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HomeMy WebLinkAbout1997-06-18 '08%18.97 ;WED 14:41 F3Y 002 AGREEMENT FOR THE SALE AND PURCHASE OF FIRM CAPACITY AND ENERGY BETWEEN . IDAHO POWER COMPANY AND THE TRUCKEE-DONNER PUBLIC UTILITY DISTRICT • 06/18/97 WED 14:41 FAX Z003 AGREEMENT FOR THE SALE AND PURCHASE OF FIRM CAPACITY AND ENERGY BETWEEN IDAHO POWER COMPANY AND THE TRUCKEE-DONNER PUBLIC UTILITY DISTRICT TABLE OF CONTENTS ARTICLE TITLE PAGE No. IDefinition........ ......... ....... .....................................................2 2 Term and Effective Date ............................................................3 3 Exhibits...... ................ ...................._...................4 4 Transmission and Ancillary Services..........................................4 5 Amounts, Conditions, and Scheduling of Firm Capacity and Energy....................................................5 6 Charges ............. ..................­_.... ....... ....................................5 7 Payment and Settlements............................................................6 8 Uncontrollable Forces........... ........_...... ............................ ......7 9 Waivers..... .......... ........................................... ....... ............ 8 10 Assignments........................................................ ..................__8 11 Amendment, Review and Suspension.........................................8 12 Dispute Resolution.... ...... ............ ............................ ....... ...9 13 Notices ............. ...... ..................................................... ...........10 14 Third Party Beneficiary.............................................................10 15 Liability............................................... ............. ........... ........... 10 16 Governing Law...... ... ................ ................ ...... .............._11 17 Priority of Service........................... ........­-_.......­................. 11 11 18 Entire Agreement......................................... .................... ....... 19 counterparts............. ...... ..................I............. .................... ... 12 d6,,18 97 WED 14: 42 FAX Z004 AGREEMENT FOR THE SALE AND PURCHASE OF FIRM CAPACITY AND ENERGY BETWEEN IDAHO POWER COMPANY AND THE TRUCKEE-DONNER PUBLIC UTILITY DISTRICT EXHIBITS OperatingCriteria .................. ...... ...........................................13 2 Capacity and Energy Rate Schedule.................. ...................... 14 08%18/97 WED 14:42 FAX Z 005 • AGREEMENT FOR THE SALE AND PURCHASE OF FIRM CAPACITY AND ENERGY BETWEEN IDAHO POWER COMPANY AND THE TRUCKEE-DONNER PUBLIC UTILITY DISTRICT THIS AGREEMENT, is entered into this day of June, 1997, between IDAHO POWER COMPANY, a corporation created pursuant to the laws of the State of Idaho, with its principal offices in Boise, Idaho, hereinafter referred to as "Idaho Power" and the TRUCKEE-DONNER PUBLIC UTILITY DISTRICT, with its principal offices in Truckee, California,hereinafter referred to as "Truckee-Donner"(hereinafter referred to as"Parties"and individually as "Party"). . WITNESSETH: WHEREAS, Idaho Power is engaged in the generation, transmission, distribution and sale of electric power and energy; and WHEREAS, Truckee-Donner is engaged in the distribution and sale of electric power and energy in the state of California; and WHEREAS, the electric systems of Idaho Power and Truckee-Donner are interconnected with the electric system of Sierra Pacific Power Company ("Sierra Pacific"); and WHEREAS, Idaho Power is a fifty percent (50%) owner of the Valmy Power Plant with Sierra Pacific in northern Nevada; and WHEREAS, Truckee-Donner desires to purchase its full electrical requirements from Idaho Power, and WHEREAS, Idaho Power desires to provide the full electrical requirements to Truckee-Donner. - 1 - 06/18/97 FEED 14:42 FAX Z 006 • NOW, THEREFORE; the Parties hereby undertake, promise and agree, as follows: ARTICLE 1 -DEFINITIONS The following terms, when used herein with initial capitalization, whether in the singular or plural, shall have the meanings specified: 1.1 "Agreement Shall mean this Agreement for the Sale and Purchase of Capacity and Energy between Idaho Power Company and the Truckee-Donner Public Utility District. 1.2 "Alternate Points of Delive Shall be either the Valmy Switchyard located at the Valmy Power Plant, or any point on Sierra Pacific's system where power and energy may be delivered to Sierra Pacific's system for Truckee-Donner. 1.3 "Billing Demand": Shall mean the maximum one-hour demand in megawatts(MW) for the fixed sixty (60)minute period(that conforms to regular clock hours), including Sierra Pacific's transmission losses associated with this delivery, supplied to Sierra Pacific for the account of Truckee-Donner, during a Billing Period. 1.4"Billin¢ Period": Shall be a calendar month(Pacific Prevailing Time). 1.5 "Heavv Load Hours" or"HLH": Shall be those hours ending 0700 through 2200 Pacific Prevailing Time ("PPT'� seven(7) days per week. 1.6 "Heavv Load Hour Billing Energy": Shall mean the amount of energy, including Sierra Pacific's transmission losses associated with this delivery, supplied to Sierra Pacific for the account of Truckee-Donner pursuant to this Agreement during a Billing Period. 1.7"Light Load Hours"or"LLH": Shall be those hours ending 0100 through 0600 hours and 2300 and 2400 hours seven(7) days per week. 1.8 "Light Load Hour Billing Energy": Shall mean the amount of energy, including Sierra Pacific's transmission losses associated with this delivery, supplied to Sierra Pacific for the account of Truckee-Donner pursuant to this Agreement during a Billing Period. - 2 - 08.18%97 WED 11:42 FAX Z 007 • 1.9 "Mid-Columbia Index" or"Index is the price as reported by Dow Jones Company for the Mid-Columbia trading hub. This Index represents a weighted average price of both HLH and LLH energy. 1.10 "Point of Delivery Shall be Idaho Power's 345 kV Midpoint Transmission Station. 