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HomeMy WebLinkAbout8 - Consideration of an Electrification and TOU Rate study ACTION ITEM #8Use (TOU) Rate Study-of-and TimeConsideration of an Electrification Use (TOU) Rate Study-of-and TimeConsideration of an Electrification October 2, 2019 Electrification participation in the Red Mesa Solar about 75% starting in 2022 from The District’s RPS is 65%, and will be •levels by 2030GHG emissions to 40% below 1990 legislation sets the goal of reducing California’s ambitious AB 32 •BACKGROUND / HISTORY StudyTOU Rate and Electrification StudyTOU Rate and Electrification rates if advantageous to Districtto incentivize switching to TOU How •on revenues and electrificationUse (TOU) rates and the financial impact -of-viability of TimeStudy the •electrificationon how to incentivize Information •targetedon what end uses can be Information •electrification, includinginformation on In July of 2019, members of the Board met with staff to request more •BACKGROUND / HISTORY StudyTOU Rate and Electrification StudyTOU Rate and NEW INFORMATION asecElectrification business 4.Rebates and TOU rate analysis3.Electrification end use specifications and cost2.Market analysis1.The proposed scope includes the following tasks•the District’s cost of service and ratesEngineering (HDR) based on their current work and knowledge of taff developed a scope of work with the support of HDR S•and TOU Rate StudyElectrificatio n and TOU Rate StudyElectrification NEW INFORMATION Conduct surveys and research of customers in Truckee•Evaluate customer participation•Analysis of electrification programs at other utilities•eliverables includeD•District program optionselectrification programs, and conduct customer research to inform from other practices and lessons learned Identify the best •Market Analysis-Task 1 •and TOU Rate StudyElectrification and TOU Rate StudyElectrification NEW INFORMATION A compilation of resource prices •end usescompilation of the energy specifications of gas, electric and gasoline A •Deliverables include•financial calculationsto be specifications a data table of gas and electric end uses and their efficiency evelop D•Electrification End Use Specifications and Cost-2 Task •and TOU Rate StudyElectrification and TOU Rate StudyElectrification NEW INFORMATION pros/cons and lessons learned by other utilities with TOU ratesraining to explain the criteria to necessitate TOU rates including T•Possible TOU rate structures•recommendationsIncenti ve structures including rebates, financing, rates, and/or other •Deliverables include•forecast potential financial impactsoptions, the level of effort to manage the program, and available evelop a variety of electrification incentive structures to understand D•Rebates and Rates-Task 3 •and TOU Rate StudyElectrification and TOU Rate StudyElectrification NEW INFORMATION analysisif -economic calculator to allow Staff to perform future whatbased -Excel•Customer bill impact•Barriers to implementation and program success•Financial impacts•designProgram •Deliverables include•by electric customersachieves at least 10% adoption a detailed business case for an electrification program that rovide P•Electrification Business Case-4 Task •and TOU Rate StudyElectrification and TOU Rate StudyElectrification FISCAL IMPACT sufficient funds exist for this procurementElectric Utility budget, but included in the FY19 was not roject P•65,000$HDR’s proposed work is for cost Total •and TOU Rate Studyand TOU Rate Study RECOMMENDATION not to exceed contract amount of $71,500 amount of $65,000 plus a 10% change order authorization for a total an Use Rate Study in -of-Engineering for an Electrification and TimeAuthorize the General Manager to execute a contract with HDR •and TOU Rate StudyElectrification and TOU Rate StudyElectrification