HomeMy WebLinkAboutAgenda Report - September 20, 2000 E-14UCITY OF LODI COUNCIL COMMUNICATIONLL
AGENDA TITLE: Approve Special Allocation in the amount of $1,671,088 for purchase of additional power to
meet customer needs
MEETING DATE: September 20, 2000
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council approve the attached Special Allocation in the amount
of $1,671,088 for purchase of additional electric power.
BACKGROUND INFORMATION: The City of Lodi purchases bulk power from the Northern California
Power Agency (NCPA) and the Western Area Power Administration
(Western) for resale to the city's electric utility customers. During
FY1999-2000, the city purchased additional power in order to meet increased customer needs. Customer
energy requirements grew at a rate of 8.7%, over double the percentage growth of the previous fiscal year.
While the city has access to sufficient generation to meet its needs, high demands require the operation of
less efficient generating units and/or purchases from the power market at times of higher cost.
The increased cost of bulk power purchases has been more than offset by a combination of increased
sales, Ancillary Services and Reliability Must Run (RMR) revenues. Preliminary sales revenue results
alone show an increase of $2,001,481 over the original budget estimate for FY1999-2000.
FUNDING: Electric Utility Reserve Fund 160
Funding Approval: v.�� a` R���
Vicky McAth e, Finance Director ,
l
a . Vallow
ectric Utility Director
PREPARED BY: Jack Stone, Manager, Business Planning and Marketing
ANV/JS/Ist
C: City Attomey
APPROVED:
H. Dix9n Flynn - City Manager
Iti]
FROM:
CITY OF LODI
SPECIAL ALLOCATION REQUEST
ACCOUNTING MANAGER
FINANCE DIRECTOR
ELECTRIC UTILITY DEPARTMENT
DATE
PROJECT NUMBER
September 8, 2000
160642.8201(800)
Request is made for funds to accomplish the following project, which was not included in the current budget.
TITLE: Bulk Power Purchase
Description of Project
The City of Lodi purchases bulk power from the Northern California Power Agency
(NCPA) and the Western Area Power Administration (Western) for resale to the
city's electric utility customers. During FY1999-2000, the city purchased additional
power in order to meet increased customer needs. Customer energy requirements
grew at a rate of 8.7%, over double the percentage growth of the previous fiscal
year. While the city has access to sufficient generation to meet its needs, high
demands require the operation of less efficient generating units and/or purchases
from the power market at times of higher cost.
The increased cost of bulk power purchases will be more than offset by a
combination of increased sales and Reliability Must Run (RMR) revenues.
Date of Approval:
COUNCIL
Current Budget
Contingent Fund
Capital Outlay Reserve
CIP control account
Utility Outlay Reserve
Alan N. Vallow, Electric Utility Director
(If you need more space, use additional sheet and attach to this form)
Amount Approved:
CITY MANAGER
FUND OR ACCOUNT TO BE CHARGED
Reprogram Funds
Fund Balance — G F
Offset by revenues
Other: (Specify)
Account Number
Accounting Manager Finance Director
Submit this form in duplicate to the Finance Director, Distribution after approval will be as follows:
1) Originating Department 2) Finance Department
Estimated Costs
$1,825,000
C:WndowslTEMP%NCPA Bulk Power Purchase 9-20-00.doc
RESOLUTION NO. 2000-165
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING SPECIAL ALLOCATION FOR PURCHASE
OF ADDITIONAL POWER TO MEET CUSTOMER NEEDS
WHEREAS, the City of Lodi purchases bulk power from the Northern California
Power Agency (NCPA) and the Western Area Power Administration (Western) for resale
to the City's electric utility customers; and
WHEREAS, during Fiscal Year 1999-2000, the City purchased additional power in
order to meet increased customer needs, as the customer energy requirements grew at a
rate of 8.7%, over double the percentage growth of the previous fiscal year; and
WHEREAS, staff recommends approval of a Special Allocation in the amount of
$1,671,088 for purchase of additional power to meet customer needs.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby
approves a Special Allocation in the amount of $1,671,088 for purchase of additional
power to meet customer needs.
Dated: September 20, 2000
--------------------------------------------------------------------
--------------------------------------------------------------------
I hereby certify that Resolution No. 2000-165 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held September 20, 2000 by the following
vote:
AYES: COUNCIL MEMBERS - Hitchcock, Land, Nakanishi, Pennino and
Mayor Mann
NOES: COUNCIL MEMBERS None
ABSENT: COUNCIL MEMBERS - None
ABSTAIN: COUNCIL MEMBERS - None
SUSAN J. BLA�KSTON
City Clerk
2000-165