Title
Resolution - Approval of 2018 Power Supply Plan - I Sterzing
Other Info
Submitted By: Ingmar Sterzing
Department: Power Supply and Energy Services
Financial Impact and Cost/Benefit Considerations:
Based on the anticipated Member energy usage and sales as established by the 2018 planning process, PEC estimates the total wholesale purchase power requirement for 2018 to be 6,410 GWh and the associated planned total Cost of Power (including energy, ancillary services, fees, and PEC power supply costs) to be $290.0 Million. The Cost of Power will be recovered from Members through the Power Cost Recovery tariff and other rates as defined in the Tariff and Business Rules.
Discussion
The Power Supply Plan defines how PEC is going to fulfill the member's aggregated electric energy requirements and meet the power portfolio objective to cost-effectively manage PEC's power supply and energy requirements and provide a low cost, stable power and energy rate. The purchase and sale of electricity is required to satisfy PEC's obligations to its members and to manage PEC's electric energy requirements. These activities require significant cost expenditure and expose PEC to cost fluctuations inherent with power suppliers or directly with fuel and power markets. PEC charges Members as defined in the Tariff and Business Rules to recover the Cooperative's actual cost of power purchased for the membership and other costs incurred in connection with the development and management of the Cooperative's power supply.
Body
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF PEDERNALES ELECTRIC COOPERATIVE, INC. that the Cooperative authorizes the Chief Executive Officer, or designee, to deliver such notices as maybe required by any wholesale power agreement, and to negotiate, execute, and deliver such agreements, notices, confirmations or certificates necessary or appropriate to acquire electric capacity, energy or other products related thereto as discussed by ...
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