8/2/2023
1 RiversideCA.gov1
RiversideCA.gov
RATE FUNDED CAPITAL IMPROVEMENT PLANBoard of Public UtilitiesAugust 14, 2023Riverside Public Utilities RiversideCA.gov2
BACKGROUND1. On June 12, 2023, the Board approved a recommendation tothe City Council to conceptually approve both the Waterand Electric Five-Year Rate plans.2. Board Members asked for an update on what capitalprojects have been completed since the 2018 rate increaseplans and advise the planned capital investments to befunded by the currently proposed for the Electric and WaterUtility Five-Year Rate Plan Proposal 8/2/2023
2 RiversideCA.gov3
PROPOSED RESIDENTIAL 5 YEAR ELECTRIC RATE PLANWATER: $0.15 Per Day ELECTRIC: $0.21 Per Day REFUSE: + $0.09 Per Day $0.45 Per Dayor$13.50 Per Month Average rate increase per year for 5 years
RiversideCA.gov4
PROPOSED ELECTRIC 5-YEAR RATE PLANCustomer Class CustomersYear 1% IncreaseYear 2% IncreaseYear 3% IncreaseYear 4% IncreaseYear 5% IncreaseCompound Annual Growth RateResidential (3 Tiers)99,718 7.1% 7.1% 7.0% 2.3% 2.4%28.5%Commercial Flat (2 Tiers)11,015 2.5% 2.8% 3.0% 3.0% 2.9%15.1%Commercial Demand (2 Tiers)988 0.0% 0.0% 0.0% 0.0% 0.0%0.0%Industrial TOU(3 periods)622 5.9% 6.6% 6.3% 4.3% 4.3%30.5% 8/2/2023
3 RiversideCA.gov5
$298 $223 $201 $155 $155 $148 $136 $132 $131 $119 $118 $107 $107 $15 $5 $8 $- $50 $100 $150 $200 $250 $300 $350Current Known Increase - Year 1 Proposed Increase - Year 1ELECTRIC RATE PLAN COMPARISONAverage Residential Monthly Bill at 600 kWh Per Month – Year OneRPU RATES REMAIN LOWRPURPU =112K Service Connections RiversideCA.gov6
PROPOSED RESIDENTIAL 5 YEAR WATER RATE PLANWATER: $0.15 Per Day ELECTRIC: $0.21 Per Day REFUSE: + $0.09 Per Day $0.45 Per Dayor$13.50 Per Month Average rate increase per year for 5 years
8/2/2023
4 RiversideCA.gov7
PROPOSED WATER 5-YEAR RATE PLANCustomer Class CustomersYear 1% IncreaseYear 2% IncreaseYear 3% IncreaseYear 4% IncreaseYear 5% IncreaseCompounded Annual Growth RateSingle Family Residential (3 tiers per class)58,731 5.7% 6.6% 6.6% 6.7% 6.6%36.7%Multi Family Residential (2 tiers per class)1,145 4.6% 6.6% 6.6% 6.7% 6.6%35.2%Commercial/ Industrial5,137 8.6% 6.0% 6.1% 6.3% 6.0%37.6%Landscape500 13.6% 5.9% 5.8% 6.1% 5.8%43.0%City Interruptible/ Recycled530 5.8% 6.3% 6.0% 5.8% 6.3%34.1%Agriculture (up to 3 tiers per class)224 1.8% 6.4% 6.5% 6.4% 6.5%30.7%Riverside Water Co. Irrigators (3 tiers per class)24 19.3% 7.1% 7.0% 7.2% 6.9%56.7%Temporary Service72 12.0% 7.0% 6.9% 7.1% 7.0%46.8% RiversideCA.gov8
WATER RATE PLAN COMPARISONAverage Residential Monthly Bill at 21 CCF Per Month – Year OneRPURPU RATES REMAIN LOWRPU = 66K Service Connections 8/2/2023
5 RiversideCA.gov9
CAPITAL IMPROVEMENT PROGRAM (CIP)1. Multi-year financial plana. For the repair, replacement, and/or construction of municipalfacilities and infrastructure.b. Strategically identifies both funded and unfunded capitalimprovement projects over a period of five years.2. Definitiona. Long-term investment of funds to improve, repair, or replace anexisting capital asset and/or construct or acquire a new capital asset.b. A capital project is a City resource, infrastructure and/or property witha value of at least $20,000 and initial useful life of at least 10 years.
