HomeMy WebLinkAbout4 UAMPS Agenda Item #
o
Memorandum
To: Board of Directors
From: Stephen Hollabaugh
Date: December 15, 2005
Subject: Consideration of a Transaction Schedule on the Master Firm Power Supply
Agreement for the Shaped Capacity and Energy resource with UAMPS for the
period of Jan 2008 through March 2009.
History:
The District has been a member of UAMPS since August 2000. When the District joined
UAMPS, an agreement for "Joint and Cooperative Action" was signed. Currently the District
is in the Resource Project, the IPP #3 Project, the Pool Project, and the Master Firm Power
Project of UAMPS.
New Information:
In order to optimize the use of existing UAMPS resources, UAMPS is developing a new
resource for the Firm Power Project which will be made up from surplus entitlements of
Participants in the IPP and Payson Projects. UAMPS staff believes this resource will benefit
both the purchasers of the resource as well as the participants who assign their surplus
capacity to the resource. In order to establish this new resource named "Shaped Capacity
and Energy" or SC&E, UAMPS needs its Members to determine the amount of surplus
capacity that each Member will assign to the UAMPS pool to develop the Payson Project
resource and the amount of SC&E resource that each Member will subscribe to for their
resource needs.
Truckee Donner PUD future Power Supply Plans:
The District currently has a power supply in place with Constellation Power Source (CPS)
through the end of 2007 and is planning on participating in the Intermountain Power Project
Unit 3 (IPP#3) that is scheduled to be in operation in 2012. The District has a need for power
supply starting in 2008 through 2011. (See Chart 1 "Yearly Power Supply Plans) The SC&E
resource that UAMPS is proposing will be consummated at the UAMPS meeting scheduled
for December 20 and 21, 2005 in Salt Lake City.
Truckee Donner PUD Power Supply Opportunity for 2008:
The SC&E project will be cost based. This means the cost of generation is based on the
actual cost to generate that energy not the current market price. The price of the SC&E
project consists of a capacity and energy charge combined to make the blended or bus bar
price. I have estimated a scheduling and transmission charge to have the power delivered to
Page 1 of 2
our transmission point of receipt on Sierra Pacific Power Company's transmission system. I
estimate the price for this energy for the period starting January 2008 through March 2009 to
be $59.84 per MWh. This price compares favorably to the current market prices. (See
Megawatt Daily Day Ahead and Long Term forward prices dated Dec 14th) I have asked
Constellation (CPS) what the price in 2008 would be and as of December 15th, the price was
$72.00MWh This is down from last weeks price but still much higher than the SC&E
resource through UAMPS. (See Chart2 "2008 Options for Power Supply"). In order to grasp
the magnitude of this difference in price, I have created a chart that estimates the Retail Rate
Increase that each of these options would produce. I assumed that each 1% increase in
rates was approximately $180,000. (See Chart3 "Estimated % Retail Rate Increase due to
Power Supply"). This chart shows that the SC&E option would require approximately a %5.80
vs. a %16.0 increase through the market.
If the District were to subscribe to the SC&E resource, the energy would be scheduled from
UAMPS to the Sierra Pacific Power Point of receipt similar to the way it is today. The District
has to schedule in whole MW's to meet its load needs. (See Chart "Dec 131h Schedule vs.
Load).
How the District would Participate in the SC&E Resource:
UAMPS has requested that each member interested in receiving energy from the SC&E
resource complete the EXHIBIT OF THE MASTER FIRM POWER SUPPLY AGREEMENT
FOR THE SHAPED CAPACITY AND ENERGY TRANSACTION SCHEDULE that is
attached. The exhibit requires each member to fill out the addendum for the HLH (On peak),
LLH (off Peak) schedules along with the Capacity (kW) requested by month. I have filled out
the addendum with what the District needs would be for the period starting January 2008
through March 2009. The final cost of this project will be determined on December 21, 2005
when the IPP assign their surplus to this project and the requests for energy are totaled.
There is a risk that the amount of IPP surplus energy assigned is not adequate to meet the
needs of the other memlieve this bers. This could raise the price or members with needs
may have to reduce their request. I still bewill be a good project to stabilize the price of
power for the District. I would like to request the Board give me the flexibility to evaluate this
SC&F resource and if necessary reduce our requested amount or possibly not participate if
the price appears to be too high. The price would go up if there is not enough IPP surplus
power assigned to this project. I will report back to the Board at the first scheduled meeting
in January 2006 as to the outcome of this resource.
Recommendation: Authorize the Assistant General Manager who is the Member
Representative at UAMPS to sign the Transaction Schedule on the Master Firm Power
Supply Agreement for the Shaped Capacity and Energy resource with UAMPS for the period
of Jan 2008 through March 2009 and the authority to change the addendum amounts if the
project changes substantially from what is currently anticipated.
Page 2 of 2
i
Chart1
Yearly Power Supply Plans
$12,000,000ti . 200,000,000
v. S5„, ^`'^"9 L. �v v `*x'`"a�"�+"•� L"• �'w, `'v�." S"�xw,`�"}"' `•., 180,000,000
$10,000,000
b Lbw Lh + 160,000,000
Z`•n' L •, v„�r.5�,.v,. "� L •� v �yw v'v,�^sk .,v. v�.' v
,^L„ vs4•v s;`..' `ws. ��v��`' ,.•`^L�v^�i � V%v^'�,yv �`"^, ..• ry
` $8,000,000 ,,r 140,000,000
a �" ,"kh }*.:" w"v'+.i ,. 4"2k'�L, s4"�`'M" •••.` "v y�;"" ' `'+Li`"�c"v" 'k 120,000,000
O ,ti v `�s.; v, v '"'•., v'w" v'�.�s'' `w v,`s` kL.Lv,`x ,„, ..
W ;,.'LL 4 � L � "�•, ��`•, vw��,, } . .O ..... _..
$6,000,000 w Power Supply Under Contract
v L :v w 100,000,000 T -->--Load kWh PY
1• "v �� L ryir J
T "" L j LLL i L
yM1 1
MwLv ` r 80,000,000 }
$4,000,000
. v •` v
60,000,000
$2,000,000 40,000,000
„J � ,v +% wSv,+L,v kw? w� �M`�u�.L�' .4 v�.v4 '•�'w" L`"`••ti�
,Lw ',, F• M Y
••a" ��L �.�}. L k .. +v L"� v'` ivi�";Lv,,vikv"*v"'+�,�"+v�v*L� v``.v v s;:
20,000,000
0
2005 2006 , 2007 2008 2009 ' 2010 2011 2012 2013 2014
CPS CPS CPS None None ; None None IPP#3,IPP#3,IPP#3
Year
Page 1
Day-ahead markets for
West Index Change Range Dean Volume Avg$/Me
on-Peak
COB 132.29 -4.95 131.75-132.90 14 375 124.67
Mid-C 128.42 -5.11 127.00430.25 121 3,075 121.31
Palo Verde 113.26 -0.58 111.75416.00 62 1,750 104.63
Mead 121.73 -2,38 119.50-124.00 43 1,650 114,21
Mona 128.25 -4.75 128.25-128.25 N.A. N.A. 119.75
Four Corners 119.52 -0.96 118.25-121.50 16 400 112.13
NP15 131.65 -5.67 129.00-133.00 60 1,500 124.04
SP15 131.20 -6.18 128.00-133.00 208 5,625 123.73
off-Peak
COB 111.53 1.28 109.50-113.50 10 250 101.86
Mid-C 110.17 1.30 107.75-112.50 87 2,225 100.37
