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HomeMy WebLinkAbout11,FY14&FY15 Purchase Power PlanBudget Item # ii FY14 & FY15 Purchase Power Plan September 18, 2013 Background / History Mission Statement of Truckee Donner PUD • "The Mission of Truckee Donner Public Utility District is to provide reliable and high quality water and electrical power services while meeting customer demand, and to manage District resources in a safe open, responsible, environmentally sound manner at the lowest practical cost. " 2 Background / History Renewable Portfolio Standard • 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 33% of renewable resources by 2020 3 Conservation is Considered First Resource • Forecast assumes that load increases by only 1 %annually in 2014 and remains flat in 2015 • Conservation is expected to reduce 1-3% of total load — Offsets growth that would otherwise require additional resources — Greater conservation will reduce market purchases 0 History and Future Forecasted Load (GWh) • 2008 Actual Load = 1601189 2013 Forecasted Load = 1631082 • 2009 Actual Load = 1571695 2014 Forecasted Load = 1641173 • 2010 Actual Load = 1581494 2015 Forecasted Load = 1641729 • 2011 Actual Load = 1601544 • 2012 Actual Load = 1561497 170,000 165,000 160,000 G 155,000 W 150,000 Forecast Load GWh h 145,000 140,000 Actual Load GWh 135, 000 130, 000 125,000 120,000 O� OR O� 00 - LO 4 LO O� O� tiO ,yti `y'l' ,y3 10 LO y000 LO y0 LO y0 ti� tih LO yO 5 Future Portofilio (Risk vs. Benefit) • Future portfolio (FY14& FY15 and beyond) is intended to balance: — Conservation — Renewable Resources — Cost/Rates — Resource Diversity — Contract Duration — Price Volatility a Existing Resources • Existing (FY13) renewable resources are: — Stampede Dam —Small hydro — Western CVP —Large hydro (sold into NCPA Pool) — Murray City —Landfill gas — UAMPS Pleasant Valley —Wind — Horse Butte Wind Project UAMPS —Wind • FY14 & FY15 includes no new renewable resources: — No purchase of unbundled REC's • FY16 Possible new renewable resources are: — Waste Heat generation from Kern River natural gas compressor station (Veyo station, carbon free) 7 New Information • Proposed Resource Portfolio - FY14 DAMPS Pool Payson - Nat Gas 3.3% New Information Proposed Resource Portfolio — FY15 DAMPS Pool Payson - Nat Gas 3.3% Renewable Portfolio Standard (RPS) • RPS is calculated by the following equation: Eligible Renewables MWh / Retail Sales MWh • Definition of Retail Sales "Sales of electricity by a POU toend-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)." • Will discuss in next presentation tonight CARB Cap and Trade Revenue from Sale of Allowances Consigned by TDPUD, 1.L $242,160 (Auction 1) $204,300 (Auction 2) $210,000 (Auction 3) $206,102 (Auction 4) $862,562 Total to be used in 2014 Energy Supply Costs • The all -in budgeted energy supply cost excluding transmission and scheduling costs are: FY12 (budget) 66.4 FY12 (actual) 65.1 FY13 (projection) 66.6 FY14 (forecast) 67.7 FY15 (forecast) 68.4 12 Purchase Power Plan Expenditure Detail - Budget FY1 3 vs. FY1 4 2013 to 2014 $ BUDGET Budget Budget Purchased Power and Resource Costs 2013 2014 CHANGE Total Energy Supply - Various $10,918,075 $11,191,445 $273,37 $66.95 $67.95 Transmission - NVEnergy $ 1,081,033 $1,204,628 $123,59 Scheduling - NCPA $73,226 $75,423 $2,197 APA cost/(credit) toward MWh's ($28,012) ($28,012) $ Total Bulk Power Costs $ 12,044,322 $ 12,443,484 $ 399,162 3.2% 1,631 Total Annual MWh 163,082 164,713 1.00% $1.6 Total Delivered Cost $/MWH $73.85 $75.55 2.24% 13 °"TF�UCKEE DOWNER i;Pubiic Utility District Purchase Power Plan Expenditure Detail - Budget FY1 4 vs. FY1 5 2014 to 2015 $ BUDGET Budget Budget Purchased Power and Resource Costs 2014 2015 CHANGE Total Energy Supply - Various $11,191,445 $11,331,030 $139,58 $67.95 $68.7 Transmission - NVEnergy $1,204,628 $1,216,674 $12,04 Scheduling - NCPA $75,423 $75,42 $ APA cost/(credit) toward MWh's ($28,012) ($28,012) $ Total Bulk Power Costs $ 127443,484 $ 12,595,115 $ 151,630 1.2% 1 Total Annual MWh 164,713 164,729 0.01 % $0.91 Total Delivered Cost $/MWH $75.55 $76.46 1.19 14 °"TF�UCKEE DOWNER i;Pubiic Utility District Fiscal Impact • Resource Plan: • Achieves a projected FY14 all -in cost in the range of $75.55/MWh • Achieves a projected FY15 all -in cost in the range of $76.46/MWh • Minimizes price volatility due to fuel costs and weather risk 15 Recommendation Receive this report and provide input to staff 16