HomeMy WebLinkAbout11 UAMPS Agenda Item # I I
Public Utility District
ACTION
To: Board of Directors
From: Stephen Hollabaugh
Date: August 04, 2010
Subject: Consideration of a UAMPS "Lock-In" Planned Pool Appendix for the
Purchase of a Market Purchase Starting April 1,2012 to March 31,
2017
1. WHY THIS MATTER IS BEFORE THE BOARD
Board approval is required to enter into this contract or pooling appendix agreement.
2. HISTORY
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 District's future power supply portfolio is intended to balance:
• Conservation
• Renewable Resources
• Resource Diversity
• Contract Duration
• Cost
• Price Volatility
The District has an existing Pooling Appendix for the Shaped Capacity and Energy
(SCE) contract that ends March 2012.
Pursuant to the discussion during the Pool Project meeting held at the Utah
Associated Municipal Power Systems (UAMPS) offices on July 21, 2010, UAMPS has
provided a Lock-In Pooling Appendix for a five year firm product beginning April 2012.
This product would replace the SCE and IPP Pooling Appendices which terminate
March 31, 2012. UAMPS has requested member agencies to indicate the amount of
power they desire for UAMPS to secure for them.
3. NEW INFORMATION
Pursuant to the discussion during the Pool Project meeting held at the UAMPS offices
on July 21, 2010, UAMPS has provided a Lock-In Pooling Appendix for a five year firm
product beginning April 2012. UAMPS has requested member agencies to indicate
the amount of power they desire by August 13th. If UAMPS is able to procure a
market resource for $56.00 per MWh or less then the member would be obligated to
sign the corresponding confirmation to the Lock-In Planned Pool Appendix. A market
resource product consists of unidentified sources of power from the supplying
company that is part of their portfolio delivered to a location. This product resource
mix may change during the life of the contract but will still meet the firm energy
requirements of the contract.
District staff has analyzed our purchased power portfolio and recommends that the
District request the following in the Lock-In Planned Pool Appendix:
• Seller: UAMPS
• Buyer:Truckee Donner PUD
• Resource: To be determined (Unidentified Market Purchase)
• Term: April 1, 2012 to March 31, 2017
• Amount 4.0 MW Flat Summer Season; 11.0 MW Flat Winter Season (Seller will
round down to the nearest whole megawatt based on the total of all Pool
Participants' lock-in appendices received by August 13, 2010)
• Price $56 per MWh, or lower, at Mona and/or Gonder
• Other Provisions: Buyer agrees that if UAMPS locks in a power supply product
meeting the above outlined criteria, they will execute a revised Appendix to
purchase firm capacity and energy.
• Buyer further acknowledges and agrees if UAMPS is unable to lock in a power
supply product meeting the above outlined criteria by August 20, 2010 at 12:00
pm this Lock-In Appendix terminates.
4. FISCAL IMPACT
The UAMPS Lock-In Pooling Appendixes for a market purchase represents a portion
of the Electric Supply Procurement budget. The Pooling Appendixes represent a 4
MW of summer and 11 MW of winter capacity and energy. The term of this Appendix
starts April 1, 2012 through March 31, 2017. The price will be $56/MWh or lower at
Mona or Gonder delivery points. District staff believes that this energy product will
stabilize the price of energy to our customers over this time period.
5. RECOMMENDATION
Approve the UAMPS Lock-In Planned Pool Appendix for the purchase of 4 MW
summer and 11 MW winter of firm capacity and energy not to exceed the price of
$56/MWh from April 1, 2012 thru March 31, 2017.
Stephen Hollabaugh Michael D. Holley
Assistant General Manager General Manager
LOCK-IN
PLANNED POOL APPENDIX
This Appendix to the UAMPS Power Pooling Agreement to which all Parties to this Appendix are
signatories provide for the following transactions. The parties to this Appendix agree to the following
provisions and agree to pay all costs of this transaction through the UAMPS Pool.
SELLER: UAMPS
BUYER: Truckee Donner PUD
RESOURCE: To be Determined
TERM: April 1, 2012 to March 31, 2017
AMOUNT: 4.0 MW FLAT Summer Season
11.0 MW FLAT Winter Season (Seller will round down to the nearest whole
megawatt based on the total of all Pool Participants' lock-in appendices received
by August 13, 2010.)
PRICE: $56.00 per MWh or lower at Mona and/or Gonder(Any Gonder delivery may have
an additional transmission cost above the lock-in price; worst case tariff plus
losses.)
OTHER
PROVISIONS: Buyer agrees that if UAMPS locks in a power supply product meeting the above outlined
criteria, they will execute a revised Appendix to purchase the firm capacity and energy.
Buyer further acknowledges and agrees that if UAMPS is unable to lock in a power supply product meeting
the above outlined criteria by August 20, 2010 at 12:00 p.m. this lock in appendix terminates.
This Appendix may be signed in counterpart.
Dated this day of , 2010.
SELLER: BUYER: