HomeMy WebLinkAbout11 Consideration of an Extension of UAMPS Pooling Appendix concerning Stampede Hydro and City of FallonAgenda Item # 11
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CONSENT
To: Board of Directors
From: Stephen Hollabaugh
Date: February 20, 2013
Subject: Consideration of an Extension of UAMPS Pooling Appendix
concerning Stampede Hydro and City of Fallon
1. WHY THIS MATTER IS BEFORE THE BOARD
Board approval is required to enter into a contract or a pooling appendix agreement
longer than two years per district code 3.06.060
This item involves extension of the Pooling Appendix with UAMPS that transfers the
City of Fallon's Stampede Generation to Truckee Donner PUD in exchange for energy
from Truckee Donner PUD through UAMPS.
2. HISTORY
The City of Fallon (Fallon) and Truckee Donner Public Utility District (Truckee Donner)
have entered into a Western Area Power Administration Contract #07-NSR-01026 for
Energy Exchange Services of the Stampede Hydro generation. This contract shares
the generation between Fallon and Truckee Donner. Currently under a Pooling
Appendix with UAMPS, the Stampede generation is delivered to Truckee Donner and
in exchange for Fallon's portion, Truckee Donner sells 500 kW of its UAMPS
resources mix to Fallon. A true -up of MWh and dollars is completed annually. This
existing Pooling Appendix terminates on December 31, 2013.
3. NEW INFORMATION
Stampede Generation, UAMPS Pooling Appendix (Attachment 1):
Staff has negotiated with Fallon to extend through 2018, an exchange of energy from
the Stampede generation to Truckee Donner for energy to Fallon from Truckee
Donner's other generation at UAMPS. The basic agreement of the Pooling Appendix
is as follows:
• Assign all months of generation from Stampede to Truckee Donner.
• In exchange, Truckee Donner will sell the Fallon 500 kW per hour of its UAMPS
resource mix at a rate of $32/MWh minus the REC valuation.
• The REC valuation is calculated as the average of the WECC Green-E Wind
(wregis) Bid and Offer prices as listed in the bi-annual table.
• Once a year (during January) a true up of MWh's and dollars will be evaluated
and agreed upon by Truckee Donner and Fallon.
• The term of this Appendix begins January 1, 2014 through December 31, 2018
unless terminated by a Party providing 60 day written notice to the other
Parties.
• Any termination prior to December 31, 2018, will require an agreement of
Truckee Donner on an energy delivery methodology beginning the first day of
the month following the termination date.
4. FISCAL IMPACT
The net cost to Truckee Donner of the Stampede Generation, pooling agreement is
the difference between the existing Stampede Generation and cost of Truckee
Donner's other resources at UAMPS. These costs currently range between $20 and
$40 per MWh and do not include any REC's.
5. RECOMMENDATION
Approve the UAMPS Pooling Appendix concerning the transfer of energy from the
Stampede generation from the City of Fallon to Truckee Donner PUD.
JP�646�t/L
Stephen Hollabaugh
Assistant General Manager
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Michael D. Holley
General Manager