Title
TEA (The Energy Authority) Status Report (B)
Explanation
Staff has assembled operating results that summarize the value of the Utility's investment in TEA (Attachment 1). The financial benefits generated over the 20 month period beginning May 2000 and ending December 2001 include Production Cost Savings of $6,665,388 and Net Revenues from Spot Wholesale Power Sales of $1,820,958. These combined benefits amount to $8,486,346. TEA Operating Expenses for this period totaled $575,424.
These results are very favorable when compared to other alternatives available to the Utility for providing these necessary services. Participation as an equity partner in TEA has generated substantial value for the Utility. A review of TEA's operations is appropriate at this time because staff will request next month that the City Commission approve certain documents to increase TEA's scope of services to include providing natural gas purchasing services.
Recommendations
The City Commission hear a brief presentation from staff on the financial operating results of the Utility's partnership in The Energy Authority (TEA).
Drafter
Prepared by Ed Regan, Strategic Planning Director
Submitted by Michael L. Kurtz, General Manager