02-27-2017 BPU RPT 06 - Laserfiche WebLink

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Wni R tvtaUv ii == RIVERSIDE PUBLIC UTILITIES WON Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: FEBRUARY 27, 2017 ITEM NO: 6 SUBJECT: UPDATE ON THE PROCUREMENT OF ENERGY AND TRANSMISSION FROM THE INTERMOUNTAIN POWER PROJECT (IPP) REPOWER PROJECT ISSUE: Receive and recommend that the City Council receive an update on the procurement of energy and transmission from the Intermountain Power Project (IPP) Repower Project. RECOMMENDATIONS: That the Board of Public Utilities: 1. Receive an update on the procurement of energy and transmission from the Intermountain Power Project (IPP) Repower Project; and 2. Recommend that the City Council receive this update. BACKGROUND: In 1980, Riverside entered into the current IPP Power Sales Contract with the Intermountain Power Agency (IPA) for the purchase of baseload coal-fired electric power and the associated transmission services. The IPP project currently 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. There are 36 participants in IPP, including six from California (Riverside, Los Angeles, Anaheim, Burbank, Glendale and Pasadena). Riverside's current entitlement share of the IPP generation is 7.617% or approximately 136 MW. Riverside's current entitlement in Southern Transmission System transmission is 10.164% or approximately 244 MW. Los Angeles Department of Water and Power is the Operating Agent for the generating and transmission facilities. The current IPP Power Sales Contract will terminate on June 15, 2027. The City Council, as discussed herein, has authorized Riverside Public Utilities to participate in the repowering of IPP to non -coal generated energy. The IPP Repower Project is proposed as a natural gas fueled combined cycle plant of 1,200 MW. The estimated emission rate for the Repower Project is 800 lbs. of carbon dioxide per MW hour of generation, which is 27% lower than the State-wide goal of 1,100 lbs. per MW hour, established through Senate Bill 1368 in 2006. The anticipated commercial operation date for the Repower Project is July 1, 2025.