HomeMy WebLinkAbout18, CFPP - Approve Power Sales Contract - 4-4-2018
ACTION ITEM #18Carbon Free Power ProjectContract with UAMPS for the Consideration of a Power Sales Carbon Free Power ProjectContract with UAMPS for the Consideration of a Power Sales
April 4, 2018
UAMPS Carbon Free Power Project nuclear fuel cycle and upcoming schedule of projectdiscuss Power Sales Contract, Board Workshop to -March 7, 2018 •technology, technical and contractual
issuesSMR to discuss CFPP and Board Workshop -2018 February 7, •performance; andlicensing phase and financial and environmental technology, CFPP SMR to discuss Board Workshop –2017
February 1, •project;of the licensing phase plan, and the start of the outreach , free hedge-to discuss carbonBoard Workshop -2017 19, January •concerning the project; ession sinformational
and two Board members attended UAMPS Staff -2016 13, -September 12•study phase of the project and a 4 MW site share of the CFPP;the for Board approved to enter into an agreement -2015
August 19, •CFPP project;the Board Workshop to introduce –2015 15, April •This item has been before the Board many times•BACKGROUND / HISTORY UAMPS Carbon Free Power Project
NEW INFORMATION Legal Opinion with respect to PSC by District’s attorney•Form of Certificate covering District approval and execution of PSC•03-Resolution 2018•Executive Summary of Power
Sales Contract•Budget & Plan of Finance•Power Sales Contract•Talking Points and Abridged FAQ’s •Documents included in Board package:•Schedules from the Budget and Plan of Finance•licensing
phase in March 2019The Power Sales Contract will bring the District to the beginning of the •Consideration of Power Sales Contract (PSC);•Tonight’s discussion covers:•UAMPS Carbon Free
Power Project UAMPS Carbon Free Power Project
NEW INFORMATION UAMPS Carbon Free Power Project UAMPS Carbon Free Power Project
NEW INFORMATION contractssalespowerofsummaryLegalconstructionandacquisitionofcostforFinancingperiodlicensingtheduringcostsdevelopmentforFinancingperiodlicensingtheduringrightswithdrawal/reductionP
articipantfinanceofplanandBudgetperiodlicensingtheduringworkDevelopmentphasesandperiodsProject)pmc(committeemanagementProjectprovisionsandtermsBasicOverviewExecutive Summary of
Power Sales Contract •UAMPS Carbon Free Power Project UAMPS Carbon Free Power Project
NEW INFORMATION exist for participantsramps -Many off•years eachterm 40 year term + 2 license renewals of 20 Initial counselattorneys and outside District •Project Management Committee
(PMC) Representatives; and•including:Committee, UAMPS Legal by the Reviewed •0.667% Fully Subscribed (4 MW):•2.667%150 MW Subscription (4 MW):•2.1751%Interim period (4 MW): ••phased
developmentMost significant additions relate to the continued •specific items-New provisions added to address CFPP•projects’ other UAMPSfor power sales contracts The Power Sales Contract
for CFPP is similar to the •Power Sales Contract Overview•UAMPS Carbon Free Power Project UAMPS Carbon Free Power Project
NEW INFORMATION plan of finance•of $6,000,000 through March 31, 2019 development cost cap Set a •UAMPS and related matters; that may be incurred by osts cdevelopment additional limits
on the a resolution that set forth Project Management Committee approved •ramp is March of 2019-The next off•amendedthe Project if the budget and plan of finance is Participant will
have the option to reduce its entitlement or withdraw from •Ramps-Project Off•UAMPS Carbon Free Power Project UAMPS Carbon Free Power Project
Licensing Phase OneReduce or Withdraw Scheduled to be completed June 2020•finalization of all Project costsUpdates to the Budget and Plan of Finance, •Application (COLA)Construction
and Operating License Preparation, submission and processing of the •achieve full subscription for all Project Outputparty power purchasers to -owners and third-Contracting with prospective
Participants, co•Completion of definitive Project Agreements,•(ECT)Economic Competitive Test each run of the the Development Agreement and analyzing Estimating, design and engineering
