HomeMy WebLinkAbout~Master - Joint Pricing Zone Agreement with MidAmerican Energy and Cedar Falls Electric Utilities RESOLUTION NO. 14-207
RESOLUTION APPROVING JOINT PRICING ZONE AGREEMENT WITH
MIDAMERICAN AND CEDAR FALLS ELECTRIC UTILITIES
FOR THE CITY OF AMES,IOWA
WHEREAS,on April 8,2014,the City Council approved documents for permitting the Ames
Municipal Electric Utility to become a Transmission Owner in the Midcontinent Independent System
Operator(MISO); and,
WHEREAS, on June 1, 2014, the utility will be able to use Network Transmission Service
to deliver energy purchases from the energy market to its customers; and,
WHEREAS, this agreement defines the method by which MISO transmission revenues are
distributed amongst Ames,MidAmerican Energy,and Cedar Falls Utilities(representing Cedar Falls,
Atlantic, Montezuma, Tipton, Eldridge, Pella, and IPPA municipal utilities); and,
WHEREAS,in FY 2012/13,the Citypaid$1,345,567 for point-to-point transmission service,
and this fiscal year to date the City has paid$1,106,926; and,
WHEREAS, as the new 161kV transmission facilities are placed in service and included in
the investment calculation,the City's net transmission cost will continue to decrease each year;and,
WHEREAS, depending on several factors, the City could reach a point where our
investments fully offset our transmission costs, and the utility actually begins to receive monthly
payments for these investments; and,
WHEREAS,it is customary for staff to bring an agreement to Council for signature after the
other party has signed,in this case,Cedar Falls Utilities signed on April 16,2014,but MidAmerican
will not be able to sign the agreement until April 23, 2014; and,
WHEREAS, if successfully approved by the City Council, Ames will begin receiving
transmission credits as of the effective date approved by the Federal Energy Regulatory Commission
(FERC), which is currently estimated to be June 1, 2014; and,
WHEREAS, staff met with the Electric Utility Operations Review and Advisory Board
(EUORAB) and presented an overview of how the utility currently purchases transmission service
and the changes that would take place if we were to become a transmission owner in MISO; and,
WHEREAS,the EUORAB accepted staff s recommendation to become a transmission owner
in MISO.
NOW, THEREFORE, BE IT RESOLVED,by the City Council of the City of Ames, Iowa,
that the Joint Pricing Agreement with MidAmerican Energy and Cedar Falls Utilities is hereby
approved.
ADOPTED THIS 22nd day of April, 2014.
CA -L(A /&� tfl. ems,
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 22nd day of April, 2014.