from the prompt year thereby allowing CleanPowerSF to take advantage of

From the prompt year thereby allowing cleanpowersf to

This preview shows page 37 - 39 out of 65 pages.

from the prompt year, thereby allowing CleanPowerSF to take advantage of favorable market opportunities; A movement toward longer-term purchases: in year 2, ladder in an additional 12 MW of long-term renewables to reduce open position in years 6-10; and A reduced reliance on all-source resources over time, consistent with an increased need for renewables to meet RPS requirements. These figures do not depict other important aspects to CleanPowerSF’s portfolio: geographical diversity, size diversity, reliance on Hetchy supply when not adverse to POU ratepayers, and technology diversity within the renewable supply plan. The figures also do not address how 26 demand-side resources such as energy efficiency, demand-response, feed-in tariff generation, and behind-the-meter renewables such as Net Energy Metering resources would be included in the resource mix. In order to demonstrate the performance of the portfolio, CleanPowerSF will establish a formal review process of past procurement decisions. This review process will consist of reviews on a monthly, quarterly, and annual basis. The purpose of such a review is to provide
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information for CleanPowerSF’s power procurement team for process improvement. This information will also be very useful for the key annual procurement planning exercise: CleanPowerSF’s Integrated Resource Plan (IRP) process. The annual IRP process requires CleanPowerSF to describe in a highly structured and comprehensible manner its current and future supply options and demand requirements, the key uncertainties and risks facing the enterprise, and any suggested changes to pre- established procurement guidelines. The IRP will be presented to management for discussion and approval. After approval, the IRP will serve as the guiding document for procurement over the following year. The following figure presents a stylized representation of CleanPowerSF’s procurement program. Figure 9: Resource Planning and Procurement Process Develop Integrated Resource Plan To Inform Procurement Activities Formal Review of Procurement Activities Establish and/or Refine Procurement Policy Obtain Approval for Procurement Guidelines and Policies 2. Product Content Policy Make Short- and Long-Term Purchases Consistent with Guidelines, Policies, and Portfolio Design CleanPowerSF’s portfolio will consist of renewable and non-renewable resources. The Product Content Policy defines the source and fuel type for different elements of CleanPowerSF’s supply portfolio. 27 There are a number of constraints that CleanPowerSF must meet as a load-serving entity. These include RPS product requirements and Resource Adequacy requirements. CleanPowerSF must demonstrate its compliance with these requirements via filings with the CPUC and other regulatory bodies.
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