HomeMy WebLinkAbout1997-021-02/18/1997-AUTHORIZING THE ELECTRIC UTILITY SUBMIT A LETTER OF REQUEST TO PLATTE RIVER POWER AUTHORITY FOR WIND RESOLUTION 97-21
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE ELECTRIC UTILITY TO SUBMIT A LETTER OF REQUEST
TO PLATTE RIVER POWER AUTHORITY FOR WIND GENERATED ELECTRICITY
WHEREAS,the Council of the City of Fort Collins has expressed, in various ways, a strong
interest in the protection of environmental resources and is committed to a strong environmental
value system; and
WHEREAS,the City's Electric Utility and Platte River Power Authority(hereinafter referred
to as "PRPA") are similarly committed to the support of environmental values; and
WHEREAS, in pursuance of these environmental values, the Electric Board and the staffs
of PRPA and the City's Electric Utility have cooperatively developed a wind energy option for the
electric customers of the City's Electric Utility whereby such customers may purchase electricity
generated by wind from the Electric Utility at an additional cost of two-cents (20)per kilowatt hour;
and
WHEREAS, the response to the wind energy option has been encouraging with
approximately six hundred forty (640) customers having heretofore requested wind generated
electricity; and
WHEREAS, the City, as a part of the establishment of PRPA, has committed itself to
purchase all of its electricity requirements from PRPA; and
WHEREAS, because of the encouraging response to the wind energy option, the Electric
Utility has determined that it is in the best interest of the Electric Utility ratepayers that the Electric
Utility submit a letter of request to PRPA for wind generated electricity according to the provisions
of Tariff Schedule 7: Wind Generated Pilot Rate as established by PRPA.
NOW, THEREFORE,BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS,that the Electric Utility is authorized to submit a Letter of Commitment to PRPA, a copy
of which is attached hereto as Exhibit"A",for wind generated electricity according to the provisions
of proposed Tariff Schedule 7: Wind Generated Pilot Rate, a copy of which Tariff is attached hereto
as Exhibit"B", conditioned upon the adoption of said tariff by the PRPA Board of Directors, and
subject to reasonable tariff modifications that may be made by said Board of Directors from time to
time.
Passed and adopted at a regular meeting of the City Council held this 18th day.:of eb ary,
A.D. 1997. `M.
Mayor
TTEST:
City Clerk
EXHIBIT A
February—, 1997
Thaine J. Michie,
General Manager
Platte River Power Authority
2000 East Horsetooth Road
Fort Collins, CO 80525
Re: Request Letter and Letter of Commitment
for Wind Generated Power Supply
Dear Mr. Michie:
The City of Fort Collins has initiated a"Wind Power Pilot Program,"under which citizens
will be able to obtain wind-generated electrical energy. To date, citizen interest has been sufficient
for Fort Collins to determine that it should ask Platte River to undertake to obtain adequate wind-
generated power to support this program.
As you know, Platte River Power Authority is the sole supplier of electricity to the City of
Fort Collins and its residents pursuant to an AMENDED CONTRACT FOR THE SUPPLY OF
ELECTRIC POWER AND ENERGY,dated March 31, 1980. Under the AMENDED CONTRACT,
the City is committed:
". . . to take and pay for all power and energy that is generated, purchased or
otherwise obtained by Platte River, and is furnished to Fort Collins for resale . . .."
The AMENDED CONTRACT and this "take and pay" commitment runs through the year 2020.
In accordance with the AMENDED CONTRACT, Platte River's Board of Directors will be asked
to approve TARIFF—SCHEDULE 7: WIND ENERGY PILOT RATE.
The purpose of this letter is to formally request, pursuant to proposed
TARIFF—SCHEDULE 7,that Platte River obtain an adequate supply of wind-generated power to
furnish to Fort Collins for resale to such residents as apply to take wind power under the City's
"Wind Power Pilot Program." Fort Collins recognizes that Platte River must make a 20-year
contract commitment in order to secure a source of wind-generated power and that the rate for that
power will be higher than the base rate for power to the Municipalities. Fort Collins understands
that a 20-year contract will be obtained with a responsible and reputable supplier and,in light of this,
Fort Collins unconditionally commits to take and pay for any and all wind energy produced and
delivered under the 20-year contract as part of the power and energy delivered to Fort Collins under
the AMENDED CONTRACT. This commitment is made by the City of Fort Collins without regard
to the level of ongoing retail customer subscriptions for wind power by residents of the City; the
level of such subscriptions from time to time and at any time shall have no bearing whatsoever on
this commitment.
The maximum quantity of Wind Energy that Fort Collins is requesting be obtained by Platte
River shall be limited to no more than the output of three (3) wind turbines with a nameplate rating
(at rated wind speed) of no more than 750 kW each. The specific amount of Wind Energy to be
purchased by and delivered to Fort Collins shall be mutually agreed to by Platte River and the City
at the time of final contract negotiations with the Wind Energy supplier. It is further understood and
agreed to by the City and Platte River that the amount of Wind Energy produced by the wind
turbines will vary from year to year and from time to time. Platte River is not obligated to provide
any specific amount of Wind Energy in any given time period; rather, Platte River only commits to
deliver the actual output of the wind turbines less any transmission or other losses.
