REPORT TO COUNCIL
SUBJECT
Title
Action on a Letter of Agreement 19-SNR-02196 with Western Area Power Administration for Compensation to Silicon Valley Power for the Financial Impact Incurred During the Curtailment Period on July 27, 2018 due to the Carr Fire
Report
BACKGROUND
On October 24, 2000, Council approved the Western Area Power Administration (WAPA) Base Resource Contract 00-SNR-00352 (dated December 14, 2000), to allow Silicon Valley Power (SVP) to purchase a percentage of WAPA Base Resource power (which includes energy, capacity, ancillary services reserves, and environmental attributes), under the 2004 Power Marketing Plan. WAPA is a non-profit agency of the United States Department of Energy. The City purchases hydroelectric Base Resource power from WAPA, which is generated at federally owned facilities that are part of the Central Valley Project and Washoe Project. The rate for the power generated from the facilities is based on SVP's fixed entitlement percentage of the Base Resource revenue requirement and the actual output of the facilities within the operating year.
DISCUSSION
The Carr Fire in Northern California severely impacted WAPA's transmission infrastructure and WAPA's ability to provide Base Resource power to its customers beginning on July 27, 2018.
On July 27, 2018, due to the Carr Fire's impact on transmission lines, WAPA needed to selectively curtail resource delivery to customers. Northern California Power Agency (NCPA) is a joint powers agency, of which SVP is a member. NCPA is SVP's scheduling coordinator for wholly owned generation and joint power facilities that operate within the Load Following Metered Sub-System (a geographically contiguous system that has been operating as an electric utility within the ISO balancing authority. The metered subsystem balances its own loads and resources within its territory).
WAPA contacted NCPA with a request to curtail all NCPA members' share of Base Resource power. With the approv...
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