HomeMy WebLinkAboutStaff Report 3637
City of Palo Alto (ID # 3637)
City Council Staff Report
Report Type: Informational Report Meeting Date: 4/8/2013
City of Palo Alto Page 1
Summary Title: 4th Semi-Annual LEAP Update
Title: Fourth Semi-Annual Long-term Electric Acquisition Plan (LEAP) Update
From: City Manager
Lead Department: Utilities
This fourth and final semi-annual update of the Long-term Electric Acquisition Plan (LEAP) is
provided as information only. The purpose of the update is to keep the City Council apprised of
staff’s efforts towards implementing the Council-approved LEAP Objectives, Strategies and
Implementation Plan (Attachment B).
Executive Summary
Since the last LEAP update in September 2012, significant progress has been made towards
several key LEAP implementation items including: Council approval of the Carbon Neutral Plan
in March 2013; Council approval of the Brannon Solar power purchase agreement, bringing the
City’s Renewable Portfolio Standard in 2015 from 29.7% to 34.5% within the 0.50 cent/kWh
rate cap; evaluation of new long-term renewable energy proposals submitted in response to
the Fall 2012 RFP; Council authorization to execute Electric Master Agreements with nine new
electric suppliers in March 2013; and initiation of the process to revamp the PaloAltoGreen
program.
Since the LEAP Implementation Plan was approved in March 2011, 34 of the original 38 tasks
have been completed, are in process, or are ongoing. The remaining four projects are on hold
or delayed, but will be completed. Therefore, staff will no longer provide updates related to
the implementation of the LEAP Implementation Plan. LEAP will be reviewed in the context of
the recently approved Carbon Neutral Plan and staff may recommend modifications to Council
as needed to effectively implement both plans.
Attachments:
Attachment A: LEAP Update March 2013 (PDF)
Attachment B: LEAP April 2012 (PDF)
Attachment A
Page 1 of 8
Long-term Electric Acquisition Plan (LEAP)
Semi-annual Update -- April 2013
LEAP Implementation Plan Item
Estimated
Completion
in LEAP April 2013 Update Status
Strategy #1 - Resource Acquisition
1. Adjust planning and portfolio models to include an
integrated and least cost planning perspective which
evaluates demand and supply side resources in an
integrated manner and includes time of delivery,
locational and environmental costs and benefits.
Dec. 2010 Completed
2. Evaluate the impacts of energy efficiency, demand
reductions and electric vehicle penetration in Palo Alto
in the annual development of the electric load forecast.
Dec. 2010 Completed
Strategy #2 – Electric Energy Efficiency and Demand Reduction
3. Provide quarterly updates on electric efficiency program
achievements including tracking against 10-Year Energy
Efficiency goals to the UAC and annual updates to the
City Council.
quarterly No update* On-going
4. Develop Energy Efficiency Implementation Plan for the
2010 10-Year Electric EE Plan addressing certain items
identified in the May 2010 Council Colleagues Memo
and identification of resources and funding needed to
achieve EE goals.
Apr. 2011 Completed
5. Evaluate fuel switching energy efficiency measures and
include them, if cost-effective, in the Electric and Gas EE
Implementation Plans.
Feb. 2011 Completed
6. Develop a pilot Demand Response Program for large
commercial industrial customers for implementation in
summer 2011.
Apr. 2011 Completed
Attachment A
Page 2 of 8
LEAP Implementation Plan Item
Estimated
Completion
in LEAP April 2013 Update Status
7. Assess the feasibility and cost-effectiveness of using
current and potential thermal energy storage (TES)
systems to shift load from on-peak periods to off-peak
periods, for use in a demand response program, or for
meeting any energy storage needs. Coordinate with task
21 to develop targets, if appropriate.
Dec. 2011 In the summer of 2012, an intern helped
analyze the applicability of storage systems
within Palo Alto and found no compelling
business case to do so. A more detailed
distribution feeder based analysis is
expected to be undertaken during the
summer of 2013, and both findings are
expected to be discussed with the UAC by
November 2013.