1.11 "Prudent Utility Practice": Shall mean any of the practices, methods, and acts engaged in or approved by a significant portion of the electrical utility industry, or any practices, methods, and acts which, in exercise of reasonable judgment in light of the facts known at the time, could have been expected to accomplish the desired result at the lowest reasonable cost consistent with reliability, safety,and expedition, and the requirements of governmental agencies having jurisdiction. Prudent Utility Practices are not intended to be limited to the optimum practice, method,or act to the exclusion of all others, but rather to be a range of possible practices, methods, or acts. ARTICLE 2 - TERM AND EFFECTIVE DATE 2.1 This Agreement shall be effective and services shall commence as of 0001 hours Pacific Prevailing Time ("PPT")July 1, 1997. 22 Unless terminated earlier pursuant to other provisions of this Agreement,this Agreement shall continue in effect until 2400 hours PPT three (3) years following the first date of service pursuant to the terms and conditions of this Agreement ("Termination Date"}; provided, however, all obligations incurred hereunder shall be preserved until satisfied,and provided, further,in the event the Parties desire to extend this Agreement beyond the Termination Date,the Parties will agree on the price for the services provided hereunder prior to such extension period. 2.3 Idaho Power is entering into this Agreement under its Original Volume No. 6, Market Rate Power Sale Tariff on file with the Federal Energy Regulatory Commission ("FERC" or"Commission"). - 3 - 06/18/97 RED 14:40 FAX a 008 ARTICLE 3 - EXHIBITS 3.1 The exhibits hereto are part of this Agreement and by this reference are incorporated herein. The exhibits are as follows: Exhibit 1 -Operating Criteria Exhibit 2 - Capacity and Energy Rate Schedule 3.2 Exhibit 1 may be revised from time to time upon written agreement of the Parties. 3.3 Exhibit 2 is fixed until the Termination Date of this Agreement, except for the conditions contained in paragraph 6.3 of this Agreement. ARTICLE 4 - TRANSMISSION AND ANCILLARY SERVICES 4.1 Idaho Power's power business unit, at its own expense, shall secure the necessary transmission to the Point of Delivery. 4.2 Idaho Power may use the Alternate Point(s) of Delivery for deliveries to Sierra Pacific for the account of Truckee-Donner, in accordance with paragraph 28.4 (Secondary Service) of Sierra Pacific's Open Access Transmission Tariff ("Transmission Tariff'), including: (1)when such use is economically advantageous for Idaho Power, or (2) emergencies on Idaho Power system. 4.3 Truckee-Donner, at its own expense, shall secure the necessary transmission from Sierra Pacific to provide for the delivery of services pursuant to this Agreement. 4.4 Idaho Power shall provide, at no additional charge to Truckee-Donner,the following ancillary services, required under Sierra Pacific's Transmission Tariff, during the term of this Agreement: 4.4.1 Energy imbalance service, 4.4.2 operating reserves- spinning reserve service, 4.4.3 operating reserves- supplemental reserve service, and 4.4.4 loss compensation. 4.5 Truckee-Donner shall be responsible for obtaining and bear the costs for the following ancillary services, required under Sierra Pacific's Transmission Tariff: • 4.5.1 regulation and frequency response service, - 4 - 06/18.97 WED 14:43 FA-1 10009 . 4.5.2 scheduling system control and dispatch service, 4.5.3 reactive supply and voltage control from generation sources service, and 4.5.4 Sierra Pacific computer hardware and software modifications to accommodate Truckee-Donner operating reserve requirements per section 15 of Sierra Pacific's Transmission Tariff. ARTICLE 5 - AMOUNTS CONDITIONS AND SCHEDULING OF FIRM CAPACITY AND ENERGY. 5.1 Subject to the rates, terms and conditions herein provided and pursuant to the Operating Criteria set forth in Exhibit i of this Agreement,Idaho Power shall make available to Sierra Pacific at the Point of Delivery or the Alternate Point(s) of Delivery for Truckee-Donner, and Truckee-Donner shall purchase from Idaho Power, the capacity and associated energy required to satisfy the full requirements of Truckee-Donner's electrical load during the term of this Agreement. 5.2 The capacity and associated energy provided pursuant to this Agreement is firm . backed by the system resources of Idaho Power, including Idaho Power's share of the Valmy Power Plant and Idaho Power's other network resources. 5.3During transmission contingencies on Sierra Pacific's transmission system, Idaho Power will make available to Sierra Pacific its share of Valmy generation, up to the load requirements of Truckee-Donner, for redispatch, pursuant to Sierra Pacific's Transmission Tariff In any event, Idaho Power will be responsible for any costs associated with the redispatch of resources resulting from said contingencies. ARTICLE 6 -CHARGES 6.1 For the capacity provided pursuant to this Agreement,Truckee-Donner shall pay Idaho Power for each Billing Period, an amount equal to the product of the Demand Charge specified in Exhibit 2 of this Agreement and the Billing Demand. 6.2 For the energy provided pursuant to this Agreement,Truckee-Donner shall pay Idaho Power for each Billing Period, an amount equal to the sum of(1)the HLH Energy • Charge specified in Exhibit 2 of this Agreement multiplied by the HLH Billing - 5 - 06%18.97 WED 14: 43 FAX Z 010 • Energy, and (2)the LLH Energy Charge specified in Exhibit 2 of this Agreement multiplied by the LLH Billing Energy. 6.3 During the term of this Agreement, Truckee-Donner shall have the right to convert the HLH Energy Charge and LLH Energy Charge to a fixed energy charge. 6.4 This Agreement provides for normal load growth. In the event Truckee-Donner experiences load growth in either demand or energy in any given twelve(12)month period that exceeds ten percent(10%)of the previous twelve (12) month period (adjusted to exclude the affects of weather), Idaho Power reserves the right to adjust the rates for that incremental portion of load exceeding ten percent(10%). ARTICLE 7 - PAYMENT AND SETTLEMENTS 7.1 Idaho Power shall bill Truckee-Donner on or before the tenth (10") day of each month. Truckee-Donner's payment shall be made on or before the twenty-fifth(25 ) day of the same month. If the twenty-fifth (25")day of the month is a holiday or weekend, payment shall be made on the next workday following the twenty-fifth • (25s)day of the month. 