The URL can be used to link to this page

Home My WebLink About10 City of Murray Gas Generation Agenda Item # 10 TRUCKEE R Public Utility District ACTION To: Board of Directors From: Stephen Hollabaugh Date: August 04, 2010 Subject: Consideration of a Power Sales Contract with City of Murray for the Landfill Gas Generation 1. WHY THIS MATTER IS BEFORE THE BOARD Board approval is required to enter into a contract or a pooling appendix agreement. A) This item involves a Pooling Appendix with UAMPS and the Murray City, Utah. Murray City sells 70% of the output of Salt Lake Landfill gas generation to Truckee Donner PUD. B) This item involves a Pooling Appendix with UAMPS and the Murray City, Utah. Murray City sells 70% of the output of TransJordan Landfill gas generation to Truckee Donner PUD. 2. HISTORY Renewable Portfolio Standard (Excerpt) - TDPUD • At such time that projected resources do not exceed projected demand, TDPUD will strive to include qualifying resources to meet projected demand. • Truckee Donner PUD resource mix will have a minimum of 21% of renewable resources by 2010. Renewable resources are defined as non-fossil fueled electric generating resources, including hydroelectric. Conservation is considered first resource for all new energy purchases. District forecast assumes that load increases by 1% annually over the next three years. Conservation is expected to account for 1-3% of total load, therefore conservation will offset growth that would otherwise require additional resources. The District forecasted load will be flat and conservation will account for any growth the District may have. The Districts RPS standard is met, in part, by purchases of renewable energy and renewable energy credits. Landfill gas is generated through the degradation of municipal solid waste by microorganisms. Landfill gas is primarily methane along with a number of other elements. Landfill gas is extracted and piped to a main collection header, where it is sent to be treated or flared. If the landfill gas extraction rate is large enough, a gas turbine or internal combustion engine could be used to produce electricity to sell commercially or use on site. Purchasing landfill gas generation helps the District meet its RPS goal with out purchasing unbundled REC's. District staff has been negotiating with Murray City for the purchase of the Salt Lake and Jordon Trans landfill gas generation. Since both Truckee Donner PUD and Murray City are UAMPS members and in the Pool Project, this transaction can be done through a UAMPS Pooling Appendix. 3. NEW INFORMATION UAMPS Planned Pool Appendix Below are the details of the transactions: UAMPS Planned Pool Appendix (Salt Lake Land Fill Gas Generation) • Seller: Murray City • Buyer: Truckee Donner PUD • Resource: Land Fill Gas Generation, (Salt Lake Landfill) including REC's, transferred from Murray City to Truckee Donner PUD as generated • Term: Starting Jan 1, 2011, thru Dec 31, 2016 (6 Years) • Amount: 70% of the output of Salt Lake Landfill Generation, (approximately +2 MW total capacity per hour, 14,000 MWh/year less outages) • Price: Seasonally priced (summer and winter) ranging from $68.30 in winter 201.1 to $77.16 in summer of 2016 Some other provisions are being discussed with Murray City and should be available by the Board meeting. UAMPS Planned Pool Appendix (TransJordan Land Fill Gas Generation) • Seller: Murray City • Buyer: Truckee Donner PUD • Resource: Land Fill Gas Generation (Jordan Trans Landfill) including REC's, transferred from Murray City to Truckee Donner PUD as generated • Term: Starting Jan 1, 2011, thru Dec 31, 2023 (15 Years) • Amount: 70% of the output of Salt Lake Landfill Generation, (approximately +2 MW total capacity per hour, 14,000 MWh/year less outages) • Price: Seasonally priced (summer and winter) ranging from $68.20 in winter 2011 to $102.67 in summer of 2023 Some other provisions are being discussed with Murray City and should be available by the Board meeting. 4. FISCAL IMPACT The UAMPS Pooling Appendixes for the Land fill gas generation will represent a portion of the Electric Supply Procurement budget that might otherwise be purchased from the market. The two Pooling Appendixes represent a little more than 4 MW of capacity. The cost ranges from $68.20/Mwh in 2011 to $102.67/MWh in 2023. This cost includes the associated renewable energy credits (REC's) with the energy and will help the District meet its RPS goal of 21%. 