HomeMy WebLinkAboutMem Poe Hydroelectric Project-NCPA
To: Board of Directors
From: Stephen Hollabaugh
Date: March 28, 2003
Date of Board Meeting: April 1, 2003
Subject: Poe Hydroelectric Project – Approval of NCPA Member Agreement
1. WHY THIS MATTER IS BEFORE THE BOARD
This item concerns the approval of a member agreement with NCPA concerning
the Poe Hydroelectric Project. The Board is asked to approve this second
phase member agreement.
2. HISTORY
The Poe Hydroelectric Project is located on the North Fork Feather River near
Pulga CA. Attached is a project description and timeline prepared by NCPA.
The Poe Project is up for re-licensing. PG&E missed the re-licensing deadline
and by law cannot be granted preference status for re-licensing. PG&E sought to
backdate the Poe license date with FERC. NCPA intervened and asked FERC
to reject PG&E’s motion and FERC denied PG&E’s request an opens up
competitive license proceedings. NCPA then appealed FERC’s Order to grant
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preference to PG&E in the 9 Circuit Court.
NCPA, on behalf of its Project Members, shall prosecute a competing license
application for the Poe Project, alone or in conjunction with others. Currently the
City of Fremont and Butte County have also filed and are working in conjunction
with NCPA. If NCPA is successful is acquiring the Poe Project, Truckee Donner
Public Utility District will have a participation of 2.0216% as listed in the member
agreement.
The Poe Project is projected to cost about $20.00/MWh (or 2.0 cents per kwh)
after paying PG&E for the value of the project. Jim Feider (Utility Director of
Redding) was once quoted “you can never have enough two cent power”.
3. NEW INFORMATION
The NCPA Commission of which Jim Maass is our commissioner has agreed on
the project percentages for each member that is consistent with how NCPA has
allocated project percentages in the past. From that, this member agreement
has been prepared for each member’s Board to approve. Truckee Donner Public
Utility District percentage of 2.0216% of $750,000 would be $15,162. I believe
that this is a small amount to pay for the possible opportunity to acquire 2 to 3
MW of generation for our District.
4. RECOMMENDATION
I recommend that the board approve the (Second Phase) Member Agreement
for Financing and Plannig and Development Activities of Hydroelectric Project
Number Two , The Poe Hydroelectric Project.