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Home My WebLink About12 Red Mesa Tapaha Solar Project Transaction ScheduleAqendaitem#12TRUCKEEDONNER:PublicUtilityDistrictACTIONTo:BoardofDirectorsFrom:JoeHorvathDate:September04,2019Subject:ConsiderationofResolution2019-20AuthorizingtheRedMesa_____TapahaSolarProjectTransactionSchedulewithUAMPS1.WHYTHISMATTERISBEFORETHEBOARDItistheBoard’spurviewtoadoptDistrictResolutions.2.HISTORYUtahAssociatedMunicipalPowerSystems(UAMPS)andtheNavajoTribalUtilityAuthority(NTUA)havebeenindiscussionssincelate2018,aboutthepossibilityofdevelopingasolargenerationprojectforusebyUAMPSmembers.NTUAhasdevelopedandbroughtonlinetwoutilityscalesolarprojectswithinthelastthreeyearsontheNavajoNationandisintheprocessofdevelopingadditionalsolarresourcesonandofftheNavajoNationReservation.NTUAwilluseasignificantamountofitsproceedsfromtheproposedprojecttosupportelectrificationofhomesontheNavajoNation,suchaswithitsLightUpNavajo!Initiative.TheproposedsolarprojectwouldbelocatedonTriballandinsoutheastUtahadjacenttoanexistingsubstationnearthetownofAneth,Utah.ThesolarprojecthasrecentlybeendesignatedbyNTUAastheRedMesaTapahaSolarProject(theProject).3.NEWINFORMATIONSinceApril2019,UAMPSstaffhasbeennegotiatingaPowerPurchaseAgreement(PPA)withNTUAfortheProject.NegotiationswerecompletedinearlyJuly,2019.Pricingforenergyis$23.15MWh,witha2%annualescalationfactorforatermof25years.TheBoardofUAMPSapprovedthePPAattheregularmeetingheldonJuly17,2019.ThePPAwillbecomeeffectiveuponUAMPSobtaininggoverningbodyapprovalsfromthememberagenciesassociatedwiththeProject.UAMPSmemberinteresttotals66MW,with16memberagenciesparticipatinginthisProject.TheProjectisscheduledtobeonlinebyJune1,2022.NTUAwillprovidedevelopmentsecuritytoprotectUAMPSfromdelaysintheProjectcomingon-lineorthefailureoftheProjecttoultimatelybecomeoperational. ThePPAbetweenNTUAandUAMPSprovidesforthedeliveryofsolarenergyfortwenty-fiveyearsoncetheProjectcomesonline.TheDistricthasapotential6MW(about9.1%)shareoftheprojectifapprovedbytheBoard.Itisestimatedthata6MWshareequatestoabout10%oftotalannualDistrictenergyrequirements.Thecostforenergyincludestheassociatedrenewableenergycredits(RECs).Thisenergyisrenewableandcarbon-free,andwouldhelptoincreasetheDistrict’sRPSachievementstoapproximately75%startingin2022.UAMPSisutilizingtheMasterFirmSupplyAgreementwithaspecifictransactionschedulefortheProjectastheproposedagreementwithitsmembers,includingtheDistrict.TheDistrictisalreadyaparticipantintheMasterFirmSupplyAgreementwithUAMPS.Therefore,aresolutionauthorizingtheProject’stransactionschedulewithUAMPSisrequiredforDistrictparticipation.Resolution2019-20andExhibitA,RedMesaTapahaSolarProjectTransactionScheduleareincludedasAttachment1.4.FISCALIMPACTTheRedMesaTapahaSolarProjectwillrepresentaportionofthePurchasePowerPlanthatmightotherwisebepurchasedfromthemarket.TheDistricthasa6MWshareoftheProjectwhichequatestoabout10percentoftotalannualDistrictenergyrequirements.Pricingforenergyis$23.15MWh,witha2%annualescalationfactorforatermof25years.ThispricingisamongthelowestcostofallDistrictenergyresources.5.RECOMMENDATIONAdoptResolution2019-20authorizingtheRedMesaTapahaSolarProjectTransactionScheduleandauxiliaryagreementsasneededwithUAMPS.JoeHorvathMichaelD.HolleyElectricUtilityDirectorGeneralManager