Example Organizational Models for Tribal Utilities - PowerPoint Presentation

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Example Organizational Models for Tribal Utilities

Margaret SchaffKanim Associates, LLC303-443-0182mschaff@att.netFebruary 25, 2015Slide2

US Department of Energy

"Tribal Authority Process Case Studies: The Conversion of On-Reservation Electric Utilities to Tribal Ownership and Operation" January 1996 (Updated and Revised 2009)http://apps1.eere.energy.gov/tribalenergy/pdfs/tribal_authority.pdf Slide3

Summary of Original 1996 Case Study Report

Bureau of Indian Affairs Owned and Operated:Colorado River Agency Electric System (Colorado River Indian Reservation, Arizona)San Carlos Indian Irrigation Project (Gila River Indian Reservation, Arizona and California; and San Carlos Apache Indian Reservation, Arizona)Bureau of Indian Affairs Owned and Tribally Operated:Mission Valley Power (Salish and Kootenai Tribes on the Flathead Reservation, Montana)Detailed Case Studies of utilities:Aha Macav

Power Service (Fort Mohave Tribe, Arizona and California)

Tohono O’odham Utility Authority (Tohono O’odham Nation, Arizona)

Also Mentioned:

Navajo Tribal Utility Authority (Navajo Nation, Arizona, New Mexico and Utah)Slide4

Other Example Operational Electric Tribal Utilities Serving Tribal Reservation Loads – After 1996

Ak-Chin Indian Community Electric Utility Authority Gila River Indian Community Utility AuthorityMohegan Tribal Utility Authority*Rock Industries, (Formerly Standing Rock Utilities and Telecommunications)*Umpqua Indian Utility CooperativeYakama Power*We were unable to verify details regarding these utilities due to lack of direct information from the tribal utility. Slide5

Ak-Chin Energy Services

The Ak-Chin Indian Community formed its utility in November of 1997 as a tribal enterprise with an appointed 5 person Board of Directors, 3 of whom must be from the community. It acquired utility facilities on the reservation from Arizona Public Service Company with the goal of stabilizing and controlling electric rates for utility customers and establishing tribal control over utility services. The utility operates under an established Plan of Operation. Mission: Provide electric utility service to the Reservation at the lowest possible cost consistent with prudent fiscal responsibility. Educate the Reservation in the proper, efficient and economical use of electric utilities.

Wholesale power is supplied by Western Area Power Administration.

The utility is a member of the Arizona Tribal Energy Association, the American Public Power Association, and the National Rural Electric Cooperative Association.

Since its formation, utility activities have focused on infrastructure improvements. Other renewable energy options have been evaluated. The utility is currently planning an energy efficiency program and is considering other customer service programs. Slide6

Gila River Indian Community Utility Authority

The Gila River Indian Community Utility Authority was founded in February of 1998 as a tribal enterprise. It is governed by a utility board. It first began serving electrical loads at the Wild Horse Pass Development Area and casino. In March of 2002 it purchased additional infrastructure from Salt River Project. By December of 2002 the utility was successful in building a new 69kV to 12 kV substation at the Bureau of Indian Affairs San Carlos Irrigation Project (SCIP) Lone Butte site.In 2002 the Council adopted a “Community Wide Electrical Energy Plan”, then in January of 2004 adopted the “Master plan for the electrical system on the Gila River Reservation utilizing the Colorado River Storage Project (CRSP) hydroelectric power allocation. The tribal utility has a pending proposal with the Bureau of Indian Affairs for management of the SCIP. The utility acquires wholesale power from Salt River Project and from Western Area Power Administration. Power is resold under eight different published rates.

The utility has four published goals:

To own and operate the electrical distribution system serving the entire Gila River Indian Community

To actively oversee and be directly involved in operating the electrical transmission systems located on the Gila River Indian Community

To explore electrical generation opportunities within the community, given the community’s strategic location

To develop a plan and methodology for the allocation of CRSP preference power.

