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HomeMy WebLinkAbout2023-10-18 Packet - Special Workshop - NCPA PreseentationPage 1 of 2 City Council Special Meeting AGENDA Civic Center Council Chamber ♦ 300 Seminary Avenue ♦ Ukiah, CA 95482 Revised: 10-16-23 To participate or view the virtual meeting, go to the following link: https://us06web.zoom.us/j/97199426600 Or you can call in using your telephone only: • Call (toll free) 1-669-444-9171 • Enter the Access Code: 971 9942 6600 • To Raise Hand enter *9 • To Speak after being recognized: enter *6 to unmute yourself Alternatively, you may view the meeting (without participating) by clicking on the name of the meeting at www.cityofukiah.com/meetings. October 18, 2023 - 4:00 PM 1. ROLL CALL AND PLEDGE OF ALLEGIANCE 2. AUDIENCE COMMENTS ON NON-AGENDA ITEMS The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in, you may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda that is within the subject matter jurisdiction of the City Council, you may do so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda. 3. WORKSHOP 3.a. Presentation from Northern California Power Agency on Power Supply Basics. Recommended Action: Receive a presentation from Northern California Power Agency on Power Supply Basics. Attachments: None 4. CLOSED SESSION 4.a. Conference with Legal Counsel – Anticipated Litigation (Government Code Section 54956.9(d)(4)) Initiation of litigation (1 case) 4.b. Conference with Labor Negotiator (54957.6) Agency Representative: Sage Sangiacomo, City Manager Employee Organizations: All Bargaining Units 5. ADJOURNMENT Page 1 of 68 Page 2 of 2 Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 8:00 am to 5:00 pm. Any handouts or presentation materials from the public must be submitted to the clerk 12 hours in advance of the meeting; for handouts, please include 10 copies. I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than 24 hours prior to the meeting set forth on this agenda. Kristine Lawler, CMC Dated: 10/16/23 Page 2 of 68 Page 1 of 2 Agenda Item No: 3.a. MEETING DATE/TIME: 10/18/2023 ITEM NO: 2023-3097 AGENDA SUMMARY REPORT SUBJECT: Presentation from Northern California Power Agency on Power Supply Basics. DEPARTMENT: Electric Utility PREPARED BY: Cindy Sauers, Electric Utility Director PRESENTER: Cindy Sauers, Electric Utility Director ATTACHMENTS: 1. NCPA Press Release 2. Presentation given at meeting. Summary: The Council will receive a presentation from Northern California Power Agency (NCPA) on the basics of power supply in California, followed by Council discussion. Background: The City of Ukiah has owned and operated its electric system for more than 120 years, and as such, it is one of the oldest municipally owned systems in California. Ukiah's system is composed of electric generation, one substation, transmission and distribution facilities. The City is a member of the Northern California Power Agency (NCPA), a California Joint Action Agency serving 16 municipal members and approximately 700,000 customers. NCPA operates and maintains a fleet of power plants that are among the cleanest in the nation. NCPA provides an array of services to its members, including professional and technical resources, legislative and regulatory representation, operation of the jointly owned power plants, and scheduling coordination of member loads. Discussion: Randy Howard, General Manager of NCPA will provide a detailed presentation on the basics of power supply, including the energy market, generation, transmission and distribution, as well as the challenges facing load serving entities, such as Ukiah. Mr. Howard has over 40 years of utility experience and for the past seven years has been the General Manager of NCPA. He has an undergraduate degree in Electrical Engineering from California State University and a Masters in Business Administration from Pepperdine University. Recommended Action: Receive a presentation from Northern California Power Agency on Power Supply Basics. BUDGET AMENDMENT REQUIRED: No CURRENT BUDGET AMOUNT: N/A PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: N/A PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A COORDINATED WITH: Sage Sangiacomo, City Manager DIVERSITY-EQUITY INITIATIVES (DEI): Goal 4 – Identify and actively engage underrepresented communities in which to retain, expand, develop, and implement programs. CLIMATE INITIATIVES (CI): 1b – Increase renewable power production and storage. 