ML023100366
| ML023100366 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 10/30/2002 |
| From: | Bauer S Arizona Public Service Co |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| 102-04859-SAB/TNW/CJJ | |
| Download: ML023100366 (22) | |
Text
2000-SC P PA Annual Repor t 2001
SCPPA Members San Juan Unit 3 Operations 8 Directors 16-17 What is SCPPA? 1 Mead-Phoenix/Mead-Adelanto Report of Independent Accountants 19 Transmission Projects 10 Presidents Letter 2 Combined Balance Sheet 20 Hoover Uprating Project. 12 Executive Directors Letter 4 Combined Statement of Operations 22 Southern Transmission System 13 After the Storm 5 Combined Statement of Cash Flows 24 Magnolia Power Project 13 Operations and Financials 6 Notes to Financial Statements 26 Financial Operations & Legislative Report 14 Palo Verde Operations 6 Supplemental Financial Information 33 SCPPA Members Southern Transmission System Mead-Phoenix Transmission Project Mead-Adelanto Transmission Project Palo Verde Nuclear Salt Lake City Generating Station Hoover Uprating Project NEVADA Intermountain Lake Tahoe converter Station San Juan Generating Station A
NI Member Agencies OR LIF UTAH CA Southern Transmission System Las Vegas San Juan Unit 3 Adelanto Mead-Adelanto Converter Project Hoover Farmington Station 500 KV AC ARIZONA Adelanto Substation C VA Mead 500KV 0K Pasadena substation 50 Burbank NEW MEXICO Mead-Phoenix Project Glendale Los Angeles Westwing Vernon Station Phoenix Anaheim Palo Verde Azusa Colton Cerritos Riverside San Marcos Banning Imperial Irrigation District
WHAT IS SCPPA?
The Southern California Public Power Authority (SCPPA) is a joint powers authority consisting of the original ten municipal utilities and one irrigation district. In addition, two new SCPPA member utilities joined this year.
SCPPA members currently deliver electricity to approximately 2 million cus-tomers over an area of 7,000 square miles, with a total population of 4.8 million.
The members are the municipal utilities of the cities of Anaheim, Azusa, Banning, Burbank, Colton, Glendale, Los Angeles, Pasadena, Riverside, and Vernon; the Imperial Irrigation District; and the municipal utilities of Cerritos and San Marcos.
SCPPA was formed in 1980 to finance the acquisition of generation and transmission resources for its members. Currently, SCPPA has three gen-eration projects and three transmission projects in operation, generating and bringing power from Arizona, New Mexico, Utah, and Nevada. A fourth generation project is in the planning/licensing phase.
The projects were financed through the issuance of tax-exempt bonds, backed by the combined credit of the SCPPA members participating in each project. As of June 30, 2001, SCPPA had issued $9.2 billion in bonds, notes, and refunding bonds, of which $2.7 billion was outstanding.
SCPPAs role has evolved over the years to include advocacy at the state and national levels, and various cooperative efforts to reduce member costs and improve efficiency.
1
Presidents Letter Last year saw a change in leadership at SCPPA, with a new Executive Director. This year brought new leadership to five of our member-utilities. Anaheim, Glendale, Pasadena, Los Angeles, and Riverside all appointed new general managers or utility directors.
In addition, SCPPA welcomed two new members, the cities of Cerritos and San Marcos. Although neither city currently has an operating electric utility, both are eagerly taking steps to reduce the cost of electricity to their citizens over the long term. Both are participating in SCPPAs proposed Magnolia Project.
Along with the new faces on the SCPPA Board, we are seeing new ideas and new projects, and we are sharing a sense of excitement that public power is once again constructing genera-tion projects. For instance, in addition to the Magnolia Power Project, other SCPPA members (Burbank, Los Angeles, Riverside, and Vernon) are also in the planning process of constructing their own generation projects.
This past year, SCPPA continued to help its members successful-ly navigate Californias energy crisis. And in June, SCPPA adopt-ed a Legislative and Key Interests document, which was the first step in the development of a new Strategic Plan. SCPPA will continue to help its members focus on the challenges to come, and develop joint solutions wherever possible.
Kenneth J. De Dario President 2
SCPPA Officers Ronald O. Vazquez Ronald E. Davis Bill D. Carnahan Kenneth J. De Dario Secretary Vice president Executive Director President 3
Executive Directors Letter NEW is the descriptive word for this year. Not only do we have two new mem-bers and six new Directors, but we have a new generation project, a new staffing plan, new committees, and new activities.
