HomeMy WebLinkAbout#16 Renewable Energy Trans-Jordan Landfill AGENDA ITEM #16
Public Utility District m
MEETING DATE: August 7, 2024
TO: Board of Directors
FROM: Jared Carpenter, Electric Utility Director
SUBJECT: Consideration of Approval for a Contract with Murray City, Utah for
Renewable Energy from the Trans-Jordan Landfill Gas Generation
Site.
APPROVED BY:
Brian C. Wright, General Manager
RECOMMENDATION:
Authorize the General Manager to Execute a Contract with Murray City for Renewable
Energy Beginning January 1, 2025, thru December 31, 2027.
BACKGROUND:
In 2010, Murray City, Utah added a power generator to their Trans-Jordan waste
facility, which has been in operation since 1958. The generator's fuel is the captured
methane gas from the landfill, thereby classifying the energy source as a renewable
energy power source. It can outsource almost 5 megawatts (MW) of power, which could
power nearly 4,000 homes. Since 2010, TDPUD has purchased about 70% of the
energy output from the facility through a purchased power contract with Murray City.
This contract ends on December 31, 2024. TDPUD and Murray City wish to continue
the partnership, but under a new contract suitable for both agencies.
ANALYSIS AND BODY:
Since 2010, power contract procurement has greatly changed, as have the classified
sources of energy from generators. Today, energy contracts are sold in hourly blocks
classified as HLH (7:00 to 22:00), and LLH (23:00 to 6:00). There are additional energy
products sold from generators besides energy, including resource adequacy, voltage
balance, renewable energy credits, and more. Since 2010, Murray City has accepted a
percentage of the power from the Trans-Jordan facility, while selling a percentage to
the District under contracted pricing. Starting in 2025, Murray City plans to accept more
power from the facility, reducing the availability of power to be sold to the District and
other agencies. Murray City and the District have worked together to create a proposed
contract for three different energy products, including the Heavy Load Hours (HLH) at a
cost of $80 per MWH, Light Load Hours (LLH) at a cost of $65 per MWH, and
Renewable Energy Credits (RECs) at a cost of $7 per MWH, starting January 1, 2025,
and ending December 31, 2027.
Page 1 of 2
Page 57 of 87
Murray City and the District are each members of the joint powers agency Utah
Associated Municipal Power Systems (UAMPS). UAMPS will perform the power
scheduling of the applicable balancing authorities for the generation and REC seller
(Murray City) and the energy and REC buyer (TDPUD), and settle the monthly financial
transactions for each agency.
The Integrated Resources Plan (IRP) completed by TDPUD in 2024 shows that various
energy sources will be needed to comply with the state's renewable portfolio standard
rules, and maintain stable rates for customers. This contract, capable of delivering
renewable energy anytime of the day, well matches TDPUD's energy portfolio, but
others will be needed, as explained in the IRP.
GOALS AND OBJECTIVES:
District Code 1 .05.020 Objectives:
6. Manage the District in an effective, efficient and fiscally responsible manner.
District Code 1 .05.030 Goals:
1. Manage for Financial Stability and Resiliency
FISCAL IMPACT:
This new unbundled contract is difficult to compare to the previous years, because
there are three different products instead of one, and the quantity of energy produced
depends on the amount of fuel, operating conditions, how much Murray City chooses to
keep for itself, and other factors. However, for comparison, in 2023 the 12-month
average was $89 per MWH, and we forecast this new contact to be at or below that
same amount.
ATTACHMENTS:
1. Truckee-Donner PUD proposal to Murray City for Trans-Jordan Landfill Gas
Generation
Page 2 of 2
Page 58 of 87
UAMPS PLANNED POOL APPENDIX
Truckee-Donner PUD proposal to Murray City for Trans-Jordan Landfill Gas Generation
SELLER: Murray City
BUYER: Truckee-Donner PUD (TDPUD)
RESOURCE: Trans-Jordan Landfill Gas Generation (MWH) including Energy Credits
(REC) (WECC Green E-Biomass, WREGIS), transferred from Murray
City to TDPUD as generated. (Murray City will transfer the
corresponding REC's to TDPUD's WREGIS account.)
TERM: Starting January 1, 2025, thru December 31, 2027 (Three Years).
AMOUNT: A minimum of 0.045 MW of the output (approximately 1% of the 4.5 MW
of total nameplate capacity) of Trans-Jordan Landfill Generation.
PRICE: Seasonal: High Load Hours (HLH): October thru March
Low Load Hours (LLH): April thru September
HLH: $80.00 per MWH
LLH: $65.00 per MWH
REC: $7.00 per MWH (RECs independent of landfill gas
generation may also be sold)
TDPUD will be responsible for all transmission, scheduling and reserve
rates (TS&R) for delivery from UAMPS system to TDPUD'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 pricing scale index after 2027 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
resell the power. This proposal would have to be approved by TDPUD's Board along
with a purchase power agreement as necessary.
Call-Back: Seller shall have the right to call-back the REC's and/or actual power output
for any or no reason.
Transmission and other associated costs with the sale of the landfill gas power shall be
born by Buyer.
[Signature Page to Follow]
Page 59 of 87
SELLER: BUYER:
By: By:
Its: Its:
UAMPS APPROVAL
By:
Its:
Page 60 of 87