The URL can be used to link to this page

Home My WebLink AboutMinutes - December 6, 2011 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, DECEMBER 6, 2011 A. Roll Call by City Clerk An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, December 6, 2011, commencing at 7:00 a.m. Present: Council Member Hansen, Council Member Katzakian, Council Member Nakanishi, Mayor Pro Tempore Mounce, and Mayor Johnson Absent: None Also Present: City Manager Bartlam, City Attorney Schwabauer, and City Clerk Johl B. Topic(s) B-1 Status Report on Westside 60kV Power Line Project (EUD) Electric Utility Director Elizabeth Kirkley provided a PowerPoint presentation regarding the Westside 60kV Power Line Project. Specific topics of discussion included a status report on grid interconnection, capacity, reliability, transmission operating costs, aerial overview, PG&E and California Independent System Operator (CAISO) proposal, comparison of transmission costs, risk identification, project phases, and next steps. In response to Mayor Johnson, City Manager Bartlam stated the previous route study is complete and awaiting public review and now they are finishing the remainder of the environmental study. In response to Mayor Pro Tempore Mounce, Mr. Bartlam stated nothing has changed with respect to the actual route and it is the same as was previously presented to the Council. In response to Council Member Hansen, Ms. Kirkley stated PG&E would not necessarily need to upgrade if the City does its project because there would be enough capacity. In response to Council Member Hansen, Ms. Kirkley stated the City is not connected with the western grid. In response to Mayor Johnson, Ms. Kirkley stated the low- and high-voltage charges are determined and collected by CAISO and then sent to PG&E. In response to Council Member Katzakian, Mr. Bartlam and Ms. Kirkley stated Combustion Turbine ("CT") is serving some of the City's load, which is why less energy is needed from the grid. They stated CT is more expensive, however, and that is why it is not run all the time. In response to Council Member Hansen, Ms. Kirkley stated the new Lodi Energy Center will handle a significant portion of the City's base load and the remainder will be picked up by the geysers and hydro. In response to Mayor Pro Tempore Mounce, Consultant Mike Kellar stated if 230kV is built additional transmission costs on the Transmission Access Charge (TAC) forecast may be avoided. In response to Council Member Hansen, Mr. Kellar stated the drivers of high costs in the forecast are existing transmission costs and new transmission costs to interconnect renewables for Continued December 6, 2011 portfolio requirements. In response to Council Member Hansen, Mr. Kellar stated the TAC forecast chart is not definite and assumes cost projections including the mandates of AB 32. A brief discussion ensued between Mayor Pro Tempore Mounce and Mr. Bartlam regarding what needs to be built to meet renewable requirements and related projections remotely located which have no connection to the grid. In response to Council Member Nakanishi, Mr. Kellar stated based on the chart energy costs will likely rise by 30% due to the AB 32 mandates. Mr. Kellar stated today low and high voltage is fairly equal and represent $2.5 million per year on average with another $1 million in grid management. In response to Mayor Pro Tempore Mounce, Mr. Bartlam provided an overview of the planned route, stating the Harney Lane piece is along the southwestern City boundary. In response to Council Member Hansen, Mr. Bartlam stated the City cannot stack over the existing PG&E line because there has to be a separation between the lines. In response to Mayor Johnson, Mr. Bartlam stated the conversation with PG&E is ongoing although the benefit to PG&E would be new poles and an offload of some