L ongmont P ower & C ommunications H o n o r i n g a C e n t u ry o f P u b l i c P ow e r

Report to the Community for 2011

Providing reliable, low-cost electricity for 100 years

www.ci.longmont.co.us/lpc

2011 marked the final year in Longmont Power &

A commitment to enhancing the lives of our customers is part of LPCs roots. During its first months of operation, Longmonts municipal utility increased generation and extended the times of day that customers received power. This enabled residents to run electric washing machines and stoves, activities that were previously restricted due to the limited power available from the former electric provider. In 2011, LPC demonstrated the same commitment to Longmont as it did 100 years ago. Customers received highly reliable electricity at some of the lowest rates in Colorado, had access to a variety of energy efficiency programs, and when surveyed, responded with a 97% overall satisfaction rating. LPC also introduced a fleet of environmentally friendly hybrid utility service vehicles that save on fuel costs and run more quietly.

Communications (LPC) first century of service. As we reached this milestone, LPC continued the legacy of providing exceptional value and outstanding benefit to the community.
The passage of ballot question 2A in November restored the communitys right to use City-owned infrastructure to provide telecommunications services to residences and businesses. Since that time, LPC has been exploring a range of options to leverage these existing resources in an ongoing effort to enhance connectivity throughout the City. Through continued community support, LPCs legacy of responding to customer needs is poised to continue. We now have the opportunity to build a foundation for technology-based innovation that will serve Longmonts residents and allow its businesses to be strong and globally competitive into the future.

Load growth
200 150

Megawatts

100

50
2002 2005 2003 2008 2009 2006 2004 2007 2010 2011

Kilowatt hours in millions

LPC honored for outstanding performance

LPC has a history of award winning safety performance. As of December 31, 2011, LPC logged more than two-million consecutive worker hours without a lost-time accident. Our safety practices for staff include detailed apprenticeship programs and mandated training hours. This work is paired with a commitment to educate the public on safety practices that prevent accidents and save lives. In 2011, LPC also retained its RP3 designation which recognizes outstanding utility performance in the areas of reliability, training, safety, and system improvements. LPC was a three time recipient of this award which highlights our ability to deliver power to customers with minimum interruptions and faster restoration times if outages do occur.

Maximum demand
1000 800 600 400 200 0

2002

2005

2003

2008

2006

2009

2004

2007

2010

Annual energy consumption

The overall use of electric power increased slightly in 2011. During the past 10 years, the Citys annual energy consumption increased by 10% and the maximum demand (the highest amount of electricity required to meet customer needs during a one-hour period) increased by 15%, while the number of LPC customers increased by 14%. 3

2011

Finances
LPC had total revenues of $55 million in 2011, 3% under budget and an increase of 8% from 2010. Total expenses were $55.5 million, 4% under budget and 10% greater than 2010. Purchased power expense was 72 of each Electric Fund expense dollar. Although purchased power from Platte River Power Authority was LPCs largest expense, their rates are relatively low compared to other wholesale power providers. These low costs from Platte River allow LPC to maintain lower rates for its residential, commercial, and industrial customers. This is a tremendous benefit which has been recognized for attracting businesses and residents to Longmont. In 2011, franchise fee payments and transfers to the City General Fund were 11 combined.
72 - Purchased electric power 11 - Distribution system 8 - Franchise Fee to General Fund 3 - Transfer to General Fund 4 - Administrative & other costs 2 - Capital Improvements

Expenses per dollar

Telecommunications
Longmonts 55-mile telecommunications infrastructure system includes an 18 mile backbone loop and more than 4,300 miles of fiber optics throughout the City. In 2011, LPC managed and leased collocation facilities along with the fiber optics for customers in the medical and education communities. Novembers citizen vote in support of ballot question 2A restored Longmonts rights to provide a full range of telecommunications services to the community. Following this vote, LPC is exploring new opportunities to use this infrastructure for the benefit of businesses and residents.

2011 at
Service Area
49 square miles 29.5 Within City Limits 19.5 Outside City Limits
(Hygiene, Lyons and Apple Valley)

Customers
Total 36,809 34,173 Residential 2,624 Commercial 12 Industrial

Energy & Demand

825,550,000 kWh 131,042 kW 175,105 kW Energy Consumed Peak Demand, Winter Peak Demand, Summer

LPC rates among the lowest

Residents and businesses have come to depend on LPCs low rates. In 2011, residential, commercial, and industrial customers in Longmont paid among the three lowest electric rates of all surveyed Colorado utilities.
12 10 8 6

Capital improvement
The Capital Improvement Program (CIP) is an important tool for planning, building, and enhancing the electric system infrastructure. It allows LPC to continue to respond to community requests for service and deliver the highly reliable electricity weve been known for since we were founded. In 2011, LPC spent $937,000 for CIP projects including: 12 street light area improvements and additions were completed in residential areas and along roadways. Cost: $112,000 19 system operations and reliability enhancements were completed including electric cable change outs, system inspections, and pole maintenance projects. Cost: $123,000 Numerous electric service installations and upgrades were completed for LPC customers. Cost: $465,000

Cents per Kilowatt Hour

Colorado

Colorado

Colorado

4 2

Colorado

LPC

LPC

LPC

Residential

Large Small Commercial Commercial

Industrial

Average electrical rates

Data based on Colorado Association of Municipal Utilities, January 2011 survey.

