MISSOURI JOINT MUNICIPAL ELECTRIC UTILITY COMMISSION
MoPEP1 POOL MINUTES
June 8, 2006
12:30 PM
Peachtree Catering Center, Columbia MO
MINUTES
The Missouri Public Energy Pool #1 Pool Committee of the Missouri Joint Municipal Electric Utility Commission (the "Pool Committee"), met at Peachtree Catering Center in Columbia, Missouri on June 8, 2006, at 12:30 P.M., and the following members were present as indicated:
Chair Dennis Klusmeyer presided over the meeting.
Steve SvecChillicothe
Ron SheppardFarmington
Clyde BessFredericktown
Mark WallaceHermann
Lee BarkerHigginsville
Jim RoachJackson
Lynn CaltonLamar
Ray IvyLaPlata
Vern KincheloeMacon
Paul JensenMarshall
Mike AhlandMemphis
Bill ElliottMonroe City
Wade SandersOdessa
Linda GastOwensville
Dan WatkinsRolla
Dennis KlusmeyerShelbina
Chad DavisTrenton
Jerry TildenUnionville
Guests attending:
Jim UrferHigginsville
Chuck Reed, Don SchuetteJackson
Staff attending: Duncan Kincheloe, John Grotzinger, JD Lester, Eve Lissik, Michael Loethen, and Peggy King.
A quorum was present and the meeting was called to order.
APPROVAL OF MINUTES
Bill Elliott moved and Lynn Calton seconded a motion to approve the minutes of the March 15, 2006 pool meeting. Duncan opened discussion by indicating that because of uncertainty about a quorum present at that meeting, action taken to accept Higginsville as a member of the pool should be ratified. Dan moved and Bill Elliott seconded a motion to ratify and restate that Higginsville has been accepted by the MoPEP Pool as a member of the pool. Motion passed. As there was no further discussion, a vote was called on approval of the minutes of the March meeting. Motion passed.
STAFF REPORTS
John reported that he has entered into a capacity sale this year to KCP&L that should earn about $140,000 to be earmarked for reserves.
A billing workshop similar to one held for pool members several years ago will be held on July 13 in Columbia. Further information will be sent in July, but please reserve the date for this informative session.
Prairie State Status Report
The projected in-service date of the Prairie State Energy Campus is now 2011. There have been some cost increases due to delays, and EPC contract in development. The air permit is still under administrative appeal. Columbia is asking for a 50 MW share of the project, so before MJMEUC requests 50 additional MWs, Duncan would like all participants to review their share and be sure it is final. Also, there may be other parties that now want to participate in the project.
Nebraska City 2 Status Report
Projected in-service date is May of 2009. The project is proceeding very well to maintain a low cost of power.
Iatan 2 Status Report
The agreements for the Iatan 2 project were signed with KCP&L today. During the next 60 days, work will begin on bond ratings, leading up to the selling of bonds.
Laddonia Co-Gen Status Report
The substation is under construction with an estimated Fall operation date. The contracts are in place with the ethanol plant.
Plum Point Supply Option
John reported that there is an opportunity for the pool to enter into a power purchase agreement for the Plum Point Project. That plant is slated to be in operation in the summer of 2010 and would require a request for AECI transmission. John recommends a 35-50 MW 30 year PPA. The PPA will include an escalating power price over the life of the contract. Steve Svec moved that the pool enter into a PPA with Plum Point for 50 MW and proceed with the necessary transmission request. Dan Watkins seconded the motion. Motion passed.
John asked if the pool wanted to relinquish part of their Prairie State participation in light of the additional 50 MW from Plum Point. There was no interest expressed in doing this.
Other Offers
We have an offer from Ameren for 15 MW of energy on a 7x24 for the period 1/1/07 – 5/31/10. Dan Watkins moved and Paul Jensen seconded a motion to authorize staff to enter into the contract. Motion passed.
Summer Forecast
Eve passed out the May pool bills and spoke briefly about how they were figured. She explained that members may notice a higher capacity cost due to the new Ameren contract, but that same contract provides us with a lower energy cost. Also as of June, 2006, capacity costs should drop to individual members due to the new membership of the KCP&L cities. Eve reported that about 75% of our resources are currently contract based, leaving us with about 25% exposure to the market during the summer.
OLD BUSINESS
Extension of Services and Control Area Services
Contracts
John reported that he is working to finalize the Westar ancillary services and control area services contracts this month. It will be through 2008, with a buy out agreement to address the possibility of MJMEUC providing these services in the future. It also includes credit for spinning reserves to acknowledge the Macon and Laddonia co-gen facilities. Steve Svec moved and Bill Elliott seconded a motion to authorize execution of the extension agreements with Westar.
NEW BUSINESS
Resolution 3-2006 Regions Bank/Ameren Letter of Credit
Resolution 4-2006 NC2 project authorization to take further actions on NC2 project
Resolution 5-2006 Resource Obligations
A motion was made by Steve Svec to approve all three of the above resolutions. Seconded by Linda Gast. The motion passed
Issuance of RFP
John reported that Eve is preparing an RFP for power supply with responses due by the end of summer or this fall. Steve Svec moved and Paul Jensen seconded a motion to issue the RFP. Motion passed.
OTHER BUSINESS
Steve Svec requested that he be able to see the pool load data at his utility and asked if the new SCADA system to be installed this year will accommodate that. John indicated that the ability was there, but he had concerns with security when data is put out on the web.
ADJOURN
As there was no further business, the meeting adjourned.