To the members of the:
CITY COUNCIL
Date~/~/2_3_ CA ✓ CC ✓
CM -~ ~CM (3) ~
June 8, 2023
CMWD Board Memorandum
To:
From:
Via:
Carlsbad Municipal Water Distn
Vicki Quiram, General Manager
Scott Chadwick, Executive Mana er
Ccarlsbad
Municipal Water District
Memo ID# 2023053
Re: Hydroelectric Turbine Generator andby Charges Eliminated (District 2) This memorandum provides an update to a staff report dated January 11, 2022, regarding the potential to eliminate $36,000 annually in standby charges that San Diego Gas & Electric (SDGE) bills the Carlsbad Municipal Water District (CMWD) for the hydroelectric turbine generator at the Maerkle Reservoir site.
Background
The CMWD has been operating a hydroelectric turbine generator at the Maerkle Reservoir site since 2015. This generator is connected to SDGE's electrical distribution system in accordance with an Interconnection Agreement with SDGE.
The CMWD also participates in a Clean Energy Alliance (CEA) program, in which the CMWD receives credits on its bills for the renewable energy it generates and supplies into the electrical distribution system. The CEA is the community choice energy default power provider for the Cities of Carlsbad, Del Mar, Escondido, Oceanside, San Marcos, Solana Beach and Vista, bringing residents and businesses clean power at competitive rates.
The CMWD's generator uses the force of potable water moving through a conduit to spin the rotator shaft of a generator that converts mechanical energy into electricity, and it is a clean, renewable source of electricity. As part of the CMWD's transition from SDGE to the CEA, CMWD staff identified an opportunity to eliminate approximately $36,000 annually in standby charges that SDGE charges the district in relation to the hydroelectric generator. Standby charges are billed to customers that generate electricity but are not under the Net Energy Metering program.
Discussion
On January 11, 2022, the CMWD Board authorized the Executive Manager or designee to sign a series of agreements to transfer the hydroelectric generator credits from SDGE to CEA. For the CMWD to be eligible for removal of SDGE standby charges, the generator first had to pass two significant hurdles: (1) registration with the Western Renewable Energy Generation Information System and (2) certification with the California Energy Commission.
Carlsbad Municipal Water District
5950 El Camino Real I Carlsbad, CA 92008 I 442-339-2722 t
Board Memo -Hydroelectric Turbine Generator Standby Charges Eliminated (District 2) June 8, 2023
In December 2022, the Western Renewable Energy Generation Information System approved registration of the hydroelectric generator. In May 2023, the California Energy Commission approved certification of the hydroelectric generator, and SDGE staff agreed to route the agreement that would allow the standby charges to terminate, which will result in an annual savings of about $36,000.
Next Steps
Staff will sign the paperwork with SDGE to transition from the current Interconnection Agreement to a Net Energy Metering Agreement that will terminate the standby charges from future CMWD bills.
cc: Geoff Patnoe, Assistant Executive Manager
Cindie McMahon, General Counsel
Paz Gomez, Deputy City Manager, Public Works
Laura Rocha, Deputy City Manager, Administrative Services Jason Haber, Intergovernmental Affairs Director
Zach Korach, Finance Director
Kristina Ray, Communication & Engagement Director
Gina Herrera, Deputy General Counsel
Shoshana Aguilar, Senior Management Analyst