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HomeMy WebLinkAboutMINUTES Light and Power Committee 1973-05-0900 HD DRAOFORO PUDLISHING CO.,DENVCR R E C 0 R D 0 P R 0 C E E D N G S OO LEAVES MINUTES OF CALLED NEETING OF PLATTE RIVER MUNICIPAL POWER ASSOCIATION MAY 9,1973 The meeting was called to order at 9:30 A.M.in the Council Chambers of City Hall, Longmont,Colorado,by President Stanley R.Case,with the following Board members present:Jerry Trotter,Longmont;Don Hataway,Loveland and Robert L.Dekker, Estes Park. Also in attendance were:Raphael Moses,PRMPA Attorney,Boulder;Dunn Krahl,Boettcher and Co.,Denver;Stuart Jordan,R.W.Beck &Associates,Denver;Louis Hinz and Robert Smith,Longmont;Tim Sagen and Sam Warner,Fort Collins and Elbert Dallemand, John Deines and David Rozof,Loveland. The minutes of the meeting of April 4,1973 were approved-as corrected on motion by Don Hataway,second by Jerry Trotter and carried.- YAWA PROJECT: FUEL AGREEMENT -Robert Dekker reported on the meeting in Denver on April 6th.At this meeting authorized representatives from Colorado-Ute,Tn-State,Salt River, PEMPA and Utah International executed the Fuel Agreement Contracts.Stan Case passed out copies of the Fuel Agreement to each city,Ray Moses and Stu Jordan.The signed original will be in PRMPA’s files.Copies also went to the R.E.A.Administrator and we will get copies back when he has signed them.- CRAIG PLANT SITE State Land Board Auction -A copy of Bob Bryant’s letter recapitulating the recent land purchase had been sent to members with the May 9 Agenda.Stan Case told of the bidding on the plant site.The average sale price on the plant site was $188.00 per acre.Jerry Trotter has received a refund of approximately $37,000.00,which we will leave in the treasury. Elmer Mack Property -We will negotiate with the Mack’s to buy their 40 acre parcel, We had hoped this land could be bought for the .$l88.OO per acre average,but they presently are asking $500.00 per acre. Title Insurance Policy -Mr.Moses explained that R.E.A.rules require Title In surance on property before building on it.Since the premium would amount to about $455,000.00 on the improved plant site property,this matter will be investigated to s if we can get a variance in this particular case.The property always has been in the State’s ownership and therefore should be clear.Ray Moses commented that our lenders probably would want a Title policy secured,however. ELKHEAD RESERVOIR Senate Bill 185 ha passed the Senate and gone to the House.The Committee,before discussing our bill,discussed the Clay County Dam break ‘of several years ago where serious damage could not be recouped from the State.Since liability seemed to be the main concern,several changes were made in the agreement with the result being that the Yampa Project would reimburse the State each year for the liability in surance premium. A motion to approve the contract as amended and submitted and to authorize the President and Secretary to sign was made by Don Hataway,seconded by Jerry Trotter and carried. ASH DISPOSAL AGREEMENT Mr.Moses reported there were no changes on the Ash Disposal Agreement since the last meeting.Stan noted that ownership of the ash hauling equipment is the only hang-up right now. 00 ORADFORO PUDLISI-iiNG CO.,DENVER C 0 R D 0 F P 0 C E D N G S 00 LEAVES PRNPA May 9,1973 Page two POOLING AGRE”IENT Stuart Jordan commented on the meeting of April 24.He stated he was quite dis appointed in the last meeting and thought it wound up with a worse agreement than we started with.The original agreement had a provision for reserve capacity to cover the loss of the single largest contingency on the system,plus regulation, with a back-up provision to be executed within ten hours of a contingency loss setting reserve capacity to cover loss of the largest remaining single contingency. The Bureau was not in favor of this.They wanted only a provision for the loss of first contingency.So,they ended up with a new draft that covers these changes on total reserve capacity.Participants should comment within the next five days so it can be signed in June.Mr.Case passed copies of this revised