Michael J. Bacich Assistant General Manager, Customer Relations Riverside Public Utilities

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1 City of Riverside, California U.S.A. Arts & Innovation Michael J. Bacich Assistant General Manager, Customer Relations Riverside Public Utilities July 2015

2 ` Incorporated in th largest in California Population: 316,619 Inland Southern California One hour east of Los Angeles 85 miles 2 City (220 km 2 ) 2

3 Riverside A University Community University of California, Riverside California Baptist University Riverside City College La Sierra University 3

4 Emerald City Status Green Community Challenge California Coolest City International Audubon Society ARRA - $3.5 Million STAR Pilot Community Economic Development Long Night of Arts and Innovation 4

5 Electric Utility Budget: ~ $400,000, ,358 Electric meters 463 Employees 2,340 Million kwh produced 20 Million kwh saved Peak demand: 612 MW Renewables requirements 5

6 2.2% 4% 2.5 % 6

7 Above Average Peak Temperatures 40 C 37 C 42 C 7

8 Long-Term Electric Load Patterns 8

9 New Electric System Peak 612 MW 16 th September

10 RPU Successes All Areas of the Business RP3 - Diamond level Water independence 40% renewable before 2020 S&P bond rating: AAA and AA 2,700 homes off the grid High customer satisfaction scores Award winning communication 10

11 RPU Program Portfolio Program Types Energy efficiency Renewable energy Water efficiency Education Grant programs Low Income Segments Residential Commercial Specialized Industries 11

12 How to Decide Focus RPU Customer Base Comm. 10% Residential 90% 12

13 Where to Focus RPU Customer Base RPU Base-Load Comm. 10% 35% Residential Residential 90% 65% Commercial 13

14 Mandates 1% Energy Savings Goal Over 10 Years Total kwh savings by all customer types 14

15 Mandates 1% Energy Savings Goal Over 10 Years 70% savings from Commercial 122,000 washers annually to equal commercial lighting 15

16 Community Participation and Empowerment Green Accountability Performance Committee Up to a 25 member committee Development with Committee Representatives from: City of Commissions and Boards Business Oversee City Staff and make Education recommendation to Council Building Outreach to other communities Neighborhood organizations Taskforces Sustainability organizations Spearhead specific issues Elected with official staff selection Bicycle advisory committee Continuous since 2005 Green Accountability Performance Committee Community Partners 16

17 Green Action Plan Clean & Green Task Force Becomes Green Accountability Performance (GAP) Committee Green Action Plan Used Sustainable Policy Statement 7 Over arching areas(energy - urban design) 38 Action Items Done or on target 17

18 Green Action Plan 2.0 Recognized by and partnered with the Department of Conservation Bottles and Cans program Monitored by the GAP committee Stretch Goals more flexible structure Eight Focus areas: Energy Water Waste reduction Transportation GHG emissions Urban nature Urban design Healthy communities 18

19 GAP 2.1 Long term planning Updates 2.0 Highlights partnerships Maintains - Eight Focus areas Green Action Plan 2.1 Tasks to be added/dropped as needed or completed 19

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21 Climate Action Plan City s baseline year (2007) GHG inventory is 3,024,066 MT of carbon dioxide equivalent (CO2e) 2020 Target is 2,224,908 MT CO 2 e per year (26.4% below 2007) 2035 Target is 1,542,274 MT CO 2 e per year (49% below 2007) In order to reduce GHG emissions and achieve established targets, the RRG-CAP contains Federal, State, regional local GHG reduction measures 21

22 Accomplishments More than 150 different items completed 20% Renewable 17 MW of Solar 165 million kilowatt hours saved since % increase in park to land ratio per 1,000 residents since 05 More than 23,000 acres of parks and open space Multiple Grade and Rail separations 40% increase in miles of bike lanes since 2007 Reusing City Tree waste for mulch for all residents More items available online in list form 22

23 Current Forecast: More Renewables Needed to Meet New 50% RPS Target 23

24 Proposed Strategy Acquire a sufficient amount of cost effective renewable projects that fill energy needs and generate bankable, excess-procurement RECs. Use these bankable RECs to meet the escalating 50% by 2030 RPS mandate during the next decade, at least until IPP is retired. 24

25 Banked Excess -Used to Satisfy Future Compliance Obligations 25

26 Solar and WRCOG s Loan Program Solar power and community Parks and Recreation Low income homes Senior/community centers Transportation centers Partnership with Western Riverside Council of Governments (WRCOG) Any property owner can participate Financing for energy/water efficiency Especially windows, A/C, PV 26

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28 Systems 1200 Projected PV Solar in Riverside 1136 KW AC Systems kw AC

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31 Environmental Best Practices Grease to Gas Saving over $1 million annually Riverside Transit Authority College students ride free Senior discounts Over 1,000,000 riders within 2 years 23,000,000 kwh/year US Department of Energy 31

