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Home My WebLink About#7 Department updates AGENDA ITEM #7 Public Utility District m MEETING DATE: July 17, 2024 TO: Board of Directors FROM: SUBJECT: This item provides time for each Department to update the Board of D i recto rs. APPROVED BY: Brian C. Wright, General Manager RECOMMENDATION: BACKGROUND: ANALYSIS AND BODY: Electric Utility: • Truckee Substation was offline for most of June due to non-TDPUD construction work, and requiring our system to take transmission power from the PG&E and Liberty transmission systems for extended durations. Once the substation was returned to service, the District's distribution system was placed in non-reclose mode ("One-Shot") to help reduce the threat of our distribution system creating a wildfire during the dry months. • In June, Pacific Corp announced a transmission rate increase of approximately 40% starting July 2024 after receiving approval from the Federal Energy Regulatory Commission (FERC). The primary drivers behind the rate increase are the recovery of financial liabilities associated with the James Fire in 2020 and the increased investment in transmission infrastructure in the west. As a result of the transmission rate increase, the District is expected to experience an overall increase in energy expense of $350,000 to $400,000 per year. Historically, the transmission rate increase is usually less than 5% annually. We are working with the UAMPS members to see if there are options to reduce the impact of this increase. • The graphs below show the District's energy (kWh), and demand (kW) as compared to the previous years through May 2024. The monthly comparison shows we are using 4% less energy compared to the last 5 years, and 11% less than the previous year. However, our demand is the same as the previous record high. One of the notable drivers behind this energy use would be the Page 1 of 9 Page 4 of 180 increase in electric vehicle charging because they tend to draw a high demand (kW), but low overall energy. It signifies the need to continue modernizing our distribution grid, and adjusting our system design to reflect how our customers are now choosing to use power. Energy(kWh) Demand (kW) 25,000,000 40,O0o 35,000 20,000,000 � 30,000 15,OOQ000 25,000 20,000 10,000,000 15,000 5,000,000 _ 10,OD0 5,000 0 0 z4F11- P obi aa�'IQ` a�,pe ,acJaA¢��aA �as2F PQc� lJ�eP3�av'u�¢�� oft ae�.16 1 e�1p �` ?o Oec —1.0 —2021 —2022 —2023 -2024 —2020 —2.1 —1012 —2.3 — -2.4 Significant Outage Review: • 6/28/24 - Transmission outage in PG&E's system on the summit, 4,000 customers affected, outage duration 75 minutes. PG&E requested de- energization of NV Energy transmission to accommodate the repairs. • 7/5/24 - Unknown issue in the Martis Valley primary distrubution system, 120 customers affected, outage duration 60 minutes • 7/9/24 - Vehicle into NV Energy Pole, Tahoe Donner and Donner Lake areas, 1,800 customers affected, 5 to 60-minute duration over three sdeparate but related events • 7/12/24 - Animal on a primary distribution component, 1,800 customers affected in Donner Lake and Tahoe Donner, outage duration 90 minutes. Water Utility: Water Deliveries Wate,2,oduc0on(Gallons) Y �A 1111 �% f w tia{�A 1hOy 1~a� sgwo.aw 'f ■2024WeEudien •2MR.d-n, c31-A—P Page 2 of 9 Page 5 of 180 The table above shows lower production during 2023 due to lower temperatures and abnormally high precipitation and late snowfall. Demand for 2024 is trending closer to the three-year average. When production from May 2023 is compared to May 2024, production was up by 17%. Whereas, when the three-year average is compared to last month, the production was down by 12%. System Updates The Water Department construction season is fully underway and all of this year's projects have been bid except for re-coating tank 6170A and Hirschdale waterline realignment. • Ski Run Tank Replacement- The tank replacement is on time and on budget. The following picture shows the new ring that will eventually hold the welded steel tank. t L,' 1 H r� ,.gam• t _ _ _ ti ' 5 t • Pioneer Trail Pump Station— During the month of May, staff attempted to commission the site, however two of the four pumps tolerances were too tight. This has resulted in new wear rings and propellers being installed in the two pumps. The repairing of the pumps has been delayed Page 3 of 9 Page 6 of 180 the project. As of the writing of this report, staff believes that commissioning of the site will resume during the week of July 15tn • Tank 617013- Contractor is disinfecting and preparing to fill the tank. Once the tank has been filled, water quality testing