HomeMy WebLinkAbout12 WAPA NCPA Agenda Item #
PubNc Utility District
Memorandum
To: Board of Directors
From: Stephen Hollabaugh
Date: July 16, 2004
Subject: Assignment of Western Area Power Administration (WAPA) contract
with Northern California Power Agency(NCPA) and Day-Ahead
Firming Contract of WAPA energy.
Why this matter is before the Board — This matter includes the Board authorizing the
General Manager to sign a Western Contract when the contract is finalized by WAPA
and meet WAPA's schedule.
History- The District has received an allocation of federal power from WAPA's
Central Valley Project (CVP). This allocation of power starts delivery on January 1,
2005. The District is located within Sierra Pacific Power transmission control area while
the CVP power is currently located (see new information) within the California ISO
control area.
New Information — In order to minimize transmission costs and maximize the value of
the WAPA electric resource, NCPA and WAPA have been working on a "Assignment of
Energy" of members of NCPA with WAPA allocations to NCPA under a pooling
arrangement. The assignment of Western allocations to the NCPA pool is expected to
provide positive economic benefits in the following categories. 1. Reduction of ISO
transmission access charges, 2. Increase in total WAPA energy available to the Pool, 3.
Increase the WAPA resource optimization (load shape). By pooling the District
allocation at NCPA it also solves transmission issues between the ISO (or possibly
AMUC) control area and Sierra Pacific's control area.
Recently (see press release of July 13, 2004 attached) Western selected the
Sacramento Municipal Utility District (SMUD) to host sub-control area operations for the
Sierra Nevada Region of Western beginning Jan. 1, 2005. This is good for the District
and NCPA.
WAPA has a deadline of August 13, 2004 for a customer to name their transmission
delivery point. Meanwhile, NCPA and WAPA are finalizing the "assignment of energy"
contract that will let NCPA pool the energy for its members. The Western energy is run
of the river non- firm unless a member decides to sign an additional contract firming the
energy. The NCPA pooling members have decided that Day-Ahead firming would be
required to schedule this energy on a daily firm basis. Since the District's WAPA energy
will be pooled with the other NCPA members, it is a good idea to have our energy firmed
on a Day-Ahead basis also. It is unclear if the Day-Ahead firming contract should be
signed by NCPA or the District. This is currently being worked out between NCPA and
WAPA
Recommendation—
A. I recommend the Board authorize the General Manager to sign an
assignment contract among NCPA, the Western Area Power
Administration (WAPA) and the District.
B. I recommend the Board authorize the General Manager to sign a
day-ahead firming contract with WAPA when appropriate.
FOR IMMEDIATE RELEASE: July 13,2004
MEDIA CONTACT:
LaVerne Kyriss,720-962-7050,cell: 303-570-8226, kyriss@wapa.gov
David Christy,916-353-4436, christy@wapa.gov
WESTERN SELECTS SMUD TO HOST CALIFORNIA SUB-CONTROL AREA
FOLSOM, Calif.—Western Area Power Administration selected the Sacramento
Municipal Utility District to host sub-control area operations for the Sierra Nevada
Region beginning Jan. 1, 2005.
"We selected SMUD based on the five criteria (flexibility, durability, certainty, operating
transparency, and cost-effectiveness) identified in our public process," said Jim
Keselburg, Western's Sierra Nevada regional manager. Western will execute the contract
and necessary agreements with SMUD and will develop the necessary detailed operating
protocols in the near future. SMUD's board of directors must also approve the contract
before it can be signed and become effective.
Western completed a nine-month public process to identify a preferred operating
configuration for use after its existing contracts with Pacific Gas and Electric Company
expire Dec. 31, 2004. Western then becomes responsible for arranging and meeting most
of its own supplemental power and transmission needs. Under the existing contracts,
PG&E acts as the interface with the California Independent System Operator.
As a sub-control area, Western will schedule power deliveries for Project Use
loads and customers directly connected to its transmission system and in other control
areas. Western will match generation and load, provide reserves and frequency support to
meet reliability criteria, and submit generation schedules to the host control area, Western
will manage net power flows at the sub-control area interconnection points.
As part of the decision, Western's Pacific AC Interne line will remain within the
California Independent System Operator's control area and Western will implement
procedures with Bonneville Power Administration to enhance transmission system
reliability across the California-Oregon border.
Western's Sierra Nevada Region markets and transmits Federal
hydropower from the Central Valley Project to preference customers in Northern and
Central California.
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MEDIA ADVISORY: Visit http://www.wapa.gov/sn/initiatives/t)ost2004/opScenarios/
for more background information on this decision.