Title
Presentation of Electric Production Budgeting Process
Recommended Action
None
Staff Recommendation
None
Body
For the fiscal year 18 budget planning process, Electric Production used for the first time the County’s standard 10-year financial forecasting template. This document proved to be too generic for the complex and dynamic nature of the cost for each electric generation resource in the County’s portfolio.
Electric Production is of the opinion that its historic practice to reflect the 10-year financial forecast as the cost of power in the Electric Distribution 10-year financial forecast provides a better projection for the Board and County Council.
Electric Production recommends that for the fiscal year 19 and 20 budget planning process, it revert back to its practice of including financial forecasting in the cost of power for Electric Distribution and eliminate the County’s standard 10-year financial forecast document for Electric Production.
The following describes how Electric Production arrives at the cost of power reflected in the Electric Distribution 10-year financial forecast:
Electric Production Budgeting Process
Electric Production annually updates their 10-Year forecasted loads and generation resources to meet the electric demands of the Los Alamos Power Pool (LAPP) in accordance with the Electric Coordination Agreement. The planning process is ongoing with DPU’s Asset Management Teams throughout the year in regards to the generation resources operated and maintained by DPU.
In October of each year the nine owners of the San Juan Generating Station (SJGS) meet and finalize the SJGS annual budget. Since SJGS serves approximately 40% of the Power Pools Load it carries a lot of financial weight in the DPU budget process. Also in October of each year the Laramie River Station (LRS) completes a similar exercise and submits the LRS O&M and capital budget to DPU for inclusion in the DPU budget.
In December of each year the As...
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