If the foregoing is acceptable to Platte River Power Authority,please so indicate in the space
provided below and return one original to Fort Collins for its records.
Sincerely,
FORT COLLINS LIGHT AND POWER UTILITY
ATTEST:
Rich Shannon, General Manager City Attorney
PLATTE RIVER POWER AUTHORITY
ACCEPTED this day of 51997.
A T T E S T
Thaine J. Michie, General Manager Corporate Counsel
EXHIBIT B
PLATTE RIVER POWER AUTHORITY
Schedule 7: Wind Energy Pilot Rate
Page 1 of 3
DRAFT
Updated February 5, 1997
TARIFF—SCHEDULE 7: WIND ENERGY PILOT RATE
Applicability
This TARIFF SCHEDULE 7 shall apply as a Premium Charge for supplies of energy generated from
wind-driven turbines, if requested by a Participating Municipality as set forth below. The Premium
Charge shall be added to the charges for firm energy (demand and energy charges) established by
TARIFF SCHEDULE 1 (Firm Resale Power Service)and shall apply to all Wind Energy requested
and delivered to a Participating Municipality by Platte River Power Authority (Platte River).
Availability
In order to receive service under this TARIFF, a Participating Municipality must submit a formal Letter of
Commitment requesting that Platte River acquire Wind Energy from a reputable Wind Energy Supplier for
delivery to the Participating Municipality, and requesting service under the terms and conditions of this
TARIFF and the AMENDED CONTRACT FOR SUPPLY OF ELECTRIC POWER AND ENERGY. This
Request Letter shall specify the quantity and duration of the wind requirement. The specific form of the
agreement between Platte River and the Wind Energy Supplier(Wind Energy Supply Agreement) shall be
determined by Platte River.
Wind Energy Premium
The monthly Wind Energy Premium Charge (added charge) for all Wind Energy delivered to the
Participating Municipality shall be calculated as follows:
(Wind Energy Price) - (Capacity Price Credit) - (Tariff 1 Energy Charge)
Current value for Wind Energy Premium Charge: $0.0194 per kilowatt-hour
Wind Energy
Wind Energy shall be the sum of the monthly wind-generated energy metered at the point of delivery
to the transmission system interconnected with the wind generation site as identified by Platte River.
Metering and interconnection shall be as described in the Wind Energy Supply Agreement.
The maximum quantity of Wind Energy furnished by Platte River under this pilot TARIFF shall be
limited initially to no more than that produced by three (3)wind turbines with nameplate rating (at
rated wind speed) of 750 kW(2,250 kW total).
PLATTE RIVER POWER AUTHORITY
Schedule 7: Wind Energy Pilot Rate
Page 2 of 3
Wind Energy(Continued)
The actual quantity of Wind Energy purchased shall be mutually agreed upon by Platte River and
the Participating Municipality requesting service under this TARIFF.
Wind Energy Price
The Wind Energy Price shall be the price for Wind Energy set forth in the Wind Energy Supply
Agreement between Platte River and the Wind Energy Supplier, adjusted(increased)to account for
losses between the metering point at the wind generation site and the points of delivery to the
Participating Municipality.
Capacity Price Credit
During the first three years of the pilot program, Wind Energy shall be assumed to provide firming
capacity at 25% of rated output of the wind energy generation units of the Wind Energy Supplier
(i.e., wind will initially be given a 25% Wind Capacity Credit). Additional capacity required to
provide firm energy during the remainder of the time will be provided from other sources available
to Platte River. After three years, performance of the wind resource shall be reviewed and the
Capacity Price Credit may be adjusted in the discretion of the Platte River Board of Directors.
The Capacity Price Credit (per kilowatt-hour) shall be based on the Demand Charge indicated in
TARIFF SCHEDULE 1 (Firm Resale Power Service),the Wind Capacity Credit,and the Coincident
Load Factor for the customer class receiving wind energy from the Participating Municipality, as
follows:
(Demand Charge)x(Wind Capaci , Credit)
(Coincident Load Factor)x( 730 hours per month)
Coincident Load Factor
Coincident Load Factor shall be that representative of the customer class receiving Wind Energy.
During the first three years of the pilot program, the Coincident Load Factor shall be assumed as
71.5%(all calendar months). After three years,the load profile characteristics of the customer class
receiving wind energy will be reviewed and the Coincident Load Factor may be adjusted in the
discretion of the Platte River Board of Directors.
Tariff 1 Energy Charge
The Tariff 1 Energy Charge shall be the energy charge as set forth in TARIFF SCHEDULE 1 (Firm
Resale Power Service).