2003 AGN JUN 03 I10 - Laserfiche WebLink

Browse Search

Actual metered output of one megawatt of wind-powered energy (or alternate source) will be approximately 8760 mwh per year. This delivery will be firm in Southern California for all hours during the year except true-up period. The effective term of this agreement will be twenty years with an option to extend for another five years. It should be noted that PPM requires a minimum subscription of 10-megawatt firm from all participating SCPPA members combined in order to make this project viable. The contract will not be executed by PPM without this minimum subscription. At present, the subscription reached to 15-megawatt firm from all participating SCPPA members. ALTERNATIVES: The City has an option to reject the proposal and review other alternatives. FISCAL IMPACT: The firmed wind energy product, including all environmental attributes, is delivered at a fixed price of $53.50/mwh or 5.35¢/kWh, without escalation over the term. The City's average purchase power cost for the fiscal year 2001-02 is 6.02¢/kWh. Colton's annual cost for the expected average output of 8,760 mwh is $468,660. To the extent such funds are available, Colton may opt to offset some or all of any premium cost by applying to Public Benefit Charges. There are sufficient Public Benefit Funds budgeted within the FY 2003-04 annual budget to finance above average cost of the purchase power associated with the proposed wind energy agreement. In addition to the proposed wind energy agreement, Colton currently receives 1.2 MW of renewable energy from its contract with Landfill Gas Power Generation facility in Colton, and another 2 MW of hydroelectric energy from Hoover. ENVIRONMENTAL IMPACT: Positive impact to the environment may occur since the subject contracts will provide wind powered electrical energy, which is clean renewable resource. RECOMMENDATION: It is recommended that the City Council authorize the Electric Utility Director to enter into contracts with PPM Energy, Inc. ("PPM"), for the purchase of wind powered electrical energy associated with one megawatt firm of the High Winds wind generation facility currently under construction in Solano County, California. The City's share will be 2.06% of the total plant output. It is further recommended that the City Council adopt RPS in fulfiliment of SB 1078 requirements. Report Prepared by: Nitin Modi, Electrical Engineering/ Power Resources Manager REVIEW TEAM ONLY CityAttorney: Ii�.mQlt�nO�� FinanceDirector: ,li ,��.eA�Ui�s(I� Assistant City Manager: OTHER: