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HomeMy WebLinkAbout10 Pleasant Valley Wind Generation Agenda Item # 10 TRUCKEE R Public District ACTION To: Board of Directors From: Stephen Hollabaugh Date: May 06, 2009 Subject: Approve an Agreement for Assignment and Assumption of 200 kw Transfer of Pleasant Valley Wind Generation 1. WHY THIS MATTER IS BEFORE THE BOARD This item involves the assignment and assumption of approximately 200 kw of wind generation from Hildale City Utah to Truckee Donner PUD. 2. HISTORY This topic and information was reviewed in a workshop on March 18, 2009. 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. An Assignment and Assumption Agreement needs to be executed for the purpose of acknowledging the terms and conditions between Hildale City, Truckee Donner Public Utility District (Truckee Donner) and Utah Associated Municipal Power Systems (UAMPS). Hildale City 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 by June 30, 2009. Hildale must liquidate all of its positions in the UAMPS projects prior to its withdrawal. 3. NEW INFORMATION The Assignment and Assumption Agreement acknowledging the terms and conditions between Hildale City, Truckee Donner Public Utility District (Truckee Donner) and Utah Associated Municipal Power Systems (UAMPS) has been approved by the Hildale City Council and the Board of Directors of UAMPS. The agreement will be forwarded to the Board as soon as it is available. Truckee Donner PUD 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 Approve and authorize the Board President to sign the Assignment and Assumption Agreement between Hildale City, Truckee Donner Public Utility District (Truckee Donner) and Utah Associated Municipal Power Systems (DAMPS) for approximately 200 kw of wind generation. Stephen Hollabaugh Michael D. Holley Assistant General Manager General Manager