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HomeMy WebLinkAbout4 Sierra Pacific Power supply Agenda Items # 4 & 5 Public Utility District Memorandum To: Board of Directors From: Stephen Hollabaugh Date: February 9, 2007 Subject: 4— Discussion of electric system transmission constraints 5- Discussion and consideration of 2008 power supply contract and options. Item 4: Sierra Pacific Power Company Transmission System Constraints. Randy Harris of Energy Source will discuss Sierra Pacific transmission capabilities and how it affects the District. Randy is one of the most knowable people concerning the Sierra Pacific transmission system. Randy has been working with the District concerning some possible renewable opportunities in Northern Nevada. Some of these opportunities may be discussed. Item 5: UAMPS Shaped Capacity and Energy contract. Doug Hunter of UAMPS will discuss the evolution of the Shaped Capacity and Energy contract. Doug Hunter is the General Manager of UAMPS. In order for the District to get the complete value, the District will need to join the "All-In-Pool" of UAMPS. Doug will explain the value of the All-In-Pool along with other power supply options which may include wind and natural gas that may meet the District needs. Recommendation: The only action contemplated may be the direction from the Board to join the UAMPS All-In-Pool. Attachment: Renewable Portfolio Standard, Feb.04 1 yY Public Utility District Minute Order February 4, 2004 MO 2004-10 CONSIDERATION OF ADOPTING A RENEWABLE PORTFOLIO STANDARD 7 Director Van Gundy moved and Director Aguera seconded, a motion to accept the Truckee Donner Public Utility District Renewable Portfolio Standard (RPS) as the District's policy (2002- S131078): qualifying RPS resources, RPS target, strategies for meeting RPS objectives and reporting RPS performance. ROLL CALL: All Directors, aye. SO MOVED. Post Office Box 309—11570 Donner Pass Road—Truckee, CA 96160 Phone 530 587-3896—Fax 530 587-1189 Renewable Portfolio Standard (RPS) Page 1 N DONNER Publ ic Utility District Truckee Donner PUD Renewable Portfolio Standard PURPOSE: TDPUD's policy regarding 2002 SB 1078—Renewable Portfolio Standard(RPS). BACKGROUND: State Senate Bill 1078(SB 1078)was signed into law on September 12,2002 and was effective January 1, 2003. The legislation modifies the California Public Utilities Code to include a specific renewable resource requirement for investor owned utilities (IOUs). The legislation 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 • Requirement that publicly owned utilities report annually to their customers the following o The amount of money spent on renewables from public benefit funds o The resource mix used to serve the customers (Truckee Donner Public Utility District already publishes a quarterly notice) • 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, TDPU'D'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)starts on January 1, 2005. This power is under a long term contract with the Department of Energy's Western Area Power Administration (WAPA). Much of this power is generated at Shasta, Folsom and New Melones Dams. None of these dams meet the CPUC's eligibility requirements for IOU's. However, due to the nature of the management of these facilities by the Federal Government for power,reclamation and environmental concerns, staff believes that a separation of large and small hydroelectric projects at a 30 MW level is arbitrary and ignores the unique nature of the resources provided by WAPA and the Department of Interior's Bureau of Renewable Portfolio Standard(RPS) Pagg 2 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. 3. TDPUD is currently participating in a State grant-funded evaluation of the potential of CA's public utilities using renewable energy resources in California. Our participation in this project is to assist in evaluating the feasibility of using biomass electric generation in Truckee. There will be a 15 KW biomass demonstration plant installed in Truckee in the Spring of 2004. There will also be a feasibility study conducted to determine the potential value and economics of siting a 3- 4 MW biomass plant in Truckee. POLICY: The renewable portfolio standard of the Truckee Donner PUD will be as follows: • Qualifying RPS resources are defined as non-fossil fueled electric generating resources,including all hydroelectric resources: o Geothermal including low-temperature(geothermal heat pumps) o Hydroelectric o Solar o Wind o Biomass and waste o Fuel cells • RPS Target: o At such time that projected resources do not exceed projected demand, TDPUD will strive to include qualifying resources to meet projected demand. o Any purchase or construction of qualifying resources will be accomplished primarily with accumulated public benefit funds. Due to the expected magnitude of incremental resource requirements it is highly unlikely that TDPUD can secure qualifying resources at reasonable rates(i.e. 100 kw of demand is a very small unit of delivery). There is a potential within NCPA or UAMPS that TDPUD will be able to obtain a percentage ownership in a qualifying facility but probably not at the time that the projected resources are required. • Renewable Portfolio Standard(RPS)Policy Page 3 • Strategies for meeting RPS objectives: o TDPUD has implemented solar PV and geothermal heat pump demonstration projects utilizing public benefit funds. Housing stock is expected to increase 25% in the next 10 years. Demonstration and production solar and geothermal projects installed at a number of new homes will provide RPS qualifying resources. o TDPUD organizes an annual tour of energy-smart solar homes which results in the installation in new small-scale renewable energy systems every year. o Public benefit funds, when available, will be used to implement the demonstration