09-06-2013 BPU RPT 08 - Laserfiche WebLink

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W A T E R E N E R G Y L I F E =` RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: September 6, 2013 ITEM NO: 8 SUBJECT: POWER SALES AGREEMENTS BETWEEN SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY AND THE CITY OF RIVERSIDE — RECURRENT ENERGY'S CLEARWATER AND COLUMBIA TWO SOLAR PHOTOVOLTAIC PROJECTS ISSUE: The item for Board of Public Utilities consideration is the conceptual approval of the Power Sales Agreements between Southern California Public Power Authority ( SCPPA) and the City of Riverside for the Recurrent Energy's Clearwater and Columbia Two Solar Photovoltaic projects. RECOMMENDATIONS: That the Board of Public Utilities approve and recommend that the City Council: Approve the 20 -year Power Sales Agreements (PSAs) between SCPPA and the City of Riverside to provide renewable solar photovoltaic energy and Renewable Energy Credits from Recurrent Energy's Clearwater and Columbia Two Solar Photovoltaic projects; 2. Authorize the City Manager, or his designee, to execute any future amendments to the PSAs under terms and conditions substantially similar or superior to these PSAs; 3. Authorize the Public Utilities General Manager, or his designee. to execute any documents necessary to administer the PSAs 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 PSAs (e.g., Projects are 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, Recurrent Energy approached SCPPA with a unique opportunity - the Clearwater and Columbia Two Solar PV projects (Projects), a combined 35 megawatt (MW) solar photovoltaic (PV) projects located in Kern County. SCPPA proposes to enter into a Power Purchase Agreements (PPA) with Recurrent Energy for a combined 35 MW of the Projects on behalf of the participating SCPPA members