06-19-2015 BPU RPT 07 - Laserfiche WebLink

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W A T E R 1 E N E R G Y 1 L I F E V CTVor RIERSIDE PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: JUNE 19, 2015 ITEM NO: 7 SUBJECT: POWER SALES AGREEMENTS BETWEEN SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY AND THE CITY OF RIVERSIDE — SPOWER'S ANTELOPE DSR SOLAR PHOTOVOLTAIC PROJECT ISSUE: The issue for Board of Public Utilities (Board) consideration is the approval of the Power Sales Agreement (PSA) between the Southern California Public Power Authority (SCPPA) and the City of Riverside (City) for sPower's Antelope DSR Solar Photovoltaic (PV) project. RECOMMENDATIONS: That the Board recommend that the City Council: 1. Approve the 20 -year PSA between SCPPA and the City to provide renewable solar PV energy and Renewable Energy Credits from sPower's Antelope DSR Solar PV Project; 2. Authorize the City Manager or his designee to execute the PSA, as well as future extensions and purchase and /or storage options associated with the PSAs under terms and conditions substantially similar or superior to this PSA; 3. Authorize the City Manager or his designee to execute any documents necessary to administer the PSA; and 4. Authorize the City Manager or his designee to terminate the PSA for circumstances provided in the PSA. BACKGROUND: In 2012 California Senate Bill (SB) X1 -2 mandated that all electric utilities, including Riverside Public Utilities (RPU), procure increasing amounts of renewable power primarily from in -state resources to serve its retail needs during specific compliance periods. RPU's current Renewable Portfolio Standard (RPS) requires that it supply 20 %, 25% and 33% of retail energy needs using renewable resources by 2010, 2015 and 2020, respectively. On April 29, 2015 the Governor of California issued Executive Order B -30 -15 establishing a Greenhouse Gas (GHG) reduction target of 40% below 1990 levels by 2030, including among other things, increasing the RPS targets to 50% by 2030. Several bills are being considered by the state legislature to codify the increased RPS mandate. The City has been very supportive of the existing renewable targets set by the State and is committed to serving its retail energy requirement using more renewable energy. In order to satisfy the current RPS targets, while anticipating more stringent RPS requirements in the future, RPU continues to explore additional cost - effective, renewable energy procurement opportunities.