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HomeMy WebLinkAbout7 Energy Efficiant Targets Agenda Item # 7 TRUCKEE , . Public Utility District CONSENT To: Board of Directors From: Steven Poncelet Date: February 17, 2010 Subject: Consideration of Adopting Energy Efficiency Targets to meet the SB 1037/AB 2021 Requirement 1. WHY THIS MATTER IS BEFORE THE BOARD SB 1037/AB 2021 requires publicly-owned utilities (POUs) to invest in all cost-effective, reliable and feasible energy efficiency as the first source of power in their energy portfolio. Setting energy efficiency targets requires Board approval. 2. HISTORY SB 1037 requires publicly-owned utilities (POUs) to invest in all cost-effective, reliable and feasible energy efficiency as the first source of power in their energy portfolio. California Assembly Bill 2021 restated that requirement and adds additional independent reporting requirements for POUs to "identify all potentially achievable cost- effective electricity efficiency savings and shall establish annual targets for energy efficiency savings and demand reduction for the next 10-year period'. The Board adopted the first set of energy efficiency targets in 2007 and established a target of 10,014 MWh. This target equated to an average of-0.67% of total load per year. The District, as well as all participating California POU's, must formally adopt their energy efficiency targets on a triennial basis. 3. NEW INFORMATION The District and the Northern California Power Agency (NCPA) are in the process of updating energy efficiency targets through a member-wide study conducted by Summit Blue Consulting. Before the Board is the first. triennial update using input from the Summit Blue Consulting model and with adjustments made by District staff in collaboration with NCPA staff. An excerpt of the energy efficiency potential study results, recommended by staff, is in Attachment 1. A summation of the 10-year results is: Energy Savings: 19,880 MWh (from 2011 through 2020, -1.1% MWh sold/year) Demand Savings: 2.573 MW (from 2011 through 2020, -0.7% per year) These targets are based on the District's documented energy saving results for the past two years but also acknowledges that, over a 10-year period, maintaining the District's energy savings AND cost-effectiveness will become increasingly difficult as the District moves past the 'low hanging fruit' and we start to saturate some programs. This trend of declining energy savings and increasing program costs over times has been well documented in California's electric utilities. The1.1% per year target over 10 years, however, represents significant electric savings and puts the District near the top of California utilities for setting energy savings targets. 4. FISCAL IMPACT The costs for the District's energy conservation programs are included in the approved FY10 & 11 budgets and are projected for future years. There is no direct fiscal impact associated with this action item. 5. RECOMMENDATION Adopt Truckee Donner Public Utility District's energy efficiency targets for the period 2011 through 2020 as follows: Energy Savings: 19,880 MWh Demand Savings: 2.573 MW !J. Steven Poncelet Michael D. Holley Public Information & Conservation Manager General Manager Market Potential Truckee Donner PUD (February,, 2010) Energy Potential(N[Wh) Total: Wm-, 0,11,'itl." "",W-,"i'm , ""I SAW N[Wh 19978 19640 15706 19727 1J62 29017 29257 2,317 2,214 29263 19,880 MWh Percent of Utility 1.23% 1.00% 1.102% 1401% 1.01% 1.14% 1.25% 1.25% 1.17% 1.118% 1.1% Average Per Year Forecast Demand Potential(kW) Total: Now III! kW 197 164 187 224 262 291 308 315 313 312 2,573 kW Percent of Utility 0.55% 0.46%, 0.52% 0.62% 0.72% 0.81% 0.85%, 0.86% 0k86%11 0.85°�/° 0.7% Average IForecast Per Year > 0 3 CD