HomeMy WebLinkAboutAgenda Packet - October 28, 2013 - UB AZUSA
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AGENDA
REGULAR MEETING OF
AZUSA UTILITY BOARD
AZUSA LIGHT & WATER OCTOBER 28,2013
729 N. AZUSA AVENUE 6:30 P.M.
AZUSA,CA 91702
AZUSA UTILITY BOARD
URIEL E. MACIAS
CHAIRPERSON
ROBERT GONZALES JOSEPH R. ROCHA
VICE CHAIRPERSON BOARD MEMBER
EDWARD J. ALVAREZ ANGEL CARRILLO
BOARD MEMBER BOARD MEMBER
6:30 P.M. Convene to Regular Meeting of the Azusa Utility Board
• Call to Order
• Pledge to the Flag
• Roll Call
A. PUBLIC PARTICIPATION
1. (Person/Group shall be allowed to speak without interruption up to five(5) minutes maximum time,
subject to compliance with applicable meeting rules. Questions to the speaker or responses to the
speaker's questions or comments shall be handled after the speaker has completed his/her comments.
Public Participation will be limited to sixty (60) minutes time.)
B. UTILITIES DIRECTOR COMMENTS
C. UTILITY BOARD MEMBER COMMENTS
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D. CONSENT CALENDAR
The Consent Calendar adopting the printed recommended action will be enacted with one vote. If Staff or
Councilmembers wish to address any item on the Consent Calendar individually, it will be considered under
SPECIAL CALL ITEMS.
1. Minutes. Recommendation: Approve minutes of regular meeting on September 23, 2013 as written.
2. Rejection of Recent Bids for Construction of a Pre-Engineered Shed for Protection of the
Hydroexcavator Trucks and Rebid the Project as Staff Determines Appropriate.
Recommendation: Reject bids received October 17, 2013, with staff to rebid, as appropriate, the
construction of a pre-engineered steel shed for storage and protection of the hydroexcavator trucks. Prior
sending the project to rebid, staff will determine if there are acceptable alternatives to the project as
previously bid.
3. Approval of Purchase of a New 2014 Ford F-150 Pick Up Truck as Replacement Standby Truck for
Electric Division. Recommendation: approve the purchase of a new stand by truck for the Electric
Division and authorize issuance of a Purchase Order to National Auto Fleet Group of Watsonville, CA,
in the amount not to exceed $27,306.78, including sales tax and delivery charges, pursuant to AMC
Section 2-523 (e), Article VII Chapter 2.
4. Award of Landscape and Irrigation Maintenance Contract to E & L Landscape Services for Azusa
Light & Water Facilities and Authorization to Terminate Existing Contract with Marina
Landscape. Recommendation: (1) Approve the award of a three-year landscape and irrigation
maintenance contract to E & L Landscape Services for the upkeep of Azusa Light& Water's 21 facilities
in the amount of$37,716 per year($113,148 for three years); and (2) authorize termination of the existing
contract with Marina Landscape Inc. due to unsatisfactory maintenance service performance and
deficiencies.
5. Approval of Roof Maintenance Contract Extension with Midwest Roofing Company Incorporated.
Recommendation: Approve the extension of the current three-year roofing maintenance contract with
Midwest Roofing Company, Inc. for an additional two years.
6. Adoption of Revised Electric Construction Standards. Recommendation: Adopt the revised (ED22)
electric construction standards to be used as references, guidelines, and regulations by customers and
staff.
7. Approval of Amended Azusa Renewable Energy Portfolio (RPS) Procurement Plan.
Recommendation: Adopt the following resolution approving Azusa's Amended RPS Procurement Plan.
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA
ADOPTING AN AMENDED RENEWABLE PORTFOLIO STANDARD ("RPS") PROCUREMENT
PLAN IN COMPLIANCE WITH STATE LAW (SBX1 2).
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E. SCHEDULED ITEMS
1. Approval of Letter Providing Direction to Athens Services on Destination Disposal Sites Following
Closure of Puente Hills Landfill and Related Disposal Agreements. Recommendation: Approve the
following items: (1) Letter to Athens Services directing that they transfer all of Azusa's post-MRF
municipal solid waste to the El Sobrante Landfill in Corona, CA, following closure of Puente Hills
landfill; (2) Agreement with USA Waste of California, Inc., dba El Sobrante Landfill, a Waste
Management company ("USA Waste") for disposal of Azusa's waste at the El Sobrante Landfill in
Corona, CA; and (3) Agreement with the Recycled Wood Products facility located in Pomona, CA, for
yard waste processing services.
2. Adoption of Resolution to Update the Public Benefit (PB) Program Rate Schedule.
Recommendation: Approve the following resolution amending Electric Rules & Regulations with the
addition of a Public Benefit Charge (PBC) rate schedule to better meet the intent of Assembly Bill 1890
legislation and cover future program cost.
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA
AMENDING AZUSA LIGHT & WATER'S RULES AND REGULATIONS TO INCLUDE A PUBLIC
BENEFIT CHARGE SCHEDULE FOR ELECTRIC UTILITY CUSTOMERS.
F. STAFF REPORTS/COMMUNICATIONS
1. Water Supply Update
2. California Municipal Utilities Association (CMUA) Legislative Update
3. Morgan Meguire LLC Federal Legislative Update
4. Presentation of Azusa CY2011 and CY 2012 Renewable Portfolio Standard Reports
G. ADJOURNMENT
1. Adjournment.
"In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a city
meeting, please contact the City Clerk at 626-812-5229. Notification three (3) working days prior to the
meeting or time when special services are needed will assist staff in assuring that reasonable arrangements
can be made to provide access to the meeting."
"In compliance with Government Code Section 54957.5, agenda materials are available for inspection by
members of the public at the following locations: Azusa City Clerk's Office - 213 E. Foothill Boulevard,
Azusa City Library- 729 N. Dalton Avenue, and Azusa Light& Water-729 N.Azusa Avenue,Azusa CA."
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Information Item
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AZUSA
_IGNT R''NATE R
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE MORROW, DIRECTOR OF UTILITIES
DATE: OCTOBER 28, 2013
SUBJECT: AZUSA WATER SUPPLY UPDATE
The Baldwin Park Key Well, a key indicator of the groundwater supply in the Main San Gabriel
Water Basin is currently at elevation 195.04 October 18, 2013. The historic low at the Key Well
was 189.2 feet on December 3, 2009. The elevation of the Key Well is decreasing at about 0.33
feet per week. It is predicted that the Key Well may be as low as 190 feet by November 1 if no
rain occurs prior to that date. Watermaster deliveries from USG-3 that began in October will
slow the decline of the Key Well,but rain is necessary for full recovery of the Key Well.
The new water year began October 1, and rainfall to date is .43 inches, measured at the Pasadena
powerhouse. This is 50% of average.
Upper San Gabriel Valley MWD replenishment delivery to the River was turned on October 2 at
a flowrate of 250 cfs (500Acre Feet per day) with approximately 40 cfs of water being diverted
to the Canyon Basin and the remainder of the water going to the Main Basin. Currently, the
North Pit of the Canyon Basin is 21 feet below overflow and dropping at 0.50 feet per week; the
South Pit is 32 feet below overflow and rising. USG-3 is scheduled to run until mid-November.
River inflow to San Gabriel Dam is currently 8.0 cfs. The Pasadena Conduit is out of service and
not delivering water from San Gabriel Reservoir to the Committee of Nine Canal.
. The Azusa Treatment Plant is delivering approximately 3.0 million gallons per day(MGD) to the
system. Current Azusa system demand is 19.85 MGD which is being met by the wells and the
treatment plant.
The amount of water behind Morris Dam is 7,915.6 AF, and the water behind San Gabriel Dam
is 3,477.7 AF. Cogswell Dam is nearly dry, below 82.2 AF. The maximum capacity of all three
reservoirs is 83,478 AF; the current combined storage is 11,476 AF, 14 percent of capacity,
including minimum pool. Usable storage remaining above minimum pool is 1,469 AF.
Water Supply Update
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October 28,2013
Page 2
Continued water conservation will be necessary to reduce demand on what will be limited water
supply availability as water flows from USG-3 and the Canyon Basin recovers. Without rain, the
recovery will be slow.
Statewide, water availability conditions are similar to our local conditions. Last spring, the State
Water Project allocation for San Gabriel Valley MWD, our local supplier, was set at 35% of their
"normal" allotment of 28,800 AF. So far, it appears that the allocation for the upcoming year
could be significantly lower unless rainfall increases and snowpack in the Sierras is normal or
better. The preliminary estimate of the upcoming allocation is 15%. Currently the snowpack at
Donner Summit is nearly non-existent with a current water content of 17% in what little snow
they can find. Sierra runoff is necessary to supply water to the State Water Project
Around the State, reservoir levels are faring no better that the snowpack. San Luis Reservoir, an
important reservoir is currently at less than 25% of capacity. Metropolitan Water District says
they have enough stored water to last through one bad winter, but without rain, next year could
be difficult.
Prepared by: Chet F. Anderson P.E., Assistant Director-Water Operations
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AZUSA
A
iIGNT &'i0.'ATE
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: OCTOBER 28, 2013
SUBJECT: CALIFORNIA MUNICIPAL UTILITIES ASSOCIATION (CMUA) LEGISLATIVE
UPDATE
The attached October legislative update from the California Municipal Utilities Association
(CMUA) recaps the last of CMUA monitored/sponsored bills that were recently signed by
Governor Jerry Brown:
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Bill Title Position
AB 8 (Perea) Alternate Fuel Vehicles Funding Programs Support
AB 792 (Mullin) Clean DG: Utility Use Tax Exemption 2020 Oppose
AB 1257 (Nazarlan) Natural Gas Benefits: CEC Report Support
SB 359(Corbett) EV Incentives: Temporary Funding Support
Water 116144 .
AB 115 (Perea) Safe Drinking Water Support I
AB 803 (Gomez) Recycled Water Support
AB 850(Nazarlan) Water Financing Support
SB 322 (Hueso) Water Recycling Support
SB 620(Wright) Groundwater Support
More details on these signed energy and water,bills can be found at www.CMUA.org.
Prepared by: Liza Cawte, Senior Administrative Technician
Attachment: CMUA Legislative Update
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41. I�� 915 L Street Suite#1460+Sacramento,CA 95814+(916)326-5810
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This week, Governor
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bills.The recap below
AB 8(Perea)Alt-Fuel Vehicles Funding Programs-CMUA SUPPORT
details CMUA position Extends various fees that are collected to fund clean vehicle and clean air programs
and signature status. at the Air Resources Board and Energy Commission from sun setting 2016,to instead
sunset 2024.