work under •Begins on the Effective Date of the PSC•Governing board approvalfrom the Project at the end of Phase 1Participant will have the option to reduce or withdraw additional
subscription and/or cost share)19 (or sooner with -31-will occur around 3An amendment of the Budget and Plan of finance budget and plan of finance is amended entitlement or withdraw
from the Project if the Participant will have the option to reduce its
Licensing Phase TwoReduce or Withdraw License2023 upon the receipt of the NRC Scheduled to be completed Q2 •39 month review •costsFinance, finalization of all Project Updates to the
Budget and Plan of •receipt of the NRC LicenseNRC and is completed with the to the Operating License (COLA) Combined Construction and Begins with the submittal of the •Decommission
Phasesforward with Construction, Operations and Governing board approval required to move withdraw from the Project at the end of Phase 2Participant will have the option to reduce
or budget and plan of finance is amendedentitlement or withdraw from the Project if the Participant will have the option to reduce its
NEW INFORMATION 0.6667%Fully Subscribed (4 MW)2.6667%150 MW Subscribed (4 MW)2.1751%Interim Period (4 MW)Truckee (the "Participant"):June 2023April 2017$3,806,616June 2023June 2020$3,308,6872nd
Phase (Preliminary)–Licensing Period May 2020April 2019$438,9541st Phase (Remaining)–Licensing Period March 2019April 2018$40,000Phase (Maximum)st 1–Licensing Period March 2018April
2017$18,975FY18–Period Interim Finish Start ShareNet of CostParticipant to ramp and follow wind resources such as Horse Butte WindExcellent price for a resource that can act as carbon
free base load with flexibility •Price target (2017) estimated range: $45 to $65 per MWh•Estimated Costs to Completion of Development•UAMPS Carbon Free Power Project UAMPS Carbon Free
Power Project
NEW INFORMATION Site Location of CFPP and Horse Butte Wind Farm•Wind Farm Horse Butte Site Laboratory National Idaho UAMPS Carbon Free Power Project UAMPS Carbon Free Power Project
NEW INFORMATION UAMPS Horse Butte Wind Farm would be able to follow load on a real time basis.NuScalethat a single showed , NuScaleA study was performed by •Base load and flexible ramp
speed supports intermittent resources •UAMPS Carbon Free Power Project UAMPS Carbon Free Power Project
NEW INFORMATION Horse Butte Wind Project Figure 1. UAMPS Carbon Free Power Project UAMPS Carbon Free Power Project
View of Site Looking Southwest viewing elevation of ~ 100’ ) (On Hwy 26 approaching junction with Hwy 20,Closest Highway Approach–
FISCAL IMPACT projectcontinue with the has a unilateral right to decide whether to March 2019 each participant •Next steps•continuationparticipate in this project if further development
warrants Sales Contracts gives the District the ability to preserve the option to Power •the projecta decision to construct not is This •CFPPthe Power Sales Contracts for the Signing
•Tonight’s decision•UAMPS Carbon Free Power Project UAMPS Carbon Free Power Project
FISCAL IMPACT MWhper 65 The forecast price between $45 and $•portfolioCFPP also provides greater diversification in our resource The •dioxide regulation District to limit costs to comply
with future carbon and would allow the base load generation cost effective CFPP is a The •Without producing GHG•Cost effective•load and flexible ramping-Base•To exceed 60%, the next
resources must compliment our existing portfolio•carbon resources to reduce community District responded to ••Cap and Trade•Benefits of reducing carbon dioxide within portfolio•Over
60% RPS and carbon free resources•has exceeded all state mandates District The •UAMPS Carbon Free Power Project UAMPS Carbon Free Power Project
RECOMMENDATION counselsubstantially the form attached and approved by District Systems; and related matters in Municipal Power Associated the Carbon Free Power Project Power Sales Contract
with Utah 03 authorizing -the Board President to sign Resolution 2018Authorize •UAMPS Carbon Free Power Project UAMPS Carbon Free Power Project