HomeMy WebLinkAbout11-08•
RESOLUTION NO. 11-08
A RESOLUTION of the City Council of the City of Port Angeles,
Washington, approving the Electric Utility 2008 Resource Plan.
WHEREAS, the City strives to ensure that its citizens have reliable access to electricity
adequate to meet their projected loads; and
WHEREAS, the City of Port Angeles must submit an Electric Utility Resource Plan to
the Washington Department of Community, Trade and Economic Development by September
1, 2008 as required by RCW 19.280.030; and
WHEREAS, the 2008 Resource Plan is consistent with the City's existing energy
conservation programs operated in cooperation with the Bonneville Power Administration; and
WHEREAS, the City Council of the City of Port Angeles, Washington, being the
governing body of the said consumer-owned electric utility did, after public notice, hold public
hearings on the 5`h of August 2008 and the 19`h of August 2008 to provide the opportunity for
consumers and the public to participate and comment on the 2008 Resource Plan.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port
Angeles that the Electric Utility 2008 Resource Plan, attached hereto as Exhibit "A", be and it
hereby is approved; and
BE IT FURTHER RESOLVED that the Electric Utility 2008 Resource Plan, together
with this Resolution, shall be electronically filed through the Internet with the Department of
n
LJ
Community, Trade and Economic Development of the State of Washington no later than the 1 S`
of September 2008 and also be published and made available to the public through the City of
Port Angeles website.
PASSED by the City Council of the City of Port Angeles at a regular meeting of said
Council held on the 19th day of August, 2008.
Mayor
•
ATTEST:
Becky J. U n, i Clerk
APPROVED AS TO FORM:
r
William E. Bloor, City Attorney
G:\Legal_Backup\ORDINANCES&RESOLUTIONS\RESOLUTIONS.2008\I2.Electric Utility Resource PIan.073108.wpd
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ELECTRIC UTILITY
coos
RESOURCE PLAN
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AUGUST 19, 2008
PREPARED BY PHILIP D. LUSK
POWER RESOURCES MANAGER
PUBLIC WORKS & UTILITIES DEPARTMENT
CITY OF PORT ANGELES
321 EAST FIFTH STREET
PORT ANGELES, WA 98362-0217
City of Port Angeles Electric Utility 2008 Resource Plan
TABLE OF CONTENTS
1 SUMMARY
2 BACKGROUND
3 BASE YEAR
3.1 LOADS
3.2 RESOURCES
4 FIVE-YEAR FORECAST
4.1 LOADS
4.2 RESOURCES
$ TEN-YEAR FORECAST
5.1 LOADS
5.2 RESOURCES
6 FUTURE CONSIDERATIONS
6.1 AND WHAT OF THE FUTURE?
6.1.1 INCREASED CONSERVATION SCENARIO
6.1.2 AGGRESSIVE CONSERVATION AND NEW RESOURCES SCENARIO
7 CONCLUSION
$ APPENDIX A: FORECASTED LOADS
9 APPENDIX B: PUBLIC NOTICE AND HEARINGS
IO APPENDIX C: GLOSSARY
1 SUMMARY
1
.2
4
5
6
7
7
9
12
12
13
15
19
20
21
22
23
28
29
The City's Electric Utility is required by the State of Washington under RCW 19.280.030
to develop an Electric Utility Resource Plan (Plan) that must be submitted to the
Washington State Department of Community, Trade and Economic Development
(CTED) by September 1, 2008.
The reason for this is to assure that future resources are adequate to meet projected
loads especially as the Bonneville Power Administration (BPA) changes the way it
charges the City for energy.
City of Port Angeles Electric Utility 2008 Resource Plan
This Plan proposes that the City will continue to purchase power from the BPA and that
it will also seize the opportunity to increase the level of energy efficiency and deploy
new resources that will further develop and diversify our electricity portfolio'.
The City's energy future is essential to our community's economic health. The City has
long benefited from having access to low-cost electricity from the federally based
system. However, as the world and the energy industry change, the City faces a
potentially serious threat to its economy in the form of rising electricity costs.
For Port Angeles, 67% of the money spent on retail power immediately leaves the local
economy. With minimal downside risk, developing an Electric Utility Resource Plan
that will increase efficiency and develop renewable resources will help protect the
City's economy from rising energy costs, keep more dollars circulating in the local
economy and in turn, help to increase the number of jobs that stay in our community.
2 BACKGROUND
The City of Port Angeles Electric Utility currently serves approximately 10,600
residential, commercial and industrial power customers. The Electric Utility has ten
broad customer classes that include Industrial Transmission, Residential, Primary
Metered, General Service, General Service Demand, General Service Demand Primary
Metered, Municipal Water Pumping, Non-Profit/Tax Deductible, Yard/Area Lights, and
Street Lights.
While this Plan is not a legally binding document, it provides a description of current
power loads and resources, as well as the forecasted power loads and resources for 2013
and 2018 time periods as required by RCW 19.280.030. The Plan is available to the
public from the City's website and will next be updated in 2010. It is anticipated that
the 2010 Plan update will provide more substantive information regarding the City's
future power sales contract with the BPA and the resulting rate impacts.
The Plan s objective is to create and implement a proactive agenda to help ensure that
sufficient electrical resources are available to meet projected future loads. Achieving
this objective will require consideration of all feasible options and developing acost-
effective plan that is adaptable to ever-changing circumstances.
n.b., a glossary is provided in Appendix C for individuals not familiar with the terminology of an electric utility.
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City of Port Angeles Electric Utility 2008 Resource Plan
The City is exempt from meeting the Washington State mandatory conservation and
renewable portfolio standards required for larger utilities. Regardless, the 2008 Plan still
places special emphasis on energy efficiency and possible roll-out of new distributed or
renewable energy power supplies located within the City's service territory.
The State requires that in its projection of resources estimated to serve future loads, the
City's Plan must delineate what specific supply resources were chosen. Moreover, the
City must provide an explanation on why such a decision was made if those chosen
supply resources were not conservation, efficiency or renewable energy technologies.
Fulfilling this requirement should not necessarily be viewed as a burden. Developing
this portfolio of resources in our neighborhood can help protect the economy from
impacts of rising energy costs, as well as keep more dollars circulating in the local
economy to help spur economic development.
'The Plan is based on typical customer growth rates, the trends in rate class energy use,
and the City's current and anticipated future mix of resources2. Figure 1 shows
electricity consumption by rate class from January 2001 through June 2008. The chart
demonstrates the seasonality of the loads and the City's annual winter consumption
peak. As it constitutes about 60% of the City's total load, Figure 1 also demonstrates the
scale of the Industrial Transmission load relative to the other rate class loads.
z As requested by the CTED, the following reporting units are Annual Energy in Average Megawatts (aMW) that are
calculated as kWh/1000 kWh per MWh/8760 hours per year.
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City of Port Angeles Electric Utility 2008 Resource Plan
FIGURE 1: January 2001 -June 2008 Loads
by Rate Class for City of Port Angeles
ao,ooo
70,000
so,ooo
50,000
L
C
O
40,000
30,000
20,000
10,000
®Primary ^Residential ^General Service ®GS Demand ^GS Demand Primary
Muni Water Pumping ~Nonprofit/Tax Deductible ®Street Lights ^Yard/Area Lights Dlndustrial Transmission
3 BASE YEAR
The base year started on July 1, 2007 and concluded on June 30, 2008. While the
relatively harsh recent winter might skew the electricity consumption data upwards for
winter-sensitive rates classes by a percentage point or so compared to using the 2007
calendar year, this data represents the most current actual information. The data also
reflects the impacts of the load reduction of a key customer from the Primary Rate Class
in November 2007, a customer representing about 1.00%-1.25% of the City's previous
aMW load.
