Exhibit to Agenda Item #1a

Transcription

1 Exhibit to Agenda Item #1a Sandra Kopp Wednesday, Board Finance September & Audit 28, Committee 2011 Meeting and Special SMUD Board of Directors Meeting Budget 2018 Wednesday,, scheduled to begin at 5:00 p.m. Customer Service Center, Rubicon Room Powering forward. Together. 1 11/8/2017

2 Business Segments & Work Processes Grid Planning & Operations Transmission Planning and Distribution Planning Transmission and Distribution Maintenance Planning System Protection and Control Electrical Design Standards Power System Operations & Dispatch Generation Energy Management System Power Operations Engineering Distribution System Operations Commodity Procurement & Sales System Economic Dispatch for Load Energy Trading Power / Gas Contracts Gas Reserves Energy Strategy, Research & Development Distributed Energy Resources Strategy Climate Change Renewable and Distributed Generation Energy Storage & Grid Modernization Resource & New Business Strategy Resource Planning New Business Development Strategic Planning PSO / DSO Training Distribution Management Systems (GIS, ADMS) Manage Commodity Risk Energy Efficiency & Demand Response Energy Imbalance Market Distribution Operations Engineering Optimize Energy Operations Assets Electric Transportation Page 2

3 Major Initiatives Be Safe. Always Maintain a ZERO injury culture (SD-6) Refine and improve near miss process for switching errors within Distribution Operations Implement human performance improvement within control centers Page 3

4 Major Initiatives Value Our Customers and Community Enhance Customer and Community Relationships Continue to improve customer satisfaction with outage communication Implement New Outage Communication Management System Develop leadership concepts & collaborate with partners to maximize the impact of the VW Settlement within our region (SD-5,13,15, 10) Page 4

5 Major Initiatives Treasure Our Employees Develop and implement strategies that create the Workforce for the Future In 2017, all Strategic Workforce Plans were updated and critical roles were identified. Action plans were updated/developed to ensure there are no gaps in the workforce and adequate time for knowledge transfer occurred. Continue to hire employees with skills to deliver on future initiatives such as: EIM, ADMS, ETRM and DRMS. Continue to analyze retirements and identify employees readiness and potential for future leadership roles. Continue to improve communication, collaboration and decision making across Energy Operations and SMUD (SD-8) Page 5

6 Major Initiatives Operational Excellence Optimize Distribution Assets Improve utilization of existing distribution assets Refine and improve maintenance planning process (SD-2,4) Continue to improve distribution system reliability Compliance with NERC Reliability Standards Page 6

7 Major Initiatives Financially Fit Optimize Energy and Transmission Assets Optimize SMUD energy assets to meet customer load, SMUD environmental goals and minimize commodity costs Expand into valuable new markets and products Maximize transmission sales (discount rates) that includes hourly, daily, monthly and annual products Create New Revenue Streams Build a portfolio of new net revenue generating products and services through partnerships or application of new technologies and innovative ideas (SD-2,4) (SD-2,10,18) Page 7

8 Major Initiatives Sustainable Future Distributed Energy Resources (DER) Strategies and Implementation Refine DER strategies as market, technology, and policy evolves, particularly to stay competitive in the energy services Set new Energy Efficiency and related SD-9 goals following SB350 proceedings Test battery and thermal energy storage business models that better share energy storage benefits with customers as costs fall Develop an integrated DER bundle to market to existing solar customers (SD-4, 5,7, 9,10, 18) Page 8

9 Major Initiatives Sustainable Future Research and demonstrate innovative technologies in support of the utility of the future Expand building electrification for energy efficiency savings through fuel-switching while building beneficial load Bring DERs to underserved communities, through electric transit bus charging infrastructure and the North Franklin Community Energy project Implement a distribution infrastructure deferral demonstration with DERs and Locational Net Benefit Analysis (SD-4, 5,7, 9,10) Page 9

10 Major Initiatives Sustainable Future Maintain Independent Planning, Resource Development and Choices for SMUD Continue implementation of Colusa-Sutter (CoSu) 500kV Transmission Line Project Development Continue implementation of the Energy Imbalance Market (EIM) (SD- 4,9,11) Develop an Integrated Resource Plan that achieves SMUD s and the State s resource planning objectives and goals for greenhouse gas reduction and continued renewable energy expansion (SD-4,7,9) Begin Implementation of an Advanced Distribution Management System (ADMS) (SD-4,10) Page 10

11 2018 Proposed Budget $600 $500 $540 $518 $514 $ Millions $400 $300 $200 $100 $0 O&M $16 $12 $15 $9 $10 $13 Public Good Capital 2017 Budget 2017 Forecast 2018 Proposed Page 11

12 Key Assumptions Commodity Budget 2017 Budget 2017 Forecast 2018 Proposed Retail Sales to Customer (GWh) 10,415 10,937 10,472 Peak System Demand (MW) 2,913 3,157 2,889 Supply to Meet All Sales (GWh) 10,855 11,518 10, Budget 2017 Forecast 2018 Proposed Thermal (GWh) Large Hydro Renewable 1,554 2,382 1, ,976 4,512 5,361 Renewable LT Contracts Other LT Contracts ST Contracts and Other ,581 1,530 1,403 1,168 1,178 1,204 Page 12

13 Key Assumptions Commodity Budget To meet the supply needs, the costs are: Cost ($Million) 2017 Budget 2017 Forecast 2018 Proposed $ Change Proposed to Forecast Power Cost $218.9 $220.8 $212.4 (8.4) Gas Cost $221.3 $190.7 $ Transmission Cost $28.7 $29.4 $28.8 (0.5) Total Commodity Cost $468.9 $440.8 $435.1 ($5.7) Commodity Price 2017 Budget 2017 Forecast 2018 Proposed $ Change Proposed to Forecast Power ($/MWh) $70.5 $64.08 $78.24 $14.16 Gas ($/mmbtu) $4.3 $4.65 $3.91 ($0.75) Page 13

14 2018 Public Good Budget Summary Energy Strategy Research and Development $14.7M (net) Energy Efficiency Electric Transportation $3.2M 22% $3.0M 21% Grid Modernization $2.3M 15% Energy Storage Renewables & Climate Change Distributed Generation $1.5M 11% $2.0M 13% $1.9M 13% Demand Response $0.8M 5% Total SMUD Public Good budget is $96.1M. Board Authorized amount is $55M ($40.3M in Customer and $14.7M in Energy Operations). Page 14

15 Renewable Energy Goals / Status Page 15

16 Energy Efficiency Portfolio Board Goals Page 16

17 Transmission Agency of Northern California (TANC) Created in 1984 as joint powers agency. Project Manager and majority owner (87%) of California Oregon Transmission Project (COTP - 500KV transmission line from Captain Jack to Tracy). Membership consists of 15 Northern California Public Agencies. SMUD is 38.5% participant in TANC, its share increasing due to the layoff with Santa Clara and Northern California Power Agencies (NCPA) member agencies that was effective July 1, TANC COTP Budget = $44.9M / SMUD share = $17.3M (2017 Budget = $54.39M / SMUD share = $21.0M ). Included as part of the SMUD Power Budget. Page 17

18 Balancing Authority of Northern California (BANC) Created in May 2009 as joint powers agency. Membership includes: SMUD, Modesto Irrigation District (MID), City of Redding, City of Roseville, City of Shasta Lake and Trinity PUD. Provide Balancing Authority (BA) functions for members. BANC went operational in May BANC Budget = $2.1M / SMUD share = $1.4M (2017 Budget = $2.8M / SMUD share = $1.9M). Included in the Grid Operations budget Page 18