10/10/2023 Item #8
City Council
SATE CARA CRE Item #8: Silicon Power
Quarterly Update
1852 RTC 23-1159
THE MISSION CIN
October 10, 2023
1 - SILICON
VALLEY
POWER
CITY OF SANTA CLARA
Agenda
• Background and Load Growth
- Actions Taken to Date
- Load Growth Drivers
- Load Growth and Reliability Projects
• Current Status of Major Projects
• Current Load Plan and Additional Power Requests
• Development Projects and Power Constraints
• Residential and Commercial Rates (question per last quarterly report)
2 POST MEETING MATERIAL
1 10/10/2023 Item #8
SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
Background
• Staff determined there was a growth
need in late 2019 as part of an SVP
Strategic Planning Session
• Prioritized Growth Plan as an SVP
Strategic Priority
- Also prioritized proactive maintenance
• Needs for both SVP Local System and
Transmission System
• Peak limit approximately 750 MW
- At the time planning for a 1000+ MW
system
• Some delays due to Covid-19
3 SILICON
VALLEY
POWER.
BUSANA LARA
Load Growth Drivers
Data Centers and Commercial & Residential Development Drive Load Growth • Tasman East Specific Plan, Patrick Henry Drive Specific Plan, Related Santa Clara • City Council Approved Substation Agreements (2019 to 2023) - Parker Substation Expansion - completed
- Oaks Junction - completed
- San Tomas Junction - final design, award t-line, data center under construction - Esperanca Substation - design phase
- Stender Way Junction - final design, data center under construction - Laurelwood Substation - design phase, data center w/ 12kV service - Freedom Circle Junction - construction, award t-line, data center w/ 12kV service - Memorex Junction - award t-line, data center under construction phase • Upcoming Substation Agreements
- Juliette Substation Expansion
- Martin Ave Junction
- Freedom Circle Junction (Phase 2 of 2) need HVDC line before 2028 - Democracy Substation (56 MW) firm capacity (N-1, one transformer) 4 2
10/10/2023 Item #8
& SILICON
7 VALLEY
POWER.
CITY OF SANTA CLARA
Load Growth and Reliability Projects
• Load Growth is Happening - New Peak of 694 MW on September 6th, 2022 (system capacity 750MW per CAISO Transmission Planning Process 23/24 system model)
• Even with unusually cool summer, loads have continued to grow • Two Multi-Phased Activities
- SVP local projects and CAISO Transmission Projects
• SVP Local Projects - Finished construction of South Loop Project, Approved Growth Plan, Approved New Load Development Fees, Approved Master Consultant Contracts, Approved Program Management Contract, Approved Kifer Battery Storage Project, Homestead Substation • Work is Underway
5 * SUACON
VALLEY
POWER.
CITY OF SANTA CLARA
Highlights of Council Actions
• October 13, 2020 - Master Service Agreements with several engineering consultant firms - updated on May 3, 2022, October 4, 2022, and July 18, 2023 • April 6, 2021 - Staff provided a comprehensive review to the City Council of upcoming load growth and capital projects as part of the SVP Quarterly Report. • September 28, 2021 - Council accepted Silicon Valley Power (SVP) Three-Year System Growth Plan Strategy
• April 5, 2022 - Updated Connection and Load Development Fee. The fees were updated for FY 2023/24 on April 18, 2023.
• November 15, 2022 - Council accepted SVP's System Expansion Plan for the California Independent Operator's (CAISO) Transmission Planning Process (TPP) • On May 9, 2023 - Council adopted a Resolution regarding the City's intent to issue tax- exempt electric system bonds and updated on 7/13/2021
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10/10/2023 Item #8
Electric Utility Capital Projects
CAPITAL PROJECT 2023 2024 2025 2026 2027 2028 2029
CAISO HVDC Transmission
Northern Receiving Station (NRS)
Kifer Receiving Station (KRS)
Scott Receiving Station
NRS/KRS 115kV Transmission
60kV Transmission Projects
Freedom Circle Substation CAPITAL PROJECT DRIVER
San Tomas Substation I SYSTEM EXPANSION
Memorex Substation DATA CENTER
_ARGE DEVELOPMENT
Stender Way Substation RELIABILITY
Bowers Avenue Substation
Laurelwood Substation
Esperanca Substation
Martin Avenue Substation
Juliette Substation Expansion
Democracy Substation
Kifer 50MW Battery Storage
Homestead Substation
7 SILICON
VALLEY
POWER.
COSSANTA CLARA
SVP Receiving Station Upgrades
• Northern Receiving Station (NRS):
NORTHERN
RECEIVING
STATION
(NRS)
switches and system protection improvements.
• Mission College
• 30% design is underway
101 NORTH SANTAN
• Recommendation to purchase Large Transformers October 2023 SCOTT
• Scott and Kifer Receiving Stations (SRS & KRS): *RECEIVING
STATION
• Replaces end of life infrastructure and increases capacity (SRS) ®KIFER • Full Rebuild - New 60kV/115kV Switchgear, control rooms, RECEIVING transformers, circuit breakers, disconnecting earthing switches, cable STATION (KRS)
sealing, relocation of 6okV and 115kV transmission lines associated with each substation.