7.2 All billing under this Agreement shall be submitted to: Truckee Donner Public Utility District Attn: Accounting 11570 Donner Pass Road P.O. Box 309 Truckee, California 96160 7.3 All payments made to Idaho Power shall be by electronic funds transfers to: Wire to: U S Bank of Idaho Boise, Idaho Plaza Office ABA No, 123103729 For credit to: Idaho Power Company General Fund Account Account No. 4267807479 REF: Truckee-Donner 7.4 Bills which are not paid in full by Truckee-Donner when due shall thereafter bear interest at the rate of one and one-half percent(1 t/2%)per month or at the maximum - 6 - 0 011 06;18-`97 WED 14:43 FAX rate of interest allowed by law, whichever is less. In the event any bill or part thereof be disputed, payment of the bill as rendered shall be made when due, with subsequent adjustment for any amount found to be in error. Interest at one and one-half percent (11/2%)per month or at the maximum rate of interest allowed by law,whichever is less, shall be included in the final monetary settlement of any adjustment. Such interest shall accrue from the date of original payment to the date of settlement of any adjustment. 7.5 Idaho Power may, at its sole discretion, terminate this Agreement if Truckee-Donner is more than sixty (60)days delinquent in the payment of amounts due to Idaho Power. Any obligations of Truckee-Donner to Idaho Power that were incurred prior to Idaho Power's notice of termination shall remain until satisfied. ARTICLE 8 -UNCONTROLLABLE FORCES 8.1 Neither Party shall be considered to be in default in performance of any of its obligations except to make payment as specified when a failure of performance shall • be due to an uncontrollable force. The term"uncontrollable force" means any cause beyond the control of the Party affected, including but not restricted to failure of or threat of failure of facilities,flood,drought, earthquake, storm, fire,lightning, epidemic, war,riot,civil disturbance or disobedience, labor dispute, labor or material shortage, sabotage, restraint by court order or public authority, and action or non- action by or failure to obtain the necessary authorizations or approvals from any governmental agency or authority which by exercise of due diligence such Party could not reasonably have been expected to avoid and which by exercise of due diligence it has been unable to overcome. No Party shall,however, be relieved of liability for failure of performance if such failure be due to causes arising out of its negligence or due to removable or remediable causes which it fails to remove or remedy within a reasonable time period. Nothing contained herein shall be construed to require a Party to settle any strike or labor dispute in which it may be involved. A Party rendered unable to fulfill any of its obligations by reason of an uncontrollable • -7 - 06%18%97 WED 14:44 FAX Z 012 . force shall give prompt written notice of such fact to the other Party and shall exercise due diligence to remove such inability within a reasonable time period. ARTICLE 9- WAIVERS 9.1 Any waiver at any time by a Party of its rights with respect to a default under this Agreement or any other matter shall not be deemed a waiver with respect to any subsequent default of the same or any other matter. ARTICLE 10 -ASSIGNMENTS 10.1 Neither Party shall assign this Agreement, or any interest therein, without the prior written consent of the other Party except if such assignment is: 10.1.1 made to any person or entity into which or with which the Party making the assignment is merged or consolidated or to which the Party transfers substantially all of its assets; 10.1.2 made to any person or entity wholly owning, wholly owned by, or wholly . owned in common with the Party making the assignment; 10.1.3 made solely as security of an underlying debt. Such written consent shall be provided within thirty(30) days of receipt of notice of assignment by the consenting Party, and such consent shall not be unreasonably withheld. Any assignment made without such consent shall be void. ARTICLE I 1 -AMENDMENT REVIEW AND SUSPENSION 11.1 This Agreement may be amended or changed only upon written agreement of the Parties. 11.2 Should either Party believe the other Party has committed a material breach of this Agreement, it shall give written notice of such breach to the other Party and specify the nature of the breach. A Party receiving such notice shall have thirty (30) days from its receipt to correct the specified breach. _ g _ 06�18;97 WED 14: 44 FAX Z 013 . 11.2.1 If correction of the breach is not made in a satisfactory manner to the Party giving notice,then the Parties shall resolve the dispute pursuant to the remedies set forth in Article 12 hereof, Dispute Resolution. 11.3 Notwithstanding the provisions of 11.2 above, Idaho Power may suspend service provided under this Agreement at any time upon thirty (30) days prior written notice to Truckee-Donner in the event of nonpayment of any charges due pursuant to this Agreement. If payment of such charges is made by Truckee-Donner within the thirty(30) day period, services provided under this Agreement shall not be suspended. ARTICLE 12 - DISPUTE RESOLUTION 12.1 In the event that a dispute should arise between the Parties concerning the terms and enforcement of this Agreement and the Parties are unable to agree on a mutually acceptable resolution, the Parties agree to attempt to resolve the issue through mediation. Each Parry shall bear its own cost of mediation, however,the mediator's fee and expenses shall be borne equally by both Parties. 12.1.1 In the event mediation is unsuccessful, the Parties may agree in writing to submit the dispute to binding arbitration. The Commercial Arbitration Rules of the American Arbitration Association shall apply. Upon their agreement to arbitration,the Parties shall endeavor to select a single arbitrator who, by reason of his/her education and experience, is qualified and mutually acceptable to both Parties. 12.1.2 If the Parties are unable to agree on a mutually acceptable arbitrator(s) within thirty (30) days of their written agreement to arbitrate, either Party may withdraw its agreement to arbitrate and pursue remedies available to it at the Commission, or in a court of competent jurisdiction. - 9 - 06/18i97 WED 14:44 FAX Z 014 • ARTICLE 13 -NOTICES 13.1 Any formal notice, demand or request shall be in writing and shall be deemed properly served, given or made if delivered in person, or sent by either registered or certified mail, postage prepaid, or prepaid telegram or facsimile. 