HomeMy WebLinkAboutRESO 9276Resolution No. 9276
Resolution of the Council of the City of Palo Alto Approving the Purchase
of Local Resource Adequacy Electricity Capacity Products from Suppliers
Meeting the City's Creditworthiness Requirements for Wholesale Utility
Commodity Contracts in an Amount Not to Exceed $2,000,000 for Calendar
Year 2013
A. The City of Palo Alto (the IfCity") receives electric transmission services under the
terms of the 2002 Metered Sub-System (IfMSS") Agreement between the Northern California
Power Agency (IfNCPA") and the California Independent System Operator (IfCAISO").
B. The MSS Agreement requires the City and other NCPA members to abide by the
applicable CAISO Tariff (the "Tariff") that may be updated and subsequently approved by the
Federal Energy Regulatory Commission ("FERC") from time to time.
C. The Tariff includes the obligation of the City to purchase Local Resource
Adequacy ("LRA") electricity capacity products.
D. To comply with its obligation to procure LRA capacity under the Tariff the City
has established the Electric Utility Resource Adequacy Program (Resolution No. 8870).
E. The City obtains some LRA electricity capacity from its existing resources, but
needs to purchase additional LRA electricity capacity products in order to satisfy its
procurement obligation under the Tariff.
F. To competitively procure LRA electricity capacity products, the City has
developed and adopted the contracting mechanism to transact with several private sector
suppliers and with NCPA members, but it expects to need the contracting authority to transact
with additional suppliers in order to satisfy its LRA capacity procurement obligation under the
Tariff.
NOW, THEREFORE, the Council of the City of Palo Alto does hereby resolve, as follows:
SECTION 1. The Council hereby approves the negotiation of, and authorizes the City
Manager or his designee, the Director of Utilities, on behalf of the City to sign contracts relating
to, one or more local resource adequacy electricity capacity product transactions with suppliers
who meet the City's creditworthiness requirements for wholesale utility commodity contracts
established by Palo Alto Municipal Code Section 2.30.340. These transactions shall meet the
City's LRA obligation for calendar year 2013 and their total cost shall not exceed two million
dollars ($2,000,000).
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