201 S. Anaheim Blvd.
Suite #1101
Anaheim, CA 92805
Tel: (714) 765-5173
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: MAY 16, 2023
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: APPROVE AND AUTHORIZE SUBMISSION OF THE ANAHEIM PUBLIC UTILITIES 2023 INTEGRATED RESOURCE PLAN TO
THE CALIFORNIA ENERGY COMMISSION
ATTACHMENT (Y/N): YES ITEM # 04
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1) Approve and adopt the 2023 Integrated Resource Plan (IRP) for the City of Anaheim (City), including the Renewable Energy Procurement Plan and Enforcement Program, that ensures the City achieves (i) a 60% renewable energy resource target by 2030, (ii) greenhouse gas emission targets established by the California Air Resources Board, and (iii) compliance requirements set forth in Senate Bill (SB) 350 and SB 100; and
2) Authorize and direct the Public Utilities General Manager or designee(s) to take all actions as are necessary or advisable to implement the 2023 IRP, consistent with the mandates of California State law including, but not limited to, de minimis revisions to the 2023 IRP to address any California Energy Commission (CEC) recommended revisions, periodic updates to Appendix A, and data disclosures, as well as prepare, execute, certify, deliver, upload, and update any and all documents, information, data, declarations or affidavits, certifications, notices, consents, disclosures, plans, reports, filings, and compliance submittals.
DISCUSSION:
At their meeting on April 26, 2023, the Public Utilities Board (PUB) recommended that the City Council approve these actions.
Anaheim Public Utilities (APU) is continuing to transition its power supply portfolio to clean, sustainable resources, while balancing the need to maintain grid reliability and keep customer rates affordable. The Integrated Resource Plan (IRP) is a State required plan that serves as a comprehensive, long-term roadmap based on operational considerations, financial impacts, regulatory requirements, customer feedback, and related data modeling to outline the optimum pathway towards decarbonizing power supplies.
Approve and Authorize Submission of the Anaheim Public Utilities 2023 Integrated Resource Plan to the California Energy Commission
May 16, 2023
Consistent with State energy policies and approved legislation, specifically SB 350 (Clean Energy and Pollution Reduction Act of 2015), APU developed its initial IRP in 2018 to outline strategies to increase its renewable resources from 33% to 50% by 2030.
Subsequent legislation, including SB 100 (100 Percent Clean Energy Act of 2018), accelerated the adoption of renewables to 60% by 2030, and established a longer-term goal of 100% carbon-free resources by 2045.
The 2023 IRP meets the State requirement to revise the study no less than once every five years and utilizes latest forecasts and current data modeling to outline how APU intends to meet aggressive State energy policies. If approved, the 2023 IRP will be submitted to the California Energy Commission (CEC) as part of the compliance filing process required of California electric utilities. APU has been incrementally transforming its power supply portfolio over time and has done so with a diverse mix of renewable generation resources that provide high reliability, stable prices, and improved sustainability by transitioning away from coal-based resources. APU has divested from coal resources when contractual obligations end and is planning to be 100% free of coal resources in 2025. Transitioning away from coal resources and adding new renewable and/or carbon-free energy resources is expected to be the optimum resource portfolio.
This clean energy transition has been accomplished without excessive spikes in electric rates and APU is currently serving customers with approximately 40% renewables. The 2023 IRP reflects APU’s ongoing efforts to reduce its Greenhouse Gas (GHG) emissions by more than 80% from 1990 levels by 2030. Near-term procurement of power supplies includes solar, wind, and battery storage. Beyond the 2030 horizon, APU will evaluate new technologies that further decarbonize its portfolio and gradually reduce reliance on other fossil-fuel resources.
Included as the basis for modeling portfolio alternatives was a forecast of customer energy needs, which was based on customer growth from development activities as well as electric vehicles and building electrification. However, increases in energy use are expected to be offset by customer-owned rooftop solar installations and customer energy efficiency reductions. Based on the results of this modeling, APU estimates an average cumulative increase in customer energy demand of approximately 1.41% between 2024 and 2035, which is effectively a low-growth energy demand forecast.
Similar to the initial 2018 IRP, the 2023 IRP includes a residential satisfaction survey.
APU conducted digital surveys among a random sample of residential customers, including an open survey available to all customers on APU’s website. A total of 918 responses were received. Customers expressed support and satisfaction with APU’s electric service and sustainability initiatives; however, nearly half the respondents (46%) indicated an unwillingness to pay a premium on utility bills to accelerate the carbon-free goal ahead of State mandates. In line with previous customer responses, survey results demonstrate that sustainability is important, but bill affordability is also a priority.
Based on the customer survey results, APU plans to implement programs to help residents and businesses with sustainability education and rebates to transition toward clean-fuel vehicles and high efficiency appliances. Concurrently, APU will significantly reduce GHG emissions through the divestiture of coal resources and addition of new Approve and Authorize Submission of the Anaheim Public Utilities 2023 Integrated Resource Plan to the California Energy Commission
May 16, 2023
renewable and battery storage systems to meet sustainability policies without significant impacts to reliability and affordability.
IMPACT ON BUDGET:
Sufficient funds to implement the 2023 Integrated Resource Plan are included in APU's FY 2022/23 restricted Electric Utility fund budget, which is supported by Electric Utility revenue. Future years are subject to City Council approval of budget appropriations.
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachments:
1. 2023 Integrated Resource Plan
2. 2018 Integrated Resource Plan