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APPA Joint Action Workshop

APPA Joint Action Workshop. Tucson, AZ January 9, 2006. JOINT ACTION STILL RELEVANT, AFTER ALL THESE YEARS. Bill D. Carnahan Executive Director. What Do We Want to Accomplish Today?.

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APPA Joint Action Workshop

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  1. APPA Joint Action Workshop Tucson, AZ January 9, 2006 JOINT ACTION STILL RELEVANT, AFTER ALL THESE YEARS Bill D. Carnahan Executive Director

  2. What Do We Want to Accomplish Today? • Review What External Factors Influence Success • Review What Internal Factors Influence Success • Determine What We Have in Common

  3. Why Were Joint Action Agencies Created? To provide “collective” projects, activities and services that are more economical and efficient than the members can do individually

  4. SCPPA PROFILE

  5. VITAL STATISTICS • DIVERSITY • SIZE • Banning to LADWP • (10,000 Customers) (1.4 Million Customers) • Average - 50,000 to 100,000 Customers • (Burbank, Glendale, Pasadena, Anaheim, Riverside, Imperial Irrigation District) • LOCATION • Metropolitan – Coastal – Inland – Desert • LOAD CONTROL AREAS • CAL ISO – Anaheim, Riverside, Pasadena, Azusa, Banning, Colton, Vernon, Cerritos • LADWP – Burbank and Glendale • IMPERIAL IRRIGATION DISTRICT

  6. VITAL STATISTICS • DIVERSITY • RESOURCES • Local Generation – LADWP, Burbank, Glendale, Pasadena, Imperial Irrigation District • Local Peaking Generation – LADWP, Burbank, Glendale, Pasadena, Riverside, Anaheim, Vernon, Colton, Imperial Irrigation District • SCPPA-Financed Generation = 2,000 MW • SCPPA Aggregate Peak Member Load = 9,000 MW • SCPPA Aggregate Member Population = approx. 5 Million

  7. VITAL STATISTICS • GOVERNANCE – SCPPA Board composed of Member Utility General Managers (no elected officials on Board) • CAFETERIA-STYLE PROJECTS – Members pick projects to participate in • SMALL STAFF – Reliance on member’s-staff to supplement SCPPA staff • REVENUE BOND FINANCING – Power Supply Contracts providing security for bonds (to date have issued in excess of $6 Billion)

  8. Why Joint Action Agencies Were Created RESULTS: (early years) Financing participation in large central station generating plants (coal, nuclear and hydro), and, Financing and constructing interstate high voltage transmission lines to bring the power home, and, Provided some services

  9. TIMELINE OF SCPPA PROJECTS San Juan (Coal) Southern Trans. System Hoover Upgrade (Hydro) Mead/Phoenix Mead/Adelanto (Transmission) Palo Verde (Nuclear) YEARS

  10. TIMELINE OF SCPPA SERVICES PROJECT REPRESENTATION LOBBYING YEARS

  11. Why Joint Action Agencies Were Created RESULTS: (restructuring years) After passage of Restructuring Legislation (AB 1890) and direct access, members felt like they could become competitors. Played cards close to vest, not willing to share resource plans. Joint action projects and services suffered.

  12. TIMELINE OF SCPPA PROJECTS AB 1890 Years San Juan (Coal) Southern Trans. System Hoover Upgrade (Hydro) Mead/Phoenix Mead/Adelanto (Transmission) Palo Verde (Nuclear) YEARS

  13. TIMELINE OF SCPPA SERVICES AB 1890 Implementation Public Benefit Programs PROJECT REPRESENTATION LOBBYING YEARS

  14. Why Joint Action Agencies Were Created RESULTS: (after restructuring years) • MEMBERS REALIZED DIRECT ACCESS WAS NOT COMING • RALLIED AROUND “LOCAL CONTROL” AND VERTICAL INTEGRATION • RECOGNIZED WORKING TOGETHER WAS A GOOD THING • BEGAN PLANNING NEW GENERATION • EMBRACED RENEWABLES • INCREASED COOPERATION IN DELIVERY OF SERVICES • REINVIGORATED SCPPA AND JOINT ACTION CONCEPT

  15. SCPPA ORGANIZATION STRUCTURE Board of Directors Executive Director LADWP ACCTG Legal Project Development Finance SCPPA STAFF Public Benefits Resource Planning Customer Service T&D E&O

  16. PROJECT DEVELOPMENT Member City Council Approval SCPPA Board Approval Project Development Agreement | Steering Committee PROJECT

  17. TIMELINE OF SCPPA PROJECTS Renewables Gas Reserves Magnolia (Gas) San Juan (Coal) Southern Trans. System Hoover Upgrade (Hydro) Mead/Phoenix Mead/Adelanto (Transmission) Palo Verde (Nuclear) YEARS

  18. NATURAL GAS RESERVE ACQUISITION PURPOSE: Purchase natural gas reserves, in place, and transport gas to California border and then to the burner-tip • Fuel Portfolio Diversity (Approx. 15-20% of Total) • Less Price Volatility • Secure Supply • More Economical • Economies of Scale (SCPPA)

  19. FIRST NATURAL GAS ACQUISITION • July 2005 – Anschutz Pinedale Corp. • Pinedale Wyoming – Pinedale Anticline • $300 Million • 146 Bcfe of proved reserves – 1,250 operated gross acres with a 42.5% Working Interest • Ultra Petroleum – Operator • Largest acquisition of natural gas reserves by a U.S. governmental history • 40,000 MDF per day delivery (60,000 Goal) • 32 Operating Wells • Transition Agreement

  20. CURRENT RENEWABLES Goal: 20% Renewables by 2017 ISSUES: • 2010 Target ? • What Counts as a Renewable? • What if the Utility doesn’t need Resources? • Impact on Rates • Production Tax Credit Equivalent SCPPA MEMBERS – RENEWABLE PROGRAMS = $70 MILLION (5 YEARS) 69 PROJECTS ---- 588 MEGAWATTS (1 MW = 750 HOMES) WIND = 201 MW GEOTHERMAL = 190 MW LANDFILL GAS = 32 MW SMALL HYDRO = 97 MW BIO CONVERSION = 60 MW

  21. TIMELINE OF SCPPA SERVICES Ice Bear Benchmarking Joint Contracting Resource Planning Market Intelligence “Almost Anything” PROJECT REPRESENTATION LOBBYING YEARS

  22. FUTURE RENEWABLES • Currently Negotiating for: • 150 Megawatts of Geothermal • 475 Megawatts of Wind in California, Oregon, Wyoming, and Utah • 100 Megawatts of Solar • 15 Megawatts of Landfill Gas • Could be as high as 800 Megawatts WIND Contract and Ownership Options ($600 Million – Ownership) Transmission Construction (Upgrades and New) GEOTHERMAL

  23. KEYS TO SUCCESS • Look for Common Ground • Give Members the Spotlight • Don’t Compete With Member Staff • Never Say, “We Can’t” • Encourage Large Members to Help Small Ones • Treat All Members Equally

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