HomeMy WebLinkAbout10 Salt Lake Landfill Gas Generation Agenda Item- -# 10
# .
UCKEE
Public Utility District
ACTION
To: Board of Directors
From: Stephen Hollabaugh
Date: September 15, 2010
Subject: Discussion and Possible Action Regarding a Pooling Appendix with
City of Murray for the Salt Lake 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.
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.
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 Trans-Jordon 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.
An action item concerning a Pooling Appendix with Murray City and a possible
purchase of landfill gas generation was presented on August 4, 2010. The Board
approved the Trans-Jordan landfill gas pooling appendix with possible modifications
concerning written notice timing, contract term, and UAMPS billing.
3. NEW INFORMATION
Truckee Donner PUD and Murray City were able to agree on outstanding terms of the
Trans-Jordan Land Fill Gas Generation Pooling Appendix which was signed by the
Board President.
• Seller: Murray City
• Buyer: Truckee Donner PUD
• Resource: Trans-Jordan Land Fill Gas Generation (MWH) 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 (13 Years)
• Amount: 70% of the output (70% of up to 4.5 MW of total nameplate capacity)
of Trans-Jordan Landfill Generation, (Approximately +2 MW total capacity per
hour, 14,000 MWh/Year less outages or curtailments)
• Price: Seasonally priced (summer and winter) ranging from $63.70 in winter
2011 to $98.17in summer of 2023
• Other Provisions: written notice for call back of the REC's remained 18
months, discount after call-back was increased to $10.00/MWh, Truckee
Donner PUD will pay the transmission charges, price decreased $4.50
representing the transmission price.
The Salt Lake Landfill Gas Generation needs to be discussed with the Board due to
new information concerning:
• Failure of SB 722 (Senate Bill 722, increasing RPS to 33% by 2020)
• Market energy prices
Renewable energy prices
• % renewables within the district portfolio
Length of the Salt Lake landfill gas generation
4. FISCAL IMPACT
The UAMPS Pooling Appendixes for the Salt Lake land fill gas generation will
represent a portion of the Electric Supply Procurement budget that might otherwise be
purchased from the market. The Pooling Appendix represent a about 2 MW of
capacity. The cost ranges from $63.80/Mwh in 2011 to $72.66/MWh in 2016. This cost
includes the associated renewable energy credits (REC's).
5. RECOMMENDATION
Continue the evaluation of the UAMPS Pooling Appendix concerning the purchase of
Salt Lake Land Fill Gas Generation from Murray City to Truckee Donner PUD.
Stephen Hollabaugh Michael D. Holley
Assistant General Manager General Manager
UAMPS PLANNED POOL APPENDIX DRAFT Sept 9,v.1 draft
Truckee Donner PUD proposal to Murray City for Salt take Land Fill Gas Generation
SELLER: Murray City
BUYER: Truckee Donner PUD(Truckee)
RESOURCE: Salt Lake Land Fill Gas Generation(MWH)(SaIt Lake'a""'W 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 or curtailments)
PRICE: Seasonal: Winter=October thru March,Summer=April thru September
Year Winter Summer
2011 $63.806840/MWh $66.03-7 : /MWh
2012 $65.0069-5A/MWh $67.30;Ll-.$A/MWh
2013 $66.207849/MWh $68.607-3-. 8/MWh
2014 $67.50-7 A /MWh $69.92-74.4 /MWh
2015 $68.80;L 3. /MWh $71.28-7&.�/MWh
2016 $70.1044.40/MWh $72.664-7-. 6/MWh
Truckee-Donner PUD will be responsible for all Transmission,scheduling and reserve rates f - Formatted:Indent:Left: 1"
(TS&R)for delivery from UAMPS system to Truckee Donner PUD's network transmission
agreement with NVEnergy as set in the UAMPS budget The~~i^es abeve inelude^ YYe^+
budget CUFFe,ntly tine T-S&R Rates arze t,`A AOG F MWh I IAMPS'b,illi.,e,we"ir. pice the TC!?.D
the Sales PFie.e t e.f the T-S&R Date
an�cT�-rcc�Tcccrcrr��va�rr�crcc
OTHER PROVISIONS:
Seller will grant Buyer PF9Vide-wyeF the First Option to Purchase similar amounts of the output on a similar
scale index at^i^ni'aF P.i after 2016 shoulder Murray extend its contract for the landfill gas at these
locations and(2)Murray,in its sole discretion,determines that it wishes to continue to resell the power. This
proposal would have to be approved by TJRruckee's Board along with a purchase power agreement or Pooling
Appendix as necessary.