draft to members. Comments should be sent to Bill Trommershausen by the 15th.Comments in writing then have to be in to Te Hardy by May the 16th.The goal now is to get a draft agreeable to all of us back to Washington to be reviewed by the solicitor as soon as possible. WATER RGHTS Mr.Moses spoke of John Wittemeyer’s meeting of April the 5th.One conclusion was that the Synthetics Products Decree of sixty second feet,plus the Elkhead Reservoir Storage,would provide enough water for our needs.He mentioned the possibility of transferring available direct flow rights to wells on the plant site to be used as back-up if necessary. PARTICIPATION AGREENT Mr.Moses stated that the Participation Agreement is now complete.The only things missing are the exhibits that go with i;that is,the Fuel,Ash Disposal,Water Rights,Pooling and Transmission Agreements.Mr.Moses will send copies of the Agreement to each city for their review.Hopefully,execution can be accomplished by the end of July. ENGINEERING SERVICES Mr.Case stated that Colorado-Ute is in a second draft on the contract with Stearns- Rogers.He pointed out that 20 megawatts is planned for station power and 30 mega watts for sulfur removal.Mr.Case also passed out copies of the updated Critical- Path Map with the comment that some dates of financial feasibility should be added. EVIROiETAL ANALYSIS This analysis is shaping up real fast.Mr.Case brought some copies of the draft for anyone interest’ed in seeing what has been completed thus far.He will not duplicate the drafts but will hav&some copies of in-House draft going out so everyone will have something in their fjles. C.U.submitted an estimate for a new Economic Impact study,but will not be able to have it back in time.We willi.e the old material and make a note to the effect the information is two years old.Discussion followed concerning taxes and possible methods to take care of new schools,housing,water and sewage in the Craig area. Probably in the first part of June there will be a public meeting in Craig to ex plain all phases of the Yampa operation.This should be a coordinated meeting with Utah International. CASH FLOW Stan Case discussed and explained the cash flow charts attached to the Agenda.Stu Jordan then explained that the Fort Collins-Loveland 115-230 KV line is based on a completion date of June,1974.$890,000.00 is the amount of money estimated to be needed through April of 1974.Pla1e River’s $113,000.00 portion of Elkhead Reservoir is plugged in for September.Stan added that a small amount of money may have to be od DAOFORO PUOLISHiNG CO.,DENVER R E C 0 R D 0 F P R 0 C E E D N G $OO LEAVES PRNPA May 9,1973 Page three advanced for the 345 KV transmission engineering.Dunn Krahl thinks that we probably will need ome interim financing by September.Stan mentioned that we will have to spend a little extra money in June to get the new PRNPA manager set up with the equipment he will have to have when he comes mon board1’at that time. Fort Collins can give him temporary office space at no charge. FINANCIAL REPORT Stan reviewed the Yampa Project Financial Report that is attached to the Agenda. With the current balance of $64,754.05,which includes $16,000.00 held back for the Mack property purchase,no funds will be required by the participants as of April 25,1973. FINANCIAL FEASIBILITY STUDY: Stu Jordan reported there hasn’t been too much done on this study since he and Dunn Krahl got together last fall and laid some plans.He did say they have most of the information that they need and can move ahead rapidly and easily meet the time frame we need.Dunn said we do not need the study prior to interim financing, but we will need it when we go out of this area for financing. TRANSMISSION: HAYDEN-AULT 345kv Stan said that we are aiming at the 345 kv Environmental Statement to go to the Commissioner of the Bureau of Reclamation by June 1.From there it would go to the Council of Environmental Quality on July 1.The Forest Service has informed us they do not want this line in Colorado so the problem of Colorado or Wyoming for the location will have to be resolved.Ray Moses added that the Wyoming Public Service