Title
Approval of DOE/LAC Resource Pool Budget for Fiscal Years 2023 & 2024
Recommended Action
I move that County Council approve the 2023-2024 Resource Pool budget as presented.
Utilities Manager Recommendation
The Utilities Manager recommends approval of this 2023-2024 Resource Pool Budget as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities recommends approval of this 2023-2024 Resource Pool Budget as presented.
Body
The Electric Energy and Power Coordination Agreement (ECA) between the County of Los Alamos and the Department of Energy requires that a 24-month budget be approved each year. The budget process begins with both parties preparing a load projection by month for the budget period. From these load projections the Power Supply division prepares a Resource Supply Projection that matches the available resources to the projected loads and estimates the variable costs for both our owned resources and for purchased power. Finally, costs for projected generation, purchases, and transmission are allocated to the parties based on the terms of the ECA.
This budget projects total costs per MWh of $57.07 and $53.43 for fiscal years 2023 and 2024, respectively. Actual costs for fiscal year 2022 through April were $63.32 per MWh compared to budgeted costs of $53.83 per MWh, due in large part to market drivers. The increase from FY2022 budget to FY2023 is due to the lingering impacts to purchased power price projections resulting from market conditions.
The ten-year historical average cost per MWh for the fiscal years 2012 through 2021 was $61.63. This budget cycle presents a fundamental shift in the Operations of the Power Pool. The Pool is anticipating having a positive reserve for the first time in its 37 year history.
Costs to the LAPP participants vary due to each party’s load factors. The projected costs to the County per MWh are $56.20 and $52.76 for fiscal years 2023 and 2024, respectively.
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