AB 792(Mullin)Clean DG:Utility Use Tax Exemption 2020-CMUA OPPOSE
Exempts a city from collecting a utility user tax on clean or renewable distributed
generation for the next six years. Prohibition expires January 1,2020.
AB 1257(Nazarian)Natural Gas Benefits:CEC Report-CMUA SUPPORT
Beginning November 1,2015 this bill would require the Integrated Energy Policy Report
(IEPR)to include an assessment of natural gas and its many existing and potential
beneficial uses,including its advantages and disadvantages as an energy or fuel
source.
SB 359(Corbett)EV Incentives:Temporary Funding-CMUA SUPPORT
Appropriates$30 million to be used for the Clean Vehicle Rebate Project and the
Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project,
AB 327(Perea)NEM/RPS and IOU and CARE Rate Reform
Makes several changes to investor owned utilities specific to rates,and allowing the CPUC to consider maximum"fixed charges"
on a utility customers bills. The law also authorizes the CPUC to consider increasing the RPS.
SB 4(Pavley)Hydraulic Fracturing
This law requires additional oversight and monitoring over the use of"well stimulation techniques"that include the use of
hydraulic fracturing. In addition to new regulations developed by the Division of Oil,Gas,and Geothermal Resources,numerous
agencies and third parties would assess the overall health risks of the use of well stimulation techniques and beginning 2016
) report their finding to the Legislature.
SB 43(Wolk)GreetTariff Shared Renewables
Creates a 600 MW pilot program whereby the state's three largest investor owned utilities must.develop a green tariff shared
renewables program to allow voluntary participation by their customers to purchase varying amount of renewable power that
may be credited to their account.Program sunsets 2019.
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tiorts
BAB 115(Perea)Safe Drinking Water-CMUA SUPPORT €, Amor
115dsthe eligibility for planning grants from the SDWSRF by allowing multi-agency grant applications when at least one of the
communities served by the planned construction project is a disadvantaged community that is not meeting safe drinking water
standards.
AB 803(Gomez)Recycled Water-CMUA SUPPORT
Would allow the use,of recycled water in cemeteries and requires that a cemetery,supplied with recycled water that installs a
hose bib in a public access area post viable signage indicating that the recycled water is not safe for drinking.The bill makes
other changes to the recycled water statutes.
AB 850(Nazarian)Water Financing-CMUA SUPPORT
The bill would allow JPAs to issue rate reduction bonds to fund mandated water capital projects. The investors in rate reductions
bonds would be repaid from a separate charge on customers'bills that would be collected by the water utility on behalf of the
JPA.
SB 322(Hueso)Water Recycling-CMUA SUPPORT
Sets a deadline of February 15,2014,for the CDPH to convene and administer an expert panel to advise on public health
issues and scientific and technical matters regarding the development of uniform waterrecycing criteria for indirect potable
reuse through surface water augmentation,and to investigate the feasibility of developing uniform water recycling criteria for
direct potable reuse.
SB 620(Wright)Groundwater-CMUA SUPPORT
Allows the Water Replenishment District of Southern California(WRD)to maintain sound finances by increasing the penalty that
may be imposed for a failure to file specified reports and statements.WRD manages one of thelargest groundwater basins in
-via CMUA.org
More details on ENERGY bills
More details on WATER bills
Hear it first...
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AZUSA
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INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: OCTOBER 28, 2013
SUBJECT: FEDERAL LEGISLATIVE UPDATE BY MORGAN MEGUIRE LLC
Attached is Morgan Meguire LLC's federal legislative update sent to Southern California Public
Power Authority(SCPPA) members. The October report includes update on the following issues:
1. Congressional Overview
- Federal government shutdown
2. Energy Policies
- Withdrawal of Federal Energy Regulatory Commission (FERC) chair nominee
Ron Bins
- Energy Efficiency amendments
- RTOs/ISOs Markets examination
- Nuclear Regulatory Commission (NRC)Nuclear waste compliance review
- Western Energy imbalance market
- Smart Grid Advancement Act of 2013
3. Cyber Security
- Homeland Security Committee works to refine its cybersecurity bill.
4. Dodd-Frank Implementation
- Senators, FERC call for coordination between FERC and Commodity Future
Trading Commission (CFTC).
5. Environmental Protection Agency(EPA) Regulations
- EPA releases rule limiting carbon emissions from new power plants.
6. Nuclear Regulatory Commission(NRC)
- NRC proposes waste confidence rules.
- Closure of Vermont Yankee plant due to "design flaws".
Prepared by: Liza Cawte, Senior Administrative Technician
Attachment: Morgan Meguire LLC Report
Morgan Meguire LI ,C
Memorandum
TO: Bill Carnahan, Executive Director
FROM: Lori J. Pickford, Executive Vice President
DATE: October 8, 2013
RE: October Legislative Report
I. Congressional Overview
The federal government shut down for the first time in 17 years on Oct. 1 as the two parties and
chambers could not reach agreement on a continuing resolution(CR) to keep agencies funded for
all or part of FY 2014. At issue is funding for the Affordable Care Act,many parts of which
took effect the same day. As of this report, it is unclear how long a shutdown might last, as party
leaders are reportedly not in discussions to resolve the impasse.
