring renewable resources to meet regulatory requirements

Growth. It is a double-edge sword

Easiest part of running a POU

"There's an easy part?"

Collaborating with customers for mutual gain

Growth (see above).

"CMUA provides a united voice to advocate on behalf of all California POUs."

"CMUA gives a voice and helps us navigate a complex market, and they provide great opportunities to share information."

Year formed Customers Peak electrical load Annual revenue Full-time employees

Value of CMUA

"CMUA provides us with critical legislative and regulatory information and advocacy."

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BUILD BETTER BUILD SAFER BUILD

The Laborers’ Union (LIUNA) knows that its members’ success goes hand-inhand with the contractor. By cooperating with signatory employers, LIUNA provides the best trained, hardest working and safest people in the industry. The classroom and hands-on training that apprentices and journeymen undergo result in skilled Laborers that work safely to get the job done right the first time. LIUNA’s commitment to training includes: • $25 million invested in training • 33,577 students trained • 2,959 classes taught

SKILLED

Oscar De La Torre Northern CA District Council (925) 469-6800 www.ncdclaborers.org 14 CALIFORNIA WATER & POWER FALL 2018

• 532,579 total training hours • 5,411 registered apprentices • 1,272 apprentice graduates in 2017

TRAINED

SAFE

Jon P. Preciado Southern CA District Council (626) 350-6900 www.scdcl.org

Our team has extensive experience in all facets of the industry. We are employeeowned and independent, which gives you confidence that we are motivated to satisfy your needs and represent your business interests.

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Tale of the Tape California's Race for Governor

THE UNDERDOG

THE FAVORITE

GAVIN

JOHN

NEWSOM DEMOCRAT SAN FRANCISCO 51

COX PARTY AFFILIATION BIRTHPLACE AGE

REPUBLICAN CHICAGO 63

LIEUTENANT GOVERNOR

OCCUPATION

BUSINESSMAN

MARIN COUNTY

RESIDENCE

SAN DIEGO COUNTY

Former mayor of San Francisco (2004-11) and S.F. supervisor; winery owner and investor in restaurants and clothing stores; author of “Citizenville.”

EXPERIENCE

Corporate lawyer, founded a real estate management firm; Illinois General Assembly candidate (2000); ran for Republican nomination for U.S. president (2008).

Supports 100 percent renewable energy for California and energy grid modernization; supports forest thinning as a local energy source and statewide transportation electrification; wants zero diesel pollution by 2030. Wants California to produce more than 100 percent renewable energy and export to other states.

ENERGY PLATFORM

Would repeal California’s gas-tax increase and attempt to kill high-speed rail or relocate its route; opposes renewable energy mandates and cap-andtrade; is concerned about rising utility rates.

Would support groundwater replenishment and recycled water programs to combat the effects of climate change; calls contaminated drinking water in underserved communities a “moral crisis;” opposes offshore drilling and new fracking operations.

WATER PLATFORM

Would support California building more water storage and backs Proposition 3, the proposed $8.9 billion bond for water infrastructure and watershed projects; opposes Delta tunnels plan.

Economic development and education; protecting the environment; justice; addressing homelessness.

TOP PRIORITIES

Improve California’s affordability and business climate; diminish special interests; rein in public pension obligations.

“On day one of my governorship, I’ll put California on a clear path to 100 percent renewable energy.”

QUOTEWORTHY

“We can stop the water rationing, repeal the gas tax, finally fix our schools—and we can make housing and rents truly affordable.”

Sources: San Francisco Chronicle; gavinnewsom.com; johncoxforgovernor.com 16 CALIFORNIA WATER & POWER FALL 2018

team:

noun \ˈtēm\

a group of people working together toward a common objeccve

At TEA, our main objeccve is your success. Because we are owned by public power, we understand what makes you unique and can help you develop strategies to achieve your goals.

beeer together. FALL 2018 CALIFORNIA WATER & POWER 17

LEADERSHIP MATTERS

Putting

Customers First

or the last two years, David Wright has served as general manager of the Los Angeles Department of Water & Power. But, as a whole, his 30-year career has centered around government service and publicly owned utilities. Wright worked for the City of Riverside for about 25 years, most recently as general manager of Riverside Public Utilities. He also worked at the Las Vegas Valley Water District and Southern Nevada Water Authority. Wright initially joined LADWP in 2015 as senior assistant general manager of LADWP’s power system. Now LADWP's general manager, he oversees a department that has 10,000 employees and provides service to more than 4 million Los Angelinos. CW&P: What was one of the first things you did, from a management standpoint, when you came to LADWP in 2015? Wright: I was brought in to manage the power system and help fix the customer billing system, and we immediately needed to get a direction of where we were going. We needed to create a strategic plan specifically focused on customer service. Each work effort under the strategic plan’s goals is assigned to a specific person so that there’s a tremendous amount of accountability. Frankly, peer pressure is the best management 18 CALIFORNIA WATER & POWER FALL 2018

