Bay Area Monitor ~ June/July 2001
High-voltage tower

Power Plays: Regional Agencies and the Energy Crunch

Public infrastructure depends on energy to function. The combination of soaring energy prices and rolling blackouts has agencies implementing short-term measures to increase energy conservation, and placing more money in the budgets for the next fiscal year to pay for energy costs. Rolling blackouts have also highlighted what can happen when energy is not available. For example, railroad crossing gates are often equipped with battery backup, but when power eventually fails, the gates shut, creating a traffic blockage even when no train is in the area. When traffic signals are retrofitted with energy-efficient LED bulbs, some are also getting batteries which can keep lights operating for up to six hours to avoid traffic snarls.

As rolling blackouts become more frequent, the state Public Utilities Commission has been forced to re- evaluate exemptions from the planned outages. The Bay Area Rapid Transit District (BART) successfully petitioned to be exempted. Power for BART trains is not sent through local power lines, so the trains would continue to operate, but stations and peripheral services such as security lights in the parking lots would be affected, creating a safety hazard for riders. San Francisco MUNI's Metro service is also exempt. The Santa Clara Valley Transportation Authority (VTA) and other agencies are joining a petition of the California Transit Association requesting exemptions for all California rail transit properties.

Because the state has seen shortages in both electrical power and natural gas, as well as a recent increase in gasoline prices, long-term strategies must go beyond simply moving from one energy source to another. Instead, many agencies are considering new ways to save or obtain energy.

Transit agencies which operate electric-powered rail, such as BART and VTA, are particularly affected by instability in electric power rates. In its proposed budget for the next fiscal year, BART's power expenditures are almost double this year's amount, reflecting a 100% increase in transmission costs and a huge increase in the cost of supplemental power. BART is somewhat buffered from PG&E rate changes because most of its power is bought through a federal contract with the Bonneville Power Authority in the Northwest. However, BART pays PG&E for transporting the power, and for any additional power which it needs beyond the federal contract amount. In a recent report to the board, BART staff proposed looking at alternate power providers to supplement or replace current sources. MUNI, which gets power from the city's Hetch Hetchy Water and Power Agency, also pays PG&E transmission costs, and a share of costs of any supplemental power bought by Hetch Hetchy.

Almost 75% of BART's power use is for moving trains. The remainder is used in stations and administration buildings. BART has instituted a conservation program, and riders are already seeing reduced lighting in aboveground stations. Some escalators will also be turned off during non-peak periods, and BART may ask for a change in state code to install switches which would operate the escalators only when passengers were aboard.

Transit agencies which operate buses are less dependent on electricity, but still face problems. Some are affected by the loss of an energy pool operated by the Association of Bay Area Governments which helped to control costs. In rolling blackouts, support facilities are affected, and service schedules may be disrupted by darkened traffic signals and the resulting traffic jams.

The Golden Gate Bridge, Highway and Transportation District has been reducing lighting at many of its facilities, and will consider energy use when lighting is replaced during reconstruction of the Larkspur Ferry parking lot. The district has also changed the hours when decorative lights on the bridge are lit, and is purchasing more energy efficient electronic message boards for the bridge.

Many transit agencies recently decided to buy new cleaner-burning diesel buses rather than moving to compressed-natural-gas (CNG) buses. Jim Gleich, Assistant General Manager at AC Transit, observes that the cost of fuel was only a minor part of the decision at the time, but increased costs of natural gas and electricity now present greater disincentives for transit districts to move toward cleaner alternatives. A similar concern is expressed by Jim McGrath, Environmental Manager at the Port of Oakland, who predicts that because of energy costs, a dredging project using an electric-powered vessel will probably move more slowly than if the Port were using a traditional diesel-powered dredge. For MUNI, which is operating several small CNG vehicles as a pilot project, the CNG price increase will be a factor when the project is evaluated.

Diesel fuel costs also fluctuate, even for long-term contracts through a purchasing pool with other transit agencies. Although August 2000 highs of over $1.00 per gallon seem low compared to gasoline, they are a stretch for an agency like AC Transit, which purchases 6 million gallons of diesel and 250,000 gallons of gasoline per year. Diesel costs to operate SamTrans buses and Caltrain are projected to increase almost 40% in next year's budget, despite conservation measures such as a bus repower project which improves fuel efficiency about 45%. On the positive side, transit ridership rates have boomed, in part because of the increased costs of gasoline.

Hydroelectric dam

Some special districts are well positioned to implement the combination of conservation and new production which is being proposed as the solution to the energy crunch. In addition to common conservation measures, East Bay Municipal Utility District (EBMUD) has changed the time of day for activities such as pumping to refill water storage tanks, and for some operations at its wastewater treatment plant. It is also asking the BAAQMD for permission to operate several emergency generators during Stage 3 alerts. In the future, EBMUD plans an energy management system to allow automatic timing of pumping operations for low-demand periods. The combination of strategically located generators and gravity-fed water supplies means that blackouts should not significantly affect water customers.

EBMUD is also a power generator. Like many wastewater agencies, EBMUD has a co-generation plant which uses methane produced during sewage treatment to generate about 40% of the power used in the facility. Hydroelectric power generated at Pardee Reservoir in the Sierras is usually sold to Automated Power Exchange, and offsets the costs of electric usage within the EBMUD service area.

EBMUD and water interests in Amador, Calaveras and Alpine Counties are participants in a Joint Powers Agreement to purchase PG&E's reservoirs along the Mokelumne, a proposal which began before the energy crisis arose. While this partnership was formed mostly to ensure that hydropower generation was controlled by a public entity concerned about environmental and water quality issues, some cities in EBMUD's service area have also been interested in exploring power arrangements with EBMUD if the agency wishes to move into becoming an electric utility.

Other agencies such as wastewater treatment plants and sanitary landfills generate electricity as part of their other operations; usually, this power is not sold, and siting issues have been addressed when siting the original facility. However, the Port of Oakland has been approached about being a site for a new "peaker" power plant, to be used during times of high demand. New power plants are cleaner than old ones, but West Oakland neighbors are already concerned about air quality near the Port, and a new power plant may not be welcome. Other new plants may also be proposed for public agency property. How many will be needed will depend on whether conservation and other measures can ensure that energy is used efficiently and effectively.

Leslie Stewart

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