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0
Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08
City of Port Angeles Electric Utility 2008 Resource Plan
3.1 LOADS
As shown in Figure 2, the City has one Industrial Transmission customer that comprises
almost 60% of the total load for the Base Year, roughly 48.38-aMW. As this power is
metered from the BPA Port Angeles sub-station, distribution system line losses to the
customer are already included.
Distribution Losses
1.20%
Street Light:
0.19%
Yard/Area Light:
0.03%
Non-ProfiUTax Deductible
0.44%
Municipal Water Pumping
0.35%
GS Demand Primary
1.18%
GS Deman
8.12%
General Ser
5.35%
Residential
20.02%
Transmission
1.71
The other nine rate classes are served by the City's distribution system, and the balance
of their loads totaled 32.99-aMW during the Base Year. As calculated from historical
records, distribution system losses are roughly 3% of the total distribution system load
or 0.98-aMw during the Base Yeax3. The complete load including losses provided by the
s n.U., The City's distribution system losses are less than standard averages for the electric utility industry that
normally run from 3% to 5%. In some systems, these losses may increase to the 5% to 7% range or higher.
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FIGURE 2: Base Year Loads
for the City of Port Angeles
City of Porf Angeles Electric Utility 2008 Resource Plan
City to its customers during the Base Year totaled 82.35-aMW. This information is
presented in greater detail in Table 1.
TABLE 1: Base Year Loads for the City of Port Angeles
SERVICE CLASS Annual aMW
General Service 4.40
General Service Demand 6.69
GSD Primary Metered 0.97
Municipal Water Pumping 0.28
Non-Profit/Tax Deductible 0.36
Primary 3.63
Residential 16.49
Street Lighting 0.15
Yard Lighting 0.02
Distribution System Losses @ 3% 0.98
Distribution System Subtotal 33.97
Industrial Transmission 48.38
Total Loads 82.35
3.2 RESOURCES
The City's Electric Utility operates a small generation facility known as the Morse Creek
Hydroelectric Project. The project was built in 1985-1987 as Federal Energy Regulatory
Commission (FERC) project #6461, and it became operational in 1987 with a maximum
rated capacity almost 0.50-MW. Because of streamflow and other issues, the project
operated during the Base Year with an average capacity factor of around 45%,
providing around 0.22-aMW. The City also has aload-wheeling agreement with the
Clallam County Public Utility District (PUD) to serve about 35 City electric customers,
which provided 0.09-aMW during the Base Year.
The City is currently a BPA full requirements customer; an electric utility that relies on
the BPA for all power to supply its total load requirement other than that served by
non-dispatchable generating resources totaling no more than six megawatts or
renewable resources4. The Base Year electricity resources supplied by the BPA were
a The definition of a "full requirements customer' is included in 19.280 RCW.
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City of Porf Angeles Electric Utility 2008 Resource Plan
Priority Firm (PF) purchases that totaled 82.04-aMW. Thus, as shown in Table 2, the
sum of power resources matched the City's total load of 82.35-aMW.
TABLE 2: Base Year Resources for the City of Port Angeles
RESOURCE Annual aMW
Morse Creek Hydroelectric Project 0.22
SPA Priority Firm Purchases 82.04
Clallam County PUD Wheeling 0.09
Total Resources 82.35
4 FIVE-YEAR FORECAST
The five-year forecast targeted the 2013 calendar year. All loads are estimated before
reductions from conservation or demand response programs are considered. Both of
these are treated as a power resource that is eligible to meet loads. The forecast is based
on typical customer growth rates and average customer use patterns that the City has
experienced. For service classes such as residential or light commercial buildings, the
forecast also accounts for their seasonal load patterns. The complete set of charts
showing the historic actual and forecasted energy consumption though 2018 for the ten
rate classes served by the City is provided in the Appendix.
4.1 LOADS
As shown in Figure 3, the Industrial Transmission customer is projected to have a load
similar to the Base Year, which is estimated to be 48.43-aMW including losses.
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City of Port Angeles Electric Utility 2008 Resource Plan
Distribution Losses
1.06%
Street Light:
0.19%
YardlArea Light:
0.02%
Non-Profit/Tax Deductible
0.41
Municipal Water Pumping
0.35%
GS Demand Primary
1.24% -
GS Deman:
8.52%
General Ser
5.31
Residential
19.92%
Transmission
3.07%
The other nine rate classes are a part of the overall City electrical distribution system,
and the balance of their loads totaled 32.63-aMW for the five-year forecast period.
Distribution system losses are estimated to be 3% of the distribution system load, or
0.97-aMw. The load provided by the City to its customers for the five-year forecast
period totaled of 82.03-aMW. Table 3 provides this information in greater detail.
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FIGURE 3: 2013 Loads Forecast
for the City of Port Angeles
City of Porf Angeles Electric Utility 2008 Resource Plan
TABLE 3: Five-Year Forecasted Loads for the City of Port Angeles
SERVICE CLASS Annual aMW
General Service 4.35
General Service Demand 6.98
GSD Primary Metered 1.01
Municipal Water Pumping 0.28
Non-Profit/Tax Deductible 0.33
Primary 3.19
Residential 16.33
Street Lighting 0.15
Yard Lighting 0.01
Distribution System Losses @ 3% 0.97
Distribution System Subtotal 33.60
Industrial Transmission 48.43
Total Loads 82.03
Note that the forecasted 2013 system load is slightly less than the Base Year. While
there are several factors at play, three key reasons explain this slight reduction. First,
the projected load growth simply replaced the recent load reduction of a key customer
that represented about 1.00%-1.25% of the City's previous aMW load. Second is that
while they are not an expressed factor of the Plan at this point, there are residual
impacts resulting from the City's current conservation and efficiency programs. This is
especially evident in the Residential rate class where the number of customers being
served was estimated to increase by 1.8% while the average energy requirements per
home was estimated to decrease by 4.1%. And third, the unseasonably colder winter
that occurred during the Base Year.
4.2 RESOURCES
The Northwest Power and Conservation Council (NWPCC) developed a conservation
target calculators that maybe used to determine electric utility conservation targets.
The calculator is designed to determine a specific "Utility Share of Regional Target" that
can be attributed to any utility located within the region. While the actual conservation
5 http://www.nwcouncil.org/energy/UtilityTarget.htm. This calculator (updated 7/17/08) "may be used to determine
public utility conservation targets under draft rules implementing I-937 in Washington State."
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City of Port Angeles Elecbic Utility 2008 Resource Plan
savings may vary from the amount projected by the calculator, this tool estimated that
the 2013 conservation savings attributable to the City's efforts should be 0.73-aMW.
It is projected that the City Electric Utility will continue to operate the Morse Creek
Hydroelectric Project. The City has filed an application for a license amendment with
the FERC that stipulates minimum flows in all months of the year for the protection of
Chinook salmon and bull trout, both listed as threatened species under the Endangered
Species Act. The current FERC license stipulates minimum stream flows for only five
months of the year. The proposed amendment would maintain higher stream flows in
Morse Creek during all months of the year in order to provide a greater assurance that
flow-related habitat is protected for the listed species as well as other salmonids that
inhabit Morse Creek. While it may be possible to operate this facility during 2013 with
an increased capacity factor, this Plan assumes it will operate on a schedule similar to
the Base Year and provide 0.22-aMW. The City also expects to continue to participate in
the existing load-wheeling agreement with the Clallam County PUD, which is
estimated to provide 0.08-aMW during 2013.
As previously mentioned, the City currently is a BPA "full requirements customer."
This means that it relies on the BPA for all power needed to supply its total load
requirement. While many elements of BPA's proposed Tier 2 rate have yet to be
revealed by that agency, one critical factor is to develop an estimate of the "High Water
Mark" (HWM) that would be eligible for the BPA's continued Tier 1 load following rate.
This is key, as the difference between the HWM and any residual load requirement will
be the power block subject to the new Tier 2 rate schedule that has yet to be determined
by the BPA6.
While there are certainly more complicated methods that could be employed to estimate
the City's HWM, the simplest proxy is to use a base of 95% of the forecasted 2011 load.
In this case, the 2011 forecast estimated that the City's total system load would be 81.70-
aMW. Therefore, the HWM was estimated to be 77.61-aMW (0.95 * 81.70).
6 Why this issue is important is that any new load growth experienced by the federal power system will require
additional sources of supply that will be more expensive to build and operate than the current existing capacity. The
BPA proposes to use the Tier 2 rate schedule to charge customers the total incremental cost of these costly new power
resources.
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City of Port Angeles Electric Utility 2008 Resource Plan
The sum of the attributable conservation resource, the Morse Creek Hydroelectric
Project, the wheeled power from the Clallam County PUD, and the HWM BPA Tier 1
came a sum of 78.64-aMW. As the estimated total load came to 82.35-aMW, the amount
of Tier 2 (or equivalent) power resources needed to match the City's total load was
calculated to be 3.39-aMW. The forecast of resources required for the City is provided
in Table 4.
TABLE 4: Five-Year Forecasted Resources for the City of Port Angeles
RESOURCE Annual aMW
Conservation/Efficiency 0.73
Morse Creek Hydroelectric Project 0.22
BPA Tier 1 Purchases 77.61
BPA Tier 2 Purchases 3.39
Clallam County PUD Wheeling 0.08
Total Resources 82.03
While not a relatively large number, the projected Tier 2 "Gap" represents an average of
about 4.1% of the forecasted 20131oad and could total some 29,700 MWh if no measures
are taken to reduce it. The financial implications of this gap and options that could be
used to reduce it will be addressed in a following section. While the City is well
positioned to have options other than using one of the three listed BPA Tier 2 products,
the preliminary staff recommendation is that the City would remaining afull-service
BPA customer'.
Given the current uncertainty, this option seems to be the best available to mitigate
potential power supply costs and risks. Staff tentatively recommends that the City
consider using the BPA Tier 2 Short-Term Rate offering to fill the "Gap" as it requires
the least time commitment compared to the other Tier 2 product offerings. However,
"due to the short-term nature of the of potential customer commitments, BPA does not intend to
permanently assign the costs of longer-term resources to this cost pool. It may be the case that
some longer-term resource costs will be allocated temporarily to this cost pool, until those costs
are allocated to a longer purchase period rate pool." This statement, taken from the CTED
'Under the proposed terms of the new BPA power sales agreement, this category will be renamed a "load-following"
customer.
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City of Port Angeles Elechic Ufilify 2008 Resource Plan
"Short Form' instructions used to prepare this Plan, suggests that the trade-off for not
executing along-term Tier 2 power purchase agreement with the BPA presents the
potential for some greater short-term price volatility.
5 TEN-YEAR FORECAST
The ten-year forecast targeted the 2018 calendar year. As with the previous forecast, all
loads were projected before the estimated reductions from conservation or demand
response programs are considered. The forecast is based on the typical customer
growth rates and the average customer use trends the City has experienced. Once
again, for certain service classes the forecast accounted for their seasonal load patterns.
5.1 LOADS
Figure 4 shows the existing Industrial Transmission customer is projected to have a load
similar to the Base Year, which is estimated to be 48.43-aMW including losses.
FIGURE 4: 2018 Loads Forecast
Distribution Losses for the City of Port Angeles
1.01
Street Lights
0.19%
Yard/Area Lights ~~
0.02% ~ Industrial Transmission
Non-Profit/Tax Deductible ~\ 58.41%
0.40%
Municipal Water Pumping
0.35% ~
~
GS Demand Primary. ~,
-~ ~
1.22% ~
\
`\~.. 1
\`~~\
GS Demand ~-~
9.26% A "+ "~" +> ,~
~
General Service
~
\
5.47% ~
i
P \
r
mary
3.94% ~ ~ ~~
`_
Residential
19.73%
The other nine rate classes are a part of the overall City electric distribution system, and
the balance of their loads totaled 33.61-aMW for the ten-year forecast. Distribution
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City of Port Angeles Elecfric Utility 2008 Resource Plon
system losses are estimated to be 3% of the distribution system load, or 1.00-aMw. The
total load provided by the City to its customers for the ten-year forecast came to 83.04-
aMW. This information is provided in greater detail in Table 5.
TABLE 5: Ten-Year Forecasted Loads for the City of Port Angeles
SERVICE CLASS Annual aMW
General Service 4.53
General Service Demand 7.67
GSD Primary Metered 1.01
Municipal Water Pumping 0.28
Non-Profit/Tax Deductible 0.33
Primary 3.27
Residential 16.36
Street Lighting 0.15
Yard Lighting 0.01
Distribution System Losses @ 3% 1.00
Distribution System Subtotal 34.61
Industrial Transmission 48.43
Total Loads 83.04
Note that the forecasted system load for 2018 is only slightly higher than the Base Year.
One factor is that while they are not an express factor of the Plan at this point, there are
continuing residual impacts resulting from the City's current conservation and
efficiency programs. This is still especially evident in the residential rate class where
the number of customers being served was estimated to increase by about 7.5% from
the Base Year and the average energy requirements per home was estimated to decrease
by 7.4%.
5.2 RESOURCES
It is projected that the City will continue to operate the Morse Creek Hydroelectric
Project. Similar to the five-year forecast, this project is estimated to operate in 2018 with
an average capacity factor of around 45% and provide about 0.22-aMW. The City also
expects to continue to participate in the existing wheeling agreement with the Clallam
County PUD, which is estimated to provide around 0.08-aMW during 2018. Using the
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City of Port Angeles Electric Utility 2008 Resource Plan
NWPCC calculator, the estimated 2018 conservation and efficiency savings attributable
to the City's efforts would be 0.78-aMWB.
The sum of the Morse Creek facility, the wheeled power from the Clallam County PUD,
the attributable conservation resource, and the 77.61-aMW HWM Tier 1 power
provided by the BPA came to a sum of 78.69-aMW. As the estimated load came to a
total of 83.04-aMW, the amount of Tier 2 (or equivalent) power resources needed to
match the City's total load was calculated to be 4.35-aMW. The forecast of resources
required for the City is provided in Table 6.
TABLE 6: Ten-Year Forecasted Resources for the City of Port Angeles
Resources Annual aMW
Conservation/Efficiency 0.78
Morse Creek Hydroelectric Project 0.22
BPA Tier 1 Purchases 77.61
BPA Tier 2 Purchases 4.35
Clallam County PUD Wheeling 0.08
Total Resources 83.04
Once again, while the projected Tier 2 "Gap" does not look like a relatively large
number, it represents about 5.2% of the forecasted 20181oad and could equal around
38,100 MWh if no other measures are taken to reduce it. The financial implications of
this gap and options that could reduce it will be discussed in the next section.
