Energy Efficiency and Integrated Resource Planning at SMUD APPA Action Plan

1
Energy Efficiency and Integrated Resource
Planning at SMUDAPPA Action Plan EE and
Planning

• May 8, 2008
• Jim Tracy, CFO
• Jim Parks, EECRD Manager
• Sacramento Municipal Utility District

2
LEEDERS Initiative

• The LEEDERS initiative was started at the request
  of SMUDs General Manager (October 2005).
• Direction was to enhance SMUDs leadership in the
  areas of energy efficiency and environmental
  stewardship.
• LEEDERS Core Mission
• To propose a new long-term strategy for the
  aggressive integration of demand-side
  opportunities in district resource investment and
  operations.

3
Goals of LEEDERS

1. SMUD demonstrates energy and environmental
   leadership by example.
2. The highest levels of cost-effective energy
   efficiency are achieved along the entire fuel
   cycle.
3. Demand side measures are compared on a comparable
   basis to supply side options in the resource
   planning process.
4. Price signals are set to optimize efficiency and
   resource utilization.
5. Enhance energy efficiency offerings.
6. Engage the community.

4
Goal 3

• Resource planning process is more transparent
  and results in balanced portfolio decisions where
  demand side measures are compared on a comparable
  basis to supply side options.
• Relevant Outcomes
• Reliability
• Price Stability/Competitiveness
• Environmental Stewardship

5
Goal 3 Suggested Actions

• Modify internal process to make it more
  transparent and involve internal stakeholders.
• Propose that Key Value SD-9(e) be modified to
  more closely reflect wording of SB 1037 that
  states
• Each local publicly owned electric utility, in
  procuring energy, shall first acquire all
  available energy efficiency and demand reduction
  resources that are cost effective, reliable, and
  feasible.

6
Goal 3 Suggested Actions

• Include in resource comparisons/decisions an
  explicit proxy for the financial risk of
  potential future regulation (control) on mercury
  and greenhouse gas emissions.

7
Relevant Legislation

• SB1037 Loading order
• AB2021 Establishes minimum EE goals
• SB1 Sets aggressive PV goals
• AB32 1990 level GHG by 2020
• Governors Executive Order 80 GHG reduction by
  2050

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What Has Happened

• Formed an IRP Steering Committee and working
  group with representation across the District
• Revised District Strategic Directive 9 to read
• First acquire cost-effective, reliable and
  feasible energy efficiency and demand reduction
  resources. Set a goal of reducing energy
  consumption by 15 by 2018.
• Evaluation of supply and demand side resources
  and integrated portfolios considers a range of
  independent forecasts for GHG mitigation costs
• 10 to 30 per ton in shorter-term
• 30 to 90 per ton in the longer-term

9
What Has Happened

• Major expansion of energy efficiency goals
• Issued RFP for installation of advanced metering
  infrastructure
• SMUD Board is reviewing options for
  time-dependant and critical peak rates
• Evaluating demand response programs to reduce
  peak load
• Major expansion of customer outreach efforts

10
SMUDs Energy Efficiency Goals

• SMUDs board of directors adopted aggressive
  energy efficiency goals 15 over ten years
• The highest utility energy efficiency goals in
  California