06-19-2015 BPU RPT 08 - 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: 8 SUBJECT: POWER PURCHASE AGREEMENT BETWEEN IBERDROLA RENEWABLES, LLC AND THE CITY OF RIVERSIDE ISSUE: The issue for Board of Public Utilities (Board) consideration is the approval of the Power Purchase Agreement (PPA) between Iberdrola Renewables, LLC (Iberdrola) and the City of Riverside (City) for the delivery of seasonal (June through October) peaking renewable energy. RECOMMENDATIONS: That the Board recommend that the City Council: 1. Approve the 11 -year PPA between Iberdrola and the City to provide Portfolio Content Category 1 (PCC -1) and Portfolio Content Category 2 (PCC -2) project energy and associated renewable energy credits (RECs) from Iberdrola's pool of Pacific Northwest wind resources; 2. Authorize the City Manager or his designee to execute the PPA; 3. Authorize the City Manager or his designee to execute any documents necessary to administer the PPA; and 4. Authorize the City Manager or his designee to terminate the PPA for circumstances provided in the PPA. BACKGROUND: In 2012 California's 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 at least 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.