of its reliability concerns. In response to Council Member Hansen, Ms. Kirkley stated the City would need to pay for a 230kV upgrade for PG&E from the east. In response to Council Member Nakanishi, Mr. Bartlam stated the City would be paying for the difference between a 60kV and 230kV upgrade and the exact amount is unknown at this time. In response to Mayor Pro Tempore Mounce, Mr. Bartlam stated the westside concept is to bring in 60kV and not 230kV, which is a third or quarter of the cost. A brief discussion ensued between Council Member Hansen and Ms. Kirkley regarding the concept of behind the meter costs. In response to Mayor Johnson, Mr. Bartlam stated the savings projected by the new Lodi Energy Center coming on line are only relevant when it is running. In response to Mayor Pro Tempore Mounce, Ms. Kirkley stated the $800,000 for direct delivery savings is a real number for the new Lodi Energy Center and will take a year of running time to capture. In response to Council Member Hansen, Mr. Kellar stated the risk identification is a subjective opinion based on best available information at the time and includes project financing, land rights, reliability standards, interconnection to the ring bus, and environmental impacts. In response to Council Member Hansen, Mr. Bartlam stated there is only one privately -owned property in question with a single owner. In response to Council Member Hansen, Ms. Kirkley stated that, even though the City is only doing a 60kV project, the connection to the 230kV ring bus may trigger additional registration requirements. N Continued December 6, 2011 In response to Mayor Johnson, Mr. Kellar stated the risk identification list is a live list and additional risks will be identified and added to the list as they come forward while others may be cleared off the list. In response to Council Member Hansen, Mr. Bartlam stated the project would be permitted by a variety of agencies including the City, PG&E, Northern California Power Agency, and others. In response to Myrna Wetzel, Ms. Kirkley stated the studies will include both eastside and westside considerations. Mr. Bartlam stated the load is a combination of both existing users utilizing more energy and new users coming on line. C. Comments by Public on Non -Agenda Items None. D. Adjournment No action was taken by the City Council. The meeting was adjourned at 8:17 a.m. ATTEST: Randi Johl City Clerk AGENDA ITEM 130#1 CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Status Report on Westside 60 kV Power Line Project MEETING DATE: December 6, 2011 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: Receive presentation of the status report on Westside 60 kV Power Line Project. BACKGROUND INFORMATION: The Lodi Electric Utility Department has been investigating issues related to constructing a power line to the west with a 230 kV grid interconnection at the Northern California Power Agency's Combustion Turbine Project #2 and Lodi Energy Center facilities located next to the City's White Slough Water Pollution Control Facility. Staff has prepared a status report to provide the City Council as well as the community an update of this effort. The presentation also includes proposals staff has received from Pacific Gas and Electric Company and the California Independent System Operator. FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable. Elizabeth A. Kirkley Electric Utility Director EAK/Ist APPROVED: +I --___ t_ nradt Bartlam, City Manager WESTSIDE 60KV POWER LINE PROJECT Shirtsleeve Presentation to the Lodi City Council On December 6, 2011 1 -Dec -11 1 PURPOSE OF PRESENTATION ❑ Status Report on Grid Interconnection ■ Westside 60kV Power Line Project ❑ Fatal flaw technical studies ❑ Comprehensive environmental study ❑ Obtain land rights when appropriate ❑ System studies ❑ Articulate SWOT and compare