to the city light departmentclerk.ci.seattle.wa.us/~public/meetingrecords/2010/budget20100816… ·...
TRANSCRIPT
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INTRODUCTIONTo The
City Light Department
Presentation to the Budget CommitteeAugust 2010
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PRESENTATION OUTLINE
City Light at a Glance
- Physical Plant
- Budget and Organization
Trends
Benchmarks
Challenges
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Physical Plant
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At its most basic, City Light is charged with meeting the
electricity needs of its customers. To do this it
• Own and operates electricity generating plants
• Owns and operates an electricity delivery system
• Has long-term contracts to purchase electricity
• Continually trades electricity in the wholesale market
Although a City department in every respect, the revenues City Light
generates and the resources it owns can be used only for utility purposes
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Function
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Transmission/Substations Distribution System Customer End SystemsGeneration
Substation Control System
Substation Control System
Distribution Network
MTR
MTR
MTR
7 dams
26 powerhouse
transformers
660 Circuit Miles
of Transmission
(20 miles UG)
2,400 mi. Distribution• 450 mi UG
• 160 mi UG Network
53,720 Transformers
170 Electric Feeders
108,000 Poles
84,000 Street Lights
Next slide …
Vertically Integrated Utility
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Transmission/Substations Distribution System Customer End SystemsGeneration
Substation Control System
Substation Control System
Distribution Network
MTR
MTR
MTR
7 dams
26 powerhouse
transformers
660 Circuit Miles
of Transmission
(20 miles UG)
2,400 mi. Distribution• 450 mi UG
• 160 mi UG Network
53,720 Transformers
170 Electric Feeders
108,000 Poles
84,000 Street Lights
Next slide …
Vertically Integrated Utility
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$630 M $3,400 M $60 M$3,000 M
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Service Territory• 130-square-mile service
territory
• Seattle & seven franchise areas
• 15 major substations
• Service area population: 750,000
• 400,000 meters – 80% in Seattle
• 10th largest Public Power utility in the US and largest in the Northwest (by customers served)
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Generation Resources
Owned Hydro Plants
Long-term Hydro Contract
Treaty Rights From British Columbia
Long-term Green Power Contracts
Snake River
Boise River
Spokane River
Pend Oreille River
Columbia River
Skagit River
Cedar
River
Skagit
Projects
Newhalem
South Fork Tolt
Cedar Falls
Priest
Rapids
GCPHA
Projects
Lucky
Peak
Boundary
High Ross (Canada)
Stateline WindColumbia Ridge
Biomass
Bonneville Power
Administration (BPA) includes multiple projects
across the Pacific
Northwest
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Generation & DemandUnder Average Hydro Conditions
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Role of Wholesale Market
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Budget & Organization
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Organizational StructureJorge Carrasco
Chief of Staff
Vacant
Customer Service & Energy Delivery
Phillip West
Financial Service
Phillip Leiber
Power Supply & Environ’l Affairs
Steve Kern
Human Resources
DaVonna Johnson
Internal Compliance
Mike Haynes
Govt. & Legislative Affairs
Customer Care Finance Integrated Resource Planning
Talent Acquisition Security & Emergency Mgmt
Communications & Public Affairs
Energy Delivery (Operations)
Accounting Power Operations & Marketing
Labor Relations
Energy Delivery (Engineering)
Risk Mgmt & Strategic Planning
Conservation Resources
Safety
Asset Management Corporate Performance
Utility Support Services
Employee Relations
System Operations Information Technology
Power Contracts & Resource Acq’n
Environmental Affairs
Power Production
O&M: $3.1M $85.5M $28.9M $512.2M $6.5M $1.8M CIP: - $109.1M $6.4M $46.2M - $3.0M FTE: 20 1,068 205 475 58 15
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2010 Adopted Budget: USESTotal = $1.1 Billion; Amounts shown in Millions
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** Includes short-term purchases,
excludes costs of owned generation.
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2010 Adopted Budget: SOURCESTotal = $1.1 Billion; Amounts shown in Millions
**Gross Revenues
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2010-2015 Six-Year CIP: USESTotal = 1.27 Billion; Amounts shown in Millions
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2010-2015 Six-Year CIP: SOURCESTotal = $1.2 Billion; Amounts shown in Millions
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Controllable O&MTotal = $159.6 Million; Amounts shown in Millions
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Trends
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Recent Rate History
Energy Crisis, 58%
Pass-through of
lower BPA costs
8.4% reduction
13.8% increase
Rates expressed in 2009 dollars
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Recent Load History
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Debt Outstanding
Energy Crisis
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Total Expenditures
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Administrative Costs
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58% Inc. since 2000
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Authorized FTE
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Note: Changes are exaggerated by vertical scale
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T&D Overtime Costs
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Benchmarks
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Rate ComparisonCents/kilowatt-hour
Includes 4.5%
Surcharge
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Bill Comparison
Large Biotech
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Bill Comparison
Box-store/Office Tower
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Bill Comparison
Medium Industrial
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Bill Comparison
Small Manufacturing
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T&D SystemExpense Per Customer
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T&D SystemExpense Per MWh of Load
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Challenges
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T&D Issues• Aging Distribution Infrastructure
• External Drivers: Utility Relocations & Regional
Transmission Issues
• System Enhancement
Generation Issues• Resource Acquisition Costs
• Boundary Relicensing Cost
Utility Wide: Aging workforce
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Challenges
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Aging InfrastructurePoles, For Example
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External Cost Drivers
Total = $173 M
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System Enhancements
System Automation (SCADA)
Smart Meters
• 400,000+ Meters; ~ 40% over 30 years old
• Replacement cost > $100 million
Smart Grid
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T&D Issues• Aging Distribution Infrastructure
• External Drivers: Utility Relocations & Regional
Transmission Issues
• System Enhancement
Generation Issues• Resource Acquisition Costs
• Boundary Relicensing Cost
Utility Wide: Aging workforce
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Challenges
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Boundary Dam License
Total Generating
Capacity: 1,070 MW
Produces around 27% of
City Light’s power
Critical to Meeting Daily
Load Peaks
Relicense Expense Will
Likely Double $/MWh
From the Plant
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Resource Acquisition
380,000 MWh of Renewable Energy or
Credits by 2016
$/MWh Typically 3-4 Times City Light’s
Current Average Power Costs
Will Add ~ 3% to Base Rates
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T&D Issues• Aging Distribution Infrastructure
• External Drivers: Utility Relocations & Regional
Transmission Issues
• System Enhancement
Generation Issues• Resource Acquisition Costs
• Boundary Relicensing Cost
Utility Wide: Aging workforce42
Challenges
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Workforce% of Workforce Eligible to Retire
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Questions?