On Sunday, Oct. 6, House Speaker John Boehner told ABC News that he did not have the votes
to pass a "clean" spending bill; however. 22 Republicans reportedly have sent a letter saying they
would vote"yes"if such a measure came to the floor. If that is true, nearly all Democrats would
have to support it in order for it to pass the House. However, House leadership so far has been
unwilling to advance such a bill.
Looming on the horizon is another showdown over increasing the debt limit. Congress' failure to
raise the limit would have fiscal consequences far more serious than a government shutdown; it
would involve an international default on the full faith and credit of U.S. financial obligations.
Many of the most conservative House GOP Members believe that this will give them more
leverage to force concessions on the health care law and other issues key to their constituents.
II. Energy Policy
a. FERC Chair Nominee Withdraws
In a Sept. 30 letter,the President's nominee to chair the Federal Energy Regulatory Commission
(FERC), Ron Binz, withdrew himself from consideration. Binz was facing a tie vote at best in
the Committee. After a contentious confirmation hearing, all Republicans on the panel and Sen.
Toe Manchin(D-WV) declared opposition-to Binz for his positions on coal and natural gas, and
over concerns about how he would lead the agency.
Binz also drew fire from the panel's Ranking Member, Lisa Murkowski (R-AK), over his
misleading statements about his coordination with outside consultants and interest groups during
the confirmation process.
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Names being discussed in trade press as the President's possible pick to chair the Commission
include: Colette Honorable, Chair of the Arkansas Public Service Commission and soon-to-be
NARUC President; and Regina Speed-Bost, a Schiff Hardin attorney specializing in energy law.
Alternatively, Obama could name one of two sitting Democratic FERC commissioners, John
Norris or Cheryl LaFleur, as Chairman and nominate a new candidate for the open seat,hoping
that this would diffuse potential opposition somewhat.
Commissioner Norris, however, may have taken himself out of contention politically by publicly
stating that staff to Senate Majority Leader Harry Reid (D-NV)told him that Reid blocked his
nomination for Chair because he is too"pro-coal." Reid's office denied that the exchange
occurred.
b. Energy Efficiency
Bipartisan legislation(S. 1392) sponsored by Sens. Jeanne Shaheen(D-NH) and Rob
Portman (R-OH) was again pulled from Senate floor consideration to address
pressing fiscal issues(mentioned above). The two Senators continue trying to reach
agreement on a set of acceptable amendments to their underlying bill.
Of interest to both cooperative and municipal utilities is an amendment by Sen. John
Hoeven(R-ND) to exempt from certain DOE appliance standards large electric
resistant hot water heaters that are used by utilities for demand response. Many
public power systems use these types of heaters to help shave load and also lower
customers' electric bills. The amendment has bipartisan support and efforts are
underway to include the provision in the Manager's Amendment.
c. RTOs/ISOs
On Sept. 23, 2014, Energy and Power Subcommittee Chair Ed Whitfield(R-KY), Joe
Barton(R-TX) and 11 other Subcommittee Republicans sent a letter to FERC
Chairman Jon Wellinghoff asking the Commission to expand its examination of
centralized capacity markets by taking a "holistic view"of various RTO markets.
The letter asked the Commission to address these issues at its Sept. 25 technical
conference on centralized capacity markets or in a future proceeding. Public power
has consistently asked for Congressional oversight of electricity markets, focused on
customer costs, and thought the letter was well drafted. It is unclear what FERC will
do in response.
d. Nuclear Waste
At a Sept. 10 hearing of the House Energy and Commerce Subcommittee on Environment and
the Economy, Republicans argued that the Nuclear Regulatory Commission(NRC)has not done
enough to comply with existing law, after an August federal court ruling confirmed it must move
forward with the licensing process for the Yucca Mountain nuclear waste repository.
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In the month since the decision was issued, the NRC has issued a request for stakeholder
comment on the ruling and asked staff to develop a suite of options to move forward, given that
only$11 million remains allocated to fund the process. Senate Majority Leader Harry Reid(D-
NV), a staunch opponent of storing nuclear waste at Yucca Mountain, has said that the funds are
insufficient to make any progress, and the NRC is still mulling whether or not to challenge the
court's ruling.
Republicans on the panel, such as Chair John Shimkus(R-IL), however, said there was at least
one major item—the third volume of a safety evaluation report(SER)—that was within the
NRC's existing budget. Former NRC Chair Greg Jaczko had previously testified that later
iterations of the SER were just a few months from completion, Rep. Phil Gingrey(R-LA) also
pointed out.
NRC Chair Allison Macfarlane replied that part of the information the Commission requested
from the staff was an update on how much completion of the SER would cost. Previous
estimates were$6.5 million, which would be achievable within the account's $11 million limit.
However, she also noted that staff with institutional knowledge of the project had been
reassigned or retired, and that reassembling the group would take some time.
On Sept. 27, a bipartisan group of 81 House Members, including 50 Republicans and 31
Democrats, sent a letter to NRC Chairman Alison Macfarlane in support of using available
appropriated funds to complete the SER.
e. Western Energy Imbalance Market
House Natural Resources Committee Chairman Hastings and Ranking Member Peter DeFazio
(D-OR)wrote a Sept. 10 letter to Energy Secretary Ernest Moniz, encouraging him to allow for
complete and thorough analysis on whether the Western Area Power Administration(Western)
and the Bonneville Power Administration(Bonneville) should join a Western Energy Imbalance
Market(EIM). Certain large western utilities and others are touting an EIM as the best answer to
integrating wind and solar resources into the grid.
