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HomeMy WebLinkAbout13 Purchase Power PlanAgendaItem#13*TRUCKEEDONNERcUtiIityDistrictWORKSHOPTo:BoardofDirectorsFrom:JoeHorvathDate:September04,2019Subject:PurchasePowerPlan—FY20andFY21Budget1.WHYTHISMATTERISBEFORETHEBOARDThisinformationalitemisbeforetheBoardtodiscussthePurchasePowerPlanfortheproposedFY20andFY21Budget.2.HISTORYIn2008,theDistrictstartedadiversepurchasepowerportfoliothatnowincludesmanydifferentelectricresourceswiththegoalofmeetingCalifornia’sRenewablePortfolioStandard(RPS)withconservationasafirstresource.In2010and2011,additionalgoalswereaddedtoprovideanadequate,reliable,andhighqualityelectricsupplytomeetthecurrentandfutureneedsoftheDistrict.ThemajorityofelectricresourcesareprocuredthroughtheDistrict’smembershipwithUtahAssociatedMunicipalPowerSystems(UAMPS).Title3,Section3.02.010oftheDistrictCodestatesthattheGeneralManagershallsubmittotheBoardofDirectorsatwoyeardraftbudget.ThePurchasePowerPlan(Plan)isapartoftheFY20andFY21draftBudget.3.NEWINFORMATIONTheFY20andFY21PlancontinueswiththegoalsofpreviousPlans.TheDistrictwillmaintainadiversifiedpurchasepowerportfoliothatincludesmanydifferentresourceswhilemeetingCalifornia’sRPSrequirements.ThePurchasePowerPlanforFY20andFY21costdetailsandresources,includinggraphs,areincludedasAttachment1.OnOctober2,2013,theBoardapprovedtheRenewableEnergyResourcesProcurementPlanpertherequirementsofSenateBillXl-2(2011).Thisplandefinestheminimumrequiredpercentage(RPS)ofrenewableenergyresourcescomparedtoretailsalesperthree-yearcomplianceperiodtotheendof2020.OtherlegislationhasincreasedtheRPSrequirementsandextendedthecomplianceperiodstotheendof2030.In2015,SB350wassignedintolaw,whichmandateda50%RPSbyDecember31,2030.In2018,SB100wassignedintolaw,whichagainincreasestheRPSto60%by2030andrequiresallstate’selectricitytocomefromcarbon-freeresourcesby2045.ComplianceperiodsandRPSrequirementsareasfollows:Period1-January1,2011throughDecember31,2013-20%RPS;Period2-January1,2014throughDecember31,2016-25%RPS; Period3-January1,2017throughDecember31,2020-33%RPS;Period4-January1,2021throughDecember31,2024-44%RPS;Period5-January1,2025throughDecember31,2027-50%RPS;andPeriod6-January1,2028throughDecember31,2030-60%RPS.TheDistrict’sactualRPSachievementfor2018is65%,wellinexcessoftherequirementfor2030.TheDistricthasconsistentlybeenwellaheadofCalifornia’scompliancerequirements.ThePlanprojectsmodestloadgrowthinFY20andFY21ofapproximately0.5%peryearcomparedtoFYi9,consistentwiththeaverageloadgrowthrateovertheprevious10years.AswithpreviousPlans,staffestimatesthatenergyconservationandenergyefficiencymeasureswillaccountforabout1%oftheload.Greaterconservationhas,andwillcontinuetoreducefuturemarketpurchases.ThebudgetedloadinMWhandcostsareshownbelow:BudgetedBudgetedYearMWhCostNotesFY18165,095$12,845,166FY19166,910$12,937,524FY20167,753$12,937,524ProposedFY21168,590$13,066,899ProposedAlistofresourcetypeswithprojectedcontributionbypercentagesandapproximatecost(notincludingtransmissioncosts)indollarsperMWh,isshowninthefollowingtable.ResourceTypeNon-Renewable%Renewable%$/MWhPaysonProject-NaturalGas5.9%$57MarketPurchase5Year24.5%$54UAMPSPool12.5%VariesVeyoHeatRecovery(CarbonFree)6.7%$63TransJordanProject-LandfillGas14.7%$83HorseButteProject-Wind26.8%$68PleasantValleyProject-Wind0.4%$56StampedDam-SmallHydro7.1%$28TCID-SmallHydro1.4%$2549.6%50.4%Thepercentagesshowninthetableareconservativeforbudgetingpurposesandarebasedonaverageprecipitationandwindconditionsforhydroelectricandwindenergyproductionrespectively.TheDistrict’sRPSvalues(65%in2018)arehigherduetopurchasingRECstocovertheVeyoHeatRecoveryProject,acarbon-freeresource.Inaddition,theRPScalculationisbasedonretailenergysalesanddoesnotincludeenergyconsumedbywaterpumpingloadsandtheDistrict’sownenergyuse,theneteffectofwhichincreasestheoverallRPSvalue.AnticipatedFutureResourceApossiblefutureresourceincludestheRedMesaSolarProjectbeingdevelopedbyUAMPSandtheNavajoTribalUtilityAuthority(NTUA).UAMPSstaffcompletednegotiationswithNTUAforthePurchasePowerAgreement(PPA).Pricingforenergy ]e6uiIJeueD]oloeJ!aA1!I!Tfl3!J3eIA8IIOHGI8L13!Vi1UMOeorQ4/.,:%E1S01UO!T38J!Ppuindu!ep!AOJdNOI1VN3O33I9.AdPUOAdJO:86JflBPeLflorndewooeqII!MUIdJ8MOdesiqoineqewjS!Lfl21odw!I3S!13eJ!pouS!eeq13VdLII1V3SLIt’e3!T3Jdisdfl!M1U8TS!9U03‘JeuuweweseqU!pee6pnqueeqossqooo’oot’i-$‘AdUISe3JflOSeJeqMeUeJJoAddeqoenueAeispee6pnqueeqsqooo’oo$‘O)dUIOSt7’ZV17’I$(paew!s])ieoiOEt’99E$(s)ELSI$6IOJqWAON‘IZUO!PflV090’9t7E$(s3)EtSt$6tO:snnv‘ozUO!DflV006’E8E$SVLI$610ZAej‘61UOLDflV090’9VE$ECGI$6tOAJenJqa‘gUO!PflVonuaaua!JdWaw0P0SSUO!pflvapeiipuedeD610Z:UMOqSSsinseiS13!]S!Qeqq1M‘6I-OU!eJSUO!13fl]flOVO91e06eq6U!leeweioeieq‘seainoseiA6]eUeeqeeiS13!JS!G&flOSO381fl8SOOspeeooidUO!13fleqesnopep!3eppJoeL11:sieAdeiqonsUq.ieqosUosiedioSe!T!1U8OeUeqeqJOpesneqlOUAWpU1‘EIVOSIO6eqq1MUe1s!sUo3‘A1!I!lfluojnqpspqoeOsieAdeiiI!1eJeqOieueqeqiOAIeA!SflIOXepesneqA!I!TfluonqpsipoupeeeqicqpeqoenA3UMOIIPUspeeoodUO!jOflV,,6U!MOIIOeqsernisUO!Ifl6eJeqo(c)tP)6296Uo!loeS•EI.OU!SUO!13flepiPUdi0!e1pernisgHVQeqWeJ6OJdapeipuede3(9HVO)pieosaoinose!VB!UJ0!Ie3U!6U!J1S%9LAle1w!xo.IddosUeweAe!q3ESdHS13!JS!QeqeseJoU01deqPIflOMU1‘Oe4-UOq]3UUeqeueS!A6ieues!qislUewe]!nbe]A6ieue13!J1S!GIflUUirnoiolUealedoi.noqosenbeeiqsMV’J9iipew!1seS!11•piogeqAqpeAo]dd!‘ioeoideqoeqs(%I.6noq)MIIN9I!TUe1odsq1o!Jls!Geq•o‘I.eUnAqeU!IUoeqoipenpeqosS!pe[oieqpe[odS!qjU!6U!d!3flJdse!oUe6u.ieqwew9j.Lli!M‘MVN99SITOjSe]eUieqwewSdINVfl6I.O‘17.ieqwedeUO6Ueewpenpeqos4Iin6e.eqiIAO]ddeqssod.iopioSj3!JS!GeqoVddeqeAoJddoUO!lflIOSeJ6UpqII!MIISSIAO]ddApoq6U!weAo6.ieqwew6UIUI1qOSdVIVflUOdflepeeewooeqII!MVddeqj6U!jeew6I.O‘LI.AinteqVddeqpeAo]ddpioSdV’JVfleqsieAgowieioJo3Uo!1I3seIflUU%Lfl!M‘LIMVJ9V$S! AttachmentIPurchasePowerPlan—FY20andFY21PurchasePowerPlanExpendituresDetailFY20BudgetFY19toFY20BudgetBudgetBUDGETPurchasedPowerandResourceCostsFYI9FY20CHANGETotalEnergySupply-Various$11,947,467$11,947,467$0Transmission-NVEnergy$990,057$990,057$0TotalBulkPowerCosts$12,937,524$12,937,524$00%TotalAnnualMWh166,910167,7538430.5%TotalDeliveredCost$/MWh$77.51$77.12-$0.39-0.5%FY21BudgetFY20toFY21BudgetBudgetBUDGETPurchasedPowerandResourceCosts20202021CHANGETotalEnergySupply-Various$1I947,467$12,066,942$119,475Transmission-NVEnergy$990,057$999,958$9,901TotalBulkPowerCosts$12,937,524$13,066,899$129,375I.0%TotalAnnualMWh167,753168,5908370.5%TotalDeliveredCost$/MWh$77.12$77.51$0.380.5%Page1 TotalBulkPower180,000170,000L160,000CD:150,000140,000130,000.BudgetvsActualMWIt.......—.—ActualMWh—*--BudgetMWh120,000IC,4’0)t4,1)()0)‘4,1‘11‘1MarketPurchase-14/2017thru3/202%24%UAMPSPoolIFY%o&FY21RESOURCEMIXIHorseButte(Wind)TCIDsn;ii:ivcj;:c;1VeyoHeatRecoveryIStampede(SmallHydro)7%%50%—FaInExchangePayson(NaturalGas)6%TransJordan“(LandfillGas)L15%Page2 200,000180,000Resources(MWh)ByYear2014-2030160,000140,000120,000100,00080,00060,00040,000mOpenPosition-UAMPSPoolIMkt.VeyoHeatRecovery2017SHorseButteWind-WindNeboPowerPlant-NaturalGasNTUAKayentaIll-Solar.PleasantValley-WindBFallonExchangeforStampedeaStampede-SmallHydroBTransJordan-LandFillGas•TClDSmallHydro.Five-yearMarket2017-22.Five-yearMarket2012-1720,0000*(,0Aq,0)c::,“.i,‘),0bPage3