HomeMy WebLinkAboutAgenda Report - May 16, 1990 (66)a
CuUNCIL
COMMUNICATION
TO: THE CITY COUNCIL CCUNM MEETING DATE: MAY ire 1990
FROM: THE CITY MANAGER'S OFFICE
SUBJECT: FOR ILIZATION OF INTEGRATED OPERATION CF NORTHERN CALIFORNIA PV'NER
AGENCY (NCPA_) GBDT L l[:T PROJECT THROUGH EXECUTION OF THE GBDT L
l[:T
PROJECT OPERATING AGREEMENT.
RECOMMENDED ACTION: That the City Council authorize the City Nlw4er and City
Clerk to execute the Geothermal Project Operating Agreement (Agreement).
BACKGROUND INFORMATION: When each of the two NCPA Geothermal Projects began
their commercial operation,. they were accounted for and operated as though the two
projects were separate, Controlled operation of the Geothermal Projects has
demonstrated that better utilization of the plants can be accomplished through
unified operation and equitable allocation of steam between the projects.
Therefore, a Geothermal Project Operating Agreement was prepared which allows NCPA
to male "best use" of the Geothermal resource, allocate steam and well drilling
costs on the basis of the net output from each project - a I I in accord with the
Memorandum of Understanding regarding the NCPA Geothermal Projects dated July 28,
1983.
Several years of study and
review lei NCPA and participant
staffs have resulted in
an agreement which allocates
project
costs equitably
and makes participants
indifferent to the source
of steam as
well as make best use of the generation
facilities. City of Lodi
staff have
participated in
the development of the
Agreement and recommend its
approval.
Henry J. Rice
Electric Util itv Director
CCGE0PRJ/TXTU.01D