will commence, and we will bring the tank online as soon as possible. Page 4 of 9 Page 7 of 180 jl -------------- rA • Pipeline Replacement Project continues on upper Ski Slope and parts of Northwoods Boulevard in Tahoe Donner. The contractor is expecting to start pressure testing and disinfecting the pipe in mid-July. • Prosser Annex Well Rehabilitation (performed by Eaton Pump) commenced on April 2nd, with anticipated completion on June 1 It. Page 5 of 9 Page 8 of 180 • EPA Revised Lead and Copper Rule compliance data collection has been completed. This consisted of surveying every customer side lateral and determining the date of construction. If the lateral was constructed prior to 1986, inspection of the materials used on the customer side of the meter was required to verify no lead products were used in the construction of the lateral. • Master Metering Protect continues to move forward with the installation of water meters in specific areas of the water system to increase the accuracy of the District's water system data collection and annual water audits . (Prosser Lake View Zone, Red Mountain Zone) • The Water Department is working to finalize Hirschdale easement documents to construct intertie between the Truckee Main system and Hirschdale. (Anticipated completion in fall of 2024) • Installation of emergency generator backup at Falcon Point Pump Station, to be completed in the summer of 2024. General Services - Facilities • The exterior siding stucco repair/improvement project is substantially complete. • The 1 st floor east wing remodel project is well underway and progressing on- schedule for late fall completion. • Asphalt sealing of public access and employee parking lots was completed in June. Accounting • Workers Compensation insurance (ACWA JPIA) renewal effective 7/1/2024 through 6/30/2025 was favorable with an overall rate of 2.28% of payroll, which is 9% decrease compared to 23/24 overall rate of 2.5%. The improvement was based on overall rate improvement and a favorable decrease in the District's experience modifier from 1.08 to 1.04. The lower rate is favorable to budget for FY24 and FY25, easing labor overhead rate cost component in the estimated range of$20k to $35k per year. • By the Numbers report for June 2024 is provided as Attachment 1. The 2024 annual mid-year financial update to the board is scheduled for the August 7, 2024, board meeting. Customer Service - last month's survey results Page 6 of 9 Page 9 of 180 Overall, how satisfied were you with the experience with our customer... Answered:38 Skipped: 1000A BOCA BOCA 70% CSOCA 50CA 40% 30CA 2005 1046 OCA Extremely Very satisfied Somewhat Notso Not at all satisfied satisfied satisfied satisfied Human Resources and Risk Staffing • Adrian Zarate returned for his second season as a Water Helper! • Welcome Mark Costa as our new Management Analyst 1 on 7/08 • Carlos Reyes was promoted to Warehouse Utility Worker Current Job Openings: Contract Administrator-in process, 3 internal applicants Customer Service Representative- in process District Employee Events 6/27- Reno Ace's Game 7/03 - Birthday&Anniversary celebrations-4th of July popsicles! 7/04-4th of July Parade Core Value Recognition Alex Spychalsky-Work Life Balance Scott Botn -Accountability Forrest Heston - Integrity Staff Development 8/01- District/Family Day Safety& Risk June Safety Month 6/25 -JPIA site visit Page 7 of 9 Page 10 of 180 7/17-Workplace Violence Program Training Public Information and Strategic Affairs Communications and Outreach It has been a busy period for communications for the District. This includes: the launch of fire season; a kick-off meeting with local public safety partners regarding wildfire safety power outages; the District's move to 'one-shot' to reduce the chances that our electric facilities are the ignition source of a wildfire; and attending the Tahoe Donner annual meeting and Expo where staff continued to educate our customers on NV Energy's wildfire safety power outages (PSOM, etc.), the upcoming Time-of-Use (TOU) optional electric rate, rebates, and water conservation regulations. The District was also asked by Moonshine Ink to submit an article on how best to cool your home or business in Truckee, where we took the opportunity to also promote the many District conservation programs and rebates. Strategic Affairs The California State Water Resources Control Board on July 3rd unanimously adopted the Making Conservation a California Way of Life regulation along with a resolution and change sheet. During the adoption hearing, SWRCB staff made a few changes to the resolution to accommodate a request to have an advisory board review implementation over time. This complex new regulation, which addresses indoor water use, outdoor water use, and District water loss, will be sent to the Office of Administrative Law for review and is expected to be finalized by October and will take effect January 1, 2025. District staff continue to evaluate the impacts and work with our customers to help everyone comply. More to come. The District has been working with the Northern California Power Agency (NCPA) on their annual legislative staff tour which will take place on July 16-18th with stops visiting public power in Redding, Portola, and Truckee. District staff has been asked to participate in a wildfire panel in Portola on Wednesday, July 17th and the tour will visit the District on Thursday, July 18th. The District portion of the tour will include a presentation by District staff on our key electric programs, and a presentation by the District/Town of Truckee on collaboration on energy conservation and greenhouse gas reduction. The stop will also include a field visit to see some of the District's vegetation work. This is a private event and attendance by the Board is encouraged. The District did host a visit from Congressman Kevin Kiley on Wednesday, June 19th. The purpose of the visit was to further introduce the Congressman to the District, highlight key water and electric issues, and seek opportunities to support each other. The original agenda included a presentation in the District Boardroom along with a filed visit to electric and water facilities. The visit had been planned for about one hour but unfortunately, due to delays, the Congressman arrived -30 minutes late. As a result, staff suggested to the Congressman that we use the time in the field visiting the facilities, which is what occurred. Overall, this was a very productive visit, and we are well positioned to continue working with the Congressman going forward. Page 8 of 9 Page 11 of 180 GOALS AND OBJECTIVES: District Code 1.05.020 Objectives: 1. Responsibly serve the public. 2. Provide a healthy and safe work environment for all District employees. 3. Provide reliable and high quality water supply and distribution system to meet current and future needs. 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. 6. Manage the District in an effective, efficient and fiscally responsible manner. District Code 1.05.030 Goals: 1. Manage for Financial Stability and Resiliency 2. Environmental Stewardship: Create a sustainable resilient environment for all our communities. 3. Engage with our customers and communities in a welcoming and transparent way to identify opportunities. 4. Take the best of private sector thinking to modernize the utility and add value to our communities. 5. Developing an inclusive culture drives organizational integration and success. FISCAL IMPACT: ATTACHMENTS: 1. By the Numbers June 2024 Page 9 of 9 Page 12 of 180 TRUCKEE DONNER )!WPublic Utility District By the Numbers YTD June 2024 Customer Billing Metrics Electric Change to Prior Year Average per Month Water Change to Prior Year 141775 116 0.8% Number of Accounts 131671 79 0.6% 1 X2 (77) -7.0% Billed Volume per Account 4,420 345 8.5% $ 0.2174 $ 0.023 12.1% Billed Dollars / Billed Volume $ 0.0243 $ (0.001) -3.7% $ 228 $ 18.58 8.9% Average Bill $ 110 $ 9.20 9.1% $ 26.1 $ 1.1 4.3% Billed AR Past Due 90+ days $ 16.8 $ 4.9 40.9% $ 1.3 5.1% AR 90+var to last month $ (0.8) -4.6% Operating Electric Variance to Budget Dollars in Thousands Water Variance to Budget $ 2051 312 1 .5% Revenues $ V03 231 2.6% 71649 (276) -3.5% - Expenses 51261 (58) -1 .1 % 6,938 (232) -3.2% - Purchased Power 668 (211 ) -24.0% $ 61065 820 15.6% = Operating Net Result $ 31274 500 18.0% Excludes Depreciation(non-cash)operating expense By the Numbers-Page 1 of 2 Page 13 of 180 TRUCKEE DONNER Public Utility District By the Numbers June 2024 :7�apital Expenditures1 Key Reserve Balances Electric Variance to Budget Dollars in Thousands Water Variance to Budget $ 11992 (11 ,368) -85.1 % Capital Expenditures $ 11447 (4,450) -75.5% Actual YTD Variances-Red Over Budget Green Under Budget Actual YTD $ 101517 (2,843) -21 .3% Capital Expenditures $ 91990 4,092 69.4% Forecast Annual(draft) Variances-Red Over Budget Green Under Budget Forecast Annual(draft) TIMING OF PROJECTS BETWEEN YEARS IS MAIN VARIANCE DRIVER $ 10,814 4,576 73.4% Capital Reserve Balance $ 4,223 484 12.9% $ 6,880 (20) -0.3% ® 2022 Debt Project Funds Bal. $ 556 556 - $ 5,888 (71 ) -1 .2% Rate Reserve Balance NA $ 10,132 2,631 35.1 % Operating Reserve Balance $ 9,023 2,402 36.3% By the Numbers-Page 2 of 2 Page 14 of 180