About Us
Introduction
CMMPA is a joint action agency of 12 members located in south central Minnesota with similar needs but also unique differences. All CMMPA members have equal vote and representation on the board.
Each member maintains control over its power supply portfolio. Some of our members have partial requirements power supply contracts with other power suppliers and only receive supplemental service from CMMPA; other members receive all their requirements from CMMPA. Portfolios can contain a combination of both member owned resources and agency owned resources. CMMPA allows members to install generation locally, including peaking generation and renewable sources.
Most of CMMPA members have diesel peaking generation in their cities to cover part or all of their load. If a member has surplus peaking capacity, the agency assists them in selling the excess into the market.
The Planning Function
The primary function of CMMPA is to assist its members in their resource planning. In the resource planning process, CMMPA identifies the economically optimum mix of base load resources, intermediate gas, peaking diesel and renewables. CMMPA identifies the needs for the various resources at both the individual member level and at the aggregate agency level. The agency then uses the planning study results to develop a shopping list for the agency and each of its members.
In addition the agency also provides the added value of being a professional and technical resource or advisor to members, in some ways an extension to your staff. Being a member of CMMPA provides a forum to assist you in staying informed on the changing electric utility industry.
The Development of Projects
With the shopping list in hand, the agency then searches out power supply projects to fulfill the agency’s and the members’ needs. This phase usually involves:
- Issuing RFP’s
- Evaluating projects with developers
- Performing financial analysis and due diligence
- Negotiating upstream contractual terms with developers
- Developing downstream project agreements
- Acquiring interim and permanent financing at the agency level
A very significant benefit of participating in an agency is to share the planning and development cost associated with the above procurement process. These costs can be very significant if a individual municipal has to bear such cost alone because they typically are the same relative costs for a 10 MW or a 100 MW participation. Aggregating members’ needs at the agency level also helps to leverage power supply and transmission opportunities.
Long Term Projects
The types of projects CMMPA participates in are:
- Generation Projects (Base Load and Intermediate)
- Short Term or Intermediate Power Supply Contracts
- Transmission Projects
- Renewable/Biomass
- Load Management
The agency sponsored projects are “at cost” plus any directly-assignable costs associated with managing the projects plus an allocated share of the agency administrative and general overhead.
The current CMMPA sponsored projects are OPPD Nebraska City #2 (2009), OTP Big Stone #2 (2013), CAPX Transmission (2014) and 26 Mw of Wind and Biomass (2007).
CMMPA is also currently in the process of evaluating 3 or 4 different future base load generation alternatives scheduled to come on line in 2010, 2012, and 2014. It is also reviewing proposals for intermediate simple cycle and combined cycle gas turbine capacity and energy that it recently received in an RFP.
CMMPA is also going to be evaluating the acquisition of additional renewables in order to meet its Minnesota 25% RES requirement.
Other Supplemental Energy Sources for Short Term Needs
In addition to the projects, CMMPA also provides supplemental energy from power supply contracts from NSP and Ameren.
|