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Home My WebLink About10 Purchase Power Load Agenda I ! (I` 0 WORKSHOP To: Board of Directors From: Stephen Hollabaugh Date: February 05, 2014 Subject: Discussion of 2013 Purchase Power Load, Resources, Peaks, and Comparison to 2013 Budget Forecast 1. WHY THIS MATTER IS BEFORE THE BOARD This workshop is to review the District's actual versus budgeted purchase power costs and energy consumption for 2013. 2. HISTORY On October 5, 2011 the workshop "FY12 and FY13 Budget: Purchase Power Plan" was presented to the Board. This workshop covered the following topics: Mission Statement and Objectives, Renewable Portfolio Standard Target, Conservation as First Resource, Diversified Power Supply Plan, Future Renewable Resources, Proposed Resources for 2013, Risk to Budget Analysis and 2013 Forecast Costs, The Purchase Power Plan 2013 Budget was approved by the Board on November 16, 2011. The 2013 Purchase Power Plan budgeted amounts, based on a forecasted energy purchase of 163,082 MWh, are shown in the following table: Cost Component Budget $ per MWh Total Energy Supply-Various $10,737,570 $65.84 Transmission Wheeling- SPPC $ 1,081,033 $ 6.63 Scheduling - NCPA $ 73,226 $ 0.45 Central Valley Project-WAPA $ -28,012 $-0.17 Totals $11,863,817 $72.75 Historical data for 2013 and prior years to 2005 is included for reference on Attachment A. 3. NEW INFORMATION Summary budgeted versus actual amounts for 2013 are shown in the following table: Description Budget Actual Total Energy Purchases $11,863,817 $11,647,321 Total Energy Consumption, MWh 163,082 158,149 Purchase Cost per MWh $72.75 $73.65 ® The total purchased power costs were 1.8% less than budgeted and total energy consumption was about 3.0% less than forecasted during 2013. The two major factors that affect the total purchased power cost are resource cost and energy consumption by our customers. While the forecasted energy consumption value of 163,082 MWh was close (within 2%) to the actual amount, the resource cost was much less than budgeted. All these factors helped to reduce the District's actual purchased energy cost to $73.65 per MWh, about 0.3% over budget. Energy costs and consumption by month are graphically depicted below. Budgeted versus actual power purchase cost for 2013 is shown in graph below: F Y 1 3 Pow e r Purchase Cost $14,0 00,0 0a $11,863,817 $11,647,321 $12,0 00,000 — ,-nsched u ling $1 0,0 u 0,0 0 0 T r a n s m I s s 1 o n $a,000,000 T o t a l Energy Supply $6,0 0 0,0 0 0 $4,0 0 0,0 0 0 $2,0 0 0,0 0 0 $0 B u d g e t A c t u a 1 -52,000,000 Budgeted versus actual monthly MWh consumption for 2013 is shown in graph below: 2013MonthiyEn erg y Consumption 20,000 MWh 18,000 16,000 BM M 14,000 w Budgeted h 12,000 10,000 8,000 EActual 6,000 4,000 2,000 0 JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC The Monthly Peak MW for 2008 through 2013 is shown in the graph below: Monthly Peak MW 2008,2009, 2010,2011,2012,2013 40.0 35.0 30.0 E 2013 Peak MW 25.0 N 2012 Peak MW 20.0 M 2011 Peak MW 15.0 IN 2010 Peak MW 10.0 M 2009 Peak MW 5.0 in 2008 Peak MW 0.0 JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCr NOV DEC The District experienced its peak load of 31.5 MW in December. The summer months have a constant load with a small peak in July. On December 7, 2011 the Board approved the Renewable Energy Resources Procurement Plan per Senate bill U2. This plan defines the minimum required percentage of renewables per compliance period based on total retail energy sales. Compliance periods and percent renewables are as follows: Period 1 - January 1, 2011 through December 31, 2013 - 20% Period 2 - January 1, 2014 through December 31, 2016 - 25% Period 3 - January 1, 2017 through December 31, 2020 - 33% Section 3201 (bb) of the CEC regulations define retail sales as: "Sale of electricity by a PUD to end-use-customers and their tenants measured in MWh. This does not include energy consumption by a POU, electricity used bV a POU for water pumping, or electricity produced for onsite consumption (self-generation)." Therefore the retail sales for this calculation is equal to 147389-8195-499=138,695 MWh The District's estimated renewable energy portfolio performance for 2013 is shown in the table below: Eligible Renewables (CPUC) MWh REC's % Sales Small Hydro 4,477 3.2% Landfill Gas 21,240 15.3% Wind 34,995 25.2% Solar 0 0.0% Totals 61,078 43.8 % 4. FISCAL IMPACT Detailed budgeted versus actual amounts for 2013 are shown in the following table: Power Purchases, MWh Budget Actual Total Energy Purchase, MWh 163,082 158,149 Percent Difference,Actual vs. Budget -3.02% Power Purchase Costs Budget Actual Total Energy Supply-UAMPS,WAPA, etc $10,737,570 $10,847,086 Transmission-NV Energy $1,081,033 $867,550 Scheduling-NCPA $73,226 $67,753 WAPA cost/(credit) ($28,012) ($141,713) NCPA Power Purchase $1,612 Misc Costs:WECC,WREGIS, etc. $5,033 Total Power Purchase Cost $ 11,863,817 $ 11,647,321 $Over/(Under) Budget $ (216,496) Percent Difference,Actual vs. Budget -1.82% Purchase Cost per MWh $72.75 $73.65 Percent Difference,Actual vs. Budget -0.29% Peak Load Information Budget Actual District Peak Load, MW 36 31 Percent Difference,Actual vs. Budget -12,62% 5. RECOMMENDATION Receive and comment on this report. 4VM Stephen Hollabaugh Michael D. Holley Assistant General Manager General Manager Attachment A Summary Historical Energy Usage Data 2005 through 2013 Energy Purchases - MWh Delivered to Transmission Total Bulk Energy Year Substations System Losses(1) Purchased 2013 154,280 3,870 158,149 2012 150,996 3,980 l J 154,976 2011 156,407 4,137 160,544 2010 154,483 4,011 158,494 2009 153,677 4,018 157,695 2008 156,113 4,076 160,189 2007 154,342 4,042 158,384 2006 153,210 4,018 157,228 2005 - 142,852 3,767 146,619 Actual vs. Budgeted Energy Purchases - MWh Year Actual Budget %Difference 2013 158,129 163,082 3.0% 2012 154,976 162,000 4.3% 2011 160,544 162,000 0.9% T 2010 158,494 160,000 0.9% 2009 157,695 163,220 3.4% 2008 160,189 161,604 0.9% 2007 158,384 156,963 -0.9% 2006 157,228 150,168 -43 2005 146,619 145,382 -0.9% Energy Sales to Customers - MWh Change from Previous Year Energy Sales, MWh Year, 2013 147,389 0.94% 2012 146,014 2.64% 2011 149,978 1.58% 2010 147,647 0.53% 2009 146,875 -0.96% - - 2008 148,305 0.83% 2007 147,091 1.96% 2006 144,269 5.82% 2005 136,339 ----- Distribution System Losses - MWh Delivered to Losses as a Year Losses(2) Substations %of Delivered to Subs 2013 6,891 154,280 4.5% 2012 4,981 150,996 3.3% 2011 6,429 156,407 4.1% 2010 6,836 154,483 4.4% 2009 6,802 153,677 4.4% 2008 7,808 156413 5.0% 2007 7,251 154,342 4.7% 2006 8,941 153,210 5.8% 2005 6,513 142,852 4.6% Notes: 1 Transmission System Losses: This is the amount of MWh that NVEnergy requires the District to pay by tariff as a loss. This is defined as a fixed percentage of MWh Delivered to the District 2 Distribution System Losses: This is the difference between energy delivered to our substations and what is sold to District customers. Historically this value has been about 4%.