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HomeMy WebLinkAbout15 Purchase Power Plan Agenda Item ## 15 TRUCKEE DONNER IJ fil i I,-, BUDGET To: Board of Directors From: Stephen Hollabaugh Date: October 05, 2011 Subject: 2012 and 2013 Budget: Purchase Power Plan 1. WHY THIS MATTER IS BEFORE THE BOARD This item begins the process for preparation of the 2012 and 2013 budget. 2. HISTORY In 2008 and 2009, the District started a diverse purchase power portfolio that includes many different resources and had p p t now d the goal of meeting the Renewable Portfolio Standard with conservation as a first resource. In 2010 and 2011 additional goals were to provide an adequate, reliable ditional q 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 submit to the Board of Directors a two year draft shall a art of the Y ft budget. The Purchase Power Plan is p e 2012 & 2013 draft budget. 3. NEW INFORMATION The 2012 and 2013 Purchase Power Plan continues with the goals of the 2010 and 2011 plan. The District will maintain a more diversified purchase power includes many different resources and has the goals of meeting the Renewable Portfolio Standard. The District may be adopting by the end of 2011 its "Pr Plan" to implement SBx1 2, 33% RPS by 2020. "Procurement The 2012 Purchase Power Plan projects a similar load compared to 2011 with energy conservation and energy efficiency measure p s accounting for 1% to 3% of the load. Greater conservation has and will reduce future market purchases. T projects a flat or same load as 20 p he 2012 Plan 11 with conservation and energy efficiency measures again accounting for 1% to 3% of the load reduction. The 2013 has a modest growth rate compared to 2012. The budgeted load in MWh is shown below. Year Budgeted MWh 2011 162,000 2012 162,000 2013 1637082 PURCHASE POWER PLAN EXPENDITURES DETAIL 2012 BUDGET .. ... . ............. 2011 to 2012 Budget Budget $BUDGET Purchased Power and Resource Costsl 2011 2012 CHANGE Total Energy Supply-Various $109130,484 $10,757,413 $626,929 $62.53 $66.40 Transmission-NVEne r y $ 1,043,766 $1,049,546 $52781 Scheduling-NCPA $ 77,993 $682859 ($9,134 ) WAPA cost/(credit)toward MVNh's $76,416 ....... ... . ($289012) ($1041429) Total Bulk Power Costs $1193289658 $119847,806 $ 5199147 4.4% Total Annual MVVh 162,000 162,000 0 0.00% Total Delivered Cost$/M NH $69.93 $73.13 $3.20 4.38% PURCHASE POWER PLAN EXPENDITURES DETAIL ........... 2013 BUDGET 2012 to 2013 Budget Budget $BUDGET Purchased Power and Resource Costs 2012 2013 CHANGE Total Energy Sup ply-Various $10,757,413 $10,918,075 $160,663 $66.40 $66.95 Transmission-NVEnergy $1,049,546 $1,081,033 $31,486 Scheduling-NCPA $68,859 - . $73,226 $4,367 WAPA cost/(credit)toward MWh's ($28,012) ($28,012) $0 Total Bulk Power Costs $11,847,806 $121044,322 $ 196,516 1.6% Total Annual MVVh 162,000 163,082 1,082 0.67% Total Delivered Cost$/MM $73.13 $73.85 $0.72 0.97% The 2012 & 2013 Plans assume costs for natural gas, electric market purchases and renewable market purchases along with average hydrologic conditions. The various resources are shown in the graphs below: 2012 Resource Mix Payson-Nat Net Market Gas 5% 6% Wind-PPM OOA Fallon Exchange 2% 2013 Resource Mix Net Market Payson- Nat Gas 4% 6% Wind-PPM WO 5% Fallon Exchange-� 3% 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 2012 & 2013. 5. RECOMMENDATION Receive this report and provide comments to staff. Stephen Hollabaugh Michael D. Holley Assistant General Manager General Manager