HomeMy WebLinkAbout7/8 NCPA UAMPS Commission Memeber ....... ............................ ......
Agenda Item #
Yt • y
Staff Report
To: Board of Directors
From: Stephen Hollabaugh
Date: February 10, 2005
Subject: NCPA, UAMPS, Joint Power Agencies and Project Update
NCPA Commision Member and Alternate Commission Member
History- Truckee Donner Public Utility District has been a member of NCPA
since 1989 and a UAMPS member since 2000. Both of these joint power
agencies support Truckee Donner PUD in the delivery of reliable energy to our
customers.
I would like to give an overview and history of NCPA, UAMPS and a few projects
that may involve Truckee Donner PUD and these Joint Power Agencies. This
overview will consist of four power point presentations.
• NCPA Overview
• UAMPS Overview
• Constellation Power Supply Contract
New Information — Jim Maas has been Truckee Donner Public Utility District's
commission member since we joined NCPA in 1989. It is difficult to go to an
NCPA meeting as serve as commissioner unless you have been following the
flow of issues consistently for a period of time. Currently the General Manager is
appointed as alternate commissioner. Assistant General Manager Stephen
Hollabaugh has been attending the UD (Utility Director) meetings representing
Truckee Donner Public Utility District for quite some time. Stephen is probably
most current on NCPA issues that come before the NCPA commission. At this
time we need to replace Jim Maas as commissioner and appoint an alternate. I
would like to suggest appointing Tim Taylor as commissioner to NCPA and
Stephen Hollabaugh as the alternate.
Recommendation- Appoint Tim Taylor to serve at the commissioner to NCPA
and Stephen Hollabaugh to serve as the alternate commissioner to NCPA.
.................. ...
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NCPA GOVERNANCE
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NCPA today
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1990's fully functioning
Operating Plants - Independence
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maintenance and upgrades
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s 2it'd d;+ s Associate Members
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Additional generation through the
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market
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Collierville 244 megawatts (MW)
Used for capacity & peaking
Storage reservoirs provide reserve
o Spicer Reservoir 5 MW
189,000 acre feet of storage @ Spicer
o Weather considerations affecting O&M
Collierville units run 24/7 and are bid
into regulation market
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Jane Dunn Cirrincione
Assistant General Manager
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Legislative & regulatory
representation
State and federal Levels
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Representing the needs of consumers
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E Optimizing the federal power resource
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Federal lobbyists: Kanner and Associates
? State lobbyists: Government Affairs Consulting
Regulatory Counsel. Spiegel and AAcDiarmid
0 Alameda Plumas-Sierra
BART & Port of Oakland
* Biggs o Placer County }
o Gridley Water Agency
o Healdsburg * Redding
Lodi * Roseville
Lompoc * Santa Clara
o Palo Alto o Turlock
Truckee Donner p
Ukiah
10
1
NCPA Legislative and Regulatory Affairs
Committee:
Chair: Vice Mayor Jason Liles, City of
Healdsburg I
Vice Chair: Councilman Pat Kolstad, City
of Santa Clara
o Federal Energy Policy Legislation
ISO Cost Control/Accountability
Trinity River Loss of Benefits
Appropriations for Western Programs
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( « Local control � ^
) « Exit Fees CALIFORMA RUJOLIC (
; , Renewable Portfolio Standard `
) e Resource Adequacy )
! , Bold Plan
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| Accountability
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Development/ISO Reform [
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( « Trinity River Lo s of Benefits
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) - P sl20 4 Marketing Plan Implementation
( Issues
* Trinity River Loss 9B Benefits
} * Funding of Western Programs
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| * CVP Corporation |
( * Pmm&a! a%«mitna Federal Power `
! Program Benefits
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[ * NCPA Federal Pd|c Conference )
( (April 25 2% 20 4 )
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| e Targeted Lobbying DGe alonc ]
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Join NCPA L&R Committee
€ Attend Grassroots Lobbying Events
v Receive Regular Communications About
Policy Positions and Strategies Through
This Week At NCPA
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g Don Dame
a Assistant General Manager
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Assistant Ceoeral Manager
AdministraBve Assistant Mm 3}m"
Contracts,IA industry Mgr Coordinated Pool and Trans.Planning
Support Mgr Restructuring.Mgr System Operations
Portfolio Manager &Design
yf ki �'�.akett 3are 1}0 n3�a eE' t icti Y}xusx Tan:t.ec 3 ss Pereira
,,,�,� . Supv. Real-Time Ops Schedulrrs
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Dispatchers $Cs '"
i�:� . 1_ _ PX/SC Lead Person
t• E�EC b�. Lfi?, _
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Chuck Barnes
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* Deregulation in California
e NCPA IA to MSS G
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io Power Pool / Planning / Trading
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4 Scheduling, Dispatch and Schedule
Coordination
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. ................... .
