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HomeMy WebLinkAbout13 FY20 and FY21 Purchase Power Plan Budget WORKSHOP ITEM #13FY20 and FY21 Budget–Purchase Power Plan FY20 and FY21 Budget–Purchase Power Plan September 4, 2019 Purchase BudgetDraft Power Plan (Plan) is a part of the FY20 and FY21 Purchase •UAMPS)Utah Associated Municipal Power Systems (of electric resources are procured through membership with ajority M•an adequate, reliable, and high quality electric supplyProvide •added2010 and 2011, additional goals were In •first resourceConservation is the •)goal of meeting California's Renewable Portfolio Standard (RPS2008, the District started a diverse purchase power portfolio with the In •BACKGROUND / HISTORY FY20 and FY21 Budget–Plan Power Purchase FY20 and FY21 Budget–Plan Power Purchase resources by 2045free -remaining 40% from carbonincreased RPS to 60% by 2030 and mandates the SB 100 In 2018, •increased RPS to 50% by 2030SB 350 In 2015, •an RPS of 33% by 20202 (2011) setting -requirements began with Senate Bill X1California RPS •RPS energy resource portfolio to meet •PlansFY20 and FY21 Plan continues with the goals of previous The •NEW INFORMATION FY20 and FY21 Budget–Plan Power Purchase FY20 and FY21 Budget–Plan Power NEW INFORMATION FY20 and FY21 Budget–Purchase Power Plan FY20 and FY21 Budget–Purchase Power Plan ahead of RPS compliance requirementswell Consistently •2030requirement for Exceeds the •65%actual RPS achievement for 2018 is District's The •60% RPS; 2030thru 2028 •2027; 50% RPSthru 2025 •2024; 44% RPSthru 2021 •2017 thru 2020; 33% RPS•2014 thru 2016; 25% RPS•2011 thru 2013; 20% RPS•RPS compliance periods and targets• NEW INFORMATION Proposed$13,066,899 168,590 FY21Proposed$12,937,524 167,753 FY20Estimated$12,937,524 166,910 FY19$12,845,166 165,095 FY18NotesCostMWhYear FY20 and FY21 Budget–Purchase Power Plan FY20 and FY21 Budget–Purchase Power Plan costsand MWhPlan includes the following budgeted energy amounts in The •purchasescontinue to reduce future market has and will Conservation •load% of 1for account conservation and efficiency measures Energy •load growth rate over the previous 10 yearsAverage •FY19approximately 0.5% per year compared to projects modest load growth in FY20 and FY21 of Plan The • NEW INFORMATION 0.5%-$0.39-$77.12$77.51Total Delivered Cost $/MWh0.5%843167,753166,910Total Annual MWh0.0%$0$12,937,524$12,937,524Total Bulk Power Costs$0$990,057$990,057NVEnergy-Transmission $0$11,947,467$11,947,467Various-CHANGEFY20FY19Purchased Power and Resource CostsBUDGETBudgetBudget FY19 to FY20 FY20 and FY21 Budget–Purchase Power Plan FY20 and FY21 Budget–Purchase Power Plan Plan summary for FY20The • NEW INFORMATION 0.5%$0.38$77.51$77.12Total Delivered Cost $/MWh0.5%837168,590167,753Total Annual MWh1.0%$129,375$13,066,899$12,937,524Total Bulk Power Costs$9,901$999,958$990,057NVEnergy-Transmission $119,475$12,066,942$11,947,467Various-CHANGE20212020Purchased Power and Resource CostsBUDGETBudgetBudget FY20 to FY21 FY20 and FY21 Budget–Purchase Power Plan FY20 and FY21 Budget–Purchase Power Plan Plan summary for FY21The • NEW INFORMATION 50.4%49.6%$251.4%Small Hydro-TCID $287.1%Small Hydro-Dam Stampede $560.4%Wind-Pleasant Valley Project $6826.8%Wind-$8314.7%Landfill Gas-Trans Jordan Project $636.7%)Free-CarbonHeat Recovery (VeyoVaries12.5%UAMPS Pool$5424.5%Market Purchase 5 Year$575.9%Natural Gas-Payson Project $/MWhRenewableRenewable-NonResource Type FY20 and FY21 Budget–Purchase Power Plan FY20 and FY21 Budget–Purchase Power Plan resourcesDistrict cost for approximate rojected energy contribution by percent and P• NEW INFORMATION FY20 and FY21 Budget–Purchase Power Plan FY20 and FY21 Budget–Purchase Power Plan Net effect increases the overall RPS value•water pumping loads and the District's own energy usedoes not include energy consumed by Per the CEC, retail energy sales •salescalculation is based on retail energy RPS •resourcefree -Project, a carbonVeyoRECs to cover the Purchase •energyvalue of 65% in 2018 is higher than budgeted RPS District's The • NEW INFORMATION FY20 and FY21 Budget–Purchase Power Plan FY20 and FY21 Budget–Purchase Power Plan 2005 to 2021–MWh’s-• NEW INFORMATION FY20 and FY21 Budget–Purchase Power Plan FY20 and FY21 Budget–Purchase Power Plan FY20 and FY21–Proposed Resource Portfolio • NEW INFORMATION FY20 and FY21 Budget–Purchase Power Plan FY20 and FY21 Budget–Purchase Power Plan 2030-) by Year 2014 MWhResources (• NEW INFORMATION FY20 and FY21 Budget–Purchase Power Plan FY20 and FY21 Budget–Purchase Power Plan 2019 meeting4, September possible approval at the will bring a resolution to approve the PPA to the Board for Staff •yearsterm of 25 , with a 2% annual escalation factor for a MWhPricing for energy is $23.15 •17, 2019 meetingUAMPS Board approved the Purchase Power Agreement (PPA) at the July •Navajo Tribal Utility Authority (NTUA)Red Mesa Tapaha Solar Project being developed by UAMPS and the •Anticipated future resource• NEW INFORMATION FY20 and FY21 Budget–Purchase Power Plan FY20 and FY21 Budget–Purchase Power Plan allocations starting in 2021 have not been determined by CARBAllowance •been extended to 2030 by AB 398 (2017)Program has and Trade Cap •Horse Butte Wind Project•resourcesBoard directed auction proceeds to offset the cost of renewable energy •auctionis assigned allowances that are sold at District •Air Resources Board (CARB) Cap and Trade ProgramCalifornia • NEW INFORMATION$1,442,450Total (Estimated)$366,430$15.73 (Est.)Auction 21, November 2019$346,060$15.73 (Est.)Auction 20, August 2019$383,900$17.45$346,060$15.73Auction 18, February 2019RevenueSettlem ent Price2019 Cap and Trade Auctions FY20 and FY21 Budget–Purchase Power Plan FY20 and FY21 Budget–Purchase Power Plan resourcesthe cost of renewable energy FY20 and FY21, $1,400,000 has been budgeted as revenue to offset In •shownauctions are held in 2019, with the District's results as Four • FISCAL IMPACT FY21FY20 and Budget for Draft Purchase Power Plan will become part of the The •timeis no direct fiscal impact at this here T•FY20 and FY21 Budget–Purchase Power Plan FY20 and FY21 Budget–Purchase Power Plan RECOMMENDATION FY20 and FY21 Budget–Purchase Power Plan FY20 and FY21 Budget–Purchase Power Plan input and direction to staffProvide •