Roseville Electric Utility has a diverse portfolio of generating resources that is used to meet the electric needs of the businesses and residences in the City of Roseville. As part of these generating resources, the electric utility owns and operates two natural gas powerplants, the Roseville Energy Park (REP) and Roseville Power Plant 2 (RPP2). These are local generating facilities that are directly connected to our electric system and are important assets in maintaining electric service reliability and helping keep our electric rates low.

To support the operation of both facilities, Roseville Electric Utility entered into two gas transportation contracts with the Pacific Gas and Electric Company (PG&E) in November 2019 to deliver natural gas to each of the power plants. These negotiated gas transportation contracts provide the electric utility with more cost effective delivery service than what was proposed under PG&E’s standard rates, and helped ensure that our natural gas power plants were more cost effective to run and serve the community. These contracts will expire on December 31, 2022.

In effort to minimize the cost increase from the expiration of these gas transportation contracts, Roseville Electric Utility, along with other utilities in the region, have been actively involved in PG&E’s current rate case before the California Public Utilities Commission (CPUC) for replacing these negotiated contracts. As part of this effort, PG&E has proposed two new gas transportation contracts while its proposed rate case is being reviewed by the CPUC.  The two gas transportation contracts establish the costs for natural gas transportation service on PG&E’s system. Both contracts will go in effect on January 1, 2023 and are expected to be in effect until the third quarter of 2023, contingent on the final approval of PG&E’s rate case by the CPUC.

These contracts provide an important mechanism to manage our near-term gas transportation costs associated with the operation of our natural gas power plants while PG&E’s rate case remains under review by the CPUC. Roseville Electric Utility will remained actively engaged in PG&E’s rate case before the CPUC to minimize the longer term cost impacts of PG&E gas transportation rates onour power plant operations.

The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA Statute State Guidelines §15060(c)(3) and §15378.  The approval of rate contracts meets the above criteria and is not subject to CEQA.  No additional environmental review is required.

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Dominick Casey, City Manager