13.2 Any such notice, demand or request directed to Idaho Power shall be addressed to: General Manager, Sales Idaho Power Company P.O. Box 70 Boise, ID 83707 13.3 Any such notice, demand or request directed to Purchaser shall be addressed to: General Manager Truckee Donner Public Utility District 11570 Donner Pass Road P.O. Box 309 Truckee, California 96160 13.4 The designation of the above persons or the address of any such person,may be changed at any time by notice given in the same manner as provided for other notices. ARTICLE 14 -THIRD PARTY BENEFICIARY 14.1 This Agreement shall not be construed to create rights in, or to grant remedies to, any third party as a beneficiary of any duty, obligation or undertaking established herein. ARTICLE 15 -LIABILITY 15.1 Subject to applicable state and federal law which specifically limits a Party's ability to enter into this Section 15, neither Party, its directors, members of its governing bodies, officers or employees, shall be liable to the other Party for any loss or damage to property, loss of earnings or revenues, personal injury, or any other direct, indirect, or consequential damages or injury which may occur or result from - 10 - 06/18/97 WED 14:45 FAX 2015 the performance or non-performance of this Agreement, including any negligence arising hereunder, unless actions or claims and resulting liability,judgments and costs were caused by or resulted from an action taken or not taken by a Party or Parties at the direction of its or their directors, members of its or their governing bodies,officers or employees with management or administrative responsibility affecting its or their performance which is knowingly or intentionally taken or not taken with conscious indifference to the consequences thereof or with intent that injury or damage would result or would probably result therefrom. ARTICLE 16- GOVERNING LAW 16.1 This Agreement shall be interpreted,construed and enforced in accordance with the laws of the state of the Party seeking to enforce the terms of the Agreement or the laws of the United States of America, whichever is applicable. ARTICLE 17 -PRIORITY OF SERVICE • 17.1 In the event of conditions on Idaho Power's system that require curtailment or interruption of electric service in order to maintain system reliability,Truckee- Donner shall have priority of service under this Agreement equivalent to Idaho Power's firm native system load and long-term firm power supply and transmission service obligations (those having terms of twelve (12)months or more). ARTICLE 18 -ENTIRE AGREEMENT 18.1 This document constitutes the entire agreement of the Parties and supersedes all previous agreements, whether written or oral,with respect to the transaction addressed herein. • - 11 - 06/18/97 WED 14:45 FAX Z016 ARTICLE 19 - COUNTERPARTS 19.1 This Agreement may be executed in counterparts, in which case all such counterparts shall be deemed to constitute a single document with the same force and effect as if both Parties hereto having signed a counterpart had signed the other counterpart. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized officers as of the date first above written. IDAHO POWER COMPANY By: Title: Date: • TRUCKEE DONNER PUBLIC UTILITY DISTRICT By: Title: Date: - 12 - 98i18i97 WED 14:45 FAX Z 017 AGREEMENT FOR THE SALE AND PURCHASE OF FIRM CAPACITY AND ENERGY BETWEEN IDAHO POWER COMPANY AND THE TRUCKEE-DONNER PUBLIC UTILITY DISTRICT EXHIBIT I Operating Criteria (TO BE ADDRESSED AT THE TIME TRUCKEE-DONNER RECEIVES TRANSMISSION FROM SIERRA PACIFIC) • Metering information • Scheduling procedures • Contingencies • - 13 - 06 18/97 WED 14:45 FAX 018 AGREEMENT FOR THE SALE AND PURCHASE OF FIRM CAPACITY AND ENERGY BETWEEN IDAHO POWER COMPANY AND THE TRUCKEE-DONNER PUBLIC UTILITY DISTRICT EXHIBIT 2 Capacity and Enerev Rate Schedule APPLICABILITY Applicable to firm capacity and energy delivered to Truckee-Donner Public Utility District at specified points of delivery, as provided in this Agreement for the Sale and Purchase of Firm Capacity, Energy, and those ancillary services described in paragraph 4.4 of this Agreement. • MONTHLY CHARGE The monthly charge shall be the sum of(1)HLH Billing Energy multiplied by HLH Energy Charge, (2) LLH Billing Energy multiplied by LLH Energy Charge, and(3) Billing Demand multiplied by Demand Charge, Where: Demand Charge: S 1.50 per kW of Billing Demand HLH Energy Charge: Daily HLH Mid-Columbia Index in mills per kilowatthour averaged over the month plus 2.25 mills per kilowatthour. LLH Energy Charge: Daily LLH Mid-Columbia Index in mills per kilowatthour averaged over the month plus 2.25 mills per kilowatthour. • - 14 - TDPUD MEMORANDUM June Z 1997 TO; Board of Directors' FROM: Peter L. Holzmeister, General Manager SUBJECT: Monthly staff report AGENDA # 9 1. Wholesale powersuppiy: Steve Hollabaugh and I are continuing to work toward arranging a new wholesale power supply for the District to commence on July 1, 1997. We will bring this matter to the Board for action on June 18. At this point we are still working on the details with the help of Bob McDiarmid and Tom Green. SPPCo is still raising basis less objections and we are still working with them to follow the industry requirements. We will discuss this in detail on June 18. 2. NCPA restructuring: I am continuing to work with the NCPA members and NCPA staff to bring about a restructuring of NCPA to accommodate the new electric industry. We are working on several issues simultaneously including billing and metering, future of generation assets, • scheduling and dispatching services and the ENRON alliance. 3. TROA: I have been able to again dedicate some of my time to the Truckee River Operating Agreement negotiations. I was forced to back out of that issue during the past winter, but now that Ed Taylor is here and picking up some of the tasks i was performing i am now able to get involved in TROA again. 