HomeMy WebLinkAbout2014-044-06/03/2014-APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF FORT COLLINS AND PLATTE RIVER POWER AUT RESOLUTION 2014-044
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN
THE CITY OF FORT COLLINS AND PLATTE RIVER POWER AUTHORITY,
FOR PARTICIPATION IN A JOINT RESOURCE PLANNING CASE STUDY
WHEREAS, Platte River Power Authority ("PRPA") was formed by contract among the
City of Fort Collins, the Town of Estes Park, the City of Longmont, and the City of Loveland to
provide electric generation and transmission services and other related functions to benefit the
founding municipalities, pursuant to C.R.S. Section 29-1-204; and
WHEREAS, as one of the founding municipalities, Fort Collins operates an electric
distribution system providing retail utility service to customers within the City's municipal
boundaries and service territory; and
WHEREAS, on April 1, 2014, City Council adopted Resolution 2014-028, establishing
specific climate action objectives for City operations, to be memorialized in an updated Climate
Action Plan by December 31, 2014; and
WHEREAS, the updated City Climate Action Plan describes the steps necessary for the
Fort Collins community to achieve a community-wide greenhouse gas emission reduction goal of
20% (relative to 2005 levels) by the year 2020, and 80% reduction by the year 2030; and
WHEREAS, the updated City Climate Action Plan also describes the steps necessary for
the Fort Collins community to achieve carbon neutrality (a 100% reduction in greenhouse gas
emissions, relative to 2005 levels, by the year 2050); and
WHEREAS, PRPA is currently developing an Integrated Resource Plan ("IRP") to
analyze available generating resources with the goal of reducing PRPA's system-wide
greenhouse gas emissions by 20% below 2005 levels by 2020, and below 80% by 2050; and
WHEREAS, the IRP development will include detailed modeling for a set of resource
scenarios through 2034, which scenarios duplicate a portion of the studies needed by the City to
update its Climate Action Plan; and
WHEREAS, PRPA is willing to expand the IRP modeling and analysis to include
specific resources to support the City's more aggressive climate action planning efforts; and
WHEREAS, PRPA is willing to retain a third party consultant and to coordinate the
resource planning study for the benefit of PRPA and the City, provided PRPA is reimbursed for
that portion of the study costs directly attributable to the additional research requested by the
City; and
WHEREAS, there are economies of scale in conducting a single comprehensive system
resource study to identify the portfolio of resources and associated costs needed for PRPA and
the City to coordinate planning for regional greenhouse gas reduction by 2050; and
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WHEREAS, Article II, Section 16 of the City Charter of the City empowers the City
Council, by ordinance or resolution, to enter into contracts with other governmental bodies to
furnish governmental services and make charges for such services or enter into cooperative or
joint activities with other governmental bodies.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS that the Mayor is hereby authorized to execute an Intergovernmental
Agreement for the Funding and Coordinating of a Joint Resource Study between PRPA and the
City in substantially the form attached hereto as Exhibit "A", with such additional terms and
conditions as the City Manager, in consultation with the City Attorney, determines to be
necessary and appropriate to protect the interests of the City or effectuate the purpose of this
Resolution.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 3rd
day of June, A.D. 2014.
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City Clerk
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EXHIBIT A
INTERGOVERNMENTAL AGREEMENT FOR THE FUNDING AND COORDINATION
OF A JOINT RESOURCE PLANNING CASE ANALYSIS
This agreement is made and entered on the day of . 2014, by and between Platte
River Power Authority, a Colorado political subdivision (Platte River), and the City of Fort
Collins, a municipal corporation (Fort Collins).
