10-17-2014 BPU RPT 11 - Laserfiche WebLink

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WATER ENE RIVERSIDE PUBLIC UTILITIES MEW& Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: OCTOBER 17, 2014 ITEM NO: 11 SUBJECT: RIVERSIDE TRANSMISSION RELIABILITY PROJECT— INCREASE AUTHORIZATION OF WORK ORDER NO. 642975 ISSUE: The issue for Board of Public Utilities consideration is the increase of the Riverside Transmission Reliability Project (RTRP or Project) authorization for Work Order No. 642975 by $21,000,000. RECOMMENDATION: That the Board of Public Utilities authorize an increase of $21,000,000 for Work Order No. 642975 from $21,605,521 to $42,605,521 to continue funding both the 69 kV and 230 kV components of the Riverside Transmission Reliability Project. BACKGROUND: RTRP is a joint project with Southern California Edison (SCE) and provides Riverside Public Utilities (RPU) with a second connection to the state electric transmission grid to address long -term capacity and reliability needs of the City's electric utility system. The Project includes construction of approximately 10 miles of double- circuit 230 kV transmission lines, installation of approximately 10 miles of 69 kV sub - transmission lines, installation of two new substations, improvements to five existing RPU 69 kV substations, relocation of existing distribution lines and installation of new telecommunication lines. The total approved funding for the RTRP Work Order No. 642975 is currently $21,605,521. The total required funding for the Project, as identified in the approved Capital Improvement Program budget, is $106,245,000. Total RTRP spending to date is $20,600,050 or 19.4% of the total $106,245,000, and the project is approximately 10% complete. This is the largest capital project in the history of Riverside Public Utilities and as such has unique up -front associated costs. Some of the up- front expenses thus far include $5.5 million for an Interconnection Facilities Agreement with Southern California Edison and $6.1 million for engineering and consulting services which results in the percentage of project funds expended being higher than the percent of project completion. City Council certified the Environmental Impact Report (EIR), in accordance with all California Environmental Quality Act (CEQA) requirements, on February 5, 2013. A Notice of Determination (NOD) was filed with the County of Riverside County Clerk and Recorder and the Office of Planning and Research following the certification by the City Council. CITY'S 69 kV COMPONENT: The Final EIR was completed for the Project in accordance with all CEQA requirements, and was certified by City Council on February 5, 2013. Therefore, construction may proceed on the City's 69 kV component, located entirely within the City of Riverside. Staff is preparing plans and specifications to construct two 69 kV lines, one from Riverside Energy Resource Center (RERC) to Harvey Lynn Substation and the other from RERC to Freeman Substation. This work also includes substation upgrades and the reconfiguration of Project related 69 kV sub - transmission lines and distribution circuits.