TURLOCK IRRIGATION DISTRICT
2017 ANNUAL REPORT
www.tid.org
TID MISSION
BOARD OF DIRECTORS
TID will provide reliable and competitively priced water and electric service, while being good stewards of our resources and providing a high level of customer satisfaction.
Charles Fernandes, President Rob Santos, Vice President Michael Frantz, Secretary Joe Alamo Ron Macedo
SERVICE AREA DON PEDRO LAKE XY Y X
MODESTO
Y X
Y X
TUOLUMNE RIVER Y X
Y X
X
X
Y X
CERES
Y X
Y X Y X
TURLOCK LAKE
Y X
X
Y X
Y X
HUGHSON
Y X
Y X
XY
KEYES
X Y X Y X
DENAIR TURLOCK
Y NT OU NTY SC U U O A L DC NIS RCE STA ME
N SA DELHI BALLICO XY
RIV
5
N UI AQ JO
PATTERSON
ER
HILMAR XY
X
Y X
Y X
Y X
Y X X
XY
Y X
Y X
Y X
Y X
SANTA CLARA COUNTY
Y X
XY
STANISLAUS COUNTY
RI CED MER Y X
XY
VER
H IG
HW AY 99
ELECTRICAL SERVICE AREA IRRIGATION SERVICE AREA
TID OVERVIEW Established in 1887, the Turlock Irrigation District (TID) was the first publicly owned irrigation district in the state. Today it is one of only four irrigation districts in California that also provides electric retail energy directly to homes, farms and businesses. Organized under the Wright Act, the District operates under the provisions of the California Water Code as a special district. TID delivers irrigation water through 250 miles of a gravity-fed canal system that irrigates approximately 150,000 acres of farmland. In addition, TID owns and operates an integrated and diverse electric generation, transmission and distribution system that serves more than 102,000 customer accounts within a 661 square-mile area. TID is one of seven Balancing Authorities in California and operates independently within the Western United States power grid. A Balancing Authority performs a balancing function in which customers’ usage and resources are matched on a moment-by-moment basis. TID is governed by a five-member, locally elected Board of Directors.
02
A LETTER FROM THE GENERAL MANAGER In the public utility sector, there is often a thin line between excitement and anxiety. January 2017 yielded 20.07 inches of precipitation - three times the historic average. Coming off of a severe drought, we welcomed the wet conditions, but February’s rain was unrelenting and ultimately resulted in the decision to open one of three controlled spillway gates at Don Pedro Reservoir. It had been 20 years since the floods of 1997, when all three spillway gates required use to protect Don Pedro Dam and Powerhouse. The difference this time? We had time to prepare, which was imperative as we safeguarded public safety. We coordinated closely with multiple counties to ensure those who were to be affected had time to evacuate safely. Power lines and street lights along Bonds Flat Road were de-energized and removed and non-residential power along the Tuolumne River was disconnected. Bonds Flat Road was removed downstream of the controlled spillway to reduce additional debris downstream. On February 20, the center gate of the spillway was opened, releasing flows of 18,000 cfs. The spillway operated as expected and remained open for seven days. Ultimately, 2017 was the Tuolumne’s wettest year on record. To put that in perspective, it was enough to cover the entire state of Connecticut with nearly a foot of water. (Connecticut is 3,547,731 acres.) With much less anxiousness, in 2017 TID also completed an update of its Strategic Plan. The plan focuses on five operating strategies: Water and Electric Supply & Distribution, Finance & Rates, Workforce, Customer Service and Community Relations and Legislative and Regulatory initiatives. The plan will continue to be used as a roadmap for making strategic changes that will push the District further in its mission and benefit TID customers for years to come. The District continued its buildout of our campus by beginning renovation of the new Power Control Center. The technical advances the new control center allows TID to better isolate power issues and respond even faster to outages throughout the District. Finally, in 2017 the District celebrated its 130th Anniversary of our 1887 formation. Reflecting on 130 years helped us appreciate the advancements we have made, the struggles we have overcome, and throughout, the District’s dedication to delivering reliable and competitively priced water and electric service to our customers. To help showcase TID’s long and storied history, the District created a beautiful, hard cover photo book. Copies were provided to the local libraries and the Turlock Historical Society and are also available for purchase through the District. A sampling of the pictures used in the book can be seen throughout this report. We look forward to what the next 130 years will bring. We know not all the excitement to come will be the good kind. Nevertheless, the District stands ready to respond to new challenges with an authentic reverence to our stewardship of the public’s resources.
