Operations Management

Operating Agent

Pursuant to the Power Sales Contracts, IPA appointed the Department as Project Manager and Operating Agent to construct, operate and maintain the Project in accordance with the Construction Management and Operating Agreement. Managerial, technical, administrative and clerical employees handle this responsibility in the Department’s Generation – External Section of its Power Operating and Maintenance Division. The Department has also engaged technical and management consultants to perform formal assessments of various Department and Intermountain Power Service Corporation (“IPSC”) organizations, which organizations are responsible for providing various management, operational and support functions to the Project. The formal assessments are conducted to provide assurance that those organizations: (i) are staffed appropriately; (ii) are properly organized; (iii) have good work practices and procedures; (iv) are sufficiently trained; and (v) communicate effectively with other organizations involved with the Project.

IPP Coordinating Committee

Pursuant to the Power Sales Contracts, the Coordinating Committee, among other functions, provides liaison between IPA and the Purchasers with respect to construction and operation of the Project; reviews, modifies and approves certain specified contracts; takes certain actions with respect to recommendations from the Department as Project Manager and Operating Agent; and makes recommendations to IPA regarding the financing of the Project. The Coordinating Committee also has the authority to review, modify and approve procedures formulated by the Project Manager and Operating Agent with respect to the construction and operation of the Project, budgets prepared by the Project Manager and Operating Agent, and all capital improvements proposed to be undertaken by IPA.

The Coordinating Committee consists of the Chairperson, who is a non-voting representative appointed by IPA, and representatives of the Purchasers or groups thereof. The Chairperson of the Coordinating Committee has discretion to schedule meetings, and must call meetings at the request of any member of the Committee.

Purchaser Represented


Voting Rights %
Los Angeles Department of Water and Power Paul Schultz 48.617%
City of Anaheim Dukku Lee 13.225%
City of Riverside Todd M. Corbin 7.617%
Utah Municipal Purchasers (except Murray City and Logan City) Eric Larsen 7.571%
Utah Cooperative Purchasers (except Moon Lake Electric Association, Inc. and Mt. Wheeler Power, Inc.) LaDel Laub 3.231%
City of Pasadena Gurcharan Bawa 4.409%
Murray City Blaine Haacke 4.000%
City of Burbank Dawn Roth Lindell 3.371%
Logan City Mark Montgomery 2.469%
Moon Lake Electric Association, Inc. Grant J. Earl 2.000%
Mt. Wheeler Power, Inc Kevin Robison 1.786%
City of Glendale Stephen Zurn 1.704%

IPA Finance Committee

The IPA Finance Committee approves the marketing plans and pricing of bond issues. The members of this committee also meet at least annually to discuss general investment strategies and to monitor investment results. In this capacity the Committee functions in a purely advisory manner, with no direct authority over the IPA financial portfolio, management or individual investment decisions. Current members include:

Voting Members

Blaine Haacke IPA Board
Bruce Rigby IPA Board
Eric Larsen IPA Board
Nick Tatton IPA Board
Allen Johnson IPA Board
Mark Montgomery IPA Board
Joel Eves IPA Board
Peter Huynh LADWP
Kimberly Wyman City of Riverside
Brian Beelner City of Anaheim

Budget Responsibilities

Annual Budget

The Power Sales Contracts require IPA to adopt an Annual Budget at least 30 days, but not more than 45 days, prior to the beginning of each Power Supply Year. Each such budget is to set forth a detailed estimate of the monthly power costs and all revenues, income or other funds to be applied to such costs, for such Power Supply Year. The Resolution requires IPA to review quarterly its estimates set forth in the Annual Budget for such Power Supply Year. In the event such estimates do not substantially correspond with actual revenues, operating expenses or other requirements, IPA must adopt an amended Annual Budget for the remainder of the Power Supply Year. IPA is required to adopt such an amended Annual Budget if there are at any time during the year extraordinary receipts or payment of unusual costs. The Department as Operating Agent prepares the Operating Budget and the IPP Coordinating Committee approves such Operating Budget. After ensuring all costs necessary to provide for debt service on outstanding indebtedness and other fiduciary requirements are included in the budget, the IPA Board adopts the Annual Budget, which incorporates the Operating Budget.


Operating revenues for the Project are derived from payments that the Purchasers are required to make to IPA under their respective Power Sales Contracts. The amounts charged to Purchasers under the Annual Budget consist of a fixed cost component, allocated among the Purchasers based upon their respective generation entitlement shares, billed monthly. A variable cost component is billed monthly, one month in arrears, which is allocated among the Purchasers based on the amount of energy each Purchaser receives. Pursuant to Resolution Section 712, IPA has covenanted that it:

“… shall at all times establish and collect rates and charges for the use of the capability of the Project or the sale of the output, capacity or service of the Project, as shall be required to provide Revenues at least sufficient in each Fiscal Year, together with other available funds, for the payment of the sum of:
(a) Operating Expenses during such Fiscal Year;
(b) An amount equal to the Aggregate Debt Service for such Fiscal Year;
(c) The amount, if any, to be paid during such Fiscal Year into the Debt Service Reserve Account in the Debt Service Fund;
(d) The amount, if any, to be paid during such Fiscal Year into the Subordinated Indebtedness Fund;
(e) The amount, if any, to be paid during such Fiscal Year into the Bond Anticipation Note Fund;
(f) All other charges or liens whatsoever payable out of Revenues during such Fiscal Year.”