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HomeMy WebLinkAbout14-Discussion of 2014 Purchase Power Load,Resources,Peaks & Comparisons to 2014 Budget ForecastAgenda Item # 14 To: Board %J Directors From: Stephen Hollabaugh Date: February 11, 2015 Subject: Discussion of 2014 Purchase Power Load, Resources, Peaks, and Comparison to 2014 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 2014. 2. HISTORY On September 18, 2013 the workshop "FY14 and FY15 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, CARB Cap and Trade, Proposed Resources for 2014 & 2015, Risk to Budget Analysis and 2014 & 2015 Forecast Costs, The Purchase Power Plan 2014 and 2015 Budget was approved by the Board on November 20, 2013. The 2014 Purchase Power Plan budgeted amounts, based on a forecasted energy purchase of 164,713 MWh, are shown in the following table: Cost Component Budget $per MWh Total Energy Supply -Various $1111913445 $67.95 Transmission Wheeling - SPPC $ 17204,628 $ 7.31 Scheduling - NCPA Central Valley Project - WAPA Totals $ 75,423 $ 0.46 $-281012 $ -0.17 $125443,484 $75.55 Historical data for 2014 and prior years to 2005 is included for reference on Attachment A. 3. NEW INFORMATION Summary budgeted versus actual amounts for 2014 are shown in the following table: Description Budget Actual Total Energy Purchases $12,443,484 $11;552,145 Total Energy Consumption, MWh 164,713 158,245 Purchase Cost per MWh $75.55 $73.00 • The total purchased power costs were 7.2% less than budgeted and total energy consumption was about 3.9% less than forecasted during 2014. The two major factors that affect the total purchased power cost are resource cost and energy consumption by our customers. All these factors helped to reduce the District's actual purchased energy cost to $73.00 per MWh, about 3.4% under budget. Energy costs and consumption by month are graphically depicted below. Budaeted versus actual cower purchase cost for 2014 is shown in graph below: FY14 Power Purchase Cost $14,000,OOD $12,000,ODO $10,000,000 $s,00O,000 $6,000,000 �4,000,oa0 �z,000,oa0 $o -�z,000,Doo Scheduling � WAPA cost/credit) � Transmission � Total Energy Supply Budgeted versus actual monthly MWh consumption for 2014 is shown in graph below: - • MWh .... :... ... I E Budgeted .... I I , I , .... I , ... JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC I , I , The Monthly Peak MW for 2008 through 2014 is shown in the graph below: Monthly Peak MW 2008 thru 2014 40.0 35,0 MO 25.0 20.0 15.0 10.0 5.0 0.0 !AN FEB MAR APR MAY TUNE lULY AUG SEP� OCf NOV DEC 2014 Peak MW ■ 2013 Peak MW ■ 2012 Peak MW 2011 Peak MW ■ 2010 Peak MW ■ 2009 Peak MW 2008 Peak MW The District experienced its 2014 peak load of 36.1 MW in December. The summer months have a constant load with a small peak in July. History of Actual vs. Budget vs. Sales (MWh) Total Bulk Power Actual vs Budget vs Sales MWh 170,000 160, 000 150,000 --�—Actual MWh �E9udget MWh Salves MWh 120, 000 Annual Graph of Resources used for 2014 inspecified Pool 44% I�G Resources (MWh) by Year 2014 — 2025 1ao,aoo 160,000 140,OCC 1zo,aco 100,000 60,000 40,000 zo,000 0 Resources (MWh) By Year 2014 - 2025 with Kern River Waste Heat 2017 & 2017-2022 Market Purchase \I ,yo do ,yo ,yo ,vo do ,yo ,yo ,�o do ,yo do ■ Natural Gas Small Hydro 6% ■ Unspecified Landfill Gas pool 15% Small Hydro Wind 27% ■ Landfill Gas ■ Wind Open Position -DAMPS Pool /Mkt Kem River Waste Heat 2017 u Horse Butte Wind - Wind Payson - Natural Gas ■ Pleasant Valley - Wind ■ Fallon Exchange for Stampede ■ Stampede -Small Hydro Trans Jordan - Land Fill Gas - Five-year Market 2017-22 (New) ■ Five-year Market 2012-17 (Exist) 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 by a POU for water pumping or electricity produced for onsite consumption (self -generation)." Therefore the retail sales for this calculation is equal to 1421584-71637490=1345457 MWh The District's estimated renewable energy portfolio performance for 2014 is shown in the table below: Eliaible Renewables (CPUC Small Hydro Landfill Gas Wind Solar Totals MWh REC's 3,000 23,326 43,753 0 70,079 Sales 2.2% 17.3% 32.4% 0.0% 5109 % 4. FISCAL IMPACT Detailed budgeted versus actual amounts for 2014 are shown in the following table: Power Purchases, MWh Total Energy Purchase, MWh Percent Difference, Actual vs. Budget Percent Difference, Actual vs. Budget Budget 164,713 Actual 158,245 -3.9% Power Purchase Costs Budget Actual Total Energy Supply - UAMPS, WAPA, etc $11,191,445 $10,941,923 Transmission - NV Energy Scheduling - NCPA WAPA cost/(credit) NCPA Power Purchase Misc Costs: WECC, WREGIS, etc. Total Power Purchase Cost $ Over/(Under) Budget Percent Difference, Actual vs. Budget Purchase Cost per MWh Percent Difference, Actual vs. Budget $1,204,628 $75,423 ($282012) $ 12,443,484 $75.55 $535,631 $33,766 ($7,642) $0 $48,468 $ 11, 552,145 $ (891,339) -7.2% $73.00 -3.4% Peak Load Information Budget Actual District Peak Load, MW 36.0 36.1 Percent Difference, Actual vs. Budget 5. RECOMMENDATION Receive and comment on this report. Stephen Hollabaugh Michael D. Holley Assistant General Manager General Manager 0%