Options in the Eleventh Year for Interim Standard Offer Number Four Contracts

PDF Version Also Available for Download.

Description

The Interim Standard Offer Number Four Contracts (ISM), under which most of the geothermal industry is selling power (outside of The Geysers), has an initial ten year period of known fixed energy payments. In the eleventh year, the price goes to the Avoided Cost of the buying utility. The specific contract language is ''Seller will be paid at a rate equal to the utilities' published avoided cost of energy as updated and authorized by the Commission (CPUC)''. The first geothermal contract will reach the end of the initial 10 year period in early 1994, a few will end in 1995 ... continued below

Physical Description

23-26

Creation Information

Hinrichs, Thomas C. March 24, 1992.

Context

This article is part of the collection entitled: Office of Scientific & Technical Information Technical Reports and was provided by UNT Libraries Government Documents Department to Digital Library, a digital repository hosted by the UNT Libraries. More information about this article can be viewed below.

Who

People and organizations associated with either the creation of this article or its content.

Publisher

Provided By

UNT Libraries Government Documents Department

Serving as both a federal and a state depository library, the UNT Libraries Government Documents Department maintains millions of items in a variety of formats. The department is a member of the FDLP Content Partnerships Program and an Affiliated Archive of the National Archives.

Contact Us

What

Descriptive information to help identify this article. Follow the links below to find similar items on the Digital Library.

Description

The Interim Standard Offer Number Four Contracts (ISM), under which most of the geothermal industry is selling power (outside of The Geysers), has an initial ten year period of known fixed energy payments. In the eleventh year, the price goes to the Avoided Cost of the buying utility. The specific contract language is ''Seller will be paid at a rate equal to the utilities' published avoided cost of energy as updated and authorized by the Commission (CPUC)''. The first geothermal contract will reach the end of the initial 10 year period in early 1994, a few will end in 1995 and 1996, and the majority will end in the 1997-2000 period. This is beginning to be focused upon by the utilities, lenders and, of course, the operators themselves. The prime reason for focusing on the issue is that avoided costs of the utilities directly track the delivered cost of the natural gas, and most forecasts are showing that the price of gas in the eleventh year of the contracts will be significantly lower than the last year of the fixed period of energy payments. There are many forums in which the predication of natural gas prices are discussed. In the State of California, the agency responsible for the official forecast is the California Energy Commission. Every two years, the CEC holds hearings for input into its biennial Fuels Report (FR) which establishes the forecast of natural gas prices in addition to other parameters which are used in the planning process. The attached Exhibit I is an excerpt out of the 1991 Fuels Report (FR91). Figure 1 compares the forecast of FR89 and FR91 for the Utility Electric Generation (UEG) in PG&E's service area, and Figure 2, the forecast in the SOCAL service area. The FR91 SOCAL service area forecast indicates a bottoming of the gas price in 1994 at $2.50/mmbtu. Recent prices in 1992 are already at these levels. Converting this to an avoided energy cost brings about a price of 2 to 2-1/2 Cents/kWh. The 1992 energy price in the IS04 contract is 9.3 Cents/kWh.

Physical Description

23-26

Source

  • Proceedings, Geothermal Energy and the Utility Market - The Opportunities and Challenges for Expanding Geothermal Energy in a Competitive Supply Market; San Francisco, CA, March 24-26, 1992, Geothermal Program Review X

Language

Item Type

Identifier

Unique identifying numbers for this article in the Digital Library or other systems.

  • Report No.: CONF-920378--5
  • Grant Number: None
  • Office of Scientific & Technical Information Report Number: 891877
  • Archival Resource Key: ark:/67531/metadc884189

Collections

This article is part of the following collection of related materials.

Office of Scientific & Technical Information Technical Reports

Reports, articles and other documents harvested from the Office of Scientific and Technical Information.

Office of Scientific and Technical Information (OSTI) is the Department of Energy (DOE) office that collects, preserves, and disseminates DOE-sponsored research and development (R&D) results that are the outcomes of R&D projects or other funded activities at DOE labs and facilities nationwide and grantees at universities and other institutions.

What responsibilities do I have when using this article?

When

Dates and time periods associated with this article.

Creation Date

  • March 24, 1992

Added to The UNT Digital Library

  • Sept. 21, 2016, 2:29 a.m.

Description Last Updated

  • Dec. 9, 2016, 6:44 p.m.

Usage Statistics

When was this article last used?

Yesterday: 0
Past 30 days: 0
Total Uses: 4

Interact With This Article

Here are some suggestions for what to do next.

Start Reading

PDF Version Also Available for Download.

Citations, Rights, Re-Use

Hinrichs, Thomas C. Options in the Eleventh Year for Interim Standard Offer Number Four Contracts, article, March 24, 1992; United States. (digital.library.unt.edu/ark:/67531/metadc884189/: accessed November 20, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.