HomeMy WebLinkAbout13 UAMPS Carbon Free Power Projectenda Item #
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To: Board of Directors
From: Stephen Hollabaugh
Date. January 19, 2017
Subject: Discussion About UAMPS Carbon Free Power Project
1. WHY THIS MATTER IS BEFORE THE BOARD
13
UAMPS has been investigating a new generation resource called The Carbon Free
Power Project (CFPP). This item is to discuss the study phase and entering the
licensing phase of the project. The CFPP is built around a new generation of small
modular nuclear reactors (SMR).
2. HISTORY
A workshop was given to the Board on April 15, 2015 to discuss the CFPP and the
future resource that may be available to the District in the future. The workshop
discussed the evolution away from coal, the upside and downside of natural gas and
the role of clean alternatives along with the benefits of having a balanced portfolio.
On August 19, 2015 the Board approved the District to enter an agreement with
AMPS to enter the study phase including the siting of the project. The District
entered into the agreement to further develop the CFPP as a hedge against carbon
dioxide regulation that may impose cost burdens on existing fossil fueled resources
and/or to provide greater diversification in our resource portfolio. Many of the costs
have been partially paid for from the Department of Energy (DOE) and NuScale (the
designer of this technology). The District signed up to 4,000 kw site share of this
CPFF Study Phase Siting Agreement.
3. NEW INFORMATION
The study and location (siting) phase of the CFPP has been successfully completed.
A preferred site has been located. UAMPS, NuScale, and Energy Northwest have
entered into a Teaming Agreement that outlines the parties' intent to investigate the
viability of developing a SMR project in the State of Idaho at the Department of
Energy's (DOE) Idaho National Laboratory (INL) site near Idaho Falls.
The three phases of the CFPP are Study Phase, Licensing Phase and Construction
Phase. It is now time to start the Licensing Phase. The Licensing Phase has three
)hases.
PHASES OF THE LICENSING PHASE(see attachment)
1. The Licensing Phase begins on the Effective Date (estimated to be July 1, 2017)
of the Power Sales Contracts and ends when the Project Management Committee
(PMC) determines (by a Super -Majority Vote):
a. that Completion of Development has occurred and that the Project should
move forward to the Construction Phase, or b. to terminate the Project.
2. The Power Sales Contracts provide a phased (or stepped) approach to the
development of the Licensing Phase. When the Power Sales Contracts aredistributed
to the Participants for governing body approval and execution, budget estimates for
each of the three phases described below will be included in the approval/execution
package.
a. Sub -Phase 1 begins on the Effective Date of the Power Sales Contracts
and continues the preliminary Development Work on the Project, including preliminary
work on the Construction and Operating License Application (estimated to be March
31, 2018);
b. Sub -Phase 2 covers the development and completion of the COLA and
additional Development Work (estimated to be April 1, 2018 to Q2 of 2019); and
c. Sub -Phase 3 covers the processing of the COLA through the NRC and
additional Development Work to receipt of the COL and Completion of Development
(estimated to be Q2 of 2019 to Q3 of 2022).
3. Completion of Development would only occur if:
a. The NRC issues the Construction and Operating License (COL) for the
Project,
D. UAMPS completes the negotiation of a final EPC contract for the
construction of the Project, and
c. The PMC determines the CFPP to be feasible.
OUTREACH PLAN
District staff is preparing an outreach plan to target both an internal and external
audience. The objective of this outreach plan is to educate our rate payers,
community, and partners on the new Small Modular Reactor (SMR) technology, the
CFPP project details, and the conditions under which the District may choose to
participate.
SCHEDULED BOARD MEETINGS
• January 19, 2017 (Workshop, Carbon -Free Hedge, CFPP Outreach Plan)
• February 1, 2017 (Workshop, SMR Technology, CFPP financial and
environmental performance
• March 1, 2017 (Action, CFPP Power Sales Agreement)
4. FISCAL IMPACT
The CFPP is a hedge against a base load generation cost and a hedge against
carbon dioxide regulation that may impose cost burdens on existing fossil fuel
resources and/or to provide greater diversification in its resource portfolio.
5. RECOMMENDATION
Receive and provide input on this report.
Stephen Hollabaugh
Assistant General Manager
47.
Michael D. Holley
General Manager
Approval Process for the Attachment 1
Budget and Plan of
Finance During the
Licensing Period
(April 12 2018 until
(Effective Date of Completion of the (Q2 2019--Q3 2022 with
CFPP Power Sales Construction and Operating (Q3 2022--Commercial
Contracts —March License Application issuance of license to Operation Date)
31, 2018) (COLA) -->anticipated Q2 of UAMPS)
2019)
First Phase of the
Second Phase of
Third Phase of
Definitive Budget
Budget and Plan of
Budget and Plan of
Budget and an of
and Plan of
Finance for
Finance for
Finance for
Finance at end of
Licensing Period
Licensing Period
Licensing Period
Licensing Period
by PnnC, BOD* anl� /Approval by PMC� Approval by PMC� ,�(pp y
nt Governing Bod ` and BOD and BOD Part pant Governing B
*BOD=Board of Directors
See Section 601(c) outlining
the eqapprovals for
the Budget and Plan of
Finance and Secton 601(a)
for the elements of the
Budget and Plan of Finance
Each Approval Identified
above provide a withdrawal
option to each Participant as
described in Section 204