4. Truckee local governance study: i met with the Truckee area district managers and the town manager on June 9. There is still much disagreement among the managers on how to proceed, but we were able to agree that each District and the town would prepare a description of their respective agencies. This description would be a kind of report card on each agency and would serve as a data base leading to other phases of a local governance study. There is still considerable concern that the study will turn into a consolidation report, which no one wants, with the possible exception of Nevada County LAFCo. 5. LAFCo review of our Sphere of Influence: We submitted our Sphere of Influence report to Nevada County LAFCo several months ago and to date it has not been reviewed by them. SR Jones is trying to set up committee meetings to review our Sphere document, but she has encountered scheduling conflicts among the LAFCo commissioners. SR is going to try to get us to agree to move the northern boundary of our Sphere of influence southward on the theory that it is unlikely that development will take place is the northern area during the next twenty years. I disagree with moving the boundary, although I agree that it is unlikely that development will occur in that area. I believe our sphere should include that northern area because our groundwater basin boundary is that far north and we need to be able to plan for the proper management of the entire basin. In fact, I believe we may want to annex that area as soon as possible. 6, Setting of performance objectives for management staff.- In order to make sure the entire • management staff is working in concert, 1 have begun to prepare new objectives for each person to guide their efforts for the remainder of 1997. Several members of the management staff are working on portions of electric industry deregulation and 1 need to make sure it is clear to the group as a whole what each of us is doing. In addition, we are all working on projects other than electric industry restructuring and we need to keep the program moving forward. 7. Implementation of MOU provisions: With adoption of the new MOU between our District and IBEW Local 1245, there are several matters that now need to be implemented. I need to set up a re-engineering steering committee consisting of union and management staff. We need to begin the process of updating the job descriptions. The department heads need to establish training goals for employees who are interested in preparing for new jobs or advancement in their current careers. We need to make sure the performance appraisal process is fully implemented and working smoothly. 8. Preparing for implementation of AB 1890.- 1 have set up a team of staff to work on different aspects of the implementation of AB 1890. Steve Hollabaugh is working on power supply. Mary Chapman is working on billing and unbundling issues. Kathy Neus is working on metering issues. Scott Terrell is working on the Public Goods charge policy and on key accounts. This group needs to attend industry meetings outside Truckee and will be meeting together routinely to make sure we keep on track. 9. Natural gas workshop in Palo Alto: I attended a meeting in Palo Alto which had been set up to discuss with NCPA members how Palo Alto might help us get into the natural gas business. The basic message was that there is a perfect match between gas and electricity because the two fuels are interchangeable in many uses. Natural gas competes with electricity, so it makes sense to be involved in both commodities. Palo Alto is available, on a fee basis, to help us secure a gas supply, secure transmission, set up the business side and maintenance crews and whatever else is needed to move into the gas business. 10. Wireless communications antennas policy: I have been working on a draft policy regarding the placement of wireless communications antennas on District water tank property. This matter will come before the Board in a workshop format on June 18. PLH/smc Truckee Donner Public Utility DistrictBoard of Directors Joseph R.Aguera J. Ronald Hemig 00)6Business Office Planning Services Roder.A. Jones (916) 537-3396 (916)537-3944 FAX(916)567-5056 James A. Maass Patricia S. Sutton General Manager Staff Report for May Peter L Holzmeister Support Services,_ Kathy Neus Purchasing and Warehousing 1. Sue attended the Engineering and Operations Conference in Spokane. Through Sue's new contacts she was able to refer Edison Energy Services Inc. to Bob Quinn who will be using them to rebuild the Truckee Donner Substation transformer. 2. After the Board's approval to negotiate with the Auto Dealerships for the purchase of three trucks, Sue was able to obtain the purchase price at the low bids that had come in during the bidding process and a purchase order was issued. 3. Sue also was able to finalize the work order accounting on three large development agreements for the Administration Department. 4. Purchasing and warehousing has been very busy with all the various summer construction projects. Meter Readers 1. Summer is here for the meter readers, the meter change out program has begun for the summer and the annual seal check has also begun. 2. Meter readers go back and forth between being current and a day behind due to seal checks, change outs, illnesses and vacations. There were 9556 meters read, 550 service reports completed and 219 48 hour/1013 disconnects delivered. Building and Grounds Maintenance 1. The asphalt project has been completed and the material from the temporary area has been moved back into the yard. 2. The long hallway has been stripped of all the old paint, primered and a non-skid service has been applied. FEMA should cover the stripping and the non-skid surface was a • budgeted project. Post Office Box 309 m 11570 Donner Pass Road Truckee, California 96160 . 3. Some flood related damage work has begun, the west wall has been tom out, the framing has been sprayed with disinfectant and sealed back up. 4. I am currently waiting for quotes on replacing the roof over the west side of the upstairs area. This is a budgeted project that I hope to have completed by the end of July. Vehicle Maintenance 1. May was a steady month. There were six BIT inspections, three service inspections, four monthly and four annual aerial inspections. 2. The electric foreman's truck, #19 was sent back to the dealer for warranty repairs. Truckee Donner Public Utility District STAFF REPORT TO: Board of➢irectors FROM: Ed Taylor,Water Superintendent SUBJECT: Water Department Monthly Activities Report for May 1997 The water department staff continues to meet each week to review scheduling of activities, training and department standards. The first priority is a training program to update the water department crew's skills and knowledge. A schedule for the next three months is being prepared. After that is complete then a schedule for the rest of 1997 will be prepared. WATER QUALITY: . The routine daily water quality sampling and testing program was completed as required. All of the tests were good and well within drinking water quality standards. Staff is investigating the various filtration systems that will meet the requirement of the State Health Department for the treatment of water from the Donner Creek Well. We have discussed with the State Health Department what systems will meet their requirements and attended a tour and demonstration of a new package filtration plant that meets the requirements. MAINTENANCE, REPAIRS, & NEW CONSTRUCTION: The water main flushing and meter upgrade for the down town area was completed. This work included changing out meters as needed, installing or repairing remote, and performing repairs to meter boxes and piping. The crew changed out an old 10"valve and removed the valve vault, which was in the middle of Spring Street. This work was completed prior to the downtown-paving project. Staff repaired seven water main leaks in the month of May. Twenty-nine new service connections were installed in May. • Two water services were upgraded this month. PUMP OPERATIONS AND MAINTENANCE: Removed, repaired, and reinstalled pump and motor for booster pump 92 at Innsbruck Station. Installed chlorinating system for Southside Well 92. Competed installation of chlorinating system for Donner Creek Well. The demand for this summer season has not yet required the use of this source this year. Staff has started a cleanup project of the tanks, wells and pumping facilities. This project includes vegetation removal, driveway repair, removal of various unused materials, and facilities repairs as needed. Performed scheduled maintenance at system facilities. PLANNING: Building projects: March 89-80 Properties This is a multi-use commercial project that will provide warehouse, retail, and • truck maintenance facilities for the local concrete company. Additionally there will be six mini storage units. Aspen Apartments This is a 32 unit apartment complex being constructed in the Donner Trails Subdivision. Mike worked with the Fire District Staff and the Developer during the pressure/leakage testing for the fire sprinkler system. AutoCAD MAP Mike attended training for our new Cad/GISLMapping software. This training will compliment our ongoing efforts of map conversion from paper to digital format. Town of Truckee Roundabout Staff worked with the Town to design the water system changes to eliminate any conflict with the construction of the Roundabout. Highway 267 Bypass • Staff meet with the Caltrans reprsentative to review and consider the water system conflicts that are in the proposed 267 bypass design. STAFF REPORT June 16,1997 To: Board of Directors From: Bob Quinn, Electric Superintendent Subject: May Activity Report AGENDA ITEM The following projects were undertaken by crews of this department during the month of May: An underground primary extension was completed for the Shaw development, a project on the flats above Glenshire Road near the Cheney property. A budgeted project, re-conductoring of Truckee Circuit#5, was worked on. This is a project that will be on-going for most of this construction season. Several distribution transformers were upgraded to a larger size to accommodate increased loads. Within our Martis substation, approximately 100 insulators on the various switches and structures were changed. This project was necessitated by the failure of the insulators last year during switching operations when our substation operator narrowly missed being injured. While crews were in Martis substation, the station relays located in the control room were tested and calibrated. Again in Martis substation, a fracture in the aluminum buss was repaired while the station was off line. In Tahoe Donner substation, we continued to monitor one of the transformers for the build up of explosive gases. This situation was brought to the Board and a plan of action was approved. At the time of this writing, the transformer will be sent to Los Angeles for repair on the 27th of June. Two reclosers received inspection and maintenance as dictated by their maintenance schedules. The service crew, in addition to assisting in some of the above projects, completed 33 service orders and 113 USA's. In addition to working on customer and District projects, Ron Reynolds attended the NWPPA engineering and operations conference in Spokane. I attended the same conference for one . day to meet with representatives of firms doing substation transformer repair. Steve Noliabaugh's time was spent, for the most part, working with Peter on the power purchase agreement. I hosted a meeting of representatives from the various fire agencies to discuss mandated measures regarding vegetation near lines, poles, and substations. I attended a CMUA meeting regarding a new CPUC general order, G.O.165, which mandates for investor owned utilities a prescribed schedule of maintenance. The public owned utilities are not currently mandated to comply with the new G.O. but the CPUC wants us to show why we should not be included at a future time. Representatives of public utilities were in attendance and are jointly preparing a response to the CPUC. I met with representatives of Edison Energy Services regarding the Tahoe Donner substation transformer. I met with a representative of CalTrans to discuss the moving of our facilities to accommodate the new bypass. Our work will have to be completed next year. • TRUCKEE DONNER PUBLIC UTILITY DISTRICT PLANNING DIRECTOR ACTIVITIES MAY, 1997 Note: Since most of these projects are ongoing, Staff continues to report the basic information and highlights the activities that have occurred during the reporting month. When a project/activity is completed it is reported, then deleted