The board of directors of California public power utility Truckee Donner Public Utility District on Oct. 18 received a presentation from HDR Consultants on an Electric Costs of Service Analysis.
The analysis addresses rate recommendations to cover costs, and pilot rate options for the board to consider.
TDPUD charges customers only for the cost of the services that they demand.
“TDPUD’s electric and water utilities operate in dynamic environments which have seen increasing cost pressures and market volatility over the past few years,” it said. This includes increases in supply chain costs, energy market volatility, inflation, and unfunded government mandates.
TDPUD’s staff and board “are working hard to balance service reliability, environmental sustainability, and customer affordability,” it said.
HDR Consultants presented some new rate tools for TDPUD’s board to consider for adoption, including Time of Use, commercial Electric Vehicle charging, and a clean energy rate.
TDPUD is a winter/weekend/nighttime peaking electric utility which peaks from 4 to 9 p.m. daily. This customer demand profile dictates what kind of electricity TDPUD needs to buy, and electricity purchased during peak times is almost always more expensive and not clean, it said.
“While conservation and energy efficiency are very important, customers also can change their behavior and use electricity at off-peak times, when possible. A pilot TOU rate, which would be voluntary for customers who choose to participate, provides a peak rate that reflects the higher costs during that period and a reduced rate for the lower costs during the off-peak period.”
HDR also presented a new Power Cost Adjustment rate option that would allow electric bills to reflect, up or down, recent changes in electric resource procurement costs.
TDPUD noted that it experienced severe price spikes during last winter’s natural gas shortages which required the board to utilize a portion of electric rate reserves which now need to be replenished. The PCA would provide another tool to reflect changes in electric resource costs on customer bills.
“The continued success of our electric and water utilities requires that we make smart investments in operations, maintenance, capital and regulatory compliance,” said TDPUD board president Jeff Bender. “TDPUD’s board and staff are committed to providing affordable, reliable and clean utility services, while seeking opportunities to further enhance the quality of life and protect the environment in Truckee.”
The board also held the third workshop to review and discuss the proposed fiscal year 2024 and 2025 budgets. The workshop provided details on the electric and water utilities revenues/expenses, capital expenditures, overheads, personnel and financial master plan.
The budget process leverages information from TDPUD’s 2022 Annual Comprehensive Financial Report, 2022 current budget, TDPUD District Code, and TDPUD Strategic Plan mid-cycle update.