Website:

www.gricua.netSlide7

*Mohegan Tribal Utility Authority

The Mohegan Tribal Utility Authority in Uncasville, CT was formed in 1995 to serve the reservation’s electricity and natural gas loads. The utility is a member of the Connecticut Municipal Electric Energy Cooperative, a publicly directed joint action supply agency that is responsible for financing, acquisition and construction of generation resources and implementation of power supply contracts for members.The utility has been instrumental in the creation of an award-winning Integrated Pollution Prevention Team, a Sustainable Energy Team, and a Mohegan Green Building Team. The Utility Authority kept pace with the reservation's explosive growth during the expansion of the Casino and hotel. The development of the Fort Hill substation and the installation of environmentally-friendly fuel cells ensure reliable power for the reservation. In addition, the Tribe brokered cooperation among several surrounding cities and towns to develop a mutual plan to share water as the area continues to grow.

Website:

www.mohegan.nsn.us

/Government/departmentsSlide8

Rock Industries (formerly Standing Rock Utilities and Telecommunications)

The Standing Rock Sioux Tribe began considering its utility options in the 1990s.  The tribe, through its tribal enterprise, now provides propane service and telecommunications services and shares electric utility responsibilities for some of the largest power users on the reservation with Mor-Gra- Sou Electric Cooperative, Inc.  TheTribe entered into a bill crediting arrangement with WAPA and Mor-Gra

-

Sou

Electric Cooperative, Inc., one of the three existing distribution utilities.  The tribe, through a master meter agreement provides billing and customer services to certain customers on the reservation, while the original utility continues to physically supply electricity.

Rock Industries is now also a tribally owned 8(a) company that operates a precision manufacturing facility with US Department of Defense contracts.

Website: http://

www.standingrocktelecom.comSlide9

Umpqua Indian Utility Cooperative

The goal in establishing the Umpqua Indian Utility Corporative (UIUC) was to create cost savings for the Cow Creek Band of Umpqua Tribe of Indians. By taking responsibility for its own electrical infrastructure, the Tribe determined it could minimize its costs, protect and exercise its sovereign status, and diversify its own and other local business interests. On October 1, 2001, UIUC began the purchase and transmission of about 2.5 megawatts of power from the Bonneville Power Administration ("BPA") for distribution to the Tribe’s Seven Feathers Hotel & Casino Resort complex and the Seven Feathers Truck & Travel Center.  The Tribe passed a Tribal Utility Code to accomplish several ends: To legally form, manage and operate the utility; and to set its rate setting structure within the Cow Creek Government; to set rules for acquisition of the existing distribution system; to create utility standards and a utility responsibility for its service area; to clarify sovereign immunity issues so BPA would have legal recourse against the Tribe, and to clarify sovereign issues so UIUC would have legal authority to pursue claims. The Tribe also created a condemnation code to acquire utility facilities.

UIUC now serves load at tribal facilities and at third party facilities operating on the reservation near Roseville, Oregon. Operations and maintenance is done by tribal staff and through engineering contracts. UIUC is a member of the Oregon Rural Electric Cooperative Association. UIUC also provides energy efficiency and conservation services to its customers.

Website: http://

www.cowcreek.com

/economic-development/tribal-businessesSlide10

Yakama Power

 Yakama Power, headquartered in Toppenish, Washington, signed its initial contracts to purchase wholesale power and transmission from BPA in July, 2000. On January 25, 2006, the Washington State Utilities and Transportation Commission approved the transfer of distribution assets from PacifiCorp to Yakama Power, and they began serving electricity to retail customers.  Yakama Power initially contracted with Benton County Rural Electric Association, who serves some loads on the Yakama Reservation for assistance with operation and maintenance of their facilities. Yakama Power now has its own line crews and equipment, and participates in union apprenticeship and journeymen programs.

Yakama Power’s Board of Directors consists of seven of the 14 Tribal Council Members. Yakama Power is instrumental in the Yakama Nation’s efforts to provide energy related development and partnerships.

Yakama Power’s mission

to provide affordable and reliable electric energy that will enhance the quality of life for its consumers and provide a stable, safe and competitive work environment for its employees. This mission will be accomplished by having devoted employees and by the use of sound management, operating, engineering and financial practices.

In 2007, the Yakama Nation entered into a settlement with Grant County Public Utility District regarding the relicensing of two Columbia River dams, known as the Priest Rapids Project

. Yakama

Power now also operates the Wapato Irrigation Project, which was built by the Bureau of Indian Affairs for seasonal irrigation, and which has 1,100 miles of canals, generators, control systems, transformers and a 34.5 kV transmission line.

Website:

http://www.yakamapower.com/