HomeMy WebLinkAbout#9 Power and Resource Plan Agenda Item # 9
,,
ACTION
To: Board of Directors
From: Stephen Hollabaugh
Date: October 21, 2009
Subject: Consideration of the Adoption of the 2010 and 2011 Purchase
Power and Resource Plan
1. WHY THIS MATTER IS BEFORE THE BOARD
This item is an update of the 2010 and 2011 Purchase Power and Resource Plan for
the budgets. Only the Board can adopt the Purchase Power and Resource Plan.
2. HISTORY
On September 2, 2009 a workshop on the 2010 & 2011 Purchase Power and
Resource Plan was presented.
In 2008 and 2009, the District diversified its 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
The change from the September 2, 2009 presentation is the start of the UAMPS wind
project is now starting in November 2010 rather than July 2010. This change reduces
the 2010 budget by $70,467. This change does not change the 2011 proposed
Purchase Power and Resource budget.
PURCHASE POWER PLAN EXPENDITURES DETAIL
2010 B UD GET
2009 to 2010
BUDGET Budget $ BUDGET
Purchased Power and Resource Costs 2009 2010 CHANGE
Total Energy Supply-Various $10,307,465 $ 9,765,024 $ (542,441)
$63.15 $61.03
ransmission-SierraPacificPowerCompany $ 1,043,766 $ 1,043,766 $ -
Scheduling-NCPA $ 61,200 $ 75,348 $ 14,148
Power Supply Costs from Market Purchases(NCPA) $ - $ - $ -
APAcost!(cred it)toward MWh's ($130,396) $39,616 $170,012
Total Bulk Power Costs $ 11,282,034 $ 10,923,753 $ (358,281)
-3.2%
Total Annual MWh 163,220 160,000 -3,220
-1.97 0
Total Delivered Cost$/MWH $69.1 $68.3 - 0.85
-1.23%
PURCHASE POWER PLAN EXPENDITURES DETAIL
2011 BUDGET
2010 to 2011
Budget Budget $ BUDGET
Purchased Power and Resource Costs 2010 2011 CHANGE
otaI EnergySupply-Various $ 9,765,024 $ 10,130,484 $ 365,460
$61.03 $62.53
Transmission-Sierra Pacific Power Company $ 1,043,766 $ 1,043,766 $ -
Scheduling -NCPA $ 75,348 $ 77,993 $ 2,645
Power Supply Costs from Market Purchases(NCPA) $ - $ -
APA cost/(credit)toward MWh's $39,616 $76,416 $36,801
Total Bulk Power Costs $ 10,923,753 $ 11,328,658 $ 404,905
3.6%
Total Annual MWh 160,000 162,000 2,000
1.25%
Total Delivered Cost$/MWH $68.3 $69.9 $1.66
2.43%
The 2010 & 2011 Plans assume costs for natural gas, electric market purchases and
4. FISCAL IMPACT
The final Purchase Power and Resource Plan will become part of the budget for 2010
and 2011.
5. RECOMMENDATION
Adopt the 2010 and 2011 Purchase Power and Resource Plan.
Stephen Hollabaugh Michael D. Holley
Assistant General Manager General Manager