Once again, while the City is well positioned with options other than using one of the
three listed BPA Tier 2 products, the tentative staff recommendation is that the City
remain a BPA full-requirements customer using the BPA Tier 2 Short-Term Rate.
Of course, trend is not destiny and there are many situations that could occur that
would render the 2013 or 2018 projections meaningless. For example, there is
significant discussion about converting a majority of the country's vehicle fleet from
gasoline to plug-in hybrid cars using electricity. While other consumer items such as a
s n.b., While 2018 is not a component of the Fifth Plan prepared by the NWPCC, a linear regression equation was used
to extrapolate the current data for the 2014-2018 period. The equation was seemingly a perfect fit, having a Rz statistic
equal to 1.
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City of Port Angeles Electric Utility 2008 Resource Plan
plasma television consumes about four times the electricity as recharging aplug-in
hybrid, what would be the load impact if thousands of these new vehicles came on line
simultaneously in the City service territory? Other local load impacts could be related
to the City's contemplated annexation plans and who will ultimately serve those loads.
The addition of new loads could possibly result from the Port's proposed new
industrial park located south of the airport, or the loss of existing loads could
potentially occur during the next ten years.
6 FUTURE CONSIDERATIONS
Despite some possible load increases for some of the individual rate classes, only a
0.84% cumulative increase in total load is projected for the City over the 10-year
planning horizon. This is projected to increase loads from the current Base Year of
82.35-aMW to an estimated 83.04-aMW in 2018.
FIGURE 5: January 2001 -December 2018 Loads
by Rate Class for the City of Port Angeles
so,ooo
~o,ooo
60,000
50,000
c
0
~ 40,000
s
30,000
20,000
10,000
0 - ~ ^ --~---~ ~
Jan-01Jan-02 Jan-03 Jan-04 Jan-OS Jan-06 Jan-07 Jan-OS Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
®Primary ^ Residential ^ General Service GS Demand ~ GS Demand Primary
Muni Water Pumping Nonprofit/Tax Deductible Street Lights ^Yard Lights ^Industrial Transmission
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City of Port Angeles Electric Utility 2008 Resource Plan
Figure 5 shows electricity consumption by rate class for the January 2001 projected
through December 2018. As with the previous time series chart, it demonstrates load
seasonality and the City's annual winter consumption peak. It also continues to
demonstrate that the Industrial Transmission load will continue to be around 60% of the
City's total electricity load.
This Plan proposes that the City will continue to remain primarily reliant on the BPA as
afull-requirements customer. However, as will be discussed, the City also has the
opportunity to further increase the deployment of its own efficiency and renewable
resources, and thus further diversify its resource portfolio.
This opportunity should be seriously considered, as the Tier 2 "Gap" represents about
4.1% of the projected 20131oad and is projected to come to some 29,700 MWh if no other
measures than what is currently being done are taken to reduce it. By 2018, the "Gap"
could represent about 5.2% of the projected load and could equal almost 38,100 MWh.
While the BPA has not determined rates for its Tier 1 or Tier 2 products, the financial
implications of the Tier 2 "Gap" and opportunities that could be used to reduce it must
be addressed even if only a general trend is revealed instead of a precise answer.
For example, including local distribution system line losses, the City's wholesale power
cost averaged slightly less than 3.0 /kWh during the Base Year. Although the cost of
Tier 2 power could be much higher, assume that the "Gap" power is provided to the
City at a wholesale cost of 9.0 /kWh.
As illustrated in Table 7, the result would be about a 12% increase in City wholesale
power costs in 2013, and would increase to 16% in 2018. The cost increase in 2013 is
estimated to be slightly more than $2.6 million with a blended wholesale rate of 3.35
¢/kWh, and it is estimated to increase to almost $3.4 million in 2018 with a blended
wholesale rate of 3.45 /kWh.
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City of Port Angeles Electric Utility 2008 Resource Plan
TABLE 7: POSSIBLE TIER 2 "GAP" IMPACTS ON THE CITY OF PORT ANGELES
Period MWh/Year Wholesale Power Wholesale Power
Cost Increase (%) Cost Increase ($)
2013 29,696 12.4% 2,670,000
2018 38,106 16.0% 3,430,000
Given this potential exposure, it would seem prudent to reduce the projected Tier 2
"Gap" starting with two priorities that incorporate alowest-cost/lowest-risk analytical
approach to meeting future loads.
The first priority should be to seek all cost-effective conservation opportunities as the
favored resource for meeting anticipated future loads, and look for options to accelerate
those energy savings beyond the current estimates. All other things being held equal,
rising wholesale power costs will enlarge the pool of cost-effective alternative resources.
Beyond conservation, the City should also pursue distribution system peak-load
management, renewable energy and cogeneration resources, with a strong preference
for operations that could be developed within the City limits.
This approach would be a logical extension of the City's existing conservation
initiatives, where the programs range from conservation tips and incentives for
residences to incentives for custom energy conservation projects for commercial and
industrial customers9.
The City Electric Utility has also been active in the pursuit of non-traditional
conservation opportunities, one of which included participating in the Olympic
Peninsula Demonstration component of the Pacific Northwest GridWise Testbed
Demonstration Project'0.
9 However, the incentives now offered by the City for its existing conservation program are scheduled to end in
December 2009 when the BPA terminates its funding for the various energy efficiency activities it provides to utilities
within its service territory. A successor program is being planned by the BPA, but few details are currently available.
~~ http://gridwise.pnl.gov/does/op_project_final_report_pnn117167.pdf
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City of Port Angeles Elechic Utility 2008 Resource Plan
The effort was a field demonstration where residential electric water heaters and
thermostats, commercial building space conditioning, municipal water pump loads and
several distributed generators were coordinated to manage electrical loads by
communicating electric price signals in real-time. While a somewhat futuristic
experiment, one practical result was this resource was well documented to produce
significant power savings when market prices were presented to consumers and they
could respond accordingly.
As a component of this modernization of the electrical grid, Electric Utility Staff will be
preparing a report for Council in late-2008 on the consideration of a smart grid and a
request to Council to set a public hearing with a determination in late-2009 to comply
with certain sections of the Energy Independence and Security Act of 2007.
Another opportunity the Electric Utility is investigating is known throughout the region
as the Distribution Efficiency Initiative. The emphasis is on cost-effective design,
construction and operational decisions that optimize the regulation of local distribution
service voltage, also known as Conservation Voltage Regulation or CVR. A total of 13
Northwest utilities participated in the initial phase of the initiative, and the results
indicated "operating a utility distribution system in the lower half of the acceptable voltage
range (120-114 volts) saves energy, reduces demand, and reduces reactive power requirements
without negatively impacting the customer. The energy savings results are within the expected
values of 1%-3% total energy reduction, 2%-4% reduction in kW demand, and a 4%-10%
reduction in kvar demand". "
Staff is currently evaluating the potential to implement a CVR program across the City
electrical distribution system. While some of the initial data suggests there maybe a
number of technical limiting factors that could prove challenging to overcome, it is
anticipated that a CVR project maybe proposed in 2009 as part of the City's 2009-2015
Capital Facilities Plan.
Also in early-2009, a Conservation Potential Assessment (CPA) will be completed that
will help better determine where the most cost-effective resources lie and where to
target future program efforts to maximize returns. This study will help to determine
how much conservation potential is available within the City's service territory, and
11 http://rwbeck.com/neea/
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City of Port Angeles Electric Utility 2008 Resource Plan
help determine the value of conservation to the electric utility as well as other items
such as the impact of conservation efforts on the Electric Utility's load factor. One key
deliverable with the CPA will be to develop a supply curve of conserved energy that
identifies those measures having levelized costs that are less than the projected cost for
Tier 2 power.
