Title
Approval of DOE/LAC Resource Pool Budget Adjustment for Fiscal Year 2021/2022 Due to Energy Imbalance Market (EIM) Recommendations for Implementation
Recommended Action
I move that Council approve the 2021-2022 Resource Pool budget adjustment as presented.
Utilities Manager Recommendation
The Utilities Manager recommends approval of this 2021/2022 Resource Pool Budget Adjustment.
Board, Commission or Committee Recommendation
The Board of Public Utilities recommends approval of this 2021/2022 Resource Pool Budget Adjustment.
Body
The purpose of this FY2021 $239,550.00 budget revision and FY2022 $121,500.00 budget revision is to increase the expenditure budget for Electric Production for EIM Implementation.
A consultant, Utilicast, was hired to identify gaps in LAC’s operation regarding the EIM. Once the gaps were identified, the most economical solutions were evaluated and presented to the Power Pool for approval. The budget adjustment reflects the recommendations from Utilicast for an additional FTE to support Operations, an expansion of LAC’s Software Support contract, and an implementation consulting contract. On September 8th the Power Pool has agreed with the recommendations from Utilicast and the associated budget revision.
Alternatives
Staff feels it is prudent to ensure adequate spending authority in advance of implementation of the recommendations from the gap analysis. If this budget adjustment is not approved by the Board and Council, we risk not fulfilling our obligations as a prudent utility in the eyes of regulating bodies WECC, NERC, and FERC. As well as contractual obligations to the Department of Energy as a member of the Power Pool. It is worth noting LANL, Sandia/Kirtland, and LAC will pay their pro rata share of additional costs.
Fiscal and Staff Impact
The net fiscal impact to the Joint Utilities Fund is a $239,550.00 increase to expenditures in FY2021 and a $121,500.00 increase in FY2022....
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