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Home My WebLink About7 UAMPS Power Project Agenda Item # 7 TRUCKEE DONNER Memorandum G-71r Public UtIlilty L)I-Jr,lc,L To: Board of Directors From: Stephen Hollabaugh Date: October 26, 2006 Subject: UAMPS Intermountain Power Project Unit#3 History The District is a UAMPS member and is active within the IPP#3 Project The District has funded of the Development Phase of IPP#3 and is heading toward the Power Sales Contract phase of the project. This project has progressed and is in the Development Phase of the Project and the District will soon enter into the Power Sales Contract of the project. At the last Board meeting we discussed in addition to the Power Sales Contract the following Documents: • Ownership Agreement • Unit 3 Construction Lease, Use and Services Agreement • Common Facilities and Site Agreement • TDPUD future Resource Plan (also attached to this staff report) New Information Stephen Hollabaugh will present the Power Sales Contract with the assistance of Steve Gross who has been in contact with UAMPS and had input to the final form of this contract. Truckee Donner PUD's interest in the project is 24,100 kW. Stephen Hollabaugh will discuss Truckee Donner PUD's load and resource needs during the time period that this electric generation plant comes on line and into the future (TDPUD future Resource Plan). At this meeting we wish to go into more detail of the Power Sales Contract. The following documents will be handed out at the November 1, 2006 Board meeting: • Power Sales Contract(most recent) • Executive Summary of the Power Sales Contract • Engineer's Report I believe that the Power Sales Contract that will be presented at the November 1, 2006 meeting will be substantially complete. Recommendation: The Board of Directors adopt the Power Sales Contract in substantially the form presented and authorize the'Board President to sign the Power Sales Contract in substantially the form presented. Resource Plan — Short Term Projected Cost to Serve Load 12 0004 . r xkw 200,000 , ', w, s ��8'7 .`Lr .�:��s..�"y ":6�+T�`{. "'^x �a rg; �- �x°ws �f�d ,�'.` "�'�,a >�.� x m . s 180,000 10,000 - 160,000 140,000 0 8,000 - L < 120,000 6,000 - 100,000 a w 1 v 80,000 41 4,000 - 60,000 � x 40,000 2,000 ¢ 20,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 CPS SCE I IPP#3 I I---- --� I i � Load MWh 2 Truckee-Donner Peak Load & Resources 60 50 - - - IPP 3 40 _ -_T- - 2% Growth ?C 30 - 1% Growth 20 t f No Growth 10 +Avg Monthly o Peak O N v CO CO O N v CD a0 O N CO CO O N CO OO O History O O O O O r- r' N N CN N N ('7 cM CI) M M O O O O O O O O O O O O O O O O O O O O O --- N N N N N N N N N N N N N N N N N N N N N Year 10/18/2006 Truckee-Donner Energy Load & Resources 700,000 600,000 - - - - 500,000 400,000 - - --- ---- - --- -- --- IPP 3 t 300,000 - - --- ---- ---- - - - --- - - -a-4% Growth 200,000 - - - - - - - - - - - _ - - - - - - _ - - -,a--2% Growth —,�No Growth 100,000 - - - - - - - - - - - - —�—Energy 0 History O N CO CO O N d' CO OD O N CO DO O CO CO O O O O O O N N N N N M M M M M �t O O O O O O O O O O O O O O O O O O O O O N N N N N N N N CN N N N N N N N N N N N N _. w , Year, 10/1§2006 Truckee Donner PUD Power Supply Resource Plan November 1 , 2006 Stephen Hollabaugh Truckee Donner — Power Supply Resource