ML20249A783
| ML20249A783 | |
| Person / Time | |
|---|---|
| Site: | Rancho Seco |
| Issue date: | 12/31/1997 |
| From: | Schori J SACRAMENTO MUNICIPAL UTILITY DISTRICT |
| To: | |
| References | |
| NUDOCS 9806180234 | |
| Download: ML20249A783 (47) | |
Text
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i A k ; A MESSAGE FROM SMUD'S GENERAL MANAGER n 1997 California's electric utility indu try moved toward a restructured,open market environment. i This meant that SMU1), to remain competitive.had to continue to change the way we did business. 1 lust as importantly, though, we stayed focused on our values as a municipal utility, pmviding the services
- and support that our customers have come to expect.
i Two historic acts crystallized our efforts to adapt to the emerging marketplace. First, we started a
. pilot direct access program that allows other energy providers and marketers to sell electricity to our y customers. Secondly, we began testing the waters for providing electricity to customers outside our n.
- service area by r,igning Raley's and the San Juan Water 1)istrict to service agreements. Iloth of these O pilot projects helped us get started in identifying the changes we need to make when and if we expand the programs. ]
1 We also initiated a reengineering process that drastically cut our order delivery time. In examining j our business pmcesses we realized the need to completely alter the way we responded to customer ! requests for building substations, new connections, street lights and tmuhle calls, to name a few of the areas that are affected.The results are exciting- customer order fulfillment within Distribution Services j l cut costs and turnaround times by as much as 35 percent. While all this change was going on.one important aspect of SMUD remained constant. For the seventh straight year, the SMUI) lloard of Directors a,pproved no rate increase. We also brought on-line our newest power plant, CoGen Two, at Proctor & Gamble. This is one of three cogeneration plants that we have developed since 19%. Through our economic development program we helped to attract or retain 15,000 jobs for greater Sacramento during the past two years. We also offered customers competitive rate options that could better fit their needs. A new renewable energy program called Greenergy* gives customers the opportunity to help us replace polluting fossil fuel power with cleaner resources. More than 2,000 customers signed up in the first six months of the program, helping us make a difference. Our fmancial results were very bright in 1997, with our hydmelectric facilities on the Upper American , o River Project saving the District $10 million in power costs compared to buying this power on the open market. We were able to reduce expenditures in other areas as well, and made greater strides than planned in , ; lowering our stranded investment costs. This means that we are well on our way toward making our L rate goals of maintaining steady rates through 2001, and then lowering them. Two ma.ior bond rating agencies also agreed that we are on track by upgrading our senior lien revenue bond ratings to'A." I As you hiok through this annual report, you will see that what we've done in 1997 pmves SMUD can change to stay ahead of the industry and remain faithful to our municipal values. With more changes in store,I feel confident that we will continue to meet the many needs of our customer-owners. j l ~ i JAN SCHORI GENERAL MANAGER s m j
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1997: AYEAR OF TRANSITION. MEETINGTHE CHALLENGES. MEETING AYEAR OF SUCCESS. THE DYNAMIC NEEDS OF CUSTOMERS. In 1997, California's electric utility industry As a municipal utility and a premier electric began the transformation into a competitive service provider in Northern California, SMUD offers residential, commercial, industrial and U retail environment. SMUD is ready for the governmental customers important advantages
'{ challenge. SMUD is keeping municipal values in balance to maintain a strong position that in myriad ways:
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=
y ^s gives the District and its customers the a Economic development rates help
=
programs and services necessary to succeed. communities grow, which spreads SMUD's l For example, SMUD was the first utility in fixed costs over more customers, helping
]
California to allow customers to choose their to keep rates down for all. electricity supplier and to market " green power," - Environmental programs respect and demonstrating leadership once again as one conserve nuura resources while helping 1 of America's most progressive electric providers. to clean up the air we breathe. l H E S M U D'S E L E C T RIC RATES-
-25 Percent ower +
l THANTHOSE OF C A LIF O R NI A'S -IN V E STO R OW N E D UTILITIES-Meeting the changing
^ " '"
needs of today', TO R E DUCE T H E M EV E N F U RTH E R IN 2 002. customer- a challenge that SMUD embraced in 1997,a year of Since the first full year of operation in
- A diverse and strong portfolio of power remarkable change 1947, one thing at SMUD has remained to ensure quality and reliability, including in the electric utility industry.
mn and kw rah in M.MWs eled a green power opdon. , rates - already 25
- A higher percentage of SMUD revenues are invested in renewahles research and
.,. m9; m,r; I
, D.e +g percent lower than g2 MP $ those of California's development - more than any of the '
i n : > . Q s " Ih % .k I investor-owned utilities utilities in California. kIf , , [g - have been frozen - Community ownership and partnerships through 2001.Then, enable SMUD to work with other agencies n SMUD plans to and groups for the greater good of ( W-lower rates in 2002. Sacramento. 4 -
- Full range of customer services from consultation to complete customer g energy solutions.
k [aa_t,,,_e_a.com,
A STRONG FINANCIAL POSITION A BRIGHT OUTLOOK SMUD is pleased to report that Standard & For the future, SMUD will steer a steady Poor's and Fitch upgraded SMUD's senior lien course of providing safe, dependable services --
,# ~ y.g - '. . - revenue bond ratings to"A." a particularly and of staying competitive by freezing rates y notable occurrence given the uncertainties of for five years. To maintain leadership in clean, deregulation. The upgrades reflect the progress energy-efficient energy sources, SM UD invests gg# ": . -
SMUD has made toward implementing its 28 percent more than the state requires for D j 3 i" Competitive Business Strategy adopted in 1997. energy-efficiency programs, renewable liigher revenues from the growing Saaamento technologies, research and development, and
;j; j{ economy reduced by $39 million the amount limited income programs. To improve internal 4 v.:n L ]
n en ss es n f.
- . ' Total kwh Sales 5.
(w nuunne) =1 4 y i L ., s [ ,,: l
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3;j < vy. O , si f~ h of funds needed from the rate stabilization operations, SMUD is streamlining decision-f,' h h [ fund in 1997. This will help ensure that SMUD making procedures and reengineering business 3* j} reaches the competitive rate goals set for processes. As always, SMUD supports active N NN the year 2001. community partnerships to attract new jobs a s. {[ and keep existing ones. And, SMUD continues jN to enhance delivery of customer services - from answering calls promptly to keeping d RevenuesTotals 6 ; lights turned on without interruption. am =>. - .- t' SMUD 8997 ANNU AL REPORT s. 4
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THE POWERTO COMPETE. INCREASED CHOICES IN A gg THE COM3tlTMENTTO SERVE. COMPETITIVE ENVIRONMENT The District i forging strong partnerships By offering new, exciting choices in 1997, in both the put 'ic and private sectors. SMUD expanded its efforts to keep customers' The privately wned Raley's supermarket needs the highest priority. At the same time, chain, for example signed a four-year SMUD began California's first direct-access agreement with SM:'D for power to their program to give customers the option to choose stores both within ana outside the historical an alternate energy provider. Although SMUD . SMUD service area. "i a like the idea of was not mandated to allow competitors into the working with SMUD an i keeping electric historical service area, the District began direct service delivery kical." says Ed Estberg. director access in order to stay ahead of the industry. of facilities for Raley's 115 supermarkets in in 1997, SMUD customers had the option to Northern California and Northern Nevada. choose a variety of rates that met their needs: The District will provide competitively priced Greenergy* -- cleaner energy sources
#'#' E"*#' ""#*'" # #" '"'# "*' ##I # # " "# "'" "E#" 'E STEPPING UPTO THE PLATE FORTHE
~ CHINET COMPANY The Chinet Company's 1
"""":::::: .m obtain more competitive ustomer- ailored Rates FOR COMME RCI AL C U S T O M E R S '-
rates while protecting them against fluctuating P ROVID E TH F O P PO RT U NIT Y TO P A RT t C i P AT E IN prices.SMUD also . - RATE D E SIG NS TH AT MEET INDIVIDUAL P R E F E R E N C E S. pecwided low-cost loans and rebates, allowing the plant to lastall more efncient technologies, while sharing any savings of acquiring power Time-of-Use Rates - a way to shift electricity during the first year. "Another plus is usage to less expensive off-peak hours.
