IMPERIAL IRRIGATION DISTRICT Energy Consumers Advisory Committee

Transcription

1 IMPERIAL IRRIGATION DISTRICT Energy Consumers Advisory Committee Meeting Location: Videoconference Available: IID Boardroom 1285 Broadway Ave 58 El Centro, CA La Quinta, CA REGULAR MEETING: Apr. 2, p.m. ECAC Committee Members Division 1 Mark Larson Michael Abatti Division 2 Michael Anderson Dilda McFadden Division 3 Roy Alsip Freddy Nunez (Chairman) Division 4 Gil Perez Luis Zendejas Division 5 Marlene Thomas Esther Gomez City of La Quinta Frank Blum Lee Osborne City of Coachella Richard Macknicki Gilbert Ramirez City of Indio Lupe Ramos- Watson (Vice Chair) Debra Kaye County of Riverside Becky Broughton Patricia Saleh Steven Bayard Agenda I. Call to Order / Pledge of Allegiance / Roll Call II. III. Approval of Minutes: a. Mar. 5, 2012 Public Comment Period - Statement of Procedures This is a public meeting and this is the time for public comment. At this time you may be heard on any item not listed on the agenda. Those who wish to address the Committee should come to the microphone and state your name and address for the record. The Chair reserves the right to limit the speaker s time and we request that you limit your remarks to no more than five minutes. The comment period will be limited to 10 minutes. Please note the committee may make a recommendation on any item on the agenda. IV. Welcome Gilbert Ramirez Freddy Nunez V. AB 32 Greenhouse Gas Compliance Claudia Fierro VI. El Centro Unit 3 Update Henryk Olstowski VII. Coordinator Report Tony DeZego VIII. Department Update Joel Ivy IX. Member Comments Committee X. Next Meeting: May 7, 2012 La Quinta at 6 p.m. XI. Adjournment City of Palm Desert/Rancho Mirage Vacant IID Public Affairs Department 333 E. Barioni Blvd Imperial, CA / Ave 58 La Quinta, CA La Quinta Contact: Tony DeZego, (760) ajdezego@iid.com El Centro Contact: Robert Schettler, (760) rdschettler@iid.com

2 IMPERIAL IRRIGATION DISTRICT Energy Consumers Advisory Committee Videoconference: Meeting Location: Condit Auditorium IID Boardroom 1285 Broadway Ave. 58 El Centro, CA La Quinta, CA REGULAR MEETING: March 5, 2012 I. Call to Order / Roll Call / Pledge of Allegiance Chairman Freddy Nuñez called the meeting to order at 6:04 p.m. and led the Pledge of Allegiance. Members Present (La Quinta): Frank Blum, Lee Osborne, Richard Macknicki, Debra Kaye, Becky Broughton and Steven Bayard. Members Present (El Centro): Mark Larson, Michael Anderson, Freddy Nuñez, Gil Perez, Marlene Thomas and Esther Gomez. Members Absent: (El Centro) Roy Alsip, Dilda McFadden; (La Quinta) Patricia Saleh, Lupe Ramos-Watson and Gilbert Ramirez. II. Approval of Minutes from Feb. 6, 2012 A motion to approve the minutes of Feb. 6, 2012, was made by Mr. Bayard and seconded by Mr. Blum. Motion passed with one abstention from Mr. Osborne (10-0-1). Mr. Perez arrived at 6:14 p.m. and was not present for the vote. III. Public Comment Period There were no public comments. IV. Introduction of New Members Lee Osborne was introduced to the committee as the representative from the city of La Quinta. He is filling the seat formerly held by Kristy Franklin. V. Videoconference Equipment Update Management Information Systems supervisor William R. Thornburg addressed the ECAC committee and offered his and staff s sincere apologies for the echo trouble the committee had during the Feb. 6 meeting. He explained that an extensive investigation has been done into the sound and videoconferencing system and believes the technical issue has been corrected. Chairman Nuñez noted that the sound system seemed to be operating more clearly and thanked Mr. Thornburg for staff s effort. VI. MOU for Transmission Ownership Kevin Kelley, general manager, reviewed the MOU for the partial participating transmission ownership with San Diego Gas & Electric and the California Independent System Operator (CAISO) at the I.V. Substation. Mr. Larson asked if the concerns expressed during the IID board s Feb. 21 meeting have been taken care of and was curious as to what the upside and the downside will be to IID if the MOU is not approved. Mr. Kelley explained that IID s balancing authority allows it to set its own rates and believes the MOU provides a going-forward plan the district can have confidence in. IID can treat those projects as an island. He noted that the governor s office is involved throughout the process. Mr. Perez asked if there are safeguards in the MOU that would prevent the CAISO from forcing IID to become a member. Mr. Kelley said IID s balancing authority would remain intact and there would be no danger of it joining the ISO.

