01-28-2019 BPU RPT 06 - Laserfiche WebLink

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PJ A r F R F N F R c v L I F E RIVERSIDE PUBLIC UTILITIES W& Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: JANUARY 28, 2019 ITEM NO: 6 SUBJECT: AMENDMENT NUMBER ONE TO THE AMENDED AND RESTATED POWER PURCHASE AGREEMENT WITH WINTEC-PACIFIC SOLAR, LLC TO EXTEND THE TERM AN ADDITIONAL FIVE YEARS FOR A REDUCED PRICE OF $35.77 PER MEGAWATT -HOUR, OR APPROXIMATELY $150,000 PER YEAR ISSUE: Recommend that the City Council approve Amendment Number One to the Amended and Restated Power Purchase Agreement with Wintec-Pacific Solar, LLC to extend the term for an additional five years for a reduced price of $35.77 per megawatt -hour, or approximately $150,000 per year. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve Amendment Number One to the Amended and Restated Power Purchase Agreement with Wintec-Pacific Solar, LLC to provide renewable wind energy and renewable energy credits to the City for an additional five years at a reduced price of $35.77 per megawatt -hour; 2. Authorize the City Manager, or his designee, to execute this Amendment Number One to the Amended and Restated Power Purchase Agreement under the terms and conditions set forth within the Amendment; 3. Authorize the City Manager, or his designee, to execute any documents necessary to administer Amendment Number One to the Amended and Restated Power Purchase Agreement; and 4. Authorize the City Manager, or his designee, to terminate Amendment Number One to the Amended and Restated Power Purchase Agreement for circumstances provided in the Amendment. BACKGROUND: On January 28, 2003, in an effort to increase Riverside's portfolio share of renewable energy, the City Council approved a 15 -year Power Purchase Agreement with Wintec-Pacific Solar, LLC ("Wintec") for all of the energy generated by its wind -powered electric generating units located in the San Gorgonio Pass. The expected generation capacity was up to five (5) megawatts (MW); however, Wintec was only able to construct 1.32 MW of wind generation capability due to a competing wind project that diluted wind availability at the proposed site.