2002 AGN DEC 03 I07 - Laserfiche WebLink

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Item #7 CITY OF COLTON AGENDA REPORT For the City Council Meeting of December 3, 2002 TO: HONORABLE MAYOR AND CITY COUNCIL APPROVAL: DARYL PARRISH, CITY MANAGER FROM: THOMAS K. CLARKE, ELECTRIC UTILITY DIRECTO SUBJECT: Approval of Purchase Power Contract With NM Colton Genco LLC for 1.2 MW Landfill Gas Electric Generation Project in Colton DATE: November 25, 2002 BACKGROUND: At the present time, NM Colton Genco LLC (Genco) has a contractual arrangement to use the methane gas that is flared and wasted. Genco is planning to build a 1.2 MW landfill gas electric generating plant in Colton. The project is expected to be completed by June 2003 and ready for interconnection with our distribution system thereafter. Further, Genco has also acquired the necessary permit to start construction on the Colton landfill site. Wind, solar, geothermal, biomass, and landfill gas are all qualified for the renewable project. The solar and landfill gas are the only locally visible options in the City. At present, the City has a photovoltaic carport at the corporate yard which is 20 KW. The City's participation in the Magnolia Power Project and the Agua Mansa Power Plant generation along with our ownership interests are sufficient to meet our present load demand of 70 MW. DISCUSSION/ANALYSIS: The state has adopted a Renewable Portfolio Standard (Senate Bill 1078) that mandates utilities to purchase a portion of their energy through renewable sources. Even though the municipals are exempt from the state standard at present, it is prudent for the City of Colton to participate at some level in these projects. The Colton Utility Commission has also shown an interest in this project and similar other projects. At present, there is a tremendous interest in the utility industry in participation in renewable projects. A project in the City of Colton will show our commitment and interest in renewable technology even though it is a small portion of our resource portfolio. Further, this will be an additional fuel mix to provide diversity in our resource portfolio.