On the resource side, the City's supply options were increased by its recent
membership with Energy Northwest. Also, Tier-2 resource strategic planning will
begin in Spring-2009.
The Electric Utility will also continue to coordinate conservation activities with the
Clallam County PUD. In the past, conservation programs between these two entities
have cooperated on a number of initiatives. Future discussions could include jointly
reviewing an exploration of the BPA's product choices, as well the possibility of
obtaining some power from renewable energy resources. After conservation, small
hydro, biomass/landfill gas, tidal energy, geothermal, cogeneration and wind could
become energy resources of high priority.
6.1 AND WHAT OF THE FUTURE?
Energy efficiency is the quickest, cheapest, cleanest way to extend our energy resources.
And, despite three decades of focus, residential and commercial buildings still hold
great potential for increased energy efficiency. For example, residential customers may
be surprised to find that they may be able to reduce their energy consumption by 20%-
40% by sealing leaks around doors and windows, using more efficient appliances and
windows, and by changing conventional light bulbs to compact fluorescents. As
another example, a large retailer that self-reportedly is the biggest private user of
electricity in the world, has proven technologies that will allow new stores to be 25%-
30% more energy efficient. As a last example, unlocking the now hidden potential of
cogeneration at existing industrial operations across the nation is estimated to have the
potential of around 501arge power plants with roughly the same baseload capability as
large nuclear or coal power plants.
While it is difficult today to prescribe the specific measures that are more cost-effective
than purchasing Tier 2 power from the BPA, the essence of evaluating any demand-side
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City of Port Angeles Electric Utility 2008 Resource Plon
program is to develop a "supply curve"12 of the options, so that rational decisions may
be made when choosing between competing alternatives'3. Such a schedule would
allow the City to rank choices in terms of their cost-effectiveness, since we do not wish
to use those options that would increase the relative spending of our energy dollar.
The discussion that follows is only an initial attempt to define a possible direction for
the City's Electric Utility and evaluate the magnitude of the impacts74. The outcomes
are plausible and are not mutually exclusive. However, without a clear signal from
customers and policymakers that this direction should be taken, program continuity
cannot be assured and then the results become less certain.
G.1.1 INCREASED CONSERVATION SCENARIO
As the first possible outcome, the "Increased Conservation' scenario represents the City
undertaking two activities beyond the base forecast: Expand its existing conservation
program and initiate a conservation voltage reduction (CVR) program.
For discussion purposes, an increased conservation effort is assumed to have a "stretch"
increase of 5% over the basic 2013 forecast and a 10% "stretch" increase in 2018. The
CVR program was assumed to offset 1% of the forecasted load in both 2013 and 2018.
What are the impacts of "Increased Conservation'?
Compared to the base forecast, the Tier 2 "Gap" in kWh was reduced by almost 25% in
2013 and by 20% in 2018. The financial savings that could potentially result from these
two actions was estimated to total around $635,000/year in 2013 and slightly more than
$675,000/year in 2018. The wholesale power cost impact was projected to be a 9.5%
increase in 2013 compared to the base forecast projection of 12.4%. Irt 2018, the
wholesale power cost impact was projected to be a 12.7% increase compared to the base
forecast projection of 16.0%.
12 The basic question regards the arcane economic concept of using the marginal vs. incremental cost when making
the investment, words that are sometimes used interchangeably. However, when discussing electric power plants,
the incremental cost is the delivered cost of new facilities to the end consumer. The marginal cost only relates to the
utility's production cost.
13 Meier, A; Wright, J; and Rosenfeld A. 1983. Subulu~n~ Energy Tu hrough Greater Efficiency Berkeley and Los Angeles:
University of California Press.
14 As part of the 2010 update to this Plan, a more extensive analysis will be completed to support the decision-making
process.
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City of Port Angeles Electric Utility 2008 Resource Plan
Clearly, "Increased Conservation" can have an impact compared to the base forecast
projection that assumed no other actions were taken than continuing the existing
conservation program efforts.
6.1.2 AGGRESSIVE CONSERVATION AND NEW RESOURCES SCENARIO
As the second possible outcome, the "Aggressive Conservation and New Resources"
scenario represents a situation where the City undertakes activities in four areas:
Expand its existing conservation program, initiate a systemic CVR program, develop
co-generation at an industrial facility, and also develop a new renewable energy project.
A more aggressive conservation effort is assumed to provide a "stretch" increase of 10%
over the basic 2013 forecast and a 20% "stretch" increase in 2018. The CVR program
was assumed to offset 1% of the forecasted 20131oad and a 2.5% offset of the forecasted
20181oad. Co-generation, decentralized power generators that produce both electricity
and heat water, was assumed at an industrial customer with a power generation rate
averaging 1.0-aMW. The renewable project was assumed to be a landfill gas project
located at the City's closed landfill, which was assumed to have a power output
averaging 0.25-aMW.
What are the impacts of "Aggressive Conservation and New Resources"?
Compared to the base forecast, the Tier 2 "Gap" in kWh was reduced by 62% in 2013
and by 79% in 2018. The financial savings that could potentially result from these four
actions was estimated to total more than $1.6 million/year in 2013 and more than $2.7
million/year in 2018. The resulting wholesale power cost impact was projected to be a
4.8% increase in 2013 compared to the base forecast projection of 12.4%. In 2018, the
wholesale power cost increase was projected to be 3.3% compared to the base forecast
projection of 16.0%.
"Aggressive Conservation and New Resources" can have a very significant impact
compared to the base forecast projection that assumed no other actions were taken than
continuing the existing conservation program efforts. Of course, both of these scenarios
would result in the City incurring costs. However, under the right circumstances, these
could also be considered investments in an essential infrastructure having a mitigating
effect on potentially significant increases in wholesale power costs.
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City of Port Angeles Electric Utility 2008 Resource Plan
7 CONCLUSION
A recent study15 confirms the current United States renewable energy and energy
efficiency industry is substantially larger than previously thought; and some argue the
industry is poised to grow into one of the main economic drivers of the 21St century.
This study found that by 2030 these industries could generate up to $4.53 trillion in
revenue in the U.S., and create more than 40 million new jobs.
The City's energy future is essential to our community's economic health. The City has
long benefited from having access to low-cost electricity from the federally based
system. However, as the world and the energy industry change, the City faces a
potentially serious threat to its economy in the form of rising electricity costs.
For Port Angeles, 67% of the money spent on retail power immediately leaves the local
economy. With minimal downside risk, developing a Plan that will increase energy
efficiency and develop new renewable resources will help protect the City's economy
from rising energy costs, keep more dollars circulating in the local economy and in tum,
help to increase the number of jobs that stay in our community.
The Plan's objective is to create and implement a proactive agenda to help ensure that
sufficient electrical resources are available to meet projected future loads. Achieving
this objective will require consideration of all feasible options and developing acost-
effective plan that is adaptable to ever-changing circumstances.
The City's Electric Utility currently has an effective conservation program in place and
is actively looking for new opportunities that will be evaluated in 2009 and 2010. Along
with exploring new options to the proposed BPA Tier 2 offering, it maybe possible to
substantially mitigate the impacts of rising wholesale power costs.
75 Bezdek, R. 2008. Renewable Energy and Ener~ni E 'ciencu: Economic Drivers for the 21St Century. Management
Information Services, Inc. for the American Solar Energy Society.