- Monthly Indexed Rates - a base price for a the convenience of SMUD's
~
g, ' , - consolidated billing" fixed amount of power with competitive 1.stberg says, noting that market prices for new load. eight electric service Real-Time Pricing - a base price for a fixed - I bills will be whittled amount of power with competitive hourly into one. raarket prices for new load. CUSTOMER TAILORED RATES SMUD's competitive agreements include extended-term contracts, bundled services, hedging options and retention packages. Customer-tailored rates for commercial customers provide the opportunity to participate in rate designs that meet individual preferences. [4 i
$ MUD $997 ANNUAL REPORT
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i f FOR A GREATER SACRAMENTO Internally, staff continually seeks out 3 l When it comes to attracting new jobs to better ways to develop and market use of the 'I greater Sacramento, SMUD is an active land and facilities at Rancho Seco, SMUD's supporter of community partnerships. f or retired nuclear power plant; diversify SMUD many years now, the District has made a services; and keep the community informed BANK OF AMERICAL long term commitment to promote and of our developing policies and programs. BANKS ON SMUD . j support economic growth and diversity, job BRINGING IN MORE l e retention and creation,a healthy business moved its mortsase and i SMUD uses a multidisciplinary process that l climate and a better quality of life for SMUD's equity tending proceising L coordinates the expertise and experience ! customers - all of which are mnsistent with center (shown below) ,
. ofits staff from a variety of areas to assist ' elsewhere, but chose to keep prudent planning for future energy needs.
major companies in moving to or expanding 1,100 jobs in Sacramento. In partnership with Sacramento C,ounty , , operations m metropolitan Sacramento. M fact,5 MUD's economic i and other regional development agencies, From analys.is of rate options to a review of retentioa agreement is one . j SMUD works to retain local businesses, customer operations and SMUD electrical of the key reasons they recruit new ones to the area, and facilitate remain in Sacramento.*l J found alllevels of SMUD to ] be very sup9or*1ve - from j
" * * "I " "#
"W E A R E P l. E A S E D T H A T SMUD PROVIDES US WITH economic development i
~- contract all the way to the
\ ) General Manager and the R E 5 P O N 5iV E D 15 T R I B U T 4 O N 5ERVICE.D Board of Directors. I work with a number of utilities and
- MIK E B f A U D 4 N O P E R A T I O M s e* T N A G E R, POLYpt AD L A MIN AT f 1 SMUD," says Nancy Chl,the Bank's vice president of real estate procurement services.
local enter prises in establishing, growing and system supp(,rt capabilities, an integrated expanding their operations. And, by increasing team approec1 has attracted j the customer base, SMUD spreads out its and retained n.ajor businesses. .
- Over the last twa years alone, fixed costs over a greater number of customers, which helps SM UD keep its prices down. emnomic development Economic development rates, for example, activities have helped give businesses discounts on their power to secure more than ,
when they kicate in the Sacramento area or 15,000 jobs for expand their existing operations here, greater Sacramento. SMUD is also an active participant in military base conversion and technology transfer partnerships t V i
%j #
ra
$NUD 19 9 7 A N N U A L R E PO R T (7g1
n - - F
. f x .. . , , n' ~p'.1 RELIABLE POWERTODAY purchases. Total generation at UARP served
[;'.\ 3 f. ', (.) ( '. AND TOMORROW the equivalent of nearly 247,000 residential h
.T As alwap, SA1UD is committed to generating customers in the Sacramento community.
reliable electricity that is economical and
, ' ; ..% 9 WHENTHE HEAT'S ON,
, 4 *. '['.
has minimalimpact on the environment. SACRAMENTO STAYS COOL
'~
- md- ')\6 Sh1Ulfs diverse resource mix includes In 1997, SN1UD had an average outage of hydmelectric power, natural gas cogeneration.
only one hour per customer per year - half the
,- cod-effective energy efh. .ciency programs, . ,
mdustry average of two hours per customer i and advanced and renewable technologies per year. In the 3weiter Ng August heat, SA1UD
- M .' , ~. . .
such as w.md and solar power.
" .L responded to a retord usage of 2,442 megawatts
.C ...
~?E - l While nearly half of SN1Ulfs own power .
A;.l? : ' . ... - p (hfW), breaking a high of;,392 h1W set the is generated through efficient, renewable
'djWMN4,'.
e> t . 3 cp ? f. 3. - .e.. ' . .
. previous August.To assure continuous system
*37 - y .. 17 9 resources, the District also purchases power improvement and maintenance, SNIUD 2- -
4..n E E*5- on the wholesa!c n arket to meet load 74 6.%yr_,..,4/ .W.4-7r. invests considerable employee and financial p a agf.s r -.- . ,_cf .
.~
requirements and to reduce costs throughout resources - and a strong measure of diligence. the year.
; ; g. g'
;. 0l50*'P0wer-M-
'""" POT
' " '" ;. ,W
' Th-
. TO PROVIDE R E LI ABILIT Y A N D S U F FICIE N T
<e -
~
Q E LE CTKlC A L POWER FORALL ITS CUSTOMERS-SMUD's geothermal, TODAY A N D T O M O R R O W. wind, solar and hydro power plants (top to , i bottom) supply clean, I renewable energy to HYDRO POWER: ABUNDANT. Staff keeps trees trimmed away from high-voltage Sacramento. NATURAL COST. EFFECTIVE. lines and regularly ins}wcts them, along with the ShtUlfs hydro facilities at the Upper seven million feet of cable laid during the building American River Project (UARP)in boom of the late 1960s and early 1970s. Timely + Northern California turn snow internal communications help assure that
.y ina by droelectricity - a cost- resources are deployed most effectively during effective power source for sptem outages.
"W tl ShlUD customers.
COGENERATION PLANTS SERVE
,a Winter storms in 1997 Y -
produced 132 percent of SN1UD completed the final two natural gas normal runoff. Thanks to 4 UARP hydro generation, cogeneration plants at Campbell Soup and Procter & Gamble (see photo, opposite page),
.. SNIUD saved approximately '
M QP'a j $10 million in power allowing the District to replace power it had
-b. been buying through the open market.
h 1 g m ggy SMUD 19 9 7 A N N U A L R E P O RT
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i I l n PLUG INTO - CLEANER AIR FOR A ' initiated in 1997, allows homeowners to SMUD*5 ELECTRIC CLEANER SACRAMENTO l l purchase their own PV units and sell any TRANSPORTATION in 1997, $hlUD made it even casier for excess power back to the District. PROGRAM customers to increaw the uw of renewables. Recogni. ting that fossil DIVERSE ENERGY-SAVING PROGRAMS SMUD's green-pricing program, called fxi-burning vehicles are "E # "" " "#"" N "
- G ng* dves customers the opportunity ths 1:ading cause of air '
to help SMUD purchase more electricity from O' ON "
- DN"'
pollution in the Sacramento g g g Efficiency improvement Program in 1997 region,SMUD has led the saved SMUD residential customers and the l Greenergy customers in 1997 helped SMUD buy thirge to PJde Electric and ., District 1.66 gigJwatt-hours (GWil) by additional geothermal (underground sicam) put non-polluting electric providing financing for the purchase of energy resources instead of. energy from power markets . vehicles (EVs) on the road . . efficient heat pumps, air conditioners, attic induding fossil. fuels and nudear power. eince 1990. Along with the and wall insuLion, shade screens, high-Community Solar
- allows customers to environmental benefits, . performance windows and solar water heaters. l help buy photovoltaic (PV) systems for the elsctric transportation . Additionally, the Commercial / industrial rooftops of con munity buildings. lly supporting offers SMUD opportunities program saved 15.89 GWil by providing rebates Community Solar,ShtVD (ustomers help to tratte new revenus ginzrtting sources in an ;
increasingly competitive j merket.Today,in addition N E A R LV O N E-H A L F 0F 5 H U D'$ POWER l to operating the largest . l
- ==
businesses and govemment
"""'" Renewable Resources INCLUDING GEOTHERNAL, HY D ROE L ECT RIC WIN D to Install public elect.lc vehicla charging stations AND P H O TO VO LT A1C CELL 5, throughout the region, non-profit organizations cut their energy costs and financing for the replacement or retrofit 1 while encouraging the expansion of of inefficient lighting, IIVAC and process renewable resources, equipment with high-effkiency equipment.
SMUD is also creating Through the Sacramento Shade Program, long-term strategies to provide SMUD joined with residential customers commercial and residential to plant 17,200 free shade trees. They are customers with access helping the homeowners cut down on their to PV equipment at air conditioner usage, saving them energy { [ reduced costs. The PV and money. v Pioneer 11 pilot program. Mow Down Air Ibtlution - a rebate program fi,r customers who trade in air-polluting gas mowers and purchase new electric mowers -
%Iton Iturunwau (left) shps the brought in No gas-powered mowers.
awgn mt, hu ceneral wwo I vi at a dwyng smtum in trent of the Arden law hfall "Ilow st'It\ fun to Jrn and stfals gut us be wntnbutmg wward smprmwg the enwonnwnt? wn Dwnineau of hn new Ev pq sMUD 19 9 7 A N N U AL R E P O RT
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r i A TURN TOWARD THE WILD SIDE
- Outdoor security lighting provides energy-The I)is;rict's Rancho $cco Recreational Area ef6cient security lights at reduced prices.
is now home to exotic animals who roam and
- Advantage llome program promotes greie freely at the Amanda Blake Memorial new homes exceeding minimum state Wildlife Refuge. More than two dozen oryx energy-ef6ciency requirements.
