03-21-14 BPU RPT 11 - Laserfiche WebLink

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W A! V IK'. F MOB F k U 1i" I k F 't RIVERSIDE PUBLIC UTILITIES Board Mem• BOARD OF PUBLIC UTILITIES DATE: March 21, 2014 ITEM NO: 11 SUBJECT: AMENDMENT TO POWER SALES AGREEMENTS BETWEEN SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY AND THE CITY OF RIVERSIDE — SILVERADO PROJECTS ISSUE: The issue for Board of Public Utilities consideration is approval of the amendment to two Power Sales Agreements (PSAs) between Southern California Public Power Authority ( SCPPA) and the City of Riverside for two 20 megawatt (MW) solar photovoltaic (PV) projects. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve the amendment to two 25 -year PSAs between SCPPA and the City of Riverside to provide renewable solar PV energy and Renewable Energy Credits from the Silverado Solar PV Projects; 2. Authorize the City Manager, or his designee, to execute the Amended PSAs, as well as any future amendments or extensions to the PSAs under terms and conditions substantially similar or superior to these PSAs; 3. Authorize the City Manager, or his designee, to execute any documents necessary to administer the PSA that are consistent with the established policies by the City Council; and 4. Authorize the City Manager, or his designee, to terminate the PSAs for circumstances provided in the PSA. BACKGROUND: In fulfillment of Riverside's Renewable Portfolio Standard (RPS) goal and as mandated by the RPS law SB X1 -2, the Public Utilities Board and City Council approved two PSAs with SCPPA for Slverado's Summer Solar Project and Big Sky Project (Silverado Projects) on December 7, 2012 and January 8, 2013 respectively. In turn, SCPPA entered into two Power Purchase Agreements (PPAs) with Silverado on behalf of the SCPPA participants (Azusa, Pasadena and Riverside) for the Silverado Projects. The SCPPA PPAs are Appendix C to the PSAs. The Silverado Projects had commercial operational date of no later than December 31, 2015. In mid -2013, the California Independent System Operator ( CAISO) transferred operational control of certain transmission facilities back to Southern California Edison (SCE) in the Antelope Valley area. This impacted the interconnection of the Silverado Projects, resulting in unanticipated increased transmission costs estimated to be more than $20 million. This resulting change in the classification of interconnection facilities by the CAISO and SCE is not typical and could not have been anticipated by Silverado or by the SCPPA participants (Azusa, Pasadena and Riverside).