Loading...
HomeMy WebLinkAbout2000-08-16 Agenda Packet - Board (13) PUBLIC BENEFIT PROGRAM BENEFITS FOR TRUCKEE DONNER PUD INTRODUCTION: When the California State Legislature adopted AB 1980, deregulating California's electric utility industry, in included a requirement that consumer-owned utilities implement a pubic benefits program The investor-owned utilities, which have been required to have public benefits programs for years, lobbied the legislature to extend this requirement to the consumer-owned utilities, such as Truckee Donner PUD. Under the terms of AB 1890 all consumer-owned electric utilities in California must spend an amount equal to 2.85%of their annual revenues on public benefits. Public benefits are defined as: (1) Cost-effective demand side management services to promote energy- efficiency and energy conservation. (2)New investment in renewable energy resources and technologies consistent with existing statutes and regulations which promote those resources and technologies. (3)Research, development and demonstration programs for the public interest to advance science or technology which is not adequately provided by competitive and regulated markets. (4) Services provided for low-income electricity customers, including but not limited to,targeted energy-efficiency service and rate discounts. The preceding four public benefits program definitions are written in typical statue legalese terminology. If they were to be restated in plain English,the public benefits program must promote one or more of the following: (1) Conservation (2)Renewable energy resources (3) Research, development or demonstration of new technologies (4) Low-income programs CONSUMER-OWNED UTILITIES TREATED DIFFERENTLY THAN INVESTOR-OWNED UTILITIES: The public benefits program that applies to consumer-owned utilities is somewhat different than the one that applies to investor-owned utilities. Investor-owned utilities are required to collect the money from their customers and sent it to the California PUC. The PUC decides how and where it is spent. Consumer-owned utilities are permitted to collect the money from their customers, and we keep it and decide locally how it will be spent. This difference gives us the opportunity to bring significant benefit our local community. It is one way that public power can dedicate itself to the benefit of our local community. This difference suggests an approach to a policy governing the use of public benefit program money in Truckee. In addition to the public benefit categories adopted by the legislature, we can use the program to bring benefit to Truckee. CUSTOMERS TELL US WHAT IS IMPORTANT IN AN ELECTRIC SERVICE COMPANY The national movement to deregulate the electric utility industry has resulted in many companies conducting surveys of customer preferences. There is a consistent opinion being expressed by customers in all regions of the country. They prefer low rates, companies that are easy to do business with, helpful utility staff, and companies that are able to be innovative. This customer input also suggests an approach to a policy governing the use of public benefits program money in Truckee BOARD MEMBER INPUT: At the Board Workshop of May 20, 1998 the Directors discussed the public benefits program. The directors expressed an interest in keeping the program simple;to start with a small program and expand it in future years. The directors were also in favor of a program that benefit many people or the entire community,rather than a program that benefits a small number. There was a preference for programs dealing with conservation, and programs that provide an opportunity for face-to-face contact with our customers. There was interest in low-income retrofit programs,and no interest in electric vehicle programs. There was interest in looking at generating power with wind and pursuing Stampede hydroelectric power. PUBLIC BENEFITS PROGRAM CAN BE A KEY ACCOUNT TOOL: We have a key account program with the goal of retaining the business of large commercial customers. It may be possible to design a public benefits program such that key account customers find an extra advantage in doing business with our District. DESIGNING THE PUBLIC BENEFITS PROGRAM POLICY: We have drafted a public benefits program policy with the preceding concepts in mind. The policy being recommended for Board consideration provides that our public benefits program must promote one or more of the following: (1) Conservation (2)Renewable resources (3)Research, development, or demonstration of new technologies (4)Low-income assistance A second tier of the policy incorporates the interests expressed by the Board of Directors. The policy states that the District's public benefits program shall: (1) Attempt to benefit a large number of persons or the entire community; (2) Favor programs supporting conservation; (3)Favor programs that provide opportunities for direct contact between the District and its customers; (4) Favor programs that support low-income assistance; (5) Be kept simple. A third tier of the policy incorporates the ideas expressed by customers in various surveys. The policy states that the District's public benefits program shall promote low rates,will be easy to administer, and will be innovative. Finally, the policy provides that the District will try to benefit key account customers in the public benefits program. Attached is a draft policy statement that, hopefully, satisfies the criteria set forth in this paper.