HomeMy WebLinkAbout12 Purchase Power Plan Agenda Item # 12
DistrictPublic Utility
BUDGET
To: Board of Directors
From: Stephen Hollabaugh
Date: September 02, 2009
Subject: 2010 & 2011 Budget: Purchase Power Plan
1. WHY THIS MATTER IS BEFORE THE BOARD
This item begins the process for preparation of the 2010 and 2011 budget.
2. HISTORY
In 2008 and 2009, the District started a diverse purchase power portfolio that now
includes many different resources and had the goal of meeting the Renewable
Portfolio Standard with conservation as a first resource. Additional goals were to
provide an adequate, reliable and high quality electric supply to meet the current and
future needs of the District.
According to Title 3, Section 3.02.010 of the District Code, the General Manager shall
submit to the Board of Directors a two year draft budget. The Purchase Power Plan is
a part of the 2010 & 2011 draft budget.
3. NEW INFORMATION
The 2010 and 2011 Purchase Power Plan continues with the goals of the 2009 plan.
The District will maintain a more diversified purchase power portfolio that includes
many different resources and has the goals of meeting the Renewable Portfolio
Standard.
The 2010 Purchase Power Plan projects a 2% decrease in load compared to 2009
with energy conservation and energy efficiency measures accounting for 1% to 3% of
the load reduction. Greater conservation has and will reduce future market
purchases. The 2011 Plan projects only a 1% growth compared to 2010 with
conservation and energy efficiency measures again accounting for 1% to 3% of the
load reduction. The budgeted load in MWh is shown below:
Year Budgeted MWh
2009 163,000
2010 160,000
2011 162,000
PURCHASE POWER PLAN EXPENDITURES DETAIL
2010 BUDGET
2009 to 2010
BUDGET Budget $ BUDGET
Purchased Power Costs 2009 2010 CHANGE
Total Energy Supply-Various $ 10,307,465 $ 9,835,491 $ (471,974)
$63.15 $61.47
ransmission-Siena Pacific Power Company $ 1,043,766 $ 1,043,766 $ -
Scheduling-NCPA $ 61,200 $ 75,348 $ 14,148
Power Supply Costs from Market Purchases(NCPA) $ - $ - $ -
APAcostl(cred it)toward MWh's ($1303396) $39,616 $170,012
Total Bulk Power Costs $ 11,282,034 $ 10,994,220 $ (287,814)
-2.6%
Total Annual MWh 163,220 160,000 -3,220
0
Total Delivered Cost$/MWH $69.1 $68.7 0.41
-0.59%
The 2010 & 2011 Plans assume costs for natural gas, electric market purchases and
renewable market purchases along with average hydro conditions.
4. FISCAL IMPACT
There is no direct fiscal impact at this time. The final Purchase Power Plan will
become part of the draft budget for 2010 & 2011.
5. RECOMMENDATION
Receive this report and provide comments to staff.
Stephen Hollabaugh Michael D. Holley
Assistant General Manager General Manager