Title
Discussion of the City's Power Supply Portfolio and Associated Guidelines
Executive Summary: In response to Council member comments, and at the request of the Council President, staff wishes to discuss the alignment of the City's power portfolio with the current portfolio guidelines, and opportunities to bring more renewable power resources into the portfolio mix in the future.
Body
Legislative History
Resolution No. 12-153 - A resolution adopting the electric power purchase/supply guidelines document
Purpose & Explanation
In review of the current power portfolio guidelines adopted in 2012, and recognizing increased opportunities to bring on more renewable energy resources in the future, staff is initiating council discussion of options to bring guideline #4 closer to the 50% criteria. This guideline percentage has gradually increased due to the City's reduction in load over the past several years. Load reduction is attributed mostly to energy efficiency and conservation efforts and the loss of one large HPP electric user (approx. 8% of load).
Pricing for renewable energy resources have dropped significantly over the past 5 years. As such, staff also wishes to discuss potential opportunities to bring on more renewable resources to the portfolio and establish a renewable energy percentage guideline.
Attached are the following documents:
* Summary of terms
* The current power purchase guidelines and comments
* 2018 Energy Sources Pie Chart
* Capacity Load Graph
* Capacity Supply Graph
Staff requests direction on the following items regarding the portfolio guidelines:
1. Add an additional guideline to establish a renewable energy portfolio percentage of between 25% and 50% (currently at 25%) based on Council approval to purchase.
2. Grant authority for City staff to solicit potential buyers for 50% (5MW) of Prairie State power with the sale price to be approved by City Council. (This will realign guideline # 4 shifting PS base capacity from 68% to 3...
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