HomeMy WebLinkAbout~Master - Transmission Membership Application and Agreements with MISO RESOLUTION NO. 14-182
RESOLUTION APPROVING TRANSMISSION MEMBERSHIP APPLICATION AND
SPECIFIED AGREEMENTS WITH MIDCONTINENT INDEPENDENT SYSTEM
OPERATOR(MISO)AND AUTHORIZING TERMINATION OF MEMBERSHIP IN
MIDCONTINENT AREA POWER POOL
FOR THE CITY OF AMES,IOWA
WHEREAS,in September 2009,the City of Ames Electric Services joined the Midcontinent
Independent System Operator(MISO); and,
WHEREAS, MISO provides an independent platform to serve and coordinate the
transmission of energy within our regional energy market, and it fosters wholesale electric
competition in the region,creates greater system reliability,and helps establish coordinated planning
for the interconnected regional transmission network; and,
WHEREAS, when the City first joined MISO, it did so as an energy"market participant,"
and through this organization, the City is able to purchase lower cost energy at times; and,
WHEREAS, in September 2013, changes were made to MISO's network service program
which caused the City to re-evaluate its options; and,
WHEREAS, qualified 69kV transmission facilities could now be included in the credit
calculation, and other benefits were also created, including additional wind-generated capacity and
decreased staff time to meet transmission scheduling demands; and,
WHEREAS, staff has made application to MISO for network integration transmission
service,and to be granted network transmission service and receive transmission credits,the utility
must become a Transmission Owner in MISO; and,
WHEREAS, as a Transmission Owner,the City would turn over"functional control"of its
transmission system to MISO, and functional control means that MISO would oversee and direct
transmission operations for the common good of the region; and,
WHEREAS, Transmission Owner status is accomplished through the execution of the
following agreements: Transmission Membership Application, Transmission Owners Agreement,
Appendix G Agency Agreement, Appendix I Supplemental Agreement, Settlement Agreement
between Transmission Owners and MISO on Filing Rights, and Funds Trust Agreement; and,
WHEREAS,if successfully approved by the City Council and the MISO Board of Directors,
Ames will become a Transmission Owner and begin to use network integration transmission service
on June 1, 2014; and,
WHEREAS, if City Council approves becoming a Transmission Owner in MISO, our
membership in the Midcontinent Area Power Pool(MAPP)will be terminated,since the City cannot
maintain our transmission in both organizations; and,
WHEREAS, City staff has given notice to MAPP of the City's intention to become a
Transmission Customer in MISO, and the exit fee to leave MAPP is equal to three years of
membership dues discounted for the dues paid between the notice date and June 1, 2014; and,
WHEREAS,that cost is estimated to be$400,000,and the amount of money saved in the first
year by moving to network service is more than enough to offset the exit fee.
NOW, THEREFORE,BE IT RESOLVED,by the City Council of the City of Ames, Iowa,
that the Transmission Membership Application and the specified Agreements with the Midcontinent
Independent System Operation (MISO) are hereby approved; the MISO membership fee payment
of$15,000 is hereby authorized,and termination of the City's membership in the Midcontinent Area
Power Pool is further authorized.
ADOPTED THIS 8th day of April, 2014.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Orazem
Seconded by: Betcher
Voting aye: Betcher, Corrieri, Gartin, Goodman,Nelson, Orazem
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 81h day of April, 2014.