HomeMy WebLinkAboutRESO 9161Resolution No. 9161
Resolution of the Council of the City of Palo Alto Approving
Agreement Terminating the Third Phase Agreement for
Western GeoPower, Inc. Renewable Energy Power
Purchase Agreement
WHEREAS, the City of Palo Alto (the "City"), a municipal utility and a chartered
city and a member of the Northern California Power Agency ("NCP A"), and other NCP A
members entered into (a) a Power Purchase Agreement (the "PPA") with Western GeoPower,
Inc. (''WGI''), for a term of twenty (20) years and at a price of $98.00 per megawatt-hour
("$98/MWh") and (b) a Third Phase Agreement for the Western GeoPower, Inc. Geysers
Geothermal Project Renewable Energy Power Purchase Agreement (the ''TP A"), under which all
costs and benefits of the PPA are allocated to participating NCPA members; and
WHEREAS, WGI has subsequently been acquired by Ram Power Corp. ("Ram")
and WGI is now a wholly owned subsidiary of Ram; and
WHEREAS, the geothermal power project contemplated by the PPA and the TPA
was not built due to the financial crisis of 2009's impact on WGI's ability to finance the project
at the cash flow provided by the $981MWh PP A; and
WHEREAS, NCP A required the consent of participating members, including the City,
in order to terminate the PP A and the TP A and finance the geothermal project at the higher rate of
$1131MWh for interested participating NCP A members;
WHEREAS, the NCPA commission, on February 24,2011, approved the termination
of the TP A as a condition precedent to the execution of a new power purchase agreement and a
new third phase agreement; and
WHEREAS, on March 24,2011, the NCPA commission approved (a) the Renewable
Energy Power Purchase Agreement between NCPA and WGI (the ''New PPA") for a term of
twenty-five (25) years and a $1131MWh price and (b) the Third Phase Agreement for the WGI
Geysers Geothermal Project Renewable Energy Power Purchase Agreement (the ''New TP A"),
under which all costs and benefits of the New PP A will be allocated to participating NCP A
members; and"'
NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE
as follows:
SECTION 1. The Council hereby approves the agreement which terminates the
Third Phase Agreement for Western GeoPower, Inc. Renewable Energy Power Purchase
Agreement and delegates to the City Manager the authority to sign the contract on behalf of the
City.
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