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Home My WebLink AboutMinutes - June 4, 2013 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, JUNE 4, 2013 A. Roll Call by City Clerk An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, June 4, 2013, commencing at 7:00 a.m. Present: Council Member Hansen, Council Member Johnson, Mayor Pro Tempore Katzakian, and Mayor Nakanishi Absent: Council Member Mounce Also Present: City Manager Bartlam, City Attorney Schwabauer, and City Clerk Johl B. Topic(s) B-1 Receive Status Report on 230kV Interconnection Project (EUD) City Manager Bartlam briefly introduced the subject matter of the proposed 230kV interconnection project. Electric Utility Director Elizabeth Kirkley provided a PowerPoint presentation regarding the 230kV Interconnection Project. Specific topics of discussion included the existing 60kV grid inter -tie reliability and capacity, CAISO (California Independent System Operator) TAC (Transmission Access Charges) forecast, PG&E area study, CAISO Board approval of Lodi project and reliability projects, 230kV development project, industrial substation expansion, project time line and team, and the next steps for the project. In response to Council Member Johnson, Ms. Kirkley stated staff asked not to include the CT (combustion turbine) in Lodi in the study so that additional considerations to bring service into town would not be included. In response to Council Member Hansen, Ms. Kirkley stated both STIG (steam injected gas turbine) plants are included in the study. In response to Mayor Pro Tempore Katzakian, Ms. Kirkley stated the utility pays both TAC charges because it is using both the high and low grids. In response to Mayor Nakanishi, Ms. Kirkley stated PG&E should use the 130MW figure instead of 152MW in the study so that it can see the need for capacity. In response to Mayor Nakanishi, Ms. Kirkley stated without renewables the light and dark green portions of the graph on the forecast slide would be eliminated. In response to Council Member Hansen, Consultant Mike Keller stated 85% of the load shown on the Lockeford-Lodi Area Study map is service for the City. In response to Council Member Hansen, Mr. Keller stated PG&E is no longer fighting building the project that was mandated upon it although various decisions pertaining to the actual route, environmental studies, and right-of-way access have yet to be made. In response to Council Member Hansen, Ms. Kirkley stated the PG&E project increases reliability but other than that it is a separate issue with respect to the proposed line from the west, which Continued June 4, 2013 may still have some benefit and will be explored in the future. In response to Council Member Hansen, Mr. Bartlam confirmed that PG&E may need to pay the City for use of the land shown on the industrial substation expansion slide. In response to Council Member Johnson, Mr. Bartlam stated approximately half of the property would still be available after 230kV service completion. In response to Council Member Hansen, Mr. Keller stated two transformers will need to be procured and there is approximately a one-year lead time on them. In response to Council Member Hansen and Mayor Pro Tempore Katzakian, Mr. Bartlam confirmed that the City will need to upgrade its portion of the substation, which includes the two new transformers, prior to PG&E upgrading its portion, which includes the switching station. In response to Council Member Hansen, Mr. Bartlam stated the City will need to manage and oversee the PG&E project with PG&E and through CAISO to ensure scheduling and consistency as it pertains to geography, property owner consultation, and environmental studies. In response to Council Member Johnson, Ms. Kirkley and Mr. Bartlam confirmed that the $20 million cost should see the project through completion in 2017, the approximate estimated cost of a line to the west is $40 million, and PG&E's project includes both a double line and a 230kV connection instead of a 60kV connection. Mr. Bartlam stated a line to the west in the future may be beneficial because the City may pay less voltage charges but the proposed 230kV project before the Council currently remains the priority project because it provides both reliability and capacity at a shared cost. In response to Mayor Pro Tempore Katzakian, Mr. Bartlam confirmed that the substation with the transformers is approximately $15 million of the $20 million total project cost. In response to Mayor Pro Tempore Katzakian, Mr. Bartlam stated for comparable purposes General Mills uses 3MW. In response to Mayor Nakanishi, Mr. Keller stated the CAISO operates PG&E -owned transmission lines throughout the State. Mr. Keller stated PG&E is the largest owner and he will provide the relevant information as to who owns the transmission lines percentage wise throughout the State. In response to Ed Miller, Mr. Bartlam stated the substation is located at Thurman Street and Guild Avenue east of Highway 99 and payback on the proposed project with cost and finance charges is approximately ten years. C. Comments by Public on Non-Aaenda Items - None D. Adjournment No action was taken by the City Council. The meeting was adjourned at 8:00 a.m. ATTEST: Randi Johl City Clerk N AGENDA ITEM F) I CITY OF LODI ,. COUNCIL COMMUNICATION TM AGENDA TITLE: Receive Status Report on 230 kV Interconnection Project MEETING DATE: PREPARED BY: June 4, 2013 Electric Utility Director RECOMMENDED ACTION: Receive presentation of the status report on the 230 kV Interconnection Project. BACKGROUND INFORMATION: At a City Council Shirtsleeve Session held on December 6, 2011 the Electric Utility staff provided a status report regarding the City's electric transmission grid intertie. The presentation also included proposals staff had received from Pacific Gas and Electric Company and the California Independent System Operator (CAISO). A number of meetings have been held since that time as part of the CAISO's 2012-2013 transmission planning process. This presentation will apprise the Council of the outcome of this process as well as outline the next steps the Electric Utility will be taking regarding the City's transmission grid intertie. FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable. za eth A. irkley Electric Utility Director EAK/Ist FAIaa:Z9lTA:I a Bartlam, City Manager 230 kV Interconnection Project 230 kV Interconnection o Existing 60 kV Grid Intertie o Transmission Access Charges (TAC) o PG&E Lockeford-Lodi Area Study o CAISO Board Approved Projects 0 230 kV Project Timeline 0 230 kV Project Team o Next Steps — FY 2013/14 Existing 60 kV Grid Intertie o Reliability • 4 reported "city-wide" outages in past 7 years, the longest ~2.4 hours o Capacity • ~130 MW w/o NCPA's Lodi CT • ~152 MW with CT running o Transmission Access Charges (TAC) • Low Voltage TAC $2.5 M annually • High Voltage TAC $3 M annually Wel M111 130 120 110 f n A�* 0 Le Lodi Summer Peak rl IrT 1 r1 Insufficient capacity: 130 MW w/o NCPA Lodi 25 MW CT "003 X004 2005 2006 2007 -"008 2009 20201 Calendar Year A I RISE Film WOTH $18.00 $16.00 $14.00 $12.00 s $1o.ao V Q $g-00 x $6.00 S4.M $2-00 $0.00 Historical PG&E Area HV TAC ($/MWh) During 2001-2011 and Projected CAISO- Wide HV TAC ($/MWh) During 2012-2020 Based on the CPUC/E3 LTPP Evaluation Metric Calculator Reliability Projects (CAISO 2010-11 Transmission Plan) ■ Renewable w/o Permit a Renewable w/ Permit M Existing/Base (IOU Tran SEN1111 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Year 7G&E Lockeford-Lod 230 kV System Rio Oso New Line 18 miles 230 kV (CAISO �)r•------- 77 Approved) Tmiles miles Atlantic 18 miles 65 11 miles 29 miles Gold Hill Lockeford 47 miles Lodi Stig 49 miles Lockeford 2 miles Area Eight Mile r� NO 7 miles 27 miles Stagg Area Mosher 24 miles ■ < Stagg 38 miles r z z 24 miles 14 miles Tesla Weber fX ra 12 miles Bellota Brighton 42 miles %&a 66 kV System Stagg 191 0] k Line Lodi • Ketora-LOCII • LodeI190 - Lodi W kV Line t�Colony Rio Oso H.O. n, U. Wi r ery SYS147 SqY i g—i Lockeford H.O. LD -VON - LMI 4�4 W Lir* NO.2 Victor U,dw W - IrdmhlN 101,V Lint Sw 97 N.Q. Industrial, Lodi Load ".a L2:k4 gyp- 001 60 kV Lrt,e Na 3 Brighton �+ Mettler $$ o Stagg Nb Uri (CA SC APP�d) N.O � C _ _ y i SW 75la§ - 0 Be l lota� 1 - � SW �} SV167 1 Waterloo 7 0-0 �n SI 111 9a kV Line Mosher Hammer West 57 L e IJ W.QCherokee Co-Uretry UOP Surniden Club Oak Wire Park 61 Weber ml 6" ism morel Fa we Fire Protect for Lod 2D72 -2D73 ISO Transmission Plan SIT'Nae, March 20, 2373 Figure 62A-3: Proposed Loaeford-Lodi Area 230 kV Development mrrrr.r..� r dDw i.rr .c .c ry 07 1-7 LmuF II Lwcbbry Lbd vie Irld�tritl �*'+r .c EW mile Lodi Load R'1 mbrwm yr--I�nM'li`IlaS i�iF n4 r.t r � Nirvrrl'�r � Went w Cam UOF *�,rrrid�err Club Oa1k E oinrl "k" 21E.`ism :rON, we gnnrovec Rel-labill-tv Prole Table 2 — S umm urs} cf Needed Rel iability Driven Tran smission Projects i n th e ISO 2D 12-2013 Transmission Plan Srviae Tentkwy Number of Projects Cod Pacific Gas & Electric (PG&E) 31 $1,168 M Southern California Edison Co_ 1 $75 M (SCE) Sart' Diego Gas & Elegy Co- 4 100 M (SDG&E) Valley Electric Association 0 0 (VEA) TOM 36 $1,343 M Lockeford-Lodi Area 230 kV Development Project o Mitigate • NERC Category B & C overloads • NERC Category B voltage deviations • NERC Category C low voltages o $80-105 M o In-service 5/31/2017 o Solve Lodi's capacity (200 MW) & reliability constraints o Lodi cost -$20 M Industrial Substation Expansion • . i - _ . s.. 1• Street Ac j +•,— sir r.r{ -W12.1'.'-: 15'5 76." 4_ D kV Project Timeline Su"w,Mard117,2013 I 1 New Industrial 230f6OkV Substation O ice[ h me Mwl FMM ]dli ipls U%F@M Qi A} 4i 41 pi �# 4i OI ipVd ipft iptF At fp #� 4� At �# 4i W Ot fG pi q/ 1 PmfedDM&PNEIA S CWWrLA.'n 0=13 IZOUM14 *MW 2 Fie DOOp Mx"W 119r;g15 WMM15 B" 3 qM & BM POWff T1a116fb11 M +1"M15 930M15 laid 4 F WndaSk eF4uaTea5rMMM 10t M5 12f3WM16 3Ud 5 6L6kffl IF W M 1b5 80=15 1FF121716 1284 6 Bid 8,WWd PMID MkMt&OWdad 2=16 Ar2VD16 B" 7 Cadet Now 230EUV SubsbOm 5=16 12MM15 17Sd F7 Test 8 SUS tldr11717 341121717 65tl 9 Omgtm New 23NOWSUbMabin W3=17 40 017 IM 10 Caiad Close -M 4=17 540r1017 65tl LIM fi JWW CPM EW NA9CM kL29G-GIW V-9M5Ti1TXWVW Page 1 D kV Project Te Tuesdzv, April 23, 2013 Lodi 2 DkV - Project Team ------------------ No Cr1YCOUNCIL------------------; r + I I RISK OVERSWHT I COSHSTTFf I I � I I 1 I I I CITY HAFi4GER � Rad Baum I 1 I I � I iPROJEL—r SPONSOR I COIHHINCATIOfIS � o�em brdeY I I l I I � l MRANCIAL ENWOMMHERTAL 1 ENGIHEEFM*G LEGAL Juctm Ars JM MMUMEEBMA S6em sdrraba ff RSR tilaagW Mae schwaLaff I I � l 5 � -------------- _____rte EIMMEHUMB CLMIOE MRAN CULL EMM"NERTAL CMSULTAMI LEGAL AOVIS R I I OMSULTAMI orw�µ oyeRVA" I rd f�r�eMy Enrtrrnrti.l eenam�peK seas +tea + F+oae PIU}JECT SHE M 4W-same—M lie Ifs ewia Cutrrri ke Cui�dkn swYrt EPPInrtrrnrnd R Crloereer �I yr d ` rurnaawwr�, Reeurnrti inrruenie opa orar RaaeYuu` Page 1 Next Steps - FY 2013/14 o Lodi Project Team Kick-off Meeting o City Council approval PSAs • Project Subject Matter Expert • Engineering Consultant • Outside Legal Counsel • Financial Advisor • Environmental Consultant