HomeMy WebLinkAbout2019-12-05; Additional information requested from Nov 19 Joint Coincil and CMWD Meeting - Utilities Department Electricity Costs; Quiram, VickiTo the members of the:
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CMWD Board Memorandum Memo ID# 2019140
Dec. 5, 2019
To: Carlsbad Municipal Water is ict Board of Directors
From: Vicki Quiram, General Mana
Via: Scott Chadwick, Executive an
Re: Additional Information requested from the Nov. 19, 2019 Joint City Council and
Carlsbad Municipal Water District Board Meeting -Utilities Department's Electricity
Costs
This memorandum provides information related to the amount that the Utilities Department
spends on electricity.
Background
During the Nov. 19, 2019, Joint City Council and Carlsbad Municipal Water District Board meeting
presentation on Item No. 16-Public Hearing for approval of a potable water rate structure
modification and proposed two-year rates for potable water, recycle water and wastewater,
additional information was requested regarding the cost of electricity for provision of these
services.
Discussion
The table below provides the cost of electricity for each of the utility accounts for the last two
fiscal years. The table includes the amount budgeted for electricity, the actual amount spent and
the percent that electricity makes up of the annual total Maintenance and Operations Budgets
for each service. The Maintenance and Operations Budgets consist of everything that the Utilities
Department spends to operate the systems, without the personnel costs. It also does not include
the cost we pay to other agencies for water and recycled water, and wastewater treatment
services including the San Diego County Water Authority (SDCWA), Vallecitos Water District
(VWD) and Encina Wastewater Authority (EWA), which have their own electricity costs.
Electricity Costs Electricity Costs Percentage Spent/Maintenance
Budgeted Spent and Operations Budget
Potable Water
FY 2017-18 $106,433 $156,937 Less than 1%
FY 2018-19 $106,433 $ 64,647 Less than 1%
FY 2019-20 $115,000 $ 29,511 * Less than 1% (estimated)
Recycled Water
FY 2017-18 $153,979 $462,775 8%
FY 2018-19 $162,979 $294,682 4.7%
FY 2019-20 $180,000 $ 108,900* 2.5% (estimated)
Carlsbad Municipal Water District
5950 El Camino Real I Carlsbad, CA 92008 I 760-438-2722
Carlsbad Municipal Water District Board of Directors
Dec.5,2019
Page 2
Wast:ew~ater
FY 2017-18 $ 255,938 $241,779
FY 2018-19 $ 262,336 $261,645
FY 2019-20 $285,000 $ 88,885*
*to date
3%
1.8%
2% (estimated)
There are many factors that impact the cost of electricity indicated on the table above.
-
San Diego Gas and Electric's (SDG&E) billing system is not consistent with billing in the correct
time frames and staff works with them to correct errors, as they arise. This causes the. dollars
reported in particular fiscal years to overlap. While the costs above are correct, the fiscal year in
which they actually occurred are likely not exact.
Because the rates for pumping/lifting each type of water vary throughout the day, staff
continually operate the system to minimize pumping, operating pumps only when the cost of
electricity is at its lowest.
On the potable water system, staff has minimized pumping such that during normal operations
the potable water system operates on gravity flow only. The only time potable pump stations are
used is during SDCWA maintenance shutdowns.
Recycled water must be pumped from the Carlsbad Water Recycling Facility (CWRF), located
close to the ocean, through a separate pipeline distribution system to customers throughout the
city. By using storage tanks, staff minimizes the pumping of recycled water during peak electricity
demand/higher cost times. The San Diego County Health Department regulates the use of
recycled water and restricts this use to the hours between 10 p.m. and 6 a.m., unless strict
monitoring requirements are met. These regulations reduce the cost of energy, as does the use
of water from the Meadowlark reservoir that is purchased from VWD, which is located at a
higher elevation than most of our city.
Hydroelectric power is generated at the Maerkle Reservoir. Staff strives for constant
improvement in the use of self-generated alternative energy and the reduction of electric costs
and greenhouse gas emissions. Staff is embarking on and is analyzing additional investments in
solar and hydroelectric power, as well as other renewable energy sources.
Water conservation and the amount of annual rainfall each year also effects the cost of
electricity. In wetter years, customers do not need to utilize as much water for irrigation. And
finally, the use of basic energy saving techniques like efficient lighting in utility facilities has been.
and continues to be implemented.
Carlsbad Municipal Water District Board of Directors
Dec. 5, 2019
Page 3
Next Steps
The Utilities Department will continue to recommend the implementation of practices and
projects to reduce energy usage and costs.
cc: Elaine Lu key, Chief Operations Officer
Celia Brewer, General Counsel
Paz Gomez, Deputy City Manager, Public Works
Laura Rocha, Deputy City Manager, Administrative Services
Michael Calderwood, Fire Chief
Cindie McMahon, Assistant General Counsel
Kristina Ray, Communications and Engagement Director
Babaq Taj, Interim Transportation Director
Amanda Guy, Deputy General Counsel
Ken Knatz, District Engineer
Ligeia Heagy, Management Analyst