03-11-2019 BPU RPT 13 - Laserfiche WebLink

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WATER I ENERGY I LIF E P U B L I C U I I I I I I F S BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: MARCH 11, 2019 ITEM NO: 13 SUBJECT: TERMINATION OF THE RENEWAL POWER SALES CONTRACT BETWEEN INTERMOUNTAIN POWER AGENCY AND CITY OF RIVERSIDE EFFECTIVE NOVEMBER 1, 2019 AND EXIT FROM INTERMOUNTAIN POWER PROJECT REPOWER PROJECT UPON EXPIRATION DATE OF CURRENT POWER SALES CONTRACT ON JUNE 15, 2027 ISSUE: Recommend that the City Council authorize the termination of the Renewal Power Sales Contract between the Intermountain Power Agency and the City of Riverside effective November 1, 2019 and the City of Riverside's exit from the Intermountain Power Project Repower Project upon the expiration date of the current Power Sales Contract on June 15, 2027. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Authorize termination of the Renewal Power Sales Contract between the Intermountain Power Agency and the City of Riverside effective November 1, 2019; 2. Authorize the City of Riverside's exit from the Intermountain Power Project Repower Project upon the expiration date of the current Power Sales Contract on June 15, 2027; and 3. Authorize the City Manager, or designee, to provide written notice to the Intermountain Power Agency to terminate the Renewal Power Sales Contract between the Intermountain Power Agency and the City of Riverside, and execute any other documents as necessary to effectuate the termination of the contract effective November 1, 2019 and exit from the Intermountain Power Project Repower Project upon the expiration date of the current Power Sales Contract on June 15, 2027. BACKGROUND: In 1980, the City of Riverside (Riverside) entered into the Intermountain Power Project (IPP) Power Sales Contract with the Intermountain Power Agency (IPA) for the purchase of baseload coal-fired electric power and the associated transmission services. IPP consists of 1,800 megawatts (MW) of coal generation located near Delta, Utah and two transmission lines, the Southern Transmission System and Northern Transmission System. Riverside's current entitlement share of IPP generation is 7.617%, or approximately 136 MW. Riverside's current entitlement in the Southern Transmission System is 10.164%, or approximately 244 MW. The Los Angeles Department of Water and Power (LADWP) is the Operating Agent for the generating and transmission facilities. The IPP Power Sales Contract terminates on June 15, 2027.