HomeMy WebLinkAbout9 UAMPS Regarding RECS Agenda Item # 9
Publ'lc Utility District i
ACTION
To: Board of Directors
From: Stephen Hollabaugh
Date: May 06, 2009
Subject: Approve Agreement with DAMPS Regarding REC's
1. WHY THIS MATTER IS BEFORE THE BOARD
This item involves the purchase of Renewable Energy Credits (REC's) from Utah
Associated Municipal Power Systems ("UAMPS).
2. HISTORY
The District has a Renewable Portfolio Standard ("RPS") goal of 21% by 2010. This
standard can be met, in part, by purchases of renewable energy resources (REC's).
In 2008, some REC's were purchased monthly for a few months of the year.
3. NEW INFORMATION
UAMPS has REC's for sale to its members from the Pleasant Valley Wind project
located in Uinta County Wyoming. REC's arising from the wind power generation for
delivery to the grid are measured by the amount of one REC for each megawatt hour
(MWh) generated.
The District is interested in 3,000 MHh per month for 2009 or 36,000 MWh for the
calendar year 2009 from UAMPS at forecast market prices. At the UAMPS March 17,
2009 Project Management Committee ("PMC") meeting, the PMC approved selling the
REC's based on splitting the difference between the bid and offer price. The REC's
are priced for the first half and second half of the year. Truckee Donner PUD and
Plumas Sierra were interested in purchasing REC's. The PMC approved the sale of
the Pleasant Valley's REC to Truckee Donner and Plumas Sierra for three years. The
motion passed unanimously.
The price for 2009 ends up being $7.00 per REC for the first half of the year and
$8.00 per REC for the second half of the year.
Plumas Sierra is still deciding on how many REC's to purchase for 2010 and 2011.
This item tonight concerns only the 2009 purchase. 2010 and 2011 will return to the
Board for action when the amount is finalized.
This purchase of wind REC's is a good value to the District and will help the District
meet its RPS goal of 21%.
4. FISCAL IMPACT
The funding source for the REC purchase will be the purchase power budget if
executed.
5. RECOMMENDATION
Approve the UAMPS Renewable Energy Credit Sales Agreement for the purchase of
36,000 REC's for the calendar year 2009.
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Stephen Hollabaugh —Michael D. Holley
Assistant General Manager General Manager
UAA
2825 E.Cottonwood Parkway
Suite 200
Salt Lake City,Utah 84121.7077
Phone:801-566-3938
Toll Free:800-872-5961
Fax:801.561-2687 UAMPS RENEWABLE ENERGY CREDIT
SALES AGREEMENT
Whereas,Utah Associated Municipal Power Systems("DAMPS")receives Renewable
Energy Credits("RECs") arising from the wind power generation for delivery to the grid
of the energy by the Facility described below:
Facility name and Iocaiion: Pleasant Vaiiey(Uinta County, WY)
Fuel Type: Wind
Capacity(MM: 144
Operational Date: December 15,2003
in the amount of one REC for each megawatt hour generated; and Truckee Donner Public
Utility District("Truckee Donner")desires to purchase RECs in the amount of 36,000 per
year for the calendar year 2009 from UAMPS at forecast market price. The Purchase
Price will be included on Truckee Donner's Power Bill from March 2009 until December
2009 according to the following schedule:
January 2009—April 2009: $21,000.00 per month;total of$84,000.00 billed on
April 2009 bill
May 2009—June 2009: $21,000.00 per month
July 2009—December 2009: $24,000.00 per month
Purchase and Sale of Environmental Attributes. UAMPS shall sell to Truckee
Donner, and Truckee Donner shall purchase from UAMPS, all right, title, and interest in
and to all Environmental Attributes with respect to the purchased RECs. UAMPS shall
make the Enviroiunental Attributes available to Truckee Donner to the fullest extent
allowed by Applicable Law immediately upon UAMPS' obtaining the Environmental
Attributes. UAMPS shall not assign, transfer, convey, encumber, sell or otherwise
dispose of all or any portion of such Environmental Attributes to any Person other than
Truckee Donner. UAMPS makes no written or oral representation or warranty, either
express or implied, regarding the current or future existence of any Environmental
Attributes.
Reporting of Ownership of Environmental Attributes. During the Term, UAMPS
shall not report to any Person that the Environmental Attributes belong to anyone other
than Truckee Donner, and Truckee Donner may report under any such program that the
Environmental Attributes purchased hereunder belong to it.
.TRUCKEE DONNER PUBLIC UTILITY DISTRICT
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UTAH AS CIA MUNICIP POWER SYST MS
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