HomeMy WebLinkAboutPolicy re purchase of wholesale power
To: Board of Directors
From: Peter Holzmeister
Date: April 10, 2003
Subject: Policy regulating purchase of wholesale power
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1. Why this matter is before the board
This item recommends that the board amend the District Code of Policies related to purchase of wholesale power. Only the Board can amend the District Code of Policies.
2. History
When the District first entered into a contract with Idaho Power Company, we were buying wholesale power on a market rate tied to the monthly average price of the Mid-Columbia Index.
We recognized that there would be times when it would be advantageous to lock in a contract at a fixed price, and the board adopted a policy allowing the Power Supply Engineer to enter
into power contracts under certain conditions and following certain procedures. A copy of that policy is attached for your review.
3. New information
The contract with Idaho Power Company is terminated. The new contract with Constellation Power Services is so different than the Idaho contract that the policy is now out of date and
inappropriate for today’s circumstances. Now we have a contract that delivers blocks of power to us at a fixed price. To make our contract completely load following we need to buy
and sell on the market in any single day small quantities of power.
To enable us to do that we are suggesting the board modify the policy. The change is not large. Basically, we suggest that the Power Supply Engineer, following the same procedures
as have been in the policy for years, be authorized to buy and sell the small daily quantities of power needed to match our load.
The revised policy is attached for your review and consideration.
4. Recommendation
I recommend that the board adopt the resolution amending Chapter 3.06 of the District Code of Policies establishing procedures for the