Title
Chief Administrative Office, Facilities Division, recommending the Board:
1) Authorize the Chair to sign Amendment I to Power Purchase Agreement Renewable Energy Self-Generation Bill Credit Transfer (PPA RES-BCT) 3853 to revise the rate structure and provide a clear mechanism to update Section 22.B, Notices; and
2) Authorize the Chair to sign Amendment I to Power Purchase Agreement Net Energy Metering (PPA NEM) 3931 to provide a clear mechanism to update Section 22.B, Notices.
FUNDING: Components of the Power Purchase Agreements and related Cost Reimbursement Agreements provide cost reimbursement to the County over a 25 year period.
Body
DISCUSSION / BACKGROUND
On March 19, 2019, the Board conducted a public hearing to approve Power Purchase Agreement (PPA) RES-BCT No. 3853 and Power Purchase Agreement NEM No. 3931. Both agreements were established for a 25 year term; projected to provide a significant cost savings to the County over this time.
The initial reimbursement related rates within the PPA RES-BCT were projections based upon assumptions at that time. Now that the system is finalized, the variables impacting the reimbursement rates are now resolved. The final rates are anticipated to provide the County an increase in savings over what was originally projected. Amendment I to the PPA RES-BCT incorporates these favorable rates.
Both PPAs required clarity in how an update is performed in Section 22.B, Notices. This language has been amended to specify the submittal of a Payee Data Form.
The Division recommends the Board approve and authorize the Chair to sign both of these amendments.
ALTERNATIVES
The amendments are necessary to reflect the updated rates and clarify the mechanism to initiate a notice-to-parties in Section 22.B.
PRIOR BOARD ACTION
March 19, 2019; Legistar No. 19-0404; Item No. 31: Board execution of Solar Power Purchase Agreement RES-BCT No. 3853 and Solar Power Purchase Agreement NEM No. 3931.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION / COMMENTS
Approve as recoomended.
FINANCIAL IMPACT
Components of the Power Purchase Agreements and related Cost Reimbursement Agreements provide cost reimbursement to the County over a 25 year period. The changes to the PPA agreement are estimated to save the County approximately an additional $300,000 over the course of the PPA.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Return two originals of each to the Division for further processing.
STRATEGIC PLAN COMPONENT
Infrastructure
CONTACT
Russ Fackrell
Facilities Division Manager