217/23 item 5
City Council
Item #5: Silicon Valley Power
RNIA Quarterly Update
1852
RTC 23-51
THE MISSION CITY
February 7, 2023
1 - SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
Agenda
• Load Growth
• Budget Impacts of High/Volatile Natural Gas Prices
• Winter Storm Preparation
• Progress on Key Expansion Projects
• Customer Rebate Programs and Outreach
• Potential SVP Leasing space at 900 Lafayette Building 2 POST MEETING MATERIAL
1 SVP Historic Load Growth
420
Calendar Year Load increased by 9.25% to 4,516 GWh
380
$ 340
· 300
- Monthly Energy
- Rolling 12 month Average
180
Jan-00 VROS Jan-04 VROS Jan-09 Jan-10 Jan-11 Jan-12 Jan-16 3 • SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
Budget Highlights
• Historically High Natural Gas Prices
- Peaked nearly 11x higher in December than historical
- January approximately 3.5X higher than historical
- City's hedging strategy provided some price protection for Powerplants - Increased costs for Market power purchases
• Approximately 200 MW at 100-150% higher than typical
• Other Utilities are considering double digit increases • Financial Impacts to Date
- Forecast FY22/23 Expenses: ~11% higher than anticipated or $68M • Resource and Production Costs (Estimated $75.OM above budget) • Salary and Benefits (Estimated $5.OM below budget)
• Materials/Services/Supplies (Estimated $2.oM below budget) 2 SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
Budget Highlights
• Actively Tracking Budget and Options
- Exercised Gas/Power Hedges
- Liquidate Gas Hedges
- Use of cash balances (Unrestricted Funds)
- Reviewing all large expenditures (defer costs)
- Evaluating use of reserves
• Monitoring Resource Cost
- Higher Natural Gas Prices = Market Purchase Prices
- Rainfall (Hydropower) reduces market purchase
prices. NCPA Utica Dam and Reservoir - Jan.2023
• Hydropower starting in January
• Reduced Power purchased from the Market from 200
MW (December) to 40 MW (January).
• Tracking to be good hydropower year to reduce power
5 5
SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
Winter Storm Support
• Large Scale Preparations began December 30th
• SVP Personnel working around the clock
during Storm Events
• Customer Service monitoring status and
communicating outage response with
Customers
• Field Operations staff pre-positioned for Storm
response
- System Control Operators, Troubleshooters, T&D
Distribution crews, Substation Electricians, Tree
Trimmers, Engineering
• 2,100+ hours worked by staff outside of normal Broken pole in residence's backyard schedule to support Storm Events on January 11, 2023 at 11pm 6 3
SILICON
• VALLEY
POWER.
CITY OF SANTA CLARA
Winter Storm Effect in Santa Clara
• 25 Outages between December
28th through January 12th
• 56% Outages were under 100
customers
• 40% of outages resolved under
1 hour
• 72% of outages resolved under
4 hours
• Approximately 623 customers
had long outages (8+ hours)
• Longest outage 14 hours
affecting 17 customers
Status of Key Expansion Projects
Olen NORTHERN
• Kifer and Scott Receiving Stations
• Completed draft Switchgear Specifications. 30%
design in February, Full design to be completed late
2023
Mission College
• Northern Receiving Station (NRS) Upgrades
101 NORTH SANTA
• Proceeding with design packages for Breaker 412 & 392 CLARA mitigation design packages
•SCOTT BIN
• NRS-KRS New 115kV Transmission Line SCOTT A
• Completed field visit for three route alignment KIFER alternatives. CEQA consultant completed draft
environmental screening report. LEGEND
• Critical Path Items: • Alternative 1
Alternative 2
• Transformer Procurement Package (20 + transformers
• Alternative 3
- RFP release
A Receiving
• Develop Switchgear Procurement Package Station
• Finalizing 60kV Reconductor Planning Packages
8 4
* SILICON
VALLEY
POWER,
CITY OF SANTA CLARA
Supply Chain Issues - Doubling Lead Times
• Transformers and Switchgear-12-24+ month lead time
• Customer Meters - 12-month lead time
• Electric Vehicles - City/SVP was to replace 33 fossil fuel vehicles with electric in 2022 and 2023. Orders were cancelled by the auto manufacturers. City Fleet is working to secured 10 EV
replacement vehicles to date
• Customers are communicating similar impacts for supply chain • Mitigation Strategy - procure long lead items in bulk and earlier procurement, e.g., RFQ for bulk transformer purchase in February 2023
9 SILICON
VALLEY
POWER.
CTY OF SANTA CLARA
Residential and Commercial Rebates
• 30 residential and commercial rebates, programs
and grants available
• Proactively target various customer segments and
demographics
• Re-evaluation program offerings annually
• NOTE: IN PERSON ENERGY AUDITS ARE BACK! 07-
- How are we promoting? - website, news item, social
media and it is offered to customers with high bill
concerns
- Postponed during COVID
SVP Energy Auditor holding thermal imaging
- Due to staffing levels, can only schedule 2 a week,
camera
booked through March.
10 5
* SILICON
VALLEY
POWER.
OTTO SANTANAR
Rebates and Program Outreach - 2022
• Bill Inserts, Envelopes, Channel 15 Slide, Newsletters - Monthly • Newsletters - The Outlet and Inside Santa Clara - 4-6 Times a Year • Direct Mail (Residential and Commercial) - 5 Post Cards/9 Flyers • Social Media (Facebook, Twitter) - 291 Posts/17,150 Subscribers • News Releases and News Blasts (GovDelivery - City and SVP) - 25 News Items Posted/22,342 Subscribers (Includes City, SVP, EV, Sustainability, and SVP Business News)
• Other Outreach
- Community Events - Art & Wine, Senior Health Fair, Arbor Day, Tree Lighting, etc. - Webinars - EV Infrastructure for Commercial and Multi-Family Housing - Sponsored Classes - Induction Cooking Class
- Education Videos
- Library Partnership - Energy Books and Tool Lending
11 •SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
900 Lafayette
• SVP currently rents office space at 801 Martin Ave
• Lease expires in 10/31/2025
• Staff would like to explore 900 Lafayette
• Long - term plans for the building
• Major capital improvements needed
• City not staffed for long-term lease
• Downtown Precise Plan
• SOQ for Engineering Study
• Roofing, electrical, HVAC, Plumbing, etc.
• Architectural and Environmental
• First floor options
• Downtown Task Force - February 16 meeting
12 VALLEY
POWER.
CITY OF SANTA CLARA
Upcoming Items
• Monitoring budget and seeking opportunities for savings, deferral of projects, increased revenue.
• Next 6 months highlights
existing infrastructure (power plants, substations, transmission and distribution.) - Battery Storage
- Integrated Resources Plan (IRP) - RFP issued, vendor to be awarded, due to council Q4 2023
13 City Council
Item #5: Silicon Valley Power
Quarterly Update
1852
RTC 23-51
THE MISSION CIT
February 7, 2023
14 7