Exhibit to Agenda Item #1

Size: px

Start display at page:

Download "Exhibit to Agenda Item #1"

Lucas Barker
5 years ago
Views:

Exhibit to Agenda Item #1 Board Policy Committee and Special SMUD Board of Directors Meeting, immediately following the Board Finance & Audit Committee Meeting, following the

1 Exhibit to Agenda Item #1 Board Policy Committee and Special SMUD Board of Directors Meeting, immediately following the Board Finance & Audit Committee Meeting, following the Board Energy Resources and Customer Services Committee Wednesday, November 1, 2017, scheduled to begin at 5:30 p.m. Customer Service Center, Rubicon Room Powering forward. Together.

2 Desirability For Revenue Diversification Increase in core work tree trimming, pole replacement, cable replacement as an example Additional aging infrastructure investment (increase in end of life assets from high growth periods) New investments to meet load serving capability requirements Investments in the grid of the future ADMS, DERMS, EMS to support EIM, sensors etc. Investments in new technology to meet customer expectations and improve operations Unfunded liability and increasing labor costs Much of this must be funded through cash flow rather than debt November 1, Board Policy Committee and Special

3 Wholesale Markets Typified as operational efficiency and better existing asset utilization Predominantly just a labor investment and may require capital investment Examples: Opportunity 5 Year Forecasted New Net Revenue Status Sale of excess transmission capacity $12M - $18M Existing Reg Up/Down sales to CAISO $2M - $6M Existing Participating in CAISO EIM $7M $20M Underway Subtotal $21M - $44M November 1, Board Policy Committee and Special

4 New Products & Services Partnerships with technology companies for new product development/revenue sharing Fee for service or other products Leverages SMUD s IP and industry expertise Examples: Opportunity 5 Year Forecasted New Net Revenue Status Home Power $5M $6M Existing Power Protection $1M - $2M Existing Cell Site Leasing ~$1M Existing SMUD Energy Store $1M - $1.3M Existing 11 Existing IG Projects $0M - $6M Existing NEC/STI Partnership $0M $25M Existing Subtotal $8M - $41M November 1, Board Policy Committee and Special

5 Service Provider For Third Parties Service provider for new markets, leveraging SMUD utility expertise and assets Examples: Opportunity 5 Year Forecasted New Net Revenue Status Sacramento Power Academy $2M - $3M Existing CCA services $0M - $15M Existing Subtotal $2M - $18M November 1, Board Policy Committee and Special

6 Board Policy Criteria Brainstorming Aligns with SMUD s strengths/expertise Leverages/optimizes existing physical, technology, skill-set and reputational assets Positions SMUD for the future Benefits SMUD, our customers or the industry, and creates economic value for SMUD Invest in diversified and balanced portfolio from standpoint of: Technology, products or services Investment and revenue timeframe Risk/reward profile Doesn t compromise service to our customers or SMUD s financial health November 1, Board Policy Committee and Special

7 Discussed Process Appoint a Board Ad Hoc Committee to develop draft policy Wednesday, December 6 ERCS Committee Discuss recommendation of the Ad Hoc Committee Tuesday, December 19 Strategic Development Committee Finalize Policy November 1, Board Policy Committee and Special

Exhibit to Agenda Item #1a

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