Report to
UAC by
Nov 2013
8. Fully integrate the effects on energy efficiency in the
long-term electric load forecast.
Nov. 2010 Completed
Strategy #3 – Renewable Portfolio Standard (RPS)
9. Evaluate the merits of implementing a feed-in-tariff (FIT)
and the potential to meet RPS goals through local
renewable resources.
Jan. 2011 Completed
10. Seek UAC recommendation and Council approval of the
policy elements of a FIT to encourage local renewable
resource projects.
May 2011 Completed
11. Continue working with NCPA to identify opportunities,
including joint-ownership, for developing qualifying
renewable resources.
On-going Joint ownership options being investigated
include a geothermal project (see item #13)
and the installation of micro-turbines at the
Calaveras Hydroelectric Project.
On-going
12. Evaluate the use of renewable energy credits (RECs) to
meet a portion of the City’s RPS goal and/or greenhouse
gas emission reduction goals and monitor the
regulations and requirements regarding the use of RECs
to meet RPS goals.
On-going On March 4, 2013, Council approved the
Carbon Neutral Plan, which allows the use
of RECs to neutralize GHG associated with
market purchases.
Completed
Attachment A
Page 3 of 8
LEAP Implementation Plan Item
Estimated
Completion
in LEAP April 2013 Update Status
13. Evaluate a proposed geothermal project being
considered by NCPA, including a pre-pay option and the
benefit, costs, and risks of a pre-pay structure.
June 2011 This project has been delayed due to
development issues. Staff and NCPA are
monitoring key contract milestones and will
make an assessment whether or not to
terminate the PPA with Western Geo.
In process
14. Conduct a Request for Proposals for eligible renewable
resources including RECs and evaluate alternative
renewable resource technologies and contracting
mechanisms.
RFP in
June 2011
Staff issued a Request for Proposals for
eligible renewable resources in September
2011. A total of 65 project proposals were
submitted. Staff negotiated a Power
Purchase Agreement (PPA) for the 20 MW
Brannon Solar project with the finalist,
Trina Solar. Council approved this
agreement in November 2012.
Staff issued another RFP for eligible
renewable resources in August 2012. A
total of 92 project proposals were received
in September 2012. Staff is now finalizing
negotiations on three PPAs for solar
projects with the finalists in this process
and anticipates bringing these agreements
to Council for consideration by June 2013.
In process
Strategy #4 – Local Generation
15. Provide an update of past local generation feasibility
studies and actions to UAC and Council
Dec. 2010 Completed
Attachment A
Page 4 of 8
LEAP Implementation Plan Item
Estimated
Completion
in LEAP April 2013 Update Status
16. Assess the potential for and feasibility of small local
distributed and non-distributed, renewable and
cogeneration projects, including using a FIT to encourage
these projects.
Jan. 2011 Renewable projects are being evaluated as
part of the City’s FIT program (see item
#19). An assessment of cogeneration will
be part of evaluation of the City’s PLUG-In
program. See item #18.
In process
17. Assess the potential, benefits and costs of developing
and/or joint ownership of a 25 to 50 MW gas-fired
power plant located in or near Palo Alto to meet load,
reliability and local capacity needs.
Jun. 2011 Completed
18. Evaluate the City’s PLUG-In Program to encourage
cogeneration including rules, regulations, and buy back
rates and recommend modifications as needed.
December
2011
Staff proposal is being developed.
In process
19. Following receiving Council direction from
Implementation Plan Initiative #10, develop a FIT
proposal including rate, rules, regulations, standard
contract form and limits.
To be
deter-
mined
Completed
20. Assess the economics and potential of the anaerobic
digester as a local generation resource for CPAU
Sep. 2011 In January 2013 Council approved an
energy purchase policy for waste to energy
projects in Palo Alto. Further evaluation
will be performed by the Public Works
Department with the Utilities Department
advising as necessary.