1d – Continue plan to meet statewide goals for purchased power by 2030. GENERAL PLAN ELEMENTS (GP):GP-A4 - Public Facilities, Services, and Infrastructure Element Page 3 of 68 Page 2 of 2 Page 4 of 68 PRESS RELEASE 1 of 2 California’s Alliance for Renewable Clean Hydrogen Energy Systems Awarded Hydrogen Hub Funding by the U.S. Department of Energy ROSEVILLE, CALIFORNIA—October 13, 2023—The Northern California Power Agency (NCPA) was pleased to learn today that California’s statewide application to be selected as one of the nation’s hydrogen hubs eligible for federal funding under the Infrastructure Investment and Jobs Act has been approved by the US Department of Energy (DOE). The approval of the state’s application, which was led in-state by Governor Gavin Newsom and advanced by the public- private partnership Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), will mean $1.2 billion in total federal grant funding will allocated to California to support the integration of hydrogen for energy, transportation, and industrial purposes with the goal of reducing carbon emissions across the economy. Both of California’s US Senators, Alex Padilla and the late Dianne Feinstein, played an essential role in advancing the ARCHES application at the national level and assuring that the benefits of the IIJA were brought to our state to promote economic growth and the technological advancements necessary to reduce emissions across our economy. In response to today’s news, NCPA General Manager Randy Howard said, “Today’s announcement of a hydrogen hub in the State of California couldn’t have been realized without the collaborative leadership of Governor Newsom, the ARCHES partnership, and California’s US Senators and Congressional Members who all worked tirelessly to bring these important infrastructure investments and economic benefits to our state.” NCPA is very pleased that our Lodi Energy Cen ter Hydrogen Project, located in Lodi, California, was included as a Tier I project in the ARCHES application and proposal to DOE as we look to produce and integrate hydrogen to generate power, fuel for medium and heavy-duty trucks on adjacent interstate highway corridors, and support emissions reduction goals for shipping and general operations at the Port of Oakland. The project also offers research and development and training related to the transmission of hydrogen across California’s existin g natural gas pipelines. NCPA has partnered with the City of Lodi, Siemens Energy, the University of California Riverside, the Port of Oakland, Pacific Gas and Electric, GHD , and Rosen to create a project that will demonstrate the use of hydrogen across multiple applications including power supply, transportation, port operations, and research and development opportunities as noted above. Page 5 of 68 PRESS RELEASE 2 of 2 NCPA’s on-site Lodi Energy Center 300 MW natural gas facility, dedicated in 2012, is already among the cleanest power plants in the country due to its fast-ramping capability which helps to facilitate the integration of intermittent renewables into California’s energy mix. Today, the plant has been upgraded with technology installed to operate on up to a 45% hydrogen blend, and according to our technology partner, Siemens Energy, it will be capable of operating fully on hydrogen by 2028. The production of hydrogen on-site will be powered by excess renewable energy. The hydrogen will then power the Lodi Energy Center to assure the reliability of the state’s energy grid and provide a clean energy supply when we need it the most as California’s renewable energy production declines late in the day. NCPA General Manager Randy Howard applauded the announcement, and explained, “The Northern California Power Agency is pleased to continue to lead the way in advancing new clean energy technologies, and we look forward to collaborating with our partners in the Lodi Energy Center Hydrogen Project to provide a road map for others across the country and around the world who may be looking to the integration of hydrogen to capture meaningful carbon emission reductions from power production and transportation.” He continued, “The inclusion of the Lodi Energy Center Hydrogen Project as a Tier I project in the ARCHES application approved today means that the economic and environmental benefits of the Infrastructure Investment and Jobs Act will benefit both Northern and Southern California. We look forward to bringing benefits to the community, as well as developing training and preparing the workforce of the future to build these new technologies that are essential to meeting our state’s decarbonization goals.” About NCPA: Headquartered in Roseville, California, NCPA is a California joint powers agency established in 1968 to construct and operate electric generation facilities and assist in meeting the wholesale energy supply needs of its 16 members: the Cities of Alameda, Biggs, Gridley, Healdsburg, Lodi, Lompoc, Palo Alto, Redding, Roseville, Santa Clara, Shasta Lake, and Ukiah, Plumas-Sierra Rural Electric Cooperative, the Port of Oakland, San Francisco Bay Area Rapid Transit (BART), and Truckee Donner Public Utility District—collectively serving nearly 700,000 electric consumers in Central and Northern California. NCPA was founded on the principle of environmental stewardship and is a recognized national leader in the areas of energy efficiency, renewable generation, and carbon reduction. __________________________________________________________________ Media Contact Howard Quan, State Government Relations & External Affairs Manager 916-781-4222 | howard.quan@ncpa.com | www.ncpa.com | www.twitter.com/NCPA_Alert Page 6 of 68 Western Energy Market Overview Randy S Howard General Manager October 18, 2023 Page 7 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Power Industry 2 Page 8 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C Y •San Francisco •Seattle •Portland •San Diego •Los Angeles •Phoenix •Denver •Albuquerque •Las Vegas •Salt Lake City •345 kV •500 kV •800 kV •BLM Land•Forest Service Land •High Voltage Electric Transmission Lines in the Western US •Tucson•Source: Hitachi Energy, Velocity Suite 3 Page 9 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y California Electric Utilities •4 Page 10 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Authorized via AB 117 (2002) 23 CCAs currently serving more than 11 million Californians 4.4 million customer accounts CPUC expects up to 85% of customer load to be served by CCAs, direct access or distributed generation by 2025 CCA Status in California •CCAs in California •Source: CalCCA Website: January 2023One Page Double Sided Flyer_9-29-20 map only (cal- cca.org 5 Page 11 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y •6 California Joint Powers Agency 15 Members and 1 associate Member serving 700,000 residents in communities throughout Northern California (city-owned and special districts) Builds and operates jointly owned power plants and operates a power pool for Members Represents Members before legislative and regulatory bodies Provides Power Management Services to non-Members, including Community Choice Aggregators (CCAs) •NCPA Overview •Established in 1968 Page 12 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Pace of climate agenda is accelerating Climate adaptation is ongoing and driving a number of policy issues (wildfires, sediment removal—hydro debris, drought, heat waves) Federal infrastructure legislation and state programs create project funding and permitting opportunities, investment in clean energy technologies and electrification Affordability concerns are resonating with policymakers Environmental justice concerns are significantly impacting policy direction Recent heat events have brought reliability and resiliency to the forefront of policy discussion Leading Issues for 2023 7 Page 13 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y California Energy Policy Among the most aggressive in the world California projects a sufficient supply of energy this summer! •3700MW of natural gas plants scheduled for retirement in 2023 •2280MW of nuclear generation scheduled for retirement in 2025 State needs 120 gigawatts (GW) of new clean energy resources to meet the decarbonization goals of Senate Bill 100 by 2040. 8 Page 14 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y 9 Page 15 of 68 Long-term Market Conditions Page 16 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Forward Pricing -Energy 11 Page 17 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Natural Gas –here to stay or soften? 12 Page 18 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y CAISO Costs Last Five Years 13 13 Page 19 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Issues Impacting FY2023/24 Budget Transmission Charges 14 Page 20 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Northern CA vs. U.S. National Average Residential Transmission Rate The U.S. average residential transmission rates are approximately 47% of Northern CA rates in 2021 By 2040, the projected U.S. average residential transmission rate is projected to increase by 92%from the 2021 rate, whereas the Northern CA rates are expected to increase by 161% from the 2021 rate. Source U.S. Average Transmission Rate: EIA, Annual Energy Outlook 2022 National Energy Modeling System Forecast assumed to grow at same rate as N. CA beyond 2030 15 Page 21 of 68 Generation Services Page 22 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Generation Project Review for Ukiah Ukiah participates in NCPA’s CT1, LEC, Geothermal, and Hydro Electric projects In FY23 the projects supplied Ukiah with: •75,668 MWh’s of energy •23.3 MW’s of capacity •70.0% of its resource adequacy need The following slides we will discuss: •The projects role in the market •Recent and upcoming events •Future challenges 17 Page 23 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y 18 Page 24 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Participation Share (%)Megawatts Alameda Healdsburg Lodi Lompoc Plumas-Sierra SVP Ukiah 21.6 5.7 14.7 5.7 1.9 41.3 9.1 16.2 4.3 11.0 4.3 1.4 31.0 6.8 Total 75 •Project Participants •Combustion Turbine Project No.1 19 Page 25 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y CT1 Project Description Combustion Turbine Locations 2 Units in Alameda, 1 Unit in Lodi Type Peaking capacity Fuel Natural Gas (primary) or Diesel Generation Capacity 75 MW total, 25 MW per unit Average Heat Rate 14,000 Other Facilities 0.7 miles of Gas Transmission Line First Year in Operation 1986 Highlights •Great Capacity Support •Low Operating Hours •Ideal locations; behind the meter in Lodi and Alameda; proximity to participants facilitates low transmission costs and increased reliability •Provides quick-start fill-in capacity during peak demand and during evening hours when solar generation fades 20 Page 26 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y •Combustion Turbine Project No. 1 –Simple Cycle Page 27 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Project Participants Lodi Energy Center •22 Participation Share (%)Megawatts Azusa BART Biggs CDWR Gridley Healdsburg Lodi Lompoc Modesto ID Plumas-Sierra PWRPA SVP Ukiah 2.8 6.6 0.3 33.5 2.0 1.6 9.5 2.0 10.7 0.8 2.7 25.8 1.8 8.6 20.2 0.9 102.5 6.1 4.9 29.1 6.1 32.7 2.4 8.3 78.9 5.5 Total 304 Page 28 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Lodi Energy Center (LEC) Description Combined Cycle Location Next to Interstate 5 near Lodi,CA Type Base load and peaking capacity Fuel Natural Gas Generation Capacity 304 MW rating Average Heat Rate 6,824 First Year in Operation 2012 Highlights •Offers state of the art “fast start” technology •Facilitates integration of California renewables •Very efficient heat rate •45% Hydrogen Blending Capable Turbine •Low emissions; net carbon reducing (20 –70%) •Ideal location; partnership with City of Lodi; proximity to participants facilitates low transmission costs and increased reliability 23 Page 29 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Lodi Energy Center Combined Cycle Facility •24 Page 30 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y •Project Participants Geothermal Project •25 Participation Share (%)Megawatts Alameda Biggs Gridley Healdsburg Lodi Lompoc Plumas-Sierra Roseville SVP Ukiah TID 16.8825 0.2270 0.3360 3.6740 10.2800 3.6810 0.7010 7.8830 44.3905 5.6145 6.3305 17.3 0.2 0.4 3.8 10.3 3.8 0.3 8.2 44.9 5.8 6.6 Total 102 Page 31 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Description Geothermal power plant Location Geysers, CA, Sonoma & Lake County, near Middletown Type Base load renewable energy Fuel Geothermal steam Generation Capacity •Plant 1: 2 units at 110 MW nameplate –currently producing 54.7 MW total •Plant 2: 1 unit at 55 MW nameplate –currently producing 40.1 MW Other Facilities •73 production wells and six injection wells •Average well depth is 1.5 miles deep •102 miles of underground well pipe •8 miles of steam gathering pipe •Effluent Pipeline -Four pump stations & five miles of injection pipe First Year in Operation Plant 1:1983; Plant 2: 1985 Highlights •Provides reliable & renewable baseload energy •Expected life extended well past life of debt due to Effluent Pipeline Project and recent system replacement and modernization •Long Term Debt Matures soon -2024 •Renewable REC benefits Geothermal Project 26 Page 32 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Bear Canyon Zero Solar Project Geysers -Solar Projects Power Treated Effluent Pipeline •27 Page 33 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y •28 Participation Share (%)Megawatts Alameda Healdsburg Lodi Lompoc Palo Alto Plumas-Sierra Roseville SVP Ukiah 10.00 1.66 10.37 2.30 22.92 1.69 12.00 37.02 2.04 25.9 4.3 26.9 6.0 59.4 4.4 31.1 95.9 5.3 Total 259 •Project Participants •Calaveras Hydroelectric Project Page 34 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y •29 NCPA Hydroelectric Project Page 35 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y •30 Alpine, Union, & Utica North Fork Stanislaus North Fork Stanislaus Hydro Project Highland Creek New Spicer Meadow Reservoir Capcity:189,000 acf Generation: 6 MW (3 units) Elevation: 6,700 ft Collierville Power Plant Generation: 253 MW (2 units) Elevation: 1,100 ft 30 Transmission ~40 miles Power Tunnel ~9 miles North Fork Beaver Creek McKays Point Reservoir Capacity: 2,065 acf Elevation: 3,370 ft Page 36 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Hydroelectric Project Description Series of five Hydroelectric Generating units on the North Fork of the Stanislaus River Location Murphys, CA Type Base load and peaking capacity Fuel Water Generation Capacity •Collierville: 253 MW (2 @ 126.5 MW) •Spicer: 6 MW (2 @ 2.75 MW, 1 @ 0.5 MW) Other Facilities •Collierville: 40 miles of Transmission Line, 2,065 Acre Feet of storage at McKays Reservoir •Spicer: 189,000 Acre Feet of storage at Spicer First Year in Operation 1990 License Through 2032 with option to extend Highlights •Renewable and emission-free source of power to support intermittent renewable sources •Zero Carbon Energy Asset •AB32 emission requirements do not apply •6 MWs of CEC Qualified Renewable Energy 31 Page 37 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y •32 Page 38 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Federal Power is an Important Component of the NCPA Portfolio •33 Project Share Capacity (MW) Avg Annual Generation (GWH) Alameda Municipal Power 1.21%14.1 33,658 Biggs 0.30%3.5 8,243 Gridley 0.66%7.8 18,449 Healdsburg 0.25%2.9 7,017 Lodi 0.57%6.7 15,886 Lompoc 0.32%3.8 9,003 Port of Oakland 0.60%7.1 16,879 Palo Alto 12.31%144.4 343,469 Plumas-Sierra 1.76%20.6 49,067 Redding 8.16%95.7 227,671 Roseville 4.85%56.9 135,425 SVP 9.60%112.6 267,969 Truckee Donner 0.28%3.2 7,756 Ukiah 0.35%4.1 9,650 Total 41.22%483.5 1,150,14133 Page 39 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Central Valley Project Major Facilities •34 Power Plants Trinity –140 MW Judge Francis Carr –154 MW Spring Creek –180 MW Keswick –117 MW Shasta –663 MW Folsom –199 MW Nimbus –51 MW O’Neill –25 MW San Luis –424 MW New Melones –300 MW Page 40 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Upcoming Projects for Potential Debt Issuance 35 Page 41 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Lodi Hydrogen Center 36 Page 42 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Lodi Hydrogen Center 37 Page 43 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y NCPA GEO BESS Proposed Layout Areas 38 Page 44 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Research and Development 39 Collierville / New Melones Santa ClaraPalo Alto Alameda Port WAPA / Tracy WAPA / LEC Interconnect Lodi Pomo Reservation & Pump Storage Hopland Offshore Wind Geysers Cotenancy Line Healdsburg Page 45 of 68 Power Management Page 46 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Power Management Activities Planning and Portfolio Management Load and Resource Scheduling Coordinated Dispatch of Loads and Resources Market and Tariff Design 41 Page 47 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Load Forecasting 42 Page 48 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Load / Resource Balance 43 Page 49 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Market Conditions 44 Page 50 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Changing Grid 45 Page 51 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Integration of Renewables 46 Page 52 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Environmental Regulations Reshaping Industry Demand Side Impacts •Distributed Generation •Energy Storage •Rooftop Solar •Energy Efficiency Supply Side Impacts •50% to 100% RPS •Zero Emission Vehicle Mandate •GHG Targets Integrated Resource Planning 47 Page 53 of 68 Opportunities for Transmission Growth and Regionalization Page 54 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Western Grid Regionalization Western grid regionalization is the idea of better connecting and coordinating power grids throughout the West. It’s not a