05-15-2015 BPU RPT 08 - Laserfiche WebLink

Home

W A I E R E N E R G Y I I F F RIVERSIDE PUBLIC UTILITIES WI& P U 6 L I{ U T I L I T I E S BOARD OF PUBLIC UTILITIES SUBJECT: INTERMOUNTAIN INTERMOUNTAIN (RIVERSIDE) ISSUE: The item for Board of Public Utilities (IPP) renewal agreements between renewal subscription process. RECOMMENDATIONS: Board Memorandum DATE: MAY 15, 2015 ITEM NO: 8 POWER PROJECT RENEWAL AGREEMENTS BETWEEN POWER AGENCY (IPA) AND THE CITY OF RIVERSIDE consideration is the approval of the Intermountain Power Project IPA and Riverside and the authorization to participate in the IPP That the Board of Public Utilities recommend that the City Council: 1. Find that the approval of these agreements are categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Sections 15302 and 15061(b)(3) of the CEQA Guidelines; 2. Approve the Second Amendatory Power Sales Contract (2APSC) between IPA and Riverside; 3. Authorize the City Manager, or his designee, to execute the 2APSC under the terms and conditions specified in the 2APSC; 4. Authorize the City Manager or his designee(s) to participate in the IPP Renewal Project (RP) subscription process administered by the IPA for a project participation up to 5% or approximately 60 MW (assuming cost effectiveness in comparison to other similar resources); 5. Authorize the City Manager, or his designee to execute the Renewal Power Sales Contract (RPSC) and as applicable, the Renewal Excess Power Sales Agreement (REPSA) throughout the RP subscription process and upon the completion of IPP RP subscription process, report back to City Council and the Board of Public Utilities the final subscription result of the Renewal Project; and 6. Authorize the City Manager, or his designee, to execute any documents necessary to administer the 2APSC, the RPSC and the REPSA, collectively the IPP Renewal Agreements ( "Renewal Agreements ") that are consistent with the policies established by the City Council. BACKGROUND: In 1980, Riverside entered into the current IPP Power Sales Contract (PSC) with the Intermountain Power Agency (IPA) for the purchase of baseload coal generated electric power and the associated transmission services from the IPP. IPA is a Utah public entity which is the owner of IPP The IPP consists of three project components: • Two 900 megawatt (MW) coal generating units located in Delta, Utah with a combined 1,800 MW capacity. There are thirty six (36) participants in the IPP, six from California (Riverside, Los Angeles, Anaheim, Burbank, Glendale and Pasadena)and thirty from Utah. Riverside's current entitlement share of the IPP generation is 7.617% or approximately one hundred thirty six MW;