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W A T E R E N E R G Y L I F E <br />P U B L I C U T I L I T I E S <br />RIVERSIDE PUBLIC UTILITIES <br />BOARD OF PUBLIC UTILITIES <br />Board Memorandum <br />DATE: NOVEMBER 9, 2020 <br />ITEM NO: 9 <br />SUBJECT: POWER SALES AGREEMENT WITH SOUTHERN CALIFORNIA PUBLIC <br />POWER AUTHORITY FOR THE COSO GEOTHERMAL ENERGY PROJECT <br />FOR A TERM OF TWENTY YEARS FOR AN ESTIMATED AVERAGE ANNUAL <br />COST OF $6,000,000 FOR CONTRACT YEARS ONE THROUGH FIVE AND <br />$18,000,000 FOR CONTRACT YEARS SIX THROUGH TWENTY <br />ISSUE: <br />Approve the Power Sales Agreement with Southern California Public Power Authority for the Coso <br />Geothermal Energy Project for a term of twenty years for an estimated average annual cost of <br />$6,000,000 for contract years one through five and $18,000,000 for contract years six through <br />twenty. <br />RECOMMENDATIONS: <br />That the Board of Public Utilities recommend that on December 14, 2020, the Land Use, <br />Sustainability, and Resilience Committee will hear this item for consideration and be asked to <br />recommend that the City Council: <br />Approve the Power Sales Agreement with Southern California Public Power Authority for <br />the Coso Geothermal Energy Project for a term of twenty years for an estimated average <br />annual cost of $6,000,000 for contract years one through five and $18,000,000 for contract <br />years six through twenty; and <br />2. Authorize the City Manager, or designee, to execute the Power Sales Agreement and all <br />documents necessary to administer the Agreement including the ability to make non <br />substantive changes, as well as to execute future amendments to the Power Sales <br />Agreement under terms and conditions substantially similar or superior to the Power Sales <br />Agreement or, if needed, to terminate the Power Sales Agreement in accordance with <br />Agreement terms and conditions. <br />LEGISLATIVE HISTORY: <br />In 2011, the California Renewable Energy Resources Act, Senate Bill (SB) X 1-2, was signed into <br />law by the Governor, which mandated that all electric utilities, including Riverside Public Utilities <br />(RPU), procure increasing amounts of renewable energy primarily from in-state resources to serve <br />its retail needs during specific compliance periods. SB X 1-2, which officially created the first set <br />