HomeMy WebLinkAbout#9 Electric Rates AGENDA ITEM #9
Public Utility District m
MEETING DATE: October 2, 2024
TO: Board of Directors
FROM: Jared Carpenter, Electric Utility Director
SUBJECT: Workshop - New Electric Rate Options
APPROVED BY:
Brian C. Wright, General Manager
RECOMMENDATION:
Receive the information from this workshop item and provide strategic direction to staff
regarding potential new rates.
BACKGROUND:
TDPUD's electric retail rates are set by the Board of Directors and adopted by
Ordinance. The table below shows the adopted rate changes as studied and
recommended by consulting firms as part of a Cost of Service Analysis (COSA).
FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26
2% 3% 3% 3% 3% 9% 7% 12% 12% 4%
Each COSA over the past few years have identified significant changes in energy
markets due in part to the impacts of western drought, high volatility in natural gas
prices, high inflation, changes in the financial power markets, and growing consumer
demand. TDPUD also created an Integrated Resources Plan (IRP) in 2023-2024 which
identified new customer classes entering Truckee. Some of these include commercial
electric vehicle charging, residential electrification (heat pumps, solar, etc.), and
changes to how customers implement energy efficient measures.
Some of the topics Staff is looking to share and discuss openly are around new rates
and what they can create. Examples that create challenges and opportunity with any
rate changes include:
• All rate options are dependent on our billing system capabilities.
• Increased rate options give customers an opportunity to choose what fits them
best.
• Increased rate options give TDPUD the flexibility to manage revenue and
expenses.
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• A higher or lower increased rate can result in a lower or higher commercial or
residential rate that has existed
• Special rates (like a "Green" or "hourly charge") can result in a higher charge for
customers initially, but then lower as the regulations increase or as customers
craft their usage around the rate options available.
• All rates may need "grandfather" periods so they can be removed or updated at
the right time for the betterment of the entire community.
With this in mind, Staff and a consulting firm began creating new rate options for the
new customer classes and would like to present some of these options as a Workshop
to receive feedback on the potential options.
ANALYSIS AND BODY:
TDPUD's Integrated Resources Plan (IRP) completed and presented in 2024 shows
there are new customer classes growing in Truckee. Some of these new customer
classes do not have an applicable rate class. A consulting firm was used to create new
potetnail rate options. Below are the new rate classes Staff is requesting feedback on
from the Board and community:
• Analyze an updated/new Net Energy Meter (NEM) rate
• Perform reality check on implementation feasibility and cost; identify transfer to
other rates needed to achieve revenue neutrality
• Develop EV charging rate design that encourages charging during off-peak
hours
• Develop 100% Green Portfolio pilot rate
• Develop community solar participation rate
A presentation will be given with further detail for discussion.
GOALS AND OBJECTIVES:
District Code 1 .05.020 Objectives:
1. Responsibly serve the public.
6. Manage the District in an effective, efficient and fiscally responsible manner.
District Code 1 .05.030 Goals:
3. Engage with our customers and communities in a welcoming and transparent way to
identify opportunities.
FISCAL IMPACT:
There is no fiscal impact associated with this informational workshop item.
ATTACHMENTS:
None
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