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HomeMy WebLinkAboutRESO 8472RESOLUTION NO. 8472 RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO APPROVING THE LONG-TERM POWER PURCHASE AGREEMENT (WIND POWER) WITH PPM ENERGY, INC. FOR THE PURCHASE OF ELECTRICITY GENERATED BY A WIND ELECTRIC GENERATING FACILITY WHEREAS, the City of Palo Alto ("City"), a municipal utility and a chartered city, is a member of the Northern California Power Agency ("NCPA"); WHEREAS, on October 21, 2002, the City approved seven electric portfolio planning and management guidelines to guide the development and management of the City's long-term electricity acquisition plan; one of the guidelines is to pursue target levels of new renewable energy purchases equal to ten percent and twenty percent of the City's expected energy load by 2008 and 2015, respectively; WHEREAS, the City is interested in purchasing power generation from renewable resources for the benefit of its electric customers; WHEREAS, by purchasing these sources of renewable energy, the City will help reduce the production of greenhouse gases and assist in reducing volatile organic compound emissions; WHEREAS, PPM Energy, Inc. was selected through a competitive solicitation process, to provide renewable power generated by the "High Winds" wind electric generating facility owned and operated by FPL Energy, L.L.C., a subsidiary of the FPL Group, Inc.; NOW, THEREFORE, the Council of the'City of Palo Alto hereby RESOLVE as follows: SECTION 1. The Council hereby approves the City's execution of the Long -Term Power Purchase Agreement (Wind Power) made between PPM Energy, Inc., as Seller, and the City of Palo Alto, as Purchaser. The term of the contract shall be 23 years and 7 months, commencing as of December 1, 2004. The delivery of electricity will begin January 1, 2005 and continue through June 30, 2028. Quantity shall consist of a 20 MW share of the 162 MW rated capacity (12.35%) of the High Winds wind electric generating facility. Spending authority under the contract shall be seventy-eight million, four hundred thousand dollars ($78,400,000). The City Manager or his designee is hereby authorized to sign the contract with PPM Energy, Inc. on behalf of the City. nd11 99 ,1 nn77ddl SECTION 2. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act and no environmental assessment is required. INTRODUCED AND PASSED: November 8, 2004 AYES: BEECHAM, BURCH, CORDELL, FREEMAN, KISHIMOTO, KLEINBERG, MORTON, MOSSAR, OJAKIAN NOES: ABSENT: ABSTENTIONS: ATTEST City Clerk APPROVE AS O FORM: Senior Asst. City Attorney Mayor APPR City Director of dmini trative Servi.es Dir lities nnllofl..1nm'lAAl