Utility Business Plan
December 9, 2025
• Selected Contractor For MVU Engineering Support is City Light and Power Engineering Services
• Selected Contractor for MVU Operational Support is City Light and Power
• Selected Contractor for MVU Customer Service Support is ESC Partners
• Estimated savings is between $7M and $9M
• Results of Comprehensive Cost of Service Study
• Proposed rates are 26% lower on average than SCE’s current rates
Transitional Plan - Updates
The Utility Business Plan is a document that breaks the utility goals and objectives into 12 component parts. MVU staff will look at 1 aspect of the business every month to conduct a complete update to the Utility Business Plan annually. This will be a living document analyzing past performance and establishing goals ensuring that MVU staff are making decisions that improve the following goals:
• Affordability
• Environmental Stewardship
• Power Quality
Internal Planning
• Community Engagement and
Development
• Innovation
• Reliability & Safety
1) Distribution System Expansion
2) Software and Systems
3) Facilities, Equipment & Warehousing
4) Legal Requirements and Regulatory Reports
5) Asset Replacement and Inspection
6) Power Supply
7) Customer Engagement
8) System Reliability
9) Organizational Planning
10)Financial Stability
11)Customer Programs and New Policies
12)Standards and Action Plans
The Utility Business Plan Areas of Focus
Future Distribution Enhancements:
• Utility Scale Battery Energy Storage Projects
• Moval Substation (Claire and Moreno Beach, by June 2027) • World Logistics Center (Eucalyptus and World Logistics Center Parkway, by June 2030)
• New Substations and Substation Expansion Projects
• World Logistics Substation (by June 2030)
• Day St. Substation (by December 2026)
• MoVal Substation Expansion (by June 2028)
• Line Extensions in the North East side of the city
• Ironwood Phase 2 (by December 2026)
• Microgrid and EV Infrastructure
• City Hall Campus (by June 2027)
Distribution System Goals
Distribution System Enhancement
Existing Substations
Moval Substation
Kitching Substation
Planned Substations
WLC Substation
Edgemont
Substation
NE Substation
Software and Systems
MVU requires various software to ensure reliability efficiency, and customer satisfaction.
Currently procuring / deploying:
ETAP
o Distribution Model (December 2025)
o SCADA (Supervisory Control and Data Acquisition)
o OMS (Outage Management System)
Work Order Asset Management System
o Will help MVU better manage its workload
o Allows for better asset records, inspections, and
maintenance
o Ensures compliance with California General Order 165
and 174
Facilities, Equipment and Warehousing
As the utility grows and the services MVU provides
expand we need to have sufficient physical space for
staff and equipment to ensure Utility Operations.
Key Initiatives:
• New MVU Headquarters ( by April 2026 )
• New MVU Warehouse and Office Space in City
Yards ( by June 2028 )
• New Dispatch and Department Operations Center (
by June 2030 )
Compliance with mandated regulations ensures that MVU operates in alignment with state energy policies and standards. Some of the primary regulations are imposed by the following organizations:
• FERC – Regulation of wholesale power markets, reliability standards, accounting rules, etc. • CAISO – Day ahead and real time markets along with resource adequacy • NERC – Reliability standards and critical infrastructure protection • CPUC – Integration of DER, Wildfire mitigation plans, Infrastructure, Billing, and Disconnection Policies
• CEC- Renewable Portfolio standard, Energy Efficiency programs, integrated resource planning
• CARB – Cap and trade along with GHG reporting
Under new federal and state administrations regulatory reports are changed and introduced but the utility currently provides over 30 reports to ensure compliance Legal Requirements & Regulatory Reports
Asset management includes the documentation, inspection, and replacement of assets. The utility prioritizes enhanced reliability and safety by verifying asset lifespan, optimizing capital investments, and ensuring compliance with current regulations.
Assets are evaluated by criticality, health, and risk index scoring. • MVU currently utilizes our contractors database for asset management Future plan for Asset Management System (AMS)
• AMS will capture inspection data
• Staff enters detailed data for routine inspections
• AMS directs Inspection tasks that
• AMS will generate reports to satisfy General Order 165 & 174 Asset Replacement and Inspection Programs
Asset Replacement Cycles
Assets Quantity Approximate Present
Value if New
Estimated Useful
Life
Substations 3 $ 30,000,000 60
Circuit Breakers 38 $ 9,500,000 40
Substation Transformers 7 $ 18,000,000 50
Underground Primary (Circuit
Miles) 149 $ 24,519,819 40
Pad Mounted Switches 154 $ 5,082,000 50
Gas Switches 27 $ 2,025,000 40
Transformers 863 $ 37,972,000 40
Underground Secondary (Circuit
Miles) 103 $ 5,953,376 40
Streetlights 11768 $ 49,425,600 40
Customer Meters 7963 $ 4,400,000 10
Power Supply
The mission of MVU’s Power Supply, Energy Procurement, and Regulatory Compliance function is to ensure the delivery of reliable, affordable, and sustainable electricity to the Moreno Valley community through strategic planning, disciplined procurement, and full adherence to state and federal mandates.
MVU splits Power Supply targets into 3 component parts; Renewable Energy, Resource Adequacy and Power Procurement.
Power Supply - Goals
• Set-up Distributed Generation groups within the crediting agency to start minting and capturing Renewable Energy Credits from our customer’s solar systems ( by June 2026 )
• Purchase Resource Adequacy to meet monthly California independent system operator (CAISO) requirements for 2026 ( by January 2026)
• Develop Resource Adequacy strategy for 2026 – 2030 ( by June 2026 )
• Solicit for Renewable Portfolio Standard eligible 10-year power contract for energy in the 20,000 - 50,000 Mwhr annual range ( by April 2026 )
• Establish Contract collecting Congestion Reduction Revenue ( by June 2026 )
Power Supply - Power Content Label
Customer Engagement
Public power utility staff, from senior management to front line workers, are serving their neighbors, families, and friends. Serving the community is the public power utility’s top priority.
The utility was in attendance to community events
such as El Grito, Springtastic and Juneteenth
to better engage directly with customers and the
community.
In 2025, the second Public Power Week Event was
hosted by the utility for customers to further engage,
educate, and celebrate service provided to the
community.
Customer Engagement - Goals
• Conduct customer satisfaction level survey and determine current customer satisfaction ( by February 2026 )
• Establish a plan to improve rating ( by June 2026 )
• Increase attendance of our 2026 Public Power Week Event to 120 MVU customers
• Establish program to conduct outreach to our Key Accounts customers ( by June 2026 )
• Develop better billing and metering audits to speed up anomaly detection and correction ( by June 2027 )
Reliability in electric utilities refers to the ability to deliver uninterrupted electricity to customers consistently. High reliability ensures minimal disruption to customers, efficient operations, and satisfaction across residential, commercial, and industrial sectors. Reliability focuses on reducing outages and swiftly restoring power when disruptions occur.
• SAIFI – System Average Interruption Frequency Duration – How many outages per customer
• SAIDI – System Average Interruption Duration Index – How many minutes of outage per customer
System Reliability
Our Reliability Metrics
0.0 0.2
0.4 0.6
0.8 1.0
1.2 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Average # of Outages per Customer
Calendar Year
SAIFI (# of Outages)
SAIFI
Our Reliability Metrics
0 20
40 60
80 100
120
140
160
180
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Average duration of Time Without Power per Customer
(in Minutes)
Calendar Year
SAIDI (Duration in Minutes)
SAIDI
How Do We Compare?
0 0.2
0.4 0.6
0.8 1
1.2 1.4
2020 2021 2022 2023 2024
Average # of Outages per Customer
Calendar Year
SAIFI (# of Outages)
City of Moreno Valley - (CA) City of Riverside - (CA) City of Anaheim - (CA) City of Burbank Water and Power City of Glendale - (CA) City of Pasadena - (CA) Los Angeles Department of Water & Power Southern California Edison Co How Do We Compare?