Checking in with LADWP General Manager David Wright approach there is, and it works fantastically. When someone feels accountable and they accomplish a work objective, it’s a pretty good feeling to know that you’re working hard to make the goals that you have set together a success. We now have a Customer Bill of Rights where we have specific performance targets that we’ll meet, and we lay out to the public. If we don’t accomplish some of those, the customer gets a credit on their bill. We track over 100 metrics. For example, if you call for power or if you submit plans, we’ll get back to you within a certain period of time. CW&P: Infrastructure replacement and modernization is a constant challenge for all utilities. How is LADWP keeping on top of it? Wright: Like many utilities, LADWP fell behind on its infrastructure replacement program because of the recession and deregulation. But LADWP really started to focus on this by putting together what’s called the Power System Reliability Program (PSRP). In the last 10 years, we basically have tripled our level of infrastructure investment from $165 million to over a half billion dollars. During the last year, we have replaced over 3,000 power poles,

almost 1,000 transformers and over 50 miles of underground cable. We are doing a lot, but it’s taking a long time to reach that level. We have faced outages, during stressful operations, that I think could have been avoided if the attention to infrastructure replacement had occurred over the past 20 years, instead of really just ramped up over the last five years. Like the power infrastructure, our water infrastructure replacement also fell behind. We are back to investing in what we need to reduce water leaks and increase quality of service. We had some really big water leaks that created several sinkholes in some of our major thoroughfares in the city. We, like most utilities, rank or grade our mains and replacement projects on need. Those have been prioritized and are in the process of replacement. We installed over 190,000 feet of mainline pipe and almost three miles of trunk line, and we replaced almost 28,000 meters. What’s really interesting is that we now put in earthquake-resistant water mains, where the water mains cross faults. We went and saw this technology in Japan and brought it back to the United States. It’s an amazing technology, like a “matrix accordion,” where it can move in any

FALL 2018 CALIFORNIA WATER & POWER 19

LEADERSHIP MATTERS

direction and stretch and withstand a relatively significant earthquake. We’re doing something that I think most California water agencies would benefit from, and it’s not at all costprohibitive. CW&P: Two years ago, the L.A. City Council tasked LADWP with finding a path to move the city to 100 percent renewable energy. Where are you on that project? Wright: L.A. has created the Renewal Energy Advisory Group—a cross section of individuals across the city, not LADWP employees. They are taking a leadership role. It’s a threeyear process until we can expect a final, full report from them. It will be comprehensive. It’s going to say, “How do you get from where we are today to 100 percent renewable energy? How much will it cost? What are the hurdles to get over? What are some of the new technologies that might be needed?” It’s going to be a public document, and I would like all CMUA members to get a copy of it. I have a feeling it’s going to be a prototype with what a number of other utilities will be doing. I think it’s fantastic. During my 30-year career, there has always been so much discussion about setting the targets and standards of renewable energy, and what is never discussed is everything that it’s going to take. As a general manager, you’re always concerned with the availability and cost of power and how it influences rates, as well as your power mix. Today, we’re in the mid- to upper-20s (in percentage of renewables). Our goal is 65 percent renewables by 2030 and 70 percent renewables by 2036. CW&P: With so much going on, what is it like to manage LADWP— the largest publicly owned utility in the nation? Wright: With 10,000 employees here, one of the biggest challenges is developing a relationship with staff. No matter how big or small

20 CALIFORNIA WATER & POWER FALL 2018

FRANKLY, PEER PRESSURE IS THE BEST MANAGEMENT APPROACH THERE IS, AND IT WORKS FANTASTICALLY. your utility is, you have to go out and make the attempt to interact with as many staff as you can. Twice a month, I go make presentations to our staff anywhere from San Pedro up to Bishop and a lot of locations in between. What I have found is that people can see that the general manager is dedicated and supports their work and recognizes

the challenges that we all have to accomplish our goals. It’s been the most personally rewarding experience that I have had—to see how hard staff works, and they deserve some recognition. It’s the most enjoyable part of my job. CWP Online: Read the full interview with LADWP’s David Wright at CMUA.org.

