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HomeMy WebLinkAbout16 Pooling Project UAMPS Agenda Ite m # .O : • ..; MII! 4 Public Utility District Memorandum To: Board of Directors From: Stephen Hollabaugh Date: June 1, 2007 Subject: Consider joining an All-In-Pool Cost Pool within the Pooling Project of UAMPS When acquiring new resource, Conservation is considered first resource. Historic load growth has averaged 4.7% over the last three years • Forecast assumes that load increases by only 1% over the next three years - Conservation may account for 1-3% of load - Offsets growth that would otherwise require additional resources • Conservation is estimated to shave approximately 1 MW from TDPUD's monthly average energy requirements - Actual load requires market purchases to shape around average requirements - Greater conservation will reduce shaping purchases After conservation, the District still has a need for resource. History: The District has been a member of UAMPS since August 2000. When the District joine UAMPS, an agreement for "Joint and Cooperative Action" was signed. Currently the District is in the Resource Project, the Pool Project, and the Master Firm Power Project of UAMPS New Information: existing UAMPS resources, UAMPS and its members to In order to optimize the use of further cooperation within members and to strengthen public power first has created an All-In- Cost Pool within the Pooling Project of UAMPS. to The All-In-Cost Pool enables Truckee Donner UD to assign to Purchase deficitp selectricces nd agree eneagy from the sell surplus resources to the UAMPS Pool and UAMPS Pool. Page I of 2 A brief presentation of the UAMPS Pool will be presented. (Attached) The "Appendix A Truckee-Donner PUD All-In Cost Pool" is attached and will be discussed in as much detail as the Board wishes. Time is of the Essence: Though the term n of prior thlx starts on e end of June sobhater 1UAMPS Truckee Donner PUD must enter into the All I p can plan for the group of members for the upcoming season. Positives of the Resources for the District: is to This All-In Cost pool gives the District the stool lThis makes with all of T utckee'sities n resources a cost swork meet our load and resource requiremen t .together without having to individually (hourly) buy and sell our resource needs of which Truckee Donner PUD currently does not have the ability to do on its own. The Positives outweigh the Negatives: This gives the District a great tool to meet its resource needs and to prioritize the resources as the District sees fit. Recommendation: The Board of Directors adopts and authorizes the Board President to sign Appendix A "Truckee-Donner PUD All-In Cost Pool. Page 2 of 2 O O a L (3) 3: UO 7jr a Q Pool Project . Pool aggregates, supplies and markets . All-In Cost Pool . Participants sell surplus resources at all-in cost and purchase deficit needs from a participant on the same basis . After the All-In Cost Pool has internally netted the over/under position of the Participants, the remaining positions become the responsibility of the Unplanned Pool . Unplanned Pool . Hourly resource clearinghouse . Matches surplus members with deficit members on an hourly basis . Planned Pool . Members may enter into a planned transaction with each other . Power Exchange . An electronic real time power exchange for Members to buy and sell resources . A planning tool to enable Members to manage risk . The PX provides access to meter, resource schedule and transaction data i I APPENDIX A TRUCKEE-DONNER PUD ALL-IN COST POOL ASSIGNMENT OF TRUCKEE-DONNER PUD "PARTICIPANT" SURPLUS RESOURCES AND AGREEMENT TO SELL SURPLUS RESE ERGY ROM THE UAMPS POOL D TO PURCHASE DEFICIT ELECTRIC UNDER THE PROVISIONS OF THE POWER POOLING AGREEMENT Intent The UAMPS Pool Project Participants, through the Pool Project Management Committee and the UAMPS Board of Directors, desire that a more cooperative and efficient form of transaction be accommodated for managing their respective Load and resource situation. In addition,the Participants desire that the Pool should provide an environment that encourages Participants to jointly discuss and acquire resources as needed so as to incorporate any economies that cooperative association may provide to its Participants. The intent and purpose of this Appendix is to provide for the operation of the Pool in an economical and cooperative manner for the benefit of the Participants taken as a whole and to the extent consistent with the UAMPS Project Resource agreements and resolutions, Non-UAMPS Resources and Member Internal Generation ("MIG") . This Appendix documents the principals that the Participants will use for disposal or purchase of surplus or deficit resource positions as the case may be. Definitions All-in Cost shall mean A)for each UAMPS Project Resource the sum of(1)the variable cost per megawatt hour and (2) the fixed cost pool transfer rate per megawatt hour, both as defined and determined in