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HomeMy WebLinkAbout18 Purchase Power Resource Review WORKSHOP ITEM #18 Resource ReviewPurchase Power Resource ReviewPurchase Power June 6, 2018 Purchase Power Resource Review Combination of new resources and/or market power purchases•Larger additions to resources portfolio will be required after 2023•Additions may result in selling excess power at a loss•Smaller additions to resource portfolio possible through 2023•resourced to 2023-ellwDistrict is •Summary of purchase power resources out to 2030•actual versus budgeted purchase power costs for 2017discuss On March 7, 2018, a workshop was presented to the Board to •BACKGROUND / HISTORY Purchase Power Resource Review Purchase Power Resource Review Biomass power was available for under $64/MWhLoyaltonMr. Steve Frisch claimed that –Biomass generation Loyalton3.scale solar greater than $40/MWh-job if she priced utilityan individual claimed she would be fired from her –scale solar -Utility2.than CFPP projectdocument was proof that solar and other renewables are less expensive it was claimed that this –Xcel Energy All Source Solicitation Report 1.In summary, the following comments were made•free renewable resources-of carbonSeveral individuals made public comments about pricing and availability •Boardthe for consideration to presented modular nuclear reactor item was the UAMPS Carbon Free Power Project (CFPP) small 2018, April 4, On •BACKGROUND / HISTORY Purchase Power Resource Review NEW INFORMATION 2016 2017 Five-year Market 2012-17 (Exist)Five-year Market 2017-22 (New)TCID Small HydroTrans Jordan - Land Fill GasStampede - Small HydroFallon Exchange for StampedePleasant Valley - WindNebo Power Plant - Natural GasHorse Butte Wind - WindVeyo Heat Recovery 2017Open Position-UAMPS Pool / Mkt 2030-Resources (MWh) By Year 2014 200,000180,000160,000140,000120,000100,00080 ,00060,00040,00020,0000 Purchase Power Resource ReviewPurchase Power Resource Review 2030–Resources (MWh) by Year 2014 • NEW INFORMATION More information likely available later this year•-Utility•projectVeyoHeat recovery project in Wyoming similar to the •UAMPS has 2 projects in preliminary stage of investigation•optio ns through UAMPSfree and renewable resource -staff is investigating carbonDistrict •Purchase Power Resource ReviewPurchase Power Resource Review NEW INFORMATION Biomass generationLoyalton•generationsolar scale -Utility•Xcel Energy All Source Solicitation Report•commentassertions made during public which contradicts the information by staff has revealed Investigation •meetingat the April 4, 2018 Board statements made during public comment followed up on staff District •Purchase Power Resource ReviewPurchase Power Resource Review NEW INFORMATION Economies of scale may not be available to District•Massive size of Excel compared to UAMPS and the District•Actual prices likely higher•Prices are indicative only and do not include all costs•Qualifying statements made by Xcel Energy•31/MWh$19.3/MWh, and solar at $at bid for solar with battery storage was Median •costsBaseload resources consisting of natural gas listed, but without energy •technologymedian bid prices for energy by generation able depicting T•All Source Solicitation ReportEnergy Xcel •Purchase Power Resource ReviewPurchase Power Resource Review NEW INFORMATION No response to District communication•business developmentfollowed up with a communication to the managing director of Staff •projects$30/MWh range she said that there are no asked about pricing and availability of solar power in the When •pricingresponsible for ot N•followed up by phone and email with the individualStaff •solar generationscale -Utility•Purchase Power Resource ReviewPurchase Power Resource Review NEW INFORMATION truefor under $64/MWh is simply not Biomass energy is available LoyaltonMr. Steve Frisch’s statement that •procurement requirements mandated by California SB 859iomass B•is well above market price $97.5/MWh •97.5/MWh and term of 5 yearsterms include an energy price of $PSA •and SMUDlarger public power utilities including LADWP, IID, Several •(PSA) were signed with APR greements Aales SPower December 13, 2017 and February 2, 2018, On •80/MWhabove $estimates 2017 with -District staff in midpproached A•Renewable Power (ARP) bought the facility American •2010 when it was shut downuntil was built in the late 1980s and remained in commercial operation Plant •Loyalton•Purchase Power Resource ReviewPurchase Power Resource Review Purchase Power Resource Review generationresources to backstop intermittent and diversified portfolio must include baseload, flexible Balanced •to note that wind and solar are intermittent resources onlyImportant •misleadingstatements made during the public comment period were very The •investigationsummary, and based on staff’s In •NEW INFORMATION Purchase Power Resource Review FISCAL IMPACT this Workshop itemis no fiscal impact associated with There •Purchase Power Resource ReviewPurchase Power Resource Review RECOMMENDATION Provide input to staff•Purchase Power Resource ReviewPurchase Power Resource Review