SCPPAs new generation project is to be called the Magnolia Power Project, and will be the first generation project to be completely owned by SCPPA members. It will be a combined cycle gas-fired plant with approximately 240 megawatts capacity, and will be located on an existing site in the City of Burbank, one of SCPPAs origi-nal members. Our two new members, Cerritos and San Marcos, will be joining five other SCPPA members (Anaheim, Burbank, Colton, Glendale, and Pasadena) in owning and operating the new plant. The Magnolia Power Project recently was found eligible for an expedited six month licensing schedule, the first to gain such approval in California. Plans are to be operational in the summer of 2004.
As part of our new staffing plan, we added a Government Affairs Manager to more closely monitor and influence California legislative issues, and an Energy Systems Manager, to handle the technical issues regarding the Federal Energy Regulatory Commission, the California Independent System Operator, joint resource planning matters, and energy efficiency programs.
New committees include a Public Benefits Committee, Resource Planning Committee, and ad hoc Legislative Committee. These committees continue to expand the areas where joint action can yield increased benefits to all the members.
Through SCPPA, southern California municipal utilities are more and more becom-ing partners, not competitors.
Bill Carnahan Executive Director 4
AFTER THE STORM The energy crisis of 2000-2001 has been likened to the perfect storm at sea. Some of the largest ships on the ocean either sank or were severely damaged, and will require extensive repairs at great expense. Like modern day Titanics, Pacific Gas and Electric, and Southern California Edison proved vulnerable to hidden dangers.
To the great surprise of many observers, the public power utilities of California, and in particular the members of SCPPA, remained stable through the storm, and emerged stronger than ever. Many were even able to provide assistance to other parts of the state.
It has become clear to many that Californias partially deregulated, and yet increasingly centrally controlled electricity market is not a successful model for the rest of the country to follow. The great interest in municipaliza-tion in California and around the nation is evidence that the vertically integrated utility, locally owned and con-trolled, retaining the obligation to plan and to serve, is still in the best interest of the consumer.
The success of the municipal model has been proven in rough seas and calm. SCPPA members will continue to promote the design that works.
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Palo Verde Opeations Palo Verde completed another high production year, surpassing a 90% capacity factor for the fourth consecutive year.
For the sixth calendar year in a row (2000), Palo Verde Generating Station was the largest producer of electricity in the United States.
2000-2001 OPERATIONS Generation Capacity (Millions of MWHs) Utilization (%)
Unit 1 9.6 88.0%
Unit 2 9.8 90.3%
Unit 3 10.4 95.1%
Aggregate 29.8 91.1%
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Burbank/Glendale/Pasadena Percentage of (4.4% each)
Azusa/Banning/Colton SCPPA member (1% each) participaton in Vernon Palo Verde Imperial Irrigation District Project Riverside Los Angeles 0% 10% 20% 30% 40% 50% 60% 70%
PRODUCTION COST (Operation and Maintenance plus Nuclear Fuel)
Calendar Cents Year per kWh 1993 2.02 1994 1.93 1995 1.61 1996 1.45 1997 1.33 1998 1.28 1999 1.25 2000 1.25 7
Glendale Percentage of SCPPA member Banning participartion in Colton San Juan Azusa Imperial Irrigation District 0% 10% 20% 30% 40% 50% 60% 70%
8
Five SCPPA participants own 41.8%
of Unit 3 at the San Juan Generating Station in New Mexico.
A series of Interim Invoicing Agreements for fuel has led to high capacity factors and lower per unit fuel costs San Juan Unit 3 Operations Following lengthy negotiations, the San Juan owners have entered into a new long-term fuel sourcing and pricing agreement. It authorizes moving from surface strip mining to an underground longwall mine, reducing long-term fuel costs dra-matically.
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Mead-Phoenix/Mead Adelanto Transmission Projects The two 500-kV transmission lines, which connect Phoenix to Las Vegas, and Las Vegas to Southern California, completed their fifth year of dependable operation for the nine SCPPA mem-bers who participate in the projects.
Pasadena Percentage of Glendale SCPPA member Burbank participation in Colton Mead-Adelanto Banning Project Azusa Anaheim/Riverside (13.5% each)
Los Angeles 0% 10% 20% 30% 40% 50% 60% 70%
10
Pasadena Percentage of Glendale SCPPA member Burbank participation in Azusa/Banning/Colton (1% each)
Mead-Phoenix Riverside Project Anaheim Los Angeles 0% 10% 20% 30% 40% 50% 60% 70%
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Hoover Uprating Project The Hoover Uprating Project continues to provide six SCPPA members with low-cost, renewable energy (hydro). A SCPPA repre-sentative is active in the development of the Lower Colorado River Multi-Species Conservation Program.
Burbank Percentage of Colton SCPPA member Banning participation in Azusa Hoover Uprating Riverside Project Anaheim 0% 10% 20% 30% 40% 50% 60% 70%
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Southern Transmission System (STS)
As usual, the STS operated with near-perfect availability (99.66%), delivering over 13.2 million MWHs to the six SCPPA members who are participants. The power comes 488 miles from the Intermountain Power Project, in Utah, over the +/- 500-kv DC line.
Pasadena Percentage of Glendale SCPPA member participation in Burbank Southern Riverside Transmission System Project Anaheim Los Angeles 0% 10% 20% 30% 40% 50% 60% 70%
Magnolia Power Project The Magnolia Power Project is a proposed 240 megawatt natural gas-fired, combined cycle plant, to be locat-ed on the site of an existing plant in the City of Burbank. It would replace an older, less-efficient, dirtier unit.
The result would be more power from less fuel, with less pollution.
The project is in the planning phase, and has been granted a fast-track licensing process. If successful, the plant could be operational by the summer of 2004, and would be the first project to be wholly-owned by SCPPA members. The current Planning Participants are Anaheim, Burbank, Cerritos, Colton, Glendale, Pasadena, and San Marcos.
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Financial Operations On February 1, 2001, SCPPA, in connection with its $125 million 2000 Series A Southern Transmission System (STS) sub-ordinate lien variable rate refunding revenue bonds (Bonds), sold an option (swaption) on a floating-to-fixed interest rate swap versus 60 percent of 1-month LIBOR. If the purchaser, a Salomon Smith Barney affiliate (Counterparty), exercises the swaption, SCPPA will effectively convert the Bonds into a synthetic fixed rate obligation with a coupon of 4.25 percent.
In exchange for the right to exercise the swaption, the Counterparty paid SCPPA an upfront premium of $7.9 million. The swaption, if exercised, produces an all-in fixed rate of 4.09 percent, net of the upfront premium. In the event the swap-tion is not exercised, the premium mitigates SCPPAs future interest rate risk on the Bonds.
On June 7, 2001, SCPPA negotiated a fixed swap rate of 4.24 percent (as compared to a coupon rate of 5.89 percent on the refunded bonds) with UBS AG, Stamford Branch (as the swap counterparty) for the advance refunding of $85 million in STS fixed rate 1992 subordinate lien refunding revenue bonds. Variable rate demand obligations, referred to as the STS 2001 Series A bonds, in the par amount of $79.795 million, were issued on June 14. UBS AG agreed to pay SCPPA a variable rate of interest based on the Bond Market Associationís (BMA) 7-Day National Index less 40 basis points. The swap has a termination feature exercisable on or after July 2006, should BMA average more than 7 percent over a con-secutive period. $10.1 million in debt service reserve fund monies were released and applied to the transaction. The net present value savings from the refunding is $9.5 million, or 11.18 percent of the refunded bonds.
Legislative Report Legislatively, 2001 was a very busy year for SCPPA as the 107th Congress first debated an emergency bill aimed at allevi-ating the California and western energy crisis, and then moved to consider comprehensive energy policy legislation and electricity restructuring measures. Representatives from SCPPA made several trips to Washington, D.C. to meet with policy makers on Capitol Hill, in the Administration and at the Federal Energy Regulatory Commission (FERC). SCPPA and its members briefed officials on how municipal utilities and their consumers were faring in the chaotic western market and urged a return to cost of service pricing until a competitive market developed.
Throughout the session, significant effort and political capital was spent pushing back legislative proposals to expand FERC jurisdiction over municipal utilities, which would have undermined the century-long history of local control that charac-terizes the service provided by consumer-owned utilities in California and elsewhere. Legislation of importance to SCPPA last year included:
H.R. 1647, the Electricity Emergency Relief Act - House Energy and Air Quality Subcommittee Chairman Joe Barton (R-TX),
aimed at providing short-term relief in California and the West. The legislation, which eventually was withdrawn, contained measures that SCPPA opposed, including mandatory Regional Transmission Organization (RTO) participation for all utilities, if endorsed by western governors, and a federal demand-side management program that would undercut existing agree-ments between SCPPA members and their customers. During consideration of the bill, efforts where made, unsuccess-fully, to apply FERC regulation over municipal utilities.
