03-15-2013 BPU RPT 06 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: March 15, 2013 ITEM NO: 6 SUBJECT: TEQUESQUITE SOLAR PHOTOVOLTAIC PROJECT INTERCONNECTION REQUEST ISSUE: The item for Board of Public Utilities consideration is approval to submit a generation interconnection request to Southern California Edison Company ("SCE") for the Tequesquite Solar Photovoltaic ("PV") Project. RECOMMENDATION: That the Board of Public Utilities authorize staff to prepare and submit the generation interconnection request to Southern California Edison, including the $55,040 requisite payment, for the Tequesquite Solar PV Project by April 30, 2013, to begin the 18-24 month process for the requisite technical studies. BACKGROUND: On July 15, 2411 and September 27, 2411, the Board of Public Utilities and the City Council, respectively, approved the issuance of a Request for Proposal ("RFP") to construct the Tequesquite Solar Project. Riverside Public Utilities ("RPU") issued the first RFP in late 2411. On November 16, 2012, the Board of Public Utilities was updated that no contract was awarded due to significant changes in the pricing of solar power and the narrow financial structure of the first RFP. RPU staff issued a second RFP on December 17, 2412, to which ten proposals were received on February 15, 2013 and are now undergoing review and evaluation by staff. Contract negotiations should commence in April-June, with staffs recommendation to be presented to the Board and City Council in late summer. RPU's current electric interconnection agreement with SCE requires that RPU coordinate with SCE to enable them to conduct technical interconnection and system impact studies whenever there is a new generation interconnection to RPU's electric distribution system. Such studies are coordinated via SCE's Generation Interconnection Process ("GIP"). Currently, there are hundreds of generation interconnection requests pending with SCE; SCE only accepts new interconnection requests once a year, on or before April 30. Once the interconnection request is accepted by SCE, SCE then has 18-24 months to complete the necessary technical studies and determine if any new interconnection facilities will be required for the new projects. The Tequesquite Solar PV Project will be required to go through SCE's GIP process. The interconnection request consists of: 1. Interconnection request application 2. Non-refundable application fee of $54,440 plus $1,400 per megawatt ("MW") of the requested interconnection capacity. For the Tequesquite Solar PV Project, the total is $55,004. Due to the lengthy timeline for the technical studies, staff requests that the Board authorize submittal of an interconnection request to SCE prior to the selection of the project developer and the completion of negotiations of the power purchase agreement to avoid further delays in the project completion.