HomeMy WebLinkAboutPresentation ABAG 03/19/2001 Winter 20004No. 9
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ABAG POWER Members 'Save .Millions
ABAG POWER's Electrical Aggregation,Program Onbehalf of its electric program members,ABAG
members will find something extra under the tree POWER has received a total of,$1,140,365 in State
this winter when%they receive millions in energy renewable energy program rebates for the 1999-
Savings provided by Program.'This success sur- 2000 electric program year Each Program:mem-
passes what any of the major energy service pro- ber received a renewable rebate for the first half
viders.cdh offer during the energy crisis., of the year in February 2000, and has just received
The California electrical market as gone,through + a nr_+
some trying times within.the ast several months, w l`'• ie4 rY
ry g P In`November 2000�the,Electrical,'°`
and there is no near-term change in sight. Over �� r; j °
,Aggreggatron Program s overallasavmgs ,4C
the past year, energy costs scared, many energy ,r
service providers (ESPs) went.out of business, and on electrical ene(gy was.over $.2 4,`,4;
PG&E warned of an early end to;ratefreezesthaf millions +n . r �4 k '? 1
would.cause rate increases due to,its own finan- r- `r •ryx + °' ""'�"'
cial crisis. a second c'redit for`the remainder of the rebate
The ABAG POWER Electrical Aggregation Program this December. The.renewable rebates are alto-
has also felt the impact'•of the volatile market;and cated to each program member based upon the
• has endured its own share of hardships andlhead- specific energy generated by each electric.act • -
• aches.Yet, not only has the.Program survived,it is count or meter,in:the program. The rebate is cur-
now providing significant-savings to'-its members rently at one cent per kWh, and expected to re-
including millions in rebates,and energy cost re- main at this rate through December 2001. Program
ductions. "Finally, ABAG POWER members are re- members will continueto'receive the benefits of
alizing the savings we had always expected this this through the end of 2001.
program could.deliver,and these savings,are ex- In order to take advantage of the Renewable
needing our wildest imagination because of the -
current market uncertainties and volatility,"stated Credit Program,ABAG POWER entered into a con-
•
Eugene,Leong, ABAG Executive Director.: tract with Calpine in May 1999 to use renewable
geothermal electric,energy from their geyser fa-
' .Price Stability:,and':Green";Energy cilities in Northern'California:The Program's new energy purchase contract
In September 2000,:ABAG POWER entered into
with Calpine Corporation also gives members another contract with Calpine to purchase,power •
much-needed price stability and:the use of nearly at a fixed cost, providing a very competitive rate
100% 'greenA`energy.;Meanwhile, PG&E is billions and price:stability. With this contract, over 90 per-
. of dollars'in^debt=and`seeking.to as its burdens cent of the energy provided'is renewable energy.
ontocustomers:;. Prior to this contract, ABAG POWER staff called
In the 1999;2000 fiscal year the Program's power energy providers monthly to secure comrnitments
costs were roughly equivalent to PG&E's cost: for power for the following month depending on
However; members received a-savings even of- prices hieing offered.Typically, quoted prices were
ter program expenses through rebates received' within a small band defined by the California
from'the'Program's part icipation in the California Power Exchange (PX) price, plus the provider's ad-
' 'Energy Commission's] (CEO) Renewable Energy ministrative. fee. With the new contract with
'Program for the use of'renewable energy: In No- Calpine, the Program has a realistic potential for
• vember 2000;:the Program overall savings on savings from the cost of energy alone for the first
electrical energy was over$2:400,000—a 55 per time
cent:savings ever the"CalPX Day-Ahead prices. (see Members Save page 2).
` 7 P A Newsletter of ABAG POWER;the Pow Purchasing Pool xl
Itife; <, ;4} `"tgt:ar.> `. for;the Association of Bay Area Governments
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• Members'Save (coat. from paged),
Members are also saving money,ip supplemen ;1- =-nom'k.' m• --la °s+. ,'7.° -`"A
• tary costs. In'December 1999, the fee.that.ABAG This fiscal year, ABAG POWER's
POWER charges its members to cover program Electrical Aggregation Program is
expenses was'cut in half from eight to four per offering its members: a
' cent. The remaining fee is more than offset by
the rebates received from the renewable`energy •• Continued savings on energy costs ' •
program. ,
• Additional energy savings through re
ABAG POWER is pleased to report that the'Pro- bates`from the State Renewable •
gram is now in the best position in its history to Energy Program yi
take advantage of the potential benefits-of the z
deregulated market. Program members will con- •• Protection from energy price volatility by �!
tinue receiving benefits this fiscal year, despite purchasing electricity at a fixed price
the volatile market. Although there are many .
challenges ahead, ABAG POWER will continue • Close to 100% renewable (green) energy
to seek-and pass along sayings to its members. at no•additional cost ..
For more information on ABAG•P.OWER s'Electn- a
cal Aggregation program; contact Jerry Lahr, _• Control of energy costs when the electric
Program Manager, at 510/464-7908i or e=mail' market fully deregulates e.
jerryl@abag:ca.gov. "
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i °i,: re._s., e:_ x- a__ �..4 ,i -.' i 1 ra 4.415 ..-y 74.- ` °ro,-,;'tiara .' 240-,.....;,...s;ittir LC
: ABAG POWER members have received $1;149,165.Ap State renewabletenergy program s
d;" 'hi.4. r J F 3 t c-7.--t L, 6 cr.r yA Y .,,,,31..., -G.^nN°',3147 5,' +SNC .; e .- .n'x bM5,s .i
rebates fer,,7the 1999 -2000 electric ro ram ear° ,,i. yr .,.�s s14„� k. t `�'ttd
�r"°-+��g'3R'l :aVN.. >f�afyr t . . �� et. �.. rr d.^*[ '«$, i 3/F+2'. j �'! 4.,p Yn, 1Y .t+ `r it 'tai<i. rl9
,..�..�....+.�-.emu
Executive Committee Discusses Successes •
and Plans for the Future
ABAG's Power Pool'ssuccess.and plcns for future ber agencies.Recognizing that longer-term agree-
progress were.the critical focus of ABAG;POW ER's ments would most likely result in much lower prices,
Executive Committee meeting on November 15. the Power Pool's'goal is to move into this next
Jerry Lahr,ABAG POWER Program Manager,and phase.
Dave Finigan, Program Advisors reported mem- New Member and a New Committee Announced
ber savings of over 20,percent for the Electrical Committee Chairman Mark Lewis appointed Ex-
Aggregation Program and 11 percent for the ecutive; Committee Members for the 2000-2001
Natural'Gas Program.The Executive Committee, Program Year including newcomer Natasha
as Part of the,itss commitment to maintaining this Merkuloff Nichols from Napa.County's Department
• success and;improving"programs, tookaction on of Public Works.
a•seresof power policy issues. .
announced t atian fi-
T he Committee confirmed A BAG POWER's cur- noncial s ubcommi ttee, in dicating that an in vi ta-
rent deposit policy in light of the volatile state of, tion would-be sent to Finance.Directors to join the
the market. Other deposit policies reviewed in meetings on an ongoing basis. Many Finance Di-
cluded possibilities for providing flexibility and rectors had expressed interest in Power financial
methodology for calculotindepositamoiJntsfor issuesduringthe Power Pool Annual.Board Meet-
new members. Part of the Committee's review ing. This subcommittee would help facilitate fi-
also included'developing strategies for long-term nonce directors' understanding of ABAG Power
power purchasing. Currently, the main constraint financials and related accounting issues. Interested
• that the Power Pool faces is that the program Finance' Directors can contact Joe Chan at
maintains only one-year agreements with mem- 51 x/464-7944 about upcoming subcommittee
meetings.
•
Gay ¶.Pr®gram j''.
•„ ABAG'S PROGRAM SAVINGS CONTINUE TO :INCREASE
- ,e y. e, z aii t r , - The increase in gas prices:has elevated the natu-
. _t,� ._ i _-- rp4t"i r"rc "t i3Y e6 ral gas commodity proportion of the program
�.:�-�l-k��3: - cost.,Price increases are expected to continue
h « nextyear, increasing natural gas costs for ABAG
POWER's program as well as PG&E. However,
ABAG POW ER's Natural Gas Program provided its ABAGiPOWER program manager.Jerry.Lahrstates
members with a record savings of 11 percent, that-ABAG is "working with TXU to determine
or$188,084, when it completed,its fourth-success- whether there are ways to reduce commodity
ful year this surrime' These savings more than costs, perhaps,through a fixed rate contract."