to PG&E approach ■ PG&E/CAISO Eastside 60kV Upgrade Plans ❑ PG&E/CAISO preferred configuration ❑ Explore 230kV interconnection possibilities ❑ Articulate SWOT and compare to Westside approach 1 -Dec -11 2 EXISTING 60KV INTERCONNECTION ❑ Capacity ■ Grid interconnection limits load serving capacity to N 130 MW w/o Lodi CT, N 152 MW with CT running ■ Lodi all-time high peak @ 145 MW on July 25, 2006 (current peak @ 116 MW on July 5, 2011) ■ EU met with CAISO & PG&E on Nov. 14th re: their transmission capacity plans ❑ Reliability ■ 4 Reported "city-wide" outages in the past 7 years, the longest N2.4 hours ❑ Transmission Operating Costs ■ Currently N$6,000,000/year & increasing faster than inflation (caused by H.V. TAC) 1 -Dec -11 3 TRANSMISSION COSTS HIGH VOLT. TAC FORECAST Historical PG&E Area HV TAC ($/MWh) During 2001-2011 and Projected CAISO- Wide HV TAC ($/MWh) During 2012-2020 Based on the CPUC/E3 LTPP Evaluation Metric Calculator $18.00 ■ Reliability Projects (CAISO 2010-11 Transmission Plan) $16.00 E Renewable w/o Permit $14.00 M Renewable w/ Permit $12.00 M Existing/Base (IOU Transmission Cost Forecasts) s $10.00 U $ 8.00 2 $ 6.00 $4.00 $ 2.00 $0.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Year 1 -Dec -11 4 JVESTSIDE 6C 4ERIAL OVER' W Turner R d y ', (n) Westside 60kV Switching Station (with provisions for the future addition of distribution banks) r (n) DouL Circuit 60kV Pole Line USIVOINC IMRt J c� F Coq • k.' �� -•• ' .. - oc erd5`-'Q'E-VA[tai W Elm E. •e r:L{�� -S' \ nUq Trades %M atians _ ,':� ` the existing-6b#c-i.ines, �f ��: Lotli '110 3��:. W & substations to-aik,ommoda#�e�F.�s�. y �. p the new 230kV inAconnectior��.=;;•'. EHa-n ey Lril -Ham 230kV Line from LEG Ring Bus to White Slough Substation o ..Yh' T Xr—slang Rd (n) 23 /COky White Slough Substation Gti691e irc agcry Calc' 5116,2011 1993 36'0:'01 07 N 121`19'C3 50" W cicv 341t � yt 3;aGoo'Sh Eyc apt 38413 !t ASTSIDE 60KV UPGRAC :)G&E / CAISO PROPOSAI Upgrades Mkodificatlia to the 'ex[stg6'0kVm& Stations'tnmfn , � c+a W '. o'. *x he new ?-30kM. terconne r ' COMPARISON OF TRANSMISSION OP. COSTS High Voltage TAC (Now $6.50/MWHr - Huge forecasted increases) Low Voltage TAC (Now $5.50/MWHr - Inflation forecasted increases) Other CAISO Expenses LEC "Direct" Delivery (High Probability of captured savings) LEC ""Pooled" Delivery (Unknown probability of captured savings) TOTAL Transmission Costs (Per Year using 2010 Loads & Rates) $3,000,000 $2,500,000 $500,000 $0 $0 $6,000,000 $3,000,000 $0 $500,000 -$800,000 -$1,2001000 $2,700,000 (MAYBE $1,500,000 with pooled delivery) $3,000,000 $0 $500,000 $0 $0 $3,500,000 1 -Dec -11 7 RISK IDENTIFICATION WESTSIDE 60KV PROJECT 8 Project financing - tight credit markets could delay project implementation 4 Land rights for 60kV - inability to obtain land rights for 60kV double circuit pole line could be fatal to the project 1 NERC Reliability Standards - ownership of 230kV facilities may result in ""TO/TOP" WECC registration (additional personnel, equipment, and/or out -sources services may be required) 1 Interconnection to ring bus - NCPA could find technical reasons preventing interconnection to 230kV ring bus 1 Environmental impacts - CEQA study of entire project could find significant, unmitigated environmental impacts or unacceptable mitigation costs 1 -Dec -11 8 PROJECT PHASES -Dec-11 9 CUMULATIVE COST vs. PHASES OF PROJECT $30 FACILITIES $2s Engineering Z $20 - & Design I Regulatory $15 LO XnInerateng Project ject co-sts- Formulation *Training, spare parts, tools, specialized equipment $5 -compliance *Outsourced emergency response contractor r -I N M Ln -Dec-11 9 NEXT STEPS ❑ NCPA studies ■ Physical connection at STIG/LEC ring bus ■ Reliability analysis ❑ PG&E/CAISO studies ❑ SWOT comparison for Westside and Eastside grid interconnections ❑ Comprehensive environmental 1-D 10