HomeMy WebLinkAboutRES 2004-16 - Board TRUCKEE DONNER
Public Utility District J
Resolution No. 2004 - 16
ADOPTING POLICY AUTHORIZING DISTRICT STAFF
TO ENTER INTO CONTRACTS ESTABLISHING THE
PRICE OF POWER
WHEREAS, the District has entered into a contract with Constellation Power Source(CPS)
for the purchase of wholesale power and energy; and
WHEREAS, the District has entered into a contract with Western Area Power
Administration (WAPA) for the purchase of wholesale power and energy; and
WHEREAS, the District has entered into a contract with Northern California Power Agency
(NCPA) for scheduling services; and
WHEREAS, the District can manage its price risk by purchasing financial instruments and
or physical instruments;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS THAT:
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 subject to the following terms and
conditions.
2. In entering into a said contract the following procedures shall be observed-
a) There shall be established a list of pre-approved firms offering financial risk
management services within the electric industry, which list shall be
submitted to the Board of Directors for approval, and may be amended from
time to time.
b) A minimum of two telephone quotes shall be secured from firms on the pre-
approved list, which quotes shall be recorded on the transaction
memorandum which shall be prepared to document the actions leading up to
purchase of the contract.
c) 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.
Resolution 2004-16
d) In no event shall any single contract entered into under authority of this
policy extend for a period of greater than four months.
e) 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.
f) The Power Supply Engineer shall inform the Board of Directors of any
executed transaction by providing a copy of the transaction memorandum as
part of the next monthly staff report.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held
within the District on the fifth day of May, 2004 by the following roll call vote:
AYES: Directors Aguera, Hemig, Maass, Sutton and Van Gundy
NOES: None
ABSTAIN: None
ABSENT: None
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Jame . Maass, President of the Board
ATTEST:
Peter L. Holzmeister, District Clerk
Resolution 2004-16