TRUCKEEDONNERPublicUtilityDistrictResolutionNo.2019-20AuthorizetheRedMesaTapahaSolarProjectTransactionScheduleUnderthePowerSupplyAgreementwithUtahAssociatedMunicipalPowerSystemsWHEREAS,TruckeeDonnerPublicUtilityDistrict,California(the“Member”)ownsandoperatesautilitysystemfortheprovisionofelectricenergytoitsresidentsandothers(the“System”)andisamemberofUtahAssociatedMunicipalPowerSystems(“UAMPS”)pursuanttotheprovisionsoftheUtahAssociatedMunicipalPowerSystemsAmendedandRestatedAgreementforJointandCooperativeActiondatedasofMarch20,2009,asamended(the“JointActionAgreement”);andWHEREAS,theMemberdesirestopurchasealloraportionofitsrequirementsforelectricpowerandenergyfromorthroughUAMPSandhasenteredintoaPowerPoolingAgreementwithUAMPStoprovidefortheefficientandeconomicutilizationofitspowersupplyresources;andWHEREAS,theMemberhaspreviouslyenteredintotheMasterFirmPowerSupplyAgreementwithUAMPSinordertoallowforUAMPSenteringintovariousfirmtransactionsforthepurchaseandsaleoffirmsuppliesofelectricpowerandenergy;andWHEAS,UAMPShasinvestigatedtheRedMesaTapahaSolarProject,asixty-sixJ6negawatt(MW)solarphotovoltaicgenerationfacilitytobelocatedontheNavajoNation,onbehalfofitsmembersandisnowpreparedtoenterintoatwenty-five(25)yearpowerpurchaseagreementwithNavajoGenerationLLCtosecurethedeliveryofalltheenergyfromtheProjectandassociatedenvironmentalattributes;andWHEREAS,theMembernowdesirestoauthorizeandapprovetheRedMesaTapahaTransactionSchedule(“TransactionSchedule”)attachedheretoasExhibitAfortheProjectsubjecttotheparameterssetforthinthisResolution;andNOWTHEREFOREBEITRESOLVEDbytheBoardofDirectorsoftheDistrictasfollows:Section1.AuthorizationofRedMesaTapahaTransactionSchedule.TheTransactionSchedule,insubstantiallytheformpresentedatthemeetingatwhichthisresolutionisadopted,isherebyauthorizedandapproved,andtheMemberrepresentativeisherebyauthorized,empoweredanddirectedtoexecuteanddelivertheTransactionSchedule onbehalfoftheMember.Promptlyuponitsexecution,theTransactionScheduleshallbefiledintheofficialrecordsoftheMember.Section2.OtheractionswithrespecttotheJointactionAgreement.ThePresident,DistrictClerk,MemberRepresentativeandotherofficersandemployeesoftheMembershalltakeallactionsnecessaryorreasonablyrequiredtocarryout,giveeffectto,andconsummatethetransactionscontemplatedherebyandshalltakeallactionsnecessarytocarryouttheexecutionanddeliveryoftheTransactionScheduleandtheperlormancethereof.Section3.Miscellaneous;EffectiveDate.(a)Allpreviousactsandresolutionsinconflictwiththisresolutionoranyparthereofareherebyrepealedtotheextentofsuchconflict.