11-15-2013 BPU RPT 08 - Laserfiche WebLink

Home

WATER £ k ERGS" . RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: November 15, 2013 ITEM NO: 8 SUBJECT: POWER PURCHASE AGREEMENT BETWEEN FPL ENERGY CABAZON WIND AND THE CITY OF RIVERSIDE—CABAZON WIND ENERGY PROJECT ISSUE: The item for Board of Public Utilities consideration is the approval of the Power Purchase Agreement (PPA) between FPL Energy Cabazon Wind, LLC and the City of Riverside for 39 megawatt (MW) of renewable wind energy from the Cabazon Wind Energy Center near Cabazon, California. RECOMMENDATIONS: That the Board of Public Utilities conceptually approve and recommend that the City Council: 1. Approve the ten-year PPA between FPL Energy Cabazon Wind, LLC and the City of Riverside to provide renewable wind energy and Renewable Energy Credits from the Cabazon Wind Energy Center in Cabazon, California; 2. Authorize the City Manager, or his designee, to execute the PPA, as well as any future amendments or extensions to the PPA under terms and conditions substantially similar or superior to this 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 (e.g., Project does not complete all the necessary certification with the CAISO and the CEC 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 investor owned utilities (IOUs). In 2012, California's Senate Bill (SB) X1-2, mandated that all electric utilities, including Riverside, procure increasing amounts of renewable power, primarily from in-state resources, during specific compliance periods, such that 33% of renewable resources serve Riverside's retail needs by December 31, 2020. To achieve these Renewable Portfolio Standards (RPS) goals, Riverside has successfully contracted with several renewable projects totaling 172 MW in the last two years and staff is continuously seeking out additional cost-effective renewable projects to serve its retail customers. In California, historically the failure rate of yet-to-be constructed renewable projects is about forty percent. Staff anticipates that not all Riverside Public Utilities (RPU) renewable projects under contract will be constructed.