Casey Hashimoto, PE
03
Celebrating 130 Years
1887-1923
04
1887
TID, the first Irrigation District, is formed
1893
La Grange Diversion Dam is completed
1900
First Irrigation water delivered
1914
Turlock Lake is constructed to store water
1923
Original Don Pedro Dam and Powerhouse is built to store 289,000 acre feet of water & generate power
Celebrating 130 Years
1924-1925 La Grange Power Plant is constructed
1924
TID Provides power to electric customers and opens an appliance store in downtown Turlock
1925
05
TID begins constructing the first of eight, small-scale hydroelectric power plants in 1979. The plants are located on TID’s canal system and surrounding irrigation districts’ canals. Strategically located where water drops from sufficient heights with a force great enough to spin a turbine, these small plants help the District meet California’s ever-increasing requirement for renewable generation.
Celebrating 130 Years
1971-1995
New Don Pedro dam, powerhouse and reservoir increase flood control capabilities, power production and water storage, as well as create recreational opportunities for the area.
1971
TID begins constructing the first of eight, small-scale hydroelectric power plants
1979
TID acquires an interest in a geothermal power plant in the Geysers Steam Field
1984
Walnut Power Plant, a natural gas/diesel-fired, dual-fuel power plant, begins operation with a generating capacity of 49.9 megawatts
1986
Almond Power Plant, a natural gas-fired plant, begins operation with a generating capacity of 48 megawatts
1995
07
Celebrating 130 Years
2003-2009
08
2003
TID purchases 225 square-miles of energy service area from Pacific Gas & Electric and includes about 10,000 customers in Patterson, Crows Landing, Del Puerto Canyon and Diablo Grande and opens TID Customer Service location in Patterson.
2005
TID obtains its certification as an independent Balancing Authority, allowing the District to operate independently within the Western United States power grid.
2006
Walnut Energy Center (WEC), a natural gas-fired, base-load power plant, begins operation with a generating capacity of 250 megawatts
2008
The District secures a wind generation facility (Tuolumne Wind Project) in Klickitat County, Washington, capable of generating a total of 136.6 megawatts of renewable energy
2009
TID brings its commitment to renewable energy to its own backyard by installing a 70 kilowatt AC array atop its renovated parking structure at the Canal Office location.
Celebrating 130 Years
2009-2012
To better serve customers in Keyes, Ceres and South Modesto, TID opens a Customer Service location in Ceres.
2009
Turlock Irrigation District, in coordination with Modesto Irrigation District, begins the multi-year endeavor of the Federal Energy Regulatory Commission (FERC) Integrated Licensing Process (ILP) for the relicensing of the Don Pedro Project.
2011
The Almond 2 Power Plant becomes fully operational and provides an additional 174 megawatts of TID-owned generation that furthers power supply reliability.
2012
09
Celebrating 130 Years
2014-2016 2014
THE LATERAL 8 RESERVOIR PILOT PROJECT includes beginning construction of the Lateral 8 Regulating Reservoir to increase water efficiency and reduce operational spills, and the Lateral 8 Channel Control Pilot - a system of automated drops and gates, that better regulate the flow of water in the canal system.
2016
The District uses the irrigation off-season to complete the LATERAL 8 REGULATING RESERVOIR EXPANSION PROJECT which quadruples the pond completed in the previous year. Storage capacity of the expanded reservoir is 130 acre feet. TID ENTERED INTO A PURCHASE POWER AGREEMENT to purchase 54 megawatts of clean, renewable solar power from Rosamond Solar site in Kern County, CA. The agreement furthers TID’s efforts to meet current and future Renewable Portfolio Standard obligations and adds to the District’s diverse portfolio of greenhouse-gas-free resources, which include wind, hydro, geothermal, and solar. The current Don Pedro Project FERC license expires on April 30. TID BEGINS OPERATION OF DON PEDRO under an annual license issued by FERC. Turlock Irrigation District and Modesto Irrigation District launch WORTH YOUR FIGHT, an advocacy campaign devoted to informing TID and MID customers about the potential negative impacts associated with Phase 1 of the State Water Resources Control Board’s Bay-Delta Water Quality Control Plan. The campaign yields 1,025,000 social media impressions and over 269 unique articles related to the cause.