(b)Incaseanyprovisioninthisresolutionshallbeinvalid,illegalorunenforceable,thevalidity,legalityandenforceabilityoftheremainingprovisionsshallnotinanywaybeaffectedorimpairedthereby.PASSEDANDADOPTEDbytheBoardofDirectorsatameetingdulycalledandheldwithintheDistrictonthe4thdayofSeptember2019bythefollowingrollcallvote:AYES:NOES:ABSTAIN:ABSENT:TRUCKEEDONNERPUBLICUTILITYDISTRICTByBobEllis,PresidentoftheBoardATTEST:ShannaD.Kuhlemier,CMC,DistrictClerk ExhibitARedMesaTapahaSolarTransactionSchedule aREDMESATAPAHASOLARFIRMPOWERSUPPLYAGREEMENTTRANSACTIONSCHEDULEThisTransactionScheduletotheMasterFirmPowerSupplyAgreementtowhichallPartiestothisTransactionSchedulearesignatoriesprovideforthefollowingtransactions.ThePartiestothisTransactionScheduleagreetothefollowingprovisionsandagreetopayallcostsofthistransactionthroughtheFirmPowerSupplyProject.PURCHASER:TruckeeDonnerPublicUtilityDistrictENTITLEMENTSHARE:9.0909%SUPPLIER:NTUAGeneration—Utah,LLC(the“RedMesaTapahaSolarProject”)EFFECTIVEDATE:ThePowerPurchaseAgreementbyandbetweenUAMPSandNGIGeneration-Utah,LLCfortheRedMesaTapahaSolarResource(the“PPA”)wasexecutedonJuly17,2019.ThePPAbecomeseffectiveuponUAMPSobtainingmembergoverningbodyapprovalsandcompletingtransmissionarrangementswithPacifiCorp;UAMPSanticipatessatisfyingthesetwoconditionsbytheendofSeptember2019.TheScheduledCommercialOperationDate(“COD”)isJune1,2022.TheCODmaynotoccurearlierthanApril1,2022butnotlaterthanDecember1,2022.TERM:A25-yeardeliverytermcommencingonCOD.ThePPAwillbecomeeffectiveuponUAMPSsatisfyingthetwoconditionsprecedentidentifiedabove.AMOUNT:6,000kWandassociatedEnvironmentalAttributesPRICE:$23.15/MWHwithanannual2%escalator.OTHERPROVISIONS:Energy:UAMPSwillscheduleallenergypursuanttothetermsandconditionsofthePPAandwilldeliverytothePurchaseritsEntitlementShareoftheRedMesaTapahaSolarResource.TheRedMesaTapahaSolarResourceistobeconstructedasa66MWfromsolarphotovoltaicgenerationfacilitylocatedontheNavajoReservation.Transmission:UAMPSwillchargeandthePurchaserwillpaytransmissionchargesasadoptedbytheUAMPSBoardofDirectorsfromtimetotime. Administration:UAMPSwillchargeandPurchaserswillpaytheschedulingfeeandreservefeeasadoptedbytheUAMPSBoardofDirectorsfromtimetotime.BuyoittOptions:UnderthePPA,UAMPShastheabilitytobuytheRedMesaTapahaSolarResourcefromNGIatspecifiedbuyoutdatespursuanttoafairmarketvalueappraisal.IfUAMPSisdirectedtopursueoneofitsbuyoutoptions,thenUAMPSwillinparalleldevelopnewcontractsoramendtheFirmPowerSupplyAgreementwiththePurchaserstoprovideUAMPSwiththeabilitytofinancethebuyoutoftheRedMesaTapahaSolarResource.Other:AnycostsincurredbyUAMPSduesolelytothisTransactionSchedule,includingbutnotlimitedtoPPAcosts,transmissioncosts,schedulingcosts,administrativecostsandlegalcostswillbetheresponsibilityofPurchasersinvoicedthroughtheUAMPSPowerBills.ThisTransactionSchedulemaybesignedincounterpart.Datedthis_______dayof,2019.TRUCKEEDONNERPUBLICUTILITYDISTRICTBy:___________________________Title:______________________________________UTAHASSOCIATEDMUNICIPALPOWERSYSTEMSBy:___________________________Title: