Power Integrated Resource Plan Progress Update
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1 Power Integrated Resource Plan Progress Update Municipal Services Committee July 10, 2018 Item 4A
2 Power Integrated Resource Plan Progress Update 2018 IRP REQUIREMENTS 2
3 Key Issues for 2018 IRP SB 350 compliance GHG emission reduction goals/alternatives RPS goals/alternatives Impact of transportation electrification Impact on Disadvantaged Communities ( DACs ) Future of the IPP Natural Gas Repower Potential cost effective energy storage, demand response, energy efficiency, etc. Balanced Scorecard > Balancing these important issues with reliability, cost and environmental stewardship 3
4 Power Integrated Resource Plan Progress Update 2018 IRP PROCESS 4
5 2018 IRP Tentative Schedule MILESTONE TIMING PWP 2018 IRP KICKOFF MEETING SEPTEMBER IRP VENDOR SELECTION MARCH 2018 FORM COMMUNITY STAKEHOLDER GROUP MARCH 2018 COMMUNITY STAKEHOLDER GROUP MEETINGS APRIL 2018-SEPTEMBER 2018 PUBLIC MEETINGS JULY-AUGUST 2018 IRP DRAFT OUTLINE SEPTEMBER 2018 IRP COMPLETE OCTOBER 2018 FINAL IRP PRESENTATION TO EAC, MSC AND CITY COUNCIL NOV/DEC
6 2018 Power IRP Consultant Contracted with Northwest Economic Research LLC ( NWER ) > Subcontractor Siemens/Pace (developed 2009 and 2011 IRP) Lon Peters, the President of NWER was the former IRP Administrator at Glendale Water and Power Over 30 years of experience Contract base price of $189,500 6
7 Consultant Tasks Completed Assumptions document and memos Modeling calibration Draft base case Draft IRP report, focused on background and modeling 7
8 Modeling and Scenarios AURORA production cost model Modeling > Will show a resource portfolio and costs, at a minimum to comply with SB 350 Preliminary base case complete > The base case is a reflection of the world today- including policies and regulations in place today (SB 350) and datasets based on the market In the process of selecting Scenarios > Scenarios are defined as changes to the assumptions or datasets of the base case 8
9 2018 IRP Outreach Efforts The City Manager s Stakeholder Technical Advisory Group ( STAG ) formed > To represent a cross section of all ratepayer categories > Provide input/direction on the IRP analysis and portfolio selection Public Outreach > Community Meetings Date Time Location 7/18/ PM Pasadena Central Library 8/23/ PM Hastings Ranch Library > Power IRP Survey posted online 4/30/18 Periodic Updates to MSC, EAC and City Council Recommendations to EAC, MSC prior to City Council Approval 9
10 2018 IRP- Stakeholder Group The Stakeholder Technical Advisory Group is made up of a diverse group of Customers and City representatives & 2018 STAG MAKE-UP 6 # of STAG Members Church/Religious Organization City Educational Institution Environmental Advocacy Business Customers Residential Customers
11 Power Integrated Resource Plan Progress Update 2018 IRP SURVEY 11
12 2018 IRP- Survey As of 6/25/18, 129 people have responded to the survey Public Outreach > Newsletters > Social media (Facebook, twitter, etc.) > Newspaper ads > City bulletin boards > Radio/TV ads > Laemmle Theatre slide 12
13 Key Findings Highest Priority: > High Reliability & Affordable rates Preferred RPS Target: > Between 50%-75% Customer Wiling to Pay More for (5-10 % rate increase): > Lower GHG emissions > Higher RPS Entire Electric Bill > Regional health impacts Majority willing to pay for IRP recommendations 13
14 Electric Service Priorities (4 is Highest Priority) High reliability (keeping the lights on and avoiding blackouts) Affordable rates Minimizing environmental impacts Quality of customer service 14
15 Preferred RPS Target Majority Prefer 50-75% RPS 19% 34% 34% 13% PWP should keep the State Mandated target of 50% PWP should increase its target to at least 60% PWP should increase its target to at least 75% Other target (please specify) 15
16 RPS Rate Impact Majority of Respondents believe additional renewables will INCREASE rates 15% 31% 54% Decrease rates Increase rates Have no impact on rates 16
17 IRP Priorities Majority of Respondents care about keeping the cost down and exceeding compliance requirements 13% 13% 30% 35% 9% Meeting the compliance requirements Public outreach/community input Reliability Exceeding the compliance requirements Keeping costs down 17
18 Support Rate Increase to Implement IRP Majority of Respondents WOULD support an electric rate increase to support the IRP outcome 39% 61% Yes No 18
19 Power Integrated Resource Plan Progress Update 2018 IRP NEXT STEPS 19
20 Next Steps Seek Community Input > Community meetings > STAG meetings until August/September > Survey Selecting Optimal Portfolio Develop IRP Plan 20
21 Power Integrated Resource Plan Progress Update THE END 21
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