10
Celebrating 130 Years
2017
The weather events of late 2016 and 2017 brought an end to the driest four-year period in California’s recorded history. In contrast, 2017 ended up being the wettest year on record for basin yield. Though the snowpack was only 70% of average heading into the middle of December 2016, unrelenting winter storm systems that developed early to mid-January, at the end of January and early February caused Don Pedro Reservoir to rise to a height of 827.84 feet above mean sea level on February 13th. TID had already been releasing the legal maximum allowed under our license but as another atmospheric river was forecasted to arrive the week of February 19th, and with only three feet of space left, the decision was made to prepare to open the dam’s spillway gates. Power lines and street lights along Bonds Flat Road were removed. Non-residential power along the Tuolumne was disconnected and residents living on or near the river were notified that all power to those properties would be disconnected when the spill gates are opened. Finally, on February 20, the decision to open the controlled spillway using one gate is made and Bonds Flat Road is removed downstream of the controlled spillway. The middle gate of the DON PEDRO DAM CONTROLLED SPILLWAY is opened at 3:00 p.m. Initial flows were 18,000 cfs, and were quickly reduced to 16,000 cfs. The spillway facility operated as planned and both the spillway and the dam remain structurally sound. The gate remained open for seven long days as the District carefully monitored reservoir and river levels and what those levels meant to customers and property below the spillway. As part of the FERC licensing project for Don Pedro, which started in 2011, the TUOLUMNE RIVER MANAGEMENT PLAN is created by MID and TID. The Plan is the culmination of a multi-year, comprehensive effort by the Districts in consultation with numerous federal and state resource agencies, Indian tribes, and members of the public, to achieve the co-equal goals of protecting both the natural resources of the lower Tuolumne River and the water supply to our communities. 2017 also brought excitement of the more predictable kind with the CELEBRATION OF THE DISTRICT’S 130TH ANNIVERSARY. To commemorate 130 years of service to the region, TID compiled hundreds of historic and contemporary photos to produce an award-winning coffee table photo book. The book serves as a beautiful representation of 130 years of foresight, strategic planning, commitment and perseverance that changed our dry, desolate valley into the productive agricultural center it is today.
11
COMMUNITY STATISTICS
IN 2017...
TID Employees participated in over 15 Career Days within the District service area for students in elementary school through college.
1,155 community members were given free entry to one of seven public pools in the District. TID provided the pool passes to encourage children and adults to swim in safe places and to stay away from canals.
$
The TID Community Sponsorship Program sponsored local events and programs in excess of $33,500.
TID 30-second water safety videos featuring Dexter Duck ran prior to films in the Turlock 14 Cinemas for a total of 12 weeks during the summer.
TID’s aquatic biologist taught more than 23 elementary school classes about the Chinook salmon lifecycle and helped hundreds of children release baby salmon to local rivers in the spring.
12
Energy Efficiency
residential customers received rebates
LED bulbs were distributed as part of an exchange program or as give-aways
commercial customers received holiday light strands were exchanged by customers for LED light strands kWhs in rebate savings
non-res customers participated in LED direct install program, saving
kWhs total saved in 2017
kWhs
13
Historical Results of Operations ($ In thousands)
2017
2016
2015
2014
2013
OPERATING REVENUES: Electric energy - Retail Electric energy - Wholesale Wholesale Gas Irrigation Other Total Operating Revenue
