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Home My WebLink About13 2017 Purchase Power Load Budget ForecastAgenda Item To: Board of Directors From: Stephen Hollabaugh Date: March 7, 2018 #13 Subject: Discussion of 2017 Purchase Power Load, Resources, Peaks, and Comparison to 2017 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 2017. 2. HISTORY On September 16, 2015, the workshop "FY16 and FY17 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 2016 & 2017, Risk to Budget Analysis, and 2016 & 2017 Forecast Costs. The Purchase Power Plan 2016 and 2017 Budget was approved by the Board on November 18, 2015. The 2017 Purchase Power Plan budgeted amounts, based on a forecasted energy purchase of 163,421 MWh, are shown in the following table: Cost Component FY17 Budget $per MWh Total Energy Supply -Various $11,681,375 $71.48 Transmission Wheelinq - SPPC $ 927,156 $ 5.67 Totals $12,6089531 $77.15 3. NEW INFORMATION Summary budgeted versus actual amounts for FY17 are shown in the following table: Description FY17 Actual Budget Total Energy Purchases $12,6081531 $11,504,139 Total Energy Consumption, MWh 163,421 1647324 Purchase Cost per MWh $77.15 $70.01 • The total purchased power costs were 8.8% less than budgeted and total energy consumption was about 0.6% more than forecasted during 2017. 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 $70.01 per MWh, about 9.3% under budget. Energy costs and consumption by month are graphically depicted below. Budaeted versus actual $13,000,000 $12,000,000 $11,000,000 $10,000,000 $9,000,000 $8,000,000 $�,000,000 $6,000,000 $5,000,000 r aurchase cost for 2017 is shown in araah below: Ff I Power Purchase Cost Budget Actual 5C COStS: nsmission ;al Energy Supply Budgeted versus actual monthly MWh consumption for 2017 is shown in graph below: 17 f1lonthly Energy. • • 000 000 16,000 ' Budgeted 000 1 81000 1 0 Actual 61000 1 000 000 ,I��i� SEPTJAN MAR MAY JULY • The Monthly Peak MW for 2008 through 2017 is shown in the graph below: Monthly Peak MW 2008 thru 2017 40.0 35.0 - 2017 Peak MW 30.0 _ _ _ 2016 Peak MW 2015 Peak MW 25.0 - - - Ij J ■2014Peak MW { 20.0 'i — — — ! — — ',� '� — — — — —`f — — - r 2013 Peak MW r' 15.0 — — — — — 0 2012 Peak MW I 2011 Peak MW i _ 10.0 — — ■2010Peak MW 5.0 1 ' — i ■ 2009 Peak MW I a 0.0 { j !1i UI 2008Peak MW JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC The District experienced its 2017 peak load of 33.3 MW in January. The summer months have a constant load with a small peak in July. History of Actual vs. Budget vs. Sales (MWh) Total Bulk Power 170,000 165,000 160,000 155,000 L m 150,000 s 145,000 140,000 135,000 130,000 125,000 120,000 ,yo ,yo ,yo ,yo ,yo ,yo do ,yo ,yo ,yo ,yo ,yo do ,yo ,yo ,yo —•—Actual MWh Budget MWh o Sales MWh Annual Graph of Resources used for 201 t 2017 RESOURCE MIX Carbon Free Resources Unspecified Pool 67% 26% Natural Gas 7% Resources (MWh) by Year 2014 — 2030 Heat Recovery 6% qwSmall Hydro 17% ■ Natural Gas Landfill Gas ■ Unspecified Pool 15% Heat Recovery ■ Small Hydro Wind a Landfill Gas 29% Wind Resources (MWh) By Year 2014 - 2030 200,000 180,000 2016 2017 160,000 Open Position-UAMPS Pool / Mkt rj Veyo Heat Recovery 2017 140,000 Horse Butte Wind - Wind 120,000 Nebo Power Plant - Natural Gas 100,000 s Pleasant Valley - Wind ■ Fallon Exchange for Stampede 80,000 Stampede -Small Hydro 60,000 - ■ Trans Jordan - Land Fill Gas ■ TOD Small Hydro 40,000 Five-year Market 2017-22 (New) 20,000 Five-year Market 2012-17 (Exist) 0 -- - - , On December 7, 2011, the Board approved the Renewable Energy Resources Procurement Plan per Senate bill 1x2. 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-qeneration)." Therefore the retail sales for this calculation is equal to 156,562 - 6,863 - 492=149,207 MWh The District's estimated renewable energy portfolio performance for 2017 is shown in the table below: Eligible Renewables (CPUC) Small Hydro MWh REC's 6,607 Sales Landfill Gas 25,079 16.8% Wind Heat Recovery (w/o REC's) Unbundled REC's(Small hydro at Heat Recovery) Additional Unbundled REC's Totals 461413 31.1 % 19,559 13.1 65.4% The Veyo (heat recovery) and TCID (small hydro) projects do not come with REC's. Since these are carbon free resources, the District purchased 19,559 REC's to try to cover these resources. These resources actually generated 22,155 MWh in 2017. The District was able to also acquire at a very low price an additional 20,000 REC's from the Pleasant Valley Wind project. The table below shows the total 2017 REC's. Eligible Renewables (CPUC) MWh REC's Small Hydro 6,607 Landfill Gas 25,079 Wind 46,413 Heat Recovery (w/o REC's) 0 Unbundled REC's(Small hydro & Heat Recoverv) 191559 Additional Unbundled REC's 201000 Totals Sales California Air Resources 0oard (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 A1332. 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 (Auction 13, 2017 $323,067 (To be used in 2018) Total $ $11140,372 In FY18, $1,140,372 has been budgeted as revenue to help pay for renewable resources and in FY19, $1,126,330 has been budgeted in the same manner. ACHIEVEMENTS Excellence in Government Award Truckee Donner PUD received the Truckee Chamber of Commerce's Excellence in Government Award on October 20, 2017. This awards is presented to recognize the local government entity who best exemplified outstanding involvement in the community and its issues, those who have contributed significantly to our economy and local labor market. RP3 -Reliable Public Power Provider Truckee Donner PUD has earned the Reliable Public Power Provider designation from the American Public Power Association for providing consumers with the highest degree of reliable and safe electric service. Truckee Donner PUD received the Platinum level in 2017, the second highest award level of the RP3 designation (announcement will take place in April). We received the Gold Level designation in 2014. All RP3 designations are valid for three years. Truckee Donner PUD Recovers from Huge Winter Storms From mid -January until late February, a series of winter storms dumped over 200 inches of snow in the greater Truckee area. The severe wind and snow caused numerous power outages which resulted in school closures and traffic delays. The main causes of power outages and transients were the heavy snow load on trees and power lines. Although some customers were without power overnight, crews were able to minimize outage times for most customers by isolating the cause of the outage and used switching operations to restore power from other parts of the electric distribution system. At the peak of the storm damage, the District had 3,000 customers out of power, or about 20 of the entire system. District electric crews worked day and night to restore power as quickly as possible and to keep our community safe. Financial The Electric Operations Department was over budget for FY 17 by about $1,0001000. This was due to the storm damage that occurred in January and February. The District was able to obtain FEMA money to help cover the cost of the storm damage in an amount of $1,124,067. With this money from FEMA, the District was able to offset almost all of the storm damage costs. Capital Improvements As part of our ongoing commitment to provide customers with the highest degree of reliable and safe electric service, the District has replaced over 100 wood distribution poles in our service territory. Conductors and other facilities were upgraded to ensure long life and continued reliability. 4. FISCAL IMPACT Detailed budgeted versus actual amounts for 2017 are shown in the following table: Summary 2017 Budget vs Actual Power Purchases, MWh Budget Actual Total Energy Purchase, MWh 163,421 164,324 Percent Difference, Actual vs. Budget 0.6% Power Purchase Costs Budget Actual Total Energy Supply - UAMPS, WAPA, etc $11,681,375 $10,763,649 Transmission - NV Energy Scheduling - NCPA WAPA cost/(credit) Misc Costs: WECC, WREGIS, etc. Total Power Purchase Cost $ Over/(Under) Budget Percent Difference, Actual vs. Budget $927,156 $0 $0 $0 $12, 608,531 $707,809 $0 $0 $321681 4139 $11 ,50, $1,104,392 -8.8% Purchase Cost per MWh$70.01 Percent Difference, Actual vs. Budget Peak Load Information District Peak Load, MW Percent Difference, Actual vs. Budget 5. RECOMMENDATION Receive and comment on this report. Budget 36.0 -J.3% Actual 33.3 -T5% we 4 Stephen Hollabaugh Michael D. Holley Assistant General Manager General Manager