the adopted UAMPS Project Resource budget pertinent to the time that the All-in Cost is applicable; or B)a strike price per megawa eededttand C)a cost per megawatt hounhour for each MIG as d by the owner and submitted in writing and amended as each Non-UAMPS Resource. Load shall mean the retail and wholesale load obligations of the Participant. Meter shall mean those meter(s)that the Pool reads to determine its bill to the Participant. Market shall mean either the maximum representative or minimum representative price(s) at which energy could be sold or be purchased by the Pool, respectively, in the appropriate quantities based on commercially reasonable efforts, inclusive of any adjustments for any related transmission expenses (including losses)to transmit the energy from or to available points of delivery or points of receipt, respectively, available to the Pool for such sale or purchase transaction. Documentation of Market prices shall include, but is not limited to, review of available publications and regular, systematic and rotating telephone surveys of representative market participants, including utility and marketing/trading entities that are not Participants in or have an affiliation with the Pool. Non-UAMPS Resource shall mean those resources listed on Schedule of Resources that are not UAMPS Project Resources. Pool Blended Price shall mean the hourly average weighted price of all energy purchased by the Pool for sale to Pool Participants or to the Market. Project Management Committee shall mean the committee of participant representatives of a UAMPS Project Resource as such is defined in such project's documents. Pool shall mean the UAMPS Pool Project. Senior Power Scheduler shall mean the employee of UAMPS that manages the scheduling of UAMPS Project Resources, Non-UAMPS Resource and MIGs. UAMPS Project Resource shall mean a source of energy and services available to a Participant from a project duly organized pursuant to the UAMPS incorporation documents for its usage, as set forth in the pertinent UAMPS Project Resource's documents as adopted by its Board of Directors. Transactions recorded in an appendix to the Pooling Agreement for the purchase or sale of energy by the Pool and designated as UAMPS Project Resources in said appendix shall be a UAMPS Project Resource. Administrative Fees The Pool agrees that it will not charge to the Participant any administrative fee that is in addition to the fees or charges that it may charge for administration of the Pool as determined in the then pertinent budget adopted by the Pool. Resource Information Participant shall list all resources available to it,to meet Load, in an economic dispatch basis(lowest to highest cost)on the attached Schedule of Resources. The list shall be in three parts, the first part being a list of Non-UAMPS Resources,the second part being a list of UAMPS Project Resources and the third part shall be a list of MIG. Each Non-UAMPS Resource listed on the Schedule of Resources shall include information relevant to the resource so that the Pool can schedule, account and prepare billings to the Participant for UAMPS Project Resources, including pricing information, effective and termination dates, scheduling provisions and other information which the Pool deems necessary for its operations and accounting. Each MIG shall delineate scheduling provisions and other information which the Pool deems necessary for its operations and accounting including strike price. The Schedule of Resources shall be amended from time to time to (i) remove resources that are no longer available to be applied to Load and (ii) add new resources that will be applied to 2 Load. All amendments to Schedulef e Resources, frame adopted by the Pool.hall not be effective if provided at a time that is less Each month the Participant shall provide or cause to be provided, a forecast, by month, of anticipated resources,from its Schedule of Resources, available to meet forecasted Load, as provided for below,to the Pool for the next twelve months.The first month of this twelve-month forecast shall be in an hourly format. The next two months of this twelve-month forecast shall be in a HLH &LLH, by day,format. The remaining nine months of this twelve-month forecast shall be in anticipated peak capability and total energy, by month,format. Participant may amend this forecast by submitting amendments to the Pool in a timely manner, as determined by the Pool, so that the Pool can incorporate them into the scheduling process. Load Information Each month the Participant shall tprovide or cause towelve months The firspmonrovidth of this forecast, twelvebmonth th, of anticipated Load to the Pool for the next forecast shall be in an hourly format. The next a HLH &LLH, by day,format. The remaining nine months of this twelve-month forecast shall be in peak demand and total energy, by month,format. Participant may amend this forecast by submitting amendments to the Pool in a timely manner, as determined by the Pool, so that the Pool can incorporate them in to the scheduling process. Assignment of Resources to the Pool To the extent that a Participant has not already assigned a UAMPS Project Resource or Non-UAMPS Resource to the Pool for the purpose of meeting Load and for transacting surplus or deficit resource positions in reference to Load and such UAMPS Project Resources it hereby agrees to enter into an appendix to the UAMPS Pooling Agreement to assign such UAMPS Project Resource to the Pool. The appropriate Project Management Committee shall specify the terms of such assignment. Priority List For the purposes of Pool billing and accounting, all resources listed on the Schedule of Resources shall be put in an economic dispatch priority such that the first resource listed shall be the first resource that is applied to Load and the last resource listed shall be the last resource available to be applied to Load. The MIGs, unless purchased from UAMPS, shall be applied to Load before UAMPS Project Resources or Non-UAMPS Resources are applied to Load. The priority of Non-UAMPS Resources, to be applied to Load, shall be determined by the Participant. UAMPS Project Resources shall be applied to Load after all Non-UAMPS Resources have been applied to Load. The priority of UAMPS Project Resources,to be applied to Load, shall be by economic dispatch. 3 A Participant may submit new priorities of resources listed on the Schedule of Resources to the Pool in a manner as adopted by the Pool. Scheduling and Accounting Participant shall provide or cause to be provided, to the Pool, a schedule for each resource listed on Schedule of Resources. Participant shall provide or cause to be provided,to the Pool, a forecast of its anticipated Load. Participant shall have the first use of electric energy allocable to its resources listed on Schedule of Resources and scheduled to meet Load. The Participant's schedule, along with all other participants' schedules,will be used in operational decisions of the Pool. The Pool, no less than monthly,will review, discuss and determine how to operate the Pool for the period adopted by the Pool. Given no other direction by the Pool, if the Pool is in a surplus resource position,with regard to Participant's Loads, it shall sell such surplus resource position in to the Market and if the Pool is in a deficit resource position,with regard to Participant's Loads, it shall purchase such deficit from the Market. The Participant's surplus or deficit resource positions, in any hour, shall be determined by subtracting the Participant's schedule of resources,from its actual Load as determined by the Meter. A positive difference shall be a deficit resource position in that hour and a negative difference shall be surplus resource position in that hour. Participant agrees to sell to the Pool and the Pool agrees to purchase from the Participant any hourly surplus resource position attributable to its UAMPS Project Resources at the All-in Cost of such surplus UAMPS Project Resources Participant agrees to purchase from the Pool and the Pool agrees to sell to the Participant any hourly deficit resource position attributable to its hourly Load, as recorded by its Meter,from the Pool at the hourly Pool Blended Price. Participant agrees that if it is in a long position and the Pool ends up in a long position such that the Pool sells to the Market it will not receive the All-in Cost for its long position but instead it will receive Market. Technical Committee The Pool agrees to form a Technical Committee. The purpose of the Technical Committee is to provide an interface between the Participant and UAMPS' scheduling process. The Technical Committee shall not be vested with any authority to act on behalf of any group of Participants, any individual Participant or the Pool Project Management Committee. 4 tee l meet no than once a week or on such on The Technical S' Senior Powe Schedulers The Technical Committee hall be arforum lfor as noticed by the UAMPS' Senior determination of the economic dispatch of the Pool. Participant shall name a representative that can act on behalf of the Participant with regard to this Appendix. This representative shall be a member of the Technical Committee and act on behalf of the Participant with regard to items discussed in the Technical Committee. Term The term of this Appendix A begins October 1, 2007 through the earlier of(i)the termination of all of the underlying contracts for each resource shown on Schedule of Resources, or(ii)the termination of this Appendix A. Participant may terminate this Appendix A by providing the Pool 90 days written notice prior to Septemer 1 or b March t d on Schedule of ng Resources. arrangements with the Pool for he utilization ofesources Participant and the Pool agree to the provisions of this Appendix A as indicated by the duly authorized signatures below. Dated this the day of 12007. TRUCKEE DONNER PUD POOL 5