09-06-2013 BPU RPT 07 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: September 6, 2013 ITEM NO: 7 SUBJECT: POWER SALES AGREEMENTS BETWEEN SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY AND THE CITY OF RIVERSIDE— FIRST SOLAR'S KINGBIRD SOLAR PHOTOVOLTAIC PROJECT ISSUE: The item for Board of Public Utilities consideration is the conceptual approval of the Power Sales Agreement between Southern California Public Power Authority (SCPPA) and the City of Riverside for the First Solar's Kingbird Solar Photovoltaic project. RECOMMENDATIONS: That the Board of Public Utilities approve and recommend that the City Council: 1. Approve the 20-year Power Sales Agreement (PSA) between SCPPA and the City of Riverside to provide renewable solar photovoltaic energy and Renewable Energy Credits from the First Solar Kingbird Solar Photovoltaic Project; 2. Authorize the City Manager, or his designee, to execute any future amendments to the PSA under terms and conditions substantially similar or superior to these PSA; 3. Authorize the Public Utilities General 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 PSA for circumstances provided in the PSA (e.g., Project is no longer viable, or the annual performance standard is not met). BACKGROUND: Riverside has been very supportive of the use of renewable energy to serve the retail energy requirements and has historically adopted more stringent requirements than those imposed on IOUs. Riverside Public Utilities' (RPU) 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. In 2012, California's Senate Bill (SB) X1-2, mandated that all electric utilities, including RPU, procure increasing amounts of renewable power, primarily from in-state resources, to serve its retail needs during specific compliance periods. Such targets must reach 33% renewable resources no later than calendar year (CY) 2020. To achieve these RPS goals, RPU has successfully contracted with several renewable projects in the last two years and staff is continuously seeking out additional viable renewable projects. Three weeks ago, First Solar approached SCPPA with a unique opportunity - the Kingbird Solar Photovoltaic project (Project), a 20 megawatt (MW) solar photovoltaic (PV) project located in Kern County. SCPPA proposes to enter into a Power Purchase Agreements (PPA) with First Solar for 20 MW of the Kingbird project on