Oil falling back after yesterdays rally and the biggest inventory draw in 17 years. Our road map begins with outrage over wells fargo. The bank settling a fraud case that said employees issued debit cards and transferred funds. Twitter shares down after a 6 drop yesterday. The Board Meeting. We will give you the details. And more fed speak sending futures lower. Shaking things up. Speaking of which, stock futures are lower. The boston fed chief saying a reasonable case can be made for hiking rates. He says low rates increase the chance of overheating the economy and that not tightening could shorten the recovery. He is a voting member, jim, and historically relatively dovish. Right. I think this is again trying to prep everybody theres a rate increase coming. Ive been saying that. Thats why the bank stocks have been acting well. We will have to talk about wells. That is the biggest. This is par for what theyre thinking about, not looking at the employment number or retail sales. No exo
Of it. Enernex looks pretty exciting in its abilitis to get this work done. We do want to make sure that what the work that they do is really oriented on what is called a Virtual Power Plant where you mix together a lot of different types of resource and not just solar and wind, but a lot of other things and were hoping it will be that comprehensive. Some specifics that we want to make sure you guys consult us on and that enernex keeps in mind as it goes forward is that we want to keep that focus on the 50 local clean energy in ten years,. That kind of buildout. Thousands of jobs over that tenyear period and sufficient economies of scales and good rates for ratepayers, meaning a good program, hundreds of millions of dollars and hundreds of megawatts and first diverse and integrated resources to create a Virtual Power Plant. And then importantly we think that the idea of a twotiered system the way marin and sonoma both have, is actually pretty important and makes it much easy to beat pg
System purchases that we might need to make. We purchased biomass and wind from various facilities in california and in the west. And at the time of this reporting we totaled between 2011 and 2012 a balance of Renewable Energy credits of 53,544 megawatt hours. We utilized for our own rps compliance 80,185 and that is drawn from that mix of Renewable Energy credits that we generated and owned and those that we purchased. This is certainly not asking you to speculate on this hypothesis. Yes. So does the commission have any qualms against using Public Utilities commission purchasing electricity on the market because they did express those qualms when they came to cleanpowersf. What is the difference, you think . I think the fact that our underlying resource is 100 greenhouse gasfree. Through our own hetchy system and because we have more of that power than what we consume, our ability to be a net contributor to the greenness, i think, is an influencing factor on their comfort of using Ren
Be more on the water side than the energy side. I mean water and electricity are very different things, but as resource, there is probably many more people in the bay area who get benefit from the water then get benefit from electricity. So you could look at it that way. Sure, you could. With the bulk of the percentage or proportion on water versus energy. And just so im being clear in describing to you the method that we are using, while each asset is categorized as either a water, a power or a joint water and power asset, the sharing of the costs is applied uniformly. So we didnt look for example at mountain tunnel and say, what is the split for that particular asset . The whole system was assessed and the 55 45 was the resulting allocation. And with respect to mountain tunnel, it is a joint asset. It does provide both water and Power Service to the hetchy system. It conveys water that is held behind Drinking Water that is held behind oshaughnessey dam and throughs through the dam th
Its one system, many times one in the same asset is serving two purposes. Other times, assets are strictly dedicated to providing Water Service and districtly dedicated to providing Power Service, but those providing both components we split those costs between water and power ratepayers. 55 to power and 45 to water. That is an historic that is an historic method that has been applied to the hetch hetchy system for all upcountry facilities. We arrived at that method its referred to as the separable cost methods where you look at what it would have cost to provide the Water Service separate from the Power Service or the Power Service separate from the Water Service and see how the costs would have broken out . When we performed that analysis some years ago, utilizing consultants, we arrived at a figure a split, went into negotiations with our wholesale water customers, who also had views on how these asset costs should be shared and arrived at the 55 45 split. This is a method the separ