HomeMy WebLinkAbout15 Districts CVP base resource to plumas sierra Agenda Item # 15
DONNER
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.. PublicDistrict
ACTION
To: Board of Directors
From: Stephen Hollabaugh
Date: June 04, 2014
Subject: Consideration of a WAPA CVP Base Resource Termination with
NCPA and Re-assignment to Plumas Sierra REC
1. WHY THIS MATTER IS BEFORE THE BOARD
This matter involves assigning the District's CVP Base Resource to Plumas Sierra
REC.
2. HISTORY
Truckee Donner PUD and the City of Fallon (Truckee Donner Fallon) currently assign
our WAPA Base Resource (BR) to NCPA. This resource is sold through the NCPA
Pool and the balance is sent to UAMPS to sent MWh's to Truckee Donner Fallon. This
arrangement is laid out in a letter agreement with NCPA dated September 1, 2004.
Starting July 1, 2014, UAMPS will be doing all the scheduling services for Truckee
Donner and NCPA will no longer handle pre-scheduling services for Truckee Donner.
This change to UAMPS will save Truckee Donner approximately $65,000 per year.
However, Truckee Donner will need to address the WAPA service with NCPA.
3. NEW INFORMATION
Truckee Donner sent a letter to NCPA, dated February 5, 2014, informing them that
the Power Management Agreement for pre-scheduling services will not be re-newed
after the current termination of June 30, 2014. Starting July 1, 2014, UAMPS will take
on these scheduling services. NCPA informed Truckee Donner that this arrangement
effects the WAPA BR that is currently being scheduled into the NCPA Pool. The
Truckee Donner WAPA BR is currently assigned to NCPA. Truckee Donner and
NCPA staff has several meeting concerning this issue. Two solutions emerged from
these discussions. The first was a letter agreement between NCPA, Truckee Donner
and Plumas Sierra to schedule Truckee Donner WAPA BR to Plumas Sierra and
DAMPS will schedule power to Truckee Donner. The second solution (a more formal
assignment) would request WAPA to terminate the assignment between Truckee
Donner and NCPA, and re-assign the power to Plumas Sierra. Plumas Sierra would
then assign the Truckee Donner back to NCPA. Plumas Sierra is a UAMPS member.
Plumas Sierra and Truckee Fallon will have a UAMPS Pooling appendix created that
will ensure that the MWh's will then be scheduled to Truckee Donner Fallon.
NCPA preferred the more formal arrangement so Truckee Donner sent a letter to
WAPA requesting the termination and re-assignment of their BR resource to Plumas
Sierra. WAPA will now go through the process of preparing the termination and re-
assignment forms for Truckee to sign.
4. FISCAL IMPACT
The Truckee Donner Fallon CVP Base Resource has varied in value over the years
due to water conditions and WAPA costs. This re-assignment could cost Truckee
Donner up to 5 percent of the value or about $25,000 annually.
5. RECOMMENDATION
a) Authorize the Board President to sign the WAPA Termination Assignment to NCPA
after counsel review and approval.
b) Authorize the Board President to sign the WAPA Assignment to Plumas Sierra REC
after counsel review and approval.
c) Authorize the Assistant General Manager (UAMPS Representative from Truckee
Donner PUD) to approve the UAMPS Pooling Appendix after counsel review and
approval.
404k
Stephen Hollabaugh Michael D. Holley
Assistant General Manager General Manager