RiversideCA.gov10
RPU’S 10-YEAR CIPOn January 18, 2018, the City Council Conducted a joint workshop with theBoard and approved to conceptually approve the electric and water utilityfive-year rate proposal 2018-2022 utilizing the Utility 2.0 Strategic PlanModified Option 1 for electric and water utility infrastructure improvementsover thenext 10 years, with rates approximately 35% lower than the originalfive-year rate proposal based on Option 3 infrastructure improvements, withyearly review by the City Council. 8/2/2023
6 RiversideCA.gov11
RPU’S 10-YEAR CIPRPU prepares two-year Operating and five-year Capital Budgets, which serve as RPU’s revenue and expenditure plan. These budgets are prepared in accordance with existing City, Board, and City Council policies, procedures, and guidelines.RPUs budget and corresponding CIP investments from the 2018 10-year CIP program, have been approved by Board and City Council:City Council Date Budget Fiscal Years CIP Fiscal Years6/18/2019 2019 – 2020 (amended) 2019 - 20246/16/2020 2020 – 2021 2020 -20216/22/2021 2021 -2022 2021 - 20226/21/2022 2022 - 2024 2022 -2024 RiversideCA.gov12
ELECTRIC CIPThe Electric Plan rate increases support investment in the electric system. The following is a summary of the 2018 investment plan, the 2018-2023 expenses, and the projects to be funded by the currently proposed for the Electric Utility Five-Year Rate Plan.Project Category 10 Year Plan(2018-2028)Budgeted(2018-2023)Expenditures 2018-20235 Year Plan(2024-2028)1. Overhead Projects $89,208,000 $30,428,289 $10,895,370 $48,947,0002. Underground Projects $139,326,000 $29,966,569 $18,973,956 $75,125,0003. Substation Projects $88,100,000 $30,448,024 $38,021,033 $69,683,000*4. System Automation $96,574,000 $45,189,662 $26,110,384 $83,162,0005. Recurring Projects $115,037,000 $94,902,173 $72,273,033 $38,582,000Total: $528,245,000 $230,934,717 $166,273,776 $315,499,000Rate Increase: 3% 5%*+/- $40 million Hunter Substation will be funded with carryovers and/or using a portion of $69,683,000 Substation Projectfunding in the 2023 5-Year Rate Plan. No additional CIP in the proposed five-year Electric Rate Plan. 8/2/2023
7 RiversideCA.gov13
COMPLETED AND PLANNED - ELECTRIC1. Overhead Projects: $89,208,000 10-Year Investment (FY 2018-2028)• 3,080 poles and related equipment replacements• 600 overhead switches replacements• 1,270 street light retrofits• Convert 29 4kV circuits to 12kV in 6 yearsCompleted:811 streetlights replaced900 poles and related equipment replaced200 overhead switches replaced10 circuits converted to 12kV Planned: 376 street light retrofits1,540 poles and related equipment400 overhead switch replacements 15 voltage conversions (4kV to 12kV) RiversideCA.gov14
ELECTRIC PROJECTS COMPLETED 2018-2023Pole ReplacementCity WideCompleted 2022Replacing poles ensures we maintain reliable service, maintain safety for workers and the public, and meet compliance obligations.
8/2/2023
8 RiversideCA.gov15
ELECTRIC PROJECTS COMPLETED 2018-2023Overhead Distribution Transformer ReplacementCity WideEnsuring reliable power to customers RiversideCA.gov16
COMPLETED AND PLANNED- ELECTRIC2. Underground Projects: $139,326,000 10-Year Investment (FY 2018-2028)• 62 miles of cable replacement • 262 vault replacements• 116 switch replacementsCompleted 18 miles of cable replaced4 vaults replaced10 switches replacedPlanned: 25 miles of cable replacement30 vault replacements25 switch replacements20 Distribution Line Extension and Line Rebuilds 8/2/2023
9 RiversideCA.gov17
ELECTRIC PROJECTS COMPLETED 2018-2023Cable Replacement Project located in Canyon Crest AreaCompleted 2019New cable will provide reliable power to customers for decades.
