2004 AGN AUG 03 I18 - Laserfiche WebLink

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CITY OF COLTON Item #18 AGENDA REPORT FOR COUNCIL MEETING OF AUGUST 03, 2004 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Jeannette Olko, Electric Utility General Manager q.0., SUBJECT: Request for Approval of Estoppel Certificate for NEO Corporation DATE: July 26, 2004 BACKGROUND: The City of Colton and NM Colton Genco LLC entered into a Power Purchase Agreement for 1.26 MW of power on November 15, 2002. The power is produced from a landfill gas electric generating unit located at the Colton Landfill at 850 Tropica Ranch Rd. The power received from this landfill gas -to -energy project helps to fulfill part of the City's requirement for renewable energy resources as stated in the Renewable Portfolio Standard approved by Council in October 2003. DISCUSSION/ANALYSIS: NM Colton Genco LLC is a subsidiary of NEO Corporation. The parent company of NEO Corporation, NRG Energy, Inc., decided to sell the landfill gas assets owned by NEO Corporation after emerging from bankruptcy. NEO Corporation selected a buyer for its landfill gas -to -energy projects that has substantial experience and knowledge in the field of landfill gas -to -energy and has significant financial and operation resources to dedicate to the projects. The buyer selected is Algonquin Power/Cambrian Pacific Genco LLC and Across America LFG LLC. At this time, NEO Corporation and Algonquin Power/Cambrian Pacific Genco LLC is requesting that the City approve and sign an Estoppel Certificate certifying that the City agrees to the change of ownership in NM Colton Genco LLC. FINANCIAL IMPACT: There is no financial impact to the City. All terms and conditions of the existing Power Purchase Agreement will remain in effect. ENVIRONMENTAL IMPACT: None. CONFLICT OF INTEREST — Gift Disclosure Requirements NEO Corporation 3650 IDS Center 80 So. a St. Minneapolis, MN Michael Carroll, Vice President Contact: Jerry Peterson, Manager of Operations