HomeMy WebLinkAbout15 Attachment 1 - WAPA Base Resource Contract - Copy
Resolution No. 2021-03
AUTHORIZING THE BOARD PRESIDENT TO EXECUTE
CONTRACT 20-SNR-02339 FOR ELECTRIC SERVICE BASE
RESOURCE WITH THE UNITED STATES DEPARTMENT
OF ENERGY WESTERN AREA POWER ADMINISTRATION
SIERRA NEVADA REGION
______________________________________________________________________
WHEREAS, the Truckee Donner Public Utility District (District) is a public agency of the State of California, and
(i) owns and operates an Electric System for the provision of electric service at retail to the general public within
its service area, and (ii) is eligible for a preference contract from a Federal Power Marketing Administration;
and
WHEREAS, the Central Valley Project (CVP), first devised in 1933 to provide irrigation and municipal water to
much of California’s Central Valley, is a network of dams, reservoirs, canals, hydroelectric power plants and
other facilities; and
WHEREAS, CVP generation is used first to operate the CVP and to pump and deliver water; and
WHEREAS, the Western Area Power Administration (WAPA), a Power Marketing Administration under the
United States Department of Energy, markets the remaining generation (Base Resource) to entities such as
State and local governments, municipalities, and public agencies, including the District; and
WHEREAS, the District Board approved the existing Base Resource contract with WAPA by Resolution 2000-
20 at a meeting duly called and held on October 18, 2000; and
WHEREAS, the District’s existing Base Resource contract with WAPA expires on December 31, 2024 and on
September 16, 2020, WAPA offered the new 2025 CVP Base Resource contracts which entitles the District to
receive 0.30862 percent of the CVP hydropower Base Resource marketed and sold by WAPA, beginning
January 1, 2025, and ending December 31, 2054; and
WHEREAS, the District’s Base Resource percentage with the new contract has increased to 0.30862 percent
compared to the existing contract percentage of 0.2210 percent, an increase of almost 42 percent; and
WHEREAS, 2025 CVP Base Resource contracts must be executed and returned to WAPA by March 16, 2021;
and
WHEREAS, any time before July 1, 2024, the District can reduce the Base Resource percentage or terminate
the contract for any reason; and
WHEREAS, the new contract will become effective upon execution by WAPA and shall remain in effect through
December 31, 2054, subject to prior termination; and
WHEREAS, several factors exist as part of this new contract to help mitigate risk associated with variable costs
and generation, including contract provisions that permit termination at least every five years, and valuable
carbon-free attributes to help the District meet regulatory requirements for clean energy procurement; and
ATTACHMENT NO. 1
WHEREAS, while Base Resource energy is anticipated to cost less, on average, than the District’s purchase
power portfolio cost of energy, this carbon-free resource can help keep electric rates stable in the future; and
WHEREAS, while it is anticipated the average annual cost will increase over time due to inflation and other
regulatory requirements placed on generating facilities, additional value will likely be realized as the demand for
base load carbon-free resources increases and efforts continue to improve the operating efficiency of these
generating resources; and
WHEREAS, the proposed contract provisions provide surety over the long term, and importantly, termination
provisions offer an option for the District to seek alternative resources if costs increase and generation
conditions deteriorate.
NOW THEREFORE BE IT RESOLVED by the Board of Directors of the District as follows:
The President of the Board is authorized, on behalf of Truckee Donner Public Utility District, to execute
Contract 20-SNR-02339 for Electric Service Base Resource with the United States Departm ent of Energy,
Western Area Power Administration, Sierra Nevada Region.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the
3rd day of February, 2021, by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By____________________________________
Christa Finn, President of the Board
ATTEST:
_____________________________________
Shanna D. Kuhlemier, CMC, District Clerk