3 Energy Consumers Advisory Committee Regular Meeting Minutes March 6, 2012 Mr. Larson asked if there would be multiple transmission lines going across farmland if the south collector did not exist or if the Westside Main Canal would restrict them. Mr. Kelley explained that one benefit from the MOU is that San Diego has agreed to a single interconnection point, a single 230-kV double-circuit line and the projects would share a single crossing. Chairman Nuñez thanked Mr. Kelley for his presentation. VII. IID s Legislative Platform As outlined in the Six-Point Action Plan, the district s legislative platform is part of those external outreach efforts and strategic alliances instrumental for IID to continue moving forward with a unified voice and mission. Antonio Ortega, government affairs specialist, presented those federal and state legislative priorities, as they relate to energy issues, in IID s 2012 legislative platform. Responding to a question about the renewable portfolio standards by Mr. Osborne, Mr. Ortega said that the district will be monitoring the issue and reporting to the board any potential changes. Chairman Nuñez thanked Mr. Ortega for his presentation. VIII. Transmission Economic Development Rate Joel Ivy, interim Energy Department manager, provided a presentation on the proposed wholesale transmission economic development rate. Mr. Osborne asked if both the 15-year period and the 25-year periods seemed a bit long, considering the potential changes in legislation, especially in California. With regard to the 25-year period, Mr. Ivy stated that when developers make an investment in the system, the district would be paying back pretty much what it owes them. The period could be up to 25 years or it could be three years it depends on the amount of investment made. Mr. Bayard asked, in light of the state s fiscal troubles and the continual rules-changing done by the state (he cited what was done with redevelopment agencies) is it possible that IID could be forced to speed up the payback? Kevin Kelley, general manager, said the IID board has heard the same question and, in his opinion, he believes it seems more likely that the 33 percent standard will become 40, but noted that, if things do get tough enough, the economy could change the politics. Chairman Nuñez thanked Mr. Ivy for his presentation. IX. Coordinator Report Anthony DeZego, communications specialist, reported that he, along with communications specialist Bob Schettler, will be standing in for Marion Champion while she is on maternity leave. Bob will be available for any assistance the Imperial Valley members may need and Tony will be available for the Coachella Valley members. Members were advised that Form 700 needs to be completed and submitted by the end of March. X. Department Update Joel Ivy, interim Energy Department manager, reported that there are a myriad of things going on in the Energy Department. He said he wanted the committee to know that its public employees are working very diligently trying to deliver a good product at the right 2

4 Energy Consumers Advisory Committee Regular Meeting Minutes March 6, 2012 price and he offered to answer questions. Mr. Perez asked who was responsible for taking care of the street lights in a specific area of El Centro. Mario Escalera, manager of operations and energy infrastructure, said it was discovered that the copper wiring that feeds these particular street lights were stolen. This is the responsibility of the city of El Centro, who has been apprised of the situation. In general, the IID has two types of service agreements with a majority of the cities, agencies and housing groups. Under one type, IID operates and maintains the lighting; under the other, IID does light maintenance. Most agreements with cities are for light maintenance. The district has one person who is responsible for taking care of street lights in both valleys and also has a troubleshooter who specifically looks for street lights that are out. Mr. Blum asked whose responsibility it is for tree trimming when tree limbs get into power lines. Mr. Escalera reported that if the tree limb is in an IID service line, it s the district s responsibility to trim the vegetation so it doesn t interfere with the service. Mr. Blum asked how the utility held up during the wind storm that took place a few weeks ago. Mr. Escalera reported that there was very little damage in the rural areas and some damage in Sky Valley and the remote mountain areas where IID lost some poles. XI. Member Comments Chairman Nuñez welcomed new members Mr. Osborne and Mr. Ramirez to the committee. He presented Gil Perez a gavel, as a token of the committee s appreciation for serving as ECAC president for two terms (1994, 2008). Mr. Perez reported that he received a call this afternoon from ECAC member Roy Alsip and was asked to relay the message that Mr. Alsip was not able to make it to the meeting tonight, and possibly the next either, as he cannot travel due to surgery. Mr. Perez noted that members of the committee have received copies of the public benefits subcommittee minutes; summaries of the public benefit budget were made available to the committee today. Sabrina Barber, assistant energy manager for energy management and strategic marketing, explained that the final numbers for 2011 will be available in a couple of weeks. XII. Next Meeting: April 2, 2012 El Centro at 6 p.m. XIII. Adjournment There being no further business, Mr. Perez using his new gavel adjourned the meeting at 7: 15 p.m. 3

5 Imperial Irrigation District Energy Consumers Advisory Committee Agenda Report TO: FROM: SUBJECT: ECAC Members Claudia Fierro, Engineer AB 32 Greenhouse Gas Compliance DATE: April 2, 2012 Action: The Energy Department requests that the committee vote to acknowledge this report. Background: Assembly Bill 32 (AB 32) establishes a first-in-the-world comprehensive program of regulatory and market mechanisms to achieve real, quantifiable, cost-effective reductions of greenhouse gases (GHG). AB 32 makes the Air Resources Board (ARB) responsible for monitoring and reducing GHG emissions. Timeline for AB 32 implementation: By Jan 1, 2009 By Jan 1, 2010 During 2010 By Jan 1, 2011 By Jan 1, 2012 Dec 31, 2020 ARB adopts plan indicating how emission reductions will be achieved from significant sources of GHG emissions via regulations, market mechanisms and other actions. During ARB staff drafts rule language to implement its plan and holds a series of public workshops on each measure (including market mechanisms). Early action measures take effect. ARB conducts series of rulemakings, after workshops and public hearings, to adopt GHG emissions regulations including rules governing market mechanisms. ARB completes major rulemakings for GHG emissions including market mechanisms. ARB may revise the rules and adopt new ones after Jan. 1, 2011 in furtherance of the 2020 cap. GHG emissions rules and market mechanisms adopted by ARB take effect and are legally enforceable. Deadline for achieving 2020 GHG emissions cap

6 AB 32 Update California Global Warming Solutions Act Claudia Fierro Generation Engineer April 2, 2012

7 AB 32 California Global Warming Solutions Act What is AB 32? AB 32 requires the California Air Resources Board (CARB) to develop regulations and market mechanisms to reduce California's GHG emissions to 1990 levels by 2020, representing a 25 percent reduction statewide, with mandatory caps beginning in 2012 for significant emissions sources Overall Impact of AB 32 Development of renewable portfolio Energy efficiency programs implementation Reduce emissions or compete for a decreasing supply of allowances Reach 33 percent renewable energy by 2020 Pay fees for imported and owned generation 2

8 AB 32 Mandatory Reporting Regulation How is it going to affect IID? Requires facilities to report their annual GHG emissions starting in 2009 and every year thereafter What has IID done? IID reported 2008 GHG emissions for the first time IID s GHG inventories have been audited by a third party entity, and IID has received a positive verification opinion IID is currently compliant with AB 32 mandatory reporting requirements 3

9 AB 32 Cap and Trade Program What is it? Places a limit or cap on GHG emissions from covered sectors established for each year. Covers electricity generation and other industries Allowances will be issued up to the cap, either freely allocated or auctioned, and allowances can be traded Covered entities must surrender allowances or offsets equal to their emissions for each compliance period Three compliance periods: , and How is it going to affect IID? Current proposal will freely allocate allowances to Electrical Distribution Utilities Electrical Distribution Utilities shall auction allowances, and proceeds shall be used exclusively for the benefit of ratepayers 4

10 Other AB 32 Regulations How is it going to affect IID and what has been done? AB 32 Cost of Implementation Fee Regulation Fees to be paid by sources of GHG emissions. Money collected from these fees will be used to fund the State s costs of implementing AB 32 Fees will be paid for imported electricity and internal generation Fees are estimated to be around $300,000 per year Management of High Global Warming Potential Refrigerants for Stationary Sources, such as the Niland Chiller Sulfur Hexafluoride (SF6) Emission Reductions from Gas Insulated Switchgear Requires business to implement best practices to decrease refrigerant and SF6 leaks IID has developed and implemented a Management Plan and is currently compliant with both regulations 5