H.R. 2587, the Energy Advancement and Conservation Act - Rep. Bartons bill addressed issues such as conservation/ener-gy efficiency, clean coal, nuclear power, and renewable energy. Of direct interest to SCPPA was inclusion of language to reauthorize and reform the Renewable Energy Production Incentive (REPI) program. This program permits DOE to make incentive payments of 1.5 cents/kWh for electricity generated by renewable energy sources. Rep. Mary Bono (R-CA) worked to forge a bipartisan agreement to extend the REPI program for an additional 10 years.
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H.R. 1459, the Electric Industry Tax Modernization Act of 2001 - The House Ways and Means Committee approved an energy tax bill that included private use provisions to update municipal utilitiesí ability to issue tax-exempt bonds in a com-petitive marketplace. The language limits municipalities ability to use tax-exempt bonds to build transmission facilities.
SCPPA has been active in efforts to rectify these adverse tax law changes in the Senate.
H.R. 4, the Securing Americas Future Energy (SAFE) Act - The tax provisions were merged with H.R. 2587 and energy pro-visions from other committees and combined into one comprehensive bill, H.R. 4. The final legislation was amended on the House floor to include drilling in the Arctic National Wildlife Refuge (ANWR). On August 1st the bill passed the House by a vote of 240 to 189 and was sent to the Senate for consideration.
Simultaneously, a California delegation of municipal utilities, headed by SCPPA, met in Washington D.C. with FERCs new Chairman, Pat Wood, and new Commissioner Nora Brownell to discuss: FERCs recent Regional Transmission Organization (RTO) rulemaking; concerns about the California Independent System Operator (ISO); and the proposed westwide RTO.
SCPPA and other California municipal representatives also hosted a Congressional briefing in Washington, D.C. to counter misper-As of June 30, 20001 Bond Ratings ceptions about how municipal electric systems operate and alle-Moodys Investors Standard &
gations that public systems overcharged consumers for electricity SCPPA BONDS Service Poors sold during times of crisis. Hoover Uprating Project Aa3 AA-Southern Transmission System Senior Lien Bonds Aa3 AA-Subordinate Lien Bonds1 Aaa/VMIG1 AAA/A+
S. 287 - Sens. Dianne Feinstein (D-CA) and Gordon Smith (R- Palo Verde Project2 OR) forged a bi-partisan agreement on legislation, strongly Senior Lien Bonds A2 AA-Subordinate Lien Bonds Aaa/VMIG1 AAA/A-1+
encouraged by SCPPA, to impose temporary wholesale price caps Multiple Project Revenue Bonds Mead-Adelanto Aa3 A throughout the West. The senators withdrew their bill when FERC Mead-Phoenix Aa3 A Multiple Project3 A2 A acted to impose region wide price controls. Mead-Adelanto Revenue Bonds4 Aaa AAA Mead-Phoenix Revenue Bonds4 Aaa AAA San Juan Unit 35 Aaa AAA With the defection of Sen. Jim Jeffords (I-VT) from the Republican Party, Sen. Jeff Bingaman (D-NM) became Chairman of the 1
Insured: 1991 Subordinate Variable Rate Bonds (AMBAC); 1993 Subordinate Energy and Natural Resources Committee and immediately Series (MBIA); 1996 Subordinate Series A Bonds (MBIA); 1996 Subordinate Variable Rate Series B Bonds (FSA); 1998 Subordinate Series A (MBIA); 2000 began work on a Democratic energy policy bill. Subordinate Variable Rate Series A Bonds (FSA); 2001 Subordinate Series A (FSA).
2 Insured: 1992 Senior Lien Bonds (AMBAC); 1993 Subordinate Bonds (FGIC);
1996 Subordinate Series A (AMBAC); 1996 Subordinate Variable Rate Electric Restructuring Act of 2001 - Sen. Bingaman planned to Series B and C Bonds (AMBAC); 1997 Subordinate Series A and B Bonds (FSA); Installment Deposits to Defease the 1987 and 1989 Bonds (FSA);
mark-up his bill including electricity early in the fall. After the 1999 Subordinate Refunding Series A Bonds (FSA).
3 Uncommitted bond proceeds secured by a guaranteed rate investment contract.
September 11th terrorist attacks, however, energy and electricity 4 Insured: 1994 Series A Bonds (AMBAC).
5 Insured: 1993 Series A Bonds (MBIA).
issues took a backseat to anti-terrorism and national security leg-islation and all Senate action on energy policy was delayed for several weeks.
Homeland Security Act - In an effort to thrust the Senate to a vote on ANWR drilling, Sen. Frank Murkowski (R-AK) began to push a Republican energy bill. In an unusual parliamentary move, Senate Majority Leader Tom Daschle (D-SD) opted to bypass committee consideration of an energy bill and, instead, asked Bingaman to prepare an energy bill that would move directly to the Senate floor. Daschle embraced this maneuver to avoid a contentious (and potentially losing) com-mittee vote on ANWR drilling.
The bill that Bingaman sent to Daschle included revised electricity legislation that eliminated provisions SCPPA found troublesome, specifically those relating to RTOs and FERC jurisdiction over public power. On the other hand, it preserved (Continued on Page 18) 15
SCPPA Municipalities Ronald E. Davis Thomas K. Clarke General Manager Utility Director Joseph F. Hsu City of Burbank City of Colton Director of Utilites City of Azusa Marcie L. Edwards Paul Toor Art Gallucci Ignacio R. Trancoso General Manager Director of Public Works/ City Manager Director, Water and Power City of Anaheim Assistant City Manager City of Cerritos City of Glendale City of Banning City of Anaheim City of Banning City of Cerritos Rising to a challenge with innovative solutions has Established in 1913, the Banning electrical system now The first new member to join Southern California been a hallmark of Anaheim Public Utilities since its serves an area of approximately 21 square miles. Public Power Authority in over 20 years, the City of inception in 1894. Today, the City of Anaheim is the The City owns a portion of San Juan Unit 3 power Cerritos is preparing to serve the electricity only community in Orange County with an electric plant along with a portion of Mead-Adelanto and demands of its residential and business communi-municipal utility. Our residents enjoy electric rates Mead-Phoenix transmission lines through SCPPA. ties. To further these efforts, Cerritos is participat-significantly lower than surrounding communities, In addition, Banning receives power from Palo ing in the development of the Magnolia Power reliable service, and an array of energy saving incen- Verde, Hoover and various other suppliers to Project. With the goal of providing a stable and tive programs. We continue to focus on working to serve its summer peak load of 37MW. The ser- affordable supply of electricity, Cerritos intends on the best advantage of our customer. It is that clear, vice is povided to our customers throught the developing a diverse portfolio of power to be deliv-long-term focus, coupled with sound resource and utility-owned 4kV and 12kV distribution system. ered as competitively and economically as possible.
financial planning that places Anaheim in the posi- The Utility is committed to continue providing tion to address the future challenges of supplying the quality service to its customers in a reliable man- City of Colton power needs of our community in an efficient and ner at reasonable rates. Significant customer The Colton Municipal Utility was established in 1895, cost effective manner. focused business and residential marketing eight years after city incorporation. Since 1986, the efforts are being implemented to maintain electric utility has changed from being solely depen-City of Azusa growth and positive community and customer dent on southern California Edison for its purchased The Citys electric utility was incorporated in 1898 approval ratings. power to being actively engaged in purchasing when it purchased the assets of a private utility on power form several different sources, achieving sig-the brink of its bankruptcy. The foresight and plan- City of Burbank nificant cost savings in the process.
ning of those early pioneers continues to be the cor- Burbanks Public Service Department began serving nerstone of todays Azusa Light and Water. Diligent both water and electric customers in 1913 and City of Glendale planning for its own power and resources have installed on-site generation in response to a surge in Incorporated in 1906, Glendale purchased its electric allowed it to defer any rate increases since 1993. industrial and residential growth in the 1940s and utility in 1909, obtaining power from outside suppli-Despite the recent industry turmoil, Azusa Light and 1950s. Today the City receives power from three ers. It received its first power from Hoover Dam in Water was able to weather through the crisis with rel- SCPPA projects, as well as firm and interruptible sup- 1937 and inaugurated the first unit of its own steam ative immunity. As a result, Azusa was named by a plies from other utilities and government agencies, generating plant in 1941. Now called the Grayson recent Kosmont survey in the Los Angeles Business and continues to operate its own local power plant. Power Plant, this facility today has eight generating Journal as the second most affordable city in units. Glendale continues to purchase 85 percent of Southern California in which to do business. its power from outside sources.
