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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: November 16, 2012 ITEM NO: 10 SUBJECT: RENEWABLE POWER PURCHASE AGREEMENT BETWEEN WKN WAGNER, LLC AND RIVERSIDE PUBLIC UTILITIES ISSUE: That the Board of Public Utilities consider approval of the Renewable Power Purchase Agreement ("PPA") between WKN Wagner, LLC ("WKN Wagner") and the City of Riverside for up to 6 megawatts ("MW") of renewable wind energy and Renewable Energy Credits from the WKN Wagner wind project in Palm Springs, California. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve the 20-year Renewable Power Purchase Agreement between WKN Wagner, LLC and the City of Riverside to provide renewable wind energy and Renewable Energy Credits from the WKN Wagner wind project in Palm Springs, California; 2. Authorize the City Manager, or his designee, to execute the Renewable Power Purchase Agreement; 3. Authorize the City Manager, or his designee, to execute any future amendments to the Renewable Power Purchase Agreement that do not increase the cost of this project and are consistent with the established policies of the City Council; 4. Authorize the Public Utilities General Manager, or his designee, to execute any documents necessary to administer the Renewable Power Purchase Agreement that are consistent with the established policies of the City Council; and 5. Authorize the City Manager, or his designee, to terminate the Renewable Power Purchase Agreement in accord with the Renewable Power Purchase Agreement if the project is no longer viable or in default and the default is not cured within the timeframe specified in the Renewable Power Purchase Agreement. BACKGROUND: In 2002, California Senate Bill ("SB") 1078 required utilities to adopt a Renewables Standard, Investor Owned Utilities ("IOUs") were required to adopt specified goals of renewable resource procurement, while goveming bodies of municipally-owned utilities such as Riverside Public Utilities ("RPU") were permitted to adopt their own goals that recognized the intent of the legislation. IOUs were required to procure 20% of their retail customer needs using renewable resources by 2017. California SB 107, enacted in 2006, accelerated the renewable procurement goal for IOUs to 20% by 2010.