The core function of an EIM is to have one centralized computer system automatically re-
dispatch generation every five minutes within real time transmission operating limits,to achieve
a lower cost solution across the entire market footprint. Despite the intent, some are finding that
the operating costs of an EIM may outweigh the benefits. Further, whether an EIM and its
participants would be subject to FERC jurisdiction or not—a major concern for non-
jurisdictional utilities—would need to be resolved.
In the letter, Hastings and DeFazio expressed particular concern that`Bonneville and Western
may be required by your Department to join an EIM without regard to whether an EIM is in the
best interest of the customers and consumers in our region. If an EIM is pursued, it must be done
in a way that does not injure long-standing success in crafting regional solutions or lead to the
formation of broader electricity market structures that have been repeatedly rejected in the
Northwest."
The Members urged the Secretary to allow the NWPP Initiative Phase 2 Work Plan to conclude
"and to ensure that Bonneville and Western are able to make a sound business decision about
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whether an EIM is the most effective and efficient means of integrating intermittent energy,
maintaining system reliability, and advancing the interest of consumers." Phase 2 is expected to
be completed around the end of 2013.
f Smart Grid Bill Targeting Utilities Introduced
Rep. Jerry McNerney(D-CA)has introduced the "Smart Grid Advancement Act of 2013" (H.R.
2685), which directs load-serving entities(LSEs)to develop demand reduction programs to
reduce peak load. The bill does not mandate such programs,but is an effort to encourage
utilities that have a baseline in excess of 250 megawatts to embrace smart grid technology or
other means to shave peak demand.
The bill has been referred to the Energy and Commerce Committee. It has two cosponsors --
Reps. Matt Cartwright(D-PA) and Scott Peters(D-CA).
The bill defines a utility's"applicable baseline" as"the average of the highest three annual peak
demands over 5 years"immediately prior to enactment of the bill.
Peak load can be reduced through the use of demand side programs with customers, energy
storage or distributed generation,or through the use of smart grid technology. The bill would
also direct FERC to publish a methodology to allow adjustments to an LSE's baseline, taking
into account the number of customers served, weather conditions, or economic conditions, for
example.
In addition, the bill would instruct the Department of Energy(DOE) to do an assessment of
smart grid effectiveness in designated Energy Star products, and with the Environmental
Protection Agency to complete an analysis of the potential energy savings, greenhouse gas
reductions, and electric costs savings from use of smart grid technologies in conjunction with
Energy Star products.
III. Cyber Security
The House Homeland Security Committee is working to refine its cybersecurity bill, which may
be released soon.
The electric sector cyber coalition submitted comments on the first and second drafts of the bill,
saying that the bill could undermine industry efforts now underway, including industry's recent
revision of the charter for the Electric Sector Coordinating Committee, its constructive
relationship with DOE as its Sector-Specific Agency, and current operations of the Electric
Sector Information Sharing and Analysis Center(ISAC).
The electric sector also urged changes to provisions in the draft authorizing the National Institute
of Standards and Technology(NIST)to develop voluntary cybersecurity standards for all
sectors.
Previous versions of the draft bill would have authorized the Department of Homeland Security
to designate Sector Specific Agencies for all critical sectors, establish Sector Coordinating
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Councils, and create ISACs for all critical sectors, including the energy sector. It remains to be
seen if the anticipated third draft will address the electric sector's concerns.
Although trade press earlier predicted that Senate Intelligence Committee Chair Dianne Feinstein
(D-CA)was poised to release draft legislation to address cybersecurity information sharing and
privacy issues, some Hill staff said prospects for such a bill are dim, given the Committee's
concern about the Snowden security breach and on-going controversy over National Security
Agency activities.
NIST is expected to release its Draft Cybersecurity Framework on Oct. 10,but the government
shut-down could delay the issuance. It will likely be published in the Federal Register and a
workshop noticed for mid-November.
IV. Dodd-Frank Implementation
a. Senators, FERC Call for Coordination between FERC and CFTC
On Sept. 6, Sens. Feinstein and Senate Energy and Natural Resources Committee Chairman Ron
Wyden(D-OR) released an Aug. 28 letter from FERC Chair Jon Wellinghoff stating that he
supports a legislative fix to determine whether FERC can bring market manipulation cases
regarding energy futures. A federal appeals court ruled earlier this year that such futures are the
exclusive province of the Commodity Future Trading Commission(CFTC).
Wyden and Feinstein had written to Wellinghoff asking him to report on the progress of the
Memorandum of Understanding(MOU)between FERC and CFTC required by the Dodd Frank
Act. Wellinghoff's response said that a MOU on information sharing had not been completed
and, as a result, FERC is not able to obtain critical market manipulation data from CFTC. The
court case complicated a previous MOU on the two agencies'jurisdiction.
Wyden agreed to a legislative solution, saying, "While FERC has already taken major
enforcement actions against traders and companies that manipulated energy prices, it appears
that their federal counterparts at the CFTC have been working to undermine FERC's efforts.
Chairman Wellinghoff has asked Congress to step in and I will be consulting with our colleagues
on Capitol Hill about doing exactly that."
V. Environmental Protection Agency Regulations
a. EPA Releases Rule Limiting Carbon Emissions from New Power Plants
On Sept. 20, the Environmental Protection Agency(EPA)released a re-proposed New Source
Performance Standard (NSPS) limiting the amount of CO2 emissions from future power plants.
The NSPS will require that any new gas-fired power plant emit no more than 1,000 lbs of CO2
per megawatt hour, while any new coal-fired power plant will have to stay below 1,100
lbs/MWh(or 1,000-1,050 lbs/MWh per year averaged over 7 years).
In remarks at the National Press Club, EPA Administrator Gina McCarthy acknowledged that the
standard requires carbon capture and storage— a technology not yet commercially available— as
a feature of any new coal-fired plant. However, she said EPA and the Obama Administration
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view the standards as "achievable" and made clear that the standard proposed for new plants is
not an indication of the level of stringency the agency plans to place on existing plants.
"The proposal we're putting out today is about new sources,"McCarthy said,noting that the
Clean Air Act allows EPA to establish stricter standards for new power plants than it would for
existing plants. "These standards should not indicate that we think we can retrofit existing
facilities by plunking carbon capture and sequestration on the end."
In a fact sheet accompanying the rule, EPA says its standard"reflects an ongoing trend in the
power sector"towards natural gas and is therefore"not expected to have notable costs and are
not projected to impact electricity prices or reliability."
Immediately after the proposal was issued, Senate Minority Leader Mitch McConnell (R-KY)
announced he would challenge it under the Congressional Review Act, which allows Congress to
remand a final rule back to the agency that wrote it. That tactic has only been successful once in
the law's history, but it is likely that Members of Congress will push back on the NSPS in a
variety of ways.
The re-proposed rule is likely to face legal challenges as well. Litigation may question whether
CCS is truly"commercially available"or take issue with some technical aspect of the rule.
However, this version of the rule is more defensible than the last,because it does not rely on
fuel-switching as a control technology as the previous rule did. EPA received numerous
comments indicating that logic was unsound and withdrew the proposal as a result. Furthermore,
jurisprudence on GHGs and the Clean Air Act in Massachusetts v. EPA and subsequent cases
suggest EPA may well prevail in the end.
VI.Nuclear Regulatory Commission
a. NRC Proposes Waste Confidence Rules
On Sept. 13, the NRC proposed a Waste Confidence Rule in response to the D.C. Circuit Court
of Appeals' ruling last year that the ability of nuclear facilities to store waste in dry casks needed
to be updated in light of the ongoing difficulties in siting a permanent storage facility at Yucca
Mountain. The NRC also released a draft generic environmental impact statement(GEIS).
The GEIS determines that it is feasible to safely store spent nuclear fuel at a reactor site for 60
years after the site has been decommissioned and that it is reasonable to expect that a permanent
geologic repository will be licensed within the next 60 years. The new finding is in line with the
prior ruling, but incorporates the analysis the Court required. It also finds that there are no
significant environmental impacts associated with dry cask storage.
"From our initial review it appears the GEIS adequately addresses the aspects of the agency's
analysis the court previously found lacking," said the Nuclear Energy Institute in a statement on
the document. "The GEIS also appears to provide sufficient bases for the commission to reach
conclusions regarding safe storage of used fuel following the expiration of a reactor license and
the availability of a repository within 60 years after licensed reactor life for operation."
6
40 087
The agency has scheduled a series of public meetings across the country between Oct. 1 and
Nov. 14 to gather public comments on the proposals.
b. Vermont Yankee Shuttered;Navigant Study Examines Nuclear Future
Entergy Corporation's Aug. 27 announcement that it will close its embattled Vermont Yankee
plant, partially due to "design flaws"in the New England competitive markets, came as an
unsurprising but chilling development to the nuclear industry.
On the same day,Navigant Consulting released a report titled "Assessment of the Nuclear Power
Industry" applauding the nuclear sector's development,but raising concerns as to whether
nuclear power stakeholders can adapt to future electric market needs over the next 50 years.
According to the report, disagreements on potential nuclear waste disposal are the most complex
problem within the industry. The report also addresses the nuclear industry's competition from
the insurgence of gas-fired power plants. However, the report also points to the carbon-free and
local economic benefits of nuclear power as two relevant factors when addressing future
development plans.
Overall, the study reports on a variety of data including the size and scope of the global industry,
as well as timelines of regulatory and legislative intervention. Although the report was finalized
in June 2013, it was not released to the public until August 2013.
7
41 08 8
Information Item
Presented 10/9.g/ a-q/3fil ielli
A
AZUSA
I�GNt i WATFP
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: OCTOBER 28, 2013
SUBJECT: PRESENTATION OF AZUSA CY2011 AND CY2012 RENEWABLE
PORTFOLIO STANDARD REPORTS TO BE SUBMITTED TO THE
CALIFORNIA ENERGY COMMISSSION
BACKGROUND
In accordance with requirements of the Renewable Portfolio Standard - Senate Bill X1 2 (SBX1
2), each year a Publicly Owned Utility (POU) shall present to its Board information related to its
renewable energy resources procurement status and future procurement plans. SBX 1 2 also
requires that the information be submitted to the California Energy Commission and also be
made available to the public.
Moreover, on October 1, 2013 the California Energy Commission's (CEC) Enforcement
Procedures For The Renewables Portfolio Standard For Local Publicly Owned Electric Utilities
("regulations") became effective. The regulations require that within 30 days from their effective
date the Publicly Owned Utilities (POUs) submit to the CEC report on their renewable energy
procurement and compliance for calendar years 2011 and 2012. The report needs to be submitted
in a CEC prescribed format. Accordingly, attached for your review and consideration are reports
Staff will be submitting to the CEC on October 30, 2013.
Report highlights:
In general, Azusa has met the targeted 20%procurement/allotment of renewable energy products
for each of the two calendar years—2011 and 2012. The renewable products used for compliance
are of the two following categories:
1) Historic carryover (HCO) energy — procurement of renewable energy during the years
2004 — 2010 under contracts executed before January 1, 2011 (subject to certain CEC
formula derived limitations), and
2) Energy from grandfathered contracts — renewable energy procured under contracts
executed before June 1, 2010
RPS Report for CY 2011k�10i2 •
October 28,2013
Page 2
Azusa expects to meet 20% renewable procurement target in 2013 for a total expected combined
procurement of 20% for the first Compliance Period 2011-2013.
In January 2013, Azusa executed two 3.5 MW 25-year contracts for renewable energy
procurement expecting to yield about 17,000 MWh per year. The energy deliveries under these
contracts expect to commence in January 2015.
Additionally, in September 2013, Azusa executed three 25-year contracts for renewable energy
procurement(3 MW, 1.3 MW and 1.7 MW), expecting to yield about 17,000 MWh per year. The
energy deliveries under the contracts will commence in 2016.
FISCAL IMPACT
There is no fiscal impact at this time.
Prepared by: Yarek Lehr, Assistant Director of Resource Management
Attachment:
CEC designed spreadsheet for 2011 & 2012 RPS Report populated with Azusa report data
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09t
STATE OF CALIFORNIA
Compliance Report Form for Local Publidy Owned Electric Utilities �y
CEC-RPS-POU(Revised 102013)
CALIFORNIA ENERGY COMMISSION
WREGIS Facility Facility Renewable Facility Source Name-as
Contract ID' RPS ID2 Facility Name 104 County' State' Eligibility Online Technology registered with Notes"
ID Dater Date' On-line Date webRegistry70
ALW-2011-1 60726A Highwinds Project W229 Solano CA 10/3/2008, 8/25/2003 N/A
ALW-2011-2 60802A Garnet Wind Energy W1294 Riverside CA 4/8/2009 2/23/2009 N/A
ALW-2011-3 60619A Lake Penis Power Plant W474 Los Angeles CA 3/30/2005 5/1/1983 N/A
ALW-2011-3 60623A Rio Hondo Power Plant W470 Los Angeles CA 3/30/2005 3/1/1984 N/A
ALW-2011-3 60624A Coyote Creek Power Plant W469 Los Angeles CA 3/30/2005 4/1/1984 N/A
ALW-2011-3 60626A Valley View Power Plant W472 Los Angeles CA 3/30/2005 7/1/1986 N/A
San Gabriel Valley Municipal Water
ALW-2011-4 60331A Districts Small Hydro Gen Facility W1622 Los Angeles CA 3/30/2005 1/28/1986 N/A
ALW-2012-5 60726A Highwinds Project W229 Solano CA 10/3/2008 8/25/2003 N/A
ALW-2012-6 60802A Garnet Wind Energy W1294 Riverside CA 4/8/2009 2/23/2009 N/A
ALW-2012-7 60619A Lake Penis Power Plant W474 Los Angeles CA 3/30/2005 5/1/1983 N/A
ALW-2012-7 60623A Rio Hondo Power Plant W470 Los Angeles CA 3/30/2005 3/1/1984 N/A
ALW-2012-7 60624A Coyote Creek Power Plant W469 Los Angeles CA 3/30/2005 4/1/1984 N/A
ALW-2012-7 60626A Valley View Power Plant W472 Los Angeles CA 3/30/2005 7/1/1986 N/A
San Gabriel Valley Municipal Water
ALW-2012-8 60331A Districts Small Hydro Gen Facility W1622 Los Angeles CA 3/30/2005 1/28/1986 N/A
CEC-RPS-POU Apra 2013
I"1
STATE OF CALIFORNIA
Compliance Report Form for Local Publicly Owned Electric Utilities
CEC-RPS-POU(Revised 10/2013) CALIFORNIA ENERGY COMMISSION ' '
Annual RPS Report: Accounting
Input Required
Actual Data
Forecasted Data
Compliance Period 1
Actual Forecasted
Annual RPS Procurement and Percentages
(MWh) 2011 2012 2013
Annual Retail Sales 231,642.4770 235,963.8790 237,834.0000
Annual RPS Procurement Retired 44,823.0000 l 40,509.0000 l 36,458.0000
Soft Targets 20.00% 20.00% 20.00%
Annual RPS Procurement Percentage 19.35% 17.17% 15.33%
Compliance Period 1
Procurement Target(MWh) 2011 2012 2013
Procurement Target 141,088.0712
Category 0 RECs Retired 44,823.0000 40,509.0000 36,458.0000
Category 1 RECs Retired l
Pre-June 1, 2010 Category 1 RECs Retired' j
Category 2 RECs Retired r
t i
Pre-June 1, 2010 Categorx 2 RECs Retired2 l
Category 3 RECs Retired l
Pre-June 1, 2010 Category 3 RECs Retire&
Soft Targets 20.00% 20.00% T 20.00%
RECs Retired as Percentage of Retail Sales 19.35% 17.17% + 15.33%
Forecasted Total RECs Retired(Compliance 121,790.0000
Period)
CEC-RPS-POU April 2013
C.0
STATE OF CALIFORNIA
Compliance Report Form for Local Publicly Owned Electric Utilities
CEC-RPS•POU(Revved 10/20131 CALIFORNIA ENERGY COMMISSION
RPS Compliance Period Report:Accounting
To be completed at the end of each compliance period.