Call-Back: The Sseller will have the right to call-back the REC's-for this project if a Federal or State(Utah)
legislation is passed that would require Murray City to meet some RIPS or%Green requirement..
%GFeen
Fit. Murray City will give Truckee 4-&1832 months written notice of the REC*rK4 call-back and will
discount the energy to Truckee after the call-back starts by$105.00/MWh. Truckee will continue to receive the
energy without the REC's after the call-back: -
SELLER: BUYER:
Jeff Bender
Murray City Truckee Donner PUD,Board President
TRUCKEE IIIII � DONNER
Public Utility District
Memorandum
To: Directors
From: Barbara Cahill
Date: September 15, 2010
RE: Pool Appendices for the Land Fill Gas Generation
10. DISCUSSION AND POSSIBLE ACTION REGARDING A
POOLING APPENDIX WITH CITY OF MURRAY FOR THE
SALT LAKE LAND FILL GAS GENERATION
Please find attached:
• Signed Planned Pool Appendix for the Trans-Jordan Land Fill
Gas Generation
• Draft Planned Pool Appendix for the Salt Lake Land Fill Gas
Generation
Thank-you
UAMPS PLANNED POOL APPENDIXX
co
Truckee Donner PUD proposal to Murray City for Trans-Jordan Land Fill Gas Genera "
SELLER: Murray City
BUYER: Truckee Donner PUD
RESOURCE: Trans-Jordan Land Fill Gas Generation (MWH) 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 (Thirteen Years)
AMOUNT: 70% of the output (70% of up to 4.5 MW of total nameplate capacity) of Trans-Jordan
Landfill Generation, (Approximately +2 MW total capacity per hour, 14,000 MWh/Year
less outages or curtailments)
PRICE: Seasonal: Winter=October thru March, summer=April thru September
Year Winter Summer
2011 $63.70/MWh $67.97/MWh
2012 $64.30/MWh $70.90/MWh
2013 $65.00/MWh $72.39/MWh
2014 $65.70/MWh $73.81/MWh
2015 $66.10/MWh $78.11/MWh
2016 $66.80/MWh $81.45/MWh
2017 $67.90/MWh $84.23/MWh
2018 $69.50/MWh $86.39/MWh
2019 $71.20/MWh $88.60/MWh
2020 $73.00/MWh $90.89/MWh
2021 $74.80/MWh $93.25/MWh
2022 $76.70/MWh $95.67/MWh
2023 $78.60/MWh $98.17/MWh
Truckee-Donner PUD will be responsible for all Transmission, scheduling and reserve
rates (TS&R) 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 grant Buyer the First Option to Purchase similar amounts of the output on a similar scale index
after 2023 should (1) Murray extend its contract for the landfill gas at these locations, (2) Murray, in its
sole discretion, determines that it wishes to continue to resell the power. If the plant increases to 6.0
MW nameplate during the timeframe of this pool appendix, seller will provide buyer with first option to
purchase similar amounts of the output at similar prices, if that is the seller's intent. 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 passed 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 $10.00/MWh. Truckee will continue to receive the energy without
the REC's after the call-back.
SELLER: BUYER:
Jeff Bender
Murray City Truckee Donner PUD, Board President
UAMPS PLANNED POOL APPENDIX DRAFT
Truckee Donner PUD proposal to Murray City for Salt lake Land Fill Gas Generation
SELLER: Murray City
BUYER: Truckee Donner PUD (Truckee)
RESOURCE: Salt Lake Land Fill Gas Generation (MWH) 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 or curtailments)
PRICE: Seasonal: Winter=October thru March,Summer=April thru September
Year Winter Summer
2011 $63.80/MWh $66.03/MWh
2012 $65.00/MWh $67.30/MWh
2013 $66.20/MWh $68.60/MWh
2014 $67.50/MWh $69.92/MWh
2015 $68.80/MWh $71.28/MWh
2016 $70.10/MWh $72.66/MWh
Truckee-Donner PUD will be responsible for all Transmission, scheduling and
reserve rates (TS&R) 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 grant Buyer the First Option to Purchase similar amounts of the output on a similar scale
index after 2016 should (1) Murray extend its contract for the landfill gas at these locations and (2)
Murray, in its sole discretion, determines that it wishes to continue to resell the power. This proposal
would have to be approved by Truckee's Board along with a purchase power agreement or Pooling
Appendix as necessary.
1
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 passed 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$10.00/MWh. Truckee will continue to receive the energy without
the REC's after the call-back
SELLER: BUYER:
Jeff Bender
Murray City Truckee Donner PUD, Board President
2