Completed
Attachment A
Page 5 of 8
LEAP Implementation Plan Item
Estimated
Completion
in LEAP April 2013 Update Status
21. Assess the need for and value of energy storage to
support local renewable distributed generation
resources. Determine any appropriate energy storage
targets to be achieved by December 31, 2016, and
December 31, 2021. Report back to the Council
regarding what procurement targets, if any, are deemed
to be appropriate so that the Council may adopt such
procurement targets, if determined to be appropriate,
by October 1, 2014.
Oct. 2014 As directed by Public Utilities Code Section
2836, staff will bring to UAC/Council a
report with recommended energy storage
targets, if any, for potential council
adoption in Winter of 2013. See
task #7 in support of this task.
November
2013
Strategy #5 – Climate Protection
22. Promote the City’s Plug-in program to encourage
development of cogeneration systems.
On-going Staff continues to provide information to
interested applicants under the City’s
existing PLUG-In program. Also see item
#18 above.
On-going
23. Analyze electric vehicle (EV) charging patterns and
evaluate rates to incent nighttime EV charging.
Jun. 2011 Council adopted a TOU rate for the
CustomerConnect pilot program on
December 10, 2012. Up to 100 customers
with EVs will be allowed to participate in
the pilot program.
Planned for
Fall of 2012
to Fall of
2013
24. Meet AB32 mandated annual reporting requirements to
California Air Resources Board on annual volumes of
electricity purchases by resource.
Annually,
next in
Jun. 2013
Completed
25. Track and report annually on 6 major greenhouse gas
emissions (CO2, CH4, N2O, SF6, HFCs, PFCs) for all of the
City’s municipal operations and calculate electric
portfolio’s overall emissions coefficients (lbs of CO2,
CH4, and N2O per MWh of purchases).
Annually,
next in
Sep. 2012
Report with emissions data for calendar
year 2010 submitted to The Climate
Registry in December 2011. Utilities and
Public Works staff is coordinating efforts to
submit calendar year 2011 and 2012
reports to The Climate Registry by April
2013.
On-going
Attachment A
Page 6 of 8
LEAP Implementation Plan Item
Estimated
Completion
in LEAP April 2013 Update Status
26. Evaluate the costs, benefits and impacts of the
implementation of an electric portfolio carbon neutral
policy and the setting of quantitative goals (e.g. carbon
intensity, total GHG emissions).
Jan. 2012 Council approved carbon neutral definition
in November 2012 and the Carbon Neutral
Plan in March 2013.
Completed
27. Evaluate PaloAltoGreen program design and recommend
modifications, as appropriate, including constructing
PaloAltoGreen to assist in meeting Renewable Portfolio
Standard goals.
Jun. 2012 The UAC discussed potential PaloAltoGreen
redesign options in December 2012, and
the Council held a study session on
potential redesign options in February
2013. Recommendations are expected to
be provided to the UAC in April, Finance
Committee in May and Council in June of
2013.
In process
Strategy #6 – Hydro Resource Management
28. Evaluate potential rate adjustment mechanisms that
would adjust electric rates based on hydrologic year
type and develop a recommendation for a rate.
Apr. 2011 Implementation has been delayed pending
development of new rate policies and
reserves policies, which are expected to be
completed in FY 2014.
On hold
29. Assess the value related to Palo Alto’s participation in
the CAISO’s Metered Subsystem Agreement and the use
of the Calaveras hydroelectric project for load following.
On-going No update * On-going
30. Identify long-term opportunities to maximize the value
of the Calaveras hydroelectric project as an energy
storage resource.
On-going Staff is working with NCPA to understand
new flexible ramping requirements to be
proposed CAISO capacity needs for
intermittent resources and the role
Calaveras will play. Additionally, staff
intends to explore hydro energy storage in
the context of meeting the requirements
set forth in AB 2514 (see item #21).