Palo Verde 92.09 -1.08 90.50.93.00 18 450 89.83
Mead 91.88 -2.29 91.25.92.50 17 450 91.10
Mona 95.00 -1.00 95.00-95.00 N.A. N.A. 92.85
Four Comers 93.75 -1.00 93.75-93.75 N.A. N.A. 90.66
NP15 100.09 -2.26 97.50-102.65 49 1,275 97.90
SP15 96.02 -2.87 94.25-98.65 123 3,425 96.28
*Ontario prices are in Canadian dottars
t
s
i
MEGAWATT DAILY THURSDAY,DECEMBER 15,2005
East
Jan Feb Jan/Fab06 Mar/AprO6 May06 1un06 Jul/Aug06 Sep06 Q406 CY06 CY07 CY08 T
Mass Hub 159.00 155.00 157.00 124.25 105.00 109.00 126.00 107.25 109.50 122.00 107,45 97.20
PJM West 125.15 124.85 125.00 103.75 89.95 97.65 114.50 90.35 85.50 101.75 87.30 77.35
N.Y.Zone-G 146.85 142.85 144.85 - - - 134.30 - 122.00 112.50
N.Y. Zone-J 177.00 173.00 175.00 - - - 160.00 - 143.30 133.45
N.Y.Zone-A 125.50 123.50 124.50 - - - 10&05 101.00 91.75
Ontano' 138.00 134.00 136.00 - - - 123.50 - 117.75 11.4.75
TVA, into 95.25 93.05 94.15 - - - 89.25 - - 84.00 73.00 -
Central
Jan Feb Jan/Feb06 Mar/Apr06 MayO6 Jun06 Jul/Aug06 SepO6 Q406 CY06 CY07 CY08
Cinergy Hub 98.15 97.65 97.90 81.20 71.25 79.25 96.80 71.00 67.00 81.20 68.90 63.25
NI Hub 96.15 95,75 95.95 76.80 68.85 74.95 91.95 65.90 61.40 76.95 64.80 63.75
Entergy,into 100.55 100.90 100,75 93.35 87.25 89.60 98.70 89.40 84.70 92.15 82.20 72.60
ERCOT 102.00 102.35 102.15 92.40 90.40 105.10 115.70 99.75 88.00 98.30 86.15 76.35
West
Jan Feb Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 CY06 CY07 CY08 CY09
Mid-C 126.00 123.00 119.00 61.00 91.50 91,00 88.00 51.50 78.00 74.75 90.60 73,05 61.95 56.25
Palo Verde 115.00 111.00 110.50 90.50 110.00 91.00 93.00 80.00 93.50 80.00 100,50 86.60 75.05 72.00
NP15 132.75 128.75 125.75 93.25 115-00104.00 101.75 82.25 99.00 89.75 109.50 93.20 83.40 75.25
SP15 132-00 129.00 126.50 96.25 116.00102.75 101.50 85.00 103.00 89,00 110.40 94.60 84.25 75.75
'Ontario prices are in Canadian dollar figures
t All forward prices are for onpeak delivery
4i CWYn9ht®2005,The McGraw-Hill Companies
Chart2
2008 Options for Power Supply
$14,000,000 $75.00
$70.00
$12,000,0004
"
$65.00
w 4Y r '
a $10,000,000 -2
a ~~
r,,, $60.00
v
$55.00 Annual Cost-
a w/DAMPS 2008
a > v
o $8,000,000 ,, � �� � g Annual Cost w/Market 2008
** — DAMPS Option $/MWh
o w Y wn kKw $50.00 Market Option $/MWh
R $6,000,000 N {
d $45.00
4 YY '
K $40.00
$4,000,000
$35.00
$2,000,000 $30.00
2005 2006 2007 2008
Year
Page 1
Chart3
Estimate % Retail Electric Increase due to Power Supply
$14,000,000 18.0%
v `
$12,000,000 k 16.0%
a
.y
14.0%
$10,000,000 xr'
IN
12.0%
"v
a` "4
a v fi 'w
$8,000,000
x 10.0% ( Annual Cost w/UAMPS 2008
FWMI Annual Cost w/Market 2008
a
Retail Rate Increase w/UAMPS
$6,000,000 °� ri "� K.��,,y ', ,� 8.0% % Retail Rate Increase w/Market
j
r
n r 6.0%
$4,000,000
4.0%
$2,000,000 x
n v
2.0%
n�W a x w
$0 ;.