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FALL 2018 CALIFORNIA WATER & POWER 21

POWER PLAYER

Same Issues Bigger Stage

Assemblymember Laura Friedman takes lessons learned in Glendale to state office

22 CALIFORNIA WATER & POWER FALL 2018

By Matt Williams

irst-term Assemblymember Laura Friedman acknowledges she is still relatively new to the complexities of statewide policymaking. But it looks like she is far along the learning curve already. Since taking office in late 2016, Friedman has leaned adeptly on her deep experience in local government to make an impact on some of the state’s most pressing water and energy issues. A Democrat, Friedman serves California’s 43rd Assembly district—an area encompassing Glendale, Burbank and parts of Los Angeles. She lives in Glendale, where she is a former city councilmember and mayor. “I believe that if you’re from or you represent Southern California, you need to educate yourself about water and power issues because we all have to make decisions as elected officials, even at the local level,” Friedman said. “You can’t just rely on the recommendations of staff. You have to be able to take a broader view.” Friedman’s wide lens on issues has been put to good use in 2018, particularly on water matters. This year, she co-authored a bill signed by the governor that enacts new statewide water conservation and efficiency standards. Friedman also introduced bills on groundwater transfers and water meter performance standards. She served as a member of the Assembly Water, Parks and Wildlife Committee, which worked on what would become Proposition 68—the Parks, Environment and Water Bond voters approved in June. “For me being a freshman member so new to the committee, I’m really struck by the balance it tries to find between the agricultural users versus the urban users, rural, Northern versus Southern California,” Friedman said “Having a place where you hear those viewpoints expressed and represented is very interesting to me, and I can’t think of many other places where politically that happens.” Friedman’s instinct for building consensus came to fruition

in her successful water conservation and efficiency bill (AB 1668), which CMUA supported. Friedman said the conversations around making water conservation a way of life in California brought the entire state to the table, and that her legislation reflected compromise and tried as best it could to address the needs of several stakeholders. Before arriving in the Legislature, Friedman bolstered her knowledge about water issues while serving as a Metropolitan Water District of Southern California board member. During those seven years at Met, she also became more familiar with energy issues. As a city councilmember, she governed the city’s publicly owned utility, Glendale Water & Power. She credits GWP for its current efforts to explore renewable power procurement alternatives to the Grayson power plant repowering project, and noted Glendale was one of the first utilities to make a large investment in smart meters. At the state level, Friedman said California should be a technology

Photo courtesy of Assemblymember Laura Friedman

As a former Glendale City Councilmember, Assemblymember Laura Friedman is accustomed to being in the community and has used her experience at the local level in the halls of the State Capitol.

the impacts of climate change. “Buildings have not been recognized by the general public for the role that they play, and there’s a great opportunity for us to continue with carbon reduction through the building

energy utilities and city councils to look at and learn from the subcommittee’s efforts the past several months to put in place a framework designed specifically for the unique workplace, reporting structures and accountability of elected officials and staff. “I haven't looked at every water agency or utility across the state, so I can’t speak for all of them, but if it’s similar to what I’ve seen from other agencies, there’s just not a lot of really serious culture-changing apparatus being put into place,” Friedman said. “I would make —LAURA FRIEDMAN that suggestion.” CWP

“I BELIEVE THAT IF YOU’RE FROM OR YOU REPRESENT SOUTHERN CALIFORNIA, YOU NEED TO EDUCATE YOURSELF ABOUT WATER AND POWER ISSUES BECAUSE WE ALL HAVE TO MAKE DECISIONS AS ELECTED OFFICIALS, EVEN AT THE LOCAL LEVEL,”

powerhouse on utilities, water and energy. She sees utilities’ role as being leaders when the state must make managerial decisions about demand and distribution, as well as trendsetters for how to empower consumers to make better choices. “I hope we see all of those utilities move into being more aggressive about utilizing technology to empower their customers—to help them with the Duck Curve and all the other issues that they have,” said Friedman. As far as legislative proposals on the energy side, Friedman has introduced a bill (AB 32) on decarbonizing California’s building sector—yet another way to mitigate

sector,” Friedman said. “I think it’s very important. Part of it is beginning that discussion and really having people shift their attention.” Beyond water and energy, Friedman perhaps has been most visible in the public eye for her work as chairwoman of the Subcommittee on Sexual Harassment Prevention and Response, which legislative leaders convened in early 2018 after a spate of headlinemaking harassment allegations and findings levied against several state legislators and staff. The subcommittee has worked to write new rules and procedures for the Assembly and Senate. Friedman urges local water and

