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HomeMy WebLinkAbout19 FY18 and FY19 Purchase Power Plan Budget WORKSHOP ITEM #19FY18 & FY19 Purchase Power PlanFY18 & FY19 Purchase Power Plan October 4, 2017 FY18 & FY19 Purchase Power Plan Present a draft of the FY18 & FY19 Budget•Review final Purchase Power Plan•–November 1WaterDiscuss operating and capital budget for Electric and •Discuss Purchased Power Plan•–(Tonight) October 4 manner at the lowest practical cost.”to manage District resources in a safe, open, responsible, environmentally sound quality water and electrical power services while meeting customer demand, and “The Mission of Truckee Donner Public Utility District is to provide reliable and high •Statement of Truckee Donner PUDMission BACKGROUND / HISTORY FY18 & FY19 Purchase Power Plan FY18 & FY19 Purchase Power Plan 350 minimum of 50% of renewable resources by 2030 to implement SB Truckee Donner Public Utility District resource mix will have a •projected demanddemand, TDPUD will strive to include qualifying resources to meet At such time that projected resources do not exceed projected •Renewable Portfolio Standard BACKGROUND / HISTORY FY18 & FY19 Purchase Power Plan NEW INFORMATION Greater conservation will reduce market purchases–Offsets growth that would otherwise require additional resources–3% of total load-Conservation is expected to reduce 1•Forecast assumes that load increases slightly in both 2018 and 2019•Conservation is Considered First Resource FY18 & FY19 Purchase Power PlanFY18 & FY19 Purchase Power Plan NEW INFORMATION hWG Actual Load GWhForecast Load GWh 170,000165,000160,000155,000150,000145,000140,000135,000130,000125,000120,000 2019 Forecasted Load = 166,9102013 Actual Load = 158,149•2018 Forecasted Load = 165,0952012 Actual Load = 156,497 •2017 Forecasted Load = 163,4212011 Actual Load = 160,544•2016 Actual Load = 161,0842010 Actual Load = 158,494 •2015 Actual Load = 152,2102009 Actual Load = 157,695 •2014 Actual Load = 158,2452008 Actual Load = 160,189•History and Future Forecasted Load (GWh)FY18 & FY19 Purchase Power PlanFY18 & FY19 Purchase Power Plan NEW INFORMATION Price Volatility–Contract Duration–Resource Diversity–Cost/Rates –Renewable Resources–Conservation–Future portfolio (FY18 & FY19 and beyond) is intended to balance:•Future Portfolio (Risk vs. Benefit)FY18 & FY19 Purchase Power PlanFY18 & FY19 Purchase Power Plan NEW INFORMATION heat recovery and TCID Hydro were added in 2017Veyo•Small Hydro–Truckee Carson Irrigation District –Carbon Free–heat recovery Veyo–Wind–Horse Butte Wind Project UAMPS –Wind–UAMPS Pleasant Valley –Landfill gas–Murray City –Sierra REC)-Large hydro (assigned to Plumas–Western CVP –Small hydro–Stampede Dam –Existing (FY17) renewable resources are:•FY18 & FY19 Purchase Power PlanFY18 & FY19 Purchase Power Plan NEW INFORMATION FY18 Resource Mix 50%Renewables15%Trans Jordan LFG1%TCID Small Hydro27%7%Stampede (Small Hydro)0%, Pleasant Valley (Wind)7%Veyo (Heat Recovery)12%Net Market (inc. Sunday)6%Payson (Natural Gas)25%-Market Purchase FY18-Proposed Resource Portfolio •FY18 & FY19 Purchase Power PlanFY18 & FY19 Purchase Power Plan NEW INFORMATION FY19 RESOURCE MIX 50%Renewables15%Trans Jordan (Landfill Gas) 1%TCID Small Hydro27%7%Stampede (Small Hydro)7%24%-Market Purchase 13%UAMPS Pool 6%Payson (Natural Gas)0%Fallon Exchange FY19–Proposed Resource Portfolio •FY18 & FY19 Purchase Power PlanFY18 & FY19 Purchase Power Plan NEW INFORMATION FY18 & FY19 Purchase Power PlanFY18 & FY19 Purchase Power Plan NEW INFORMATION generation).”-pumping, or electricity produced for onsite consumption (selfThis does not include energy consumption by a POU, electricity used by a POU for water use customers and their tenants, measured in MWh. -“Sales of electricity by a POU to end Definition of Retail Sales•Eligible Renewables MWh / Retail Sales MWh RPS is calculated by the following equation:•Renewable Portfolio Standard (RPS)FY18 & FY19 Purchase Power PlanFY18 & FY19 Purchase Power Plan NEW INFORMATION to be used in 2018$1,108,408 Total $291,103 (Auction 13)(Auction 12)$295,000$398,682 (Auction 11)$123,623 (Auction 10)(Auction 13 estimated, Nov 2017)Consigned by TDPUD, 2017from Sale of Allowances Revenue$13.57 (Auction 13) (Auction 10)$13.572017Settlementpersons other than such ratepayers.goals of AB32, and may not be used for the benefit of entities or ratepayers of each electrical distribution utility, consistent with the distribution utility shall be used exclusively for the benefit of retail Auction proceeds and allowance value obtained by the electric FY18 & FY19 Purchase Power PlanFY18 & FY19 Purchase Power Plan NEW INFORMATION 77.51FY19 (forecast77.80(forecast)FY1877.15FY17 (budget)74.05FY16 (budget)76.46FY15 (budget)75.55(budget)FY1473.85FY13 (budget)$/MWhar e Y scheduling costs are:in budgeted energy supply cost including transmission and -The all•Energy Supply Costs FY18 & FY19 Purchase Power PlanFY18 & FY19 Purchase Power Plan NEW INFORMATION 0.8%$0.65$77.80$77.15 Total Delivered Cost $/MWh1.0%1,674165,095163,421 Total Annual MWh 1.8%$236,635$12,845,166$12,608,531Total Bulk Power Costs$62,901$990,057$927,156NVEnergy-Transm ission $173,734$11,855,109$11,681,375Various-Total Energy Supply CHANGE20182017Purchased Power and Resource Costs$BUDGETBudgetBudget 2017 to 2018 2018 BudgetPURCHASE POWER PLAN EXPENDITURES DETAIL Budget FY17 vs. FY18–Purchase Power Plan Expenditure Detail FY18 & FY19 Purchase Power PlanFY18 & FY19 Purchase Power Plan NEW INFORMATION 0.4%-$0.29-$77.51$77.80 Total Delivered Cost $/MWh1.1%1,815166,910165,095 Total Annual MWh 0.7%$92,358$12,937,524$12,845,166Total Bulk Power Costs$0$990,057$990,057NVEnergy-Transmissi on $92,358$11,947,467$11,855,109Various-Total Energy Supply CHANGE20192018Purchased Power and Resource Costs$BUDGETBudgetBudget 2018 to 2019 2019 BudgetPURCHASE POWER PLAN EXPENDITURES DETAIL Budget FY18 vs. FY19–Purchase Power Plan Expenditure Detail FY18 & FY19 Purchase Power PlanFY18 & FY19 Purchase Power Plan FISCAL IMPACT Minimizes price volatility due to fuel costs and weather risk•in cost in the range of $77.51/MWh-Achieves a projected FY19 all•in cost in the range of $77.80/MWh-Achieves a projected FY18 all•Resource Plan:•Fiscal Impact FY18 & FY19 Purchase Power PlanFY18 & FY19 Purchase Power Plan RECOMMENDATION Receive this report and provide input to staff•Recommendation FY18 & FY19 Purchase Power PlanFY18 & FY19 Purchase Power Plan