HomeMy WebLinkAboutValdez Coal Facility Status 1994
__ ee ae “ALASKA CC ENERATION S
March 18, 1994
Mr. Clayton Huriess
General Manager
Copper Valley Electric Association
P.O. Box 45
Glennallen, Alaska 99588
RE: Valdez Coal Fired Cogeneration Project - A Resource Option and
Qualifying Facility (QF)
Subject: Qualifying Facility Status and Long Term Power Sales Agreement
is Dear Mr. Hurless:
Please consider this letter as a formal notice that the Federal Energy Regulatory Commission (FERC) has returned notice of Qualifying Facility (QF) status for Alaska Cogeneration Systems, Inc. (ACS!) proposed Valdez coal fired facility under docket number QF 94-80-0000, a copy of which is attached. Furthermore please consider this letter as formal notice that ACSI intends to construct and operate a coal fired cogeneration facility in Valdez, Alaska, which will supply the foreseeable firm power and energy requirements of Copper Valley Electric.
ACSI also demands to meet with CVEA management in the immediate future to begin negotiating a long term power sales agreement. Pursuant to 18 CFR § 292.303 - 304 and 3 AAC 50,770, CVEA is required.to purchase the QF's entire capacity and energy output, at CVEA's firm power avoided cost rates. Although avoided costs rates are presently the subject of formal proceeding pending before the Commission, ACSI! and CVEA can begin negotiating and drafting the basic language of a tong term power sales agreement absent avoided costs provisions.
Sincerely, Deb pbs
Frank J. Bettine} P.E., J.D.
President
cc; Richard Emerman, OCRA
John Olsen, AIDEA
John Heberling, R.W. Beck Robert Sunder, CVEA
cvea7
229 Whitney Road + Anchorage, Alaska 99501 « (907) 278-7283 = FAX (907) 278-7448
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November 11, 1993 NO¥ 15 1993
Aisoxa indusyiai Develapment Mr. Clayton Hurless cence end Export Authority General Manager
Copper Valley Electric Association
P.O. Box 45
Glennallen, Alaska 99588
RE: Valdez Coal Fired CoGeneration Project - A Resource Option and
Qualifying Facility (QF)
Subject: Firm Avoided Power Cost and Long Term Sales Agreement
Dear Mr. Hurless:
Please consider this letter as a formal notice that Alaska CoGeneration Systems,
Inc. (ACSI) intends to construct and operate a coal fired cogeneration facility in
Valdez, Alaska, with an installed capacity in excess of 10 megawatts. The
cogeneration facility would supply the foreseeable firm power and energy
* requirements of Copper Valley Electric. The cogeneration facility will qualify as a
Qualifying Facility (QF) under Sections 201 and 210 of the Public Utilities
Regulatory Policies Act, which is codified in 18 CFR § 292 and in 3 AAC 50.750 -
‘3 AAC 50.820. The construction of the QF by ACSI will eliminate any need for
CVEA to construct the Glennallen to Sutton transmission intertie.
ACSI requests to meet with CVEA management and Board of Directors in the
immediate future, so that ACSI personnel may advise CVEA's management and
board members about the coal fired cogeneration which ACSI intends to construct
in Valdez. The board meeting scheduled for November 17th in Valdez would be
an excellent forum for ACSI to present information about the Project to CVEA's
management and Board of Directors.
ACSI also requests an immediate meeting with CVEA management to begin
negotiating a long term power sales agreement. Pursuant to PURPA 201 and 210
and 3 AAC 50.750 - 3 AAC 50.820, CVEA is required to purchase the QF's entire
capacity and energy output at CVEA's firm power avoided cost rates. ACSI will
presume an avoided cost rate of 15.24 cents per kwh, which is the avoided cost
published by CVEA in a recent report entitled "History and Status of Power
Generation Resources", pg ES1, October 1993. CVEA's published avoided cost
229 Whitney Road + Anchorage, Alaska 99501 + (907) 278-7283 + FAN (907) 278-7448
Page 2
Valdez Coal Fired Cogeneration Project
of 15.24 cents will be the baseline at which power sales negotiations can begin, unless
CVEA can demonstrate a lower firm power avoided cost rate that is applicable to a QF
which can provide CVEA with approximately 10 megwatts of firm power.
In accordance with 3 AAC 50.790(a), CVEA's effective tariff must delineate and authorize
interconnection and purchases and sales of electric power between CVEA and a
qualifying QF, including but not limited to provisions for:
(1) the charges, terms and conditions for interconnection to a QF;
(2) the rates, terms and conditions for purchase of firm and non-firm power
from a QF and;
(3) the rates, terms and conditions for sales of power to a QF.
In addition, 3 AAC 50.790(d) requires CVEA to compile and maintain for public inspection
the current data and information specified in 3 AAC 50.770(d)(1) and 3 AAC
50.770(e)(1)(A)-(C), and a schedule setting forth all current tariff and special contract
purchase rates with qualifying facilities.
CVEA's present tariff does not cover QF's with an installed capacity in excess of 100
kilowatts. Additionally, CVEA has failed to compile the information applicable to large
QF's as required by 3 AAC 50.790(d). Therefore, ACSI insists CVEA proceed in an
expedient manner, to provide ACSI and the Alaska Public Utilities Commission, with all
data, information and tariff documents, as required by 3 AAC 50.790, that is applicable
to a QF which can provide CVEA with 10 megwatts of firm power.
ACSI personnel would be pleased to meet with both CVEA management and board
members in Valdez on the afternoon of November 17th, either prior to CVEA's monthly
board meeting or at the board meeting, to further discuss the cogeneration Project.
Please let me know by 4:00 P.M. on Friday, November 12, 1993, if CVEA's management
or board members desire to meet with ACSI personnel on November 17th.
Sincerely,
Ee Aol Randy Hobbs,
cc: Mark Foster, APUC Robert Sunder, CVEA
John Olsen, AIDEA John Heberling, R.W. Beck
Richard Emerman, DCRA Park Kriner, Park's Place
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November 11, 1993 Ov f 1$93
Aigsica indussiai Develepment and Exnart Authority (a) Mr. Clayton Hurless
General Manager
Copper Valley Electric Association
P.O. Box 45
Glennallen, Alaska 99588
RE: Valdez Coal Fired CoGeneration Project - A Resource Option and
Qualifying Facility (QF)
Subject: Firm Avoided Power Cost and Long Term Sales Agreement
Dear Mr. Hurless:
Please consider this letter as a formal notice that Alaska CoGeneration Systems,
Inc. (ACSI) intends to construct and operate a coal fired cogeneration facility in
Valdez, Alaska, with an installed capacity in excess of 10 megawatts. The
cogeneration facility would supply the foreseeable firm power and energy
* requirements of Copper Valley Electric. The cogeneration facility will qualify as a
Qualifying Facility (QF) under Sections 201 and 210 of the Public Utilities
Regulatory Policies Act, which is codified in 18 CFR § 292 and in 3 AAC 50.750 -
3 AAC 50.820. The construction of the QF by ACSI will eliminate any need for
CVEA to construct the Glennallen to Sutton transmission intertie.
ACSI requests to meet with CVEA management and Board of Directors in the
immediate future, so that ACSI personnel may advise CVEA's management and
board members about the coal fired cogeneration which ACSI intends to construct
in Valdez. The board meeting scheduled for November 17th in Valdez would be
an excellent forum for ACSI to present information about the Project to CVEA's
management and Board of Directors.
ACSI also requests an immediate meeting with CVEA management to begin
negotiating a long term power sales agreement. Pursuant to PURPA 201 and 210
and 3 AAC 50.750 - 3 AAC 50.820, CVEA is required to purchase the QF's entire
capacity and energy output at CVEA's firm power avoided cost rates. ACSI will
presume an avoided cost rate of 15.24 cents per kwh, which is the avoided cost
published by CVEA in a recent report entitled “History and Status of Power
Generation Resources", pg ES1, October 1993. CVEA's published avoided cost
229 Whitey Road + Anchorage, Alaska 99501 * (907) 278-7283 + FAX (907) 278-7448
Page 2
Valdez Coal Fired Cogeneration Project
of 15.24 cents will be the baseline at which power sales negotiations can begin, unless
CVEA can demonstrate a lower firm power avoided cost rate that is applicable to a QF
which can provide CVEA with approximately 10 megwatts of firm power.
In accordance with 3 AAC 50.790(a), CVEA's effective tariff must delineate and authorize
interconnection and purchases and sales of electric power between CVEA and a
qualifying QF, including but not limited to provisions for:
(1) the charges, terms and conditions for interconnection to a QF;
(2) the rates, terms and conditions for purchase of firm and non-firm power
from a QF and;
(3) the rates, terms and conditions for sales of power to a QF.
In addition, 3 AAC 50.790(d) requires CVEA to compile and maintain for public inspection
the current data and information specified in 3 AAC 50.770(d)(1) and 3 AAC
50.770(e)(1)(A)-(C), and a schedule setting forth all current tariff and special contract
purchase rates with qualifying facilities.
CVEA's present tariff does not cover QF's with an installed capacity in excess of 100
kilowatts. Additionally, CVEA has failed to compile the information applicable to large
QF's as required by 3 AAC 50.790(d). Therefore, ACSI insists CVEA proceed in an
expedient manner, to provide ACSI and the Alaska Public Utilities Commission, with all
data, information and tariff documents, as required by 3 AAC 50.790, that is applicable
to a QF which can provide CVEA with 10 megwatts of firm power.
ACSI personne! would be pleased to meet with both CVEA management and board
members in Valdez on the afternoon of November 17th, either prior to CVEA's monthly
board meeting or at the board meeting, to further discuss the cogeneration Project.
Please let me know by 4:00 P.M. on Friday, November 12, 1993, if CVEA's management
or board members desire to meet with ACSI personnel on November 17th.
Sincerely,
Randy Hobbs,
cc: Mark Foster, APUC Robert Sunder, CVEA
John Olsen, AIDEA John Heberling, R.W. Beck
Richard Emerman, DCRA Park Kriner, Park's Place