Laura Friedman Residence: Glendale Age: 51 XX California Assembly member, 43rd District (2016-present) XX Member, California Assembly Water, Parks and Wildlife Committee XX Chairwoman, Joint Rules Subcommittee on Sexual Harassment Prevention and Response XX Councilmember (2009-16) and mayor (2011-12), City of Glendale XX Board member, Metropolitan Water District of Southern California (2009XX Smith-Weiss Environmental Champion Award (2014) XX XX

FALL 2018 CALIFORNIA WATER & POWER 23

POWER PLAYER

Same Issues Bigger Stage

Assemblymember Laura Friedman takes lessons learned in Glendale to state office

22 CALIFORNIA WATER & POWER FALL 2018

By Matt Williams

Photo courtesy of Assemblymember Laura Friedman

As a former Glendale City Councilmember, Assemblymember Laura Friedman is accustomed to being in the community and has used her experience at the local level in the halls of the State Capitol.

FALL 2018 CALIFORNIA WATER & POWER 23

BrightBites REPORTS FROM THE FIELD

13% —How much greenhouse gas emissions are down in California since the peak in 2004. California has achieved its goal to reduce climate emissions below 1990 levels four years early, according to the California Air Resources Board.

A KIWI CONNECTION TO CALIFORNIA? Researchers at University of California Irvine report that sea surface temperatures near the island nation of New Zealand—about 6,800 miles from California—could be a better predictor of wet or dry winters in the Golden State than the widely known El Niño water pattern in the equatorial Pacific Ocean.

ANAHEIM PUBLIC UTILITIES MODERNIZES MAJOR WATER COMPLEX Anaheim Public Utilities recently renovated its La Palma Water Complex to provide the highest quality of service to customers. The original complex was built in the 1950s and needed rehabilitation. The renovation included demolition of a 3-million-gallon reservoir, major improvements to its 4-million-gallon reservoir, and demolition and reconstruction of its pump station.

FEDS PUSH FOR PLAN TO PUMP MORE WATER SOUTH Interior Secretary Ryan Zinke in August demanded an immediate plan to increase water deliveries to Central Valley farmers—a move that could put the federal government at odds with California’s state water policy. “The time for action is now,” said Zinke.

SOLAR PANELS ON EVERY NEW HOME The California Energy Commission has approved new rules going into effect in 2020 requiring solar panels to be installed on all new homes. The CEC reports the standards will add about $40 to an average monthly mortgage payment, but save $80 on monthly heating, cooling and lighting bills. California is the first state to enact this requirement.

24 CALIFORNIA WATER & POWER FALL 2018

HOOVER DAM COULD BECOME A JUMBO 'BATTERY' The Los Angeles Department of Water and Power is interested in putting a $3 billion pipeline and pump station powered by solar and wind energy at Hoover Dam on the border of Nevada and Arizona. “The net result would be a kind of energy storage—performing much the same function as the giant lithiumion batteries being developed to absorb and release power,” The New York Times reports.

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BRIGHT BITES

WELLS FARGO GIVES BOOST TO CLEAN ENERGY PROJECT IN FRESNO

Wells Fargo announced in August it has completed the final $85 million in taxequity funding for Sempra Renewables’ 200-megawatt solar generation facility near Fresno. It’s the last phase of $190 million in financing for four solar farms collectively known as the Sempra Great Valley Solar Project. The 200-MW Great Valley Solar Complex—which began commercial operation in May—will provide power to Marin Clean Energy, SMUD and investor-owned utilities. MARKET INSIGHTS FROM NAVIGANT SUPPORT TRANSPORTATION ELECTRIFICATION REPORT

In partnership with the GridWise Alliance, Navigant has produced a new study called “EVs–Driving Adoption, Capturing Benefits.” The report finds “utilities are well-suited to expand electrification across multiple transportation modes and provide a foundational system of charging infrastructure that supports a reliable, consistent and positive customer experience.” It is available at gridwise.org.

The cost per customer PG&E says it expects to take as a loss of profit due to potential liability for destruction caused by 2017 wildfires in California's wine country. That's a total of $2.5 billion. A report released in August from the Wharton Risk Management and Decision Process Center at the University of Pennsylvania recommends utilities pay for property damages caused by wildfires only if they acted negligently. The 2018 Legislature chose not to act to fix strict liability at this time. PG&E's costs to pay for wildfire damage could rise further.

26 CALIFORNIA WATER & POWER FALL 2018

$15,068 —The cost per customer Trinity Public Utilities District would have to pay due to claims from the 2017 Helena fire. Two claims have been filed with TPUD: one for $50 million from owners of damaged buildings and the other for $60 million from the federal government for timber loss and fire suppression cost (where the U.S. Forest Service has refused to manage vegetation). Significant questions remain about the cause of the fire.

InnovativeCommunities A ROUNDUP OF RECENT CALIFORNIA UTILITY ACCOMPLISHMENTS

Alameda Municipal Power voluntarily collected more than $10,800 from customers during the 2018 fiscal year for Power Up for Learning. The joint program of AMP and the Alameda Education Foundation provides robotics education to local public school students. This year, Anaheim Public Utilities launched its first scholarship program, recognizing high school seniors for exceptional essays on how their educational goals will impact the utility industry. The City of Banning electric department generated new revenue for the city by selling its excess renewable energy credits to another utility in Southern California. Banning’s energy portfolio is about 70 percent renewable. East Bay Municipal Utility District has a free art gallery open to the public at its administration building in Oakland. The Imperial Irrigation District Board of Directors approved a Quality AC Tune-Up Program enabling residential and commercial customers to have a professional contractor check their air-conditioning systems at no cost. Lassen Municipal Utility District is celebrating its 30-year anniversary. LMUD began providing reliable, safe and affordable electric service to Susanville and the surrounding community in 1988. This year, Marin Municipal Water District debuted its first-ever women’s pipe-tapping team, named Hustle & Flow, which participated in regional and national competitions. Teams work against the clock to drill into a cement-lined iron pipe and connect a tap, while maintaining the highest levels of safety and workmanship. During summer 2018, Metropolitan Water District of Southern California launched its new Landscape Transformation Program, offering residents and businesses $1 for every square foot of grass they replace with more water-efficient native plants and irrigation systems. Moreno Valley Electric Utility customers can review their electricity use, pay their bills, apply for rebates and access efficiency tips on a new mobile app called MyMVU. Pasadena Fire Department partnered with Pasadena Water and Power and the city's housing department to replace all available turf with drought-tolerant landscapes at five fire stations throughout the city. Hundreds of homes and businesses in the service territory of Redding Electric Utility will be eligible for upgrades that lower their electric use and reduce emissions of carbon dioxide after the city council approved five greenhouse gas reduction programs and $10.8 million in spending. As part of the summer STEM Riverside Public Utilities Learning Lab (PULL) Academy, 70 Riverside high school students participated in several days of intensive, hands-on training with the Riverside Public Utilities Department to learn about potential careers in the utilities industry. The Santa Clara Valley Water District received a first-place award for Excellence in Communications from the National Association of Flood and Stormwater Management Agencies. The water district’s annual floodplain mailer was recognized as an exemplary communication piece for flood awareness. The San Diego County Water Authority is expanding its long-running partnership with San Diego Gas & Electric by investing $150,000 to increase the availability of devices that save water and energy for thousands of income-qualified residents across the region. The San Francisco Public Utilities Commission hosted a premiere screening for the “Discover Your Watershed” video series at the Main Library Koret Auditorium. The series features 12 local storytellers sharing their experiences of San Francisco’s eight watersheds and their unique history. SMUD has started offering residential customers $300 to help them buy battery systems that reduce peak energy demand, part of SMUD’s wider effort to have 9 megawatts of energy storage in its service territory by the end of 2020. Truckee Donner Public Utility District improved its Reliable Public Power Provider (RP3®) designation from the American Public Power Association to the platinum level during 2018. During the next five years, Western Municipal Water District is investing $75 million in infrastructure projects, such as a new pump station and expansions at its Chino and Arlington desalters to deliver a local and reliable water supply to its service area. Yuba Water Agency has a new name, logo and brand to provide the nearly 60-year-old organization with a stronger relationship and connection to the people of Yuba County. Visit yubawater.com for more. FALL 2018 CALIFORNIA WATER & POWER 27

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What Load Profile Do You Want? Peaks and Valleys without Ground Source Heat Pumps - 17

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Or Utility Benefits • Reduction With Ground Source Heat Pumps in peak demand • Increased load predictability • BuildsValley winter Filling: baseload Load has been added to the “valleys” to gain off-peak electric • Converts customers to year-round electric load. This helps the utilities Load Resulting in increased and increases revenue. • Creates Factor multi-generational, long-term customers load predictability • Loop ownership offers the opportunity for increased revenue

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