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HomeMy WebLinkAbout18 Pleasant Valley Wind Generation Agenda Item # 18 TRUCKEE DONNER Public Utiky District WORKSHOP To: Board of Directors From: Stephen Hollabaugh Date: March 18, 2009 Subject: Discussion of 200 kw Transfer of Pleasant Valley Wind Generation 1. WHY THIS MATTER IS BEFORE THE BOARD This item is informational regarding the possible assignment and assumption of approximately 200 kw of wind generation from Hildale City Utah to Truckee Donner PUD. 2. HISTORY Truckee Donner PUD is in the Master Firm Power Project of UAMPS. The Pleasant Valley Wind generation is part of this project contracted to UAMPS by PPM. 3. NEW INFORMATION A draft Assignment and Assumption Agreement for the purpose of acknowledging the terms and conditions of an agreement between Hildale City, Truckee Donner Public Utility District (Truckee Donner) and Utah Associated Municipal Power Systems (UAMPS). The key points of this agreement are outlined below: Hildale City has informed UAMPS of its intent to withdraw from all UAMPS projects as a result of the sale of its electric utility system to Garkane Energy Cooperative Inc. ("Garkane"). Hildale's sale of its electric system will be complete sometime between February 1, 2009 and June 30, 2009 (the exact date being the "Effective Date). Hildale must liquidate all of its positions in the UAMPS projects prior to its withdrawal. Truckee Donner will assume Hildale's entitlement share as to its PPM Transaction Schedule in the Master Firm Power Supply Project on the Effective Date. This generation is comprised of about 200 kw of wind generation of a purchase power agreement at a cost of about $56 per MWh. This generation will add to Truckee Donner's renewable energy mix within its overall electric portfolio. This will help Truckee Donner continue to meet its Renewable Portfolio Standard goals of 21% by the end of 2010. 4. FISCAL IMPACT The funding source for this generation will come from the purchase power, budget if executed. 5. RECOMMENDATION Receive this report and provide comment. SfthSt hen Hollabaugh Michael en olley Assistant General Manager General Manager DRAFT 2-6-09 ASSIGNMENT AND ASSUMPTION AGREEMENT This Assignment and Assumption Agreement("Agreement") is for the purpose of acknowledging the terms and conditions of an agreement between Hildale City("Hildale"),Truckee Donner Public Utility District("Truckee Donner") and Utah Associated Municipal Power Systems ("UAMPS"). WHEREAS,Hildale has informed UAMPS of its intent to withdraw from all UAMPS Projects as a result of the sale of its electrical utility system to Garkane Energy Cooperative,Inc. ("Garkane"); WHEREAS,Hildale's sale of its electrical utility system to Garkane will be completed sometime between the period of February 1, 2009 to June 30, 2009 (the exact date being the"Effective Date"); WHEREAS,Hildale must liquidate all of its positions in the UAMPS Projects prior to its withdrawal; WHEREAS,Truckee Donner will assume Hildale's entitlement share as to its PPM Transaction Schedule in the Master Firm Power Supply Project on the Effective Date; and WHEREAS,UAMPS will prepare a PPM Transaction Schedule for Truckee Donner's execution on the Effective Date. NOW THEREFORE BE IT RESOLVED,Hildale,Truckee Donner and UAMPS agree and acknowledge the following: 1. Hildale acknowledges and agrees to transfer its entitlement share of its PPM Transaction Schedule in the Master Firm Power Supply Agreement to Truckee Donner on the Effective Date. 2. Hildale acknowledges that it has obtained its Trustee's approval of the transfer of its entitlement share of the PPM Transaction Schedule to Truckee Donner. 3. UAMPS acknowledges that it has obtained approval of the transfer of Hildale's entitlement share in the PPM Transaction Schedule to Truckee Donner from the Firm Power Supply Project Management Committee. 4. Truckee Donner acknowledges and agrees that it will execute a PPM Transaction Schedule to the Master Firm Power Supply Agreement on the Effective Date. Dated this day of , 2008. This Agreement is effective upon Hildale's,Truckee Donner's and DAMPS' execution. UTAH ASSOCIATED MUNICIPAL HILDALE CITY POWER SYSTEMS By: BY Title: Title: Date: Date: TRUCKEE DONNER PUBLIC UTILITY DISTRICT By: Title: Date: