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HomeMy WebLinkAboutRES 2005-08 - Board TRUCKEE DONNER a.. w° Resolution No. 2005 - 08 AUTHORIZING DISTRICT STAFF TO ENTER INTO CONTRACTS FOR POWER SUPPLY AND RELATED SERVICES WHEREAS, the District has entered into contracts with Constellation Power Source (CPS) for the purchase of wholesale power and energy that end December 31, 2007; and WHEREAS,the District has entered into a contract with Western Area Power Administration(WAPA) for the purchase of a small amount of energy supply; and WHEREAS,the District has entered into a contract with Northern California Power Agency(NCPA)for scheduling services; and WHEREAS,the UAMPS IPP3 unit is scheduled to come on line during 2011 and will be a great asset to the District after it is on line WHEREAS, the District will need to secure power for its customers for the period of 2008 through 2011; and WHEREAS, the increasingly volatile power supply market has made it difficult to get dealers to hold prices; WHEREAS, in order to secure the best prices for power supply and related services and to avoid paying a substantial premium, it is in the best interests of the District that the Board authorize staff to pre-qualify interested bidders, seek competitive bids and establish parameters for the purchase of power and related services and delegate to the General Manager and/or the Power Supply Engineer the authority to enter into and execute such agreements on behalf of the District in accordance with the parameters established by the Board and set forth in this Resolution; and NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS THAT: 1. The Board adopts the above recitals as findings. 2. District staff is authorized to prepare and circulate a Request for Proposals for the purpose of identifying entities that are interested in being pre-qualified in terms of credit requirements, financial strength and other conditions as may be determined to be appropriate by staff and submitting competitive bids to provide the District with power supply and/or related services for the period from approximately January 1, 2008 through approximately December 31, 2011. 3. District staff is authorized to pre-qualify entities interested in bidding on the power supply and/or related services contracts for the period from approximately January 1, 2008 through approximately December 31, 2011. 4. District staff is authorized to seek competitive bids for a power supply and/or related services for the period from approximately January 1,2008 through approximately December 31,2011. Resolution 2005-08 5. After pre-qualifying bidders and seeking competitive bids as set forth above, the General Manager and/or the Power Supply Engineer of the District are authorized to enter into and execute power supply and related services contracts, provided such contracts are within the following parameters: a) Contract term shall be for the period approximately beginning January 1, 2008 through approximately December 31, 2011. b) Contract quantities shall be in substantially similar amounts as those that appear on Exhibit A, attached hereto. c) Contract shall include puts, calls or comparable hourly shaping provisions the pricing of which shall be based on prevailing market prices. d) The price for power shall not exceed $56.00 per MWH. d) Contract shall be with a counterparty that is rated at least BBB+, or whose obligations are guaranteed by an entity that is rated at least BBB+, and shall include adequate protection in the event the counterparty, or its guarantor, shall experience a rating downgrade. 6. The authority granted to the General Manager and the Power Supply Engineer pursuant to this Resolution shall expire on August 31, 2006. 7. The General Manager or the Power Supply Engineer shall inform the Board of Directors of any contracts entered into and executed pursuant to this Resolution. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the first day of June, 2005 by the following roll call vote: AYES: Directors Aguera, Hemig, Taylor and Thomason NOES: None ABSTAIN: Director Sutton ABSENT: None TRUCK DON PUBLIC UTI ITY TRICT J. ,3,rofd Hemig, President of the Board ATTEST: N Peter L. Holzmeister, District Clerk Resolution 2005-08 Exhibit "A" TDPUD Projected Block Purchase Load Growth 2% 2% 2% 2% 2% 2% 2% Western Adjustment 0 as of Feb 2005 HLH 2005 2006 2007 2008 2009 2010 2011 Jan 21 21 22 22 23 23 24 Feb 21 21 22 22 23 23 24 Mar 18 18 19 19 19 20 20 Apr 16 16 17 17 17 18 18 May 16 16 17 17 17 18 18 Jun 16 16 17 17 17 18 18 Jul 18 18 19 19 19 20 20 Aug 18 18 19 19 19 20 20 Sep 17 17 18 18 18 19 19 Oct 17 17 18 18 18 19 19 Nov 19 19 20 20 21 21 21 Dec 21 21 22 22 23 23 24 LLH 2005 2006 2007 2008 2009 2010 2011 Jan 17 17 18 18 18 19 19 Feb 17 17 18 18 18 19 19 Mar 15 15 16 16 16 17 17 Apr 13 13 14 14 14 14 15 May 12 12 12 13 13 13 14 Jun 12 12 12 13 13 13 14 Jul 13 13 14 14 14 14 15 Aug 13 13 14 14 14 14 15 Sep 12 12 12 13 13 13 14 Oct 13 13 14 14 14 14 15 Nov 15 15 16 16 16 17 17 Dec 18 18 19 19 19 20 20 Su day HLH 2005 2006 2007 2008 2009 2010 2011 Jan 5 5 5 5 5 6 6 Feb 3 3 3 3 3 3 3 Mar 2 2 2 2 2 2 2 Apr 3 3 3 3 3 3 3 May 4 4 4 4 4 4 5 Jun 5 5 5 5 5 6 6 Jul 5 5 5 5 5 6 6 Aug 5 5 5 5 5 6 6 Sep 5 5 5 5 5 6 6 Oct 5 5 5 5 5 6 6 Nov 4 4 4 4 4 4 5 Dec 3 3 3 3 3 3 3 Resolution 2005-08