HomeMy WebLinkAboutRES 2003-17 - Board TRUCKEE DONNER
Resolution No. 2003- 17
Amending District policy regarding the purchase of wholesale power
WHEREAS the District has entered into a contract with Constellation Power Source, Inc for the
purchase of wholesale power to be redistributed to District customers; and
WHEREAS the contract with Constellation is for the District to purchase various blocks of power;
and
WHEREAS to allow the purchase of power under said contract to match District load various
small amounts of power need to be sold and/or purchased by the District on the market each
day; and
WHEREAS the board wishes to establish a policy authorizing District staff to perform that
function and to provide procedures for staff to follow;
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors as follows:
The Chapter 3.06 of the District Code of Policies is amended to read
CHAPTER 3.06
PURCHASED POWER
Sections: 3.06.010 Contracts Regarding the Purchase of Wholesale Power
3.06.010 The District has entered into a contract with Constellation Power Source, Inc.that includes
a monthly shaped block purchase designed to meet the Districts average projected load for each
month and for a put/call portion. The monthly shaped block purchase is at a fixed price, while the
put/call option is based on an index.The purchase of power and energy on an index places a price
risk on the District which can be managed by purchasing financial instruments and or physical
instruments.
3.06.010.1 The Power Supply Engineer of the District, in consultation with staff of Northern
California Power Agency and with the approval of the District General Manager, is authorized to
execute financial and or physical contracts which manage the price risk of the power and energy
purchased from the market subject to the following terms and conditions.
3.06.010.1(A)A minimum of two telephone quotes shall be secured from the market. Such quotes
shall be recorded on the transaction memorandum which shall be prepared to document the actions
leading up to purchase of the contract.
3.06.010.1(B) The Power Supply Engineer shall consult with the appropriate staff of the Northern
California Power Agency regarding the desirability to seek quotes and shall again so consult after
receipt of the two quotes. These consultations shall be documented in the transaction
memorandum.
3.06.010.1(C)In no event shall any single contract entered into under authority of this policy extend
for a period of greater than three months.
3.06.010.1(D) Prior to executing the contract, the Power Supply Engineer shall submit his
recommendation to the General Manager of the District. After securing approval from the General
Manager, the Power Supply Engineer is authorized to execute the contract.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the
District on the sixteenth day of April, 2003 by the following roll call vote:
AYES: Directors Aguera, Hemig and Maass
NOES: None
ABSENT: Directors Sutton and Van Gundy
TRUCKEE DON R PUBLIC U LITY DISTRICT
J."migv, President
ATT ST:
Peter L. Holzmeister, District Clerk