08-08-2016 BPU RPT 11 - Laserfiche WebLink

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Wni R tvtaUv ii WON PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: AUGUST 8, 2016 ITEM NO: 11 SUBJECT: APPROVE A FIFTY -YEAR ELECTRIC SERVICE CONTRACT AND AN AMENDED AND RESTATED IMPLEMENTATION AGREEMENT FOR 30 MW OF HYDROELECTRIC POWER FROM THE BOULDER CANYON (E.G. HOOVER DAM) PROJECT WITH WESTERN AREA POWER ADMINISTRATION, BUREAU OF RECLAMATION — ESTIMATED $800,000 FIRST YEAR COST ISSUES: Recommend that the City Council approve the Electric Service Contract between United States Department of Energy Western Area Power Administration and the City of Riverside for the Boulder Canyon Project; and approve the Amended and Restated Implementation Agreement amongst the United States Department of Energy Western Area Power Administration, the Bureau of Reclamation and the City of Riverside. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve the Electric Service Contract between the United States Department of Energy Western Area Power Administration and City of Riverside to continue the electric service from the Boulder Canyon Project (Hoover Dam) from October 1, 2017, through September 30, 2067; 2. Approve the Implementation Agreement amongst the United States Department of Energy Western Area Power Administration, Bureau of Reclamation, and City of Riverside; 3. Authorize the City Manager or his designee, to execute any documents necessary to administer the Electric Service Contract and the Implementation Agreement; and 4. Authorize the City Manager or his designee to terminate the Electric Service Contract for circumstances provided in the Agreement. BACKGROUND: Boulder Canyon Project Act of 1928 (1928 Act): In 1928, Congress passed the 1928 Act, authorizing construction of the Boulder Canyon Project (e.g. the Hoover Dam and Power Plant). Construction began in 1931 and the plant became operational in 1937. Southern California Edison and the Los Angeles Department of Water and Power jointly operated the project for the 50 year term of the original Electric Service Contract (ESC) that expired in 1987. The project originally consisted of 9 contractors.