HomeMy WebLinkAboutStaff Report 308-05DISCUSSION
NCPA currently assists BART with services ancillary to BART's relationship with PG&E
whereby PG&E provides transmission and acts as BART's Scheduling Coordinator with the
CAISO. NCPA provides scheduling and related services to BART which have allowed BART
to significantly mitigate charges stemming from over and under supplying resources to meet
. BART's load.
California Senate Bill No. 1201, approved by the Governor on September 21, 2004, provides
BART the ability to receive electric power from municipal utilities. BART is contemplating
utilizing municipal power sourcing to help establish a resource supply portfolio following the
cessation ofitsBPA contract, as well to mote fully explore additional services available through
its expanded membership in NCP A.
BART is interested in considering a variety of supply options for its future power supply
including renewable, conventional and contract supply resources. NCP A would work closely
with BART in developing its future power supply alternatives and assessing BART's potential
inclusion in the NCP A power pool.
Approval of the execution of NCP A JP A Supplement No. 4 by the City will, upon parallel
execution by all other NCPA JPA signatories and BART, provide BART full NCPA membership
status. City previously approved Supplement No.3 to the JP A in November 1994 (Resolution
7367) to implement the membership of the Port of Oakland to the NCP A JP A.
RESOURCE IMPACT
Approval has no immediate impact on resources for the City. Under current assumptions, if
BART were to become a full proportionate participant in the NCPA pooling and legislative and
regulatory programs, BART's contribution to NCPA for such services received would be in the
range of about $1 million annually. NCPA does not anticipate adding staff toperform such
services for BART and thus BART's NCPA cost contributions would result in proportionate
budgetary offsets for all other members participating in the same NCP A programs. This has the
long term potential of reducing City'S contribution to NCPA's services budget by approximately
$100,000 per year.
POLICY IMPLICATIONS
Executing the NCP A JP A Supplement 4 is consistent with utilizing the NCPA joint action
environment to spread the benefits of joint action through greater cost dispersion while
simultaneously contributing to the success of a fellow public entity. BART's membership to
NCP A JP A has the potential to achieve economies of scale in developing jointly owned
electricity generation resources and i's consistent with Council-approved Utilities Strategic Plan
(CMR 148: 05).
TIMELINE
All existing NCPA JPA signatories must execute Supplement No.4 in order for BART's full
NCPA membership to become effective. NCPA anticipates a presentation by BART's General
Manager Mr. Tom Margro at the August 25, 2005 NCP A Commission Meeting in Murphys,
CMR:308:05 Page 20f3
NOT YET APPROVED
WHEREAS, NCPA has been performing scheduling and related
energy services for BART to assist BART with the matching of
loads and resources pursuant to BART's a supply contract with
the Bonneville Power Administration (BPA) and transmission
arrangements with PG&E;
WHEREAS, California Senate Bill No. 1201, approved by
the Governor on September 21, 2004, provides BART, in part, the
ability to receive electric power from municipal entities;
WHEREAS, BART's BPA supply contract terminates on June
30, 2006 and BART is seeking alternatives to such supply
including renewable and conventional generating resources and
other supply arrangements with municipal entities, and BART may
utilize NCPA services to assist in attaining such objectives;
WHEREAS, BART, in assessing and implementing post BPA
contract opportunities, desires to explore the utilization of,
and participation in, the NCPA Power Pool;
WHEREAS, by letter dated March 16, 2005, BART General
Manager Thomas E. Margo requested that BART become a full member
of the NCPA JPA;
WHEREAS, the NCPA Commission unanimously approved BART's
request to become a Party to the NCPA and directed the NCPA
General Manager to implement BART's full membership status by
submitting the necessary Joint Powers Agreement revisions
contained in Supplement No. 4 to the Members for their approval;
and
WHEREAS, the approval of City of Palo Alto is necessary,
along with the other NCPA JPA signatories, in order for BART's
full NCPA JPA participation to become effective;
NOW, THEREFORE the Council of the City of Palo Alto does
hereby RESOLVE as follows:
SECTION 1. The Council hereby approves the execution of
NCPA JPA· Supplement No. 4 which includes the San Francisco Bay
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WHEREAS, BART is a rapid transit district fonned pursuant to the provisions of the San
Francisco Bay Area Rapid Transit Act, California Public Utilities Code section 28500 et seq. and
a public agency of the State of California, is entitled to be a preference purchaser of electric
service from the Central Valley Project of the United States, and has powers equivalent to those
of the other members ofNCP A so far as is relevant to the powers ofNCP A.
NOW THEREFORE, the Parties, including BART, agree as follows:
Section 1. On and after the effective date of this Agreement, BART shall be a member
ofNCPA and a party to the Joint Powers Agreement, and shall have the same rights, powers, and
privileges and immunities, duties, and obligations as any other member ofNCP A.
Section 2. BART shall not be liable for any share of the organization, planning, or other
costs ofNCPA incurred prior to the effective date of this Agreement, and shall not by force of
this Agreement become a party to any other agreement or instrumentality ofNCP A entered into
or created prior to the effective date of this Agreement, except with its consent and the consent of
all other NCP A members and associate members who are parties to such agreement or
instrumentality evidenced separately from this Agreement.
Section 3. This Agreement shall take effect on the first day of the calendar month
following the complete execution of this Agreement by BART and all members and associate
members ofNCP A.
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By ________________ __
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PORT OF OAKLAND
By _______________ __
Date ________________ _
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By ________________ --
Date _______________ _
SAN FRANCISCO BAY AREA RAPID
TRANSIT DISTRICT
By ________________ __
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