06-04-2015 BPU RPT 08 - Laserfiche WebLink

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W A I E R E N E R G Y L I F E RIVERSIDE PUBLIC UTILITIES III& Board Memorandum P U B L I C U T I L I T I E 5 BOARD OF PUBLIC UTILITIES DATE: JUNE 4, 2015 ITEM NO: 8 SUBJECT: APPROVAL OF THE POWER SUPPLY INTEGRATED RESOURCE PLAN ISSUE: The issue for Board of Public Utilities consideration is approval and adoption of the Power Supply Integrated Resource Plan (IRP). RECOMMENDATION: That the Board of Public Utilities recommend that the City Council approve and adopt the Power Supply Integrated Resource Plan. BACKGROUND: It is an industry best practice for both public and investor owned utilities to periodically perform and compile Integrated Resource Plans. At its most fundamental level, an Integrated Resource Plan (IRP) is used to help guide Riverside Public Utilities' (RPUs) long -term power procurement decisions to meet its customers' future peak load and system energy requirements, along with appropriate reserve margins. In an IRP, a utility examines both supply -side and demand -side resources in an effort to identify one or more least -cost, least -risk future resource procurement scenarios that can be used to meet the utilities expected future resource needs. RPUs last official IRP was approved and adopted by the Board of Public Utilities (Board) in 2008. Since that time, a number of new energy market paradigm shifts have occurred. RPUs procurement of new state -of- the -art statistical modeling software on November 4, 2011 assists in analyzing and updating the previous IRP and that software also incorporates new regulatory mandates and market design changes. Although the vast majority of the modeling was performed during 2014, the results were updated in early 2015 to include additional enhancements and analysis. This Power Supply IRP provides an intermediate- and long -term impact analysis of, as well as the types and timing related to, RPUs acquisition of new power resources and the resulting impact on RPUs future projected cost of service in the 2014 -2033 timeframe. The IRP analyzes, for the beginning five -year term, RPUs: (a) projected capacity and resource adequacy needs; (b) renewable portfolio standard (RPS) mandates; (c) carbon emission goals and mandates; (d) power resource budgetary objectives; and (e) cash -flow risk metrics. The IRP reviews for a 20 -year term issues including: (a) projected load growth impacts; (b) timing impacts associated with the termination of our Intermountain Power Project (IPP) contract; (c) how market price shocks could impact RPUs resource portfolio; (d) potential replacement options for RPUs IPP contract; and (e) potential changes in future RPS mandates. A detailed presentation of the IRP was made to the Board on February 20, 2015, with an extended discussion between concerning some of the more important IRP findings. The full IRP document was posted on the RPUs website one week thereafter at htto: / /www.riversideca.aov /utilities /odf /2015 /RPU 2014IRP revised draft forPUB 0219 2015.odf in order to initiate a 60 -day public review process. As of May 20, 2015 RPU has received no public comments.