HomeMy WebLinkAbout7 Pleasand Valley Wind Generation Agenda Item # 7
TRUCKEE DONNER
ACTION
To: Board of Directors
From: Stephen Hollabaugh
Date: March 29, 2011
Subject: Discussion of 27.5 kW Transfer of Pleasant Valley Wind Generation
1. WHY THIS MATTER IS BEFORE THE BOARD
This item is concerns the assignment and assumption of 27.5 kW of Pleasant Valley
wind generation from Parowan City Utah to Truckee Donner PUD.
2. HISTORY
Truckee Donner PUD is in the Master Firm Power Project of DAMPS. The Pleasant
Valley Wind generation is part of this project contracted to UAMPS by PPM Enemy.
Truckee Donner PUD currently has a 200kW entitlement share of the Pleasant Valley
Wind generation.
3. NEW INFORMATION
An Assignment and Assumption Agreement for the purpose of acknowledging the
terms and conditions of an agreement between Parowan City (Parowan), Truckee
Donner Public Utility District (Truckee Donner), Logan City (Logan) and Utah
Associated Municipal Power Systems (DAMPS) has been drafted. The key points of
this agreement are outlined below:
Parowan has informed UAMPS of its intent to withdraw from the Master Firm Power
Supply Project effective June 1, 2011.
Parowan must liquidate all of its Transaction Schedules associated with the Project
prior to its withdrawal.
Logan and Truckee Donner will assume Parowan's entitlement share equally as to its
PPM Transaction Schedule in the Master Firm Power Supply Project. Parowan
requests to liquidate its interest in its PPM Transaction Schedule effective May 1,
2011.
This generation is comprised of 55 kW of wind generation of a purchase power
agreement at a cost of about $52 per MWh. This generation will be divided equally
between Logan and Truckee Donner, 27.5 kW each.
UAMPS will prepare a PPM Transaction Schedule for Logan's and Truckee Donner's
execution effective May 1.1 2011.
This generation will add to Truckee Donner's renewable energy mix within its overall
electric portfolio.
4. FISCAL IMPACT
The funding source for this generation will come from the purchase power budget if
executed.
5. RECOMMENDATION
Authorize the Board President to sign the Assignment and Assumption Agreement
and execute the PPM Transaction Schedule to the UAMPS Master Firm Power Supply
Agreement for an additional 27.5 kW of Pleasant Valley wind to Truckee Donner PUD
prior to May 1, 2011.
........... .................
Stephen Hollabaugh Michael D. Holley
Assistant General Manager General Manager
ASSIGNMENT AND ASSUMPTION AGREEMENT
This Assignment and Assumption Agreement(the"Agreement")is for the
purpose of acknowledging the terms and conditions of an agreement between Parowan
City("Parowan"),Logan City("Logan'),Truckee Donner Public Utility District
(Truckee Donner")and Utah Associated Municipal Power Systems("UAMPS").
WHEREAS,Parowan has informed UAMPS of its desire to withdraw from the
Master Firm Power Supply Project("Project")effective June 1,2011;
WHEREAS,Parowan must liquidate all of its Transaction Schedules associated
with the Project prior to its withdrawal;
WHEREAS,Logan and Truckee Donner will assume Parowan's entitlement share
equally as to its PPM Transaction Schedule in the Master Firm Power Supply Project;
and
WHEREAS,UAMPS will prepare a PPM Transaction Schedule for Logan's and
Truckee Donner's execution effective May 1,2011.
NOW THEREFORE,BE IT RESOLVED,Parowan,Logan,Truckee Donner and
UAMPS agree and acknowledge the following:
1. Parowan acknowledges and agrees to transfer its entitlement share of its
PPM Transaction Schedule in the Master Firm Power Supply Agreement
equally to Logan and Truckee Donner as of May 1,2011.
2. Parowan acknowledges that it has obtained its City Council's approval of
the transfer of its entitlement share of the PPM Transaction Schedule to
Logan and Truckee Donner.
3. UAMPS acknowledges that it has obtained approval for the transfer of
Parowan's entitlement share of the PPM Transaction Schedule to Logan
and Truckee Donner.
4. Logan and Truckee Donner acknowledge and agree that they will execute
a revised PPM Transaction Schedule to the Master Firm Power Supply
Agreement for an additional 27.5 kW of Pleasant Valley wind prior to
May 1,2011.
THIS AGREEMENT is effective upon Parowan's, Logan's,Truckee Donner's
and UAMPS' execution.
UTAH ASSOCIATED MUNICIPAL PAROWAN CITY
POWER SYSTEMS
By: By:
Title: Title:
Date: Date:
LOGAN CITY TRUCKEE DONNER PUBLIC
UTILITY DISTRICT
By: By:
Title: Title:
Date: Date: