2017 ANNUAL REPORT. Rancho Cucamonga Municipal Utility Civic Center Drive P.O. Box 4499 Rancho Cucamonga, CA 91730

Size: px

Start display at page:

Download "2017 ANNUAL REPORT. Rancho Cucamonga Municipal Utility Civic Center Drive P.O. Box 4499 Rancho Cucamonga, CA 91730"

Hugo Townsend
5 years ago
Views:

1 2017 ANNUAL REPORT Rancho Cucamonga Municipal Utility Rancho Cucamonga Municipal Utility Civic Center Drive P.O. Box 4499 Rancho Cucamonga, CA Phone (909) Fax (909)

2 MESSAGE FROM THE UTILITY In the 1980s, the City of Rancho Cucamonga was better known as The City with a Plan when major commercial and residential developments began to occur in the City. This future planning shaped the way the City was built and designed today. This vision continues at the forefront for RCMU as we look ahead and plan towards smart city initiatives and connectivity in the 21st century, while continuing to manage present day electric industry challenges, investing in more renewable resources, and planning for new load growth with upcoming residential developments marked an incredibly active year for RCMU with planning playing a key role in the completion of multiple projects. Detailed planning provided RCMU staff the means to efficiently replace 541 existing commercial meters to new smart meters that will utilize the evolving cellular technology to communicate on-demand with the meters for readings, data and other remote functions. Persistent planning and coordination allowed the upgrade of 14,838 existing inefficient high pressure sodium lights to new LED light fixtures immediately after the completion of the acquisition and purchase of the City s streetlights from Southern California Edison. Finally, the adoption of the City s Fiber Optics Master Plan by the Rancho Cucamonga City Council, has set out a plan to help the City adapt to the changing needs across the community by utilizing and repurposing its existing fiber infrastructure to support high-speed broadband internet to be provided through a local retail Internet Service Provider. RCMU remains steadfast on continuing to serve our customers with reliable electricity and excellent customer service, while maintaining competitive rates in However, Smart City Technologies and the Internet of Things (IoT) are two growing trends that are here to stay, where additional devices, sensors and people will become even more connected than ever before. RCMU stands ready to embrace these new opportunities and will continue to strategically plan for the future. Fred Lyn Utilities Division Manager

3 3

4 TABLE OF CONTENTS -1- STREETLIGHTS 5-2- FIBER OPTICS 6-3- SMART METERS 9-4- RENEWABLE ENERGY LINE EXTENSION PROJECTS AT A GLANCE FINANCIAL OVERVIEW LOOKING AHEAD TO CITY DIRECTORY CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem William J. Alexander, Councilmember Sam Spagnolo, Councilmember Diane Williams, Councilmember John R. Gillison, City manager ENGINEERING SERVICES DEPARTMENT Jason Welday, Director of Engineering Services/City Engineer RANCHO CUCAMONGA MUNICIPAL UTILITY Fred Lyn, Utilities Division Manager 3

BRIGHTER FUTURE PROGRESS Higher Quality of Light

The natural daylight is spread farther and wider

5 BRIGHTER FUTURE PROGRESS Higher Quality of Light Increases Safety LED lamps generate significantly more natural white light than amber HPS lamps. The natural daylight is spread farther and wider with LEDs creating a greater visibility and safer conditions for both motorists and pedestrians. 4

1 STREET LIGHTS CITYWIDE ACQUISITION AND LED RETROFIT On June 15, 2016, the City Council approved the Purchase and Sale Agreement between the City of Rancho Cucamonga and Southern California Edison

