HomeMy WebLinkAbout#12 Aspen Services Contract AGENDA ITEM #12
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Public Utility District
MEETING DATE: June 5, 2024
TO: Board of Directors
FROM: Jared Carpenter, Electric Utility Director
SUBJECT: Consideration to Approve a Professional Services Contract with
Aspen Environmental for the Development of Alternative Electric
Utility Rates
APPROVED BY.
Brian C. Wright, General Manager
RECOMMENDATION:
Authorize the General Manager to execute a professional services contract with Aspen
Environmental to perform cost of service study for the purposes of developing
alternative electric utility rates in the amount of$50,058, plus a ten percent change
order allowance of$5,000, for a total contract authorization not to exceed $55,058.
BACKGROUND:
The District commissioned Aspen Environmental Group, along with subcontractors
Flynn Resource Consultants Inc. (Flynn RCI), to prepare the District's first Integrated
Resource Plan (IRP) in May 2023, with the project being completed in 2024. The
purpose of an IRP is to forecast future energy and demand loads, and to match the
energy resources needed to comply with state, federal, and local policies and
regulations. The need for new alternative rate structures, developed in support of the
District's base rates is beneficial for District customers because it allows more options
to better meet the future needs identified by the IRP.
ANALYSIS AND BODY:
The base rate study completed in 2024 is sufficient to meet the financial obligations
(cost of service) of the District for the next few years. Additionally, the District
established its first time of use (TOU) energy rate structure for residential customers to
utilize and evaluate energy cost savings through behavior change.
Upon completion of the District's 2024 Integrated Resources Plan (IRP), the need for
additional new alternative rates was identified. The alternative energy rates for
consideration and to be analyzed by Aspen Environmental include:
• Successor Net Energy Metering Rate—As the District approaches 5% of the
peak demand met by solar installed within its territory, a successor net metering
rate will be required to account for the next iteration of solar projects, including
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the growth of battery storage systems. Additionally, it ensures equity in customer
energy rates, as the District encourages solar to help meet the IRP.
• Electric Vehicle (EV) Charging — EV charging is now a top 5 user in Truckee. It is
forecasted in the IRP to be the largest growing sector of our customer base.
EV's are heavy demand (kW) users, but respectively lower in energy (kWh).
Therefore, using the energy-based commercial rate could be less beneficial.
• "Green" — The IRP pointed out that renewable resources will become more
difficult to find due to increased competition. Therefore, a "Green" rate option for
customers that want the District to leverage resources seeking green energy
sources exceeding regulatory requirements may be beneficial. The District has
evaluated green options in the past, but there continues to be interest in key
account holders.
• Community Solar— The IRP identified community solar as an option to meet the
future needs of the District. Creating a special rate for this type of energy is one
approach to ensure that some customers have access to local solar generation
and to diversify the District's energy portfolio.
Aspen Environmental has been identified as the most beneficial consulting firm for this
work due to their previous work with the District in developing the IRP and their
familiarity with the District's energy portfolio. If approved, staff will return to the Board to
update the study findings, and request authorization to change or create any new rates
found to be beneficial for our customers in union with the 2024 IRP.
GOALS AND OBJECTIVES:
District Code 1.05.020 Objectives:
1. Responsibly serve the public.
4. Provide reliable and high quality electric supply and distribution system to meet
current and future needs.
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
4. Take the best of private sector thinking to modernize the utility and add value to our
communities.
FISCAL IMPACT:
Aspen Environmental's Proposal to perform a study for alternative electric utility rates
for an amount not to exceed $50,058, plus a ten percent change order allowance of
$5,005, for a total authorization not to exceed $55,063. Funds for this work will come
from the FY24 budget for professional services, specifically GL accounts
1.6.928.00.740, which has sufficient funds to cover this expense.
ATTACHMENTS:
None
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