RiversideCA.gov18
ELECTRIC PROJECTS COMPLETED 2018-2023Switch ReplacementCity WideReplacing switches ensures we maintain reliable safe service and meet compliance obligations.
8/2/2023
10 RiversideCA.gov19
COMPLETED AND PLANNED - ELECTRIC3.Substation Projects: $88,100,000 10-Year Investment (FY 2018-2028)• 7 transformer replacements• 5 switchgear replacements• 70 breaker replacements• 570 relay replacements RiversideCA.gov20
COMPLETED AND PLANNED - ELECTRICCompleted:3 transformers replaced and 2 transformers in the procurement process2 switchgears replaced and 12 capacitors replacedApproximately 280 electromechanical relays with 80 digital relays replaced45 circuit breakers replaced and upgradedPlanned:Harvey Lynn Switchgear 5 Relay Replacement (Phase 2)Riverside Switchgear 3,4&5 phase 4 UpgradeHarvey Lynn Substation Upgrade ProjectHunter Substation Replacement ProjectLa Colina Substation Upgrade (Phase 2)La Colina - University Line Relay ReplacementRiverside Breaker 52-4Riverside Transformer T6 AdditionSubstation Automation System Upgrades (Phase 2)Orangecrest Relay Upgrades (SWGR 1 & 2)Plaza Substation 69kV Breaker ReplacementPlaza Substation Ring Bus Project & Retirement of T1 & T2Battery Charger Replacement ProgramSprings - Orangecrest Fiber Cable ReplacementReplace Radio Sites GeneratorsSystem - Wide relay Improvement3. Substation Projects: cont. 8/2/2023
11 RiversideCA.gov21
ELECTRIC PROJECTS COMPLETED 2018-2023
Substation Transformer Foundation located at Freeman SubstationCompleted 2020Provides foundation for transformer RiversideCA.gov22
ELECTRIC PROJECTS COMPLETED 2018-202369kV Vacuum Circuit Breaker Replacement at OrangecrestSubstationCompleted 2022Provides protection from electrical faults and isolation for maintenance
8/2/2023
12 RiversideCA.gov23
ELECTRIC PROJECTS COMPLETED 2018-2023
Switchgear Replacement located at Freeman SubstationCompleted 2020Monitors electric distribution lines and opens circuit breaker when fault occurs.
RiversideCA.gov24
ELECTRIC PROJECTS COMPLETED 2018-2023
Substation Transformer Replacement located at Freeman SubstationCompleted 2020Steps down voltage from 69,000 Volts (69kV) to 12,000 Volts (12KV), provides Power to ~4,000 Customers 8/2/2023
13 RiversideCA.gov25
ELECTRIC PROJECTS COMPLETED 2018-2023Switchgear Replacement located at Riverside SubstationCompleted 2022Monitors electric distribution lines and opens circuit breaker when fault occurs.
RiversideCA.gov26
COMPLETED AND PLANNED- ELECTRIC4. System Automation: $96,574,000 10-Year Investment (FY 2018-2028)• Citywide streetlight LED lamp replacement program• Electric vehicle charging stations• Substation and distribution system monitoring and controlCompleted Replaced over 25,000 high pressure sodium lamps with new LED luminairesEstablished electrical service four (4) for privately owned electric vehicle charging stationsCompleted substation teleprotection and substation automation projects, including Remote Terminal Units (RTU) upgrades.Planned: 6,000 Citywide streetlight LED lamp replacement program for Historic Districts Electric vehicle charging stations and Infrastructure upgradesSubstation and distribution system monitoring and controlOutage Management SystemAdvanced Distribution Management System 8/2/2023
14 RiversideCA.gov27
ELECTRIC PROJECTS COMPLETED 2018-2023LED Streetlight Replacement City WideCompleted 2023Greatly reduces energy use. LED lights have a longer life and reduce overall maintenance costs for bulb replacement.
