HomeMy WebLinkAbout9 Power Supply Workshop Agenda Item #
Memorandum
To: Board of Directors
From: Stephen Hollabaugh
Date: February 24, 2006
Subject: Power Supply Workshop
History:
The District has a power supply contract in place with Constellation Energy Services that runs through
the end of 2007. This workshop will discuss the value of this contract as well as our current, short
term future and long term future needs and opportunities.
I put together a workshop, Brainstorming meeting on January 241" that was held at the NCPA
Roseville offices, concerning the future Power Supply of Truckee Donner. The meeting included
individuals from UAMPS, NCPA, Eldon Cotton who has strategically helped us in the past, District
General Manager and Board president. In the meeting we discussed several items concerning
Generation, Transmission, and market risk. Below are three "general concepts" that may be used to
develop our short and long term strategies concerning power supply to the District.
• Develop several small options — it collars risk
• Develop a rate philosophy—stable rates (includes stable rate increases)
• Cost based resource concept (used at UAMPS)
Attached is the power point presentation from the meeting for your thought and possible discussion. I
don't plan to go over this presentation at the Board meeting but thought you might learn of how
Truckee's generation situation is different from others in northern California.
New Information:
This is a workshop and there are not any action requested from the Board at this time. However
many of the subjects discussed will have action items coming to the Board in the future. This
workshop is designed to help the Board with the upcoming decisions needed from the District.
Here are some of the items to be discussed at this workshop. (I will be making a power point
presentation at the Board meeting; this is an outline of that presentation)
Page I of 2
Current: Now through Dec 2007
• Current Contract— Value of Current contract with Constellation
• Western Area Power Administration
o Current contract with WAPA and its value to the District
o Washoe Project (Stampede Dam Generation) — I have a meeting with WAPA on
Wednesday March 1, 2006 at their headquarters in Folsom. I'll give an update at the
Board meeting of the status and possible progress concerning this item.
Short Term Future 2008-2009
• UAMPS SC&E project status and projected pricing. Jan 2008 through March 2009
Longer Term Future needs and opportunities
• UAMPS IPP#3 status and schedule
• Resource 500 status
• NCPA "New Lodi" generation — presentation
• Market Opportunities that may arise.
Please feel free to discuss any of the items as they are discussed at the workshop. This can
be a complicated subject.
I will do my best to clarify any issues, opportunities or strategies that the District may use to
best serve our customers.
Page 2 of 2
Truckee ginner PUD
Future Power Supply Workshop
" Brainstorming Meet
January 24, 2006
1 :30 PM at
NCPA Office Conf.
Room
Brainstorming mtg of Jan 24, 2006
Electric System Information
x :ryti • 12,437 customers
89% residential
t w: - 42% of residential customers
are primary homeowners
.14* 4
. K • New Customers (Thru 7/05)
226 with 115 pending
Brainstorming mtg of Jan 24, 2006
Chart1
Yearly Power Supply Plans
$12,000,000
200,000,000
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Current Situation Purchased
Summary x t tl
• Current
- Contract protects against market volatility through 2007.
• Future (Market Uncertainty???)
- Power from the Washoe Project (WAPA Generation on
Stampede Dam). About 5% of load, non-firm.
2008 thru 2011 - When should we lock in a price and who's
crystal ball should we use? (Update UAMPS SC&E Project)
Debt of approx $3 . 5 million yearly ends 2012
Brainstorming mtg of Jan 24, 2006
TDPUD Projected Monthly
Average Requirements - 2008
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Truckeei u ion Page
Sierra Pacific NITS
• TDPUD had a tariff transmission agreement in place
with Sierra Pacific.
• Sierra Pacific: Network Integrated Transmission
Service (NITS)
• This tariff transmission service pays for delivery within
Sierra's control area to Truckee's Substation meters.
Brainstorming mtg of Jan 24, 2006
p
Strategic Questions *, Transmission
Please give GIs your thoughts
• Since we have some Western generation to the west, do
we want to try to secure transmission over Summit from
CAISO?
Historical Strategy: "Don't deal with the CAISO if at all possible."
• If CAISO has a FTR auction, should we acquire small
amount at Summit? q
• Keep transmission options open without losing
advantage of transmission deliveries at Gonder.
Brainstorming mtg of Jan 24, 2006
Strategic Questions Generation
Don 't hold back, What are you thinking ?
• If we are heading toward owing generation to lower our
exposure to the market. . . . .
- Where do we want to invest in generation
• East vs. West or some of both? How much?
• Currently 2012 position in IPP#3 (about $40 busbar)
- How do we take advantage of location , load profile,
'
and generation opportunities to lessen market
exposure?
• Opportunities in Nevada Green generation?
Brainstorming mtg of Jan 24, 2006
Strategic Questions — Generation
lima
• 2008 thru 2012
- UAMPS SC&E Project may serve some of our base load
needs. Where do we look for the remaining shape? (Show
graphs)SC&E e200 ri h TDF)�
• 2012 — Truckee has a position in IPP#3 but
- How do we shape and firm our portfolio?
- How to best diversify generation type and location?
• What is the best portfolio strategy for 2012
forward ?
Brainstorming mtg of Jan 24, 2006
Truckee Donner 2008 LLH
26,000
24,000
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Months
5 4M M1N
Other Strategic issues
What are we missing ?
We would like your • How to present this to a
recommendations, Board?
comments and
ideas. • Any cool graphs or
illustrations?
n
• How to simplify this
data but
get to the
point?
• Anything else?
Brainstorming mtg of Jan 24, 2006