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HomeMy WebLinkAbout10-Discussion of 2013 Purchase Power Load, Resources, Peaks, and Comparison to 2013 Budget ForecastAgenda Item #10 To: From: Date: Subject: Board of Directors Stephen Hollabaugh February 05, 2014 Discussion of 2013 Purchase Power Load, Resources, Peaks, and Comparison to 2013 Budget Forecast WORKSHOP 1. WHY THIS MATTER IS BEFORE THE BOARD This workshop is to review the District’s actual versus budgeted purchase power costs and energy consumption for 2013. 2. HISTORY On October 5, 2011 the workshop "FY12 and FY13 Budget: Purchase Power Plan" was presented to the Board. This workshop covered the following topics: Mission Statement and Objectives, Renewable Portfolio Standard Target, Conservation as First Resource, Diversified Power Supply Plan, Future Renewable Resources, Proposed Resources for 2013, Risk to Budget Analysis and 2013 Forecast Costs. The Purchase Power Plan 2013 Budget was approved by the Board on November 16, 2011. The 2013 Purchase Power Plan budgeted amounts, based on a forecasted energy purchase of 163,082 MWh, are shown in the following table: Cost Component Budget $ per MWh Total Energy Supply - Various $10,737,570 $65.84 Transmission Wheeling - SPPC $ 1,081,033 $ 6.63 Scheduling - NCPA $ 73,226 $ 0.45 Central Valley Project - WAPA $ -28,012 $ -0.17 Totals $11,863,817 $72.75 Historical data for 2013 and prior years to 2005 is included for reference on Attachment A. 3. NEW INFORMATION Summary budgeted versus actual amounts for 2013 are shown in the following table: Description Budget Actual Total Energy Purchases $11,863,817 $11,647,321 Total Energy Consumption, MWh 163,082 158,149 Purchase Cost per MWh $72.75 $73.65 • The total purchased power costs were 1.8% less than budgeted and total energy consumption was about 3.0% less than forecasted during 2013. The two major factors that affect the total purchased power cost are resource cost and energy consumption by our customers. While the forecasted energy consumption value of 163,082 MWh was close (within 2%) to the actual amount, the resource cost was much less than budgeted. All these factors helped to reduce the District's actual purchased energy cost to $73.65 per MWh, about 0.3% over budget. Energy costs and consumption by month are graphically depicted below. Budgeted versus actual power purchase cost for 2013 is shown in graph below: $10,737,570 $10,847,086 $1,081,033 $867,550 ‐$2,000,000 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 Budget Actual FY13    Pow er Purchase Cost Scheduling  Transm ission   Total Energy Supply  $11,647,321$11,863,817 Budgeted versus actual monthly MWh consumption for 2013 is shown in graph below: 0  2,000  4,000  6,000  8,000  10,000  12,000  14,000  16,000  18,000  20,000  JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC Budgeted  Actual  2013 Monthly Energy Consumption MWh M W h The Mont hl y Peak M W f or 2008 t hr ough 2013 i s s ho wn in the graph below: 0.0  5.0  10.0  15.0  20.0  25.0  30.0  35.0  40.0  JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC Monthly Peak MW  2008, 2009, 2010, 2011, 2012,2013 2013 Peak MW 2012 Peak MW 2011 Peak MW 2010 Peak MW 2009 Peak MW 2008 Peak MW J JU JU UG S OC O C The District experienced its peak load of 31.5 MW in December. The summer months have a constant load with a small peak in July. On December 7, 2011 the Board approved the Renewable Energy Resources Procurement Plan per Senate bill 1x2. This plan defines the minimum required percentage of renewables per compliance period based on total retail energy sales. Compliance periods and percent renewables are as follows: Period 1 - January 1, 2011 through December 31, 2013 - 20% Period 2 - January 1, 2014 through December 31, 2016 - 25% Period 3 - January 1, 2017 through December 31, 2020 - 33% Section 3201 (bb) of the CEC regulations define retail sales as: "Sale of electricity by a PUD to end-use-customers and their tenants, measured in MWh. This does not include energy consumption by a POU, electricity used by a POU for water pumping, or electricity produced for onsite consumption (self-generation)." Therefore the retail sales for this calculation is equal to 147389-8195-499=138,695 MWh The District's estimated renewable energy portfolio performance for 2013 is shown in the table below: Eligible Renewables (CPUC) MWh REC's % Sales Small Hydro 4,477 3.2% Landfill Gas 21,240 15.3% Wind 34,995 25.2% Solar 0 0.0% Totals 61,078 43.8 % 4. FISCAL IMPACT Detailed budgeted versus actual amounts for 2013 are shown in the following table: Power Purchases, MWh Budget Actual Total Energy Purchase, MWh 163,082 158,149 Percent Difference, Actual vs. Budget ‐3.02% Power Purchase Costs Budget Actual Total Energy Supply ‐ UAMPS, WAPA, etc $10,737,570 $10,847,086  Transmission ‐ NV Energy $1,081,033 $867,550  Scheduling ‐ NCPA $73,226 $67,753  WAPA cost/(credit) ($28,012) ($141,713) NCPA Power Purchase $1,612  Misc Costs: WECC, WREGIS, etc. $5,033      Total Power Purchase Cost  $           11,863,817  $           11,647,321  $ Over/(Under) Budget  $               (216,496) Percent Difference, Actual vs. Budget ‐1.82% Purchase Cost per MWh $72.75 $73.65  Percent Difference, Actual vs. Budget ‐0.29% Peak Load Information Budget Actual District Peak Load, MW 36 31  Percent Difference, Actual vs. Budget ‐12.62% Stephen Hollabaugh Michael D. Holley Assistant General Manager General Manager 5. RECOMMENDATION Receive and comment on this report.