On-going
Attachment A
Page 7 of 8
LEAP Implementation Plan Item
Estimated
Completion
in LEAP April 2013 Update Status
31. Work with NCPA to seek opportunities to increase the
efficiency of the Calaveras hydroelectric project and
implement operational value maximizing strategies.
On-going No update * On-going
Strategy #7 – Market Price Exposure Management
32. Evaluate a block purchase of up to 25 MW to meet base
load needs for Jan-Mar and Nov-Dec for a term of up to
5 years.
Feb. 2011 No Update * On hold
33. Conduct an RFP for new electric master agreement
counterparties.
Dec. 2011 In March 2013, Council authorized the City
Manager to finalize and execute nine
electric master agreements and carryout
transactions under the agreements.
Completed
34. Explore opportunities with NCPA, other municipal
utilities and/or third party suppliers to reduce scheduling
and/or operating costs.
On-going No update * On-going
35. Continue to implement a 3-year laddering strategy to
manage market price uncertainty.
On-going No update * On-going
Strategy #8 – Transmission and Reliability
36. Investigate transmission connection voltage upgrade
from 115 to 230 kV, and the potential for a transmission
reliability connection to west side.
On-going CPAU and Stanford are working on a
memorandum of understanding and a firm
proposal for SLAC and the Department of
Energy (DOE). Currently CPAU’s consultant
is rerunning the load flow studies to
incorporate new load assumptions for SLAC
and Stanford. CPAU and Stanford are also
moving forward on right-of-way, land use,
and routing options.
On-going
37. Explore transmission opportunities and strategies to
meet long-term renewable portfolio objectives beyond
2020.
On-going No Update * On-going
Attachment A
Page 8 of 8
LEAP Implementation Plan Item
Estimated
Completion
in LEAP April 2013 Update Status
38. Evaluate joint efforts for power plant ownership
opportunities or long-term agreements to meet the
City’s Resource Adequacy Program requirements.
On-going No Update * On-going
* No update – For these items, there is no update since the September 2012 semi-annual LEAP update
Key for Acronyms:
AB – Assembly Bill
AB32 – Assembly Bill for Greenhouse Gas Emissions Reduction
AB 2514 – Assembly Bill for Energy Storage
CAISO – California Independent System Operator
CARB – California Air Resources Board
CH4 – Methane
CO2 – Carbon Dioxide
CPAU – City of Palo Alto Utilities
DOE – Department of Energy
EE – Energy Efficiency
EV – Electric Vehicle
FIT – Feed-in-tariff
GHG – Greenhouse Gas Emissions
HFCs – Hydrofluorocarbons
kV – Kilo volt
kWh – Kilowatt-hour
MSSA – Metered Subsystem Agreement
MW – Mega Watt
MWh – Mega Watt hour
N2O – Nitrous Oxide
NCPA – Northern California Power Agency
PFCs – Perfluorocarbons
PLUG-In – Power from Local Ultra-clean Generation Incentive
PPA – Power Purchase Agreement
RFP – Request for Proposal
RPS – Renewable Portfolio Standard
SB2 1X – California Senate Bill for 33% RPS
SF6 – Sulfur Hexafluoride
SLAC – SLAC National Accelerator Laboratory
TES – Thermal Energy Storage
TOU – Time-of-Use
UAC – Utilities Advisory Commission
WAPA – Western Area Power Administration
1
Attachment B
Long-term Electric Acquisition Plan (LEAP)
Objectives, Strategies and Implementation Plan
Approved March 7, 2011 (Resolution No. 9152)
Modified by Council March 19, 2012 (Staff Report No. 2581)
Modified by Council April 16, 2012 (Staff Report No. 2710)
LEAP Objectives:
1. Meet customer electricity needs through the acquisition of least total cost energy and
demand resources including an assessment of the environmental costs and benefits
2. Manage supply portfolio cost uncertainty to meet rate and reserve objectives.
3. Enhance supply reliability to meet City and customer needs by pursuing opportunities
including transmission system upgrades and local generation.