new concept. It gained traction in California in 2018, although that particular effort fell short. Not a new concept, much of the U.S is already in a regional market 49 Page 55 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Benefits of California being part of a Western Regional Electric Market It can save money by allowing California and its neighbors to more easily buy and sell clean energy with each other, taking advantage of the rich geographic and resource diversity of the region. It can keep the lights on by improving the reliability and resilience of the electric grid, especially during extreme weather events and emergencies. It can cut carbon emissions and increase renewable energy by reducing the dependence on fossil gas-fired generation and enabling more efficient integration of clean electricity across the West. It can provide transparent decision-making by creating a governance structure that ensures fair representation and accountability for all participating states. 50 Page 56 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y 51 Page 57 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Example of Resources Scheduled by NCPA Hydroelectric •Calaveras Project •Tri-Dam Project •Lake Mendocino Geothermal •NCPA Geothermal #1 •NCPA Geothermal #2 Natural Gas •Lodi Energy Center •Combustion Turbine No. 1 •Combustion Turbine No. 2 •Palo Alto COBUG •Plumas High Sierra DVR Landfill Gas Keller Canyon Ox Mountain Santa Cruz Richmond Butte County Johnson Canyon Solar Gridley Main 1 & 2 Kettleman Hayworth Crows Creek 52 Page 58 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Services to Non-Member Customers Fee-for-Service Customers •Merced Irrigation District •Placer County Water Agency •East Bay Community Energy •San Jose Clean Energy •Sonoma Clean Power •Nevada Irrigation District 53 Page 59 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y MPP / GPP Programs Transacting Commodities on behalf of Members •Objectives -Energy Risk Management and Hedging -Stable Rates -Regulatory Compliance -Optimization •Products -Energy -Capacity -Renewable Energy -Carbon Free Energy -Ancillary Services 54 Page 60 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y 55 Page 61 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y 56 Page 62 of 68 Legislative & Regulatory Page 63 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Proactive representation of 16 NCPA member systems at state and federal level •Includes: -Management of policy issues facing Western Area Power Administration -Customer program, technical, and compliance support for member utility programs Of particular importance to small members without compliance staff -External affairs and public communications Program functions overseen by NCPA Legislative & Regulatory Affairs Committee •Comprised of locally elected officials L&R Affairs Program 58 Page 64 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Targeted representation focused on member priorities Strength through extensive grassroots program Protection for NCPA’s investment in generation resources A resource to manage significant risks and threats to business model A voice for Northern California-focused issues Issue education for strategic decision-making Policymaker access Policy-specific workshops L&R Affairs Program Protects Assets and Reduces Compliance Risk 59 Page 65 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y State Issues California’s Energy Transition Plan (Governor’s Roadmap) •Vision for meeting a 100% clean electric grid •High-level roadmap to increase current clean electricity capacity Planning Reserve Margins Regionalization Cap-and-Trade Program Review Advanced Clean Fleets Securing Grant Funding •Sediment, electrification, transmission, distribution •Focus on the California hydrogen hub application submitted by the state to the U.S. Department of Energy―includes potential funding for hydrogen production at the Lodi Energy Center Wildfire Mitigation and Oversight Contingencies 60 Page 66 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Federal Issues Timely and effective implementation of direct pay provisions for public power U.S. Forest Service permitting for deposit of sediment from hydropower reservoir on adjacent federal land California’s hydrogen hub proposal Permitting reform Timber recovery issues with USFS 61 Page 67 of 68 N O R T H E R N C A L I F O R N I A P O W E R A G E N C YN O R T H E R N C A L I F O R N I A P O W E R A G E N C Y Questions / Comments 62 Page 68 of 68