Title
A RESOLUTION AUTHORIZING THE EXECUTION OF THE 2023 MEMBER POWER POOL SCHEDULE WITH AMERICAN MUNICIPAL POWER INC ("AMP").
Brief Description: The Northern Power Pool ("NPP") is an AMP resource that is utilized to purchase and sell power for each participating AMP member community based on short-term need. AMP has updated the pool agreement to align with the Pennsylvania-New Jersey-Maryland (PJM) regional transmission organization (RTO) rules and requirements. AMP is asking that all participating member communities pass Resolution for updates and continued program participation.
Body
Legislative History
Ordinance No. 11-48 - An Ordinance authorizing the execution of the Northern Pool Participant Schedule.
Purpose & Explanation
Hudson's electric system is interconnected to the FirstEnergy transmission system, which is operated by Pennsylvania-New Jersey- Maryland regional transmission operator (PJM). PJM controls the regional generation and transmission grid ranging from Illinois to New Jersey. To take advantage of economies of scale for power scheduling, forecasting and short-term energy supply in PJM, AMP had aggregated Hudson and forty (40) other AMP members connected to the FirstEnergy transmission system into the Northern Power Pool.
The Northern Power Pool Agreement provides the rules and methodologies for allocating among the Pool Participants, the charges and credits incurred by AMP for energy supply, and transmission and generation delivery ancillary services.
The Pool's last update was in 2011. The main changes for 2023 are as follows:
1. To limit the Pool Power Cost Adjustment (PCA) to a range of 0.5x to 1.5x, the actual price
2. Modify the methodology for allocating unrecovered pool energy costs through the PJM Ancillary Services Charge.
3. Revising the method for allocating Dispatch Center costs, and
4. Revising the method for determining weighted voting on matters that require a vote of the Pool Participants.
Note: thes...
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