LEAP Strategies and Implementation Plan Steps:
1. Resource Acquisition – Pursue the least total cost resources including an assessment of
environmental costs and benefits to meet the City’s needs in the long term by:
a. Evaluating each potential resource on an equal basis by evaluating rate impacts and
establishing costs and values for location, time of day and year, carbon, value of
renewable supplies and any secondary benefits attributed to the resource; and
b. Including all resources – conventional energy, local and remote renewable energy
supplies, energy efficiency, cogeneration, and demand reduction – in the evaluation.
Implementation Plan Items for Strategy #1 – Resource Acquisition Estimated
Completion
1. Adjust planning and portfolio models to include an integrated and least cost
planning perspective which evaluates demand and supply side resources in an
integrated manner and includes time of delivery, locational and
environmental costs and benefits.
Dec. 2010
2. Evaluate the impacts of energy efficiency, demand reductions and electric
vehicle penetration in Palo Alto in the annual development of the electric
load forecast.
Dec. 2010
2. Electric Energy Efficiency and Demand Reduction – Fund programs that maximize the
deployment of cost-effective, reliable and feasible energy efficiency and demand
reduction opportunities as the highest priority resources by:
a. Every three years, preparing a ten-year energy efficiency plan that identifies all cost-
effective energy efficiency opportunities;
2
b. Using the cost of long-term renewable energy resources adjusted for time of day
factors and location as the avoided cost when evaluating cost effectiveness of energy
efficiency measures;
c. Designing and making energy efficiency programs available to all customers; and
d. Considering the impacts (costs, benefits and GHG emissions) of substituting
electricity-using appliances for natural gas-using appliances and vice versa in the ten-
year energy efficiency plan.
Implementation Plan Items for Strategy #2 – Electric Energy Efficiency and
Demand Reduction
Estimated
Completion
3. Provide quarterly updates on electric efficiency program achievements
including tracking against 10-Year Energy Efficiency goals to the UAC and
annual updates to the City Council.
quarterly
4. Develop Energy Efficiency Implementation Plan for the 2010 10-Year Electric
EE Plan addressing certain items identified in the May 2010 Council
Colleagues Memo and identification of resources and funding needed to
achieve EE goals.
Apr. 2011
5. Evaluate fuel switching energy efficiency measures and include them, if cost-
effective, in the Electric and Gas EE Implementation Plans.
Feb. 2011
6. Develop a pilot Demand Response Program for large commercial industrial
customers for implementation in summer 2011.
Apr. 2011
7. Assess the feasibility and cost-effectiveness of using current and potential
thermal energy storage (TES) systems to shift load from on-peak periods to
off-peak periods, for use in a demand response program, or for meeting any
energy storage needs. Coordinate with task 21 to develop targets, if
appropriate.
Sep. 2011
3. Renewable Portfolio Standard (RPS) – Reduce the carbon intensity of the electric
portfolio by acquiring renewable energy supplies by:
a. Pursuing a minimum level of renewable purchases of at least 33% of retail sales by
2015 with the following attributes:
i. The contracts for investment in renewable resources shall not exceed 30 years in
term.
ii. Pursue only renewable resources deemed to be eligible by the California Energy
Commission (CEC).
iii. Evaluate use of Renewable Energy Certificates (RECs) to meet RPS.
b. Ensuring that the retail rate impact for renewable purchases does not exceed 0.5
¢/kWh on average; and
c. Performing an ongoing evaluation of the Palo Alto Clean Local Energy Accessible Now
(CLEAN) program.
3
Proposed Implementation Plan Items for Strategy #3 – Renewable Portfolio
Standard (RPS)
Estimated
Completion
8. Fully integrate the effects on energy efficiency in the long-term electric load
forecast.
