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Energy Efficiency and Integrated Resource Planning at SMUD APPA Action Plan – EE and Planning May 8, 2008 Jim Tracy, CFO Jim Parks, EECR&D Manager Sacramento Municipal Utility District
2 LEEDERS Initiative The LEEDERS initiative was started at the request of SMUD ’ s General Manager (October 2005). Direction was to enhance SMUD ’ s leadership in the areas of energy efficiency and environmental stewardship. LEEDERS Core Mission To propose a new long-term strategy for the aggressive integration of demand-side opportunities in district resource investment and operations.
3 Goals of LEEDERS 1. SMUD demonstrates energy and environmental leadership by example. 2. The highest levels of cost-effective energy efficiency are achieved along the entire fuel cycle. 3. Demand side measures are compared on a comparable basis to supply side options in the resource planning process. 4. Price signals are set to optimize efficiency and resource utilization. 5. Enhance energy efficiency offerings. 6. Engage the community.
4 Goal 3 Resource planning process is more transparent and results in balanced portfolio decisions where demand side measures are compared on a comparable basis to supply side options. Relevant Outcomes Reliability Price Stability/Competitiveness Environmental Stewardship
5 Goal 3 Suggested Actions Modify internal process to make it more transparent and involve internal stakeholders. Propose that Key Value SD-9(e) be modified to more closely reflect wording of SB 1037 that states: Each local publicly owned electric utility, in procuring energy, shall first acquire all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible.
6 Goal 3 Suggested Actions Include in resource comparisons/decisions an explicit proxy for the financial risk of potential future regulation (control) on mercury and greenhouse gas emissions.
7 Relevant Legislation SB1037 – Loading order AB2021 – Establishes minimum EE goals SB1 – Sets aggressive PV goals AB32 – 1990 level GHG by 2020 Governor’s Executive Order – 80% GHG reduction by 2050
8 What Has Happened Formed an IRP Steering Committee and working group with representation across the District Revised District Strategic Directive 9 to read: First acquire cost-effective, reliable and feasible energy efficiency and demand reduction resources. Set a goal of reducing energy consumption by 15% by 2018. Evaluation of supply and demand side resources and integrated portfolios considers a range of independent forecasts for GHG mitigation costs $10 to $30 per ton in shorter-term $30 to $90 per ton in the longer-term
9 What Has Happened Major expansion of energy efficiency goals Issued RFP for installation of advanced metering infrastructure SMUD Board is reviewing options for time- dependant and critical peak rates Evaluating demand response programs to reduce peak load Major expansion of customer outreach efforts
10 SMUD’s Energy Efficiency Goals SMUD’s board of directors adopted aggressive energy efficiency goals – 15% over ten years The highest utility energy efficiency goals in California
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