5. RECOMMENDATION A) Approve the UAMPS Pooling Appendix concerning the purchase of Salt Lake Land Fill Gas Generation from Murray City to Truckee Donner PUD for 70% of the output a cost ranging from $68.30/MWh in 2011 to $77.16/MWh in 2016. B) Approve the UAMPS Pooling Appendix concerning the purchase of TransJordan Land Fill Gas Generation from Murray City to Truckee Donner PUD for 70% of the output a cost ranging from $68.20/MWh in 2011 to $102.67/MWh in 2023. Stephen Hollabaugh Michael D. Holley Assistant General Manager General Manager UAMPS PLANNED POOL APPENDIX DRAFT Truckee Donner PUD proposal to Murray City for Land Fill Gas Generation SELLER: Murray City BUYER: Truckee Donner PUD (Truckee) RESOURCE: Land Fill Gas Generation (MWH)(Salt Lake Landfill) including REC's (WECC Green-E Biomass, WREGIS),transferred from Murray City to Truckee Donner PUD as generated(Murray City will transfer the corresponding REC's to Truckee's WREGIS account) TERM: Starting Jan 1, 2011,thru Dec 31, 2016 (Six Years) AMOUNT: 70%of the output of Salt Lake Landfill Generation, (Approximately+2 MW total capacity per hour, 14,000 MWh/Year less outages) PRICE: Seasonal: Winter=October thru March, Summer=April thru September Year Winter Summer 2011 $68.30/MWh $70.53/MWh 2012 $69.50/MWh $71.80/MWh 2013 $70.70/MWh $73.10/MWh 2014 $72.00/MWh $74.42/MWh 2015 $73.30/MWh $75.78/MWh 2016 $74.60/MWh $77.16/MWh The prices above include transmission, scheduling and reserves for delivery from UAMPS system to Truckee Donner PUD's network transmission agreement with NVEnergy as set in the UAMPS budget. OTHER PROVISIONS: Seller will provide Buyer the First Option to Purchase similar amounts of the output at similar prices after 2016 should Murray extend its contract for the landfill gas at these locations. This proposal would have to be approved by TRuckee's Board along with a purchase power agreement or Pooling Appendix as necessary. Call-Back: The seller will have the right to call-back the REC's for this project if a Federal or State(Utah) legislation is passes that would require Murray City to meet some RPS or%Green requirement. Murray City will give Truckee 18 months written notice of the (REC) call-back and will discount the energy to Truckee after the call-back starts by$9.00/MWh. Truckee will continue to receive the energy without the REC's after the call- back. SELLER: BUYER: UAMPS PLANNED POOL APPENDIX DRAFT Truckee Donner PUD proposal to Murray City for Land Fill Gas Generation(Jordan Landfill) SELLER: Murray City BUYER: Truckee Donner PUD RESOURCE: Land Fill Gas Generation (MWH)(Jordan Landfill) including REC's (WECC Green-E Biomass, WREGIS),transferred from Murray City to Truckee Donner PUD as generated. (Murray City will transfer the corresponding REC's to Truckee's WREGIS account) TERM: Starting Jan 1, 2011,thru Dec 31, 2023 (Fifteen Years) AMOUNT: 70%of the output of Jordon Landfill Generation, (Approximately+2 MW total capacity per hour, 14,000 MWh/Year less outages) PRICE: Seasonal: Winter=October thru March, Summer=April thru September Year Winter Summer 2011 $68.20/MWh $72.47/MWh 2012 $68.80/MWh $75.40/MWh 2013 $69.50/MWh $76.89/MWh 2014 $70.20/MWh $78.31/MWh 2015 $70.60/MWh $82.61/MWh 2016 $71.30/MWh $85.95/MWh 2017 $72.40/MWh $88.73/MWh 2018 $74.00/MWh $90.89/MWh 2019 $75.70/MWh $93.10/MWh 2020 $77.50/MWh $95.39/MWh 2021 $79.30/MWh $97.75/MWh 2022 $81.20/MWh $100.17/MWh 2023 $83.10/MWh $102.67/MWh The prices above include transmission, scheduling and reserves for delivery from UAMPS system to Truckee Donner PUD's network transmission agreement with NVEnergy as set in the UAMPS budget. OTHER PROVISIONS: Seller will provide Buyer the First Option to Purchase similar amounts of the output at similar prices after 2023 should Murray extend its contract for the landfill gas at these locations. This proposal would have to be approved by TDPUD's Board along with a purchase power agreement as necessary. Call-Back: The seller will have the right to call-back the REC's for this project if a Federal or State(Utah) legislation is passes that would require Murray City to meet some RPS or%Green requirement. Murray City will give Truckee 18 months written notice of the(REC) call-back and will discount the energy to Truckee after the call-back starts by$9.00/MWh. Truckee will continue to receive the energy without the REC's after the call-back. SELLER: BUYER: