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HomeMy WebLinkAbout9,UAMPS Veyo Heat Recovery Project - Power Sales Contract Consent Item # 9 April 16, 2014 Heat Recovery ProjectContract for the UAMPS Veyo Consideration of a Power Sales Power Sales Contract for the UAMPS VolatilityResource DiversityCostResourcesRenewableContract DurationConservation Power Supply : BalancesFuture 2 District’s future power supply is intended to balance:•Greater conservation will reduce market purchases–Offsets growth that would otherwise require additional resources–3% of total load -Conservation is expected to account for 1•next three yearsForecast assumes that load increases by 1% annually over the •purchasesConservation is considered First Resource for all new energy Background / History Veyo Heat Recovery Project Power Sales Contract for the UAMPS 3 Contract was reviewed along with a project updateAt the March 19, 2014 workshop, the draft Power Sales •Workshop was presented to the Board on March 19, 2014•Veyo Heat Recovery project is currently in the study phase •starting a study projectResource Project investigates possible generation prior to •Truckee Donner PUD is in the Resource Project at UAMPS•Background / History Veyo Heat Recovery Project New Information Veyo Heat Recovery ProjectPower Sales Contract for the UAMPS 4 depending on financing strategyConservative cost estimate is $63 per MWh to $68 •Project is in final development and permitting stage•Veyo Heat Recovery Project will be 7.8 MW •Project Statusour portfolioThis resource is carbon free and will reduce the carbon in •contract stageThe Veyo Heat Recovery Project is now at the power sales • New Information Veyo Heat Recovery ProjectPower Sales Contract for the UAMPS 5 Represents approx. 7% of District Energy supply•District’s 1,792 kW capacity•Executive summary•Certificate of participation•Authorizing resolution•with:Power Sales Contract is included in the Board packet along •Power Sales Contract Fiscal Impact Veyo Heat Recovery ProjectPower Sales Contract for the UAMPS 6 approximately $2.50 per MWhCapital contribution of $500,000 will lower forward cost by •District has $500,000 in our UAMPS retention fund •Savings of at least $7 per MWh in 2018― Trade auction Enables District to sell more allocations in the Cap and •Resource is carbon free•purchased from the marketElectric Supply Procurement budget that might otherwise be The Veyo Heat Recovery project represents a portion of the • Recommendation Veyo Heat Recovery ProjectPower Sales Contract for the UAMPS 7 Heat Recovery Projectretention fund balance for a capital contribution to the Veyo Approve the use of $500,000 of the District’s UAMPS •attachedSystems; and related matters in substantially the form Power Sales Contract with Utah Associated Power authorizing and approving the Veyo Heat Recovery Project 15 -Authorize the Board President to sign Resolution 2014•