HomeMy WebLinkAbout9 Power Source Disclosure Approval 2021 AGENDA ITEM #9
Public Utility District
MEETING DATE: September 7, 2022
TO: Board of Directors
FROM: Joe Horvath P.E., Electric Utility Director/Assistant GM
SUBJECT: Consideration to Adopt Resolution 2022-16, Approving
Submission and Attesting to the Veracity of the 2021 Power
Source Disclosure Report and Power Content Label
APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
Adopt Resolution 2022-16 approving the submission and attesting to the veracity of the
2021 Power Source Disclosure Report and Power Content Label.
BACKGROUND:
California Senate Bill (SB) 1305, approved in 1997, directs all California retail suppliers of
electricity to disclose to consumers the sources of energy used to provide the electric
service in an accurate and easy to understand manner. The SB 1305 Report is better
known as the Power Source Disclosure (PSD) Report. The District submits an annual PSD
Report to the California Energy Commission (CEC) by June 1st of each year. The
information contained in the PSD Report is subsequently used to prepare the annual
Power Content Label (PCL) using a PCL template provided to all utilities each year by the
CEC. The PCL is made available to our customers around September of each year, and is
posted on the District's and the CEC's website.
In 2017, the CEC regulation implementing SB 1305 was updated with important changes
that directly affected all electric utilities. The changes included a provision that requires
utilities to engage a third-party certified public accountant (CPA) to perform an audit to
verify the specific purchases and self-consumption of energy by fuel type. The regulation
includes an exemption from the audit requirement for publicly owned electric utilities
(POUs), if the governing board of the POU approves the submission and the veracity of the
reports sent to the CEC.
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ANALYSIS/BODY:
District staff has compiled the data for the 2021 PSD based on information provided and
verified by our electric suppliers including Utah Associated Municipal Power Systems
(UAMPS), Western Area Power Administration (WAPA) and Western Electricity
Coordinating Council (WECC). In addition, the District contracts with a third-party verifier
to prepare a report for all electricity transactions and submit this report annually to
California Air Resources Board (CARB) in compliance with State regulations and CARB
Greenhouse Gas Emissions reporting requirements. Staff has further reviewed this
information and are confident in the accuracy of the information being reported.
The proposed Resolution 2022-16 (Attachment 1)approves the 2021 PSD Report and PCL
submission and provides the attestation on the veracity of the reports as required by the
CEC for exemption from the third-party CPA audit requirement. The 2021 PSD Report and
PCL are included as Exhibits A and B respectively, in Resolution 2022-16.
The 2021 PCL (Attachment 1, Exhibit B) lists the total eligible renewable percentage of
48%, and the total percentage of retail sales covered by retired unbundled renewable
energy credits (RECs) as 13.5%. The District has a diverse portfolio of renewable
resources including hydroelectric, landfill gas, wind, and heat recovery generation. Most of
these resources include the REC attributes that are transferred to the District in
accordance with the energy generated, and are included in the total renewable energy
percentage of 48%. However, several resources including Stampede Hydroelectric, TCID
Hydroelectric, and Veyo Heat Recovery Projects come with a partial amount of RECs, or
no RECs at all. Since these are RPS eligible and/or carbon free resources, the District
purchases unbundled RECs to supply the REC attribute lacking from these resources,
amounting to 13.5% of retail sales as shown in the PCL. Therefore, the District's RPS
achievement for 2021 is the sum of these two numbers, or 61.5% RPS.
The District's RPS achievement of 61.5% for 2021 is about 6% lower than the 2020 RPS
value of 67.4%. The factors contributing to a lower value for 2021 include reduced
hydroelectric and wind generation compared to 2020 and an equipment failure at UAMPS
Veyo Heat Recovery Project which resulted in 4-month long outage at this facility. These
reductions in energy production resulted in a corresponding increase in market energy
purchases which negatively affected the RPS value.
It should also be noted that the District's electric resource portfolio was essentially the
same in 2021 as in 2020. Unfortunately, due to the delay in the operation date of the Red
Mesa Solar Project from 2022 until Q2 of 2023, the resource portfolio will also remain
unchanged for 2022 which will probably result in the RPS value for 2022 being similar to
the 2021 value. However, the RPS value will increase with the addition of the Red Mesa
Solar Project to the resource portfolio in 2023. This energy is renewable and carbon-free,
and is expected to increase the District's RPS achievements to approximately 70%or more
starting in mid-2023.
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GOALS AND OBJECTIVES:
This item is in support of the following objectives and goals:
District Code 1.05.020 Objectives:
1. Responsibly serve the public.
5. Manage the District in an environmentally sound manner.
Strategic Goals:
1. Manage for Financial Stability and Resiliency.
2. Environmental Stewardship: Create a sustainable resilient environment for all of our
communities.
FISCAL IMPACT:
There is no fiscal impact associated with approving the submission and attesting to the
veracity of the 2021 Power Source Disclosure Report and Power Content Label.
ATTACHMENTS:
1 - Resolution 2022-16, Approving Submission and Attesting to the Veracity of the
2021 Power Source Disclosure Report and Power Content Label
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