Input Required
Actual Data
Forecasted
ForeecastedstedDData
Compliance Period 1
Actual
Annual RPS Procurement and
Percentages(MWh) 2011 2012 2013
Annual Retail Sales 231,642.4770 I 235,963.8790 I 237,834 0000
Annual RPS Procurement Retired 44,823.0000 I 40,509.0000 I _36,458.0000
Soft Targets 20.00% 20.00% ) 20.00%
Annual RPS Retirement Percentage 19.35% 17.17% I 15.33%
Total RECs Procured(Compliance Period) 121,790.0000
Compliance Period 1
Procurement Target(MWh) 2011 I 2012 I 2013
Procurement Target 141,088.0712
Categ2a 0 RECs Retired 44,823.0000 j 40,509.0000 36,458.0000
_Category 1 RECs Retired 0.0000 1 0.0000 0.0000
_ Pre-June 1,2010 Category 1 RECs Retired 0.0000 0.0000 0.0000
__Category 2 RECs Retired 0.0000 I 00000 0.0000
Pre-June 1,2010 Category 2 RECs Retired 0.0000 0.0000 1 0.0000
Category 3 RECs Retired 0.0000 0.0000 I 0.0000
Pre-June 1,2010 Category 3 RECs Retired 0.0000 I 0.0000 ' 0.0000
Sum 121,790.0000
Historic Carryover Applied' 19,298.0712
Total RECs Retired(Compliance Period) 141,088.0712
Compliance Period I
Portfolio Balance Requirements(MWh) Total Retired Applied to Target' Potential Excess
Category 0 RECs Retired 121,790.0000 121,790.0000 0.0000
Historic Carryover Applied 19,298.0712 19,298.0712 0.0000
Category 1 RECs Retired* 0.0000 0.0000 0.0000
Pre-June 1,2010 Category 1 RECs Retired 0.0000 0.0000 0.0000
Category 2 RECs Retired 0.0000 0.0000 0.0000
Pre-June 1,2010 Category 2 REC5 Retired 00000 0.0000 0.0000
Category 3 RECs Retired" 0.0000 0 0000 n/a
Pre-June 1,2010 Category 3 RECs Retired 0.0000 0.0000 n/a
Total RECs applied to the Target"` 141,088.0712
Categi 1 Balance Requirement -9,649.0356
Category 3 Balance Limitation _ -4,824.5178
Disallowed Category 3 RECs 4,824.5178
'The Category 1 RECs applied to the target will be flagged it the number is less than the Category 1 Balance Requirement fine 43).
"The Category 3 RECs applied to the target will be flagged if the number is more than the Category 3 Balance Limitation(line 44).
"'The sum of the total RECs applied to the Target will be flagged if it exceeds the Procurement Target(line 20)
Applied to Current Accumulated in Current Remaining
Additional Procurement Starting Balance Compliance Period Compliance Period Balance
_Total Excess Procurement 0.0000 0.0000 (141,088.0712) (141,088.0712)
Excess Category 0 RECs .........._.__00000_._....................................._0.0000 .........._0:0000............-._..................._0:0000.._._.
Excess Category 1 RECs 0.0000 0;0000 0.0000 ,.._,0,0000
Excess Pre-June 1,2010 Cat.1 RECs 0.0000 0.0000 0.0000 0.0000
Excess Category 2 RECs 0.0000 0.0000 elms .,_ 0.0000
Excess Pre-June 1,2010 Cat.2 RECs. 0.0000 0.0000 0.0000 00000
Total Historic Carryover° 43,547.0000 19,298.0712 rola 24,248.9288
Compliance Period 1
RPS Procurement Enforcement(MWh) 2011 I 2012 I 2013
Deficit of RECs Necessary to Meet Target 0.0000 I
Deficit of RECs Necessary to Meet PCC 1 0.0000
Portfolio Balance Requirement lI
Compliance Period 1
.V010Excess Procurement Calculation(MWh)' r 3puonn wrnpnan�r yeslNo
Total RECS retired,less disallowed PCC 3 136,263.5534 Cost Limitations
Procurement Target 141,088.0712 Delay of Timely Compliance
Potential Excess 0.0000 Reduction of PCC 1
Short-Term RECs' _
Excess RECs Eligible (141,088.0712)
Excess Category 0 RECs ,.
Excess Category 1 RECs „-_,_ ._ ,__
Excess Pre-June 1,2010 Category 1 REC5 _____ .... ........
Excess Category 2 RECs
Excess Pre-June 1,2010 Category 2 RECs
CEC-RPS-POU Apu MIS
094