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City of Porf Angeles Elechic Utility 2008 Resource Plan
H APPENDIX A: FORECASTED LOADS
45,000,000
40, 000, 000
35, 000, 000
30,000,000
t
c 25,000,000
r
~ 20,000,000
Y
15, 000, 000
10, 000, 000
5,000,000
6,000,000
5,000,000
4,000,000
r
c
0
~ 3,000,000
L
Y
2,000,000
1,000,000
Industrial Transmission Rate Class
Total Energy Consumption
July 2008 -December 2018 Forecast
M
y = 1 E+O6Ln(x) + 3E+07
0
N N N N N N N N N
Actual ®Forecasted
o r m
N N N N N N N N N
-Log. (Actual) °^-^Log. (Forecasted)
General Service Rate Class
Total Energy Consumption
July 2008 -December 2018 Forecast
y = 1169.7x + 3E+06
of
.- .- .- ~ .- ~ ~ -- N N N N N N N N N N N N N N N N N N N
Actual °~^^°Forecast @ 0.25% Annual Growth -Linear (Actual) -Linear (Forecasted)
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City of Port Angeles Electric Utility 2008 Resource Plan
8,000,000
7,000,000
6,000,000
5,000,000
r
.~
c
0
~ 4,000,000
z
Y
3,000,000
2,000,000
1,000,000
1,400,000
1,200,000
1,000,000
s 800,000
c
0
L
Y 600,000
400, 000
200,000
General Service Demand Rate Class
Total Energy Consumption
July 2008 -December 2018 Forecast
y = 6851x + 3E+06
0 !-
N m a <o r m o r~ a ~o m m~ N M a m
m o 0 0 0 0 0
m m m m m °o o °o °0 0 0 0 0 0 0
~- ~ ~ r ~ ~ r N N N N N N N N N N N N N N N N N N N
~Actuat ®°'Forecasted -Linear (Actual) Linear (Forecasted)
GSD Primary Metered Rate Class
Monthly Energy Consumption
July 2008 -December 2018 Forecast
y = 159.5x + 680640
01
c> a co m m o N v ~ so r o m o N v N m r
~ ~ ~ ~ ~ o o °o °o °o °o °o o°
Actual Forecasted ®Linear (Actual) Linear (Forecasted)
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City of Port Angeles Electric Utility 2008 Resource Plan
Municipal Water Pumping Rate Class
Total Energy Consumption
July 2008 -December 2018 Forecast
500, 000
450, 000
400, 000
350, 000
s 300,000
w
c
0
~ 250,000
r
Y 200,000 •-
iu
u 6" 6 a b'tf~r a ';.
150, 000
100, 000
50,000
Y=- x+
RZ = 0.0128
n
Actual Forecasted -Linear (Actual) ---Linear (Forecasted)
600, 000
500, 000
400,000
t
c
0
~ 300,000
t
Y
200, 000
100,000
Non-Profit Rate Class
Total Energy Consumption
July 2008 -December 2018 Forecast
y = -373.51 x + 245415
OI
r- m m r m ~ n m m ~ m m o ~ N ro a H m r m
m m m m m m o 0 0 0 0 0 0 0 0 0
m m rn m m m m m N N N N n N n N N N N ° N N N N N N N
Actual Forecasted -Linear (Actual) ®Linear (Forecasted)
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City of Port Angeles Electric Utility 2008 Resource Plan
Primary Rate Class
Total Energy Consumption
July 2008 -December 2018 Forecast
5,000,000
4,500,000
4,000,000
3,500,000
s 3,000,000
w
c
0
~ 2,500,000
s
'~ 2,000,000
1,500,000
y = 222141 Ln(x) + 1 E+06
RZ = 0.2384
1,000,000
500, 000
0
ActualForecast Assuming No New Customers -Log. (Actual) -°-Log. (Forecasted)
Residential Rate Class
Total Energy Consumption
July 2008 -December 2018 Forecast
2s,ooo,ooo
20,000,000
s 1s,ooo,ooo
0
L
'Y 10,000,000
5, 000, 000
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0
m m ~ m rn m m oo N P ~c o co
o °o °o °a °o °o °o °o °o °0 0 0 0 0 0 0 0
~- -- ~ ~ ~ ~ ~ ~ N N N N N N N N N N N N N N N N N N N
Actual ®Forecasted -Linear (Actual) -Linear (Forecasted)
City of Porf Angeles Electric Utility 2008 Resource Plan
400,000
350,000
300,000
250,000
c
0
~ 200,000
r
Y
150,000
100, 000
50,000
Street Lighting Rate Class
Total Energy Consumption
July 2008 -December 2018 Forecast
0~
co a m o a ~c
~ ~ .- W ~ ~ ~ ~ N N N N N N N N N N N N N N N N N N N
Actual ®Forecasted -Linear (Actual) -Linear (Forecasted)
25,000
20,000
t 15,000
c
0
r
'~ 10,000
5,000
Yard Lighting Rate Class
Energy Consumption
July 2008 -December 2018 Forecast
01
~n o r m m o n e o N a u> co r ro
0 0 0 0
rn rn m m m m rn m °o °o °o °0 0 0 0 o a o `o
r r r r ~ r r ~ N N N N N N N N N N N N N N N N N N N
Actual ®Forecasted -Linear (Actual) ®Linear (Forecasted)
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City of Port Angeles Electric Utility 2008 Resource Plan
9 APPENDIX B: PUBLIC NOTICE AND HEARINGS
As required by RCW 19.280.030, the following Notice was published by City Clerk on
July 17, 2008 via newspaper and City website:
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the City Council of the City of Port Angeles will hold a
public hearing on Tuesday, August 5, 2008, at 7:00 p.m., or soon thereafter, at City Hall, 321 East Fifth
Street. The purpose of the public hearing is to receive input on the proposed Electric Utility 2008
Resource Plan.
The City Hall is accessible for persons with disabilities. Please contact the City Clerk, 417-4634,
if you will need any special accommodations to attend the meeting.
Becky J. Upton
City Clerk
The Proposed Plan was presented at the August 5, 2008 meeting of the City Council and
subsequently published on City website.76
A Public Hearing was held on August 5, 2008 with two public comments presented:
1) Would the City be supportive of regional renewable energy development on the
Olympic Peninsula?
2) Would the City be supportive of developing acustomer-driven photovoltaic (PV)
resource project u1 its service territory?
The answer to (1) is yes, the City would be interested in evaluating new resource
opportunities after completing its Tier 2 strategic planning exercise. The answer to (2) is
that the City proposed to the BPA developing acustomer-driven PV project with the
BPA funding 50% of the estimated $400,000 total system cost. The balance of the cost
would have required funding through voluntary contributions of City electric
customers. That grant request was denied by the BPA. Absent grant funding, the City
does not now have the financial capacity to construct such a PV system, although the
project may be reviewed agairt~at a future time.
16 See: http://www.cityofpa.us/pwEUtiLhtm#PResourcePlan
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City of Port Angeles Elechic Utility 2008 Resource Plan
10 APPENDIX C: BRIEF GLOSSARY17
Annual Energy, Average Megawatt (aMW). The amount of megawatts of energy
averaged over the number of hours per year.
Avoided Cost. The total economic costs (consisting of the capital and operating costs to
provide generation capacity and fuel, transmission, storage, distribution, and customer
service) to serve end-use energy requirements using a given set of resources. These
costs are referred to as "avoided" when an alternative set of resources is used to serve
requirements. Avoided cost must be determined to assess the cost-effectiveness of
potential supply-side and demand-side resources.
Base Load. The minimum average electric load over a given period of time.
Base Load Station. An electric generating facility designed for nearly continuous
operation at or near full capacity to serve base load. Base load generating stations are
operated to meet all, or part, of the minimum load demand of an electric system.
Benefit-Cost Ratio. The ratio of the value of a conservation measure's energy savings to
its installed cost, with the energy savings value based on the utility's avoided cost.
Biomass. Plant material, vegetation, or agricultural waste used as a fuel or energy
source.
Block Rate. A power product offered by the BPA for a fixed amount of power,
delivered at a constant rate through the month.
Bonneville Power Administration or BPA. A power marketing and electric
transmission agency of the United States government headquartered in Portland,
Oregon.
" Adapted from Best Practices Guide: Integrated Resource Planning For Electricity and from Seattle CitiLght Integrated
Resource Plan Glossaru. SEE: http://www.goodcents.com/Info/Best%20Practices%20Guide_IRI'%20Planning.pdf and
http://wwwseattle.gov/light/news/issues/IRP/Docs/Glossary_07_18_06.pdf
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City of Port Angeles Electric Utility 2008 Resource Plon
British Thermal Unit or Btu. A commonly used unit of energy, especially for fuels or
heat. Akilowatt-hour (kWh) is equal to approximately 3413 Btu.
Building Envelope. The roof, floor, walls, doors, and windows that separate the inside
of a building from the outside. Also known as building shell.
Capacity. The maximum amount of electrical load that a device can carry at one time.
Capacity Factor. The ratio of the average output of an electric power generating unit for
a time period to the unit's total capacity rating. A 50% capacity factor means that, for
example, a power plant produces on average half of the electricity that it could have
produced if operated continuously at its full capacity rating.
Cogeneration. The sequential production of electricity and useful thermal energy from
the same energy source. This is also sometimes defined as the joint production of
electricity and useful thermal or mechanical energy for industrial process, space
conditioning or hot water loads. Also called combined heat and power (CHP).
Coincident Demand. The rate of electricity demand of a customer or group of
customers at the time of an electric system's total peak demand.
Coincident Peak. Customer demand at the time of electric system peak demand.
Combined-Cycle Generating Plant. A generating plant using one or more combustion
turbines in combination with a steam cycle to produce energy at a higher overall
efficiency than a combustion turbine alone. In one combined-cycle configuration, hot
exhaust gases from the combustion turbine are used to raise steam. The steam is then
passed through a turbine, which turns a generator. Combined-cycle plants are fueled
with oil, natural gas, and sometimes with coal that has been converted into a gas
("gasified"). A combined cycle turbine operates most efficiently when it is run for long
periods of time without being ramped up and down.
Combustion Turbine or CT. Sometimes called gas turbines (similar to a jet engine),
these devices burn oil or natural gas, converting the heat energy from the burning fuel
to mechanical energy by directing the flow of combustion gasses against rows of radial
blades fastened to a central shaft. The central shaft is connected to an electric generator.
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City of Port Angeles Electric Utility 2008 Resource Plan
Combustion turbines, because of their generally rapid firing time, are designed for
meeting short-term peak demands placed on power distribution systems. They are
frequently ramped up and down as needed.
Combined Heat and Power or CHP. See: cogeneration.
Commercial Sector. Non-residential facilities that provide services, including retail,
wholesale, finance, insurance, and public administration.
Conservation and Efficiency. RCW 19.280.020 defines conservation and efficiency
resources as "any reduction in electric power consumption that results from increases in
the efficiency of energy use, production, transmission or distribution."
Cost-Effective. The present value (PV) of the benefits of the potential resource under
consideration over the planning period are greater than the PV of its costs. Cost-
effectiveness is always measured relative to an alternative. Cost-effectiveness can be
measured from a variety of perspectives, which vary in terms of the specific costs and
benefits included in the calculation.
Cost-Effectiveness Index. This is an indicator of the cost of saving electricity through a
given type of conservation measure. The Index is calculated by dividing the additional
cost of the efficiency measure (relative to standard technologies) by the energy savings
it produces. Sometimes called the Cost of Saved Energy or CSE.
Customer. An individual or entity that purchases electric service as one account under
one contract or rate schedule. If service is supplied to a customer at more than one
location, each location is generally counted a separate customer, unless the locations are
served under one billing account.
Customer Charge. An amount paid periodically by a customer for electric service,
exclusive of demand and/or energy consumption. It is often based upon utility costs
incurred for metering, meter reading, billing of customers, etc.
Customer Class. A group of customers with similar characteristics, such as economic
activity or level of electricity use.
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City of Port Angeles Electric Utility 2008 Resource Plan
Customer-driven Program. Where a utility or third-party develops and builds a
renewable power generation system to sell the electricity under along-term contract to
customers who are voluntarily subscribers.
Demand. The rate at which electricity is delivered by a system or part of a system, or to
a load point or set of loads. It is measured in kilowatts, kilovolt amperes or other
suitable unit at a given instant or averaged over a designated period of time. Demand
include many measures such as:
Average demand: The demand on, or the power output of, an electric
system or any of its parts over an interval of time, determined by dividing
the number of kilowatt hours by the number of hours in the interval.
Billing demand: The demand for which a customer is billed. Since billing
demand is based on the provisions of a rate schedule or contract, it does
not necessarily equal the actual measured demand of the billing period.
Coincident demand: Two or more demands that occur during the same
time interval. Often used to express the demand level of subgroups of
customers that occurs at the time of the electric system's overall maximum
peak demand.
Instantaneous peak demand: The demand at the instant of greatest load,
usually determined from the readings of indicating meters or graphic
meters.
Integrated demand: The summation of continuously varying
instantaneous demands during a specified demand interval.
Maximum demand: The greatest demand that occurs during a specified
time period.
Non-coincident demand: The peak demands of subgroups of customers
that do not coincide with system peak demand.
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City of Port Angeles Electric Utility 2008 Resource Plan
Demand Charge. The portion of the charge for electric service that is based on billing
demand under an applicable rate schedule.
Demand Forecast. Projected demand for electric power. A load forecast maybe short-
term (e.g., 15 minutes) for system operation purposes, long-term (e.g., 5 to 20 years) for
generation planning purposes, or for any range in between. Load forecasts may include
peak demand (kW), energy (kWh), reactive power (kVAR), or load profile. Forecasts
may be made of total system load, transmission load, substation/feeder load, individual
customers' loads, or appliance loads.
Demand-Side Resource. The energy service needs met through a measure or program
on the customer's side of the power meter .
Dispatch Order. The order of priority in which each electric generation unit is selected
for operation during a given time interval.
Dispatching. The operating control of an integrated electric system to assign load to
specific generating units as loads vary, to control operations of high-voltage lines and
substations, and to operate the interconnections with other electric systems, including
energy transactions.
Diversity. The diversity among customers' demands, which creates variations among
the loads in distribution transformers, feeders, and substations at a given time. A load
diversity is the difference between the sum of the maximum of two or more individual
loads and the coincident or combined maximum load. It is usually measured in
kilowatts (kW).
Economic Dispatch. A dispatch order based on realizing the most economical
production of electricity for customers.
Electric System. The generation, transmission, distribution and other facilities operated
as an electric utility or a portion thereof.
Energy. Electric energy is a measure of the amount of usage over time and is measured
in kilowatt-hours (kWh) or megawatt-hours (MWh).
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City of Port Angeles Electric Utility 2008 Resource Plan
End-Use. Useful work, such as light, heat, and cooling, which is produced by electricity
or other forms of energy.
Energy Audit. Analysis of a facility's electricity and other energy usage, often including
recommendations to alter the customer's electric demand or reduce energy usage. An
audit usually is based on a visit by an energy analyst or engineer to the home, building,
or manufacturing or agricultural facility.
Energy Charge. The charge for electric service based upon the amount of electric
energy (kWh) consumed and billed under an applicable rate schedule. See also
customer charge and demand charge.
Energy Efficiency Program. A program aimed at reducing overall electricity
consumption (kWh). Such savings are generally achieved by substituting technically
more efficient equipment to produce the same level of end-use services with less
electricity. Compare with conservation; contrast with load management.
Energy, electric. As commonly used in the electric utility industry, electric energy
means kilowatt-hours (kWh).
Off-Peak Energy. Electricity supplied during periods of relatively low system demand.
On-Peak Energy. Electricity supplied during periods of relatively low system demand.
Externality. A cost or benefit from production or consumption that is not accounted for
in market prices. Costs and benefits that do not have market value, and thus current or
projected prices, are externalities. For example, the costs of damage to human health
from certain air pollutants are negative environmental externalities.
Geothermal. Power generated from heat energy derived from hot rock, hot water or
steam below the earth's surface.
Heat rate. Generating unit efficiency, usually expressed in BTU's of input energy
required to produce a kWh of electrical output in a given power plant. See British
thermal Units.
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City of Port Angeles Electric Utility 2008 Resource Plan
HVAC. An acronym for heating, ventilating, and air conditioning services required in
buildings, or for the equipment used to provide HVAC services.
Hydro or hydroelectric power. A generating station or power or energy output in
which the device generating the electricity is driven by water power.
Incremental Cost. The difference in costs between two alternatives, for example,
between that of an efficient technology or measure and the standard technology.
Levelized Cost. The uniform annual cost that results in the same net present value over
the planning horizon as the stream of actual annual average costs. An example of a
Levelized cost is a monthly mortgage payment.
Line Losses. Kilowatt-hours and kilowatts lost in the transmission and distribution lines
under specified conditions.
Load. The amount of electric power consumed at any specified point or points on a
system. Load originates primarily in the power consuming equipment of the customers.
Load Duration Curve. A graph showing a utility's hourly demand, sorted by size, as
well as by the amount of time a given level of demand is exceeded during the year.
Load Factor. The ratio of the average load in kilowatts supplied during a given period
to the peak or maximum load in kilowatts occurring during that period. Load factor
maybe calculated for a customer, customer class or the entire electric system.
Load Forecast. See demand forecast.
Load Management. The controlling, by rescheduling or direct curtailment, of the power
demands of customers or groups of customers in order to reduce the total load that a
utility must meet at times of peak demand. Load management strategies are designed
to either reduce or shift demand from on-peak to off-peak, while conservation (see
energy efficiency) strategies reduce usage over larger multi-hour periods. Load
management may take the form of normal or emergency procedures. Utilities often
encourage load management by offering customers a choice of service options with
varying price incentives.
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City of Port Angeles Electric Utility 2008 Resource Plan
Load Shape. The time-varying usage pattern of customer demand for energy.
Load Shedding. The turning off of electrical loads to limit peak electrical demand.
Load Shifting. Shifting load from peak to off-peak periods. Applications include use of
storage water heating, storage space heating, cool storage, and customer load shifts to
take advantage of time-of-use or other special rates.
Loss of Load Probability or LOLP. A measure of the probability that system demand
will exceed available capacity during a given period.
Marginal Cost of Energy. The cost of providing an incremental unit of energy.
Marginal Cost of Capacity. The cost of meeting an incremental unit of peak-demand.
Marginal Resource. The most expensive resource, in terms of short-run marginal (fuel
and operating) cost, needed at a given time.
Market Barriers. Forces in the marketplace of goods and services that inhibit customer
selection based on economic criteria and restricted access to capital.
Megawatt or MW. One million Watts.
Megawatt-hour or MWh. A unit of electrical energy equal to one million Watt-hours or
1000 kWh.
Non-Technical Losses. Commercial losses from theft of electricity through
unauthorized connections, tampering with meter reading, metering errors, etc.
Peak Demand. The maximum rate of electricity consumption, expressed in MW. May
be expressed for groups of electricity users or the whole system, and by season
(summer or winter) or annually. See: demand. Also called peak load.
Peak load. See: demand.
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Peaking Unit, or peaker. A generating station that is normally operated to provide
power during maximum load periods.
Photovoltaic or PV. Afield of technology and research related to using solar cells for
energy by converting sunlight directly into electricity.
Planning Period. The time period over which the utility resource plan is performed.
Potential Resources. Resources, either supply-side or demand-side, which are either
currently commercially available, feasible or are expected to be commercially available
within the planning period.
Present Value. The value of a cost or stream of yearly costs that have been discounted
to reflect the fact that future benefits or expenditures are worth less than current
benefits or expenditures. Also called Present Worth. See: discount rate.
Present Worth. See: present value.
Pumped Storage Hydroelectric Plant. An electric generation facility consisting of a
higher reservoir, a lower reservoir, pipes connecting the two reservoirs, and turbine-
generator units that can be reversed to become pumps. At times when electricity
demand is low, base load generating plants provide electricity to pump water from the
lower reservoir to the higher. During peak demand periods, water is released from the
higher reservoir, spins the turbine-generator units to generate electricity, and is
expelled to the lower reservoir.
Renewables. A resource such as solar energy or wind that is inexhaustible without fear
of it running out, like oil.
Resource Plan. A strategic planning approach that provides a process for a utility to
evaluate a wide range of power resource alternatives.
Revenue Requirements. The amount of revenues that a utility needs to receive in order
to cover operating expenses, pay debt service, and provide a fair return to common
equity investors.
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City of Port Angeles Electric Utility 2008 Resource Plan
Scenario. A possible course of future events. In the Plan, scenarios are used to evaluate
portfolios of energy resources under a range of circumstances other than the baseline
forecast.
Shaping. Configuring a resource portfolio so that power generation capability and
delivery of purchased power closely matches changes in demand over time. Shaping
can help to avoid unnecessary costs and the need to sell surplus power.
Slice. A power product offered by the BPA for an amount of power that varies year to
year according to the amount of water flowing through the BPA hydroelectric system.
In a good water year (above average precipitation), more power is delivered to the same
customer than in a poor water year (below average precipitation).
Strategic Load Growth. The increase of end-use consumption during certain periods.
The result is a general increase in energy sales beyond the valley filling (defined herein)
strategy. Strategic load growth may involve increased market share of loads that are, or
can be, served by competing fuels, as well as economic growth.
Supply-Side Resource. A resource option that produces electricity.
Valley Filling. The building of off peak loads. An example valley filling technology is
thermal storage (water heating and/or space heating or cooling) that increases night
time loads and reduces peak period loads. Valley filling maybe desired in periods
when the long-run incremental cost of supply is less than the average price of
electricity. (Adding off-peak load under those circumstances decreases the average
price.)
Watt (W). The electrical unit of power or rate of doing work. A light bulb rated at 100 W
requires 100 W of power to light it fully. The watt is named after James Watt for his
contributions to the development of the steam engine, and from a technical basis a watt
is one joule of energy per second.
Watt-hour (Wh). The total amount of energy used in one hour by a device that requires
one watt of power for continuous operation. Electric energy is commonly sold by the
kilowatt-hour (1000 Wh or 1 kWh).
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