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HomeMy WebLinkAboutORD 1981-07 - Board ORDINANCE NO. 81t�2;` OF THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT ESTABLISHING POLICY FOR PURCHASE OF POWER AND ENERGY FROM SMALL POWER PRODUCERS AND COGENERATORS IN COMPLIANCE -r WITH THE PUBLIC UTILITY REGULATORY PRACTICES ACT OF 1978 WHEREAS it is the desire of the Board of Directors of the Truckee Donner Public Utility District to comply with the Public Utility Regulatory Practices Act (PURPA) of 1978 with respect to the purchase of power and energy from small power producers and cogenerators; BE IT ENACTED by the Board of Directors of the Truckee Donner Public Utility District as follows: 1. The District will purchase at its "avoided costs" power and energy from qualifying facilities in accordance with Sections. 201 and 210 of PURPA. The District will also sell power and energy to the qualifying facility as it may require. The District will sell the qualifying facility its needs over and above its generating capabilities or, at the qualifying facility's option, will purchase 100% of its generation output and sell to the qualifying facility 100% of its needs. 2. The District will base "avoided costs" on that portion of its whole- sale power cost which, by virtue of the purchase from the qualifying facility, it now avoids. 3. Energy cost avoidance will equal the wholesale cost of energy on a one-for-one basis. 4. Firm capacity, cost avoidance will equal the wholesale cost of firm cap- acity on a one-for-one basis for all capacity the qualifying facility can provide on an equally firm basis as the District's wholesale power supplier. Non-firm or intermittent capacity will not qualify for payment. 5. Power and energy sales to the qualifying facility sha.11 be made at standard rates. 6. PTJRPA provides that other Districts shall not subsidize the qualify- ing facility. Thus, all costs including engineering, construction, material and related expenses are to be paid by the small power producers and cogenera- tors. 7. The District is to held harmless from all acts or omissions on the part of the qualifying facility. The qualifying facility will be required to carry adequate insurance and will be 'required to reimburse the District for its additional insurance preir,.i-wiis which may be caused by the connection of the qual- ifying facility. 8. The PURPA regulations also mandate that service to Other Districts ' the qualifying shall not be degraded because of the presencelf or connection ong facility. The qualifying facility L. shal2l, cons-,[_-ruct, operate an(I maintain its f acilities or cause thoii to be constr.ucted, operated and mainIC-ained, in a man- ner conforming to all existing safety codes, regulations and best operating practices. Failure to comply shall be cause for disconnection of the qualify- ing facility. 9. Future costs or system improvements which may become necessary by reason of the continued connection of additional qualifying faci 1.i t 4 _Ues to the District facility shall be shared by all qualifying facilities that contribute to -the need for the improvement to the District's facilities. The sharing of costs shall be prorated on a capacity basis at the time the cost is ]Lncurred. 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