6 1 STREET LIGHTS CITYWIDE ACQUISITION AND LED RETROFIT On June 15, 2016, the City Council approved the Purchase and Sale Agreement between the City of Rancho Cucamonga and Southern California Edison (SCE) for the acquisition of 15,299 SCE owned streetlights. The purchase was divided into five phases and the City took ownership of Phase 1 on August 16, Since streetlights are the most visible energy service provided to all residents and businesses in the City, the City pushed to have these newly acquired lights immediately retrofitted to new Light-Emitting Diode lights (LEDs) so that the City could capture not only additional cost savings, but provide a better lighting product for residents and businesses. The LEDs require 80% less maintenance, 50% reduction in energy use, and a cleaner and brighter light. Retrofitting the lights to LEDs began in late August 2017 and the majority of the lights were completed by the end of December Physically, the difference between the old High Pressure Sodium lights versus the new LED lights are dramatic where visually at night, everything becomes a bit sharper and brighter so that residents, businesses, drivers and pedestrians can see better and feel safer knowing that the lighting in their neighborhood and community has improved public safety. Financially, the City spent over $9.6 million in the purchase and ownership of these lights, in addition to over $3 million in the retrofit and upgrade to energy efficient LEDs. The ownership and retrofit of these lights will result in a 75% cost reduction on the City s Streetlight bill, resulting in annual cost savings of approximately $1 million. The City was also able to receive over $1 million in energy efficiency rebates from SCE by retrofitting to the new LED lights, helping improve the overall net cost of the project. The Return on Investment for this project is expected to be around 15 years, allowing for long term financial sustainability to the City s eight Streetlight Districts. The City is currently piloting a streetlight smart controller program on almost 1,200 arterial streetlights in the City in order to test opportunities for light dimming and Smart City initiatives. The project provides central management for lighting systems and will include an interactive map for easy navigation of assets with intuitive monitoring and control of lighting controllers. ANNUAL ENERGY SAVINGS IN KWH ANNUAL CO2 EMISSIONS REDUCTION IN POUNDS ANNUAL ENERGY SAVINGS IN DOLLARS 4.4 million kwh switching from HPS to LEDs 2.3 million $1.3 million 5

FIBER OPTICS 2 MASTER PLAN The City of Rancho Cucamonga understands that in order to evolve into a smarter city that fully realizes the potential of the internet, the internet needs to now be viewed

The City and its Municipal Utility (RCMU) owns and operates extensive underground telecommunication assets, including traffic conduit, telecommunication conduit, and fiber-optic cable.

7 FIBER OPTICS 2 MASTER PLAN The City of Rancho Cucamonga understands that in order to evolve into a smarter city that fully realizes the potential of the internet, the internet needs to now be viewed as a utility and that having high speed internet is an important economic development driver for the City. The City and its Municipal Utility (RCMU) owns and operates extensive underground telecommunication assets, including traffic conduit, telecommunication conduit, and fiber-optic cable. The City has been investing in fiber infrastructure for the last several years and realizes fiber-optic infrastructure is a key asset to Rancho Cucamonga becoming a smart progressive community. This led to the City Council authorizing staff to perform a year long fiber optic feasibility study, which led to the creation and eventual approval of the Fiber Optics Master Plan. Smart City Technologies and the Internet of Things (IoT) are two growing trends that will change the way cities operate. Cities that have some form of municipal fiber network can accommodate these smart city technologies, allowing them to be more efficient, reduce costs, and increase the value they deliver to their constituents and community. By leveraging this network to foster fiber-based broadband services, Rancho Cucamonga looks to lead the way in being the premier Smart City in the Inland Empire. Through use of these assets, the City can enable high speed broadband with choice/competition, generate new revenue, support economic development initiatives, and positively impact numerous community functions as shown. The City Fiber Master Plan most recently won the Inland Empire Economic Partnership s 2017 Turning Red Tape into Red Carpet Smart City Award, showing that Rancho Cucamonga continues to be The City with a Plan, in looking ahead towards smart city initiatives and broadband connectivity in the 21st century. 6

