HomeMy WebLinkAbout9 Mission Statement revised Agenda Item # 9
PublicTRUCKEE
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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.
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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
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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.