0.0%
2005 2006 2007 2008
Pagel
Truckee Donner PUD 2005 2006 2007 2008 2009
Annual Gross Load(kWh) kWh 145,382,066 150,360,868 153,368,085 156,883,657
Total Costs by Vendor
$/MWH 52.34 53.70 53.56 $59.67
Total Energy Supply- UAMPS in 2008 $ 7,609,621 8,073,663 8,214,110 $9,361,462
Transmission- SPPCo. $ 901,136 893,023 951,106 966,353
Scheduling- NCPA $ 74,400 74,400 76,260 78,167
TOTAL BULK POWER COSTS $ 8,585,157 9,041,086 9,241,476 10,405,981
Total Delivered Cost$/MWH $/MWH $59.05 $60.13 $60.26 $66.33
Corresponding Residential Rate Increase $ $161,919 $19,568 $952,668
Each %equals approx$180,000 % 0.90% ° °
0.11 /° 5.80/o
$/MWH $72.00
Estimated Market Price 2008&$78.3/MWh $ $11,295,623
Transmission- SPPCo. $ 966,353
Scheduling - NCPA $ 78,167
TOTAL BULK POWER COSTS $ 12,340,143
Total Delivered Cost$/MWH $/MWH $78.66
Corresponding Residential Rate Increase $ $2 886 829
Each%equals approx$180,000 % 16.04%
Chart Dec 13 Sch vs Load
Dec 13th Schedule vs Load
25
20
15
3: EM Load Forecast
—+--Actual Load
10
I'V
5
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
HourofDay
Pagel
EXHIBIT
OF THE MASTER FIRM POWER SUPPLY AGREEMENT FOR THE
SHAPED CAPACITY AND ENERGY TRANSACTION SCHEDULE
Agreement: Shaped Capacity&Energy Agreement("Agreement')dated
December 21,2005 between Lamps Pool and Uamps Firm attached
hereto.
Seasonal Entitlement Share: Each Participant will receive each month the monthly
capacity amounts,as listed on Addendum attached hereto.
Energy associated with the monthly capacity amounts shall be the
sum of its HLH block schedule and LLH block schedule as listed on
Addendum attached hereto. The HLH block energy and the LLH
block energy can not exceed the monthly capacity.
The HLH block energy means the sum of the HLH block schedule
per hour for each day of the month including Sundays and NERC
holidays starting hour ending 0800 through hour ending 2300 MPT
The LLH block energy means the sum of the LLH block schedule per
hour for each day of the month including Sunday and NERC holidays
starting hour ending 2400 through hour ending 0700 MPT,
Term: December 21,2005 to March 24,2009
Rate: Capacity and rates will be as listed in Exhibit 2 to the Agreement plus
administrative and general costs,scheduling and wheeling fees as
approved by the Board of Directors in the budget for the UAMPS
Master Firm Project.
Truckee Donner PUD
By
Date
UTAH ASSOCIATED MUNICIPAL
POWER SYSTEMS
By
Date
z
i
i
s
ADDENDUM
Capacity HLH Block Schedule LLH Block Schedule
kW kW (kW
Janua 2006
Februa 2006
March 2006
A 612006
May2006
June 2006
Jul 2006
Au ust 2006
September 2006
October 2006
November 2006
December 2006
Janua 2007
Februa 2007
March 2007
A ril2007
May 2007
June 2007
Jul 2007
Au ust 2007
Se tember 2007
October 2007
November 2007
December 2007
Janua 2008 25000 25000 19,000
Februa 2008 25000 25000
March 2008 16,000
23000 23000 1 ,000
A ri12008 21,000 21,000 14,000
Ma 2008 20,000 20,000 14,000
June 2008 19,000 19,000 14,000
Jul 2008 22,000 22,000 15,000
Au ust 2008 21.000 21,000 15,000
Se tember2008 1s,0oo 19,00o
14,000
October 2008 20,000 s
2a,000 15,000
November 2008 24,000 24.000 17,000
December 2008 25,000 25,000
Janua 2009 2o;aoo
25,000 25,000 20,000
Februa 2009 25.000 25,000
March 2009 23,000 23,000 16,000 t
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