double the 5-percent savings gained.last year.The - - .--- ;
savings,are especially welcome this year, when
Afi addition to savimgsi the Natural as ..
natural gas prices in California have increased dra- ? . Ai,"an 1ers t?.; -:3-35?---.4
matically from a low of$2.48/Dth"in January to over P�og m1prq- ,,.i,Ncosct stabdltyk�that ,xi,�3;1, ,
' $6.Q0/Dth this winter. ,Insulates members from'slgmficanteprlce .-
pr
Qfluctuations 4 h''-4„'s'r/i... 7� t,e �' .Y'a '-t,08'-0,
Since the Program began,in 1996, it has provided
substantial savings to member.agenciesand'tax- ABAG POWER is proud-of the success of its Natu-
payers. Savings have totaled approximately ral Gas Program and looks forward to working with
$500,000 (an average of 6.5 percent) for this four- member agencies to provide continued savings
year period. in 2001. The Program is open for new member
. Each participating member receives a specific participation any time during the year. If your
savings report that includes a monthly analysis of agency is interested in joining or finding out more
the gas consumed and purchased under the Pro- 'about the Program please contact Jerry .Lahr, _
• gra n, with a comparison to the bundled PG&E Program Manager,-at 510/464-7908_or e-mail .•
rate. Each member's savings:will'vary, reflecting ,jerryl @abag.ca-gov.
• their individual use of natural gas during the year MEE7AzAo-powERs'i ANhsiR,
In addition to total.cost savings,the Program pro- Jerry Lahr;Stabilizes Program During
vides-cost stability,that,insulates•membersfrorrsig Deregulation Roller Coaster
. nificant'price fluctuations in the monthly natural gas ' g .
market.The Program's billing system uses a leyelized. Jerry Lahr joined
payment method, which ensures that program ABAG aslthe .. fi n
costs are maintained at a unified level and recoh- Power Pool' p <
- tiled to expenses at the end of the.program year. Manager in April ��`;
The Natural'Gas Program is composed of three lust before ,2
general,cost elements: deregulation sent
prices soaring early 0. -.
1) Transportation and distribution costs•are last summer. Not Sci
,*
charged.by PG&E and set by the Public Utilities surprisingly;Jerry -?'_` ':7
Commission. >*, =
states that his
bi est',challen es
2) The natural gas commodity is provided by 99 g
;,- Jerry Lahr,Power Pool manager it
ABAG POWER through its contract with TXU so far have been - -
Energy Services and is currently based upon d caused.by deregulation's unpredictability.
rate that is a:discount`to the National Gas In- "Regulatory uncertainty has been a challenge
dex rate. to moving forward...we.expected that power
prices would decrease, but instead they went
{ _ 3) Operational expenses-such?as billing, which is up, he added. For ABAG POWER, Jerry could
provided by IQ Solutions and administrative not have come at a better time. Despite the
support provided by ABAG, have remained volatile market, Jerry's expertise and resourceful-
under three percent ness have led the POWER Program to unprece-
(see Jerry lahr page 4)
• ,,, ^n°r""4; pit/t :e :S a�H�
2.
i W ',
`- rogra a management
'ferry Lahr•(con[ from page 3)., .
dented success this Fall 'Thanks to.the ingenuity activities of"new energy projects'in Asia. He has
and:hard work of Jerry and the ABAG POWER also worked for California Energy Company;an
- staff, members:are now benefiting from both Energy-Producer; and as a lieutenant in the U.S.
. record pricesavings.and stability. Navy, Jerryiperformed as,an Assistant Professor
• ., Jerry's extensive expertise in both the supply and of N,avalScience;a Navigator, and a Division
demand •side of the energy business'has,cer,' • Officer.•
' tainly contributed to his tremendous success:with Jerry•is-supported by Vina Maharaj, who assists
the Power Pool Program. Before joining ABAG,. member agencies and ABAG•POWER contrac-
. he was an operations manager for Honeywell tors. Vina is also the liaison for billing services
Energy•Services in Oakland, where'he managed and performs various administrative duties. She
L. several energy-efficiency-programs As'an comes,from the?private-sector, where she
• Energy`Development Consultant for CalEnergy worked as,an'administrative assistant in a •
.
in Jakarta, Indonesia, Jerry was responsible for benefit consulting firm.
financial analysis and general development -
l'ABAG.POWER:POOL MEMBERS r as;of pecember;2o00,'
ABAG POWER.2001 EXECUTIVE COMMITTEE I
Gas Program Members City of Hercules Town of Atherton City of PC;`erson -c. - .john lisenka ^s
G of Alameda CI atlas Altos Town of Hlllseoiou h G of San Leandro Mark Lewis(Char:.