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Ronald O. Vazquez Chief Financial Officer Los Angeles Department Thomas P. Evans of Water and Power Public Utilites Director Kenneth J. De Dario City of Riverside Director of Utilites City of Vernon Kristine K. Fontaine Chief Financial Karl A. Schwam Phyllis E. Currie Senior Administrative Officer/Controller General Manager Analyst Imperial Irrigation City of Pasadena City of San Marcos District Imperial Irrigation District City of Pasadena City of San Marcos IID entered the power industry in 1936 and Established in 1906, the city built its first electric gen- The City of San Marcos was incorporated in 1963. In today serves a peak load of 704 MW with 850 MW erating steam plant in 1907 and took over operation 1994 the residents of San Marcos authorized the for-of generating resources. Among IID-owned of its municipal street lighting from Edison Electric. In mation of a municipal utility when they approved the resources are 24 MW of low head hydro units along 1909, Pasadena began the extension of its opera- City Charter by an affirmative vote of 68%. In August the All American Canal, 307 MW of gas-fired steam tions to commercial and residential customers that 2000 the City declared its energy independence by and combined cycle units, and 162 MW of peaking resulted in the replacement of all Edison electric ser- implementing the formation of a municipal utility gas turbines. In addition to IIDs share of SCPPA vice in the city by 1920. In 2000-01, Pasadena pur- and in April 2001 adopted a four-part energy strate-resources comprising 104 MW at San Juan and 14 chased approximately 80 percent of its power needs. gy which includes: conservation /public awareness; MW at Palo Verde, IID has 179 MW of other community aggregation; formation of strategic part-resources under long-term purchase contracts. City of Riverside nerships; and generation opportunities. In October Riverside Public Utilities is positioning itself to offer 2001 the City named its municipal utility Discovery Los Angeles Department of Water competitive rates in the new deregulated environ- Valley Utility and is currently pursuing generation and Power ment. Power and transmission costs constitute the opportunities through participation in the Magnolia In 1916, the City of Los Angeles began distribut- bulk of charges passed on to our customers Power Project. The City of San Marcos has a current ing electric power purchased from the Pasadena through rates. Cost reduction and restructuring population of 58,129 and is located in northern San Municipal Power Plant, and the following year inau- efforts at SCPPA have had significant impact on Diego County. San Marcos covers an area of 23 gurated its first generating capacity at San Riverside Public Utilities efforts in meeting our lower square miles and is anticipated to grow to a popula-Francisquito Power Plant No. 1. In 1922 the city pur- operating cost targets. Additional efforts, espe- tion of 85,000 by the year 2015.
chased the remaining distribution system of cially at Palo Verde Nuclear Generating Station, Southern California Edison Company within the city will be required for Riverside to compete in City of Vernon limits. It is now the largest municipally owned electric future years Vernons Utilities Department began serving industri-utility in the nation and is undergoing a major business al customers in 1933, with completion of its diesel restructuring process to prepare for upcoming generating plant. In addition to its own power from deregulation. diesel units and gas turbines, Vernon also receives power from Palo Verde, Hoover, and various suppli-ers. Vernon resides within the California Independent System Operator (CAISO) Control Area and is a Participating Transmission Owner, a Utility Distribution Company a and Certified Scheduling Coordinator under the CAISO tariff.
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Legislative Report (continued) language that SCPPA advocated to allow FERC to deny market rate approval if it found anti-competitive behavior.
In the end, the Senate debated neither the Democratic or Republican versions of the bills prior to adjournment.
The energy debate in the second session of the 107th Congress will proceed where it left off. Energy policy and elec-tric restructuring will once again be a focal point of Congressional debate, and SCPPAs effort to communicate its inter-ests and concerns to federal legislators and regulators will continue.
In California, this year began with the state confronting head-on its failed experiment with electricity deregulation. Only the community-owned, locally controlled municipal utilities, whose officials decided years earlier not to participate in deregulation, had secured adequate capacity to withstand market changes. However, on behalf of the now uncredit-worthy investor-owned utilities, the state of California was forced to take over the purchase and procurement of elec-tricity, incurring over $13 billion in debt.