Plan • Constellation Contract — April 2003 thru December 2007 • WAPA Contract — (Small amount of energy through NCPA - Started 2005) • Shaped Capacity & Energy (SC&E) Contract from UAMPS ,,�-- Starts Jan 1 , 2008 until April 2009 • April 2009 thru April 2012 — Open position — Try to obtain contract si milar to the SC&E contract • 2012 Forward — IPP#3 Power Sales Contract r i Resource Plan — Short Term Projected Cost to Serve Load 12,000 200,000 180,000 10,000 160,000 0 140,000 0 8,000 120,000 3 0 6,000 100,000 a 80,000 L 4,000 60,000 40,000 2,000 20,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 CPS SCE IPP#3 Load MWh 3 2008 Options for Power Supply Estimated Cost of 2008 Power Supply Options 14,000 r $80.00 e N f $75.00 12,000 $70.00 10,000 $65.00 0 $60.28 8,000 $60.00 0 $55.00 .i:, 6,000 L y $50.00 a� >0 4,000 $45.00 $40.00 2,000 $35.00 0 — - $30.00 2005 2006 2007 2008 O Cost w/UAMPS 2008 M Cost w/Market 2008 46UAMPS Option---*--Market Option 4 i Estimated Rate Impact Estimated % Increase in Retail Electric Rates Due to Power Supply Costs 14,000 20.0% 18.0% 12,000 16.41% 16.0% 10,000 14.0% '. 8, i 12.0% 000 0 10.0% 6,000 8.0% 5.80% 4,000 6.0% 4.0% 2,000 0.90% 0.11% o 2.0/o 0 � ti 0.0% 2005 2006 2007 2008 Cost w/UAMPS 2008 M Cost w/Market 2008 +Increase w/UAMPS '}Increase w/Market' IPP UNIT 3 PROJECT - 2006 FACTS • Facts about Intermountain Power Plant UNIT 3 — Executive Summary — Energy Demand — IPP Unit 3 Project — Energy Resource Options — Coal Technology Today — IPP Emission Controls — Partners in Power — UAMPS, Intermountain Power Plant Unit 3 Brochure IPP#3 - Power Sales Contract & Project Agreements • Power Sales Contract Unit 3 • Project Agreements: (handed out and reviewed at the Oct 18t ' Board Meeting) — Ownership Agreement — Joint Operating Agreement — Common Facilities and Site Agreement — Unit 3 Lease, Use and Service Agreement • Truckee Donner PUD Load and Energy Resources Charts Truckee-Donner Peak Load & Resources 60 i IPP 3 40 - —_ - - 2% Growth,, 30 —a—1% Growth 'I 20 —*—No Growth 10 -- -- - i 'I I ' +A�9 t Monthly o Peak O N v CO CO O N CO CO O N �' CO ao O N Cr CO aD o History O O O O O � N N N N N M M CO M M � O O O O O O O O O O O O O O O O O O O O O N N N N N N CN N CN N N N N N N N N Year 10118/2006 8 Truckee-Donner Energy Load & Resources 700,000 600,000 - - -- -- --_ — - — - - - 500,000 - - - - - - 400,000 — - - - - - -- -- __ mm IPP 3 300,000 -- - - - -- - _ -�-4 o rover 1 200,000 - - � 2/a Growth' f No Growth 100,000 1 ` +Energy o History O N O CO O N C' CO 00 O CN CO 00 O N CO CO O O O O O O N N N N N M M M CO M V O O O O O O O O O O O O O O O O O O O O O N CN N N N N N N N CN N CN N CV N C 4 N CV N N N —year— 10/1Y2006 Yearly Power Supply Plans Projected Cost to Serve Load 12,000 200,000 180,000 10,000 160,000 '0 140,000 8,000 L 120,000 06 6,000 100,000 c w a 0 u 80,000 4,000 60,000 40,000 2,000 20,000 s � 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 .. -- CPS SCE — IPP#3 Load MWh 10 t i Post March, 2009 Power Supply • TDPUD has several options for the 2009 time period — Extend UAMPS SCE product, if available — Execute contract similar to existing arrangement (if the economise are good) with active power marketers — Participate in IPP3 — 2012 timeframe • Action item for Power Sales Contract on November 19 2006 agenda.