BOARD MEETING DATE: October 5, 2007
AGENDA NO. 16

PROPOSAL:

Issue RFP for Electricity Resource Planning Analysis

SYNOPSIS:

On August 3, 2007, the Board adopted amendments to Rule 1309.1 that enabled electrical generating facilities to purchase credits from the District’s Priority Reserve account. The Board directed that up to one million dollars be used to conduct a comprehensive energy analysis of the Basin to better determine needed resources and options.

COMMITTEE:

Stationary Source, September 28, 2007, Recommended for Approval

RECOMMENDED ACTION:

Approve release of the attached RFP.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

At the public hearing on August 3, 2007 where amendments to Rule 1309.1 were approved, there was substantial testimony about the need for new electrical generating plants in the District. Representatives of CA ISO, SCE, CEC, and environmental organizations all testified about future demand and load growth.

As part of the adopting resolution, the Board directed staff to set aside $1,000,000 to conduct a comprehensive energy analysis to better define the future electricity needs of the District and what location constraints those needs required. This RFP represents the first phase of the study.

Subsequent to the Board meeting, and as directed by the Board, staff met with a working group to review the specific tasks and the required funding level for an RFP that would provide the Board meaningful guidance and direction in their further review of this subject. Staff received constructive comments at the meeting and have incorporated them in the attached RFP.

Proposal

The attached RFP has been drafted to provide the Board with better and more specific information regarding future electricity needs of the District and location constraints for generation. Policy options will also be examined to identify demand side management and renewable energy opportunities and their associated costs and air quality impacts. The RFP will be evaluated by a five-member panel including representatives from energy agencies, utilities, environmental community organizations, and the District staff. Staff anticipates that a contract from the successful bidder will be brought before the Board at the December 2007 meeting.

Resource Impacts

Staff resource impacts can be accommodated within the current workload.

Fiscal Impacts

There are no fiscal impacts on the District budget associated with this proposal. The proposed funding of $450,000 will come from the Rule 1309.1 special revenue fund which has sufficient funding from previous mitigation fees provided by participating electrical generating facilities.

Attachment (DOC 809kb)
RFP #P2008-05