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HomeMy WebLinkAbout9 Mission Statement revised Agenda Item # 9 PublicTRUCKEE ,, . Workshop To: Board of Directors From: Peter Holzmeister Date: February 16, 2007 Subject: Draft Mission Statement revision Why this matter is before the Board: This matter involves review and possible amendment of the District's Mission Statement, as suggested at recent Board meetings, to set a foundation for active pursuit of renewable energy sources and conservation programs. History: The Board of Directors adopted a revised Mission Statement several months ago as a result of values developed at a strategic planning workshop. The mission statement makes clear reference to the District's commitment to conservation, and environmental concern, but it may not have gone far enough is specifying preferred programs. During recent public meetings that discussed power supply options, many citizens of the community call attention to the need for the District to be far more proactive in securing a power supply mix that includes a significant portion of renewable power. It was suggested at that time, and several times since those meetings, that the District's Mission Statement should be revisited. New information: I took an initial stab at drafting amendments to the Mission Statement to address the concerns voiced. A copy of the suggested amendments is attached. These are just suggestions and review by others can certainly improve this draft. Recommendation: I recommend that the Board and public discuss the Mission Statement and develop needed revisions. F t 5 3 5. Manage the District is an environmentally sound manner District will seek power supply from a resource mix that satisfies its Renewable Portfolio Standard District will have a program of water and electric power conservation District will support a program of distributed generation within its service Area District will maintain a program of energy and water use efficiency District will conduct its business in an environmentally lawful manner District will seek to minimize any negative impact of its operations on the environment Material in italics is proposed new language . . i�u I n� I ER I Public Utility District The Mission of Truckee Donner Public Utility District is to provide adequate, reliable and high quality water and electrical power services, and to manage District resources in an open, responsible, environmentally sound manner at the lowest practical cost. Objectives: 1. Provide an adequate, reliable and high quality water supply and distribution system to meet current and future needs. 2. Provide an adequate, reliable and high quality electric supply and distribution system to meet current and future needs. 3. Manage the District in an open manner. 4. Manage the District in a responsible manner. 5. Manage the District in an environmentally sound manner 6. Manage the District in an effective, efficient and fiscally responsible manner. Goals: 1. Provide an adequate reliable and high quality water supply and distribution system to meet current and future needs. 1.1 Maintain and implement a current Urban Water Management Plan which includes current and future projections of water quality, demand and supply. 1.2 Maintain and implement a current Water Master Plan, including the required facilities to meet current and future demand and supply. 1.3 Secure the necessary water rights and other legally required documentation. 1.4 Provide effective and efficient maintenance and replacement programs 1.5 Provide an effective and efficient operations program 2. Provide an adequate reliable and high quality electric supply and distribution system to meet current and future needs. 2.1 Maintain and implement a long-term energy and load forecast. 2.2 Maintain and implement an Electric System Master Plan, including the required facilities to meet the current and future demand and reliable supply. 2.3 Provide effective and efficient maintenance and replacement programs. 2.4 Provide an effective, efficient and safe operations program 2.5 Procure and contract for low cost electric power supplies to reliably meet current and future loads. 3. Manage the District in an open manner. 3.1 Conduct the District's business in a legal, open, transparent manner 3.2 Implement a proactive public outreach program 3.3 Promote communication and cooperation with other public and private agencies. 4. Manage the District in a responsible manner. 4.1 District will conduct its business in a lawful and ethical way 4.2 District will develop and implement high standards of customer service 4.3 District will develop and implement high operational standards, procedures and codes of conduct. 5. Manage the District in an environmentally sound manner 5.1 District will conduct its business in an environmentally lawful manner 5.2 District will maintain a program of energy and water use efficiency. 5.3 District will seek to minimize any negative impact of its operations on the environment. 6. Manage the District in an effective, efficient and fiscally responsible manner. 6.1 District will utilize modern, cost effective work methods and equipment 6.2 District will employ a qualified and productive workforce. 6.3 District will provide work conditions and procedures that encourage employee growth, productivity and retention 6.4 District will conduct an active cost control program 6.5 Review and implement a Financial Goals policy to achieve a stable financial condition 6.6 Develop appropriate financial procedures to assure responsible financial management Truckee Donner Public Utility District - Renewable Portfolio Standard (RPS) Page 1 DistrictPublic Utility Truckee Donner PUD Renewable Portfolio Standard PURPOSE: Truckee Donner Public Utility District's policy regarding SB 1078—Renewable Portfolio Standard(RPS). This RPS will replace and update the RPS approved by the Board in 2003. BACKGROUND: State Senate Bill 1078 (SB 1078) was signed into law on September 12, 2002 and was effective January 1, 2003. The SB1078 legislation modifies the California Public Utilities Code to include a specific renewable resource requirement for investor owned utilities (IOUs). SB1078 required IOU's to maintain a minimum of 20% of their power from eligible renewable resources by 2017. SB 107 (Simitan) was passed in 2006 and accelerates the IOU target to 20% by 2010.The legislation (SB 1078) also includes provisions that apply to publicly owned utilities. These provisions would include: • Requirement that the governing body implement and enforce a renewable portfolio standard to encourage renewable resources • Each public utility governing board must define the terms of its RPS. The terms would include: o What qualifies as a renewable resource (i.e. whether or not to count large hydroelectric projects (in excess of 30MW) o The percentage of the total energy resources that are to be renewable o The time frame in which to meet the"goal"of the defined standard Discussion points: 1. Although excluded for the purposes of the IOU's requirements under SB 1078, TDPUD's future share in"large" hydroelectric projects is a valuable and critical component of the energy needs of the community. TDPUD's allocation of the Western Area Power Administration(WAPA) started on January 1, 2005. This power is under a long term contract with the Department of Energy's Western Area Power Administration (WAPA). Truckee Donner Public Utility District believes that a separation of large and small hydroelectric projects at a 30MW level is arbitrary and ignores the unique nature of the resources provided by WAPA and the Department of Interior's Bureau of Reclamation. Truckee Donner Public Utility District will include all hydroelectric regardless of size and location as meeting the District's renewable portfolio standard. 2. The District's location in the Sierra Pacific Power transmission control area differs from all of the other publically-owned utilities in California. TDPUD is a transmission dependent utility (TDU) electrically internal to Sierra Pacific Power's control area. The interconnection points to Sierra Pacific Power's control area are Summit Intertie(to CAISO),Alturas Line (to near COB),Gonder Substation near Utah (this is the current location of our existing contract deliveries and includes the Pacific Corp and LADWP control areas), and Midpoint Substation (to Idaho Power). This transmission configuration must be taken into account when trying to identify future renewable resources. Truckee Donner Public Utility District - Renewable Portfolio Standard (RPS) Page 2 POLICY: Truckee Donner Public Utility District RPS Obiectives • Meet the intent of SB 1078 to encourage renewable resources. • Maintain reliable overall energy supply portfolio. • Minimize adverse impact of acquiring new renewable energy resources on customer electric rates. Truckee Donner Public Utility District Electric Oualified RPS Resources • Renewable resources are defined as non-fossil fueled electric generating resources, including hydroelectric. These would include but may not be limited to any resource that meets the definition of "Eligible renewables" pursuant to section 398.4(h)(1) of the California SB 1305, which sets forth the requirements for power content labels: o Geothermal (including low-temperature geothermal heat pumps) o Hydroelectric o Solar o Wind o Biomass and waste o Fuel cells RPS Target: • At such time that projected resources do not exceed projected demand, TDPUD will strive to include qualifying resources to meet projected demand. • Truckee Donner Public Utility District resource mix will have a minimum of 21% of renewable resources by 2010. Renewable resources are defined as non-fossil fueled electric generating resources, including hydroelectric. Strategies for meeting RPS objectives: • Public benefit funds may be used to implement projects and may be used to supplement the production projects. • TDPUD's allocation of the Western Area Power Administration (WAPA) started on January 1, 2005 is a non-fossil fuel resource will be included in the RPS objective. TDPUD will strive to acquire small hydro electric from WAPA within the Sierra Pacific control area. • In the future, TDPUD may contract for geothermal generation in Northern Nevada and Wind generation backed by Natural Gas. Ongoing Review of Truckee Donner Public Utility District RPS • An ongoing five-year review standard of the RPS will address changes in the Truckee Donner Public Utility District power portfolio including market power purchases, entitlement shares of projects and potential changes in the renewable energy technologies.