HomeMy WebLinkAbout10 FY18 and FY 19 Budgets purchase power planAgenda
BUDGET
To: Board of Directors
From: Stephen Hollabaugh
Date: October 04, 2017
Subject: FY18 and FY19 Budget: Purchase Power Plan
Item # 10
1. WHY THIS MATTER IS BEFORE THE BOARD
This item is part of the process for preparation of the FY18 & FY19 budget.
2. HISTORY
In 2008 and 2009, the District started a diverse purchase power portfolio that now
includes many different resources and has the goal of meeting the Renewable
Portfolio Standard with conservation as a first resource. In 2010 and 2011, additional
goals were to provide an adequate, reliable, and high quality electric supply to meet
the current and future needs of the District.
Title 3, Section 3.02.010 of the District Code states, the General Manager shall submit
to the Board of Directors a two year draft budget. The Purchase Power Plan is a part
of the FY18 & FY19 draft budget.
3. NEW INFORMATION
The 2018 and 2019 Purchase Power Plan continues with the goals of the 2016 and
2017 Plan. The District will maintain a more diversified purchase power portfolio that
includes many different resources and has the goals of meeting the Renewable
Portfolio Standard. The District adopted its "Procurement Plan" to implement SIB350,
50% RPS by 2030.
The 2019 Purchase Power Plan projects a similar load compared to 2018 with energy
conservation and energy efficiency measures accounting for 1 % to 3% of the load.
Greater conservation has, and will continue to reduce future market purchases. The
budgeted load in MWh is shown below:
Year Budgeted MWh
2016 163,778
2017 163,421
2018 1653095
2019 166,910
The Purchase Power Plan resources including graphs are included as Attachment 1.
The resource mix shown is as follows:
FY18
Resource Type
% Non-Renewables
% Renewables
Nebo — Natural Gas
5.9%
5 Year Market Purchase
24.8%
UAMPS Pool
11.8%
Veyo Heat Recovery (carbon free)
6.9%
Wind Pleasant Valley
0.4%
Small Hydro — Spampede Dam
7.1%
Wind — Horse Butte
27.1%
Land fill gas- Trans Jordan
14.7%
Small Hydro - TOD
1.3%
TOTALS
49.4%
50.6%
FY19
Resource Type
%Non- Renewables
%Renewables
Nebo — Natural Gas
5.9%
5 Year Market Purchase
24.5%
UAMPS Pool
12.6%
Veyo Heat Recovery (carbon free)
6.8%
Wind Pleasant Valley
0.3%
Small Hydro — Spampede Dam
7.1%
Wind — Horse Butte
26.8%
Land fill gas- Trans Jordan
14.6%
Small Hydro - TCID
1.4%
TOTALS
49.8%
50.2%
Possible Future Resources:
The District's 5-Year market purchase ended in April of 2017, the District has replaced
a portion of this resource with carbon -free resources. The Veyo heat recovery
generation from Veyo natural gas compressor station came on line in May 2016. The
District has invested in about 1.7 MW of this carbon -free resource. A carbon -free
resource will enhance our Cap and Trade allocation. Other possible future resources
(past 2019) include utility scale solar, heat recovery and small modular reactors to
name a few.
Change in RPS Calculation per CEC:
The percentage shown in the resource mix table and graphs are based on the entire
amount of resource purchased. The CEC definition of RPS uses a different
denominator that will increase our RPS however the District does not receive 100% of
the Stampede Dam REC's that will lower the percent RPS.
California Air Resources Board (GARB) Cap and Trade
The CARB has started their Cap and Trade auctions in 2013. Section 95892(d)(3) of
the regulation states the following:
'Auction proceeds and allowance value obtained by the electric distribution utility shall
be used exclusively for the benefit of the retail ratepayers of each distribution utility,
consistent with the goals of A1332, and may not be used for the benefit of entities or
persons other than such ratepayers."
Board decided to use the auction proceeds to offset the price of renewable therefore
meeting the goals of AB32.
Four auctions have been held in 2017, below are the results:
Settlement Price ($/Allowance)
TDPUD Revenue from Sale of Allowances
$13.57
(Auction 10,
2017)
$123,623
$13.80
(Auction 11,
2017)
$398,682
$14.75
(Auction 12,
2017)
$295,000
$13.57
2017
(Auction 13,
2017) Nov
$291,103, Estimated
(To be
used in 2018)
Total $
$1,108,408
In FY18, $1,108,408 has been budgeted as revenue to help pay for renewable
resources and in FY19. ail .126,330 has been budaeted in the same manner.
PURCHASE POWER PLAN EXPENDITURES DETAIL
MO BudW
FY17 to FY18
BUDGET
Budget
Budget
Purchased Power and Resource Costs
FY17
FY18
CHANGE
Total Energy Supply - Various
$11,6811375
$11,855,109
$173,734
Transmission - NVEnergy
$927,156
$990,057
$62,901
Total Bulk Power Costs
$1296089531
$1298457166
$236,635
1.8%
Total Annual MNh
163,421
165,095
11674
1.0%
Total Delivered Cost $/MWh
$77.15
$77.80
$0.65
0.8%
PURCHASE POWER PLAN EXPENDITURES DETAIL
FY18 to FY19
BUDGET
Budget
Budget
Purchased Power and Resource Costs
2018
2019
CHANGE
Total Energy Supply - Various
$1158552109
$113947,467
$92,358
Transmission - NVEnergy
$9905057
$9903057
$0
Total Bulk Power Costs
$1298455166
$12,9379524
$92,358
0.7%
Total Annual MWh
165,095
166,910
12815
1.1%
Total Delivered Cost $/MWh
$77.80
$77.51
-$0.29
-0.4%
4. FISCAL IMPACT
There is no direct fiscal impact at this time. The final Purchase Power Plan will
become part of the draft budget for FY18 & FY19.
5. RECOMMENDATION
Receive this report and provide comments to staff.
,► f
Stephen Hollabaugh
Assistant General Manager
Michael D. Holley
General Manager
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