Nov. 2010
9. Evaluate the merits of implementing a feed-in-tariff (FIT) and the potential to
meet RPS goals through local renewable resources.
Jan. 2011
10. Seek UAC recommendation and Council approval of the policy elements of a
FIT to encourage local renewable resource projects.
May 2011
11. Continue working with NCPA to identify opportunities, including joint-
ownership, for developing qualifying renewable resources.
On-going
12. Evaluate the use of renewable energy credits (REC) to meet a portion of the
City’s RPS goal and/or greenhouse gas emission reduction goals and monitor
the regulations and requirements regarding the use of RECs to meet RPS
goals.
On-going
13. Evaluate a proposed geothermal project being considered by NCPA, including
a pre-pay option and the benefit, costs, and risks of a pre-pay structure.
June 2011
14. Conduct a Request for Proposal for eligible renewable resources including
RECs and evaluate alternative renewable resource technologies and
contracting mechanisms.
RFP in June
2011
4. Local Generation – Promote and facilitate the deployment of cost-effective local
resources by:
a. Using the renewable market price referent (MPR) adjusted for time of day factors
and location as the avoided cost when evaluating cost effectiveness of local
resources;
b. Considering energy delivery cost uncertainty and strategic value options when
evaluating opportunities;
c. Evaluating a Feed-in-Tariff to promote locally sited renewable resources;
d. Evaluating cost-effective energy storage resources; and
e. Evaluating the feasibility of developing a 25 to 50 MW generating facility connect to
the City’s distribution system.
Proposed Implementation Plan Items for Strategy #4 – Local Generation Estimated
Completion
15. Provide an update of past local generation feasibility studies and actions to
UAC and Council
Dec. 2010
16. Assess the potential for and feasibility of small local distributed and non-
distributed, renewable and cogeneration projects, including using a FIT to
encourage these projects.
Jan. 2011
17. Assess the potential, benefits and costs of developing and/or joint ownership
of a 25 to 50 MW gas-fired power plant located in or near Palo Alto to meet
load, reliability and local capacity needs.
Jun. 2011
4
Proposed Implementation Plan Items for Strategy #4 – Local Generation Estimated
Completion
18. Evaluate the City’s PLUG-In Program to encourage cogeneration including
rules, regulations, and buy back rates and recommend modifications as
needed.
Dec. 2011
19. Following receiving Council direction from Implementation Plan Initiative #10,
develop a FIT proposal including rate, rules, regulations, standard contract
form and limits.
To be
determined
20. Assess the economics and potential of the anaerobic digester as a local
generation resource for CPAU
Sep. 2011
21. Assess the need for and value of energy storage to support local renewable
distributed generation resources. Determine any appropriate energy storage
targets to be achieved by December 31, 2016, and December 31, 2021.
Report back to the Council regarding what procurement targets, if any, are
deemed to be appropriate so that the Council may adopt such procurement
targets, if determined to be appropriate, by October 1, 2014.
Jun. 2012
5. Climate Protection – Reduce the electric portfolio’s carbon intensity by:
a. Supporting the City municipal government’s climate protection goals;
b. Promoting the use of technologies (e.g. incentives for cogeneration systems,
promotion of EVs, in-home energy displays) and programs that will reduce the
community’s carbon footprint at a cost of up to the City’s value of carbon;
c. Continuing to offer a renewable resource-based retail rate for all customers who
want to voluntarily select an increased content of non-hydro renewable energy; and.
d. Evaluating quantitative goals for possible future implementation.
Proposed Implementation Plan Items for Strategy #5 – Climate Protection Estimated
Completion
22. Promote the City’s Plug-in program to encourage development of
cogeneration systems.
On-going
23. Analyze electric vehicle (EV) charging patterns and evaluate rates to incent
nighttime EV charging.
Jun. 2011
24. Meet AB32 mandated annual reporting requirements to California Air
Resources Board on annual volumes of electricity purchases by resource.
Annually,
next in Jun.
2011
25. Track and report annually on 6 major greenhouse gas emissions (CO2, CH4,
N2O, SF6, HFCs, PFCs) for all of the City’s municipal operations and calculate
electric portfolio’s overall emissions coefficients (lbs of CO2, CH4, and N2O
per MWh of purchases).
Annually,
next in Sep.
2011
26. Evaluate the costs, benefits and impacts of the implementation of an electric
portfolio carbon neutral policy and the setting of quantitative goals (e.g.
carbon intensity, total GHG emissions).
Jan. 2012
5
Proposed Implementation Plan Items for Strategy #5 – Climate Protection Estimated
Completion
27. Evaluate PaloAltoGreen program design and recommend modifications, as
appropriate, including constructing PaloAltoGreen to assist in meeting
Renewable Portfolio Standard goals.
Jun. 2012
6. Hydro Resource Management – Actively monitor and manage cost uncertainty related
to variations in hydroelectric supply and maximize value of hydro resources by:
a. Planning for an average hydro year on a long-term basis;
b. Utilizing cost effective hydro resource management products; and
c. Implementing opportunities to maximize benefits and reduce costs of the Western
Base Resource and Calaveras hydroelectric resources.
Proposed Implementation Plan Items for Strategy #6 – Hydro Resource
Management
Estimated
Completion
28. Evaluate potential rate adjustment mechanisms that would adjust electric
rates based on hydrologic year type and develop a recommendation for a
rate.
Apr. 2011
29. Assess the value related to Palo Alto’s participation in the CAISO’s Metered
Subsystem Agreement and the use of the Calaveras hydroelectric project for
load following.
On-going
30. Identify long-term opportunities to maximize the value of the Calaveras
hydroelectric project as an energy storage resource.
On-going
31. Work with NCPA to seek opportunities to increase the efficiency of the
Calaveras hydroelectric project and implement operational value maximizing
strategies.
On-going
7. Market Price Exposure Management – Actively monitor and manage operational,
counterparty and wholesale energy price risk in the short-term (up to three to five years)
by:
a. Maintaining an adequate pool of creditworthy suppliers; and
b. Diversifying supply purchases across commitment date, start date, duration,
suppliers and pricing terms in alignment with rate stability objectives and reserve
guideline.
Proposed Implementation Plan Items for Strategy #7 – Market Price Exposure
Management
Estimated
Completion
32. Evaluate a block purchase of up to 25 MW to meet base load needs for Jan-
Mar and Nov-Dec for a term of up to 5 years.
Feb. 2011
33. Conduct an RFP for new electric master agreement counterparties. Dec. 2011
34. Explore opportunities with NCPA, other municipal utilities and/or third party
suppliers to reduce scheduling and/or operating costs.
On-going
35. Continue to implement a 3-year laddering strategy to manage market price
uncertainty.
On-going
6
8. Transmission and Reliability – Pursue the reliability of supply at fair and reasonable
transmission and delivery costs by:
a. Actively participating through collaborative efforts with other entities, in local,
regional, statewide and federal regulatory and legislative forums;
b. Participating in transmission and reliability market design forums to ensure that
adopted market designs result in adequate reliability, workably competitive markets
and equitable cost allocation;
c. Evaluating interconnection options to the City to increase service reliability and
lower delivery costs; and
d. Exploring transmission opportunities and strategies to meet long-term renewable
portfolio objectives beyond 2020.
Proposed Implementation Plan Items for Strategy #8 – Transmission and
Reliability
Estimated
Completion
36. Investigate transmission connection voltage upgrade from 115 to 230 kV, and
the potential for a transmission reliability connection to west side.
On-going
37. Explore transmission opportunities and strategies to meet long-term
renewable portfolio objectives beyond 2020.
On-going
38. Evaluate joint efforts for power plant ownership opportunities or long-term
agreements to meet the City’s Resource Adequacy Program requirements.
On-going