11 Imperial Irrigation District Energy Consumers Advisory Committee Agenda Report TO: FROM: SUBJECT: ECAC Members Henryk Olstowski, Assistant Manager, Energy El Centro Unit 3 Repower Project Quarterly Update DATE: April 2, 2012 Action: None. Project update. Background: The IID Board of Directors approved Phase 2 of the El Centro Unit 3 Repower Project on March 16, Repowering involves replacing or substantially upgrading a power plant with state-of-the-art technology to improve its efficiency and environmental performance. The project will consist of repowering the existing Unit 3 located at the El Centro Generating Station that was originally installed in Phase 2 of the project involves a fixed-priced engineering, procurement and construction contract with ARB. Siemens will provide the major equipment under a contract with IID. Siemens scope of supply includes two SGT-800 combustion turbine generators, two heat recovery steam generators and a Siemens SST-600 steam turbine generator. The generator outputs from the Unit 3 repower project will be stepped-up to transmission voltage and interconnected to the existing El Centro Switching Station.

12 El Centro Unit 3 Repower Project Henryk Olstowski Assistant Manager, Energy April 2, 2012

13 Project Status Continued excellent safety performance Major construction is largely complete, some work remains Steam turbine nearing completion Some change orders remain Punch list items Finishing touches Commissioning efforts are well underway System level checkouts nearing completion Plant level commissioning has started 2

14 Then and Now 5 months later 3

15 Schedule Completed GSU 30, 31 and 32 Backfeed HRSG Chemical Clean GTG 31 and 32 First Fire GTG 31 and 32 Synchronized to Electric System Steam Blows April - May STG 30 Synchronized to Electric System Unit 3 Tuning Contract Guarantee Testing 120-Hour Reliability Test Commercial Operation 4

16 Budget Status $250,000,000 $225,000,000 Reallocated Contingency Change Orders $200,000,000 Change Orders $175,000,000 $150,000,000 Siemens Siemens $125,000,000 $100,000,000 Base $75,000,000 $50,000,000 ARB ARB $25,000,000 $0 Owner's Costs Owner's Costs Approved Budget Committed Funds Actual Spend Earned Value 5

17 Imperial Irrigation District Energy Consumers Advisory Committee Agenda Report TO: FROM: SUBJECT: ECAC Members Tony DeZego, ECAC Coordinator Coordinator s Report DATE: April 2, 2012 As requested, attached is a copy of the ECAC attendance report.

18 ECAC Attendance Report Apr Mar 2012 Recap Name / Division 4/4/11 5/3/11 6/6/11 8/1/11 9/12/11 10/3/11 11/14/2011* Division 1 Antonio Ortega Nov 2010 Oct Michael Abatti Feb 2011 Dec Mark Larson Nov 2011 Dec Division 2 Michael Anderson Jan 2009 Dec Dilda McFadden Nov 2010 Dec Division 3 Roy Alsip Jan 2009 Dec Freddy Nunez Jan 2009 Dec Division 4 Gil Perez Jan 2009 Dec Luis Zendejas Jan 2009 Dec Division 5 Marlene Thomas Jan 2011 Dec Esther Gomez Feb 2011 Dec City of La Quinta Kristy Franklin Jan 2009 Feb Frank Blum Jan 2009 Dec Lee Osborne Feb 2012 Dec City of Coachella Arturo Aviles March 2011 Feb Richard Macknicki Jan 2009 Dec Gilbert Ramirez Feb 2012 Dec City of Indio Lupe Ramos-Watson Jan 2009 Dec Brad Ramos Jan 2009 Sept Debra Kaye Nov 2011 Dec County of Riverside Becky Broughton Jan 2009 Dec Patricia Saleh Nov 2009 Dec Steven Bayard June 2010 Dec City of Palm Desert/Rancho Mirage Catherine Walker Feb 2011 Dec *indicates special meeting 12/5/11 1/9/12 2/6/12 3/5/12