projects and may be used to supplement the production projects. • Reporting RPS performance o TDPUD will continue to report to its customers the annual power content label. o TDPUD will report the amount of public benefit funds expended for the development of qualifying RPS resources in conjunction with the annual power content label reporting TRUCKEE DONNER Public Utility District Memorandum To: Board of Directors Subject: Past agenda items for Renewable Energy Resources Date: February 9, 2007 The attached are: • Memorandum (11/14/03) for the November 19, 2003 board meeting when the first workshop was held for RPS. • Memorandum (11/30/04) for the February 4, 2004 board meeting proposing acceptance of the RIPS Agenda Item # DONNER Public Utility District M � r� o To: Board of Directors From: Stephen Hollabaugh Date: November 14, 2003 Subject: Discussion of Renewable Energy Resources Why this matter is before the Board — At the Board meeting of July 16,2003, Rolf Godon presented the Board during public input a petition and letter concerning "Renewable Energy Research and Production". The Board instructed staff to investigate renewable resourese and present it to the Board. History — Staff has been investigating new resources as they present themselves. In the past I referenced the possible Truckee Donner PUD Renewable Portfolio Standard. I will discuss the draft of this Standard for the District. Also UAMPS has a Wind project that is in a location that can be delivered to the District. I will discuss the District's possible interest in this project along with an update on our WAPA allocation to start in January 2005. New Information - Truckee Donner PUD Renewable Portfolio Standard The State Senate Bill 1078 (SB1078 State Senate Bill 1078 (SB1078) was signed into law on September 12, 2002 and was effective January 1, 2003. The legislation modifies the California Public Utilities Code to include a specific renewable resource requirement for investor owned utilities (IOUs). The legislation 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 • Requirement that publicly owned utilities report annually to their customers the following o The amount of money spent on renewables from public benefit funds o The resource mix used to serve the customers (Truckee Donner Public Utility District already publishes a quarterly notice) • 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 I have put together a draft Truckee Donner Public Utility District Renewable Portfolio Standard for the Board's review and possible acceptance. UAMPS Wind Project: UAMPS has a wind project located near Mona Substation in Utah near the Wyoming border. UAMPS is asking its members about interest in this project. The project consists of 83 windmills of 1.8MW each. The manufacturer of the wind units is GE and is one of the most efficient wind projects avalilable. PPM is building and marketing the project. An interest in the project would be a 20 year contract at about $48.11 per MWH. The District would have to add some transmission charges to delever this to Gonder Substation on the Sierra Pacific transmission system. UAMPS has transmission and could deliver this power to us. Research concerning Renewable Energy within the District- Research shows that it takes a lot of land and wind for a economic wind generation site and that none exist in the District's boundary. The District has been selected for a small biomass project funded by the CPUC. I have enclosed a number of documents from the consultant doing the studies on this project which the title of: Renewable Energy Research Program To Make Renewables Part of California's Affordable and Diverse Public Power System • Pre-Demonstration Summary Report • Biomass DG Operating and Economic Characteristics • Fabrication and Testing of 15KW Unit Characterization and Development Report Recommendation — Consider bringing the Truckee Donner PUD Renewable Portfolio Standard back as an action item for the Board's approval. Agenda Item # �� '� D 70 w w Public Memo To: Board of Directors From: Stephen Hollabaugh Date: January 30, 2004 Subject: Acceptance of TDPUD's Renewable Portfolio Standard Why this matter is before the Board — The District had a workshop item to discuss this topic at the November 19, 2003 Board meeting. At this time, staff is asking the Board to accept the attached Renewable Portfolio Standard as the District's policy. Only the Board can set policy. History — At the November 19`h meeting, the Board had a workshop in which a proposed Truckee Donner Public Utility District Renewable Portfolio Standard was discussed. At the t meeting, the Board asked that this be brought back for acceptance since it was just a workshop item November 19 . Truckee Donner PUD Renewable Portfolio Standard State Senate Bill 1078 (SB1078) was signed into law on September 12, 2002 and was effective January 1, 2003. The legislation modifies the California Public Utilities Code to include a specific renewable resource requirement for investor owned utilities (IOUs). The legislation 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 • Requirement that publicly owned utilities report annually to their customers the following: o The amount of money spent on renewables from public benefit funds. o The resource mix used to serve the customers (Truckee Donner Public Utility District already publishes a quarterly notice). • 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 New Information— I have put together the Truckee Donner Public Utility District Renewable Portfolio Standard which included any comments or suggestions from the November 19'h Board meeting for the Board's review and possible acceptance. (See attached) Recommendation— I recommend that the Board accept the Truckee Donner Public Utility District Renewable Portfolio Standard as the District's policy.