RiversideCA.gov28
COMPLETED AND PLANNED- ELECTRIC5. Recurring Projects: $115,037,000 10-Year Investment (FY 2018-2028)Facilities needed to serve new customers and expanded load, including:• Services and meters for new customers• Line extensions and rebuilds• Overhead to underground conversionsCompleted Issued to Construction over 710 new Electric Service designs and meter panel upgrades for new customer/developer driven projects, including but not limited to new line extensions and overhead to underground conversions.Notable projects include:2 new Feeder Line Extensions for CARB UCR North District Phase 1 Line Extension Nordstrom Feeder Line Extension The Exchange Development Line Extension Iowa Avenue Road Widening and Overhead to Underground Conversion UCR Linden Avenue Overhead to Underground Conversion Phase 1Planned: Facilities needed to serve new customers and expanded load, including:Services and meters for new customers Line extensions and rebuilds Overhead to underground conversions 8/2/2023
15 RiversideCA.gov29
ELECTRIC PROJECTS COMPLETED 2018-2023Services and meters for new customersLine extensions and rebuildsEnsuring that we meet the needs of our customers RiversideCA.gov30
WATER CIPThe Water Plan rate increases support investment in the water system. The following is a summary of the 2018 investment plan, the 2018-2023 expenses, and the projects to be funded by the currently proposed for the Water Utility Five-Year Rate Plan.Project Category 10 Year Plan(2018-2028)Budgeted(2018-2023)Expenditures 2018-20235 Year Plan(2024-2028)1. Water Supply $10,791,000 $12,291,304 $10,026,110 $28,000,0002. Water Treatment $1,296,000 0 $1,296,0003. Well Projects $30,499,000 $15,124,388 $11,718,676 $15,552,0004. Transmission Pipelines $65,823,000 $29,681,357 $20,787,935 $36,142,0005. Distribution Pipelines $117,790,000 $46,573,283 $56,249,000 $74,317,0006. Distribution Facilities $19,268,000 $11,581,246 $16,197,230 $7,872,0007. Reservoir Projects $2,440,000 0 $1,288,0008. System Automation $39,209,000 $17,859,939 $2,844,856 $19,225,000Total: $287,116,000 $133,111,517 $117,823,807 $183,692,000Rate Increase: 5.7% 6.5% 8/2/2023
16 RiversideCA.gov31
COMPLETED AND PLANNED - WATER1. Water Supply: $10,791,000 10-Year Investment (FY 2018-2028)• Recycled water phase 1 - 600 acre feet new yield• Seven Oaks Dam Enhanced recharge project - 1,000 acre feet new yieldCompleted:Seven Oaks Dam Enhanced Recharge Phase 1A – 1 Storm Water Capture Jackson Street Recycled Water Pipeline, Phase 1Planned: Seven Oaks Dam Enhanced Recharge Phase 1B NEW INVESTMENTRiverside Habitat Parks and Water Project - West Branch NEW INVESTMENT RiversideCA.gov32
WATER PROJECTS COMPLETED 2018-2023Water SupplyEnhanced Recharge 1ASeven Oaks DamCompleted: 02/2023Groundwater recharge sediment liner to prevent groundwater mounding
8/2/2023
17 RiversideCA.gov33
COMPLETED AND PLANNED - WATER2. Water Treatment $1,296,000 10-Year Investment • Partial replacement of membrane filters at the John W. North Water Treatment PlantCompleted:None - Not RequiredPlanned:John W. North Water Treatment Plant - 3 Filter Replacements RiversideCA.gov34
COMPLETED AND PLANNED - WATER3. Well Projects: $30,499,000 10-Year Investment (FY 2018-2028)• 3-5 well rehabilitations annually• 5 new drinking water wells• 2 new irrigation wellsCompleted:14 Wells Rehabilitated 2 new water wells (Warren 4R and Gage 29-3R)Planned: Drilling and equipping Gage 29-2R Rehabilitation of wells - Garner 6 and Garner D 8/2/2023
18 RiversideCA.gov35
WATER PROJECTS COMPLETED 2018-2023Well ProjectsGage 29-3RGage Well FieldSan Bernardino1/2020-2/202294-year groundwater Well replacement RiversideCA.gov36
COMPLETED AND PLANNED - WATER4. Transmission Pipelines: $65,823,000 10-Year Investment (FY 2018-2028)• Techite pipeline replacement• Industrial booster station (Hunter Park) pipeline• Park Avenue pipelineCompleted:2.3 miles of Techite Replaced (all Techite Pipe within Magnolia replaced) Planned: $36,142,000 (FY2024-2028)2.4 miles of Techite to be replacedPark Ave. Transmission Main Replacement 8/2/2023
19 RiversideCA.gov37
WATER PROJECTS COMPLETED 2018-2023Transmission PipelinesLincoln Techite Pipe Replacement Fenwick to Jefferson7/2021-7/2023Replacement of aging water transmission pipe RiversideCA.gov38
COMPLETED AND PLANNED - WATER5. Distribution Pipelines: $117,790,000 10-Year Investment (FY 2018-2028)• Neighborhood pipeline replacements - averaging 4.9 miles per year (170-year replacement cycle)Completed:Neighborhood pipeline replacements – 11.2 miles of pipeline replaced (350+ year replacement cycle)Planned: Neighborhood pipeline replacements per budget 8/2/2023
20 RiversideCA.gov39
WATER PROJECTS COMPLETED 2018-2023Distribution PipelinesWells and Cypress Ave 7/2021-12/2021Replacement of aging water distribution pipe and service laterals RiversideCA.gov40
COMPLETED AND PLANNED- WATER6. Distribution Facilities $19,268,000 10-Year Investment (FY 2018-2028)• Canyon Crest pump station replacement• Crest pump station replacement• Polk/Magnolia pressure control station replacement• Replace/rebuild 4,500 meters annuallyCompleted:Mission Inn and Canyon Crest Boosters constructedMagnolia Pressure Reducing Station constructed10,035 small meters replaced; 155 large meters replaced; 1,655 large meters tested/calibratedPlanned: Water meter replacementsBooster station motor and pump replacementsPressure reducing station replacements 8/2/2023
21 RiversideCA.gov41
WATER PROJECTS COMPLETED 2018-2023Distribution FacilitiesCanyon Crest Booster830 El Cerrito DriveStart-End2/2021-08/2023Aging infrastructure replacement to maintain system pressure RiversideCA.gov42
COMPLETED AND PLANNED - WATER7. Reservoir Projects: $2,440,000 10-Year Investment (FY 2018-2028)• Rehabilitation of water storage reservoirs to secure and protect water qualityCompleted:None neededPlanned: Reservoir Rehabilitation 8/2/2023
22 RiversideCA.gov43
COMPLETED AND PLANNED - WATER8. System Automation $39,209,000 10-Year Investment•Automated metering infrastructure• Production, treatment and distribution system monitoring to improve security and efficiency• Operational data management system to improve management control and efficiencyCompleted:SCADA Phase 1 (Network Communication) Planned: SCADA Phase II and III (Network Communication) Advanced Metering Infrastructure RiversideCA.gov44
WATER PROJECTS COMPLETED 2018-2023System Automation Network CommunicationSCADA Phase ISystemwideStart-End2/2019-6/2022Operate and monitor water system facilities
8/2/2023
23 RiversideCA.gov45
45Strategic Priority 5 - High Performing Government Goal 5.4 - Achieve and maintain financial health by addressing gaps between revenues and expenditures and aligning resources with strategic priorities to yield the greatest impact. Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
RiversideCA.gov46
That the Board of Public Utilities receive an update on theCapital Improvement Plan budgets and expenditures forfiscal years 2018-2023 and the planned capitalinvestments to be funded by the currently proposedElectric and Water Utility Five-Year Rate Plan Proposalintroduced to the Board on June 12, 2023.RECOMMENDATION