The Basic Power Industry
r='s^n Transmission
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Pre4998 PG&E/SCE t PG&E/SCE PG&E/SCE
NOW. ANY COMPANY I PG&E/SCE
(Unregulated) (Regulated) (Regulated)
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Electricity is not a commodity
Complexity is not a virtue
Competition is not perfect
The market is not free
o we're repeating history
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Severe economic consequences
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( + Lodi - Ukiah
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Pool members will transact
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§ man the alternate price. (
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I Schedule plants and contracts to meet
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loads and sales obligations
Load Following
24 hour/day operation
Daily, hourly adjustments
Load at lowest cost
Scheduling for Truckee Donner PUD
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Wholesale power capabilities
Contracts & planning expertise
Real-time market operations
Preparing for the future
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20
JAIMPS
UAMPS
Provides joint service to its Members
Services that cannot be provided alone
Provides services more economically and
efficiently
Planning, generation and transmission
Firm power supply
* Power resource contracts
Schedules members resources
Power Pool
Government and Public Affairs
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1
Member Map
Sit iV ✓ A '% 0 .Oly .Y r-. N4 t
we.'m.3'E+us€
UAMPS
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45 Members
38 members in Utah
1 member in California
2 members in Arizona
2 members in Idaho Falls
1 member in Nevada
1 member in New Mexico
LUNK
2
: � ' OVNAN
Member Representative
Each Member appoints a representative by City
Council or Governing Board Action.
Each participant has a vote at a Project
Management Committee meeting.
Each Project Management Committee elects a
committee chairman annually.
The Project Management Committee makes
recommendations to the Board of Directors.
w
tt
Board of Directors
Elected from the Member Representatives for each
Project.
11 Positions
4 largest entitlement shares are deemed
7 elected from remaining participants
u Four Year Terms
a Act Upon Project Management Committee
recommendations
Accept or reject but can not modify recommendation
3 Rejected action returns to the Project Management
y Committee for further discussion
3
-4111-1 --
Officers
Elected from the Board of Directors
Serve One Year Terms
MWIM
ANY " P�ifC
4
Truckee Donner PUD
� i Representative
Stephen Hollabaugh — UAMPS Member
Representative
Two Members
Allocation of Costs
No Cross Default
Project Management Committee
Board of Directors
$
5
IR E0 :I NEEDS
Member autonomy
Members are responsible for their own
resource needs
* Members elect to participate in projects
based on their individual resource need
UAMM
. COOL IROIE
..F
Unplanned Pool Transactions
Hourly resource clearinghouse
Matches surplus members with deficit
members on an hourly basis
Planned Transactions
Members may enter into planned
transactions with each other or with
UAMPS
LUVAK
13
6
` j" COOPERATIVE POOL
* Participants would sell their surplus
resource at all in cost and purchase
deficit needs from a participant on the
same basis
Participants would stack their resources
using their knowledge. UAMPS would
account for the over/under position by
participant, by hour
13 MAM
The Cooperative Pool may also provide
a single point access for participation in
an effective manner to manage
transactions through the PX
Truckee Donner PUD
Member of DAMPS (not equity member)
Project participation
Resource Project
IPP Unit 3
RISOURCI LWYA
The Resource Project was formed in
January 2001 to proactively seek additional
resource ownership opportunities for the
DAMPS members. A qualified committee
evaluates, researches and recommends
potential sources for diversified capacity
and energy that will support and
compliment the DAMPS mix.
_ 6 ...E k
16
8
y - > it Project
IPP Unit 3 Project was formed in 2005
to move into the Development phase of
IPP Unit 3.
s e 4 m
9
a
Constellation Power Supply
Contract - Overview
. Term of Contract
s Truckee Donner PUD Credit Protection
• Constellation Power Source Protection
• Transmission
• Corporate Guarantee
Transaction Confirmation
Mock Purchases
Cali option
Put option
• Load Coverage
Term of Power Supply Contract
• April 1 , 2003 through December 31 , 2007
• 2008 forward ???
t
Truckee Donner PUD Credit
Protection
i Constellation Power Source (CPS) is a
marketing subsidiary of Constellation Energy
Group (CEG) is the parent of Baltimore Gas
and Electric and owns over 9,000 MW of
generation.
. CEG will provide TDPUD an unconditional
guarantee to cover any liquidated damages or
termination payments that may be due to
TDPUD from CPS.
v{a
Constellation Power Source
Protection
• CPS has granted TDPUD a $12.5 million credit
threshold.
• Should market prices fall and CPS's mark-to-market
exposure to TDPUD exceed $12.5 million, TDPUD
would be required to post a letter of credit to secure its
performance.
• Energy prices would have to fall below $251MWh. This
has not happened.
• CPS will have the right to terminate the contract if
TDPUD fails to set rates and charges at a level
sufficient to cover all obligations of the contract.