Commission probably will not be receptive to locating this line in Wyoming. He also stated that indications are favorable that a suit probably would be successful in an atteml±to keep the line in Colorado,even though the Environmental Impact Statement says a Wyoming route would be better.After the Friday meeting, which Ray will be attending,Stan will talk to him to see what decisions were made. DRAFT BETWEEN U.S.B.R.,TRI-STATE AND PBNPA Stan passed out copies of a draft composed by him and Wendell Garwood of Tn-State. These should be checked by individual cities and comments sent to Stu Jordan by next week.He,in turn,will get changes to Al Hoover who will put together one more draft which wi,ll be sent to Washington,as well as circulated to us again. FORT COLLINS-LOVELAND-LQNGMONT 230 kv Progress Report - Tim Sagen reported that we are looking at July,next year,if we go with the full contract.Surveys have been completed and gone back for corrections.Tim Sagen talked with Mr.Fred Ruckhaus at R.W.Beck and completed surveys will be furnished to Tim on Friday.They can start procuring rights-of-way at the north end of the line right away.John Deines reported that they are awaiting results from the appraisers and as soon as they are received they will make offers.Tim said they will go ahead with offers on their end without appraisals.Tim wants spec’s.done by the end of June if we a’e going for bids on transmission poles in July. RADFORO PUDUSHING CO.,OENVCR ft E C 0 ft D 0 F P ft 0 C E D N G S 100 LEAVES PPSMPA May 9,1973 Page four -Allocation of Costs After considerable discussion on interim financing,pole contract dates and other related items,there seemed to be no objection to PRI’A’s paying the bills and being reimbursed later.Jerry Trotter moved,and Bob Dekker seconded the motioi that PRA pay R.W.Beck’s bill until interim financing comes in and the job is completed, then we can straighten up the books.The motion carried. Northeastern Colorado Flow Studies Stuart Jordan reported that they have turned out one base-case and seven outage cases altogether.They see only two fairly critical problems after reviewing the ‘73 cases. One is Public Service Company’s St.Vram to Beaver Creek 230kv line.If that were lost,voltage would be pretty low in the Fort Morgan,Brush,Beaver Creek area. The other critical area is thern Fort Collins to Flatiron line.With no other inter connections and just the line from Cheyenne to Fort Collins in use,that line would not hold.Discussion followed concerning probable dates of putting Fort St.Vram on the line but no one has information on the exact time.By the next meeting,Stu will have the 1974 cases available for review. USER -PR21PA POWER CONTRACT: The Master Contract has gone back to Washington.It essentially has been approved except for Section 23 which covers power factor.Stan passed out copies of Al Hoover’s substitute draft of Section 23.After review and discussion,it was moved by Jerry Trotter,seconded by Bob Dekker,and carried that PRNPA approve the sub stituted Section 23. SCHEDULE A’s -PENPA POWER CONTRACTS: Sam Warner has reviewed the Schedule A’s and says they are in order.Fort Collins’, Loveland’s and Estes Park’s contracts have been signed by their Councils.It was moved by Don Hataway,seconded by Jerry Trotter,and carried that the President and Secretary be authorized to execute the Schedule A’s.These will be signed before leaving the meeting today. PEMPA MANAGER: Each Board member was given a signed copy of the Personal Service Contract for their files,as signed by Al Hamilton.An official announcement of our decision may be made about May 25.A motion was made by Robert Dekker,seconded by Don Hataway, and carried to ratify the contract with Al Hamilton. PLATTE RIVER FINANCIAL REPORT: Jerry Trotter reported that with the Yanpa Project reimbursement,we currently have a cash balance of $49,046.11.No assessments will be necessary at this time.The reimbursement of $37,342.52 will be kept in the treasury. NEXT MEETING DATE: The next meeting will be on Wednesday,June 6,1973,at 10:00 A.M.at Boettcher and Co.offices on the second floor at 828 -17th Street in Denver.