HomeMy WebLinkAboutRESO 9290Resolution No. 9290
Resolution of the Council of the City of Palo Alto Approving the Sale
of System Resource Adequacy Electricity Capacity to NextEra Energy Power
Marketing, LLC, for Calendar Year 2013
A. The California Public Utilities Commission ("CPUC") adopted a Resource
Adequacy (liRA") program to ensure the reliability of electric service in California by requiring all
Load Serving Entities ("LSEs") to file a resource adequacy plan with the California Independent
System Operator ("CAISO"), demonstrating sufficient system resource adequacy electricity
capacity resources ("System Capacity"), including reserves needed to serve its aggregate system
load on a monthly basis.
B. The City of Palo Alto ("City"), as an LSE, jointly built and owns with other
Northern California Power Agency (liN CPA") members the Calaveras Hydroelectric Project
("Calaveras") located in Calaveras County, California. Calaveras is a 250 MW power plant of
which the City's ownership share is 57 MW. Calaveras is capable of producing electricity,
ancillary service products and system RA Capacity.
C. The City has sufficient system RA Capacity to meet its current load obligations on
an annual and monthly basis and in all months has excess system RA Capacity which may be
attributed to Calaveras.
D. NextEra Energy Power Marketing, LLC ("NextEra") desires to enter into a
contract to purchase from the City a portion of the City's excess System Capacity associated
with Calaveras in quantities ranging from 10MW to 56 MW for the months of May through
September 2013 at a price of $2 per kilowatt-month ("Agreement").
E. The City and NextEra are both members of Western State Power Pool (WSPP)
and therefore may use the WSPP agreement to engage in electric wholesale commodity
transactions. Under Palo Alto Municipal Code, Section 2.30.340, the City may use the WSPP
agreement to negotiate energy and capacity transactions.
G. NextEra currently does not have an energy master purchase and sale agreement
with the City, therefore, the City Manager is not authorized by the Municipal Code to enter into
transactions in excess of $250,000 per year.
NOW, THEREFORE, the Council of the City of Palo Alto does hereby resolve, as follows:
SECTION 1. The Council hereby authorizes the City Manager, or his designee, to execute
an agreement under the WSSP contract form or substantially similar form between the City and
NextEra for the sale of System Capacity associated with Calaveras to NextEra in exchange for a
total payment to the City of three-hundred, Sixty-four thousand dollars ($364,000.00).
II
II
1