8 The Internet of Things (IoT) is a system of physical things embedded with sensors, software, electronics and connectivity to allow it to perform better by exchanging information with other connected devices, the operator or the manufacturer. CITY FIBER OPTICS MASTER PLAN KEY INITIATIVES Public Policy Public policy tools influence how broadband services and infrastructure develop throughout the City and shows the community and prospective newcomers that Rancho Cucamonga is serious about promoting broadband growth and accessibility. The most immediate way to encourage this growth will be for the City to review existing policy and create new Public Policy to ensure that fiber infrastructure is viewed as important and critical for the future developments of the City. Public-Private Partnership (PPP) The City is currently in final negotiations to partner with a Rancho Cucamonga based private internet service provider to deliver retail broadband services to prospective residential and business customers. This type of partnership allows the City to construct, own, and maintain physical broadband infrastructure, while the private provider delivers retail service offerings such as fast speed broadband, TV and voice options. Capital / Construction Implement a six year - $12 million capital investment plan to connect and expand existing Fiber-Optic network to over 60 miles of conduit infrastructure to key strategic areas by: Repurpose existing 38 miles of traffic conduits to General Fiber conduit use, and Building 29 miles of new conduit construction to connect existing assets. Economic Development / Smart City The municipally owned fiber network will also become a platform the City can use to support economic development initiatives. This includes attracting new businesses into the City, as well as retain or expand existing key businesses. High speed broadband has become a key aspect in economic development by attracting higher education, healthcare, and other high-tech industries into Cities. 7

9 WHAT IS AMI? Advanced Metering Infrastructure or AMI is an integrated system of smart meters, communication network, and data management software that enables two-way communication between utilities and their customers. The customer is equipped with advanced electronic meters that collect time-based data. After data collection, AMI meters transmit and provide data through a fixed network back to the utility. 8

10 33 SMART METERING.COMMERCIAL METER REPLACEMENT Smart meters equals a smart future As our projections into the coming years reveal continued customer growth for RCMU, we are committed to ensuring we grow in a way that is focused on preserving customer service and reliability, while looking ahead at cost effective solutions for meter reading and data collection to give customers greater control over their energy use. One way of doing this was to replace conventional customer meters with Smart meters. Smart meters have the capability to provide the utility and customer with more detailed information about their energy usage any time throughout the day, which in turn enables the customer to manage their energy use more proactively and more efficiently. Over a seven week period in 2017, RCMU staff completed replacement of 541 existing commercial meters to new Itron OpenWay meters. Communication to every meter was successful and RCMU staff now has the capability to communicate directly to each meter remotely to get on-demand reads, interval data and disconnection/reconnection options. This on-demand data allows for faster and more efficient billing, customer inquiries, outage detection and collection services. In the future, RCMU plans to utilize this data to integrate into a customer portal to provide customers the ability to login and see their near real time electricity usage and costs. When armed with a better understanding of their energy usage, customers can make more informed decisions on how to optimize their electricity consumption and reduce their bills. RCMU staff can now access a web portal that provides graphs, event logs and weather statistics that can be drilled down to the hour of each day to view the usage or meter activity of an individual meter to help better serve RCMU customers. The portal also provides interval data for kilowatt-hour and voltage readings which allows for faster outage detection and restoration of service. 9

4 RENEWABLE ENERGY PORTFOLIO UPDATES FOR 2017 ANTELOPE SOLAR EXPANSION Future Long Term Power Purchase Agreement The Antelope Solar Project is a 20 MW singleaxis tracking solar PV project built by

RCMU has a 5 MW share which will provide approximately 14,800 MWh per year at a low fixed cost for a 20 year term.

11 4 RENEWABLE ENERGY PORTFOLIO UPDATES FOR 2017 ANTELOPE SOLAR EXPANSION Future Long Term Power Purchase Agreement The Antelope Solar Project is a 20 MW singleaxis tracking solar PV project built by S-Power and located in the Lancaster area of Los Angeles County. The expected commercial operation date is December 31, RCMU has a 5 MW share which will provide approximately 14,800 MWh per year at a low fixed cost for a 20 year term. BOULDER CANYON PROJECT Hoover Dam Power Allocation Now Online In 2016, RCMU signed a 50 year long term resource with Hoover Dam Power to receive 3 MW of hydroelectricity. The 3 MW resource allocation began receiving power in October 2017 and will provide 6-7% of RCMU s electric load. RCMU Renewable Energy Portfolio summary (MWh) Third Compliance Period ( ) Renewable Resources CY 2015 CY 2016 CY2017 Status Contract LANDFILL GAS Mid Valley 12,184 12,070 0 Complete RCMU WIND Iberdrola (Short Term) 10, Complete RCMU Powerex (Short Term) ,000 Complete RCMU SOLAR Astoria 2 0 4,314 16,908 Online Joint Distributed City Solar ,608 Online RCMU TOTAL RENEWABLES 22,584 16,566 28,516 Retail Sales 74,663 76,186 75,509 % RENEWABLE 30% 22% 28% % CA RPS Obligation 20% 25% 25% 10