In January 2001 the California State Legislature convened to confront the electricity crisis, immediately approving ener-gy conservation efforts (SBx1 5-Sher) providing over $40 million to municipal utilites for energy efficiency, peak demand reduction, low-income assistance and appliance replacement. No agreement was reached on Renewable Portfolio Standards (SB 532-Sher), but the debate moves into 2002, with an interest in bringing municipal utilities, including SCPPA members, under renewable standard requirements.
The Governor vetoed two pieces of direct access legislation (ABx2-Migden; SB 1171-Kuehl), justifying the move as a means to protect consumers who elect to remain as customers with investor-owned utilities.
While appearing to support municipalization efforts by local communitites, the Governor signed a bill clarifying the def-inition of majority vote (ABz2 57-Wiggins). However, that bill is tied to SBx2 23 (Soto), SBx2 23 streamlines the process for formation of public power districts in California but was doomed by oppostion from the cable television industry. The Governor vetoed the bill ( AB 206 Wyland) establishing the San Diego Municipal Utility District as well as the bill (SB 1171-Kuehl) allowing LADWP direct access under limited circumstances, justifying his actions with the same logic applied to the direct access vetoes.
After Pacific Gas & Electric filed for bankruptcy in April, the Governor committed to avoid the same fate for Southern California Edison. Bills emerged in the legilature (AB 78x2-Keeley, AB 832-Wright and SBx2 78-Polanco), but the rank and file members were unable to reach consensus on any of them.
Following and influencing state and federal legislation continues to be one of SCPPAs top priorities.
SCPPA held its Seventh Annual Congressional Staff Tour Memorial Day weekend. With record attendance, key lead-ership, committee staff and staff from several Southern California congressional offices learned first-hand about the California energy crisis from a municipal utilitys perspective, viewed the Los Angeles Energy Control Center, and toured the Hoover Dam.
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City of Anaheim City of Azusa City of Banning Customers - Retail. . . . . . . . . . . . . . . . . . . . . . 109,340 Customers Served . . . . . . . . . . . . . . . . . . 14,845 Customers Served . . . . . . . . . . . . . . . . . . 10,209 Power Generated and Purchased Power Generated and Purchased Power Generated and Purchased (in Megawatt-Hours) (in Megawatt-Hours) (in Megawatt-Hours)
Self-Generated. . . . . . . . . . . . . . . . . . . . . . 932,765 Self-Generated. . . . . . . . . . . . . . . . . . . . . . . 0 Self-Generated. . . . . . . . . . . . . . . . . . . . . . . 0 Purchased . . . . . . . . . . . . . . . . . . . . . . . . 2,716,425 Purchased . . . . . . . . . . . . . . . . . . . . . 271,902 Purchased . . . . . . . . . . . . . . . . . . . . . 135,825 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,649,190 Sales Total . . . . . . . . . . . . . . . . . . . . . . . . . . 135,825 Total Revenues (000s) . . . . . . . . . . . . . . . . . . $332,574 Retail. . . . . . . . . . . . . . . . . . . . . . . . . . 238,071 Total Revenues (000s). . . . . . . . . . . . . . . $15,210*
Operating Costs (000s) . . . . . . . . . . . . . . . . . $313,224 Total Revenues (000s). . . . . . . . . . . . . . . $22,047* Operating Costs (000s) . . . . . . . . . . . . . . $14,770*
Operating Costs (000s) . . . . . . . . . . . . . . $21,440* *Unaudited
- Unaudited City of Burbank City of Cerritos City of Colton Customers Served . . . . . . . . . . . . . . . . . . 51,367 Customers Served . . . . . . . . . . . . . . . . . .15,091 Customers Served . . . . . . . . . . . . . . . . . .17,568 Power Generated and Purchased Power Generated and Purchased Power Generated and Purchased (in Megawatt-Hours) (in Megawatt-Hours) (in Megawatt-Hours)