$304,200
$257,495
$262,657
$275,699
$252,162
51,482
41,140
50,973
64,341
73,460
13,145
5,041
2,898
17,061
12,391
4,273
13,023
14,311
7,758
8,438
5,173
1,637
1,640
4,293
3,944
378,273
318,336
332,479
369,152
350,395
68,505
OPERATING EXPENSES: Power Supply: Purchased Power
55,237
53,615
55,202
63,926
Generation and Fuel
95,281
76,808
97,656
121,951
107,391
Total Power Supply
150,518
130,423
152,858
185,877
175,896
Other Electric O&M
26,512
26,932
23,330
22,730
23,506
Irrigation O&M
12,474
13,336
11,294
11,828
12,623
Public Benefits Administration and General
5,457
5,841
6,119
6,962
6,908
24,786
23,707
21,135
21,640
20,528
-
2,438
Loss of disposal of utility plant Depreciation and amortization Total Operating Expenses OPERATING INCOME
64,567
64,691
62,515
70,442
64,496
284,314
264,930
277,251
319,479
306,395
93,959
53,406
55,228
49,673
44,000
OTHER INCOME: Interest/Derivative gain
3,230
2,056
3,668
1,271
562
Miscellaneous
10,028
10,512
13,851
9,357
9,119
Total Other Income
13,258
12,568
17,519
10,628
9,681
47,473
51,255
53,000
57,338
59,996
59,744
14,719
19,747
2,963
(6,315)
310,814
296,095
276,3418(1)
304,009
310,324
$370,558
$310,814
$296,095
$306,972
$304,009
2.81x
2.91x
2.81x
2.35x
2.83x
INTEREST EXPENSE Long Term Debt NET INCOME (LOSS) NET POSITION: BEGINNING OF YEAR END OF YEAR DEBT SERVICE COVERAGE REVENUE BONDS/COP’S
(1) Government Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Report for Pensions, was a adopted in 2015 and as a result beginning of year Net Position was restated as of January 1, 2015
14
HISTORICAL OPERATING STATISTICS 2017
2016
2015
2014
2013
AVERAGE CUSTOMERS AT END OF PERIOD: Residential
73,381
73,029
72,772
72,909
72,366
Commercial
7,236
7,148
7,086
7,090
7,065
860
866
836
830
794
Industrial Other(1)
20,853
20,814
20,676
20,160
20,046
102,330
101,857
101,370
100,989
100,271
Residential
764,099
714,966
706,945
725,523
716,316
Commercial
133,967
128,568
131,135
130,606
128,154
Industrial
774,613
774,467
766,170
749,864
747,745
Other(1)
375,219
382,287
411,734
399,761
393,316
2,047,898
2,000,288
2,015,983
2,005,754
1,985,531
Total MWh SALES:
Total Retail Interdepartmental meters
48,871
58,883
62,565
69,199
68,235
1,379,433
1,260,372
1,439,114
1,388,342
1,641,616
3,476,202
3,319,543
3,517,662
3,463,295
3,695,382
Generated by district
2,251,144
1,954,296
2,267,333
2,257,182
2,214,620
Purchased
1,307,532
1,443,813
1,319,345
1,281,089
1,563,500
3,558,676
3,398,109
3,586,678
3,538,271
3,778,120
Wholesale Power Total SOURCES OF MWh:
Subtotal System losses
82,474
78,566
69,016
74,976
82,738
3,476,202
3,319,543
3,517,662
3,463,295
3,695,382
$122,325
$114,519
$113,282
$114,169
$109,790
19,013
18,283
18,540
18,319
17,756
Industrial
93,356
92,721
91,521
87,318
85,711
Other(1)
51,034
51,819
55,190
52,226
50,453
Power Supply Adjustment Recognized (Deferral)
17,927
(20,398)
(16,424)
3,093
(12,112)
303,655
256,944
262,109
275,125
251,598
489
473
470
497
488
56
78
78
77
76
304,200
257,495
262,657
275,699
252,162
51,482
41,140
50,973
64,341
73,460
$355,682
$298,635
$313,630
$340,040
$325,622
549
527
517
510
527
Total ELECTRIC ENERGY REVENUES: ($ IN THOUSANDS) Residential Commercial
Total Retail Energy Electric Service Charges Other Electric Revenue Electric Energy Retail Wholesale Power Total SYSTEM PEAK DEMAND (MW) AVERAGE MWh SALES PER CUSTOMER Residential
10.413
9.790
9.715
9.951
9.899
Commercial
18.514
17.987
18.506
18.421
18.139
900.713
894.304
916.471
903.451
941.744
Industrial AVERAGE REVENUE PER MWh Residential
$160.09
$160.17
$160.24
$157.36
$153.27
Commercial
$141.92
$142.20
$141.38
$140.26
$138.55
Industrial
$120.52
$119.72
$119.45
$116.45
$114.63
$0.065
$0.066
$0.072
$0.080
$0.070
AVERAGE COST OF POWER PER KWh FOR RETAIL LOAD (2)
(1) Includes agricultural and municipal water pumping, street lighting, and interdepartmental meters. (2) Includes depletion and depreciation on generation assets, excludes debt service.
15
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