Each CMPAS member owns a unique portfolio based on load profile, legacy resources, assets and other characteristics. The table below summarizes how each member satisfies power supply requirements for their community.
While the table illustrates the power supply contracts that satisfy each utility’s exclusive obligation to serve their community (service territory), it also shows the various power supply contracts CMPAS has with members. Since CMPAS’s business model separates the purchase of power from related support services, utilities can participate on a partial or full-requirements basis to meet the power needs of their community.
This project-oriented framework offers flexibility and choice as utilities subscribe to separate contracts for power supply, transmission, and/or support services. For the power supply, members and affiliates voluntarily enter into downstream contracts as they subscribe to projects or joint purchases. The agency contracts for specific resources for each member in a downstream subscription and can often simultaneously aggregate project subscriptions or an equivalent quantity in an upstream ownership, partnership, or power purchase agreement. Unlike full requirement joint action agencies, CMPAS only procures power supply for secured downstream subscription contracts.
The Agency membership contract is the centerpiece of all of the contracts at CMPAS. All full and partial requirements members receive customized resource planning, due diligence checks, and risk analysis and can count on the specialized industry expertise of CMPAS staff to provide the necessary power supply and transmission support. Membership also establishes preference rights for utilities who choose to participate in future agency-sponsored projects and provides access to a forum of peer utilities facing similar challenges.
Agency membership and support service contracts are available for five-year terms with a corresponding mandatory five-year notice of termination. Power supply obligations are separate from membership and extend the term of the underlying contract. For CMPAS sponsored projects, participants are required to designate CMPAS as their MISO transmission owner, MISO market participant, and scheduling agent.
Although membership does not obligate a utility to procure power supply or services from the agency, the base membership fee incorporates each member’s allocated share of the agency’s administrative budget for the planning function. The budget for planning is approved by the CMPAS board of directors annually, and each utility member has a seat and one vote on the board.
Agency Project Participation
Project contracts have terms greater than five years. Typically, they represent terms of 10 to 30 years, an asset’s life, or a bond obligation. Utilities voluntarily subscribe to power supply or transmission projects by entering into a separate downstream contract with CMPAS.
CMPAS passes all power supply purchases procured for participants at a cost to them plus a fee for developing and administrating the project. Furthermore, CMPAS segregates its operating costs into appropriate functional accounts so that members contracting for services only pay for and share the cost of those services.
Supplemental Energy Purchases
Sometimes a utility needs a short-term supplemental purchase to satisfy their portfolio needs. Typically, supplemental contracts represent terms of five years or less, and utilities can contract for supplemental energy purchases from CMPAS by executing an Additional Services Agreement - Schedule C. For supplemental energy purchase agreements greater than 12 months, members retain the right to preapprove the purchase by executing a Transaction Confirmation Specification Sheet. The agency aggregates downstream supplemental subscription amounts and procures an equivalent amount in an upstream power purchase agreement.
Surplus Capacity and Energy Sales
On a short to mid-term basis, members can also execute an Additional Services Agreement – Schedule B that directs the Agency to sell their utility’s excess capacity and energy bilaterally. Members also execute a Confirmation Specifications Sheet to indicate the terms of these sales.
MISO Related Services
Members can designate CMPAS as their MISO agent to make transactions in the MISO market on their behalf.
MISO Market Participant Agreement
This agreement designates CMPAS as the utility’s market participant (MP). Under this arrangement, CMPAS makes MISO transactions on the utility’s behalf under the agency’s MISO market registration. Since CMPAS is financially responsible for the transactions, utilities must provide appropriate credit security to CMPAS. A utility must also provide CMPAS with the appropriate working cash to cover market transactions over a four week period. Although MISO bills CMPAS weekly, CMPAS only bills utilities once a month for this service.
MISO Scheduling Agreement
Utilities executing the scheduling agreement (SA) choose to accept full financial responsibility as a MISO market participant and use their individually assigned MISO market registration for transactions that CMPAS makes on their behalf. Utilities must provide MISO with credit security directly and will be billed weekly by MISO.
MISO Transmission Asset Assignment
Utilities assign their locally-owned transmission assets to CMPAS so that it can file for tariff recovery of the specified assets
MISO Transmission Owner Agreements
Utilities designate CMPAS as their MISO Transmission Owner (TO) agent as participants in agency-sponsored projects.