HomeMy WebLinkAboutAgenda Report - June 18, 1997 (93)A Q COUNCIL COMMUNICATION
OF LODI
AGENDA TITLE: Conduct Public Hearing for June 18, 1997, to receive Public comment on the Northern
California Power Agency Integrated Resource Plan (IRP) and approve IRP for
submittal.
MEETING DATE: June 18, 1997
SUBMITTED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council conduct a public hearing for the regularly scheduled
Council Meeting of June 18, 1997, to receive public input on the proposed
Integrated Resource Plan (IRP). After receipt of public comment, it is
recommended that the Council approve the IRP for submittal to the Western
Area Power Administration (Western).
BACKGROUND: This hearing is being held to meet the public involvement process portion of
the IRP as required by the Energy Policy Act of 1992 (EP Act) and the
Department of Energy, Energy Planning and Management Program
(Program). Receipt of public comment will follow a brief outline of the IRP.
As stated in the Program description, "The Program goal is to promote the efficient use of electrical energy by
Western's customers and to extend Western's long-term firm commitments in support of customer IRP's."
Western customers, such as the City of Lodi, must complete an IRP containing Two -Year and Five -Year Action
Plans. As a minimum, the City must submit or have submitted on its behalf an updated IRP every five years
and provide yearly IRP progress reports to Western. Additionally, each utility must conduct a public involvement
process that provides opportunity for public comments on information and recommendations contained in the
proposed IRP. Comments resulting from the public involvement process and a copy of the resolution approving
the City's IRP must accompany the IRP submittal to Western.
Lodi and the cities of Alameda, Biggs, Gridley, Healdsburg, Lompoc and Ukiah and the Plumas-Sierra Rural
Electric Cooperative are making a joint IRP filing through the Northern California Power Agency. The proposed
IRP contains the following sections:
Approved _
June 11. 1997
Page 2
Lodi City Council
June 18, 1997
NCPA Integrated Resource Plan (IRP)
I. Introduction
Il. Customer Surveys
lit. Load Forecast
IV. Resource Requirements and Description
V. DSM Analysis
VI. Least Cost Resource Plan
VII. Two- and Five -Year Action Plans
VIII. Monitoring Program for Two- and Five -Year Action Plans
IX. Environmental Impacts
X. Public Involvement Process
The IRP requirements of the EP Act are intended to help insure acquisition of least cost resources by Western's
customers and to insure efficient use of all resources in each customer's portfolio. At the time of the passage
of the EP Act, Lodi was completing acquisition of power resources through NCPA to meet its rapidly growing
demand. These resources, both plants and contracts, were intended to make the City self-sufficient in a time
of high alternate resource costs and severe limits on access to alternate bulk power markets.
Subsequently, City resource needs decreased due to customer self -generation and a general slowdown in
overall load growth. As a result, the City has sufficient electric power capacity resources to last into the next
century. Based on current forecasts, the City will not require additional capacity resources until the 2004 to 2007
time frame, at which time new capacity is expected to be provided from the emerging competitive generation
market.
With the progression of electric utility industry restructuring and the steep drop in market prices, a "no build"
policy is recommended for the foreseeable future.
Currently, NCPA and the Electric Utility Department are investigating possible power cost savings in the following
areas:
Non -renewal, renegotiation and/or termination of contracts which are no longer competitive
in the new energy market;
2. Reduction in operation of existing projects whenever market energy prices are lower than the
projects' variable fuel costs;
3. Retirement or sale of non -economic projects; and
4. Marketing of surplus resources.
FUNDING: Not applicable
Prepared by Jack Stone, Manager, Business Planning and Marketing
ANVIJS/Ist
c: City Attorney
A //� zi&
Alan N. Vallow
Electric Utility Director
June 11. 1997
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A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING NORTHERN CALIFORNIA POWER AGENCY
INTEGRATED RESOURCE PLAN (IRP) FOR SUBMITTAL
TO THE WESTERN AREA POWER ADMINISTRATION
RESOLVED, that the City Council of the City of Lodi does hereby approve the
Northern California Power Agency Integrated Resource Plan (IRP) for submittal to the
Western Area Power Administration.
Dated: June 18, 1997
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I hereby certify that Resolution No. 97-88 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held June 18, 1997, by the following
vote:
AYES: COUNCIL MEMBERS -
NOES: COUNCIL MEMBERS -
ABSENT: COUNCIL MEMBERS -
ABSTAIN: COUNCIL MEMBERS -
ALICE M. REIMCHE
Acting City Clerk
97-88