from this report. Strategic Planning/District $Savings Business Customer Key Accounts Program- An analysis is currently being conducted on TDPUD commercial accounts to determine TDPUD's business account's potential revenue loss if we lose a particular/set of account(s). There is still some question as to how much revenue is really at stake since TDPUD will still provide electric system distribution services. Staff is planning to develop and implement some customer seminars in Truckee in conjunction with NCPA and ENRON to educate our customers about this "upcoming" relationship. The seminar plan is on-hold pending the NCPA/ ENRON negotiation. TDPUD Competition Plan- Staff is planning to prepare a report about the different utility issues we are currently being challenged by. The report will include a discussion of the different approaches TDPUD can take to meet these challenges as well as an analysis and recommendations to respond to competition. This comprehensive report is being postponed until the evaluation results of the GSHP pilot, the large Business Customer meetings and other competition related projects and issues are available. Energy/Water Showcase Program- HDR Engineering and the California Energy Commission have completed the energy-efficiency analysis of the TDPUD water system. We may want to wait until we know what our "new" purchased power costs are before we make any decisions on which options may be worth implementing. TDPUD Building GSHP Proposal - A study to determine the cost-effectiveness of installing GSHPs into the TDPUD building for heating and cooling has been completed by the Davis Energy Group. The report indicates that TDPUD can benefit by using GSHP in the building and also act as a community GSHP demonstration project along with the pilot sites. DEG is currently working on design parameters and a refined cost estimate for considering GSHP for the TDPUD building. A GSHP tie-in was installed in the TDPUD yard prior to paving. This allows TDPUD to use the GSHP technology sometime in the future without having to trench through the new paving. Deregulation Education- I will be attending various courses, seminars, workshops and meetings to help me get up to speed with deregulation activities. I attended the Utility Energy Forum "deregulation strategies" meeting in Granlibakken May 7-9. • Conservation/DSM/Economic Development Value-Added Customer Programs & Services- Staff will be having discussions with NCPA and ENRON regarding the types of programs and services ENRON will be able • to offer our customers through TDPUD. Staff may visit the ENRON offices in Houston to talk to their programs and services developers. Since the NCPA/ENRON negotiation has been delayed, Staff will draft a proposal of some possible energy and water services programs we may want to consider implementing during deregulation. Some of these programs will be eligible to meet the State's Public Goods Charge(AB1890). Ground Source Heat Pump Pilot Site Activity- Nine GSHP pilot site units are currently in operation. A tenth site is almost complete in Glenshire. This final pilot site will be completed by this Fall. The next GSHP Bulk Purchase & Installation Group meeting will be held June 3. Staff is receiving excellent proposals from GSHP industry professionals for installing multiple GSHP projects. The goal is to have interested BP & I participants commit in June and begin installations in July. California GSHP Training Grant/Match-funded Activities- The Geothermal Resources Association in Davis(sub-contractor to TDPUD for statewide GSHP contractor training through California Energy Commission grant) has already built a mobile training facility and conducted some contractor training courses to date. GRA is doing an excellent job in implementing the requirements of the grant. GSHP/Water Heater Promotion- The results of the Truckee GSHP pilot monitoring and . evaluation study will be used to determine GSHP's role in TDPUD's Strategic Plan. A proposal has been developed to promote the benefits of high efficiency GSHPs and electric water heating to TDPUD customers. Energy Surveys/High Bill Assistance- Staff completed 0 commercial and 4 residential energy survey(s) this month. Staff also responded on-site to 2 "high" bill complaints. Communications/Public Relations/Education Newsletter- The next newsletter issue will focus on customer feedback(survey), GSHP BP & I Group update, deregulation issue updates and TDPUD water projects, etc. Billboard- Staff has been working with Creative Concepts to design a billboard ad which was placed along the 267 as it enters into Truckee. The billboard shows a few electric linemen working on an electric line and the ad reads, Truckee Donner Public Utility District; Community-Owned; Working for the Future; (916) 587-3896. The billboard was installed May 23. TDPUD New Customer Brochure- Creative Concepts is developing a proposal to revise and update our current TDPUD new customer brochure. The new issue will probably be done later this year when we have a better understanding where we stand with deregulation and our relationship with NCPA and ENRON. • Water Information Piece- Staff is currently working with the marketing team to develop • a TDPUD water information piece that will educate our customers on the value/high quality of TDPUD water and the need to use it wisely. Water conservation information and efforts will be included in this piece. Water conservation practices will benefit the community by lowering water pumping costs, sewage treatment costs and the future infrastructure costs associated with these efforts. Staff will contact TTSA and TSD for their input. This piece is being subsidized by a $5,000 Western grant. Media Plan- A media plan is currently being developed. The plan will describe what will be communicated and through what media. The plan will be designed to educate TDPUD customers about TDPUD and such issues as deregulation, etc. Staff proposes implementing a customer survey first to help formulate the media plan. Customer Feedback- A survey is being designed to get important information from our customers regarding their opinion of TDPUD, services, programs, wants and needs, etc. The Board approved Staff and consultants at the May 7 Board meeting to move forward and draft a customer survey and two focus group sessions to be reviewed by the Board's "communications committee" prior to finalizing. This effort will be subsidized by a $5,000 Western grant. TDPUD Display Ad, etc. Shell- Creative Concepts has designed an ad shell to increase the recognition of TDPUD display ads, etc. to our customers through "framing" the ads • with a distinguishable shell. It is currently being used. Employee Customer Service Training- Staff and A.D. Marketing are working on selecting and/or developing an employee customer service training program. The focus will be on training employees enhanced customer service skills and provide them with the tools to provide TDPUD customers with superior electric and water utility service. Business & Energy Efficiency Partnership- The energy and water efficiency measures have been incorporated into the Chamber building. Staff has developed a Chamber building self-guided tour brochure which is being distributed to all our customers along with the electric bills in June. The brochure is also being handed out at the Chamber building for visitor use. Business and Energy Efficiency Partners have been mailed a handful of copies of the brochure along with a handful of Donor Reference Guides. The Chamber Partnership project is designed to encourage local groups, clubs and individuals to tour the facility. TDPUD Staff is available for guided tours. Staff will be promoting the use of the Chamber facility to TDPUD customers for energy and water information and conservation education this Summer. Truckee Home Building & Energy Show- TDPUD, Sierra Pacific and the Geothermal Resources Association are cosponsors of this event and have included a GSHP section into the Truckee Home Building and Energy Show which took place May 24-25. The 40 Show was well attended. Community/Statewide Involvement • Chamber of Commerce Economic Development Committee- Working with other businesses in reviewing the following activities: the Downtown Specific Plan, Business Questionnaire, Doing Business in Truckee Guide,etc. Staff attended the May 1 meeting. Town of Truckee Air Quality Management Plan Advisory Committee- The Committee is currently evaluating different options for mitigating the PM 2.5/10 problem in Truckee. Duane Hall, Town Planner, is currently drafting a Truckee Air Quality Management Plan based on input from the Air Quality Management Plan Advisory Committee. Committee meetings are on hold until the plan is completed in draft form, probably June, 1997. Staff is hoping that some of these monies will be available to promote the GSHP, clean air, heating and cooling technology. Northern California Power Agency Member Services Task Force- This committee's activities are currently on-hold. California Municipal Utilities Association Energy Services and Marketing Committee- The Committee is working on projects and programs to help CMUA member utilities prepare for deregulation. Through this committee, I have worked with other public utility staff on developing guidelines for the AB1890 Public Goods Charge for publicly- owned utilities. I will be attending a CMUA meeting and workshop on the Public Goods Charge June 5, 6. This State-mandated program will probably result in TDPUD spending • 2.85% of annual revenues from 1998 through 2001 or longer on public goods programs including providing low-income assistance(AB 1600). CEC California Ground Source Heat Pump Collaborative- Staff participates in quarterly meetings of the California Energy Commission's GSHP Collaborative. The Collabora- tive was formed to oversee the development and promotion of the GSHP industry in California. TDPUD hosted the GSHP Collaborative meeting held Thursday, May 22. Staff also hosted a GSHP pilot site tour May 23. This was all done in conjunction with the May 24, 25 Truckee Home Building and Energy Show. Utility Energy Forum Planning Committee- The May 7-9, 1997 UEF meeting was held in Granlibakken. The focus of the UEF meeting was Customer Retention and Growth Strategies in a World of Customer Choices. This was an excellent meeting. A lot of useful information was obtained by Staff to help TDPUD through deregulation. Employee Safety/Training Safety Committee- The TDPUD Safety Committee met May 30. The Safety Committee meetings generally involve discussions about the status of safety items listed in this report as well as recent employee accidents and property damage. Healthy Meals- This continues to be a popular program with employees. The next . "healthy" lunch is June 4. The menu will include: Taco Salad, Jalapeno Cornbread w/Ham & Cheddar and Apricot Citrus Sorbet(see attached recipes and nutritional analyses). Truckee rUtility i Hoard of Directors Joseph R.Aguera J. Ronald Hemig (916) 587-3896 Robert A.,zones FAX (916) 587-1189 James A. Maass Patrce S. Sutton REGULAR MEETING General Manager 7.00 PM, Wednesday, June 18, 1997 Peter L. Hoomeister TDPUD Board Room AGENDA 1. Call to order Z Roll call 3. Public Input - 7:00 PM(or as soon thereafter as possible)This is time set aside for the public to address the Board on any matter not on the agenda. Testimony related to any agendized matter should be addressed at the time that item is considered. ACTION ITEMS 4. Consideration of continuing the emergency action relating to repair of the Tahoe Donner substation transformer 5. Consideration of entering into a wholesale power sales contract contingent on the availability of transmission service and any other action facilitating implementation of the contract WORKSHOP ITEMS 6. Discussion of issues relating to the unbundling of the District's retail electric bill and the potential opening of the District's service area to retail energy competition 7. Discussion of issues relating to a possible policy authorizing and regulating the installation of wireless communications facilities on District property 8. Discussion of the MAPF sponsored initiative to amend the Town of Truckee's land use plan 9. Discussion of monthly staff reports. ADJOURNMENT NOTE: The complete packet of material relating to the agenda is available for review at the PUD office and at the Truckee Library Posted f d mailed as June 13 7 s ut an M. Craig, Deputy District Cier Post Office Box 309 s 11570 Donner Pass Road s Truckee, California 96160