08-27-2018 BPU RPT 16 - Laserfiche WebLink

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WATER I E H E R R V ! l 1 F E ® RIVERSIDE PUBLIC UTILITIES III,& Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: AUGUST 27, 2018 ITEM NO: 16 SUBJECT: ALTERNATIVE REPOWERING OF THE INTERMOUNTAIN POWER PROJECT AND SENATE BILL 1368 COMPLIANCE FILING TO THE CALIFORNIA ENERGY COMMISSION FOR PARTICIPATION IN THE INTERMOUNTAIN POWER PROJECT ALTERNATIVE REPOWERING ISSUE: Recommend that the City Council approve an Alternative Repowering of the Intermountain Power Project and approve the Senate Bill 1368 Compliance Filing to the California Energy Commission for participation in the Intermountain Power Project Alternative Repowering. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve an "Alternative Repowering" for the Intermountain Power Project; 2. Approve the Senate Bill 1368 Compliance Filing package to the California Energy Commission for potential participation in the Alternative Repowering of Intermountain Power Project; 3. Approve amendments to the Intermountain Power Project Second Amendatory Power Sales Contract and the Renewal Power Sales Contract; and 4. Authorize the City Manager or his designee to execute any documents necessary to complete and submit the Compliance Filing and to take all actions which they deem necessary, appropriate, or advisable to consummate the transactions contemplated by the Intermountain Power Project Second Amendatory Power Sales Contract and the Renewal Power Sales Contract. BACKGROUND: In 1980, Riverside entered into the current 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. 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: the cities of Anaheim, Burbank, Glendale, Los Angeles, Pasadena, and Riverside. Riverside's current entitlement share of IPP generation is 7.617%, or approximately 136 MW per year. Riverside's current entitlement in the Southern Transmission System is 10.164%, or approximately 244 MW per year. The City of Los Angeles Department of Water and Power (LADWP) is the Operating Agent for the generating and transmission facilities. The current IPP Power Sales Contract will terminate on June 15, 2027. Page 360