5 2017 LINE EXTENSION PROJECTS Day Creek Marketplace - A line extension on Base Line Road and Day Creek Boulevard with 1,600 linear feet of conduit and cabling was installed to service over twenty

12 LINE EXTENSION PROJECTS Day Creek Marketplace - A line extension on Base Line Road and Day Creek Boulevard with 1,600 linear feet of conduit and cabling was installed to service over twenty new commercial customers including Stater Brothers, CVS and Starbucks. GOALS Soccer Complex - Located within the existing Rancho Cucamonga Adult Sports Park, the development of the Goals Soccer Center required a short line extension of approximately 660 linear feet of conduit and cabling, including the installation of a new pad mounted transformer. RC Sports Center - The RC Sports Center located across the street from the Epicenter Sports Complex, completed a line extension which included both substructure work and electric cabling and equipment installation. Over 600 linear feet of conduit and two pad mounted transformers have been installed with additional cabling to be completed as construction concludes in the second quarter of

6 2017 at a glance 14,838 Number of HPS streetlights city-wide replaced with LEDs 19 Energy Audits performed in 2017 80,000 60,000 40,000 20,000 0 Consumption By Class (MWh) 67,066 67,465 4,421

Customers By Class CLASS CY 2016 CY 2017 Commercial 591 626 Industrial 1 1 Residential 306 306 TOTAL 896 933 40 Number of Regulatory Reports filed in 2017 16 Customers participated in the Direct

13 at a glance 14,838 Number of HPS streetlights city-wide replaced with LEDs 19 Energy Audits performed in ,000 60,000 40,000 20,000 0 Consumption By Class (MWh) 67,066 67,465 4,421 3,596 1,746 1,764 Commercial Industrial Residential CY 2016 CY ,664 kwh Approximate amount of energy saved based on the number of energy efficiency rebates issued in 2017 Number of Customers By Class CLASS CY 2016 CY 2017 Commercial Industrial 1 1 Residential TOTAL Number of Regulatory Reports filed in Customers participated in the Direct Install Program resulting in: 37,526 kwh Approximate amount of energy saved CY CY Annual System Peak (MW) On August 29, 2017, RCMU reached a new historical peak at megawatts. 12

14 7 FINANCIAL OVERVIEW FOR FISCAL YEAR 2016/17 REVENUES ($) Operations $11,389,420 Wholesale $230,820 Total Operating Revenue $11,620,240 EXPENDITURES ($) Personnel $378,320 Operations & Maintenance $1,538,910 Contract Services $475,575 Purchased Power $3,912,185 Other Operating Expenses $2,118,400 Transfer Out GF $1,207,090 Misc. / Bad Debt $8,540 Contribution to Capital Reserve Fund $900,000 Contribution to Utility Fund Balance $1,081,220 Total Operating Expenses $11,620,240 8 LOOKING AHEAD TO 2018 RCMU is constantly looking for various ways to improve upon our reliable and affordable service to our customers. Several projects that RCMU will be working on in 2018 are: Complete two capital line extension projects in order to expand electric service to two new residential communities. Complete the design and begin construction of the line extension to service The Resort Development. Continue to construct new fiber infrastructure in the City per the Fiber Optic Master Plan. Furnish and replace existing residential meters to new Smart Meters for better customer service and a cost effective solution. Conclude our Electric Cost of Service Study. 13

City of Rancho Cucamonga Fiber Optic Master Plan

City of Rancho Cucamonga Fiber Optic Master Plan History January 2016: City Council authorized Magellan Advisors to perform a fiber optic feasibility study Spring 2016 to Spring 2017: Researched and evaluated: