Title
Approval of Northern Rio Arriba Electric Cooperative (NORA) Third Revised Exhibit A and Amendment No.3 to the Operation, Maintenance and Wheeling Agreement Dated August 27,1986
Recommended Action
I move that the Board of Public Utilities approve the NORA Third Revised Exhibit A and Amendment No.3, and forward to Council for their consideration with a recommendation for approval.
Staff Recommendation
Staff recommends approval of NORA Third Revised Exhibit A and Amendment NO.3 to the Operation, Maintenance, and Wheeling Agreement dated August 27,1986 as presented.
Body
In 1986 LAC entered into a 50 year agreement with NORA to provide Wheeling Services for the output from the El Vado Generating Station from the Spills switching station to the Coyote Switching Station in northern New Mexico. In conjunction with wheeling agreements from Jemez and Tri-state, El Vado’s energy has a designated path to serve the County's load. The rate that NORA charges the county, however, is part of an Exhibit and Amendment to the overall contract. The current exhibit expired in July of 2017 and had a ten year duration. LAC's proposal, agreed to by NORA, is the same annual percentage increase negotiated in the previous rate sheet. The result is a 5.09% increase over the next ten year period.
Alternatives
Due to LAC’s ownership of the El Vado Generating Station there is currently no alternative to this agreement. This wheeling agreement is an integral part of utilizing the Generating Station's output.
Fiscal and Staff Impact
The monetary impact is approximately $986,863.48 over the ten year period at the forecasted delivery of 28,091 MWhs per year from the plant.
Attachments
A - Third Revised Exhibit A and Amendment No. 3