0 50
100
150
200
250
2020 2021 2022 2023 2024
Average duration of Outages per Customer (in Minutes)
Calendar Year
SAIDI (in Minutes)
City of Moreno Valley - (CA) City of Riverside - (CA) City of Anaheim - (CA) City of Burbank Water and Power City of Glendale - (CA) City of Pasadena - (CA) Los Angeles Department of Water & Power Southern California Edison Co MVU’s organizational growth is driven by rapid customer expansion, including large- scale developments such as the World Logistics Center and numerous residential and commercial projects citywide. To meet this demand and further internalize services, the City is hiring 13 new employees. As these projects come online we will need to continue to add staff to manage the customer needs.
Organizational Planning
8 8 8 8 8 8 8 8 8 8 8 8 8
14 14 16 16 14
0 1 3
10 16 24 32 39 47 52 52
0 4
16 9
21 13
29 30
31 32 34
6 10 12 9
0 21
10 19
4 4
4 4 4
28 32 36 38 41
48 55
64 73
81 90
96 99
0 20
40 60
80 100
120
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Full Time Equivalent Employees (FTEs)
Fiscal Years
Projected Utility Size
(FTE's)
Contracted or Defecit FTEs Organizational Restructuring FTEs WLC Required FTEs ENCO FTEs
Organizational Planning
This section presents a comprehensive analysis of the financial health of the Moreno Valley Electric Utility (MVU), beginning with a retrospective review of the past five fiscal years, followed by detailed projections for the next five years and long-range commentary aligned with the 20-year Integrated Resource Plan (IRP).
MVU’s Net position continues to improve.
Financial Stability
0 1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
$-
$10,000,000.00
$20,000,000.00
$30,000,000.00
$40,000,000.00
$50,000,000.00
$60,000,000.00
$70,000,000.00
$80,000,000.00
2019 2020 2021 2022 2023 2024
Financial Performance with Customers
Number of Customers: Total Expense Total Revenue Total NET • Maintain Net Revenue at least 15% lower than SCE to ensure customer savings
• Restructure rates to reduce bill fluctuations
• Begin conducting more in-depth analysis of customer rates • Renegotiate Taxable bonds into tax exempt utility bonds • House has submitted legislation to remove tax exempt bonds from sanctuary jurisdictions.
Financial - Goals
The utility currently offers 13 Public Purpose Programs across four key categories: Energy Efficiency, Low-Income Assistance, Renewable Resources, and Research & Development.
In recent year the following were introduced:
• Public Purpose Program Book – Introduce
program polices and requirements for both
residential and commercial programs
• Clean Charge EV Program – Offers up to $20,000 in savings for commercial customers that have recently purchased EV Chargers Customer Programs
• Improve the tracking of investments in various programs • Evaluate programs on their cost effectiveness
• Establish targets for each Program being offered to the public
• Develop a new Program to be offered to Multifamily
residential customers who do not own the structure they live in
• Streamline application reviews to improve turnaround
times
Customer Programs
Programs Flyers
Standards and Action plans are essential as they ensure safety, reliability, and compliance in operations.
Standards
→ Currently using SCE Applicant Design Standards
→ MVU is currently drafting our own comprehensive engineering standards.
Action Plans
▪ Wildfire Mitigation Plan – Updated as needed
▪ Electric Operations and Maintenance Manual – Updated annually ▪ Natural Disaster and Storm Procedure
▪ Arc-Flash Compliance – First comprehensive study to be conducted in 2025
▪ Integrated Resource Plan – Completed in early 2025 with an update planned for early 2026
Standards and Action Plans
Phone: 951.413.3500
Email: [email protected]
14331 Frederick Street, Suite 2
P.O. Box 88005
Moreno Valley, CA
92552-0805