32 Environmental Best Practices Ice Bear Thermal Energy Storage In-Pipe Hydropower Turbine Hydrogen Highway 89% of fleet to clean/alternative fuels 32

33 Environmental Best Practices 33

34 SustainableToolsforAssessingandRatingating The STAR Community Rating Systemis the first national framework and certification program for measuring community sustainability. 34

35 STAR Communities Network STAR Pilot Community Participating STAR Community 35

36 Certifications & Recognitions Certified 5-STAR Community (600+ points) Recognized as top tier achiever in national sustainability Certified 4-STAR Community ( points) Recognized for national excellence Certified 3-STAR Community ( points) Recognized for sustainability leadership Reporting STAR Community ( points) Participating STAR Community 36

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38 California s Clean Energy Goals Adopted ambitious environmental and energy policy goals under Governor Schwarzenegger Reduce statewide greenhouse gas (GHG) emissions to 1990 levels by % more by 2050 Provide 33%of our electricity in 2020from renewables 50%by

39 California Net Electricity Generation by Source (1998) 39

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41 California s Net Electricity Generation Comparison by Source between 1998 and 2014 U.S. EIA Data 41

42 Renewable Energy Trends Access to high-quality resources Excellent solar, wind and geothermal resources Access to low-cost natural gas Strong state policy support Very active developer market Complementary fleet of flexible natural gas and hydro resources Federal tax incentives and loan guarantees Steep decline in solar PV prices 42

43 Solar PV Prices Average U.S. PV System Prices over Time 43

44 CAISO Duck Curve 44

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46 Emerging technologies can help meet the challenges of the modern grid while meeting customer needs Challenge is integrating them into existing networks 46

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48 Key Findings Half are planning to replace retiring coal and nuclear power plants with gas-fired generation Nearly 60% of utilities are updating emergency response plans Utilities are working to provide consumers with resources to better manage energy consumption 48 Source: Black & Veatch Analysis

49 Future Resource Needs to Meet Challenges Increased regional coordination Make best use of flexibility in current market Renewable resource diversity Reduces over-generation and need for flexible resources Flexible loads Shifting loads from one time period to another Flexible Generation Need fast ramping and starts quickly Energy Storage Long-duration storage is important 49

50 Danke Sehr -Thank You! Michael J. Bacich Assistant General Manager, Customer Relations Riverside Public Utilities GreenRiverside.com BlueRiverside.com 50

51 Mandatory Emergency Drought Regulations Arts & Innovation

52 California s Drought California is experiencing an extreme water supply shortage Drought conditions covering all of the state and nearly 70% of the state is under extreme conditions. April 1, 2015 Snowpack was lowest ever recorded Some communities are already facing a 50 gallons per person per day restriction 52

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54 Lake Folsom June 1, 2015 New regulations are in effect 54

55 Origin of the Drought Emergency Regulations June 1, 2015 New regulations are in effect 55

56 Details of 2015 Executive Order Mandatory 25% reduction in water use - Statewide Areas with high per capita use achieve proportionally greater reductions Prohibit irrigation with potable water of turf medians 56

57 Details of 2015 Executive Order (cont d) Replace 50 million square feet of lawns Statewide (RPU completed nearly 2 million since July 2014) Statewide appliance rebate program for underserved communities 25 % restrictions on: Campuses Golf courses Cemeteries 57

58 Details of 2015 Executive Order (cont d) Prohibit irrigation with potable water outside of newly constructed homes and buildings that is not delivered by drip or micro-spray systems Direct water suppliers to develop rate structures and other pricing mechanisms including surcharges, fees and penalties to maximize water conservation SWRCB shall require water suppliers to provide monthly water usage, conservation and enforcement information 58

59 Highlights of the SWRCB Resolution (Resolution ) 0032) SWRCB implemented the Governor s Executive Order by: Extending and expanding current drought restrictions A 28% reduction goal was established for Riverside Enacting public street median restrictions Placing watering restrictions on newly constructed homes/buildings 59

60 RPU Response To Current Drought (Ongoing Educational and Outreach Programs) Updated BlueRiverside.com Developed back-of-bill informational items Acquired advertising Posted on social media Updated the RPU website Communication through radio and at special events Outreach program to local restaurants Color coded lawn sign program 60

61 Current Water Conservation Programs High Efficiency Toilets High Efficiency Clothes Washers Waterwise Landscaping Weather Based Irrigation Controllers Sprinkler Nozzles Artificial Turf Water Audits Direct Installation Programs 61

62 Danke Sehr -Thank You! Michael J. Bacich Assistant General Manager, Customer Relations Riverside Public Utilities GreenRiverside.com BlueRiverside.com 62