HomeMy WebLinkAbout18 2008 Renewable Portfolio Agenda Item # 18
Public Utility Distric
WORKSHOP
To: Board of Directors
From: Stephen Hollabaugh
Date: February 04, 2009
Subject: Discussion of the 2008 Renewable Portfolio Standard
1. WHY THIS MATTER IS BEFORE THE BOARD
This workshop item is intended to give the Board a status of the 2008 Renewable
Portfolio Standard (RPS), and to meet the intent of the Title 3 requirement to review
Electric Supply Procurement (3.06) and (3.06.4(C)) Portfolio Performance and Value
Reporting.
2. HISTORY
This report is intended to give an update of the goals set in District code sections 7.83
Renewable Portfolio Standard and Code Section 3.06 Electric Supply Procurement.
The following are excerpts from Code Sections 7.83 Renewable Portfolio Standard
and 3.06 Electric Supply Procurement:
7.83.010 Background
State Senate Bill 1078 (SB1078) was signed into law on September 12, 2002 and was
effective January 1, 2003. The SB1078 legislation modifies the California Public Utilities Code
to include a specific renewable resource requirement for investor owned utilities (IOUs).
SB1078 required IOU's to maintain a minimum of 20% of their power from eligible renewable
resources by 2017. SB107 (Simitan) was passed in 2006 and accelerates the IOU target to
20% by 2010. The legislation (SB1078) also includes provisions that apply to publicly owned
utilities.
7.82.030 Qualified Resources
Truckee Donner Public Utility District Electric Qualified RPS Resources
• Renewable resources are defined as non-fossil fueled electric generating resources,
including all hydroelectric. These would include but may not be limited to any resource
that meets the definition of "Eligible renewables" pursuant to section 398.4(h)(1) of the
California SB 1305, which sets forth the requirements for power content labels:
• Geothermal (including low-temperature geothermal heat pumps)
• Hydroelectric (small hydro, 30MW or less)
• Hydroelectric (large hydro, above 30MW)
• Solar
• Wind
• Biomass and waste
• Fuel cells
• Unbundled Renewable Energy Credits (REC's)
7.82.040 Target
RPS Target:
• At such time that projected resources do not exceed projected demand, TDPUD will
strive to include qualifying resources to meet projected demand.
• Truckee Donner Public Utility District resource mix will have a minimum of 21% of
renewable resources by year-end 2010. Renewable resources are defined as non-
fossil fueled electric generating resources, including hydroelectric.
7.82.060 Ongoing Review
Ongoing Review of Truckee Donner Public Utility District RPS
• A two-year review standard of the RPS will address changes in the Truckee Donner
Public Utility District power portfolio including market power purchases, entitlement
shares of projects and potential changes in the renewable energy technologies.
• Starting in 2010, the two-year review cycle will be initiated.
Electric Supply Procurement 3.06
3.06.4(C) Portfolio Performance and Value Reporting
The Electric Utility Manager shall prepare performance reports containing
analysis of physical and financial positions of all electric contracts. Reports
shall be annually, unless the ratio of the market value of a contract falls outside
the risk limits prescribed by the District Board of Directors, then the General
Manaaer shall inform the Board of this fact and recommend actions.
3. NEW INFORMATION
The District has been making good progress toward its RPS goals. The District had a
contract with Constellation Power Systems that ended in 2007. The majority of the
District power from that contract was from coal generation. After that contract ended,
the District took a different approach to power procurement. The District now had a
more diversified portfolio of generation sources to limit risk and meet the renewable
goals of the District.
The current and future generation sources are:
UAMPS:
• Nebo Generation - Natural Gas, approx 5MW capacity
• Shaped Capacity and Energy (SC&E) contract - Coal
• Pleasant Valley Wind Project - 200 kw, coming by June 2009
• Renewable Energy Credits from Pleasant Valley Wind Project - 2008, 2009 and
future Hydro Generation
• Stampede Hydro Generation, WAPA, up to 3MW
• WAPA allocation of CVP, NCPA
Future Generation under contract
• Western Geo - NCPA, approx 1 MW operation date mid 2010
• Rye Patch Geothermal, Presco Energy, 2 to 5 MW, operation date unknown
Future Generation in study phase
• UAMPS - Simmons Wind Project, 6 MW capacity
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Many other generation sources are being investigated by UAMPS, NCPA and the
District. When these sources show promise, a status and discussion will be presented
to the Board.
Below are the 2007 and 2008 year end -generation mix :
Generation Types 2007
Total Renewables see note 1 8.3%
Natural Gas 0.0%
Market - All in Pool and Outside Purchases see note 2 3.0%
Constellation Contract Coal 88.7%
Total 100.0%
Generation Types 2008
Total Renewables see note 1 22.4%
Eligible Renewables as defined by CPUC 15.8%
Small Hydro 4.1%
REC's Wind 11.7%
Other Renewables as Defined by Board 6.6%
Large Hydro 6.6%
Natural Gas 6.8%
Market - All in Pool and Outside Purchases see note 2 19.6%
SC&E Coal 51.2%
Total 100.0%
Note 1: Total Renewables as defined by Board = Large Hydro (above 30MW), Small Hydro (30MW or
less), Geothermal, Solar, Wind, Biomass and waste, Fuel Cells, and Unbundled Renewable Energy
Credits (Wind REC's).
Note 2: Market Purchases include UAMPS Pool and other market purchases for which the generation
mix is not defined but is primarily Natural Gas, Coal and Renewables (Wind).
As can be seen, the District is meeting its RPS goal of 21% by 2010 and will strive to
continue to meet the goal.
4. FISCAL IMPACT
There is no fiscal impact associated with this matter.
5. RECOMMENDATION
Receive this report and provide comments to Staff.
Ste hen Hollabaugh -- Michael D. Holley
Assistant General Manager General Manager