Approval Sheet

CITY OF GILLETTE
201 E. 5th Street
Phone (307)686-5200
CITY OF GILLETTE


www.gillettewy.gov

 
DATE: 2/17/2015 7:00:00 PM
SUBJECT:
Council Consideration of an Agreement for Membership with Western Systems Power Pool (WSPP) in the Amount of $25,000.00.
BACKGROUND:
The WSPP exists to provide a catalyst for an efficient and robust wholesale electric power market that allows WSPP members to effectively manage their power deliverability and price risk and create opportunity.

The WSPP Agreement is open to power sellers and customers, though it provides only for wholesale and not retail sales. Currently, there are more than 300 members.

The Agreement is used to allow transactions to occur without constant renegotiations of contract terms and to standardize terms, thereby promoting liquidity in the market. Currently, the WSPP Agreement is the most commonly used standardized power sales contract in the electric industry.  
ACTUAL COST VS. BUDGET:
The cost of membership in WSPP is a one time fee of $25,000.  Because operations for WSPP are funded through new membership fees, there is the possibility of an annual assessment fee for members, if new membership enrollment declines.  In 2013, there was a $2,000 annual assessment fee for all members.  In 2014, there was no fee.
SUGGESTED MOTION:
I Move for the Approval of an Agreement for Membership with Western Systems Power Pool (WSPP) in the Amount of $25,000.00.
STAFF REFERENCE:
Kendall Glover, Utilities Director
ATTACHMENTS:
Click to download
WSPP Agreement
WSPP Invoice
WSPP - Acceptance Letter