HomeMy WebLinkAbout14,CFPP Workshop March7-2018
WORKSHOP ITEM #14Small Modular Reactor (SMR)UAMPS Carbon Free Power Project Small Modular Reactor (SMR)UAMPS Carbon Free Power Project March 7, 2018
UAMPS Carbon Free Power Project technical and contractual issuesSMR technology, Workshop to discuss CFPP and -2018 February 7, •performance; andlicensing phase and financial and environmental
technology, CFPP SMR Workshop to discuss -2017 February 1, •project;of the licensing phase plan, and the start of the , outreach free hedge-Workshop to discuss carbon-2017 19, January
•concerning the project; ession sinformational and two Board members attended UAMPS Staff -2016 13, -September 12•study phase of the project and a 4 MW site share of the CFPP;the for
Board approved to enter into an agreement -2015 August 19, •to the Board;CFPP project the Workshop to introduce -2015 15, April •This item has been before the Board many times•BACKGROUND
/ HISTORY UAMPS Carbon Free Power Project
NEW INFORMATION April 4, 2018 Board meeting for consideration•Upcoming Schedule•Nuclear fuel cycle; and•Power Sales Contract review;•Tonight’s discussion covers:•UAMPS Carbon Free Power
Project UAMPS Carbon Free Power Project
NEW INFORMATION LynchUnderwriter: Bank of America Merrill •JaffrayFinancial Advisor: Piper •Counsel: Chapman and CutlerBond •External team members–Power Sales Contract •UAMPS Carbon
Free Power Project UAMPS Carbon Free Power Project
NEW INFORMATION attorneys and outside counselDistrict •Project Management Committee (PMC) Representatives; and•including:Committee, UAMPS Legal by the Reviewed •0.667% Fully Subscribed
(4 MW):•2.667%150 MW Subscription (4 MW):•2.1751%Interim period (4 MW): ••phased developmentMost significant additions relate to the continued •specific items-New provisions added to
address CFPP•projectsfor UAMPS’ power sales contracts The Power Sales Contract for CFPP is similar to the •Power Sales Contract Overview•UAMPS Carbon Free Power Project UAMPS Carbon
Free Power Project
NEW INFORMATION 41 mos.November 2027July 2023Construction Period 37 mos.June 2023June 2020Phase nd 2–Licensing Period 26 mos.May 2020April 2018Phase st 1–Licensing Period 12 mos.March
2018April 2017FY18 (PSC Executed)–Period Interim# of MonthsFinishStart Price target (2017) estimated range: $45 to $65 per MWh•Estimated timeline for development & construction of initial
facilities•UAMPS Carbon Free Power Project UAMPS Carbon Free Power Project
NEW INFORMATION 25% of a defaulting Participant’s Entitlement Share, subject to a maximum increase of defaulting Participants can be required to take a portion -up obligation, non-Stepthat
produce revenues sufficient to meet its payment obligations under the PSC Rate covenant, Participant agrees to charge and collect rates for electric service operating expense of the
Participant’s electric systemPayments made solely from each Participant’s electric system revenues as an the amounts due under the PSCspay” payment obligation, the Participants are
obligated to pay -or-“TakeBasic Terms and Conditions•UAMPS Carbon Free Power Project UAMPS Carbon Free Power Project
NEW INFORMATION(75% by number and Entitlement Share)majority vote -superCertain decisions are required to be made by a •suspended; and terminated or is feasible or whether it should
be project whether the Determine •and Operating License Application; the Combined Construction and determine whether to submit Review •;financingsand authorize all Review •Test (ECT);of
the results of each run of the Economic Competitiveness Review •Agreements;each Budget and Plan of Finance and all Project Approve •Committee roleProject Management •UAMPS Carbon Free
Power Project UAMPS Carbon Free Power Project
NEW INFORMATION Amended budget and finance plan•Set a Development Cost Cap of $6,000,000 through March 31, 2019 •matters; Development Costs that may be incurred by UAMPS and related
Approved a resolution that set forth additional limits on the •Action of February 20, 2018Project Management Committee •UAMPS Carbon Free Power Project UAMPS Carbon Free Power Project
Licensing Phase OneReduce or Withdraw Scheduled to be completed June 2020•Finance, finalization of all Project costsUpdates to the Budget and Plan of •License Application (COLA)Construction
and Operating of the Preparation, submission and processing •subscription for all Project Outputparty power purchasers to achieve full -owners and third-Participants, coContracting
with prospective •Agreements,Completion of definitive Project •Economic Competitive Test (ECT)the Agreement and analyzing each run of work under the Development Estimating, design and
engineering •Begins on the Effective Date of the PSC•Governing board approvalPhase 1withdraw from the Project at the end of Participant will have the option to reduce or and/or cost
share)(or sooner with additional subscription 19 -31-of finance will occur around 3An amendment of the Budget and Plan the budget and plan of finance is amended entitlement or withdraw
from the Project if Participant will have the option to reduce its
Licensing Phase TwoReduce or Withdraw upon the receipt of the NRC LicenseScheduled to be completed Q2 2023 •39 month review •Finance, finalization of all Project costsUpdates to the
Budget and Plan of •of the NRC LicenseNRC and is completed with the receipt to the Operating License (COLA) Combined Construction and Begins with the submittal of the •Operations and
Decommission Phasesmove forward with Construction, Governing board approval required to Phase 2withdraw from the Project at the end of Participant will have the option to reduce or
the budget and plan of finance is amendedentitlement or withdraw from the Project if Participant will have the option to reduce its
NEW INFORMATION Legal opinion from District counsel•andContract; approval and execution of the Power Sales the District covering Certificate •matters;Budget and Plan of Finance and related
the Power Sales Contract, Initial by the District approving to be adopted Resolution •Contract;Summary of the Power Sales Executive •Finance;initial Power •points;highlighting the CFPP
business FAQ’s •The following documents will be provided in April:•2018 District board meetingPower Sales Contract will be proposed for authorization at the April 4, •Upcoming schedule•UAMPS
Carbon Free Power Project UAMPS Carbon Free Power Project
NEW INFORMATION 5.0%-% between 3.5Uranium 235; mined, milled & concentrated to production of electricity from uranium in nuclear power reactorsfuel cycle is the series of industrial
processes which involve the Nuclear The Nuclear Fuel Cycle•UAMPS Carbon Free Power Project UAMPS Carbon Free Power Project
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15 ELLET P UEL F
16 SSEMBLY A UEL F
17 to a Federal Storage Facility. Transferred to a cask for storage as a solid & stable waste form to be transfer remain there for five years.They Fuel assemblies are moved to the
spent fuel section of the Reactor Building. 238-What is it? 1.0% U235. 0.6% Pu, 3% other fission products and 95% UUEL F UCLEAR N PENT S
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19 construction, use of including handling procedures for transportNRC inspects, monitors and tests storage operators, vendors, design, the effects of radiation, heat and corrosionnuclear
fission reactions, manage heat and use materials that can withstand NRC requires storage to not release radiation, be structurally robust, prevent processNRC regulates all aspects
of the spent fuel cycle developed through a public )ASTE(W UEL F PENT S OFEGULATION R
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NEW INFORMATION April 4, 2018-Contract the Power Sales Consider approval of •terms of the Power Sales ContractUnderstand the •Percentage 4 MWParticipation Confirm •Next steps•UAMPS Carbon
Free Power Project UAMPS Carbon Free Power Project
FISCAL IMPACT portfoliogreater diversification in our resource Provide •may impose cost burdens on existing fossil fuel resources That •regulationcarbon dioxide Against •Against cost
•hedgeCFPP is a The •itemThere is no fiscal impact associated with this workshop •UAMPS Carbon Free Power Project UAMPS Carbon Free Power Project
RECOMMENDATION Receive this report and provide comments•UAMPS Carbon Free Power Project UAMPS Carbon Free Power Project