1992 AGN APR 07 I07 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For Council Meeting of April 7, 1992 TO: Honorable Mayor and City Council FROM: Gale A. Drews, Electric Utility Director SUBJECT: AUTHORIZATION FOR CITY MANAGER TO SIGN POWER SALES Date: March 30, 1992 AGREEMENT BETWEEN THE CITIES OF AZUSA, BANNING, COLTON AND CITIES OF BURBANK, GLENDALE, PASADENA BACKGROUND The Power Sale Agreement Between Cities of Azusa, Banning, Colton and Cities of Burbank, Glendale, Pasadena is for firm capacity of 14 Megawatts, of which the City receives 5 Megawatts and associated energy to serve a portion of the City's base load requirements. The terms of this agreement make it effective on June 1, 1992, through December 31, 1998, with a stipulation of a four year termination notice. The Department is terminating the Power Sale Agreement with PG&E for 5 Megawatts and associated energy ending at midnight on May 31, 1992. STATEMENT OF THE PROBLEM PG&E rates are increasing due to the rise in fuel. The Cities found another source at a lower rate and longer term with no minimum -take requirement. ALTERNATIVES Purchase from Southern California Edison at a higher price which would be two times the capacity cost for the first year of this contract. FINANCIAL IMPACT The cost of PG&E increased to $7.50 KW/month and energy considerably higher. The cost in the new agreement is $6.00 KW/month which is a savings of $7,500 per month, $90,000 for the first year. The energy savings can not be calculated at this time due to unknown amounts of energy needed. ENVIRONMENTAL IMPACT None. RECOMMENDATION Staff recommends Council approve the Power Sales Agreement Between Cities of Azusa, Banning, Colton and Cities of Burbank, Glendale, Pasadena and designate the City Manager to sign all necessary agreements to bring the capacity and energy into the City's electrical system. Agreement iWfilein 7C1r2ek'sicefor your review. CONCURRENCE Mark Lewis City Manager Attachments: Page 1 of 1 Item No. 7