4/4/2023 item 9
City Council
Item #9: Silicon Valley Power
NIA Quarterly Update
1852
RTC 23-135
THE MISSION CITY
April 4, 2023
1 * SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
Agenda
• Load Growth
• Budget Impacts of High/Volatile Natural Gas Prices
• Storm Response
• Other Updates
• Upcoming Items
POST MEETING MATEKIAL
1 SVP Historic Load Growth
420
380
340
300
260
220 - Monthly Energy
• Rolling 12 month Average
180
Jan-08 Jan-09 Jan-10 Jan-11 Jan-13 Jan-14 Jan-15 Jan-16 Jan-18 Jan-19 Jan-22 Jan-23 3 SILICON
VALLEY
POWER.
Budget Highlights
• Historically High Natural Gas Prices Northern California Natural Gas Prices for Last Two Winters - Increased costs for Market power
purchases - Approximately 200 MW
at 100-150% higher than typical
- Continued Council updates thru
presentations and emails Mere me
• February 7 Presentation - Resource
and Production costs $75.0M over 10
budget
• Implemented a number of budget
- Nor 2022 - Mar 2023 - Nov 2021 - Mar 2022
saving measures
4 2
- SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
Budget Savings
• Actively Tracking Budget, Options, and CALIFORNIA TODAY Cost Saving Actions What's Fueling California's High
- Liquidate partial gas position ($8 Million) Natural Gas Prices - Lawsuit resolution ($18.5 million)
Transportation problems, cold weather and low storage have all - Defer Capital Projects ($12.8 Million) contributed to higher gas bills. - Sale of excess RECs (FY 2023/24)
- Higher cost energy sales
- Hydro production A 385% Gas-Bill Jump Stuns Californians • Estimated deficit reduced to approximately Facing Cold, Wet Winter $70 million
- Use of cash balances Noticed a high utility bill recently? Natural gas prices are rising in California.
• Will recommend 5% midyear increase
- Outreach has started
- Climate Credit for residential users
5 MA SILICON
CAR. VALLEY
POWER.
CITY OF SANTA CLARA
Storm Response
• SVP Crews prepositioned for each
storm
• Excellent collaboration between City
Departments to support downed
trees/utility poles.
• 36 Tree induced outages
- Wind driven
- Carmelite Monastery (21 hour outage)
- Homestead Avenue Poles down
(o customers out of power)
6 SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
Other Updates
• High Voltage Transformers RFP (up to 22)
- NRS, KRS, SRS, and Others •NORTHERN
RECEIVING
- Could drive project schedules 'STATION
- RFP extended to April 11th due to (NR$)
supply issue of SVP specified equipment
SOCUSATA
SCOTT
• Loyalton Sale (Approx. 10,270 Acres) RECEIVING ISTATION - Selected Firm for Real Estate Brokerage Services -(SRS) - Contract to Council for April 18th KIFER
RECEIVING
STATION
• 900 Lafayette (Commerce Plaza: 7 Stories 90,000 SF) (KRS) - Task Force Supportive of exploring SVP relocation
Santa
- RFP Closed March 31st Clara
- Will work with CAO on how it affects future Downtown
Precise Plan Surplus Land Process
7 SILICON
VALLEY
POWER.
Upcoming Items
• Consider rate increase May 23, 2023
• Next 6 months highlights
- Community solar survey results - Will complete a separate Informational Council Report
- High Voltage Transformer Bid Award
- Bond Financing of 4 CIP Transmission Projects ~ October/November to Align with procurement of Material
- RFP Switchgear Procurement Package
- Multiple system expansion contract awards
- Completion of solicitations and master agreements for critical services supporting existing infrastructure (power plants, substations, transmission and distribution.)
8 4
City Council
CATA CLARA CARE
Item #9: Silicon Valley Power
CI NIA Quarterly Update
1852
RTC 23-135
THE MISSION CIT
April 4, 2023
9 5