City City - � City -, : Puafic works Drectcri
.a .. City Manager picador!of Belmont City of Menlo perk Town of MCrcga Cry of Slav Pablo City LtIP'•n City - ...,City- '."FOne% ty .
•City of Fremont City Mtll Valley County of CCnira Costa City of Vacaville .- ,_r-. t i
COY of Monte Serena City of Nlllarae County of larva iawr of Lai Altos Hits `Robert,Audit vice trope Depu Brown. ,_ ,•
.City of Oakland' City of Milpitas Golden Gore Bridge. Town or Windsor Deputy Gate B D-ntroller v ty _
GOitlerrGare BD Services Dvecfbr .' i
City of San Rafael City of Onnda• Higmvay3 Count'cf Suite ' lc,,w y- y County of.-r'z"ay,i
City or Sebastopol City of Pacifies 'Transpodanon District County of Monterey Alan Ngdritch + _ Contra Costar r
Fnance Director
City of Watsonville City of Petaluma Regional dminufarion County of on Mateo. ICip,af Beruaa A'w'•er r rf Jeff Kahn -= 1
County of Santa Clara City of Prole Faclty Corporation County or Sonoma sit -1 v City Monger
Vallejo Sonifdry&Hood Control Dis'ncf City-of Plecsanfon HARD: Natasha Merkuloff N¢heter sCAy of Santa Rosa I
Electric Program Members AdminatraMeMonoger . - .4---t
Gty of Salmas Housing Authonty of County
Gas and Electric Program Members City of Anllocn I Department of Pubficwona Stmt ro the-p„5p ,
City of Albany -Cityof San Cartes City of Arcata of Alameda Counli&Iol a r'Vt,'S CommMee. y•City of San Mateo r Los Trances County Water R lA'-" t c -, Et' ene Leon F
City of Benicia - Ciry of Berke•ey. Lwayne Green}r 5 9 . ,
• Cityof Santa Rosa - Data ,
City of Cuperin0 City of Cloverdale I, sistarit to City Manger Jeri)'Lahr;:, x•
CI of Def Ci City of Saratoga ,Cityof Coati South County Fre Authority I Clty of semis v"� - ' I
ty y ty Dove Fregan
' G of Foster Ci City of Onion City. -:/ity of Ddvi West County.Wastewcier I4 net ' *}yes. -k a
ry • Cityof Valle,o Disirict t Michael Garveysr , Ken May c
City of Gonzales City-Of Newako city of son e i t +2 vino MChora
- Cityof Winters I Ci
City of Hoy Moon day Cityof Newark iY,ofsan Carlos >: a'
POWERMATTERS is;published,bythe.Association of Bay AreaGovernrnents for ABAG POWER. ,
• Karen Johnson, Editor/Writer, 510/464-7947. Vicki Rutherford;.Production.
-ABAG POWER Program Manager is Jerry Lahr, 510/464-7908
ABAG, P.O. Box 2050..Oakland,CA.94604-2050, Fax:510/464-7985
,. - ASSOCIATION OF BAY AREA-GOVERNMENTS • PRESORT•
• • P.O. Box 2050 • Oakland, CA 94604-2050 FIRST CLASS
websiie. hop://www:abeg.ca:gay • email: Info®abag.ca.50w
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0 ASSOCIATION Of BAY AREA GOVERNMENTS
www.abag.ca.gov
Dave Finigan 510/464-7905
Program Advisor fax: 510/464-8468
ABAG POWER DaveF @abag.ca.gov
Mail: P.O. Box 2050, Oakland; CA 94604-2050
MetroCenter, 101 Eighth Street, Oakland, CA 94607-4756 f.
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