HomeMy WebLinkAbout2009-19 NCPA Limited Participation in the CAISO Congestion Revenue Rights AuctionRESOLUTION O. 2009-19
RESOLUTION O THE CITY OF UKIA
AUTHORIZING NCPA LIMITED PARTICIPATION IN THE
CAISO CONGESTION REVENUE RIGHTS AUCTION
WHEREAS, on May 6, 2007 the Ukiah City Council ("City"} authorized NCPA Staff to
participate on its behalf in the CAISO Congestion Revenue Rights (CRR's) allocation process in
order to minimize the costs of congestion in delivering energy from resources to load, and
WHEREAS, the City, as an NCPA Pool Member', has been awarded CRR's by the
CAISO to offset congestion costs in the CAISO Market Redesign and Technology Upgrade
("MRTU") Integrated Forward Market ("IFM"), commenced on March 31, 2009, and
WHEREAS, a subset of CRR's awarded, generally referred to as non-NCPA sourced
CRRs, have a greater potential of having a negative value to the City because they are not
protected by a generator owned by NCPA, and
WHEREAS, the risk of realizing a negative value associated with a non-NCPA sourced
CRR can be reduced by participating in the CRR auction and offsetting the awarded non-NCPA
sourced CRR by acquiring an equal and offsetting CRR through the auction, and
WHEREAS, City staff, the NCPA Risk Oversight Committee and the NCPA Commission
(NCPA Commission Resolution 09-08) have reviewed and approved limited participation in the
auction for the purpose of reducing exposure to negatively valued CRR's,
NOW, THEREFORE BE IT RESOLVED that the City Council authorizes NCPA staff to
participate in the CAISO CRR Auction, on behalf of the City, to unwind allocated CRR positions
in order to reduce risk associated with non-NCPA sourced CRRs and NCPA sourced CRRs with
expected negative congestion.
PASSED AND ADOPTED this 6th day of May 2009, by the following roll call vote:
AYES: Councilmembers Landis, Thomas, Crane, Rodin, and Mayor Ba
NOES: None
ABSTAIN: None
ABSENT. None
t
Phil' Baldwin, Mayor
ATTEST:
fn,_, ity Clerk
1 NCPA Pool Members are: Alameda Municipal Power, City of Biggs, City of Gridley, City of Healdsburg, City of
Lodi, City of Lompoc, City of Palo Alto, Port of Oakland, Plumas-Sierra REC and City of Ukiah