RECITALS
WHEREAS, Platte River was formed by contract among four Municipalities, including
Fort Collins, pursuant to C.R.S. § 29-1-204 to provide electric generation and transmission
services and other related functions of benefit to the Municipalities. Platte River provides
wholesale power and transmission service to the Municipalities through power supply
agreements, the terms of which run through December 31, 2050;and
WHEREAS, Fort Collins operates an electric distribution system providing retail utility
service to customers within its municipal boundaries and service territory;and
WHEREAS, as outlined in its 2014 Strategic Plan, Platte River is conducting an analysis
of alternatives for decreasing system level greenhouse gas (GHG) emissions including an
identification of the associated cost implications using Colorado's Climate Action Plan as a
guide (20% below 2005 levels by 2020 and 80% below 2005 levels by 2050). A more detailed
analysis will be conducted for the 2020 target. Alternatives will be presented to the Platte River
Board of Directors for their consideration as part of Platte River's 2014 Integrated Resource Plan
(IRP); and
WHEREAS, Platte River has selected and installed electric system modeling software
(EPIS/Aurora) and has retained consultants to assist in the analysis associated with its 2014 IRP;
analytical work using the new model began in April, 2014. It is anticipated that preliminary
modeling results concerning the scenarios associated with achieving 20% GHG reduction
(relative to 2005 levels) by the year 2020 will be available by September 2014;and
WHEREAS, consultants selected will assist in developing modeling
assumptions/forecasts for fuel prices, electric market prices, operating costs for generation
technologies, development and installation costs for proposed generation resources, saturation
and potential for conservation and distributed generation programs, and future carbon charges;
and
WHEREAS, through resolution 2014-028, Fort Collins' City Council has directed that a
proposed updated Climate Action Plan (CAP) be developed that describes the steps the Fort
Collins community must undertake to achieve a community-wide greenhouse gas emissions
reduction goal of 20% (relative to 2005 levels) by the year 2020, 80% (relative to 2005 levels) by
the year 2030 and to achieve carbon neutrality (a 100% reduction in greenhouse gas emissions
relative to 2005 levels) by the year 2050; and
WHEREAS, Fort Collins' community-wide greenhouse gas emission reduction study
will include all sectors, including natural gas, transportation, solid waste generation and
electricity supply (currently the largest source, accounting for just over 50% of community GHG
emissions according to the City's accounting procedures). Preliminary analyses conducted by
Fort Collins suggest that to achieve the 80% reduction by 2030 across all sectors, a 100%
reduction in GHG associated with electrical production will be required; and
WHEREAS,Fort Collins has requested that Platte River provide assistance in developing
electric resource planning case analysis for the City using the same models and consultants that
Platte River has retained for developing its 2014 IRP; and
WHEREAS, for its IRP, Platte River plans to conduct detailed modeling for a set of
resource scenarios that includes reduced surplus sales, expanded energy efficiency and demand
side management programs, increased renewable resources (wind and solar), natural gas
combined cycle generation and distributed generation. The period for the detailed
modeling/analysis of these resources will be 20 years (2015 to 2034). These resource options
were chosen for this analysis because these options are sufficiently developed to allow reliable
modeling, are capable of implementation within the timeframe to be studied, and are readily
capable of providing GHG emission reductions within the time frame of the detailed analysis.
Additional, less detailed analysis will be performed to consider options for GHG reductions to
2050 as part of the IRP effort;and
WHEREAS, more aggressive penetration levels for the options studied by Platte River
and new resource options will be required to meet an 80% reduction by 2030 desired by Fort
Collins, requiring additional 'modeling/analysis. Nevertheless, there is significant common
ground for joint modeling and other analysis that will provide information regarding resource
options and associated costs to inform planning activities of both organizations. A collaborative
approach would also provide for economies of scale in the analysis efforts;and
Intergovernmental Agreement for the Funding and Coordination of a Joint Resource Planning Case Analysis
Page 2 of 7
WHEREAS, Platte River is willing to expand the modeling/analysis effort outlined in its
Strategic Plan (and IRP process) for the benefit of Fort Collins, provided it is reimbursed for the
proportion of study costs attributable to Fort Collins' request.
AGREEMENT
1) Platte River agrees to perform modeling and analysis for a specific set of resource
scenarios to support Fort Collins' Climate Action Plan. These scenarios are
defined as follows:
a. Higher penetrations of energy efficiency and demand side management;
b. Non-carbon emitting base load generation;
c. Higher saturation of wind and solar generation (and associated
integration resources);
d. Electric storage technologies;
e. Higher penetration of distributed generation resources.
2) All modeling will be performed at the system level, with all municipal loads,
surplus sales and resources combined.
3) All modeling for capacity expansion and production cost analysis will be
completed using the EPIS AURORAxmp strategic planning tool - installed and
operating on Platte River's computer network. Financial analysis (cost and rate
impacts) will be developed using Platte River's rate and financial models.
4) The modeling/analysis will use input assumptions provided by consultants
contracted by Platte River, ,including (but not limited to) fuel prices, electric
market prices, operating costs and performance metrics for generation
technologies, development and installation costs for proposed generation
resources, saturation and potential for conservation and distributed generation
programs,and future carbon charges.
