DEPARTMENT: Environmental Resources
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute Contract With Xcel Energy For Engineering And Procurement Agreement For Byllesby Dam Energy Sales Interconnection
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PURPOSE/ACTION REQUESTED
Authorize to execute a contract with Xcel Energy for engineering and procurement prior to completion of Midcontinent Independent System Operator (MISO) power sales application to start the process for interconnection to Xcel Energy substation.
SUMMARY
Dakota County owns the Byllesby Dam and operates the hydroelectric facility under Federal Energy Regulatory Commission (FERC) safety regulations. Since 1987, the County has coordinated dam operations and maintenance with Neshkoro Power Associates (NPA) through a lease agreement. The County Board authorized replacing the NPA's lease agreement with an operating agreement to provide hydropower operation services at Byllesby Dam by Resolution No. 11-305 (June 21, 2011), beginning May 1, 2011, and running through March 2021. The March 2021 agreement termination date was selected as it was also the expiration date of the Power Purchase Agreement (PPA) between NPA and Xcel Energy for the Byllesby Dam. A new approach was needed for an agreement for power sales. By Resolution No. 20-295 (June 16, 2020), Dakota County authorized submittal of an application with the MISO for sale of energy. A MISO connection would allow the County to sell Byllesby Dam's power to other utilities in the Midwest or on the one-day-ahead spot energy market.
As part of the process, MISO studies determined upgrades are necessary to the system to accept Byllesby onto the grid. These upgrades are not allowed to begin before the completion of the MISO application process, which is still not completed. It has been determined that interconnection to the Xcel Energy substation could take 18 months or more. To expedite this process, an engineering and procurement agreement can be accepted between Dakota County and ...
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