Board of Directors Meeting Thursday, June 15, :00 p.m. Customer Service Center, Rubicon Room

Transcription

1 Adopt rate resolution approving the Chief Executive Officer and General Manager s Report and Recommendation on Rates and Services dated March 16, 2017 Volumes 1 and 2 ( Report ), Errata No. 1 to the Report dated April 27, 2017, Errata No. 2 to the Report dated May 18, 2017, and Errata No. 3 to the Report dated May 25, Adopt rate resolution approving the Chief Executive Officer and General Manager s Report and Recommendation on Open Access Transmission Tariff dated March 16, 2017, Volumes 1 & 2 ( OATT Report ). Thursday, 6:00 p.m. Customer Service Center, Rubicon Room Powering forward. Together.

2 2017 Rate Process Summary Released Chief Executive Officer and General Manager s Report and Recommendation on Rates and Services on March 16, 2017 Proposed rate increase, proposed standard Time-of-Day and fixed rates, EAPR rate changes, Open Access Transmission Tariff (OATT) update, Miscellaneous Amendments to Rates, Rules & Regulations Released Errata with minor corrections to the Report No. 1 dated No. 2 dated No. 3 dated Hosted two public workshops at SMUD Headquarters Thursday, April 10:00 a.m. Thursday, May 6:00 p.m. Public Hearing at the SMUD Board June 6:00 p.m. Final decision on draft resolutions at SMUD Board meeting on 2

3 Proposed Changes to SMUD Rates Adjust residential, commercial, and agriculture rates A rate increase of 1% in 2018 and 1% in 2019 for commercial and agricultural customers A rate increase of 1.5% in 2018 for residential customers, no increase in 2019 o o Includes EAPR and MED Rate customers The average residential customer would see a monthly bill impact of $1.62 in 2018 New residential Time-of-Day rate and Fixed rate structure in 2019 Changes to the Energy Assistance Program Rate (EAPR) in 2019 Additional miscellaneous changes to rates, rules & regulations New Master Meter rate applying to mobile home parks and some multifamily housing units only Minor amendments to some tariff sheets 3

4 Proposed Residential Rate Changes Proposed Time-of-Day (5-8 p.m. Peak) Rate Season Period Price Date Types and Hours Summer (Jun 1- Sep 30) Non-Summer (Oct 1 - May 31) Peak $0.2835/kWh Weekdays between 5 p.m. and 8 p.m. Mid-Peak $0.1611/kWh Weekdays between noon and midnight except during the Peak hours Off-Peak $0.1166/kWh All other hours, including weekends and the holidays Peak $0.1338/kWh Weekdays between 5 p.m. and 8 p.m. Off-Peak $0.0969/kWh All other hours, including weekends and the holidays. Proposed Fixed Rate & Master Metered Rate Fixed Rate Master Metered Rate Summer Months (Jun 1 Sep 30) $0.1649/kwh $0.1310/kWh Non-Summer Months (Oct 1 May 31) $0.1032/kwh $0.1145/kWh Proposed Monthly Maximum EAPR Discounts 4

5 Proposed Changes to Open Access Transmission Tariff Update rates for ancillary services under schedules 1, 2, 3, 5, 6 and 10 Update wholesale transmission rates for Firm and Non-Firm Pointto-Point Transmission service under schedules 7 and 8 Add an hourly product in schedule 7, and a yearly product in schedule 8 Update scheduling timelines to be consistent with regional practices Standardize the $/MW nomenclature under Schedules 1 through 10 Clarify certain terms and conditions of the OATT Future changes under schedules 4 and 9 to participate in the CAISO Energy Imbalance Market beginning April

6 Public Outreach Process Direct Engagement Approximately 58 organizations received in-person presentations 215+ community & business leaders received s and/or phone call invitations to the roundtable events, and meeting requests 200+ neighborhood associations, 70+ churches and 60+ service groups received s, phone calls, and meeting requests 46 local elected officials were mailed info packets and sent meeting requests 10 state legislators were invited to informational meetings; 8 meetings held and info packets provided Integrated Communications Campaign Internal Communications: Daily updates, Employee brownbag sessions and ENNs Bi-lingual Capabilities: Rate materials produced in Spanish, Russian, Chinese, Hmong & Vietnamese, Bilingual speakers trained in all above languages PR, Marketing & Advertising: Printed newsletters to residential and commercial customers, Press release issued to all local media, Public notices published (3), Fact sheets, Bill inserts and Newsletter articles , Web & Digital: Dedicated pages on SMUD.org, E-newsletters, Videos, Social media postings Community Engagement: Informational roundtables (2), Community outreach meetings, Public workshops (2), Community partner briefings, Phone calls, s and info packets 6

7 Customer Feedback About Rate Proposal 40+ calls or s were received during the outreach period 57+ organizations provided feedback at community meetings Customer Responses Most customers seem to understand the rate increase portion of the proposal and the reasons behind it Customers were mostly neutral about the EAPR proposal, with some exceptions Customers are very interested in the potential impacts from Time of Day (TOD) Energy efficiency resources and information on how to manage your bill on TOD are well received; thermostat and NEST rebates well received Most community meetings were neutral or positive. One meeting was not positive (Advocates of Arden Arcade) Key Areas of Interest Timeline for the Time of Day implementation Impacts of TOD on solar and net energy metering customers Bill impacts for residential customers with TOD System Infrastructure Fixed Charge Bill comparisons between TOD rate and Fixed Rate Impact of all rate changes on EAPR and Med Rate customers 7

8 Alternative Recommendation 1 Alternative Recommendation: Includes three rate designs - Solar Time, Super Power, PG&E 2017 E-TOU-B-10% - which include different resource production time periods referred to in the proposal as Solar TOD and Carbon TOD (which includes Dinner TOD). Staff Assessment: This recommendation does not support SMUD s SD-2 policy for the following reasons: It does not move toward a pricing structure which more accurately reflects the cost of energy when it is used. None of the rate structures reflect SMUD s marginal cost, nor do they accurately reflect SMUD s cost to serve customers by season or time period. It does not equitably allocate costs among customers because there is no monthly fixed charge and uses a volumetric charge to recover all fixed costs. SMUD will monitor the impact that growing levels of solar generation have on hourly market prices and adjust TOD periods in future proceedings if necessary. Page 8

9 Alternative Recommendation 2 Alternative Recommendation: To comply with SMUD Board s SD-6 Safety policy, add an additional rate increase in addition to the GM's proposed rate increase, to pay for numerous actions related to the smart meter program, a new document scanner, and wireless effects of new third party installation of small cells or distributed antenna systems on SMUD utility poles in Sacramento. Staff Assessment: SMUD s smart meters are in compliance with Federal Communications Commission standards. Third party installations of small cells/distributed antenna systems must comply with federal and state requirements, which includes SMUD s obligation to allow pole attachments. Smart meter and small cell/distributed antennas comply with SD-6 Safety policy. SMUD already provides customers with smart meter and opt-out policy information. The recommended rate increase would increase rates more than necessary and would contravene SMUD s policy to recover costs related to residential smart-meter opt-out from customers that exercise this option. There is no basis to provide free or discounted energy as compensation for proximity to devices on utility poles. Page 9

10 Alternative Recommendation 3 Alternative Recommendation: The fixed rate that is 4% higher for most customers than TOD is arbitrary and unfair because it penalizes smart meter opt out customers. The fixed rate should cost no more than the time of day rate for most customers. Staff Assessment: The proposed Fixed Rate is intended to recover the added costs for serving customers that are most likely to opt out of the TOD rate. Specifically, those customers who use proportionally more energy on peak. The Fixed Rate is an available rate option to all residential customers, it was not specifically designed for smart meter opt out customers. Staff has no interval meter data to determine if opt out customers on average pay more or less. Page 10

11 End of Presentation Powering forward. Together.