HomeMy WebLinkAbout7 Market Purchase 2022-2027 with UAMPS
December 16, 2020 UAMPSPurchase Agreement with Year Market Power -to Approve a 5Consideration 7ACTION ITEM #
•BACKGROUND / HISTORYBACKGROUND / HISTORY Market Power Purchase Agreement with UAMPSMarket Power Purchase Agreement with UAMPS customer loadscost power to reliably meet -the District
to deliver lownables E•part of the portfoliois an important purchase contract power arket M•portfoliothe energy ‘gaps’ in our purchase power Fills •profileshaped and scheduled to the
District’s load is power Market •MWhPriced at $46 per •requirementsRepresents about 35% of the District’s annual energy •2022March 31, through is April 1, 2017 Term •UAMPSwith Year
market power purchase contract -District has an existing 5The
•NEW INFORMATIONNEW INFORMATION Market Power Purchase Agreement with UAMPSMarket Power Purchase Agreement with UAMPS in Nevada, which reduces transmission costsis delivered Energy •averageon
MWhPrice is about $35 per •termyear -District, over the 5load shaping, unique to each member agency, including the Monthly •proposal includes Recommended •are relatively low in this
timeframeproposals reflected energy forward prices across the Western market All •in March, 2027ends in April, 2022 and Term starts •purchasemarket power year solicited proposals from
qualified vendors for a new 5UAMPS
•NevadaUtahDeliveryof Point$35$46MWhPrice, $ per 20%35%Annual Energy, % of Total30,42056,250MWhAnnual Energy, 2027-2022 2022–2017 Year Product Term-5ProposedExistingItem SummaryProposal
NEW INFORMATIONNEW INFORMATION Market Power Purchase Agreement with UAMPSMarket Power Purchase Agreement with UAMPS tableyear contract, is shown in the following -existing 5A summary
of the proposal, and a comparison to the District’s
•NEW INFORMATIONNEW INFORMATION Market Power Purchase Agreement with UAMPSMarket Power Purchase Agreement with UAMPS purchasesimpacts to customers compared to daily market , should help
stabilize any rate MWhyear product at $46 existing 5, compared to the MWhprice of the proposed product at $35 Lower •contractterm -amount of risk than entering into a fixed price longGreater
•fluctuationspool is subject to hourly and daily market price Power •market forces to due low Pool prices should also be UAMPS Power •in excess of 10% of our annual energy requirementsupply
S•2022line no later than June 1, -to be onRed Mesa scheduled •to planned addition of Red Mesa Solar ProjectDue •2027(proposed 20222022) to 20% purchase energy will decrease from 35%
(2017arket
•NEW INFORMATIONNEW INFORMATION Market Power Purchase Agreement with UAMPSMarket Power Purchase Agreement with UAMPS requirements through 2027meet District load year market power purchase
contract is the recommended option to year term, entering into the proposed low forward prices and a 5With •profileto District load Shaped •months when District experiences peak loadsWinter
•adequacyportfolio to ensure resource purchase continues to be a critical resource in our power Market
•FISCAL IMPACTFISCAL IMPACT Market Power Purchase Agreement with UAMPSMarket Power Purchase Agreement with UAMPS rate impacts through 2027price of the proposed product should help stabilize
any Much lower •MWh2022) is priced at $46 per year market purchase (2017Existing •averageon MWhat about $35 per 2027 is priced year market power purchase for 2022proposed 5The
•RECOMMENDATIONRECOMMENDATION Market Power Purchase Agreement with UAMPSMarket Power Purchase Agreement with UAMPS 2027in March, year period starting in April, 2022 and ending -on average,
for a 5MWhpurchase of market power, priced at approximately $35 per Systems (UAMPS), and all necessary documents, for the Project (Attachment 1) with Utah Associated Municipal Power
In Transaction Confirmation for the Firm Power Supply -Lockthe General Manager to execute the Confirmation to Authorize