HomeMy WebLinkAbout22 Workshop on Clean Reliable and Affordable Electric Serviceenda Item #
To: Board of Directors
From: Steven Poncelet
Date: May 16, 2018
Subject: Clean, Reliable, and Affordable Electric Service
22
1. WHY THIS MATTER IS BEFORE THE BOARD
This Board item, Clean, Reliable, and Affordable Electric Service, is the fifth in a new
series of Board workshops concerning how we communicate with and serve our
customers and community.
2. HISTORY
The Mission of Truckee Donner Public Utility District is to provide reliable, high quality
water and electrical power services while meeting customer demand, and to manage
District resources in a safe, open, responsible, environmentally sound manner at the
lowest practical cost. To achieve this mission, the District operates an electric and
water utility along with the necessary supporting departments and programs. It is
imperative, given the complexity of the energy and water sectors, that the District
communicate effectively with our customers and community in order to educate them
on the value of public power and water and to engage customers to participate in the
many programs and services that we offer.
These communication and outreach efforts, along with the associated programs and
servicesI fall into well known themes that communicate the essence of how the
District's efforts serve our customers. Our current key themes include:
• The Best Water Right From Your Tap (9/6/17);
• Save Energy, Water, Money and Live More Comfortably (10/4/17);
• The Facts of Mountain Living (11/1/17);
• Your Public -Owned Local Electric and Water Utility (12/6/17);
• Clean, Reliable, and Affordable Electric Services (5/6/18);
• Truckee is EV Friendly (future);
• Your On -Line Account Anywhere (future); and
• Your Local Community Partner (future).
3. NEW INFORMATION
Clean, Reliable, and Affordable Electric Service:
This theme is at the heart of the District's electric utility and the need to balance rates,
renewables, and reliability when procuring electric resources, investing in
infrastructure, and operating the electric utility. Balancing the need for competitive
rates, additional carbon -free sources of electricity, and flexible/base-loaded resources
were key considerations in the District's recent consideration of the UAMPS Carbon
Free Power Project. They will continue to be important as California considers new
legislation and mandates for 100% clean electricity along with the Town of Truckee's
recent Resolutions calling for 100% clean electricity for the Town's own usage by
2020 and community -wide by 2030. Clean, Reliable, and Affordable Electric Service
addresses:
• Continuing to integrate clean/carbon-free electric resources into the District's
portfolio;
• Investing in system reliability; and
• Keeping costs affordable for all of the District's customers.
The District has been very successful in transitioning from carbon -based electric
resources to renewable/carbon-free resources achieving a 67% Renewable Portfolio
Standard (RPS) in 2017 as defined by the California Energy Commission (CEC). This
number for 2017 rises to 81 % when counting a one-time purchase of Renewable
Energy Credits (REC's). The District has achieved this impressive result by building a
diversified portfolio of clean electricity resources including wind, solar, small hydro,
landfill gas, and heat recovery. Equally impressive, however, is achieving this result
while maintaining stable and competitive rates plus investing in system reliability.
Stable and competitive electric rates are bricks and mortar for a vibrant economy and
community. The District's electric rates are amongst the lowest in California and
competitive with Truckee's other electric supplier (Liberty Utilities). While the District
and Liberty's rates are comparable today, the District is providing over twice the RPS
that Liberty provides and the District's 10-year financial master plan has electric rates
rising at or below inflation. The District's electric rates are significantly lower than the
other local electric supplier, and California's largest electric supplier, Pacific Gas and
Electric (PG&E). The District has kept electric rates competitive by investing in cost-
effective electric resources and operational excellence.
While providing clean electricity at competitive rates in important, customers expect
and demand a very high level of reliability from their electric supplier. The District's
customers are no different despite the challenging mountain environment in which the
District operates the electric distribution system. The District has improved the
reliability of our electric system by making significant investments in vegetation
management/tree-trimming, modern protection equipment, and a highly trained
workforce. The District's excellent electric system reliability was recognized
nrPviniicly by nnhiPvinn the AmPriran Piihlin PnwPr Assnrintinn'q (APPA's) RPliahlP
Public Power supplier (RP3) gold designation. In 2018, the District again achieved
the RP3 designation but improved even further to the platinum level.
The District does truly provide clean, reliable, and affordable electric service.
4. FISCAL IMPACT
There is no fiscal impact associated with this workshop item.
5. RECOMMENDATION
Provide input to staff.
/I/ / Or// beooll -
Steven Poncelet
Public Information & Strategic Affairs Directo
Michael D. Holley
General Manager