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HomeMy WebLinkAbout10 Energy Efficiency Targetsenda Item # 10 To: Board of Directors From: Lauren Schaake Date: February 01, 2017 Subject: Consideration of Adopting Energy Efficiency Targets to Meet the SB 1037/AB 2021 Requirement 1. WHY THIS MATTER IS BEFORE THE BOARD It is the responsibility of the Board to adopt formal energy efficiency targets per 3B1037/AB 2021. 2. HISTORY SB 1037 requires publicly -owned utilities (POUs) to invest in all cost-effective, reliable and feasible energy efficiency as the first source of power in their energy portfolio. California Assembly Bill 2021 restated that requirement and adds additional independent reporting requirements for POUs to "identify all potentially achievable cost-effective electricity efficiency savings and shall establish annual targets for energy efficiency savings and demand reduction for the next 10-year period". The Board adopted the first set of energy efficiency targets in 2007 and then every three years since then. The targets ranged from 1.1 % down to .67% of MWh sold per year. The District, as well as all participating California POU's, must now formally adopt their energy efficiency targets on a quadrennial basis. 3. NEW INFORMATION The District, through a joint project with Northern California Power Agency (NCPA), California Municipal Utilities Association (CMUA), and Southern California Public Power Agency (SCPPA), is in the process of updating 10-year energy efficiency targets through a member -wide study conducted by Navigant Consulting. Before the Board is the latest quadrennial update from the Navigant Consulting model. This updated model reflects the District's unique load -profile (weekend, holiday, and winter peaking), our customer base (predominately residential with the remainder being small business/commercial), the large number of 2nd homes, and changes in the regulatory environment that will diminish the significant impacts of the District's residential CFL & LED programs. An excerpt of the Navigant Consulting potential study results, by year, for the period covering 2018-2027 is in Attachment 1. A summation of the 10-year results is: Energy Savings: 6,820 MWh (from 2018 through 2027, ~0.45% MWh sold/year) Demand Savings: 2,380 MW (from 2018 through 2027) These targets are based on the District's documented energy saving results for the past but also acknowledges that, over a 10-year period, maintaining the District's energy savings AND cost-effectiveness will become increasingly difficult as the District moves past the 'low hanging fruit' and we start to saturate some programs. This trend of declining energy savings and increasing program costs over times has been well documented in California's electric utilities. The 0.45% per year target over 10 years, however, represents significant electric savings and puts the District in the top half of California utilities for setting energy savings targets. 4. FISCAL IMPACT The costs for the District's energy conservation programs are included in the approved FY17 budget and are projected to continue in future years. There is no direct fiscal impact associated with this action item. 5. RECOMMENDATION Adopt Truckee Donner Public Utility District's energy efficiency targets for the period 2018 through 2027 as energy Savings of6,820 MWh; and Demand Savings of 2,380 MW. Jeremy Popov Administrative Services Manager Michael D. Holley General Manager C N E v 3 a N O N m m 0 m v s v E 0 +j cn v �n m w W a o v � C t 0 > cn O1 E m 'Y L U tw i O H a II c N LO 00 00 M 0 to N I-- 0 o< N M N CO N N O ON N 00 q1t c7 Cfl d N N O Lf) LO Cfl N N LO O N � o LO dam' CO N N O N N N O 00 N N O N %�o CM N I` o LO cM CO L N N O 000 CD N N O (3) O') ti r CIOo C'7 CD N N O 00 O CO r CO o O0 CID N ti N O N cn O O N (� C C O N E C: "o Q� w o