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Home My WebLink About6 Wholesale Power Supply UrII IIIII ± III Pu Staff Report To: Board of Directors From: Stephen Hollabaugh—Assistant General Manager Date: November 2, 2001 Subject: Wholesale Power Supply: Restructuring the contract with Idacorp Energy: Discussion of Payson Project Participation. Background: As you are aware, our contract with Idacorp starting in 2002 and running through 2009 is priced at $0.072 per kWh. Within this contract is some surplus power. When prices were high, we had planned to sell this surplus but forward prices have fallen to a level that the surplus energy would be projected to sell at a loss or deficit. I have been working with a consultant "McDonald Partners' to help the District develop and negotiate some commodity restructuring strategies. Discussion: Sandra McDonald of McDonald Partners and I will be presenting the Districts existing Price and Resource position along with several restructuring strategies for the Board to discuss. These presentations will assist with evaluating specific restructuring opportunities and/or proposals related to our existing contract. Once the Board understands our resource position, we will also discuss the value of the UAMPS Payson Generation Project to the District. Recommendation: a) Discuss the presentation of restructuring the contract with Idacorp Energy, possible action. b) I recommend that the Board direct staff to discontinue the Districts participation in the DAMPS Payson Project. 0 Page 1 DO NQ' W-n-� Restruct ure Whole Estimate*** Bong ..th -e C� ac Sale t Power Cost TDPUD whole Sale Estimate*** Year Residential Power Cost TDPUD whole Sale Estimate*** 2001 mills ceR Rates RatesResidential Power Cost TDPUD Estimate*** Estimate*** 2002 804 * Residential PG&E 2003 71.09 Cents t<wh Rates RUST Sierra Pacific 93.38 10.55 ** dential Reside Sierra P 2004 12 86 71.09 6.04 * Cents/Kwh Rates ntial Pacific 2005 91.64 10 55 ** 8.04 Cents Kw Rates ada Residential 90.58 12.76 77 5� 66 gg 14 61 h Nev Rates 2006 10,62 10.13 ** Cents/Kwh Calit. 2007 89.43 12.74 10.75 67.97 Cents Kwh 12.71 71 29 10.32 14.70 10.53 2008 88.21 10,81 67.52 15 42 8.20 12.67 71.44 67,08 10.35 15.24 11.28 2009 86.91 71.90 10.91 10.39 15.39 15.78 85.52 12.63 11.04 67.06 11.62 2010 12 59 71 23 67 42 10.47 15.54 15.93 2011 43.42 71.79 11.06 10.59 14.30 16.08 11,73 44.37 8.47 1121 68.09 1626 11'85 2013 44,90 8.67 6666 10.79 69.10 7095 4.48 12.40 11.99 201 45.04 6.82 10,99 69.89 4 2.31 12.64 1127 4 8.94 68'46 11.17 70.33 11.12 12.53 10.39 2015 44.98 68.21 11.26 12.75 12.90 2016 45.17 9,04 1125 70.27 13.15 10.61 9.17 R 0 69,99 11.36 12.28 10.83 2017 45.78 6825 11.37 11.43 72.47 13,38 46.84 9 56 68.92 11.48 69 45 11.48 12.65 13.59 11.03 11.66 69.16 13,80 11.20 Retail 70,03 69,21 11.57 12 58 11.37 Rates as of 11.88 11,69 12.78 14.00 Actual cost in 200NWi er 200j 69.89 14 22 11,54 2 will be 11.87 13.03 11.71 rYPical TDPUD gusto 9.oad cents/kwh, the 13.32 1445 mer Load difference 14.72 11.91 nce will be Paid from the Rate 12.14 Stabilization fund. Restructure Alternatives_SSM 11/7/2001 E. The facts and evidence presented establish that there is a reasonable relationship between the need for the described public facilities and the impacts of the types of development described in paragraph three below, for which the corresponding fee is charged and there is a reasonable relationship between the fee's use and the type of development for which the fee is charged, as these reasonable relationships or nexus are in more detail described in the Water System Master Plan referred to above. F. In compliance with the California Environmental Quality Act,following a properly noticed public hearing held at a regularly scheduled meeting of the Board of Directors,the Board did adopt a Negative Declaration for the adoption of the Water System Master Plan Update and water facilities and connection fees.A Notice of Determination was filed with both the Nevada and Placer County Clerks in March of 2001. G. The cost estimates set forth in the 2001 Water Master Plan Update are reasonable cost estimates for constructing these facilities and the fees expected to be generated by new development will not