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Home My WebLink About18 Power Point Purchase Power Review 2020 April 7, 2021 Purchase Power Review FY20 WORKSHOP ITEM #18 •BACKGROUNDBACKGROUND Power Review FY20Purchase Power Review FY20Purchase Rates, Renewables and Reliability•costsForecast purchase power •Proposed resources•Future renewable resources•power supply planDiversified •programCalifornia Air Resources Board (CARB) Cap and Trade •Renewable Portfolio Standard (RPS) target, State requirement•Mission statement and objectives•, 20196November by Board on Approved •PlanBudget included the Purchase Power FY20 and FY21 •11.7%-$11,285,537 $12,787,524 Total Energy Cost FY2012.5%-$66.74$76.23Purchase Power Cost per ($/MWh)0.8%169,091 167,750 Total Energy Consumption (MWh)% ChangeActualBudget Item BACKGROUNDBACKGROUND Power Review FY20Purchase Power Review FY20Purchase , 12% under budgetMWhReduced purchase power costs to $66.74 per •practicesConservative District budget •UAMPS performed better than budget across all projects•Since we peak in winter, market prices lower•Increased energy usage of almost 1% due to COVID•costsconsumption and resource Energy •Plan Budget vs. ActualsPower FY20 Purchase •$12,787,524$11,285,537 SupplyTotal EnergyTransmission FY20 Purchase Power CostActualBudget$14,000,000$13,000,000$12,000,000$11,000,000$10,000,000$9,000,000$8,000,000$7,000,000$6,000,000$5,000,000 BACKGROUNDBACKGROUND Power Review FY20Purchase Power Review FY20Purchase FY20vs Actual Purchase Power Cost for Budgeted •hWM Energy Consumption (MWh)2020 Monthly ActualBudget DECNOVOCTSEPTAUGJULYJUNEMAYAPRMARFEBJAN20,00018,00016,00014,00012,00010,0008,0006,0004,0002,000 BACKGROUNDBACKGROUND Power Review FY20Purchase Power Review FY20Purchase ) for FY20MWhActual Monthly Energy (vs Budgeted •Peak2020Peak2019Peak2018Peak2017Peak2016Peak2015 2015 thru 2020Monthly Peak (MW) DECNOVOCTSEPTAUGJULYJUNEMAYAPRMARFEBJAN 40.035.030.025.020.015.010.05.00.0 BACKGROUNDBACKGROUND Power Review FY20Purchase Power Review FY20Purchase load was 34.7 MW in DecemberPeak •20202015 to -Peak MW Monthly •BudgetActual MWhActual vs Budget (EnergyTotal MWh /Year 180,000170,000160,000150,000140,000130,000120,000 BACKGROUNDBACKGROUND Power Review FY20Purchase Power Review FY20Purchase to 20202006 ), Actual vs Budget MWhEnergy (Total •WindLandfill GasSmall HydroHeat RecoveryUnspecified PoolNatural Gas 2020 RESOURCE MIX Free Resources-CarbonRenewable and WindLandfill GasSmall Hydro5%Heat RecoveryUnspecified Pool9%Natural Gas BACKGROUNDBACKGROUND Power Review FY20Purchase Power Review FY20Purchase to 20202006 ), Actual vs Budget MWhEnergy (Total •BACKGROUNDBACKGROUND Power Review FY20Purchase Power Review FY20Purchase 2030–) by Year 2014 MWh(Energy Resources •BACKGROUNDBACKGROUND Power Review FY20Purchase Power Review FY20Purchase energy needs15% –2023) (andfill Gas, City of Murray, UT L•needs9% energy -4MW, 5–TCID Hydroelectric (annually) •9% energy needs-4MW, 5–Stampede Hydroelectric (2025) •Need to Renegotiate•% energy needs6–WAPA Base Resource (CVP) Hydroelectric (2025) •6MW, 10% energy needs–Red Mesa Solar Project (2022) •In Contract•Contract, Renegotiate, and PossibilitiesIn •Future energy resources •BACKGROUNDBACKGROUND Power Review FY20Purchase Power Review FY20Purchase In Permitting–Boca Reservoir Hydroelectric Project •needs9% energy -4MW, 5–TCID New Lahontan Hydro (2025) •projectsOther UAMPS •needsenergy 25% 60 MW–2023)(Phase II Horse Butte •+13MW, 6% energy needs–I Upgrade (2022) Phase Horse Butte •Future Resource Possibilities •BACKGROUNDBACKGROUND Power Review FY20Purchase Power Review FY20Purchase 2028 thru 2030; 60% RPS•2025 thru 2027; 50% RPS•2021 thru 2024; 44% RPS•2017 thru 2020; 33% RPS•2014 thru 2016; 25% RPS•2011 thru 2013; 20% RPS•compliance periods and targetsRPS •free resources by 2045-remaining 40% from carbonIn 2018, SB100 increased RPS to 60% by 2030 and mandates the •In 2015, SB350 increased RPS to 50% by 2030•20202 (2011) setting an RPS of 33% by Bill X1Portfolio Standard (RPS) requirements began with Senate