SFPUC Power Business Plan POWER ENTERPRISE BUSINESS PLAN 2016 | Page 10
Spending on Transmission
Segments Redundant
to CAISO
Our transmission options are (1) to ensure that our costs
our reliance on PG&E for delivery of our supplies to our
specific to the Districts are recovered in those contracts,
customers. Because our customers are side-by-side
(2) to cut back on the use and cost of our lines that are
with PG&E’s customers, it is cost-efficient for PG&E and
redundant to the CAISO grid, (3) to extend our own
Power to share the costs of building and maintaining a
system to stay off the CAISO grid, and (4) to share use
single distribution system. We avoid redundancies and
and costs of our assets by becoming a Participating
duplicate facilities, but there is a significant drawback.
Transmission Owner (joining the CAISO grid) or
Since that single distribution system is controlled by
Most of our transmission assets are used to get our Hetchy
partnering with others. Cutting back usage of our own
PG&E, we are reliant on PG&E and FERC as its regulator
supplies to the CAISO grid. We spend an additional $45 million on
lines reduces costs and looming upgrade requirements,
to establish fair usage and cost sharing rules. The
our transmission assets to deliver Hetchy supplies to the Districts.
and cutting back on usage of the CAISO grid requires
most cost-effective areas to invest in distribution and
We spend an additional $16 million to maintain transmission lines
substantial investment. Building out our transmission
reduce our need for PG&E’s grid are redevelopment
that get our supplies to Newark and closer to our customers, but
system could be cost-effective as our needs grow, or if
areas, where our interconnections with PG&E’s grid are
using this longer pathway on our own system does not reduce
we are able to partner with others to share costs and
currently concentrated, and where we are planning for
our costs for use of the transmission grid to complete delivery.
ownership responsibilities. We are currently determining
sales growth, primarily along the eastern waterfront and
While these lines provide multiple partial pathways, these lines are
if the Districts are willing to cover the costs of maintaining
mid-market areas. Building and maintaining our own
redundant, providing no cost savings and little or nothing in the way
the District connections. From there, we will develop
lines, even if duplicative, reduces our reliance on PG&E,
of reliability benefits.
a plan for cutting back on our use of the Newark and
reduces our costs for PG&E distribution service, and
District Connections until our revenues grow or we are
avoids disputes with PG&E in the long term. Nevertheless,
able to partner to justify the costs of needed upgrades.
we have to be strategic by targeting Power’s distribution
District
Deliveries
Newark
Deliveries
investments in areas that are both cost-effective and
Hetchy to Grid
Fifth, we must increase investment in local distribution
promotive of reduced reliance on PG&E.
assets (see Fig. 7) to further reduce costs and to reduce
Holm
Powerhouse
$45M
$16M
r
we
Po
Oakdale/
Turlock
Newark
Moccasin
Powerhouse
Kirkwood
Powerhouse
Power
Power’s
Customers
Lines 3, 4
er
Pow
PG&E
Distribution Grid
CAISO Transmission Grid
Warnerville
Standford/
Modesto
es
Lin
r
we
Po
6
5,
es
n
i
L
7, 8
Figure 6: This chart illustrates the Power Enterprise transmission lines and their
redundancies to the CAISO transmission grid.
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SFPUC Power Business Plan 2016
SFPUC Power Business Plan 2016
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