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 Council approve the NORA Third Revised Exhibit A and Amendment No.3 to the Operation, Maintenance and Wheeling Agreement Dated August 27, 1986.
Utilities Manager Recommendation
The Utilities Manager recommends that Council approve the motion as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities recommends that Council approve the motion 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 Mountains Electric Cooperative and Tri-state Generation and Transmission Association, Inc., 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, or roughly one half percent per year.
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 in total 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