Irvine Ranch Water District, in working with SCE, determined that the tool provides an estimate and a value of the embedded energy savings, but it is unclear how a utility can claim the embedded energy savings from such a water-energy partnership project. IRWD suggests that the Commission give some consideration to how the Tool relates and applies to utility energy program savings targets. The Office of Ratepayer Advocates suggested multiple updates to the tool including updating the resource balance year to represent a more realistic timeframe for the need and availability of the default marginal supply, new recycled services, since they take time to permit, build, and bring online. Commissioner Sandoval asked further questions about incorporating the default value for embedded natural gas in water. Metropolitan Water District wrote that while natural gas is not a significant part of urban water conveyance, treatment, and distribution, it is used directly by various end uses, such as heating water. Natural gas is also embedded in the electricity that retail electric utilities provide to urban water agencies from power plants that are fueled by natural gas. As the amount of renewable energy in the electric utilities energy portfolio increases, the amount of natural gas embedded in electricity will decrease. These uses are not currently captured by the Water-Energy Cost Calculator. SoCalGas commissioned a to recommend a value representing natural gas to the Commission by the end of 2016, because understanding the embedded natural gas in the water system will make it easier to establish a water-energy nexus program.
Irvine Ranch Water District, in working with SCE, determined that the tool provides an estimate and a value of the embedded energy savings, but it is unclear how a utility can claim the embedded energy savings from such a water-energy partnership project. IRWD suggests that the Commission give some consideration to how the Tool relates and applies to utility energy program savings targets. The Office of Ratepayer Advocates suggested multiple updates to the tool including updating the resource balance year to represent a more realistic timeframe for the need and availability of the default marginal supply, new recycled services, since they take time to permit, build, and bring online. Commissioner Sandoval asked further questions about incorporating the default value for embedded natural gas in water. Metropolitan Water District wrote that while natural gas is not a significant part of urban water conveyance, treatment, and distribution, it is used directly by various end uses, such as heating water. Natural gas is also embedded in the electricity that retail electric utilities provide to urban water agencies from power plants that are fueled by natural gas. As the amount of renewable energy in the electric utilities energy portfolio increases, the amount of natural gas embedded in electricity will decrease. These uses are not currently captured by the Water-Energy Cost Calculator. SoCalGas commissioned a to recommend a value representing natural gas to the Commission by the end of 2016, because understanding the embedded natural gas in the water system will make it easier to establish a water-energy nexus program.
171066345.docx