5) Prior to the modeling/analysis efforts for Fort Collins, Fort Collins and Platte
River staff will hold a joint information review session regarding input
assumptions developed and delivered by Platte River's consultants for the
specific set of resource scenarios outlined in item 1 above.
6) Results provided to Fort Collins will include the following metrics for resource
scenarios:
Intergovernmental Agreement for the Funding and Coordination of a joint Resource Planning Case Analysis
Page 3 of 7
a. GHG reduction potential relative to 2005 levels;
b. Annual wholesale rate changes (%) for years 2015-2034 - with and
without a carbon charge.
c. Municipal 'cost changes ($) for years 2015-2034 - with and without a
carbon charge.
7) Platte River will work with Fort Collins to provide output data from the
EPIS/AURORA and rate and financial models in a format that meets Fort
Collins' analysis and presentation needs. Analysis requirements will be
coordinated with the Climate Action Plan update process led by City staff and
consultants. The goal is to have all work that supports Fort Collins' CAP
completed and presented to the Fort Collins City Council by end of January 2015.
Presentation of results for the Fort Collins CAP to City Council and other city
stakeholders will be the responsibility of Fort Collins staff.
8) Fort Collins agrees to reimburse Platte River for a proportional share of the
reasonable costs of services provided in the joint resource planning case analysis.
An estimate of the costs is contained in Exhibit A; however, Fort Collins
acknowledges that the actual costs may vary from this estimate. Platte River will
bill Fort Collins monthly according to the consultants' compensation schedules
to cover the additional scenarios identified in item 1 above. Payment will be due
thirty days after receipt of the billing.
9) Platte River, after consultation with Fort Collins, may terminate the joint resource
planning case analysis pursuant to the terms of its agreement with its
consultants. In the event that the joint resource planning case analysis is
terminated prior to completion, Fort Collins will be billed for the work
completed, but in no event more than the amounts set forth in Exhibit A unless
otherwise authorized by Fort Collins, and Fort Collins agrees to pay the amounts
billed for authorized and received work product. All work products and any
intellectual property related to this joint resource planning case analysis shall be
provided to, and shall be the joint property of Platte River and Fort Collins. In
the event of termination, Platte River will have no further obligations under this
Agreement.
tntergovermnental Agreement for the Funding and Coordination of a Joint Resource Planning Case Analysis
Page 4 of 7
10) This Agreement is the entire agreement between Platte River and Fort Collins
concerning the joint resource planning case analysis and shall be modified only
by written instrument approved by the governing bodies of Platte River and Fort
Collins.
11) All of Fort Collins' financial obligations under this agreement are contingent
upon appropriation, budgeting, and availability of specific funds to discharge
those obligations. Nothing in this Agreement constitutes a debt, a direct or
indirect multiple fiscal year financial obligation, or a pledge of Fort Collins'
credit. Fort Collins represents that funds sufficient to cover all obligations
contained herein have been appropriated and are presently available.
12) Platte River agrees to manage, and require its consultants to carry out, the joint
resource planning case analysis in accordance with all applicable legal
requirements.
13) Representatives of Platte River and Fort Collins will meet on a regular basis to
discuss and resolve any issues associated with implementation of the modeling
analysis. These meetings will include a senior manager from each entity; subject
matter experts from each of the parties will attend as appropriate.
14) Prior to commencement of any modeling/analysis, a project charter will be
developed to clarify operating procedures for the joint effort, including project
scope, schedule, assumptions, constraints, success criteria, project participants
and sponsors, and the manner in which authorization of model runs and
associated costs will be memorialized - provided such procedures do not vary
the terms of this IGA.
IN WITNESS WHEREOF, the Parties have caused this Agreement, to be executed the
day and year first above written.
PLATTE RIVER POWER AUTHORITY ATTEST:
By: By:
General Manager Secretary
Intergovermnental Agreement for the Funding and Coordination of a Joint Resource Planning Case Analysis
Page 5 of 7
CITY OF FORT COLLINS, COLORADO ATTEST:
Bv: By:
Mayor City Clerk
APPROVED AS TO FORM
1
By:
City Attorney
Intergovernmental Agreement for the Funding and Coordination of a Joint Resource Planning Case Analysis
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EXHIBIT A
The additional cost for consulting assistance to meet Fort Collins' specific needs for the Climate
Action Plan analysis is estimated as$75,000.
Intergovernmental Agreement for the Funding and Ccx rdination of a Joint Resource Planning Case Analysis
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