Renewable •33.0%RPS Requirement62.1%2020 Estimated RPS9.2%14,000Unbundled RECs (Small Hydro & Heat Recovery)0.0%free, w/o RECs), carbonVeyoHeat Recovery (31.6%47,833Wind (Horse Butte, Pleasant Valley)16.3%24,597Landfill Gas (Transjordan)5.0%7,624Hydroelectric (Stampede)Retail Sales% RECsMWhFree-Renewables and CarbonEligible BACKGROUNDBACKGROUND Purchase Power Review FY20Purchase Power Review FY20 CEC definition of “retail sales” excludes water pumping and District use•Energy Commission (CECis based on retail energy sales as defined by the California RPS •amounts finalized in Q2, 2021REC •FY20RPS performance for Estimated •TBD$1,444,498$1,503,495$1,186,320$1,140,372$1,172,306 $965,402 $836,233 $862,563 Wind CostsButte Horse applied to Revenue TBD$600k Est.$1,444,498$1,503,495$1,186,320$1,140,372$1,172,306 $965,402 $836,233 $862,563 Allowance RevenueTBD38,34284,77689,29579,04979,45298,09077,58371,80670,866Allowances Sold53,08853,342119,776119,295119,049119,452118,090117,582116,807115,865Total Allowances2022202120202019201820172016201520142013Annual Allocation of CARB Allowances BACKGROUNDBACKGROUND Purchase Power Review FY20Purchase Power Review FY20 Future revenue will also be reduced by about 50%•reduced by 50% compared to previous allocationsallocations Allowance •(2017AB 398 and Trade has been extended to 2030 by Cap •Projectallocated to Horse Butte Wind 1,444,498 $In FY21, •resourcesrevenues offset purchase of renewable Allowance •Cap and Trade SummaryCARB •12.4%-Percent Difference, Actual vs. Budget$66.74 $76.23 Purchase Power Cost ($/MWh)11.7%-Difference, Actual vs. Budget($1,501,990)$ Over/(Under) Budget $11,285,534 $12,787,524 Total Power Purchase Cost($184,316)$0 UAMPS Operating Margin$17,993 $0 Miscellaneous Costs$983,732 $990,057 NV Energy-Transmission $10,468,125 $11,797,467 Total Energy SupplyActualBudgetPower Purchase Costs0.8%Percent Difference, Actual vs. Budget169,091167,750Total Energy Purchase, MWhActualBudgetPower Purchases, MWh FISCAL IMPACTFISCAL IMPACT Purchase Power Review FY20Purchase Power Review FY20 ActualFY20 Budget vs Summary •RECOMMENDATIONRECOMMENDATION Purchase Power Review FY20Purchase Power Review FY20 staffinput to Provide Purchase Power Review FY20 BACKGROUNDBACKGROUND Purchase Power Review FY20 •3.4%169,0912,881166,20920202019 to 2020163,4672,784160,6832019Increase from161,5482,758158,7902018164,3242,807161,51720171.0%161,0842,760158,3242016over 15 Years152,2102,609149,6012015Average Growth158,2453,372154,8742014158,1493,870154,2802013154,9763,980150,9962012160,5444,137156,4072011158,4944,011154,4832010157,6954,018153,6772009160,1894,076156,1132008158,3844,042154,3422007157,2284 ,018153,2102006146,6193,767142,8522005PurchasedSystem Losses (1)SubstationsYearTotal Bulk EnergyTransmissionDelivered to MWh-Energy Purchases BACKGROUNDBACKGROUND Purchase Power Review FY20Purchase Power Review FY20 1.0%over 15 years is Average growth •MWhsPurchases Actual Energy •1.5%1.5%159,13420202019 to 20203.1%156,7142019Increase from2.9%151,94420183.3%156,56220171.0%7.6%151,5272016over 15 Years1.2%140,8192015Average Growth3.3%142,58420140.9%147,38920132.6%146,01420121.6 %149,97820110.5%147,64720101.0%146,87520090.8%148,30520082.0%147,09120075.8%144,2692006136,3392005Year, %Energy Sales, MWhYearChange from Previous MWh-Energy Sales to Customers BACKGROUNDBACKGROUND Purchase Power Review FY20Purchase Power Review FY20 1.0%15 years is growth over Average •MWhsSales to Customers Energy •4.6%4.3%166,2097,0752020over 15 Years2.5%160,6833,9692019Average Losses4.3%158,7906,84620183.1%161,5174,95520174.3%158,3246,79720165.9%149,6018,78220157.9%154,87412,29020144.5%154,2806,89120133.3%15 0,9964,98220124.1%156,4076,42920114.4%154,4836,83620104.4%153,6776,80220095.0%156,1137,80820084.7%154,3427,25120075.8%153,2108,94120064.6%142,8526,5132005Delivered to Substo SubstationsLosses (2)YearLosses as % Energy Energy Delivered MWh-Distribution System Losses BACKGROUNDBACKGROUND Purchase Power Review FY20Purchase Power Review FY20 per year is 4.5%loss Average •MWhsSystem Losses Distribution