2
Transmission
• CPS will pay all transmission charges to the
delivery paint on the Sierra Pacific Power
Company (SPPC) transmission system
• TDPUD will pay for all transmission casts to
wheel through SPPC's system to the
interconnection with the District.
• The District's transmission is covered under its
existing Network Transmission Agreement with
SPPC.
262 M1k1 4 '600 N4W
Y7i F'i f^'
43 S{l
k
100
s - so rnw
: 4 "0hAW
220 M N
�x so MW
LADWP
Anahiem
iButbank
3
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Corporate Guarantee
• CEG has delivered a corporate guarantee in
the initial amount of $5,000,000. The
guarantee is unconditional and has a
termination date of December 31 ,2007.
4
Transaction Confirmation
e TDPUD and CPS entered into a three part transaction
that, taken together, replicates a full requirements
arrangement. The intent of the transaction was to
separate the pieces and to purchase only the amount
of "swing" capacity and energy the District actually
requires. These three parts are:
Block Purchases
Cal: Option
Put Opt;on
Transaction Confirmation
(Continued)
e Block Purchases
- The block purchases are designed to meet the
District's average projected load for each month. All
energy delivered under the block product is priced
at $49.951 MWh.
(This has been a great deal compared to rising
prices since we entered into the contract)
5
Transaction Confirmation
(Continued)
• Call Option
TDPUD has purchased the right to call additional energy, if
necessary to serge load in the following amounts-
If TDPUD exercises the right to purchase additional energy,
the District will pay the Palo Verde index, shaped accordingly
to the time of day plus$4.50iMW h. The call premium is
2.001MWh of call capacity
Peak Off- Peak
Nov - April 6 MW 16 MW
May - Nov W 15 MW
�e
Transaction Confirmation
(Continued)
• Put Option
TDPUD has purchased the right to sell surplus energy. if
necessary, in the following amounts:
If TDPUD exercises the right to sell additional energy, the
District will receive the Palo Verde index, shaped accordingly
to the time of day less $3.50,'MWh. The put premium is
2.001MWh of put capacity.
Peak Off- Peak
-- -
Nov - April 6 MW 5 MW
- -----
May - Nov 6MW 5 MW
6
c
Load Coverage
• The combination of Block Purchase, Call
Option, Put Option and an allowable 2MW
bandwidth within the District's network
transmission service agreement will cover the
District's load for all but a few hours during a
holiday week in which the District will purchase
a few extra MW's. Excluding those hours, the
District will have covered all of its proiected
load.
Load Coverage (Charts)
- ____ _ _ -
I.—,2002 �'.., {X APp0I 2002
c 4 ,. raf� +'`'�� ro ;• •. jY�,r '#Sr}�? �'r r; ��
7
Monthlylock
Requirements-
Peak Hours
High Load Hours -MW
ne ra at aa . a«
(January j 21.. 21'. 211, 21'. 21f
February 20, 20 19 20 20:'.
March ._. 18 _. 19. .... 18 _..18: _.19',
April... 15, 16. _..14 .....14 ...15'.
May -- 15 -- 15: --14 _14, 14'.
June._ _._. 15 16. 14 _14. _15%.
July 17 17 15 16i 16;
August __. 17 _... 17, __...15 16: 16i
—us
i Septembe( 16 16; 14; 15 15i
October 16 16� 16 16i 16"
'- November _... 18 ... 18, .....17. ....18 .18,:
December' 20 20' 20 20 21
MonthlyBlock Requirements-
O
Peak Hours
IN
Low Load Hours -MW
to aa., ei fo. tt
''.January 16: 17i 17' 17, W
:February ! 16 _.16 ._..16, ...17. 1T
:March _... 15. . 15. 15; _16; W
::April 12i 12 13'. 13' 13'.
;May...._ 11 12. 12 12 _12!
June 11 11 12: 12� 12';
July ... ... 12 _.12' 13 _13, _13:
August 12 12 12. 12' 13:
Septembet 11 11 11 12 12'
.October - 11 11� 12' 12: 121
:November 13 _.14 14; ._14� 14
December 15 16. 16: 16 17�;
8
Monthly Block Requirements-
Sunda
Peak Hours
Sunday High Load Hours -MW (MW added to LLH)
a_t t-a to as-, t.t
January 21 22':. 22 22 23,
February _. 21 _... 21: 21 _22 22;.
March _.. 18 _... 18 _._18 _19 19':.
',.April 15:• 15': 16'. 16'. 16'
May..... . ..._. ,14 __.15, __.15 ..15' ..15.
June... .... 14 _.. 14: _..15. _.15, 15.;
July..... 16: _. 16, .._.17 _..17, 17'..
__. _ _. _.
iAugust 16; 16• 16 16. 17''
September 15 15 15 16 16
October 15' 15 16 16 161
November; 17 1& 18 18: 18'
December: 20 21 21 21 22'
9