exceed the total of these costs. Regarding Connection Fees: A. The purpose of connection fees is to reimburse the District for the actual administrative, material and labor costs(excluding service lateral) of connecting to the water system. B. A review of the water connection fees has revealed an increase in costs over the past several years. C. In compliance with the California Environmental Quality Act,following a properly noticed public hearing held at a regularly scheduled meeting of the Board of Directors,the Board did adopt a Negative Declaration for the adoption of the Water System Master Plan Update and water facilities and connection fees.A Notice of Determination was filed with both the Nevada and Placer County Clerks in March of 2001. NOW,THEREFORE, BE IT ORDAINED that the Board of Directors of the Truckee Donner Public Utility District does hereby enact the following: 1. "New development" shall mean construction of residential improvements, construction of commercial, industrial or other non-residential improvements, or the addition of floor space to existing improvements which involve the issuance of a permit for construction or reconstruction. 2. A water facilities fee shall be charged upon application for water service and shall be paid prior to provision of water service by new development in the water service area depicted and described on the Master Plan map. The District Water Planner shall determine if the development lies within this area,the type of development and the corresponding fee to be charged in accordance with this ordinance. 3. Use of Facilities Fees-The fee shall be solely used to pay (1)for all costs associated with the described public facilities to be constructed by the District, (2)for reimbursing the District for the development's fair share of those capital improvements already constructed by the District, or(3)to reimburse other developers who have constructed public facilities described in the 1995 - 2015 Water System Master Plan, where those facilities were beyond that needed to mitigate the impacts of the other developers' project or projects. 4. Residential Facilities Fee—Water facilities fees shall be according to a charge per square foot of living space for the area to be constructed.The facilities fees shall be$1.56 times the square feet of living space as determined by the Building Permit. 5. Commercial Facilities Fee—Water facilities fees shall be charged according to the following schedule: METER SIZE EDU FACILITIES (inches) FEE 5/8 x 3/4 1 $ 3,086 3/4 1.5 4,629 1 2.5 7,715 1 'Y2 5 15,430 2 8 24,688 3 15 46,290 4 25 77,150 6 50 154,300 6. Connection fees are charged to reimburse the District for the actual administrative, material and labor costs of connecting to the water system (excluding the service lateral). C " 7. Connection fees shall be charged according to the following schedule: E ; METER SIZE CONNECTION (inches) FEE 5/8 x 3/4 $ 990 3/4 1,020 1 Actual cost 1 Yz Actual cost 2 Actual cost 3 Actual cost 4 Actual cost 6 Actual cost 8. Fee review-On or about March of each following year, the Districts staff shall review the estimated cost of the described capital improvements,the continued need for those improvements and the reasonable relationship between such need and the impacts of the various types of development pending or anticipated and for which these fees are charged. The staff shall report its findings to the Board of Directors at a noticed public hearing and recommend any adjustment to this fee or other action as may be needed. 9. If no protest is made pursuant to Public Utilities Code Section 16078,then this ordinance shall be effective thirty(30)days after the date it was adopted by the Board of Directors. 10. The Clerk of the District shall immediately cause a copy of this ordinance to be published in a newspaper of general circulation and posted in three places within the District. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the 7N day of March 2001 by the following roll call vote: AYES: Aguera, Hemig, Van Gundy and Maass. NOES: Sutton. ABSENT: None. TRUCKEE DONNER PUBLIC UTILITY DISTRICT BY ons a PU Y — Jame . Maass, President ATTEST p4t'.-A Peter L. Holzmeis r, Clerk of the Board