[env-trinity] Trinity Journal: TPUD on effects of higher river releases

[Tom Stokely]

http://www.trinityjournal.com/news/environment/article_1a8e0ff6-6a10-11e4-8890-2bda566d09bf.html

TPUD on effects of higher river releases
By Sally Morris The Trinity Journal | Posted: Wednesday, November 12, 2014 6:15 am
Trinity River Division facilities.
Trinity River Restoration Program map showing Trinity River Division facilities.
Trinity County supervisors got a refresher course on what water means to low costs for power delivered to 85 percent of the county by the Trinity Public Utilities District during a recent presentation by TPUD General Manager Paul Hauser.
“I know the county is really getting next to nothing for the water that’s going over the hill, but I want you to be aware of what the citizens we serve are getting from the water going over the hill and keep it in mind when legislation comes up that affects us. There aren’t a lot of people in Trinity County, but everyone wants our water,” he said.
Delving into the history of the Trinity River Division Act of 1955 that created the Trinity dam and reservoir and diverted most of the water to the Sacramento River, Hauser called it a consolation prize that 25 percent of the energy generated by the diverted water was reserved as a first preference right for the citizens of Trinity County.
That power generated through diversion to the valley can only be used in Trinity County, not sold to others, but others are able to use any leftover allocation that isn’t put to use here.
“I suspect they threw that in the law in 1955 not believing Trinity County would ever use it. It was something they had to put in the deal to mitigate local opposition to the project, but I don’t think they ever expected Trinity County to realize the benefit,” Hauser said.
The county also receives payment in lieu of taxes for private lands that were inundated, but with no inflation factor included, those are based on 1955 property values, “so the only significant compensation to Trinity County citizens is this first preference power and it does lead to much lower power costs,” Hauser said.
He explained how Trinity County’s first preference allocation is calculated based on a 20-year rolling average of actual generation that is recalculated every five years. The current maximum entitlement is 352 gigawatt hours and current usage is 110, leaving 242 gigawatt hours available for future growth, or about 3.2 times the current usage.
“It’s enough for the equivalent of roughly 20 Trinity River Lumber Mills we could add to the system and in terms of residential customers, it’s a huge number. Based on our historic growth rates, we have about 100 years’ worth of load growth available,” Hauser said, calling it a comfortable amount until reduced diversions prescribed by the Trinity River Record of Decision in 2000 are factored in.
The ROD increased dam releases to the Trinity River to restore native fish habitat through a combination of higher flows and mechanical restoration projects. It increased flows based on five water-year types ranging from 800,000 acre-feet of water in a very wet year to a minimum of 349,000 acre-feet in a very dry year.
The weighted average ROD flow down the river is 624,500 acre-feet compared to prior minimum flows of 340,000 acre-feet per year, reducing the average diversion to the Sacramento River by 284,500 acre-feet.
Doing the math, Hauser said the reduced diversion amounts to 333 gigawatt hours of power and 25 percent of that is 83, reducing the county’s maximum allocation by that amount. He said it means that by 2025, Trinity County’s allocation will be about 2.2 times the current usage rather than 3.2, making the load growth issue more relevant over time as growth actually occurs in the county.
“That 100 years of load growth potential could turn into 20 or 15 years’ worth and the right type of legislation could eliminate any excess allocation immediately,” Hauser said. If TPUD needs ever exceed the 25 percent allocation, it would be forced to comply with California’s Renewable Portfolio Standards that it is currently the only entity exempt from, having successfully argued that all of its energy is from a renewable supply.
“As long as we purchase all of our energy from that 25 percent renewable source, we are exempt from having to purchase a third from more expensive wind and solar sources, but if we ever run out of that allocation, even by one kilowatt hour, we’d be thrown into the state’s RPS and that would be an immediate $2 million hit. We would instantly have to raise our rates,” he said.
In terms of dollars, Hauser said 333 gigawatt hours of foregone power generation attributed to the ROD, very conservatively valued at $50 per acre-foot, amounts to $16,650,000 annually.
“That’s the value of the additional water going down the river in terms of power. It’s the value to others in the state, and if you add water value, it only goes up. In a drought, people have been paying $1,000 to $1,300 per acre-foot for water this past year,” he said.
Hauser explained that when diversions to the valley decrease, less power is generated and it becomes more expensive to power the whole system. He said the TPUD’s cost of power has more than doubled in the past three years of drought from about $2 million to $4 million “and we’re worried about it climbing further.” A drought relief surcharge is in place on customers’ bills, raising rates about 15 percent to help cover the additional cost.
“The fear is if we have a fourth year of drought, we may have to increase the surcharge that was calculated for a ‘normal’ drought and not what I’d call a ‘super’ drought. If we have a good water year, we hope not to do that,” Hauser said.
Asked if the county is at risk of losing its 25 percent allocation for not using it all, Hauser said, “I suppose that’s always possible, but it would be extremely difficult because our allocation was set aside by an act of Congress and it would take another act of Congress to reverse it.”
“It’s certainly a selling point for economic development here,” said Sup. Judy Morris.
Hauser said that even with the drought surcharge in place, TPUD customers’ rates (ranging between 10 and 12 cents per kilowatt hour) are extremely low compared to the rest of California. On a national comparison, he said “we have good rates, but on a California basis, we have incredibly exceptional rates.”
“We hear a lot of public comment wanting to protect the fish by putting more water down the river, but we haven’t seen a lot of your side of the story and how it affects our power supply,” said Sup. Judy Pflueger.
Hauser said the restoration program is funded primarily through power generation by a tax on customers “and without that energy tax, there is no money for restoration. Water customers also contribute, but it’s disproportionate with power customers picking up the lion’s share. It would be fantastic to see that change, but water users have incredible lobbying clout statewide and on a federal basis.”
Asked if it’s an extreme scenario to believe that continued drought could result in a point where there is no water being released from Trinity reservoir to either the river or the Sacramento Valley, Hauser said “it is extreme, but with the current lake level and another drought year like the last one, you do get a dead pool. When the water drops below the outlet works, no water can flow into the Trinity River or over the hill. It’s easy to dismiss, but it is a possibility.”
He added “that is why people like me and my peers try to prevail on the Bureau of Reclamation to take a conservative approach and hold some water back” and argued that the Trinity River ROD is so rigid in its prescriptive flows that it doesn’t allow for any flexibility.
“It says 349,000 acre-feet down the river in a dry year, but what if you have a super dry year, or an extra, extra dry year? If you had flexibility, you could release 200,000 acre-feet in case next year is also a drought and hold some water back,” Hauser said, adding that with consecutive dry years, “you really could get to the point of no water available to come out, either for the river or over the hill, and we don’t want to see that. It would be catastrophic.”
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