Water-Energy Nexus Cost Allocation Workshop
Water-Energy Nexus Cost Allocation Workshop aims to allocate costs effectively through targeted partnerships. It focuses on utility-specific data, tool updates, and ideal partnership models to achieve cost-effective solutions and maximize benefits for ratepayers.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Water-Energy Nexus Cost Allocation Workshop Cost Allocation: Targeting Cost Cost Allocation: Targeting Cost Effective Partnerships Effective Partnerships May 4, 2015
ORA - the Office of Ratepayer Advocates - is the independent consumer advocate within the CPUC that advocates solely on behalf of investor owned utility ratepayers. ORA s statutory mission is to obtain the lowest possible rates for service consistent with reliable and safe service levels. In fulfilling this goal, ORA also advocates for customer and environmental protections. The Voice of Consumers, Making a Difference! 2
New Tools and Cost Allocation New Tools and Cost Allocation Use of New Tools for Cost Allocation Utility-specific data used for cost allocation purposes Input Control Quality of inputs determines quality of outputs Guidance on user-defined inputs Tool Updates Default values updated to reflect realities on the ground Mechanism for updates established upfront The Voice of Consumers, Making a Difference! 3
Target Cost Target Cost- -Effective Partnerships Effective Partnerships Cost-Effective Based on Utility-Specific Data Target Partnerships with Highest Energy Savings Potential Target partnerships with high existing embedded energy in water Target partnerships with high embedded energy of marginal supply and imminent need for marginal supply Open to other strategies Target Partnerships that Minimize Free-Ridership The Voice of Consumers, Making a Difference! 4
Cost Allocation Cost Allocation Ideal Partnership Costs allocated in proportion to benefits received High ratio of benefits to costs Minimum Qualifications for Partnership Cost-Effective (benefits exceed costs) Determined by PAC (Program Administrator Cost) Test Partnership-specific tool inputs & outputs submitted for CPUC review Project Design Issues Fixed-cost projects vs. rebate-based projects Encouraging partners to seek outside funding The Voice of Consumers, Making a Difference! 5
Cost Allocation Hypothetical Example Cost Allocation Hypothetical Example Hypothetical Project Total cost = $500 Total benefits = $1000 Benefits to Energy IOU = $100 (10% of total benefits) Benefits to Water Agency = $900 (90% of total benefits) Scenario 1 Costs Proportional to Benefits Energy IOU cost = $50 (10% of total cost) Water IOU cost = $450 (90% of total cost) Scenario 2 Costs not Proportional to Benefits Energy IOU cost = $75 (15% of total; 1.33 benefit to cost ratio) Water IOU cost = $425 (85% of total; 2.11 ratio) The Voice of Consumers, Making a Difference! 6
Other Other Water IOUs Ongoing: Partnership programs reviewed in GRCs Interim: Establish mechanism for participation until next GRC Drought Impacts accounted for via user-defined inputs Distinction between Energy IOU ratepayers and Water Agency ratepayers The Voice of Consumers, Making a Difference! 7
ORA Contact Information ORA Contact Information Suzie Rose Utilities Engineer ORA Water suzie.rose@cpuc.ca.gov 415-703-1254 Alice Glasner Analyst ORA Energy alice.glasner@cpuc.ca.gov 415-355-5580 The Voice of Consumers, Making a Difference! 8
