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Home My WebLink About8 Power Content Label AGENDA ITEM #8 Public Utility District m MEETING DATE: September 6, 2023 TO: Board of Directors FROM: Joe Horvath, Assistant General Manager/ Electric Utility Director SUBJECT: Consideration of Resolution 2023-10, Approving Submission and Attesting to the Veracity of the 2022 Power Source Disclosure Report and Power Content Label APPROVED BY: Brian C. Wright, General Manager RECOMMENDATION: Adopt Resolution 2023-10 approving the submission and attesting to the veracity of the 2022 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. ANALYSIS AND BODY: District staff has compiled the data for the 2022 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 submits this report Page 1 of 3 Page 13 of 85 annually to California Air Resources Board (CARB) in compliance with State regulations and CARB Greenhouse Gas Emissions reporting requirements. Staff have further reviewed this information and are confident in the accuracy of the information being reported. The proposed Resolution 2023-10 (Attachment 1) approves the 2022 PSD Report and PCL submission and provides an attestation of the veracity of the reports as required by the CEC for exemption from the third-party CPA audit requirement. The 2022 PSD Report and PCL are included as Exhibits A and B respectively, in Resolution 2023-10. The 2022 PCL (Attachment 1, Exhibit B) lists the total eligible renewable percentage of 45.5%, and the total percentage of retail sales covered by retired unbundled renewable energy credits (RECs) as 14.4%. 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 45.5%. 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 14.4% of retail sales as shown in the PCL. Therefore, the District's RPS achievement for 2022 is the sum of these two numbers, or 59.9% RPS. The District's RPS achievement of 59.9% for 2022 is about 2.6% lower than the 2021 RPS value of 61.5%. The factors contributing to a lower RPS value this year include the delay of Red Mesa solar being replaced by unspecified market purchases, a 7% reduction in wind generation and a 2% reduction in landfill gas generation, along with an increase of 3% in total retail energy sales compared to 2021. 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 2022 as in 2021. However, the RPS value will increase with the addition of the Red Mesa Solar Project to the resource portfolio in 2023. The Red Mesa project began commercial energy production in April, 2023. This energy is renewable and carbon-free, and is expected to increase the District's RPS achievements to approximately 70% or more starting with the 2023 reporting year. GOALS AND OBJECTIVES: District Code 1 .05.020 Objectives: 1. Responsibly serve the public. 4. Provide reliable and high quality electric supply and distribution system to meet current and future needs. 5. Manage the District in an environmentally sound manner. District Code 1 .05.030 Goals: 1. Manage for Financial Stability and Resiliency Page 2 of 3 Page 14 of 85 2. Environmental Stewardship: Create a sustainable resilient environment for all our communities. FISCAL IMPACT: There is no fiscal impact associated with approving the submission and attesting to the veracity of the 2022 Power Source Disclosure Report and Power Content Label. ATTACHMENTS: 1. R2023-10 - Approving Power Source Disclosure 2022 Page 3 of 3 Page 15 of 85 ■ UCKEE t DistrictPublic Utility Resolution No. 2023-10 APPROVING SUBMISSION AND ATTESTING TO THE VERACITY OF THE 2022 POWER SOURCE DISCLOSURE REPORT AND 2022 POWER CONTENT LABEL WHEREAS,the Truckee Donner Public Utility District(District)is a public agency of the State of California,and owns and operates an Electric System for the provision of electric service at retail to the general public within its service area; and WHEREAS,Senate Bill 1305(SB 1305),adopted in 1997 and codified in Public Utilities Code sections 398.1 to 398.5,established a Power Source Disclosure Program that directs all California retail suppliers of electricityto disclose to consumers the sources of energy used to provide the electric service in an accurate and easy to understand manner; and WHEREAS, the California Energy Commission (CEC) regulation implementing SB 1305 requires publicly owned electric utilities, like the District,to have the Board attest to the veracity of the Power Source Disclosure (PSD) Report and Power Content Label (PCL)in lieu of an audit by a third-party certified public accountant;and WHEREAS, District staff accurately prepared the 2022 PSD Report and PCL for submission to the CEC and District customers based on information provided and verified by our electric suppliers including Utah Associated Municipal Power Systems, Western Area Power Administration, Western Electricity Coordinating Council, and a third-party verifier who prepares a report for all electricity transactions and submits this report annually to the California Air Resources Board for Greenhouse Gas Emissions reporting requirements; and WHEREAS,the District generally submits a PSD Report to the CEC by June 1 st of each year, and the PCL is made available to our customers by October 1st of each year in accordance with CEC requirements and deadlines. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the District as follows: The Board of Directors approves the submission of the 2022 Power Source Disclosure Report(Exhibit A)and 2022 Power Content Label (Exhibit B)to the California Energy Commission and hereby provides attestation of the veracity of the reports submitted by staff. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the 6th day of September, 2023, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: TRUCKEE DONNER PUBLIC UTILITY DISTRICT By Jeff Bender, President of the Board ATTEST: Shanna D. Kuhlemier, CMC, District Clerk Page 16 of 85 EXHIBIT A Version: April 2023 Instructions: Enter information about power procurements underlying this electricity portfolio for which your company is filing the Annual Report. 160,201 Insert additional rows as needed. All fields in white should be filled out. Fields in grey auto-populate as needed and should not be filled out. For •" ' • 106,174 EIA IDs for unspecified power or specified system mixes from asset-controlling suppliers, enter "Unspecified Power", "BPA", or "Tacoma Power" as •- - 54,027 applicable. For specified procurements of ACS power, use the ACS Procurement Calculator to calculate the resource breakdown comprising the ' • • •- •• ACS system mix. Procurements of unspecified power must not be entered as line items below; unspecified power will be calculated •- - 15,567 automatically in cell N9. Unbundled RECs must not be entered on Schedule 1; these products must be entered on Schedule 2. At the bottom •- •• • - • 17,795 portion of the schedule, provide the other electricity end-uses that are not retail sales including, but not limited to transmission and distribution losses •- - •- • • - - - • - 72,812 or municipal street lighting. Amounts should be in megawatt-hours. • • - 0.1893 r + im 0 a 1 ' 0 . I Horse Butte Wind Wind Idaho W3260 62359 57890 42973 178 42,795 42,795 - - Pleasant Valley Wind Energy Project Wind Wyoming W236 61559 56093 539 86 453 453 - - Trans Jordan Generating Station Biomass & biowa Utah W 1405 61356 56853 25,958 521 25,437 25,437 0.0032 80 Stampede Powerplant Eligible hydro California W1177 61046 7066 4,127 4,127 4,127 - - - - #N/A - - #N/A - #N/A - - #N/A - - #N/A - - #N/A - #N/A - - #N/A - - #N/A - - #N/A - #N/A iic Nebo Power Station Natural gas Utah 56177 18,004 2,437 15,567 15,567 0.4580 7,130 Veyo Heat Recovery Project Other Utah 60421 11,107 913 10,194 10,194 - - 26-foot Drop Small Hydro Other Nevada P199 3,503 3,503 3,503 - - Old Lahontan Hydro Other Nevada 6521 4,098 4,098 4,098 - - - - #N/A - - #N/A - - #N/A - - #N/A - - #N/A - - #N/A - - #N/A Page 17 of 85 EXHIBIT A (CONT) Version: April 2023 #N/A #N/A #N/A - #N/A • RETAIL SALES MWt; Transmission Losses 2,995 Distribution Losses 6,670 Page 18 of 85 Version: April 2023 EXHIBIT A (CONT) 2022 POWER SOURCE DISCLOSURE REPORTSCHEDULE 2: RETIRED UNBUNDLED - December TRUCKEE DO PUBLIC INSTRUCTIONS: Enter information about retired unbundled RECs associated with this electricity portfolio. Insert additional rows as needed. All fields in white should be filled out. Fields in grey auto- populate as needed and should not be filled out. • 23,116 RETIRED UNBUNDLED RE State or Facility Name FuelType Province RPS ID Total Retired (in MWh) Horse Butte Wind - REC Only Wind Idaho 62359 178 Trans Jordan Generation Stations - REC Onl Biomass & biowe Utah 61356 520 Pleasant Valley Wind Energy Project- REC C Wind Wyoming 61559 85 Nimbus -WAPA Small Hydro - REC Only Eligible hydro California 61045 318 Lewiston Powerplant-WAPA Small Hydro - F Eligible hydro California 61044 15 Pleasant Valley Wind Energy Project- REC C Wind Wyoming 61559 22000 Page 19 of 85 EXHIBIT A (CONT) 2022 POWER SOURCE DISCLOSURE ANNUAL REPORT SCHEDULE 3: POWER CONTENT LABEL DATA Instructions: No data input is For the Year Ending December 31, 2022 TRUCKEE DONNER PUBLIC UTILITY DISTRICT needed . suppliers should use these auto-populated calculations to fill out their Power Content Labels. Adjusted Net Percent of Total Procured (MWh) Retail Sales Biomass & Biowaste25,437 15.9% Geothermal 1 1' Eligible Hydroelectric4,127 2.6% Solar 1 1' Wind43,248 27.0% Coal 1 1' Large Hydroelectric 1 1'. Natural gas15,567 9.7% Nuclear 1 1 Other17,795 Unspecified Power54,027 Total160,201 100.0% Total Retail Sales (MWh) 160,201 GHG Emissions Intensity(converted to Ibs COZeIMWh) 417 Percentage of Retail Sales Covered by Retired Unbundled RECs Page 20 of 85 EXHIBIT B 2022 POWER CONTENT LABEL Truckee Donner PUD www.tdpud.org Greenhouse Gas Emissions Energy Resources . • . 2022 CA Intensity • • 2e/MWh) Power Mix Power Mix TDPUD 2022 CA Utility Average Eligible Renewable' 45.5% 35.8% Power Mix Biomass&Biowaste 15.9% 2.1% 417 422 Geothermal 0.0% 4.7% 1000 Eligible Hydroelectric 2.6% 1.1% Solar 0.0% 17.0% 800 ■TDPUD Wind 27.0% 10.8% Power Mix Coal 0.0% 2.1% 600 Large Hydroelectric 0.0% 9.2% 400 - ■2022 CA Natural Gas 9.7% 36.4% Utility Nuclear 0.0% 9.2% 200 Average Other 11.1% 0.1 0 Unspecified Power2 33.7% 7.1% TOTAL 100.0% 100.0% Percentage of Retail Sales Covered by Retired Unbundled RECs 3: 14.4% 'The eligible renewable percentage above does not reflect RPS compliance,which is determined using a different methodology. 2Unspecified power is electricity that has been purchased through open market transactions and is not traceable to a specific generation source. 3Renewable energy credits(RECs)are tracking instruments issued for renewable generation. Unbundled renewable energy credits(RECs) represent renewable generation that was not delivered to serve retail sales. Unbundled RECs are not reflected in the power mix or GHG emissions intensities above. For specific information about this Truckee Donner PUD electricity portfolio, contact: (530) 587-3896 For general information about the https://www.energy.ca.gov/programs-and- Power Content Label, visit: topics/programs/power-source-disclosure-program Page 21 of 85