(an endangered species of antelope) and
- Home EnerFy Audits help customers other animals were rescued by the Performing control their energy usage. )
Animal Wclfare Society (PAWS) from the l
- Motor and pump testing, audits, process OM ONNE illegal underworld of exotic animal trade. I evaluation and customi7ed lighting analysis SMUD RANGE Other animals sharing the refuge include an help bring down customers' operating costs.
* "$ MUD has provided cland, emus, ostrihes and rheas.
- Energy-tracking services give commercial a secure area for the Visitors can observe the non-natise animah customers the ability to manage energy vyx, beautiful animals j in a near-natural environment. Plans call for costs, forecast energy budgets, verify utility we rescued from an an intern program for veterinary students bills, analy7e load pro 6les, and produce auction where they and 6 eld trips for school groups. reports and graphs. could have ended up at a hunting ranch,"
explains Ed Stewart, co-director of PAWS. 5HUD 8 RIN G S MORETHAN POWER TO GREATER SACRAMEHTO. "SMUD's offer presented SMUD HAS FORMED A POWERFUL PARTNERSHIP FOR educational opportunity that allows PAWS to
" / ! share the animals
* * * " " ' " " I AND 1HE Q U A LIT Y OF LIF E FOR ALLWHO LIVE HERE.
while elevating public awareness about the animals' plight in j C8Ptivity. Plus, the I Other community services include
- Peak Corps program of 115,0 o residential refuge gives us a place customer and Energy Services programs and small commercial customers can help I that's ready for other for Sacramento agencies: decrease load in case of a systemwide ,
, animals in danger." l Iducating customers in planting and electrical emergency. j stewardship of shade trees. in partnership i . .. ?4 -
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, with the Sacramento Tree lo mdation.
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Limited income and multi-family home ! education provides information on energy- _ effkies.cy measures, s .. I [
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.jg SMUD is97 ANNU AL REPORT F.3 gl3d JM E .-
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S 7 CUSTOMER SERVICE CENTE8L ENERGY TECHNOLOGY CENTER ShtUD's new 180,000 square-foot The new I nergy & Technology Center is a Customer Service Center houses many of mini-campus of classes and workshops offering
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the District's customer programs under one roof. The Center is an easily accessible locetion for paying bills and obtaining energy-efficiency services. the latest on electrotechnologies, energy efficiency and electrical safety for design professionals, businesses and the general public. The Center features a variety of interactive With the latest in energy-efficient displays and demonstrations. A favorite attraction
. ..p r p technology, the Customer Service Center is SMUD's E-liouse, which showcases the latest u
keeps employees and visitors comfortable in energy-saving techniques and materials, 9 year-round while cutting heating, cooling including residential framing, siding, roofing and lighting expenses. and insulation. The Lilouse also includes
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1.ike everyone else in today's world, energy-efficient windows, new daylighting ShtUD customers are busy people. That's products, a ground-source heat pump, whole-
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why the Customer Service Center lobby house fan and an interactive video center. h5 , j 8 S M U D'S NEW CUSTOMEd SERVICE CENTER 15 juST ONE OFTHE MANY NE W WAYS THE DISTRICT IS PROVi ) Reducing energy costs TO R E S I D E N T I A L. C O M M E R C l A t, A N D INDUS TRI AL in a local grocery store, trimming trees away from C U S TO M E R S.
;j . power lines,cWcking a
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homeowner) air conditioner or helping an industrial i variety of services, including SERVICE FIRST PROGRAM customer with new technologies, SMUD an ATht,information on SMUD employment , At SMUD, delivering excellent service is a top employees are the vital opportunities, postage stamps, Regional priority. To provide the largest customers with link with the community. Transit passes, a pG&E payment a single point of contact for SM UD services, . . , . A. a 'i. /, drop, food services and even Fey Account Managers serve as liaisons with all
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an art gallery. SMUD departments. Account executives can . Ig tailor specialized services and are available 24
- 4. hours a day to answer questions or resolve im . .
gr energy-related concerns. mi:D;- p To improve services to residential customers
@ when they call, SMUD began a multi-year h program to meet its goal of world-class response
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