Self-Generated . . . . . . . . . . . . . . . . . 170,988 Self-Generated . . . . . . . . . . . . . . . . . . . . .32* Self-Generated . . . . . . . . . . . . . . . . . . . . . . .0 Purchased . . . . . . . . . . . . . . . . . . . . 1,133,832 Purchased . . . . . . . . . . . . .To be determined Purchased . . . . . . . . . . . . . . . . . . . . .292,340 Total . . . . . . . . . . . . . . . . . . . . . . . . . 1,808,756 Total Revenues (000s) . . . . . . . . . . . . . . . . . . . .0 Total . . . . . . . . . . . . . . . . . . . . . . . . . .292,340 Total Revenues (000s) . . . . . . . . . . . . . . $324,376* Operating Costs (000s) . . . . . . . . . . . . . . . . . . .0 Total Revenues (000s). . . . . . . . . . . . . . . $29,006*
Operating Costs (000s) . . . . . . . . . . . . . $303,655* *Estimated allocation from Magnolia Power Plant scheduled to Operating Costs (000s) . . . . . . . . . . . . . . $30,579*
- Unaudited be online June 2004 *Unaudited City of Glendale Imperial Irrigation District Los Angeles Department Customers Served . . . . . . . . . . . . . . . . . . 82,804 Customers Served . . . . . . . . . . . . . . . . . . 95,066 of Water and Power Power Generated and Purchased Power Generated and Purchased Customers Served . . . . . . . . . . . . . . . . 1,452,163 (in Megawatt-Hours) (in Megawatt-Hours)
Power Generated and Purchased Self-Generated . . . . . . . . . . . . . . . . . 406,827 Self-Generated . . . . . . . . . . . . . . . . 1,038,774 (in Megawatt-Hours)
Purchased . . . . . . . . . . . . . . . . . . . . . 833,140 Purchased . . . . . . . . . . . . . . . . . . . . 1,750,984 Self-Generated . . . . . . . . . . . . . . . 16,137,000 Total . . . . . . . . . . . . . . . . . . . . . . . . . 1,239,967 Total . . . . . . . . . . . . . . . . . . . . . . . . . 2,789,758 Purchased . . . . . . . . . . . . . . . . . . . 13,238,000 Total Revenues (000s) . . . . . . . . . . . . . . $286,054* Total Revenues (000s) . . . . . . . . . . . . . . $209,203 Total . . . . . . . . . . . . . . . . . . . . . . . . 29,375,000 Operating Costs (000s) . . . . . . . . . . . . . $255,377* Operating Costs (000s) . . . . . . . . . . . . . $189,132 Total Revenues (000s) . . . . . . . . . . . . $2,396,137
- Unaudited Operating Costs (000s). . . . . . . . . . . . $2,607,307 City of Pasadena City of Riverside City of San Marcos Customers Served . . . . . . . . . . . . . . . . . . 58,042 Customers Served . . . . . . . . . . . . . . . . . . 95,204 Customers Served . . . . . . . . . . . . . . . . . . . . . . . 0 Power Generated and Purchased Power Generated and Purchased Power Generated and Purchased . . . . . . . . . . 0 (in Megawatt-Hours) (in Megawatt-Hours) Total Revenues (000s) . . . . . . . . . . . . . . . . . . . . 0 Self-Generated . . . . . . . . . . . . . . . . . 290,842 Self-Generated . . . . . . . . . . . . . . . . . 250,100 Operating Costs (000s) . . . . . . . . . . . . . . . . . . . 0 Purchased . . . . . . . . . . . . . . . . . . . . 1,322,424 Purchased . . . . . . . . . . . . . . . . . . . . 2,356,200 Total . . . . . . . . . . . . . . . . . . . . . . . . . 1,613,266 Total . . . . . . . . . . . . . . . . . . . . . . . . . 2,606,300 Total Revenues (000s) . . . . . . . . . . . . . . $327,358* Total Revenues (000s) . . . . . . . . . . . . . . $247,820*
Operating Costs (000s) . . . . . . . . . . . . . $244,716** Operating Costs (000s) . . . . . . . . . . . . . $244,001*
- Includes *Unaudited
- Non-Operating Revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . $25,744
- Includes:
Non-Operating Expenses . . . . . . . . . . . . . . . . . . . . . . . . $17,501 City of Vernon Customers Served . . . . . . . . . . . . . . . . . . .2,079 Power Generated and Purchased (in Megawatt-Hours)
Self-Generated . . . . . . . . . . . . . . . . . . .5,107 Purchased . . . . . . . . . . . . . . . . . . .1,393,931 Total . . . . . . . . . . . . . . . . . . . . . . . . .1,399,038 Total Revenues (000s) . . . . . . . . . . . . . .$97,012 Operating Costs (000s) . . . . . . . . . . . . . .$99,126
Southern California Public Power Authority 225 S. Lake Avenue, Suite 1410, Pasadena, CA 91101 Tel: (626) 793-9364 Fax: (626) 793-9461 Website: www.scppa.org