HomeMy WebLinkAboutRES 2011-26 - Board Of TRUCKEE DONNER
Resolution No. 2011 - 26 Public Utility District
AUTHORIZING NATURAL GAS TRANSACTIONS
WHEREAS, Truckee Donner PUD ("District") desires to purchase and sell natural gas in
connection with the operation of its electric distribution system (the "System"); and
WHEREAS, the District desires the flexibility to engage in a program to store or hedge
natural gas for the purpose of managing the cost of natural gas for the System; and
WHEREAS, the District is a Member of the Utah Associated Municipal Power Systems
("UAMPS"), a political subdivision of the State of Utah; and
WHEREAS, the District desires to become a Participating Member in UAMPS Natural
Gas Project for the purpose of efficiently acquiring, selling, transporting, storing, and
hedging natural gas;
WHEREAS, the District desires to enter into a Natural Gas Project Master Agreement,
including, without limitation, related confirmations and credit support annexes or any
necessary amendments thereto (the "Agreement") with UAMPS which will provide for (i)
long term purchases or sales of natural gas [which may be sourced from gas prepaid with
the proceeds of tax-exempt bonds], (ii) short term purchases or sales of natural gas,
including remarketing of prepaid gas, (iii) transportation or storage of natural gas, and (iv)
hedging of the rate to be paid by the District with respect to a notional amount of natural
gas during a stated period (each a "UAMPS Gas Transaction"); and
WHEREAS, each UAMPS Gas Transaction will be evidenced by a written confirmation
issued under the Natural Gas Project Master Agreement between UAMPS and the
District or other electronic means setting forth the terms and conditions of such UAMPS
Gas Transaction (a "Confirmation" and collectively, the "Confirmations"); and
WHEREAS, the payments to be made by the District to UAMPS under the Natural Gas
Project Master Agreement constitute a cost of natural gas and constitute operation and
maintenance expenses of the System;
NOW THEREFORE, BE IT RESOLVED:
1. The entry by the District into the Natural Gas Project Master Agreement or subsequent
amendments thereto including one or more Confirmations is hereby approved. The
payments to be made by the District thereunder constitute operation and maintenance
expenses of the System.
2. The Board President, and the Secretary (collectively, the "Primary Authorized Officers")
are hereby authorized to execute and deliver the Natural Gas Project Master Agreement,
on behalf of the District, in such form as the Primary Authorized Officer executing it may
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approve, such approval to be conclusively evidenced by the execution thereof.
3. The Primary Authorized Officers, and UAMPS Representative (collectively, the
"Participant Gas Representatives") are hereby authorized to enter into, from time to time,
one or more Confirmation in such form as the Officer executing it may approve, issued
under an Agreement in accordance with the following parameters.
(a) The notional amount of gas purchased under all Confirmation may not exceed
280,000 MMBtu in any calendar year;
(b) The term of any transaction under a Confirmation may not exceed 10 years,
unless such Confirmation is for the purchase of Prepaid Gas in which case the
term may not exceed (thirty) years;
(c) At the time of execution, the expected average price for gas purchases in a
calendar year shall not exceed $10/MMBtu. For purposes of this limitation, a
forward curve as of the date of any Confirmation shall be used to approximate the
price of any index based transaction.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held
within the district on the 7th day of December 2011 by the following roll call vote:
AYES: Directors Aguera, Bender, Hemig and Laliotis
NOES: None
ABSTAIN: None
ABSENT: Director Ferree
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By �---
Tony Laliotis, President
ATTEST:
Michael D. Holley, Clerk of the Board
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