Did you know?

LPC rates are also ranked among the lowest nationwide; in fact, LPC residential rates are so low that they would need to increase by 57% to meet the nationwide average.*
* U.S. Energy Information Administration Report, Average Retail Price of Electricity, Electric Power Monthly with preliminary data for 2011

a Glance
Distribution System
594 Line Miles 445 Miles Underground 46 Main Distribution Circuits 6 Substations $55.5 million Total Expenses

LPC

Financial Data
$55.0 million Revenues $6.5 million Reserves $0 Debt

Energy efficiency programs

In 2011, Longmont residents and businesses reduced electric consumption by approximately 6.6 million kWh as a result of energy efficiency programs. This electric savings is enough to provide power to 735 average Longmont homes for a year. Highlights for 2011 energy efficiency programs include: 7,304 specialty compact fluorescent light (CFL) bulbs and 138 light emitting diode (LED) bulbs were sold at a discount through local retailers. Estimated energy savings: 105,875 kWh per year 684 customers received clothes washer and dishwasher rebates. Estimated energy savings: 116,242 kWh per year Volunteers installed free energy- and water-saving products in 329 Longmont homes as part of the Neighborhood Efficiency Sweeps. Estimated energy savings: 208,851 kWh per year Longmont businesses that participated in energy efficiency programs reduced their electric demand by 738 kW. Estimated energy savings: 3.3 million kWh per year City facility lighting improvements reduced electric demand by 45.2 kW. Estimated energy savings: 101,000 kWh per year Four local nonprofit agencies were awarded over $50,000 in federal grant funds to make their buildings more energy efficient.

Longmonts municipal buildings reduced 2011 City utility costs by more than $170,000 as a result of energy savings projects implemented in 2009-10. Services saved 2.5 million kWh and 94,800 therms of natural gas. Services also reduced demand by 1,683 kW.

Throughout 2011, LPC implemented the EnergySmart service to help homes and businesses become more comfortable and energy efficient. The service is a collaborative partnership with Boulder County and is funded by a $25 million federal grant from the Department of Energy. 187 residences and 323 businesses participated in these services in 2011. Energy savings: 84,610 kWh (residential) and 104,000 kWh (commercial)

Renewable energy mix

In addition to 26.0% hydroelectric power, all LPC customers receive 3%, or 24.8 million kWh, of their electricity from other renewable sources, per City Council policy. In addition, approximately 600 customers purchased 5.7 million kWh of renewable energy through the Green-e Energy Certified* voluntary renewable energy program. Electricity purchased in the program is 100% renewable.

LPCs Centennial
As LPC completes its first century, we have taken time to reflect on our history in the community. LPCs film, A Century of Service, documents this story. To see the video, scan here or visit ci.longmont.co.us/lpc.

*Green-e certified energy meets specific environmental and consumer protection standards established by the Center for Resource Solutions.

Power resources
When the utility was founded in 1912, its first power source was a 500 kW hydroelectric plant located in Lyons, Colorado. The plant continues to operate today, providing 0.5% of the Citys electric needs. It is currently on the National Register of Historic Places. Coal - 69.1% Since 1973, Platte River Power Authority, Wind - 3.1% owned by the municipalities of Longmont, Estes Park, Fort Collins and Loveland, has provided reliable, low-cost, and Hydropower - 26.0%* environmentally responsible electricity. In 2011, the cost of its power allowed us Natural gas - 0.4% to maintain some of the lowest rates in the Other - 1.4% state, while tailoring our services directly to the needs of the community. Longmonts mayor Energy resources and LPCs director represent the City on Platte Rivers *unusual year due to high water availability Board of Directors. In 2011, PRPA had generation capacity of 931,000 Want to learn more kW, and LPC received 29.1% of its electricity from about LPCs hydroelectric non-fossil fuel sources including hydropower and plant? Scan here or visit wind. Generation resources included: ci.longmont.co.us/lpc to Rawhide Energy Station: 280,000 kW coal and view our video. 388,000 kW natural gas Western Area Power Administration: 90,000 kW hydropower Yampa Project: 155,000 kW coal Silver Sage Windpower Project: 12,000 kW wind Medicine Bow Windpower Project: 5,800 kW wind

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A Century of Service in Longmont