HomeMy WebLinkAboutRESO 9289Resolution No. 9289
Resolution of the Council of the City of Palo Alto Approving the Sale
of Local Resource Adequacy Electricity Capacity Products to NextEra Energy
Resources, LLC, for Calendar Years 2013 and 2014
A. The California Public Utilities Commission ("CPUC") adopted a Resource
Adequacy ("RAil) program to ensure the reliability of electric service in California by requiring all
Load Serving Entities (IfLSEs") to file a resource adequacy plan with the CPUC, demonstrating
sufficient capacity resources ("RA Capacity"), including reserves needed to serve its aggregate
system load on a monthly basis.
B. High Winds, LLC, an affiliate of NextEra Energy Resources, lLC, a Delaware
limited liability company ("NextEra"), operates the 162 MW wind generation facility located in
Birds Landing, Solano County, CA (If High Winds Generation Facility" or "HW"), which meets the
CPUC's requirements as a source of RA Capacity.
C. The City holds a 20 MW portion of output from HW, including but not limited to
the RA Capacity from HW for 2013 and 2014, pursuant to the "Long-Term Power Purchase
Agreement (Wind Power) made between PPM Energy, Inc., as Seller and The City of Palo Alto, ..
as Purchaser dated November 9, 2004" ("PPA").
D. NextEra desires to obtain this HW RA Capacity from the City for the months of
January through April and September through December of both 2013 and 2014 (the "Transfer
Period").
E. The Parties intend that the actions contemplated by this Agreement shall not
have an adverse impact on the High Winds Generation Facility in calendar year 2013 and 2014
or thereafter. NextEraand the City further acknowledge that the amount of RA Capacity as
determined by the CAISO for HW for calendar years 2013 and 2014 will be variable and
determined by future events unrelated to this Agreement.
F. Iberdrola Renewables, Inc. ("Iberdrola") is the successor in interest to PPM
Energy, Inc. in regard to the PPA.
NOW, THEREFORE, the Council of the City of Palo Alto does hereby resolve, as follows:
SECTION 1. The Council hereby-approves and ratifies the agreement between the City
and NextEra transferring the City's HW RA Capacity to NextEra for the Transfer Period in
exchange for a total payment of two hundred forty-five thousand dollars ($245,000.00).
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