• Value engineering underway Santa
Clara
• Recommendation to purchase Large Transformers October 2023 8 4
10/10/2023 Item #8
SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
115kV Transmission Line
Northern to Kifer Receiving Station
¡REA NORTHERN
• Project Scope: Construct a new 115kV transmission OLen line between Northern Receiving Station and Kifer
Receiving Station. The line will be designed to the
© Mission College
higher 230 kV standards and energized at 115 kV.
101 NORTH SANTA
CLARA
• Route Analysis Report has been prepared
• Verification of route feasibility will be performed by SCOTT A ,A
KIFER
potholing for buried utilities prior to a final route
recommendation. LEGEND
Alternative 1
• Upcoming Council Discussion • Alternative 2
- Alternative 3
A Receiving
Station
→ SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
Approved Transmission
CAISO 2021/22 Transmission Planning Process Process
6/01/20
11/3/30
12/17/20 Started meeting with PG&E regarding additional project:
1/25/21 CEC adopts new SVP load forecast
3/11/21 SVP presents to AlSO oady Plan
3/24/21
3/31/21
8/3/21 CAISO posts preliminary reliability study results 9/15/21
9/27/21
1/31/22
3/23/22
4/1/22
2021-2022
3/7/23 CAISO selected LS Power Grid High Voltage Direct TRANSMISSION PLAN Current Line from Newark 230kV to SVP's Northern a Calfonio 5O Receiving Station Say 11. 2003
10 5
10/10/2023 Item #8
comes fart
CAISO Transmission Line from
PG&E Newark Station to SVP
Northern Receiving Station
• LS Power Project scope:
• Two High Voltage Direct Current (HVDC)
Terminals,
• +320 kV HVDC underground and overhead
transmission line between the terminals
(preliminary preferred route is ~8 miles)
• 230 kV interconnection at each station Legend
• Target in-service date by mid 2028 Existing Substation Preliminary New Project Terminal
• Monthly Project Coordination Meetings Preliminary Preferred Underground Cable Route (230kV HVAC)
• Future Interconnection Agreement between Preliminary Preferred Overhead Transmission Line Route (230kV
LS Power and SVP for Council Action. HVAC)
Preliminary Preferred Underground
* Cable Route (320kV HVDC)
Preliminary Preferred Overhead
= Transmission Line Route (320kV
HVDC)
11 Any ideas for SILICON
VALLEY
pictures POWER.
CITY OF SANTA CLARA
Additional Load Growth
• We have 13 large projects entitled or under
construction - that gets us to approximately
SVP Transmissien Orenitw
1,200 MW
Can't currently serve all large Data Centers who
would like to be in Santa Clara =°
- 7 additional projects have completed System
Impact Studies (242 MW)
- 5 additional projects are interested in
completing System Impact Studies (162
MW) 2---
- 3 additional projects have inquired and are
yet to be studied
• How much growth is feasible?????
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10/10/2023 Item #8
* VALEN VALLEY
POWER.
CITY OF SANTA CLARA
Additional Power
Technology MW Projected Contract Status
• The market prices for
Online Date
Renewable Projects are
Wind 50 2025 Executed**
increasing due to
Wind 300 2026 Executed**
construction delays
Solar / BESS 600 / 350 Existing Preliminary Investigation • Two projects under Solar 50 2026 Preliminary Investigation contract are requesting Solar / BESS 100 / 100 2026 Preliminary Investigation price renegotiation Solar 100 2026 Preliminary Investigation • Supply Chain, Inflation, Solar 100 2027 Preliminary Investigation Interconnection, Permitting Delays, and Cost of
Solar 137 2029 In Negotiation
Capital are driving up
project costs nearly 50%
13 MA SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
Funding and Rates
• Combination of Rates and Load Residential
Commercial
6%
2%
Development Fee
• Load Development fee was increased up to Muna%
160%
• $550 Million Retail Sales Revenues
- Residential $33 million
• Sales expected to double in the next 10 years
• Lowest rates of any utility in the State with
more than 10,000 meters
• Like most other utilities higher rate Customer Mix - Retail Sales increases will be needed over the next few
years
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10/10/2023 Item #8
SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
Rates and Customer Base
• Reasons for rate increases are affecting all utilities - Transmission Access Charges
- Power and Natural Gas commodities are higher
- Power Purchase Agreements
- Natural Gas Commodity
- Higher costs of Materials and Equipment and longer procurement - Recovery from Historic Natural Gas prices last year
• Positives of having a large customer base
- Major capital costs are spread through all customers (example - residential customers are only responsible for 2% of the cost to rebuild SRS and KRS) - Allowed us to construct DVR and Gianera which provide a net positive in power prices - Has allowed us to have large ownership of major NCPA projects such as the Geothermal Energy and Lodi Energy Center which helps stabilize rates - Allowed us to "go after" large PPA's which results in better prices 15 SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
Upcoming Items
• Consider rate increase December 5, 2023
• Next 6 months highlights
- High Voltage Transformer Bid Award (Tonight)
- Bond Financing of 4 CIP Transmission Projects ~ Mid 2024 - Multiple System Expansion Contract Awards
- Completion of solicitations and master agreements for critical services supporting existing infrastructure (powerplants, substations, transmission and distribution).
- Integrated Resources Plan (IRP)
- Launch of commercial customer solar rebate
- Many additional items.......
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10/10/2023 Item #8
City Council
SITA CLARA CARE
Item #8: Silicon Power
Quarterly Update
1852 RTC 23-1159
THE MISSION CIT 3000000000
October 10, 2023
17